European Market Model Implementation

CIM Users Group Spring Meeting

2011-05-12 Praha, Czech Republic

European Regulation – 3rd Package

•2011-03-03: The Agency for the Cooperation of the Energy Regulators (ACER) started its operation .

•Two entities have been created within the European Network of Transmission System Operators :

ENTSO-E for Electricity ENTSO-G for Gas

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European Regulation – ACER

• As concerns electricity market, ACER is responsible for: developing the Framework Guidelines for Network Codes,

according to the priorities set by the European Commission; verifying that the Network Codes developed by the ENTSO-E

on the basis of the Framework Guidelines are consistent with such Guidelines;

providing opinions on the EU-wide Ten-Year Network Development Plans and the national network development plans, and on their suitability to promote the Internal Energy Market;

deciding on cross-border capacity allocation and congestion management;

monitoring the development of the Internal Energy Market.

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European Regulation – ACER

• the Internal Energy Market (IEM) target for implementation:

2015

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European Principles for electricity markets

Regulated Third Party Access: In order to have effective competition the Transmission System Operators have to allow any electricity supplier non-discriminatory access to the transmission network to supply customers; the conditions of access to the transmission network are regulated by regulatory authority.

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European Principles for electricity markets

Grid access tariff: Consumption/Generation is charged at the access point (no link with the electricity path).

Inter TSO Compensation: Mechanism to compensate TSO for the use of its network induced by inter TSO transit.

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Target for the IEM

Over The Counter (OTC) or bilateral trades from long term down to intraday.

Long Term: Transmission Capacity Auctions based on Physical Transmission Rights (PTR) and Use It or Sell It (UIOSI) – Financial Transmission Rights (FTR) are being dicussed.

Day Ahead: Implicit Auctions, i.e. Market Coupling or Market

Splitting. Balancing mechanism

Intraday: Continuous trading Balancing mechanism

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IEC 62325 CIM Market Extensions

Work is going on:

Part 450: “Profile and Context Modelling Rules” submitted in February 2011 as CD

Part 301: “Common Information Model” submitted in May 2011 as CD

Part 351 “European Style market profile” to be submitted as CD in June 2011

Part 451-1 “Acknowledgment Process” to be submitted as CD in September 2011.

IOP Test scheduled mid 2012 together with the ENTSO-E Profile for Network Steady State.

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IEC 62325 CIM Market Extensions

Part 301: “Common Information Model”:Three main packages:

MarketCommon MarketManagement MarketOperations

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IEC 62325 MarketManagement Package

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IEC 62325

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IEC 62325 CIM Market Extensions

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IEC 62325 CIM Market Extensions

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IEC 62325 CIM Market Extensions

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