ENTSO-E and how we can use this new body in the future in terms of market, planning and operations

13 May 2009 CIM user group meeting, Genval, Belgium

Konstantin Staschus, Ph.D.ENTSO-E Secretary-General

www.entsoe.eu

Overview• Background: 3rd IEM package• Purpose, activities• Overall structure• Start-up• Committee structures

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ENTSO-E Background: 3rd IEM package

Proposed amended Regulation (EC) No 1228/2003 on conditions for access to the network for cross-border exchanges in electricity

Article 4: European network of transmission system operators for electricity

Completion and functioning of the internal market in electricity and cross-border trade

Optimal management, coordinated operation and sound technical evolution of the European electricity transmission network.

Article 6: Establishment of network codes

Article 8: Tasks of the ENTSO for Electricity

Network codes

Common network operation tools

Non‑binding Community‑wide 10‑year network development plan, ("network development plan"), including a European generation adequacy outlook, every two years

Work programme, annual report, summer/winter outlooks, monitoring

ENTSO-E founded ahead of 3rd package because completion of the IEM and renewables integration require quick action

Separation of transmission networks from production and supply • Yet stronger

unbundling rules in 3rd EU Directive

• Individual players' initiatives

Push for investments in interconnections• Capacity constraints

in existing infrastructure

• Security of energy supply within each country

Emergence of market coupling, e.g. trilateral and soon Central-Western Europe EEX-Powernext-Belpex

Vertical disintegration

Phase I

Interconnectionreinforcements

Creation of power exchanges

Integration of EU landscape

• EU grouped countries into 7 … + regional markets

• Extension of market coupling between countries

Europeanintegration

Phase II

In parallel: growing importance of renewables

• Drive towards sustainable energy...

... with increasingly volatile production profile

• Evolution towards pan-European backbone?

Sustainability

The TSOs’ need for stronger and faster evolution towards EU integration

~ 500 million citizen served

650 GW Generation230 000 km EHV-HV lines1 500 000 km MV/LV lines

Demand: 3 000 TWh/year

Exchanges: 300 TWh/year

Investments by 2030

for T&D: ~500G€

ENTSO-E: 42 TSOs from 34 countries

Purpose of the associationPursue cooperation of the European TSOs - pan-European and regional

Promote the TSOs’ interests

Active, important role in European rule setting process - EU legislation

Cooperation among TSOs, and also external communication on:Reliable operationOptimal managementSound technical evolutionSecurity of supplyMeeting the needs of the IEM / facilitating market integration

Develop and monitor network plans (Commission, ACER roles)

Develop and monitor network codes (Commission, ACER, comitology roles)

Promoting R&D and public acceptability of transmission infrastructure

Positions, consultation

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Activities

ENTSO-E start-up timetable

ENTSO-E established (1st Assembly)

Secretary-General appointed; first budget approved (2nd Assembly)

First meetings of the Committees

Secretariat Terms of Reference (TOR), corporate identity, new premises (move 1 Nov) decided, website

Regional Groups’ TOR prepared – prerequisite forwinding up 6 existing associations

3rd Assembly: Committees’ + Regional Groups’ TOR approved, UCTE MLA transfer signed, start recruitment for Secretariat positions

Transfer of contracts and obligations of existing associations

Winding-up of existing associations

ENTSO-E fully operational

19/12/08

5/02/09

03/09

04/09

04/09

08/05/09

06/09

30/06/09

01/07/09

ENTSO-E‘s start-up1 market – 5 synchronous regions

Transfer activities from 6 existing associations

Proud long histories, e.g. UC(P)TE since 1951,ETSO with very wellestablished influencein EU electricity market policy

Achievements, well established processes to continue without interruption (e.g. OperationHandbook) through systematic transfer of activities, contracts etc.

IE

ESPT

CH

IT

SI

AL

CZSK

NL

DK

LV

LT

BG

HR

ME

BA

LU

Assembly

Board Secretariat

System Development

Committee

System Operations Committee

• European Planning Standards• Network Modeling and Data• 10 Year Network Develop. Plan• Research and Development• S. Adequacy & Market Develop.• Asset Implem. & Management• EWIS Project

• North Sea• Baltic Sea• Continental CE• Continental CS• Continental SE• Continental SW

• Northern Europe• Isolated Systems

• Continental Europe• Nordic• Baltic• Great Britain• Ireland - N. IrelandMarket

Committee

• Market Integration• Ancillary Services• Market Information (incl. SG EDI)• Economic Framework• RES

Working Groups Regional Groups

Legal & Regulatory Group

VoluntaryRegional Groups

• European Operational Standards• Critical Systems Protection

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Structure of the System Development Committee

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Main tasks of the System Development Committee Coordinate, at the pan European level, the network development and planning activities undertaken by TSOs comprising :

Transmission system adequacyGeneration adequacyDemand forecasting Medium to Long TermMarket driven scenarios and related modelling and planning approachesWinter/summer Outlook and ReviewGeneral Investment & planning criteriaPlanning data, formats, models and tools

Will build on existing international plans, e.g. NORDEL, UCTE, but go beyond them with new methodologies

Prepare the Ten Year Network Development Plan (TYNDP)

Introduce technical rules or standards related to the planning of transmission systems and new technical concepts within its R&D activities

Promote public acceptability of transmission infrastructure

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Structure of the System Operations Committee

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Main tasks of the System Operations Committee

Promote reliable operation and security of the transmission electric systems in Europe

Develop, maintain and update technical and operational standards, recommendations and co-operation frameworks for regions and individual TSOs in ENTSO-E

Make proposals for pan-European harmonisation of the Network Codes and rules

Monitor, assess and, where appropriate, report on the quality-level of transmission system operation and important transmission network operation events on a regular basis

Maintain the timeliness and effectiveness of inter TSO normal and emergency operating procedures

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Structure of the Market Committee

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Main tasks of the Market Committee

The long-term objective is an integrated and seamless European electricity market

Harmonised market design and rules for the integration of physical and financial markets in all timeframes

Consistent and transparent congestion management principles and schemes for the allocation and use of transmission capacity

Regional cross-border harmonisation and integration of balancing mechanisms

Establishment of Inter-TSO compensation mechanism, and when applicable, adequate methodologies in sharing joint revenues/costs

Market-oriented integration of the renewable energy sources (RES) and decentralized generation

ENTSO-E Secretariat

Provides the manpower and Brussels presence to help achieve ENTSO-E’s purposes

Performs and supports external communications of ENTSO-E. Promotion of the interests of ENTSO-E towards the European Commission, European Parliament and the Council, the European bodies for Energy Regulators

Has a central function supporting handling of data related to statistics, publications, system adequacy, power flow data and ENTSO-E Vista (maintenance, plausibility and consistency checking)

Receives support from a Data Expert Group, which tackles pan-European standardization of data handling

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ENTSO-E Secretariat has a central function of coordination, maintenance and support of Common Information Model (CIM) related issues and

therefore, it is the interface to international organizations

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- Maintenance ENTSO-E CIM tools;- contacts with providers

Requests that concern CIM must be submitted to Secretariat

ENTSO-E Data Expert Group

System Development Committee

Operations Committee

Market Committee

WGs defining needs

International organizations: IEC, EPRI, CIMug, …

- Liaisons, - Submitting ENTSO-E needs, - - Participation in the discussion, - etc

- Discussion on Committees/WGs requests; - Information on IEC opinion; - Possible solutions - etc.

CIM toolsSecretariat

WGs defining needs

WGs defining needs

Summary

ENTSO-E speaks for all TSOs in the EU and others connected to their networks

ENTSO-E and the European TSOs stand for

Reliable operation

Optimal management

Sound technical evolution of the European electricity transmission system

Security of supply

Meeting the needs of the IEM / facilitating market integration

ENTSO-E is already active ahead of the 3rd package

ENTSO-E takes its new tasks described in the 3rd package very serious, in particular network codes and network development plans

These plans should play an important role for the overall European energy policy, including for continental scale planning for the integrated European market, CO2 reductions, energy efficiency and renewable energy system integration

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