for Europe

An ENTSO-E Perspective on a New Energy

17 March 2016

Peder AndreasenPresident

MARKET DESIGNNew Energy Market DesignPublic ITRE Hearing

TSOs support and implement the EU’s RES objectives

Significant flows all over Europe+

Thousands of small generation unitsCHALLENGES: • system stability, • resource variability, • new connections, • changed power

flows, • integrating demand-

side resources, • empowering

consumers & managing data

• unlocking flexibility

27% RES by 2030 about 45% RES in the power system

The flexibility needs of the power system are rising sharply

Source: energinet

Example of one week in September in Denmark: 56% wind power

End-consumers play an increasingly important role

Integrate renewables into the market

Phase out priority dispatch to allow RES to respond to market

Expose ‘mature’ RES technologies to price signals

Ensure balancing responsibility for RES

Support should be market-based (auctions, tendering, premiums)

Create a regional and European framework for RES support

Market design adjustments beyond renewables

Scarcity pricing

Empower consumers: let them choose their level of flexibility (demand-side) and reap the benefits

Value system services

Closer TSO-DSO cooperation for distributed flexibility

Strengthen overall balancing responsibility & let risk-hedging products develop

Recommandations on market design largely correspond to our analysisA common system analysis methodology already exists, but still needs to be adopted by Member States The responsibility for secure system operation needs to remain with TSOs who rely on service providers for close cooperationNew legislation on distributed flexibility is needed

Implement effectively existing mandates for ACER and the ENTSOs

Conclusions for the Langen draft report

THANKS FOR YOUR ATTENTION

Peder AndreasenPresident