1. 1 CEER Workshop Gas Target Model View of local energy companies Joost Gottmer CEDEC CEER | 3rd December 2010 | Vienna

2. Vienna 3rd December - CEDEC2 Agenda One system, different solutions Market roles must match Role of local energy companies Feed in of green gas Conclusions

3. Vienna 3rd December - CEDEC3 One system with different solutions Grid design Both TSO network users and DSO network users can cause an imbalance of the transmission system Market design Wholesale design and retail design are linked Legal and regulatory design Both TSO and DSO’s are regulated, requirements between member states can differ Key-elements: good wholesale market with clear roles, automatically defines a good retail market; due to differences between MS the target model can not be based on a Greenfield approach, an contingency approach is more appropriate

4. Vienna 3rd December - CEDEC4 Market roles must match One European gas market: On the transmission system level: same market roles in each member state Matching merket roles on transmission system level and distribution system level: –Gas bought on the transmission system can be sold on the distribution system. –Gas used on the distribution system can cause an imbalance on the transmission system. DSO should have no commercial position on the gas market, DSO should not buy or sell gas: –Measuring inaccuracies, administration losses on the distribution system should be divided by commercial market parties

5. Vienna 3rd December - CEDEC5 Role of local energy companies Special role: “One size does not fit all” The role, tasks and responsibilities of local energy companies can differ in member states. This depends on differences in: –(local) grid design –Legal and regulatory requirements –Retail market model –Consumer protection: safety, vulnerable consumers, extreme climate conditions, etc. –Responsibilities / facilitation of bio gas feed in The target model of the balancing rules on transmission systems should take into account the different roles, tasks and responsibilities of the DSO’s in the different member states

6. Vienna 3rd December - CEDEC6 Feed in of green gas The target model should support the feed in of green gas on a distribution system level. Reverse flow between DSO and TSO. –Local storage? –Transmission system feed in? Clearly define tasks and responsibilities of each party (customer, shipper, supplier, DSO, TSO)

7. Vienna 3rd December - CEDEC7 Conclusions CEDEC supports one European gas market Goal: The roles and responsibilities must be clearly defined Added value: To differentiate between local, national en EU levels “One size does not fit all”: copy/paste solutions from one market to another does not work Key elements: good wholesale market with clear roles (customer, shipper, supplier, DSO, TSO), automatically defines a good retail market Target areas of the model, view from the local perspective: –the feed-in of biogas –local/regional balancing or storage could be required –reverse flow DSO-> TSO –local differences in market model