pentalateral energy forum an example of governmental cooperation

8/10/2019 PENTALATERAL ENERGY FORUM an Example of Governmental Cooperation

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PENTALATERAL ENERGY

FORUM An example of governmental

cooperation

Athens Forum25 & 26 November 2009

Hotel Divani Caravell



PENTALATERAL ENERGY

FORUMIn a nutshell

• Context

• Mission

• Organization• Results

• Experiences



3E²



PENTALATERAL ENERGY

FORUMMission statement

= a temporarily, intergovernmentalinitiative, which goal is to enhance the

cooperation between all relevantparties in order to create a regional

Northwest-European electricity

market as an intermediate steptowards one common European

electricity market, …



GAS PLATFORM

Mission statement

= a common governmental initiativeaiming to create a regional

Northwest-European gas market asan intermediate step towards one

common European gas market,

committed to work closely togetherwith all relevant parties …



ORGANIZATION CHART



Memorandum of Understanding

of the Pentalateral Energy

Forum



Stepping stones to an integrated and

secure electricity marketSupport Group 1

calculation & allocation methodscalculation & allocation methodsSupport Group 2

security of supplysecurity of supply

MoU of the Pentalateral Energy Forum on Market Coupling and Security of supply

More harmonized allocation methods Gravity scale

Integrated day-ahead market:

-ATC market coupling in a first step

-Flow based market coupling in a second

step

Strenghten TSOs regional coordination

Regional System Adequacy Forecast

Regional Transmission Capacity Plan



PENTALATERAL ENERGY

FORUMState of play• Regional electricity market (Support Group 1)

Day-ahead electricity trade : market coupling in operation

end of Q1 2010 Single auction platform for the region : newly created

common company “CASC-CWE” in operation

• Security of Supply (Support Group 2)

Short term: common understanding of emergencysituations and mitigation measures

Long term: common methodology for assessing at theregional level the needs in infrastructure & production

• Innovation / Know how Interregional approach

Coreso, Joint Security Service Center

North Sea Grid

• M&A – Tennet/Transpower (E.ON Netz)

– EPEX (EEX/Powernext)



2008 2009 2010

December January February March April May June July August September October November December January February March

CCU : System ready for sub-integration testing

Industrialization of the algorithm

PX Trading system development ready + sub-integration testing

EPEX ready (30/09/2009) APX - BELPEX ready (31/08/2009) Sub-integration testing (28/10/2009)

28/10

Individual TSO IT

ATC System

BEC/End-process System

Communication Layer

Single procurment

Sub-integration

testing

Integration

TestSimulations

ATC-

LAUNCH01/03

Report 1 Report 2 Report 3 Report 4

Planning – ATC

26/10

PX Trading system development ready + Sub-Integration testing

APX - BELPEX ready (31/08/2009)

EPEX ready (30/09/2009)

Sub-integration testing (28/10/2009)



2009 2010 2011

May June July AugustSeptembe

r October November

Decembe

r

Januar

y

Februar

yMarch April May June July

August

Septembe

r

Octob

er

Novembe

r December January

IntegrationTest Simulations(26/08/2010)

26/08

03/11

Preparation for

Parallel running

(03/11/2009)

Simulation Tool

FB Experimentation (31/12/2010)

FB Process

S.A.-TSO part

01/04

Local S.A.

Implementation

Ready for

Parallel Run

Ready for

Parallel Run

Flow Based Validation : Parallel Run Validation of results

29/12

Planning - Flow BasedReport 2 Report 3 Report 4 Report 5 Report 6 Report 7

1st 3 Months

Report

1st 6 Months

ReportFB - LAUNCH



Stepping stones to an integrated and

secure gas marketWorking Group 1

facil itate cross border tradefacil itate cross border tradeWorking Group 2

improve security of supplyimprove security of supply

Priorities 2009

Regional view on allocation mechanisms Transparency on need for investments

More compatible balancing regimes Reverse flow

Develop common Open Season Procedures Supply disruption simulation

Identify differences in legal framework

Priorities 2010 - 2011

Initial discussion on Market coupling Strenghten TSOs regional coordination

More compatible transport procedures Clarify TSOs role in Security of Supply



GAS PLATFORM

State of play• Market & Competition (Working Group 1)

Moderating thorough discussion on marketbased allocation mechanisms of gas

Political support for pilot projects

• Security of Supply (Working Group 2)

1st test of a new security of supply tool:‘Supply disruption simulation’

Identification of ‘reverse flow’ projects Analysis legal framework as input in EU

discussion

PENTALATERAL



PENTALATERAL

COOPERATIONKey characteristics

Intergovernmental initiative (notsupranational)

Ministers directly involved

Voluntarism (no legislation)Complementary to other European initiatives

European orientation

Slender working structure

Neutral secretariat

Stakeholder approach



PENTALATERAL



• Political commitment crucial• Build:

– Confidence – Common language & understanding

– Some (small) working structure

• Prioritize

• Respect compentences & fill the gaps

PENTALATERAL

COOPERATIONSome experiences

pentalateral energy forum an example of governmental cooperation

Documents