Congestion Management on the Italian border for the year 2005

European Electricity Regulatory Mini-Forum on congestion management

Milan, 25th January 2005

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2 NTC on the Northern Italian Border [MW] - year 2005

• NTC values assessed by a Technical Task Force (TTF) and approved by a Steering Committee composed by all the TSOs involved

• Definition of ‘balanced’ and ‘unbalanced’ NTC values

• Definition of a procedure to be applied in case of security problems and/or changes of NTC values

• Possibility to review NTC values during the year according to TTF analisys and operation results

(1) New S.Fiorano-Robbia line in operation

France Switzerland Austria Slovenia Total NTC

peak 2.650 3.850 220 430 7.150

off-peak 2.450 2.980 200 370 6.000

peak 2.400 3.120 200 330 6.050

off-peak 2.250 2.750 190 310 5.500

Winter

Summer

Period (1)

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3 Congestion management on the Italian border - year 2005

NTC Capacity managed by GRTN:

Congestions on the Italian electrical border are solved in the day

ahead market: selling bids and bilateral transactions are referred to

the Italian virtual zones

NTC capacity assigned by neighbouring TSOs:

Assignees can offer in the day ahead market or schedule bilateral

transactions (North zone)

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4 Congestion management on the Italian border - year 2005

NORTH ZONE

Implicit Auction

F VIRTUAL ZONE

Bids/Bilateral transactions

through capacity assigned by RTE

Implicit Auction

CH VIRTUAL ZONE

Bids/Bilateral transactions

through capacity assigned by CH

TSOS

Congestion problems on the Italian electrical

border are solved in the Day Ahead Market

through implicit auctions referred to each virtual

zone for the capacity managed by GRTN :

selling bids

bilateral transactions

X

Bilateral transactions

Pool transactions

Selling Bids

Virtual Zone

Pvirt z

€/MWh

MWh

(North-West border)

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5 Congestion management on the Italian border - year 2005

Virtual zonePvirt

North zone

PN

PPUN

PPUN

PN

Pvirt

(PPUN – PN)Congestion

in Italy

(PN – Pvirt)Congestion

on the border

Value of CCC rights

Value of CCCI rights

Qi TL

X

Bilateral transactions

Pool transactions

Selling Bids

Virtual Zone

Pvirt

€/MWh

MWh

TL

Qi > TL

PPUN = Italian national price (Buy)

PN = North zone price

Pvirt = Virtual zone price

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6

Day ahead market (MGP)

AdjustmentMarket (MA)

Dispatching services market (MSD)

Real time balancing session

System Marginal Price

System Marginal Price Pay as bid Pay as bid

10:30 AM 2:30 PM 9 PM 0:0 12 PM

Day (n-1) Day (n)

Reserve

Voltage adjustament

Intra-zone congestion management

Balancing

Unplanned adjustaments:

• Outages

• Real time countermeasures

Energy Energy Services Services

Only one set of offers (Buy/sell) used for both day ahead and real time sessions

Qualified power units only

GRTN as unique counterpart

MSD highlights

Balancing (real time market)