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CEER Workshop

Gas Target Model

View of local energy companies

Joost Gottmer

CEDECCEER | 3rd December 2010 | Vienna

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Agenda

• One system, different solutions• Market roles must match• Role of local energy companies• Feed in of green gas• Conclusions

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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

TSODSO

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

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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

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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

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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)

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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