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Cooperation of SEE TSOswithin ENTSO-E

Gheorghe INDRE, TranselectricaConvenor of the MC Regional Group of South East Europe

15th Electricity Forum of the Energy Community Athens

25-26 November, 2009



Outline of presentation

• ENTSO-E: fully operational since 1 July 2009• ENTSO-E and the 3 rd Energy Package• ENTSO-E organizational structure• The Regional Group SEE under the Market Committee• ENTSO-E 2009 – 2010 Work Program• The Ten Years Network Development Plan• Proposed priorities where preparation for code development should

start in 2010• Capacity allocation and congestion management• Some Final Remarks



ENTSO-E: fully operational since 1 July 2009

• Represents 42 TSOs from 34countries

• ~500 million citizens served• 650 GW generation• 230.000 km V-HV lines• 1.500.000 km MV-LV lines• Demand: 3.000 TWh/year • Exchanges: 300 TWh/year • Investments by 2030

for T&D: ~500G€

• Replaces former TSOorganisations: ATSOI,BALTSO, ETSO, NORDEL,UCTE, UKTSOA



Assembly

Board Secretariat

System DevelopmentCommittee

System OperationsCommittee

• 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. Ireland

MarketCommittee

• Market Integration• Ancillary Services• Market Information• Economic Framework• RES• EDI

Working Groups Regional Groups

Legal & RegulatoryGroup

VoluntaryRegional Groups

• European Operational Standards

• Critical Systems Protection

Expert Groups

• Baltic Sea• North West Europe• South East Europe



Regional Group SEE:Mission and objectives (Terms of Reference)• Mission:

• The mission of the group is to promote the development and co-ordinationof the national electricity market at the regional level. The result of this co-ordination will constitute a common input to all ENTSO-E proceduresaiming at the creation of the internal electricity market in EU .

• The objectives (which are very ambitious) focus on key issues for the wellfunctioning market...• ...on supporting SEE TSOs in the process of electricity sector restructuring..• ..on supporting SEE TSOs in the process of implementation of a market based

co-ordinated cross-border capacity allocation in the region in compliance with

the EC Regulation n. 1228/2003 which will be repealed by the EC Regulation n.714/2009

• and on the cooperation with• stakeholders and institutions within the Energy Community,• Working groups and other Regional groups of ENTSO-E for fulfilling its

tasks and objectives.



Members and associate members of “Regional Groupfor South-East Europe“ under the Market Committee

Members• ELES, Slovenia• EMS, Serbia• ESO EAD, Bulgaria• HEP-OPS, Croatia• HTSO, Greece• MAVIR ZRT, Hungary• MEPSO, FYR of Macedonia• NOS BiH, Bosnia Herzegovina•

PRENOS, Montenegro• TERNA, Italy• TRANSELECTRICA, Romania• Verbund-APG, Austria

Associate members• KOSTT, The United Nations Interim

Administration Mission in Kosovo• OST, Albania• TE Ỉ AŞ, Turkey



ENTSO-E 2009-2010 Work ProgramNetwork code development

priori ty areas• Pilot Code (under development)

Proposed priorities wherepreparation for codedevelopment should start in2010

• Transparency• Design for market integration• General generation connection

conditions

Key Work Areas• Ten year network development plan• R&D Plan for TSO needs• Common operational tools• Position papers on future

transmission technology, EMF andlicensing procedures

• Long term strategy for systemdevelopment

• Renewable energy sources• Technical documents on operational

reserves, and on determination ofincident classification• Ancillary services• TSOs’ economic framework•

Congestion Management



Pilot code for grid connection of generators with specialfocus on wind generation

• A common ENTSO-E and ERGEG initiative supported by the Florence Forum• Objectives:

•

To practice new roles and responsibilities of the code development process• “Learning the job by doing it”

• Should cover the development of framework guideline by ERGEG , one underlyingcode

•

Including all necessary consultation and evaluation phases with stakeholders, and atleast informing Member States in preparation for the later Comitology phase• The pilot code project should not be the one and only code activity during the interim;

The suggested pilot network code:Generators connection with special focus on wind generation

(harmonizing grid code requirements)

Reason: one of several codes related to a connection framework guideline toensure consistency with other renewable, cogeneration, conventional generation,

distribution networks, loads



Proposed priorities where preparation for codedevelopment should start in 2010• Transparency rules

• Important aspect of a well functioning electricity market• The area is sufficently mature;

• aligns with EC priorities and ERGEG Work Program (FWGL)• A ENTSO-E Transparency Policy is under way; input to a network code

• Design for Market integration• The outcome of PCG/MIDP expected to provide guidance on where and

when to start develop Network Codes/FWGLs• Likely priorities: Congestion Management, Capacity calculation, Integration

of cross-border electricity markets in the day-ahead and the intradaytimeframes

• General generation connection conditions• Need for consistency between wind generation connection and connection

of other plants



The TYNDP is the most important new taskbesides Network Codes - The first issue in 2010• Based on existing material

• Stakeholders statements in 2009• Review of TSOs practices, projects, …• Definition of scenarios despite 20-20-20 survey still ongoing

•

A first attempt for the content organisation• But a first comprehensive report• Highlighting scenario description, investments overview,

technologies & barriers … and leads for improvements

• = a Pilot Project , basis for further debate



Capacity Allocation and CongestionManagement• Regulation 1228/2003 and its CM Guideline•

Lots of work in this area completed collectively within ENTSO-E and formerlyETSO• Recent EC Infringement Case

• Market Integration Design Project – Establishment of models towards collaboration of regional markets

• Endorsed by the Florence Forum• Participation by all key stakeholders

Conclusions by the EuroPEX-ENTSO-E project

• Regional Initiatives have made significant progress

but overlapping regions are becoming a barrier to market coupling solutions;

• Few examples of initiatives between regions so far

• Little evidence of a coordinated approach

“Target Model” presented at the Regulators Forum



Next step: a Target Model to ensurecompatibility between regional initiatives

• A consensus view amongst stakeholders of amodel for cross border congestion and market

integration• A medium term view for progressive

implementation at the latest by 2015

• Addresses all timeframes in a logical and sequential way• Developed in parallel with the regional initiatives• Act as a benchmark for consistency and essential cross

border harmonisation and compatibility.



Some final remarks• The 3 rd Energy Package has created a new legal basis for the future

development of the process for the creation of the internal electricitymarket in EU.

• The TSO industry has an essential role in the operation of the integratedelectrici ty market, being responsible for reliable operation of theinterconnected grids in the complex competitive electricity tradingenvironment.

• ENTSO-E as an entity required by the 3 rd Energy Package will act for

fulf illing all the tasks defined in the legislation for the benefit of electricityend users and for the sustainable development of the EU economies.• The interests of the TSOs in the region are represented in ENTSO-E by the

Continental Europe Regional Group under System Operation Committee,Continental South-East under System Development Committee and theRegional Group SEE under the Market Committee.

• The Regional Group SEE under the Market Committee of ENTSO-Erepresents the right place for addressing the TSOs interests andcontributions in the region in relation with the regional electricity marketdevelopment.



Thank you for your attention!

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