1. European Commission views on intra-day and balancing markets
European Commission views on intra-day and balancing markets
Ramunas Linartas Electricity and gas unit
EUROPEAN COMMISSION

2. Structure of the presentation
What is already required by European legislation?
Recent work on balancing market integration
How will the 3rd legislative package influence balancing markets

3. What is already required by European legislation?
Regulation 1228/2003/EC
Congestion management guidelines (Decision 2006/770/EC)
“By not later than 1 January 2008, mechanisms for the intra-day congestion management of interconnector capacity shall be established in a coordinated way and under secure operational conditions, in order to maximise opportunities for trade and to provide for cross-border balancing.”
“The TSO shall also publish the relevant information necessary for the cross-border balancing market.”

4. Regional market approach
Regional market approach
Nordic
UK/IE
IPS/UPS
Baltic
CEE
CWE
SEE
SWE
CSE

5. Regional markets: results of the regional forums
+++
Market coupling is spreading
Capacity allocation is moving to flow based methods
Stakeholder involvement
- - -
Progress slower than wanted
Unanimous approach showing its limits
Old unsolved problems block the progress
No full power exchange coverage yet

6. Study on balancing and intra-day markets
One should go ahead and not wait for a perfect European plan
Intra-day: Yes!
Balancing (TSOs buying services)
Don’t mess with security services
Slower services subject to economic optimisation
Harmonisation of payment of services can follow
Harmonisation of settlement can follow
Interference between balancing, intra-day and day-ahead markets

7. 3rd package: main measures
Effective unbundling of networks
EU Regulatory Agency
Cooperation of network operators (ENTSO)
Stronger powers for national regulators
Transparency
Retail market & consumer protection
Third country clause
Level playing field

8. Third Package : implementation
Agreement: Council 27.3., European Parliament ITRE Committee vote, Second reading in April 2009, adoption by Council in July/September 2009
ENTSO setup by summer 2009
Agency operational in 2011
Starting to prepare codes and guidelines in practise
Make best use of transition period
Stakeholder involvement

9. Network codes
network security and reliability rules including rules for technical transmission reserve capacity for operational network security;
grid connection rules;
third party access rules;
data exchange and settlement rules;
interoperability rules;
operational procedures in an emergency;
capacity allocation and congestion management rules;
rules for trading related to technical and operational provision of network access services and system balancing;
transparency rules;
balancing rules including network related reserve power rules;
rules regarding harmonised transmission tariff structures including locational signals and inter-TSO compensation rules;
energy efficiency regarding electricity networks

10. Conclusions
There is a need to move ahead in European intra-day and balancing markets
Bilateral, regional and European approaches exist
Recipes are there but progress remains slow
Third package will provide for new tools:
Structural: Agency and ENTSO
Legal: Process to make European codes

11. Thank you for your attention
The end
Thank you for your attention