1. Views from ACER and NRAs on “problems” in the NSI West region
25/10/2016
Brussels

2. Problems and aspects - electricity
Problem categories
Aspects to be assessed
when deciding a need
Price spreads
For the past and the present:
- Actual price spreads (both directions, representative of seasonal congestions)
For the assessment of future time horizons:
- The curves “SEW increase over cross-border capacity increase”
- In case such a curve is not available, expected “marginal cost difference (€/MWh), accounting for both directions and taking into account the size of the bidding zones and the current market conditions.
RES integration
- Curtailments (with effect not accounted for in the curves above)> x GWh
(taking into account the generation mix across boundaries)
Security of supply
- System adequacy
- System stability
(including local network problems)

3. Overview of NRAs input
In order to establish this presentation, views from NRAs were collected via an ACER questionnaire between 26 Sep and 18 Oct.
As far as the NSI West region is concerned, the following NRAs answered to the questionnaire: E-Control (AT), CREG (BE), BNetzA (DE), CNMC (ES), CRE (FR), AEEGSI (IT), REWS (MT), ACM (NL), Utility Regulator (UK-NI).
Problems reported by E-Control are presented in the NSI East Regional Group and those reported by the Utility Regulator of Northern Ireland are presented in the NSOG Regional Group.
25/10/2016
NSI West meeting, Brussels

4. Price Spreads: Northern Italian border
Historically, a significant price spread occurs at the Northern Italian border with the neighboring countries : France, Switzerland and Austria
FR-IT: 2014: 17,9 €/MWh ; 2015: 13,8 €/MWh
CH-IT: 2014: 14,4 €/MWh ; 2015: 12,0 €/MWh
AT-IT: 2014: 18,7 €/MWh ; 2015: 20,7 €/MWh
The price spreads arise from the differences in generation mixes between the north of Italy and the neighboring countries.
For the future, a more detailed analysis of the target capacity is necessary.
25/10/2016
NSI West meeting, Brussels

5. The size of the cross-border impact is still to be assessed.
RES integration: Congestion at the network boundary Center South Italy - Center North Italy
The congestion (about 2 Euro/MWh price spread in 2015) relates to RES overgeneration in Southern Italy and consequent RES spillage (about 50 GWh/year in the period from 2013 to 2015).
For the future, both the EU TYNDP 2016 and the Italian plan 2016 indicate an increase of congestion from Center South to Center North, with an expected frequency around 25% of time, i.e. about 2200 hours/year (2020 and 2025) during which "Southern" RES will not reach Northern Italy and neighboring markets.
The size of the cross-border impact is still to be assessed.
25/10/2016
NSI West meeting, Brussels

6. Security of Supply: Limited availability of resources for voltage regulation and short-circuit power in some areas of Italy, especially in Sardinia
The Italian Development Plan 2016 assesses system inertia and highlights local problems in specific areas of the Italian network. In 2015, significant frequency (i.e. > 30% of time) of undervoltage (i.e. below 390 kV) was recorded in Campania (north of Naples) and in Southern Sardinia.
As the cross border impact of SoS problems is not defined at this stage (and as quantification of such problems is not available in the draft TYNDP 2016), AEEGSI was not able to assess it.
25/10/2016
NSI West meeting, Brussels

7. Price spreads between Belgium and Germany
Historically, there is a significant price spread between Germany and Belgium
DE-BE: 2013 : 9,67 €/MWh; 2014: 8,03 €/MWh; 2015: 13,05 €/MWh
For the future, the North Sea 2015 Regional Investment Plan mentions a marginal cost difference of 5 to 15 €/MWh between Germany and Belgium in the TYNDP 2014 Vision 4 and a price difference below 5 €/MWh in the TYNDP 2016 Vision 3. (Values for other visions are not published.)
25/10/2016
NSI West meeting, Brussels

8. Belgium is for the recent years a net importer of electricity
SoS in Belgium
Belgium is for the recent years a net importer of electricity
Average net imports from FR and NL :
Full nuclear phase-out by 2025
High concerns already in the mid-term (from 2023)
“Étude de l’adéquation et estimation du besoin de flexibilité du système électrique belge – Période ” - Elia (only in French or Dutch)
25/10/2016
NSI West meeting, Brussels

9. Price spreads at the French-Spanish border
Historically, there was a significant price spread between France and Spain
FR-ES: 2014: 13,3 €/MWh ; 2015: 11,9 €/MWh
The price spread has been decreasing since the commissioning of a new interconnection at the end of 2015
FR-ES: H1 2016: 6,5 €/MWh
25/10/2016
NSI West meeting, Brussels

10. NSI West - Map of reported problemsIT FR PT DE NL BE IE UK DK LX