madrid, 30 th january 2013
DESCRIPTION
18 th S G Meeting South Gas Regional Initiative. Madrid, 30 th January 2013. Agenda. II. Capacity Allocation Mechanisms. II.1. Draft Roadmap for Capacity Allocation Mechanisms (CAM Roadmap) II.2. NW Capacity Allocation Platform II.3. Improvements in the SP-PT CAM - PowerPoint PPT PresentationTRANSCRIPT
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Madrid, 30th January 2013
18th SG Meeting
South Gas Regional Initiative
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Agenda10:30-10:40 I. Opening
I.1 Welcome
I.2 Agenda and minutes from the last meeting (for approval)
10:40 – 11:45 II. Capacity Allocation Mechanism
II.1 CAM Roadmap (for information by Regulators)
II.2 North West Capacity Allocation platform (for information by TSOs)
II.3 Improvements in the Sp-Pt Allocation of capacity (for information by
TSOs)
II.4 2012 OSP Short-Term Capacity between Spain and France (for
information by TSOs)
II.5 Next steps and calendar (for discussion)
11:45-12:45 III. Congestion Management Procedures
III.1 CMP Roadmap (for information by TSOs)
III.2 Next steps and calendar (for discussion)
12:45-13:00 IV. Ten-Year Network Development Plan and Project of Common Interest
(PCI)
IV.1 Update on PCI Identification (for information by Regulators)
13:00-13:30 V. Proposal of models for the integration of the Spanish and Portuguese gas
markets in an Iberian natural gas hub (for information by Regulators)
13:30-13:45 VI. Review of actions considered in the Work Plan 2011-2014 (for discussion)
13:45-14:00 VII. AOB and next meetings
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II. Capacity Allocation Mechanisms
Area of work Responsible Starting Deadline
OSP France-Spain: annual allocation of short-term capacities
TSOs Nov. (yearly)
Dec. (yearly)
CAM harmonisation proposal (CAM pilot testing Sp‐Pt borders)
NRAs-TSOs Jan. 2011 Jun. 2012
CAM harmonisation proposal in the whole region NRAs-TSOs Jan.2012 Dec.2013
Set up a common TSO Allocation Platform TSOs Jan.2014 Dec.2014
II.1. Draft Roadmap for Capacity Allocation Mechanisms (CAM Roadmap)
II.2. NW Capacity Allocation Platform
II.3. Improvements in the SP-PT CAM
II.4. 2012 OSP between SP-FR
II.5. Next steps and calendar
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II. Capacity Allocation Mechanisms
II.1. Draft Roadmap for Capacity Allocation Mechanisms
(CAM Roadmap)
• ACER/ENTSOG CAM Roadmap for Europe (for information
by ACER)
• CAM Roadmap for SGRI (for information by NRAs)
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for South Gas Regional Initiative
GOAL: early implementation of the provisions from the CAM NC
In line with the Roadmap for the early implementation of the CAM NC,
developing by ACER and ENTSOG.
Coordinated CAM in the Region FRANCE-PORTUGAL-SPAIN in 2014
PRODUCTSCALENDAR
REGULATORY NEEDS IT SYSTEMs
1 2 3
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
Capacity product definition and calendar (I)
Main issues to be decided:
• Bundled/Virtual products to be offered
• Standard capacity products to be prioritised
• Capacity reserved for each product
• Allocation calendar for 2014 and onwards
• IP where the products will be allocated (physical or virtual points)
• Coordination CMP-CAM
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
Capacity product definition and calendar (II)
• Definition of available bundled capacity for the next 15 years (Oct
2014...), agreement on the split of capacity (Q, yearly, 15 years
• VIP or two IP ?
• Common criteria on: unbundled / interruptible / backhaul
• Monthly capacity products have been allocated by OSP until 31st
March 2014
• Capacity products to be offered before March 2014 for the period April
2014-September 2014. Proposal: Maintain prorate or new CAM NC?
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SPAIN-FRANCE (I)
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
Capacity product definition and calendar (III)
Proposal of Auctions:
• Annual quarterly capacity auction in June 2014: first Q capacity
products from Oct 2014 to Sept 2015 (Q1-Q4) ---- common platform
• Rolling monthly auction in Sept 2014 ?
• Daily auctions from October 2014 ?
• Annual yearly capacity auction in March 2014/2015: first yearly
capacity products from Oct 2014/2015 (Y1-Y15)
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SPAIN-FRANCE (II)
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
1 Capacity product definition and calendar (IV)
• Definition of available bundled capacity for the next years (Oct
2014...), agreement on the split of capacity (Q, yearly, 15 years), Longest
allocation period = 1 year ?
• VIP
• Common criteria on: unbundled / interruptible / backhaul
• Yearly and Monthly capacity products have been offered by auction in
June 2012, from Oct 2012 to Sept 2013
• To be decided: Quarterly capacity product could be offered in June 2013
(Oct 2013-Sept 2014) the same methodology than last year? Yearly capacity
product in March 2013?
SPAIN-PORTUGA L (I)
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
1 Capacity product definition and calendar (V)
Proposal of Auctions:
• Annual quarterly capacity auction in June 2014: Q capacity
products from Oct 2014 to Sept 2015 ----- common platform for
the first time
• Rolling monthly capacity auction Sept 2014 ?
• Daily auctions from October 2014 ?
• Annual yearly capacity auction in March 2014/2015: first yearly
capacity products from Oct 2014/2015, for one year?
SPAIN-PORTUGA L (II)
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II. Capacity Allocation MechanismsII.1. CAM Roadmap for SGRI
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Annual yearly auctions: 1st Monday of March / Y1: 1st Oct-31st SeptAnnual quarterly auctions: 1st Monday of June / Q1: 1st Oct-1st Jan.Monthly capacity auctions: 3rd Monday of each monthDaily auctions: 16.30 CET D-1
… 2013 2014 2015 2016 2029 …
Se Oc No De Ja Fe Ma Ap Ma Ju Ju Au Se Oc No De Ja Fe Ma Ap Ma Ju Ju Ag Se Oc
Prorata allocation
SP -FR
Annual yearly capacity auctions
Annual quarterly capacity auctions
Rolling monthly capacity auctions
Rolling day ahead capacity auctions
Within -day capacity auctions
AuctionSP -PT
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
Regulatory needs (I)Auction mechanism as a default CAM in the interconnections
Moving towards bundled and virtual capacity
Harmonizing the capacity products and timeframes
New regulation need to be consistent with European NC:• CMP NC
• Balancing NCo Agreement on nomination and renomination schemes
• Interoperability and Data Exchange NCo Harmonization of gas day / gas year- 2014
o Temperature to measure gas- 2014
o Units used to allocate capacity and sign contracts- 2014
• Tariffs NC:o Reserve price
o Price to be paid by subscribers during all the contract life
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
Regulatory needs (II)To be discussed:
• Shipper license to participate in auctions process, allowing the same shipper to book unbundled capacity. Qualification steps.
• Price steps definition and allocation of revenues arising from the auction among TSOs
• Release of information to the market. Calendar
• Capacity contracts: obligation to subscribe the capacity allocated in the auction, timing, financial deposit...
• Responsibilities of TSOs (implementation) and NRAs (supervision)
• Secondary capacity market: bundled virtual capacity to remain as allocated in the auction
• Coexistence of old and new contracts
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
IT System
To develop a single platform to allocate capacity: Best available technologies, functionalities, secure, smooth exchange of information
Calendar to join European Capacity Platform by TSOs in the SGRI
TSOs to develop its own IT system to integrate the information from the capacity auctions
TSOs to collaborate bilaterally to develop IT systems for nomination and renomination of bundled capacity, CMP implementation, exchange information for balancing process.
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II. Capacity Allocation Mechanisms
II.1. CAM Roadmap for SGRI
Way forward
Further discussion on this draft Roadmap with TSOs - ASAP
Public consultation of this document with Stakeholders- February 2013
Final CAM Roadmap of the SGRI – March 2013
Discussions and definition of the capacity products, available capacity and IT systems– April/May 2013
Start of the implementation of IT systems –Summer 2013
Start of proposing national regulation modification – Summer 2013.
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II.2. North West Capacity Allocation Platform
(to be presented by
Platform member)
II. Capacity Allocation Mechanisms
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II. Capacity Allocation Mechanisms
II.3. Improvements in the Spain-Portugal allocation of capacity
(to be presented by TSOs)
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• Enagás and REN will develop a similar procedure than the previous year.
• The intention is to carry out the auction process during the 2Q, earlier than the previous year.
• Enagás and REN suggest to open a short period for comments on top of the consultation already held in October.
• Enagás and REN will jointly study the possibility to adapt the products to the NC on CAM subject to the approval of NRAs.
II. Capacity Allocation MechanismsII.3. Improvements in the Spain-Portugal allocation of capacity
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II.3. Improvements in the SP-PT CAM (I)
Capacity Products to be offered for the gas year 1st Oct 2013 to 30th Sept 2014:
• Firm yearly products
• Firm quarterly products
• Interruptible products if less than 95% of firm capacity has been allocated at the
previous firm products auctions.
IT system to allocated capacity to shippers
II. CAM
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II.3. Improvements in the SP-PT CAM (II)
Annual Transmission Capacity Auction will take place in June 2013.
National regulations to be aproved in advance in order stakeholders
will be timely informed:
• Resolución CNE on methodology for the coordinated capacity allocation at
the IP between Spain and Portugal.
• Mecanismo de atribuição de capacidade da RNTGN - ERSE
• Information Memorandum and Standard Contracts: to be elaborated by
TSOs describing the procedures for the annual auction (following the Draft
CAM NC): rules, price steps, reserve price, capacity offered, application
form, contract information, calendar…. To be approved by NRAs.
II. CAM
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II. Capacity Allocation Mechanisms
II.4. 2012 OSP ST Capacity between Spain and France
(to be presented by TSOs)
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II. Capacity Allocation Mechanisms
II.5. Next steps and calendar
(for discussion)
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III. Congestion Management Procedures
Area of work Responsible Starting Deadline
CMP harmonization proposal between SP-FR
NRAs-TSOs Jan. 2011 Dec. 2012
CMP harmonization proposal between SP-PT
NRAs-TSOs Jan. 2012 Jan. 2013
III.1. CMP Roadmap (for information by TSOs)
III.2. Next steps and calendar (for discussion)
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III. Congestion Management Procedures
III.1. Draft Roadmap for Congestion Management Procedures
(CMP Roadmap)
(for information by TSOs)
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III.2. Next steps and calendar
(for discussion)
III. Congestion Management Procedures
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IV. Ten-Year Network Development Plan and Project of Common Interest (PCI)
Area of work Responsible
Starting
Deadline
Regular update and publication in CEER website of project status of OS 2013 and 2015
TSOs - NRAs Dec. (yearly)
Jun. (yearly)
Creation of a working group in the region in order to test the process of PCI identification
NRAs-TSOs Apr. 2012 Dec. 2012
IV.1. Update on PCI Identification (for information by regulators)
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6th meeting held on 18 January: Previous meeting organized by EC with
NRAs with the aim to know NRAs’ opinion. Summary on NRAS’ opinion on
impact areas
• Main rule: a project must impact on at least two Member States to be eligible
• Clusters: projects considered in a cluster represent just one PCI.
• Presentation of analysis of qualitative and quantitative assessment carried
out by consultants, as well as a preliminary PCIs list
• Main comments from attendants: impact areas, quantitative assessment
(formulas application, parameters used, inputs, etc.). As a result, new
calculations are being considered and a new list will be elaborated
• Participants were given time to send their opinion on impact areas and clusters
Next meeting to be held in late February-early March
IV. TYNDP and PCIs IV.2 Update on PCIs identification (I)
North-South Gas Interconnections in Western Europe
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IV. TYNDP and PCIs IV.2 Update on PCIs identification (II)
North-South interconnections in Western Europe
1º G82 TWINNING OF SOUTHWEST SCOTLAND ONSHORE SYSTEM Interconnection2º G58 REVERSE FLOW SWITZERLAND-FRANCE SECTION Interconnection3º G56 REVERSE CAPACITY FROM FRANCE TO BELGIUM Interconnection4º G48 MERGING OF GRTGAZ NORTH AND SOUTH ZONES Internal project5º G103 CONNECTION OF MALTA TO THE EUROPEAN GAS NETWORK Interconnection6º G61 NEW IP TO LUXEMBOURG Interconnection7º G136 PHYSICAL REVERSE FLOW AT MOFFAT INTERCONNECTION POINT Interconnection
8º G133+135Physical reverse flow from Northern Ireland to Great Britain and Republic of Ireland via Scotland to Northern Ireland pipeline
Interconnection
9º G114 3RD INTERCONNECTION POINT PORTUGAL-SPAIN Interconnection10º G45 ARC DE DIERREY Internal project11º G6 BRETELLA (GERMANY
‐BELGIUM) Interconnection
12º G5 RERVERSE FLOW (SOUTH
‐NORTH) FROM SWITZERLAND TO GERMANY Interconnection
13º G44 NEW LINE BETWEEN CHEMERY AND DIERREY Internal project14º G7&8 LNG TERMINAL ZEEBRUGGE
‐ CAPACITY EXTENSION & 2ND JETTY LNG
15º G60 IBERIAN-FRENCH CORRIDOR: EASTERN AXIS-MIDCAT PROJECT Interconnection
Order according to total score
Project Code Project Name Type
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IV. TYNDP and PCIs IV.2 Update on PCIs identification (III)
North-South interconnections in Western Europe
16º G10 BELGIUM/ LUXEMBOURG Interconnection17º G91 CROSS BORDER BI-DIRECTIONAL FLOWS (ITALY - SWITZERLAND) Interconnection18º G96 BAGNOLO MELLA GAS STORAGE Storage19º G104 GAS COMPRESSOR OPTIMISATION PROGRAM IN NETHERLANDS Interconnection20º G47 DEVELOPMENT OF ENTRY CAPACITIES IN THE SOUTH ZONE OF FRANCE Internal project21º G93 GALSI PROJECT(Gazoduc Algérie – Italie) Interconnection22º G59 REVERSE FLOW FR-DE Interconnection23º G28 Monaco Pipeline Interconnection24º G85 OLT OFFSHORE LNG TOSCANA SPA LNG25º G94 BORDOLANO Storage26º G57 NORTH-SOUTH FRANCE TO SWITZERLAND CAPACITY INCREASE Interconnection27º G88 PORTO EMPEDOCLE LNG TERMINAL LNG28º G79 SOUTHWEST KINSALE GAS STORAGE EXPANSION PROJECT Storage29º G144 CARRIÇO UGS DEVELOPMENT (REN-C8 E REN-C10) Storage30º G53 LNG MONTOIR TERMINAL EXPANSION LNG
Order according to total score
Project Code Project Name Type
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IV. TYNDP and PCIs IV.2 Update on PCIs identification (IV)
North-South interconnections in Western Europe
31º G87 LNG Medgas Terminal LNG32º G52 LNG Fos Faster LNG33º G92 CORNEGLIANO UGS Storage34º G51 LNG FOS CAVAOU TERMINAL EXPANSION LNG35º G81 PHYSICAL REVERSE FLOW ON SOUTH NORTH PIPELINE (UK - IRELAND) Interconnection36º G78 KING STREET GAS STORAGE Storage37º G50 SALINS DES LANDES Storage38º G140 LES PINASSES UNDERGROUND GAS STORAGE Storage39º G80 Shannon LNG terminal LNG40º G54 Stublach storage Storage41º G113 UNDERGROUND STORAGE (UGS) CARRIÇO Storage42º G138 IBERIAN CORRIDOR: CROSS-BORDER OPTIMIZATION: EBRO VALLEY PROJECT Interconnection43º G46 ERIDAN Internal project44º G49 CONNECTING CORSICA TO GALSI (CYRENEE) Interconnection
Order according to total score
Project Code Project Name Type
G55 Peckensen storage Storage
G139PROJECT STUDY ON THE INTEGRATION OF POWER TO GAS (PTG) FACILITIES INTO THE GAS TRANSMISSION SYSTEM
Storage
Main projects affecting the Region
Non eligible projects
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V. Developing hub-to-hub trading in the South region
Area of work Responsible
Starting
Deadline
Hub development NRAs-TSOs-stakeholders
Jan.2013 Dec. 2013
Hub-to-hub gas trading in the region NRAs-TSOs-stakeholders
Jan.2014 Dec.2014
V. 1. Proposal of models for the integration of the Spanish and Portuguese gas markets in an Iberian natural gas hub
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V. Developing hub-to-hub trading in the South region
V. 1. Proposal of models for the integration of the Spanish and Portuguese gas markets in an Iberian natural gas hub
(for information by NRAs)
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MIBGAS
Models for the integration of the Spanish and
Portuguese gas markets in a common Iberian
Natural Gas HUB
Area of work Responsible
Starting
Deadline
Analysis of the possible models for the integration of the Spanish and Portuguese gas markets in a common Iberian Natural Gas HUB
NRAs 2013 Dec. 2013
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Analysis of the possible models for the integration of the Spanish and Portuguese gas markets in a
common Iberian Natural Gas HUB (National Market Areas, Regional Market Zones or Supra National Market),
analyzing the advantages and drawbacks, the regulatory harmonization requisites for its implementation and a
proposal roadmap for its entry into force
General Objetive
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Context: European Gas Target Model
.The 3rd package sets a new regulatory framework for a single European Market with:
» Decoupled entry-exit tariff system & not based on transport routes
» Capacity allocation and balancing, both market-based
» Competitive & liquid markets for gas trading, with wholesale price transparency
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Context: European Gas Target Model
. The European Regulators have established, as an objective at a medium term, a model of European Market based in balancing zones with organized markets interconnected through systems of entrance and exit tariffs with independent trading.
. In the Madrid Forum, ACER and the EC encouraged regional initiatives to develop pilot projects in the framework of the objectives of the GTM, to ensure the implementation of the common market under this model gas 2014.
. The European Gas Target Model has two objectives:
» To promote the creation of series of harmonized liquid and functional regional gas markets within the EU.
» To facilitate trading between these regional market.
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Enabling functioning wholesale markets in Spain and Portugal
Spain complies with most of the liquidity parameters to develop a liquid Hub, which would even become higher if considered at regional level with Portugal
has no structural conditions to create a stand-alone wholesale gas market
1. HHI < 2000
2. > 3 supply sources
3. Demand ≥ 20 bcm
4. Churn rate ≥ 8
5. RSI > 110% > 95 days per year
FR ES PT
?
IberiaFR ES PT
2000
FR PTES
20 bcm
Demand
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6
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4.000
1.900
5.200
1.600
37
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IBERIAN GAS HUB
IBERIA has some conditions that favor the development of a Gas Hub:
.High regasification capacity.
.Available transport capacity.
.Potential bridge of gas from North-Africa to Europe
.High volume of LNG
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Current OTC gas market in Spain has a lack of price transparency
• In Spain, the OTC market (based on bilateral transactions) is used mainly as a tool used by traders to manage/optimize the stock of LNG in terminals after unloading shippers
• In Spain, in terms of energy, the volume of operations associated to the OTC market is very high, particularly in regasification terminals
• Transactions already closed are notified to system operator through the system MS-ATR
• The CNE is in charge of publishing the traded volumes and purchasing quotas in the OTC market
• OTC market has a lack of price transparency
There are 8 balance and trading gas points in the Spanish system: the virtual point, the 6 LNG terminals and the UGS
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Current OTC market in Spain
Most of the OTC trade is done at the LNG terminals.
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
Trading volume of natural gas (GWh/month)
LNG BBG LNG Barcelona LNG Cartagena LNG Huelva
LNG Sagunto LNG Reganosa CDG U.S.
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In 2010, CNE proposed a roadmap for the development of a gas exchange in Spain
Accelerate the creation of a gas hub in the Spanish Gas System in order to promote competitiveness, transparency, and reduce the lack of transparency of the current OTC market
General objective
Regulatory instrument
Creation of an gas exchange market in Spain
1. Guarantee of access to every potential party (traders and consumers) under objective, transparent and non-discriminatory conditions
2. Trading hub
3. Development of standard contracts (OTC and organized market)
4. Free and transparent settlement of prices (at least for pre-defined segments of the hub)
5. Offer of gas transparency services, settlement and clearing
6. Potential offer of additional services, based on what demanded by agents
1. Participation of traders and consumers not mandatory
2. Implementation along with the introduction of gradual changes in regulation
3. Creation of transparent price signals
4. Search of minimum level of liquidity
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In 2013, CNE will create a working group for the development of a gas exchange in Spain
. In 14th December 2012, The CNE has approved a proposal of actions in order to speed up the development of the organized market of natural gas in Spain and Portugal (Iberian Hub).
. The CNE has approved a working plan with the next targets:
» Decoupled entry – exit TPA contract models for the Spanish system
» Regulatory reforms needed in the logistic model to facilitate gas trading, and the development of a market based balancing model.
» Report about the current situation of the gas hubs in Europe and Monitoring the development of the different market platforms in Spain.
» Analysis of the model for the Iberian gas market (for Spain and Portugal), to be realized in the framework of the South-European Regional Initiative from the European Regulators Group.
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Current initiatives to develop a gas exchange in Spain/Iberia
STAKEHOLDERS:ENAGAS (main gas TSO), Kutxabank , La Caixa, EVE, Generalitat de Cataluña, and other suppliers in process
MIBGAS, S.A.Sociedad Promotora Bilbao Gas Hub, S.A.
TRADE MARK:MIBGAS is within the group of the Iberian Power Market Operator (OMI).
STAKEHOLDERS:OMIP (Portugal) and OMEL (Spain)
. Two existing initiatives to develop a gas trading platform
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How to enable functioning wholesale markets according with the Gas Target Model?
. Different pictures all over Europe call for different approaches which are not mutually exclusive
» If a country is capable of establishing a functioning market itself the establishment of one (or two, based on C/B analysis) zone within this country is important (e.g. GB, Germany, France, Spain);
» If a country is not capable of establishing a functioning market itself (e.g. due to lack of liquidity or size)
• Cross-border market areas (full merger) is one solution; or • Access to a larger, already functioning market; or• Trading Regions – a single cross-border zone for
wholesale markets with congestion-free interconnection to national end-user zones.
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Possible models to study for the Iberian Market
. 1. The Market Area Model (full integration)
. 2. The Trading Region Model (full integration, except national balancing)
. 3. The Implicit Allocation Model (One single Iberian wholesale platform, with implicit allocation of capacity)
. 4. Two National wholesale markets (no Iberian market integration)
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1 The Market Area Model (full integration)
Features (open to discussion):
. One virtual point for wholesale trading
. Fully integrated wholesale market
. One balancing zone from import points to final customers
. Full integration of DSO networks
. Single set of balancing rules
. Single balancing entity
Market Area A
Country A
Country A Country B
Market Area AB
Cross-border market
area
National market
area
VP
Final customers (A) Final customers (B)
VP
Final customers (A)
VP
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Symbols
Virtual point of the market area serving as the sole marketplace of the market area
Entry or exit contract
Exit contract
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2 The Trading Region Model (full integration, except
balancing)
Country A Country B
Trading Region AB
End userzone A
End userzone B
Final customers (A) Final customers (B)
VP
VP
. Features (open to discussion):
. One virtual point for wholesale trading
. Fully integrated wholesale market
. Trading region is basically kept free of imbalances
. Final customers are balanced in national end user zones that may reflect national specifics
. End-user balancing may be done by national balancing entity
. Congestion-free interconnection between trading region and end user zones through the common virtual point ( virtual exit to end user zone)
Legend and Symbols
Entry or exit contract
Exit contract
Virtual point of the trading region serving as the sole marketplace of the trading region and all attached end user zones. Shifting of gas between trading region and end user zone is done by nominating a virtual exit on the VP.
End user zone = National balancing zone for national final customers, no matter the system (distribution or transmission) they are connected to
Trading Region AB = Cross-border entry/exit system including all nominated points on the transmission systems of countries A and B
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3. The Implicit Allocation Model. Features (open to discussion):
. One single Iberian Wholesale Gas Trading platform
. A certain amount of daily firm cross-border capacity is reserved to allow implicit allocation of capacity
. Cross-border capacity is allocated through the trading activity.
. Combining order books (buy / sell orders) of the exchanges on either side of the border
. Cross border capacity would be allocated by the Market Operator at the same time of the matching of buy and sell orders.
. The Market Operator will inform the TSO about the cross border nomination of gas, and will pay the capacity price (if any)
. The price of the cross border capacity is added to the orders matched among the two countries. Price arbitrage happens automatically.
Market participants make “bids” and “offers” for
buying or selling of gas
Interconnection capacity is being reserved for
implicit allocation
The implicit mechanism matches those bids and
offer with the highest price differences
Capacity is automatically assigned
once a trade is made until cross-border
capacity is sold out or prices have converged
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IBERIAN GAS HUB Proposal of Schedule
1. Draft document analyzing the advantages and drawbacks of the possible models, the regulatory harmonization requisites for its implementation by CNE – ERSE (2013 Q-2)
2. Public hearing (2013 Q-3)
3. Analysis of stakeholders responses to the public hearing (2013 Q-4)
4. Final document to be approved by CNE- ERSE (2014-Q1)
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VI. Review of actions in the WP 2011-2014 (I) Areas of work Responsible Starting Deadline
51
VI. Review of actions in the WP 2011-2014 (II) Areas of work Responsible Starting Deadline
52
Calendar 1st semester 2013 - SGRI
Next meetings:• 27 February: 21th IG • 24 April: 20th SG• 12 June: 22th IG