1. Coordinated Market Coupling for GB

2. 2
Virtual Hub
Service Provision specified to create a GB Hub with open access to :
All GB connected ICs to coordinate XB Capacity
All Regional PXs
Extendible to new Interconnectors / PXs 2

3. Procurement Update:
NGIL initiated the procurement, and will seek to ensure that the service is able to encompass all existing and future GB interconnectors.
Contract Notice issued July 2011
Tenderer’s shortlisted
RfP to be issued early October
Tender selection November

4. Virtual Hub Pre-Coupling: Post-Coupling Energy Transactions on PXs4
Virtual Hub
Pre-Coupling:
Coordinate capacity information for submission into EU Coupling solution
Post-Coupling
Energy Transactions on PXs
Cross Border Nominations to TSOs 4

5. Shipping: Energy Trades
The output of the coupling algorithm is ‘net position’ of each price area, which equates to required energy transactions on each PX hub.
Example: flow from GB to France, Net position of GB is a PX Buy, and a France PX Sell.
Flow GB FR
NPS
Buys
Sells
NPB
Sells
Buys
Shipper buys energy in GB, and then sells the energy in France

6. Shipping: Physical Transfers
To Balance PX traded position, nominations required to TSOs in order to be balanced in each country. GB FR
PX Buy = GB Export
FR Import = PX Sell
NPB
NPS
Interconnector nominations to balance shipper position in each country

7. Intra-GB Shipping: Energy Trades
The GB ‘net position’ is a combination of the ‘net position’ of each GB PX, therefore a ‘shipper’ is needed to undertake the energy transactions between the two GB PXs.
Buys
NP1
PX1
Sells
NPGB GB FR
Sells
NP2
PX2
NP2
NPGB
Buys
NP1

8. How the Virtual Hub fits in with the NWE ProjectEE NO SE NL
GB1 DK PO GB VH IE BE DE
GB2 AT FR
Infinite Capacity

9. NWE Update PX / TSO joint project initiated.
CASC appointed by TSOs to undertake key project roles
PCR including TSO requirements is the basis for coordinated matching.
Re-use of existing systems / agreements where possible.
Budgets being prepared.
TSOs agree to cover costs of design phase.
Cost recovery on future phases to be further discussed.

10. Thank you 10