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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
2
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
5
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
9
Structure of the System Development Committee
10
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
11
Structure of the System Operations Committee
12
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
13
Structure of the Market Committee
14
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
15
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
16
- 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
17