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etailed action plan (2007-2009) lectricity Regional Initiative. outh West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid, 20th July 2007

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Page 1: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market

1st Implementation Group MeetingMadrid, 20th July 2007

Page 2: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

2 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Summary

1. Meetings

2. Priorities

3. Actions

Page 3: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

3 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Meetings held within the South-West Electricity REM:Taking benefits from MIBEL and bringing forward the 2005 common position by CNE-CRE on capacity allocation mechanisms at the Spanish-French Interconnection

RCC. REGIONAL COORDINATION COMMITTEE MEETINGS 1st SW RCC Paris, 18 September 2006 2nd SW RCC (Joint) Paris, 30 May 2007 1st Technical SW RCC Madrid, 7 June 2007

IG. IMPLEMENTATION GROUP MEETINGS 1st South IG Madrid, 20 July 2007

SG. STAKEHOLDER GROUP MEETINGS No meetings so far although a first meeting will take place in late

September 2007

The South-West Electricity REM.The South-West Electricity REM.

1.1. MeetingsMeetings

Page 4: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

4 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priorities identified within the SW Electricity REM:

Phase I Interconnections and available transmission capacity. Transparency requirements. Evolution of the mechanism for congestion management. Compatibility of the rules of the market.

Phase II Balancing mechanisms. Security of supply.

The South-West Electricity REM.The South-West Electricity REM.

2.2. PrioritiesPriorities

Page 5: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

5 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

First Action Plan agreed in May 2007 by the RCC.

Recently, the RCC at technical level has produced a detailed action plan for 2007-2009.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 6: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

6 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority I. Interconnections and available transmission capacity Deliverable I.1. Analysis of the current status of the

interconnection infrastructures. TSOs will be requested to provide, as a first step, a description of

the current situation in terms of cross-border infrastructures.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 7: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

7 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority I. Interconnections and available transmission capacity

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE I.1: Analysis of the current status of the interconnection infrastructures

ACTION RESPONSIBLE DEADLINE

First presentation on the current status of interconnection infrastructures in the region

By TSOs to the IG September 2007

Public consultation through the SG November 2007

Conclusions from the public consultation by the IG January 2007

Publication of conclusions IG February 2007

Page 8: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

8 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority I. Interconnections and available transmission capacity Deliverable I.2. Analysis of the future interconnection

infrastructures needs (until 2015). TSOs will be requested to analyse the interconnection needs until

2015, as a first step, which will be followed by a consultation through the SG.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 9: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

9 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority I. Interconnections and available transmission capacity

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE I.2: Analysis of the future interconnection infrastructures needs.

ACTION RESPONSIBLE DEADLINE

First presentation on the future interconnection infrastructures needs (until 2015)

By TSOs to the IG November 2007

Public consultation through the SG December 2007

Conclusions from the public consultation by IG January 2008

Publication of conclusions IG February 2008

Page 10: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

10 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority I. Interconnections and available transmission capacity Deliverable I.3. Agreement on further actions to make

possible new infrastructure projects, further actions to manage possible congestions.

TSOs will be requested to provide, as a first step, description of the existing plans and proposals for developing new cross-border capacities, as well as a description of administrative, technical or other barriers and difficulties

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 11: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

11 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority I. Interconnections and available transmission capacity

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE I.3: Agreement on further actions to make possible new infrastructure projects, further actions to manage possible congestions, taking into account the functions and powers of each regulator.

ACTION RESPONSIBLE DEADLINE

First proposed actions to bring forward new interconnection projects

TSOs January 2008

Agreed actions IG January 2008

Public consultation through the SG February 2008

Conclusions from the public consultation IG May 2008

Publication of final proposed actions to bring forward new interconnection projects

IG June 2008

Page 12: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

12 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority II. Analysis of convergence in transparency and information management Deliverable II.1. In-depth comparative analysis of the state-

of-the-art as regards information management and wholesale market data handling across States in the region.

This part is devoted to reach a higher degree of coordination in data exchange across the region, paving the way to the desired internal market paradigm via a more levelled playing field in terms of improved information requirements. This request for increased transparency appeals every market participant.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 13: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

13 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority II. Analysis of convergence in transparency and information management

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE II.1: An in-depth comparative analysis of the state-of-the-art as regards information management and wholesale market data handling across Member States in the region.

ACTION RESPONSIBLE DEADLINE

Questionnaire issued to TSOs and PXs

RCC September 2007

Responses to the questionnaire TSOs & PXs November 2007

First Paper on main findings from replies to the questionnaire

RCC December 2007

Public consultation through the SG February 2008

Page 14: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

14 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority II. Analysis of convergence in transparency and information management Deliverable II.2. Consistent regulatory proposal, having

ERGEG’s GGP as reference and benchmark, on how to reach a stable, satisfactory -as well as feasible- degree of transparency.

The RCC will closely monitor the implementation of the new transparency requirements resulting from the Guidelines for Congestion Management. However, the prime action to implement the transparency requirements will remain on each of the TSOs and will be supervised by its national Regulatory Authority

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 15: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

15 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority II. Analysis of convergence in transparency and information management

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE II.2: A consistent regulatory proposal, having ERGEG’s GGP as reference and benchmark, on how, to what extent and incurring in which costs is possible to reach a stable, satisfactory -as well as feasible- degree of transparency.

ACTION RESPONSIBLE DEADLINE

Conclusions from the public consultation under deliverable II.1

IG April 2008

Regulatory proposal RCC May 2008

Presentation to the SG RCC June 2008

Page 16: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

16 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods Deliverable III.1. Optimization and transparency of the

cross-border capacity calculation. The aim is to improve the coordination and transparency of TSOs

regarding the calculation of available capacity, towards the use of a common transmission model.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 17: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

17 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE III.1: Optimization and transparency of the cross-border capacity calculation

ACTION RESPONSIBLE DEADLINE

Paper on common proposals for optimizing and increasing the transparency of cross-border capacity calculation.

-Providing a general and common scheme for the calculation of the transfer capacity -Providing an historical of the redispatching costs, as well as their causalities, that each TSOs has supported in 2006-Explaining in which extent the activation of these redispatching costs is coordinated between TSOs-Proposing a clear structure for the allocation of capacity between different timeframes

TSOs September 2007

Public consultation Through the SG October 2007

Final paper on common proposals Agreed by the IG November 2008

Implementation of proposals By TSOs 1st January 2008

Page 18: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

18 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods Deliverable III.2. Improvements in the long and medium term

explicit auction mechanisms. The aim is to harmonize in coordination with other regions and

improve the nature and amount of long and medium term products, analysing work undergone in other ERIs. These expected improvements will be divided in two parts, according to the requested time for implementation. - “Quick win” improvements (to be implemented by 1st January 2008)- “Longer-term” improvements to be addressed by 1st January 2009

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 19: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

19 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE III.2.a: “Quick-win” Improvements in the long and medium term explicit auction mechanismsACTION RESPONSIBLE DEADLINE

Paper on common proposals for a coordinated and potentially harmonized and improved set of auction rules with other European borders, including, in particular, the following issues:-Improvement and transparency of the degree of firmness of capacity rights.-Improvement of compensation scheme in case of curtailment of capacity.-Implementation of a compensation scheme in case of cancellation of auction-Clarification of TSOs’ responsibilities for the management of cross-border access Implementation of a UIOSI mechanism

TSOs September 2007

Public consultation Through the SG October 2007Implementation of proposals By TSOs 1st January 2008

Page 20: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

20 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE III.2.b: “Longer-term” Improvements in the long and medium term explicit auction mechanisms

ACTION RESPONSIBLE DEADLINEPaper on common proposals for a coordinated and improved set of auction rules with other European borders, including in particular:

-Feasibility study of creating balancing perimeters in the Spanish system-Feasibility study for a single auction platform in coordination with other regions

TSOs November 2007

Public consultation Through the SG December 2007Final paper on common proposals Agreed by the IG January 2008Implementation of proposals By TSOs 1st January 2009Monitoring exercise on the implementation RCC Starting in January 2009Monitoring report on the implementation IG July 2009Public consultation Through the SG September 2009Publication of the Monitoring report RCC 1st October 2009

Page 21: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

21 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods Deliverable III.3. Implementation of a day-ahead market

coupling mechanism between the Iberian and the Central-West markets.

The RCC fully supports the implementation, as soon as possible, of market coupling mechanisms between France and the Iberian market, taking into account ongoing developments in the Central-West region. As a first step, regulators ask TSOs and market operators to analyze impact of one single PXs gate closure time.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 22: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

22 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE III.3: Implementation of a day-ahead market coupling mechanism between the Iberian and the Central-West region

ACTION RESPONSIBLE DEADLINE

Analysis of one single PXs gate closure time from PXs and TSOs

TSOs & PXs 1st April 2008

Agreement on one single gate closure IG May 2008

Public presentation and consultation Through the SG June 2008

Conclusions from the public consultation Agreed by the IG October 2008

Implementation TSOs 1st January 2009

Page 23: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

23 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods Deliverable III.4. Improvement of cross-border intraday

capacity allocation. On the French-Spanish border, TSOs have put in place two

coordinated intraday explicit auctions (one in D-1 and one in D). The RCC requests TSOs to assess the current explicit auction method and the possible improvements.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 24: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

24 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE III.4: Improvement of cross-border intraday capacity allocation

ACTION RESPONSIBLE DEADLINE

Assessment of current method and possible improvement of the current method

TSOs & PXs 1st April 2008

Public consultation Through the SG October 2008

Agreement on improvements IG November 2008

Drafting of a detailed proposal for the implementation of a continuous trading platform

TSOs 1st January 2009

Page 25: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

25 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods Deliverable III.5. Cross-border access to balancing markets. The past experience shows that a new mechanism should be

developed to allow effective cross-border trade of balancing energy.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 26: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

26 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority III. Improvement of cross-border congestion management methods

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE III.5: Cross-border or Reciprocal access to balancing markets

ACTION RESPONSIBLE DEADLINE

Detailed analysis of current barriers to cross-border access to balancing markets (national legislations, national time-frames, etc) and choice of the models to be implemented (TSO-TSO vs actor-TSO model as described by ERGEG and ETSO)

TSOs 1st April 2008

Action plan IG October 2008

Public consultation on the action plan Through the SG November 2008

Conclusions from the public consultation and required regulatory proposals (if needed)

RCC 1st January 2009

Implementation of solutions IG According to the agreed action plan

Page 27: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

27 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

IV. Additional task: Analysis of the administrative procedures for the changing of the legislation in force in each country. Deliverable IV.1. Analysis of the administrative procedures

for the changing of the legislation in force in each country. The aim is to identify differences among regulators’ powers and

duties as well as difficulties that may exist in the integration of the South-West Electricity REM and, if necessary, to promote regulatory changes and coordination regarding administrative procedures.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 28: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

28 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

IV. Additional task: Analysis of the administrative procedures for the changing of the legislation in force in each country.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

DELIVERABLE IV.1: Paper on analysis of the administrative procedures for the changing of the legislation in force in each country.

ACTION RESPONSIBLE DEADLINE

First draft paper RCC June 2007

Presentation to the IG IG July 2007

Public consultation on potential regulatory gap

Through the SG September 2007

Conclusions from the public consultation RCC November 2007

Publication of conclusions By the RCC to the SG December 2007

Page 29: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

29 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

Priority V. Analysis of the compatibility of the rules of the MIBEL and French markets. Deliverable V.1. Analysis of the compatibility of the rules of

the MIBEL and French markets. Since the main goal of the South-West region will be the effective

integration of both MIBEL and France towards a European electricity market, regulators agreed on ensuring compatibility between the MIBEL and the French electricity market rules.

The South-West Electricity REM.The South-West Electricity REM.

3.3. ActionsActions

Page 30: Detailed action plan (2007-2009) Electricity Regional Initiative. South West Electricity Regional Energy Market 1st Implementation Group Meeting Madrid,

30 ERI – SW Electricity REM1st Implentation Group Meeting. Madrid, 20th July 2007

The South-West Electricity REM.The South-West Electricity REM.

Priority V. Analysis of the compatibility of the rules of the MIBEL and French markets.

3.3. ActionsActions

DELIVERABLE V.1: Assessment report on the compatibility of market rules between MIBEL and the French electricity market.

ACTION RESPONSIBLE DEADLINE

Draft discussion paper RCC June 2008

First discussion IG July 2008

Public consultation Through the SG September 2008

Conclusions paper from the public consultation: detailed analysis of points of conflicts and proposed regulatory changes

RCC November 2008

Final Agreement IG November 2008

Final proposal of regulatory changes RCC December 2008