TITREXXI Madrid Forum 22nd and 23rd March 2012

GRI SSE

Progress and Outlook

Walter BoltzGRI SSE Co-Chair

Geographical Scope of the GRI SSE

XXI Madrid Forum

GRI SSE

AustriaBulgariaCyprusCzech RepublicGreeceHungaryItalyPolandRomaniaSlovakiaSlovenia

Progress and Ongoing work

•2011-2014 Work Plan includes recommendations of XX. MF

•Further updates to reflect prioritization and new deliverables, based on stakeholder survey.

•Active participation in ACER GRI Coordination Group to report on progress •Lack of involvement by some stakeholders and NRAs, high level of commitment from others

• Member state involvement should increase

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NB: Based on attendance of 5th/6th/7th/9th/10th/11th SG meetings – for illustration.

Attendance of GRI SSE SG meetings

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

AUT BG CY CZ GR HR HU IT PL RO SI SK

NRA

TSO

Stakeholder

MS

Main Achievements (I)

•Succesful pilot project on early implementation of CAM: GATRAC platform

•Extension of GATRAC platform announced at December ’11 stakeholder group meeting

•GATRAC platform is already a cross-regional pilot project

•Day-ahead capacity auction pilot project introduced at AT/IT border following shipper consultation

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Main Achievements (II)

•Studies on future market architecture scenarios launched

•CEGH on track to provide a cross-border connection to neighbouring market areas in cooperation with respective TSOs

• Sharing of experiences concerning infrastructure developments & SoS implementation in the region

•Survey on tansparency monitoring by NRAs started

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Deliverables (I)

DELIVERABLE I.1 Standard products & Interoperability

ACTION RESPONSIBLE DEADLINE

All the TSOs adopt the EASEE standards with special reference to gas-day definition, unit and OBAs

TSOs 2012/2013

Harmonization of TSO’ procedures decreasing shippers’ risk and imbalances in 2012

SK/CZ/DERO, BNetzA, URSO

2012

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Increased harmonisation in the field of interoperability is particularly beneficial in GRI SSE region.

Pressure Energy

Volume Gross Calorific Value

Implementation of

CBP 2003-001/01 Harmonisation of Units

Red=milestone not implemented

Yellow: partially implemented

Green: fully implemented

RO+BG+CY: No answers.

(EASEE Gas Implementation Progress Review 2010)

Deliverables (II)

DELIVERABLE II.1 Bundled capacity allocation at Austria/Italy IP

ACTION RESPONSIBLE DEADLINE

Agreement on harmonised nomination and re-nomination rules

SNAM/TAG 2012

Harmonised calculation of available firm and interruptible capacities

SNAM/TAG 2012

Proposal for a procedure for the coordinated allocation of daily capacity

SNAM/TAG 2012

Definition of a bundled capacity product to be allocated by explicit auctions in order to connect PSV and Baumgarten

SNAM/TAG 2013

Deliverables (III)

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DELIVERABLE III.1 Bundled products

ACTION RESPONSIBLE DEADLINE

Concept for the realisation of bundled products at all SSE regional IPs

Net4Gas together with partner TSOs

2012

Implementation of bundled product offers at further SSE regional IPs

Regional TSOs 2012+

DELIVERABLE IV.1 Cross-Regional Balancing Platform

ACTION RESPONSIBLE DEADLINE

Implementation of a cross-regional balancing platform

CEGH 2012

Deliverables (IV)

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DELIVERABLE V.1 Structure of future balancing zones

ACTION RESPONSIBLE DEADLINE

Analysis of macroeconomic benefits linked to implementing different models for balancing and trading zones

NRAs 2012

Case study on institutional and practical steps to implement the provisions of the GTM in the region

NRAs / TSOs/ Stakeholders

2012

Definition of the model for future regional balancing and trading zones.

SG 2012/2013

Planning and launch of implementation SG 2014+

Deliverables (V)

DELIVERABLE VI.1+2 Interconnections and available transmission capacity

ACTION RESPONSIBLE DEADLINE

Check investment plans against the background of future market architecture scenarios

TSOs coordinated by GRI Lead Regulators

ongoing

Consultation of the Gas Regional Investment PlansTSOs with active

stakeholder involvement 2012

Ensure GRI SSE involvement on all levels in the process of identifying PCI in the framework of the EIP

Lead NRAs with active involvement of all other parties of the GRI SSE

2012

Deliverables (VI)

DELIVERABLE VIII.1 Security of Supply

ACTION RESPONSIBLE DEADLINE

Exchange best practice and consult SoS preventive action plans within the GRI SSE

Member States and NRAs

Ongoing

DELIVERABLE IX.1 Transparency

ACTION RESPONSIBLE DEADLINE

Survey NRA activities with regard to monitoring of transparency requirements NRAs 2012

Steps Forward

• Work on all deliverables is ongoing in 2012 with a focus on early implementation of CAM, with the further extension of the GATRAC platform, GTM implementation and infrastructure

•Full commitment from TSOs and stakeholders is required for early implementation pilots

•Strong cooperation needed between NRAs & between NRAs, TSOs and stakeholders to support implementation of pilot projects

• Sharing of best practices across regions will be promoted, especially on GATRAC platform.

• New opportunities for regional work due to policy developments (EIP) within existing priorities

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Outlook and new deliverables: EIP

•Identification of potential PCI in the SSE region in 2012

•Contact between GRI SSE and EC is established

•Stakeholders informed and invited to express interest

• Kick-off meeting to establish working group

•Identification of potential PCI by Q3 2012

•Challenge due to geographical scope of regions: (GRI / GRIPS /EIP do not exactly coincide)

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Outlook and new deliverables: Transparency

• Viewed mainly as an NRA responsibility

• Survey of NRA transparency monitoring activities in the region carried out

•NRAs asked to provide information on level of compliance with transparency requirements by TSOs

•Further investigations possible in a second step

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Outlook and new deliverables: GTM

•Pilot project to identify possibilities for GTM implementation (market areas/trading regions)

• (1) One « macro level » study on possibilities for cross-border market integration in Europe

• Analysis of macroeconomic/welfare benefits of market integration – 2 case regions

•(2) One case study on identification of possible implementation steps of the measures proposed in the Gas Target Model

•Great potential for sharing outcome on a cross-regional level

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EVENT

TITLE OF THE PRESENTATION

Overview on the physical capacity utilization at IPs in Europe in 2011

PT

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• Physical capacity utilization (PCU) is measured by comparing actual physical flows with declared technical capacities (TC) on a daily or hourly basis.

• The pie represents the percentage of time of different PCU levels.• TC are usually calculated for long periods and do not consider short term short

term changes in market and network conditions.• Interruptible capacities are only interrupted at Oberkappel.

?

EVENT

TITLE OF THE PRESENTATION

Capacity utilization at Oberkappel • The actual utilization of the IP Oberkappel exceeds the declared TC for most of the

time.• An approximated TC has been determined which is 90% of the monthly average of the

allocated capacities during curtailment periods. • The TC of BOG is usually x% higher than the approximated TC.

-8000000

-6000000

-4000000

-2000000

0

2000000

4000000

6000000

8000000

10000000

01.0

1.20

11

01.0

2.20

11

01.0

3.20

11

01.0

4.20

11

01.0

5.20

11

01.0

6.20

11

01.0

7.20

11

01.0

8.20

11

01.0

9.20

11

01.1

0.20

11

01.1

1.20

11

01.1

2.20

11

01.0

1.20

12

OberkappelPhysical flows and technical capacities Jan 2011 - Jan 2012

Approximated technicalcapacity (kWh/h)

Technical capacity (exit)(kWh/h)

Technical capacity (entry)(kWh/h)

Physical flow (kWh/h)

EVENT

TITLE OF THE PRESENTATION

Preliminary conclusions• The actual utilization of the IPs in Europe is generally low, i.e. there are

significant physical transmission capacities available at most Ips.• The NWE region seems to have significant excess capacities compared

to today‘s utilization (2011).• The SWE region experienced unusually high utilization rates in 2011 at

the IP in Larrau, most likely of the low temperatures during the winter 2011.

• The SEE (around Austria) is relatively high loaded, but still significant capacities are available at many IPs.

• The transmission requests (nominations) – although exceeding the calculated TCs - can be executed for most of the time. TSOs and regulators need to cooperate in the development of guidelines for TC calculation that are coherent with the expected utilization of the network.

• The actually allocated capacity at Oberkappel was significantly below the TC declared by OGE. By investing in additional capacity in Germany only the capacity of the entire IP can be increased.

Outlook and new deliverables: SoS

• Always considered a priority by stakeholders in the GRI SSE

•Sharing of preventive action plans and risk assessments, exchange of best practices

•Potential for sharing approach on a cross-regional level

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Conclusions• Governance structures to support work of lead regulators in their GRI

•Definition of pilot projects should be a bottom-up process from the regions with NRAs, TSOs and other stakeholders involved

•Involvement of Member states needs to be enhanced

•Commitment from all countries is necessary to achieve progress towards 2014 goals in the GRI SSE

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GRI SSE

30 May : GRI SSE-REMIT Conference in Vienna, open to all stakeholders and market participants

31 May: GRI SSE Stakeholder Group & RCC Meeting, Vienna.

Thank you for your

attention

Thank you for your attention!

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