1. Trade nuances of electricity market in Lithuania 1 Jurmala 1 st of October 2010 Erikas Miliukas Head of Electricity Import-Export Division

2. Balance districts AB “Lietuvos energija” balance districts: – Kruonis PSP (plan vs fact = imbalance) – Kaunas Hydroelectric Power Plant (plan vs fact = imbalance) – Import – export (plan vs fact = imbalance) – Production and consumption (plan vs fact = imbalance) 2

3. Import – export possibilities 3

4. Trade scheme in Lithuania 4 4 Nordpool (Spot) Market operator ProducersBalance providers ImportersExporters Turnover fee Trade platform Exchange

5. Trade scheme for Lithuania in Estlink price area 55 5 Nordpool (Spot) Market operator Producers; Independent suppliers; Balance providers ImportersExporters Turnover fee Trade platform Exchange Example: Producer acts as an exporter and willing to sell electricity into Estlink price area: It places bids into LT exchange (showing the export from LT) and at the same time it places bids with the same quantity into Estlink price area. The time of placing bids in Baltpool and Estlink is the same as it is also the same of getting results from both exchanges. If all quantity has been sold in Estlink price area there is no problem. If all quantity has not been sold in Estlink (only part of it) LT producers gets imbalance for difference between export shown in Baltpool and sold quantity in Estlink.

6. 6 Estlink price area ImportersExporters Market operator Turnover fee Trade platform Producers; Independent suppliers; Balance providers Explicit auction Explicit auction influence to Lithuanian traders Congestion management (explicit auction) between EE-LV cross border is another unpredictable matter for traders in LT If we have demand or supply in Estlink price area LT traders cannot fully participate and fulfill these needs because of explicit auction LT traders must cover risk of imbalance sanction not only from trading side but also from cross border capacities.

7. Bilateral trade in Lithuania Bilateral trade in Lithuania is divided into two graphics: – Base load 24 hours – Peak load 12 hours All deviations from that graphic must be sold via exchange (Baltpool) Bilateral trade graphics in Lithuania must be agreed between trader and Baltpool in D-2 principle 7 Trading scheme - base load DateHourCapacity Base load capacity Sells via exchange 2010.01.01 0-1145 0 1-2145 0 2-3145 0 3-4145 0 4-5145 0 5-6145 0 6-7190 14545 7-8240 14595 8-9270 145125 9-10280 145135 10-11280 145135 11-12280 145135 12-13280 145135 13-14230 14585 14-15170 14525 15-16145 0 16-17145 0 17-18145 0 18-19145 0 19-20145 0 20-21145 0 21-22145 0 22-23145 0 23-24145 0 Example: Trading scheme - peak load DateHourCapacity Base load capacity Peak load capacities Sells via exchange 2010.01.01 0-1145 00 1-2145 00 2-3145 00 3-4145 00 4-5145 00 5-6145 00 6-7190 017020 7-8240 017070 8-9270 0170100 9-10280 0170110 10-11280 0170110 11-12280 0170110 12-13280 0170110 13-14280 0170110 14-15280 0170110 15-16280 0170110 16-17230 017060 17-18170 0 0 18-19145 00 19-20145 00 20-21145 00 21-22145 00 22-23145 00 23-24145 00 Exchange (Baltpool)

8. Thanks for attention 8