1. SEM – One Year On Liam Ryan, Market Operations Manager

2. Agenda  Overview of Market  Registration  SEM Prices  Summary

3. Participants in the SEM  46 Participants have registered in SEM (8 since November 07)  32 Participants have registered Generator Units ( 7 since November 07)  10 Participants have registered Interconnector Units  Registered Capacity in the Market: 9856 MW

4. Bids into the Pool 1 2 3 4 5 6 Generation Suppliers & Demand (MW) D Market Schedule and Price Market Schedule Quantity (MSQ)

5. 5 1 23 4 1 23 4 Price €/MWh Quantity (MW) Scheduled Not scheduled D S 6 Economic Dispatch & SMP  System Marginal Price (SMP)

6. 6 SEM Market Timelines Time Registration TD-20 10:00 TD-1 Gate Closure TD-29 Submission of Offers 12:00 TD-1 Ex-Ante Indicative MSP (Indicative MSQs & SMP) TD=0 Trading Day Dispatch & Operations Scheduling (TSOs) (DQs) 16:00 TD+1 Ex-Post Indicative MSP (MSQs & SMP) Settlements (TD+1WD) 17:00 TD+4 Ex-Post Initial MSP (MSQs & SMP) MIUN Established

7. SEM Market Systems Market Interface Physical Market Market Settlement Participants System Operators Banks Interconnector Administrators Meter Data Providers

8. Settlement - Interconnector  Nature of IC means special rules in T&SC for settlement of Interconnector Units  Dispatch Quantities Interconnector Unit: DQ = MIUN IRCU: DQ = SO Trade Import + Export Quantities IC Error Unit: DQ = 0  Metered Generation For each Interconnector Unit based on DQ (=MIUN) Interconnector Error Unit: IC Metered Generation – Sum IC Unit Metered Generations  Settlement Interconnector Units & IC Error Unit charges/payments for Energy and Capacity Interconnector Error Unit: Imbalance charges/payments IRCU Constraint charges/payments

9.  The registration processes consist of two major steps: Step 1: Party registration for accession to the market register as a Party to the Trading and Settlement Code Step 2: Unit registration to participate in the market a Party becomes a Participant by registering Unit(s)  Up to 60 working days receipt of accepted complete application  Concurrent Party and Unit application is possible Registration Overview Party Unit

10.  Interconnector Owner (IO) Registers Interconnector Specify IA, IRCU and IEU (IO could be IA as well)  Interconnector Administrator (IA)  System Operator (SO) Register Interconnector Residual Capacity Unit (IRCU) (as a Unit)  Interconnector Users (IU) Interconnector Registration Important !! 2.78 Before import or export must have registered: Interconnector Interconnector Administrator Interconnector Error Unit Party Unit

11.  Registration of Interconnector units involves :  Participation Notice Unit Details 2.33 Evidence of: connection agreements, UOS agreements, Licence to generate/supply, nominated IA etc 2.71  Communication Channel Qualification Testing  Providing Credit Cover  Commencement Notice issued when effective date agree with all parties.  From that date onwards the unit registered can trade in the market. Unit Registration

12. Financial Review – 11 months -Total Billed €3.3bn 82% energy, 14% capacity, 2% imperfections -Market fully Collaterised

13. Average SMP Price

14. Volume Weighted SMP

15. Capacity Payment

16. Summary  Registration process - up to 60 working days  10 Participants have registered Interconnector Units  Nature of IC means special rules in T&SC for settlement of IC Units  Total Billed €3.3bn (82% energy, 14% capacity, 2% imperfections)  Daily Average SMP Varies between €47.3 - €147.5  Monthly Average SMP Varies between € 61.2 to € 96.3