1. Day ahead market coupling on German – Danish interconnectors Mr Finn Dehlbæk DERA, Denmark The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007

2. 2 Day ahead market coupling on German – Danish interconnectors Goal and process  Day ahead market coupling by 4th quarter 2007  Coupling between European Energy Power Exchange (EEX) and NordPool Spot (NPS)  Joint auction office in Hamburg European Market Coupling Company (EMCC)  Process based on Memorandum of Understanding between 2 power exchanges and 3 TSOs and explicitly integrated with North Electricity REM

3. 3 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007 Day ahead market coupling on German – Danish interconnectors What will day-ahead market coupling on DE-DK achieve?  Improved trading not only between 2 countries (Germany and Denmark) but between the Nordic countries and continental Europe  Increasingly efficient market – irrespective of whoever the success might be attributed to

4. 4 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007 Day ahead market coupling on German – Danish interconnectors Some Keys to Progress in North REM  Focus on practical implementation  Be specific as possible  Focus on limited number of parallel tasks  (3 Implementation Groups = 3 first priorities)  DE-DK interconnector is one of 3 priorities  Optimising use of interconnectors (DE-DK)  Optimizing the use of interconnectors – “merchant lines = Baltic Cable and Swepol”  Transparency

5. 5 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007 Day ahead market coupling on German – Danish interconnectors What is needed for continued progress in North REM?  Build on achievements to date  Political support and stakeholder involvement is essential  Regulators can inspire, be catalysts, facilitate co-ordination by stakeholders  Success depends on continued commitment and participation of TSOs, Power Exchanges and other “Enablers of Change”  European Commission must develop pan-EU legislation  Member States must implement legislation  Market actors must actively engage in removing barriers  Balance the desire for quick progress with workload:  Focus on few topics at a time

6. 6 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007 Day ahead market coupling on German – Danish interconnectors More information on the North Electricity Regional Energy Market (REM) is available at www.ergeg.orgwww.ergeg.org Become an “Online Subscriber” to automatically receive news from the region(s) Thank You