antonio lopez-nicolas manager - markets

The Capacity Allocation & Congestion Management Network

Code: the way forward for IEM target model implementation

EWEA 2012

Copenhagen 18 April 2012

Antonio Lopez-Nicolas

Manager - Markets

The role of TSOs – ENTSO-E

• Mandate for network codes and ten-year plans in Reg. 714/2009

• 41 TSOs from 34 countries

• Fully operational since July 2009

• A trans-European network

• 530 million citizens served

• 910 GW generation• 300,000 km of transmission lines• 3,400 TWh/year demand• 380 TWh/year exchanges

• Replaced former TSO organisations: ATSOI,

BALTSO, RTSO, NORDEL, UCTE, UKTSOA

System Development

System Operation

Electricity Market

Research and Development

Antonio Lopez-Nicolas | 18 April 2012 |

CA

CM

FG

A set of network codes & framework guidelines in ... 2014 … A set of network codes & framework guidelines in ... 2014 …


2010 205020302020

TYNDPNSCOGI

E-Highways

Planned projectsEnvisaged projects

Possible projects

2050 Energy Pathways (National analysis)FP7 Projects (Susplan, Realisegrid, Twenties, Optimate,…..)….

TSOs PlanEU Policies

Time

Possibilities

ENTSO-E modeling shows 38% of ENTSO-E modeling shows 38% of E-demand could be met by RES in 2020E-demand could be met by RES in 2020

… … as RES meets more & more of the electricity demand …as RES meets more & more of the electricity demand …


…and the generation mix changes fundamentally…

Large varying flows all over EU

wind Source: Energinet.dk 2010

Thousands of small power plants

Denmark


Implicit allocation

Price coupling

Continuous Implicit

allocation

Physical and/or Financial

Transmission Rights

TSO-TSObalancing

modelCap

acity

al

loca

tion

Tim

e fr

ame

Long-term market

Day-aheadmarket

Intradaymarket

Balancingmarket

Coordinated available transmission capacity (ATC)

Flow based approach (FB)

Cap

acity

calc

ulat

ion

The IEM Target model for 2014The IEM Target model for 2014


Capacity Allocation

and Congestion

Management

Day Ahead Markets

Day Ahead Markets

IntradayMarketsIntradayMarkets

ForwardMarkets

The network codes that will enshrine the target model into European legislation

Balancing FWGL

Capacity CalculationCapacity

Calculation

Balancing NC


The CACM network code :

-Day ahead target model for market coupling.

-Intra-day target model of implicit continuous trading.

-Rules for calculating capacity and defining bidding zones.

-General sections on definitions, firmness, and cost recovery

The CACM network code :

-Day ahead target model for market coupling.

-Intra-day target model of implicit continuous trading.

-Rules for calculating capacity and defining bidding zones.

-General sections on definitions, firmness, and cost recovery

The Capacity Allocation & Congestion Management network codeThe Capacity Allocation & Congestion Management network code

EC official request to draft the NC received on 19 Sep 2011CACM NC to be delivered by 30 September 2012


CACM network code: How are stakeholders involved?


Public consultation launched on 23 March

The public consultation also includes a supporting document:

•Attempts to explain the code in a clear way and to aid transparency.

•Tries to meet the obligations placed on ENTSO-E by the EC.

• And demonstrate the FWGL is met.

The public consultation also includes a supporting document:

•Attempts to explain the code in a clear way and to aid transparency.

•Tries to meet the obligations placed on ENTSO-E by the EC.

• And demonstrate the FWGL is met.

The public consultation will be open until 23 MayAn open workshop will be held in Brussels on 7 May


CACM Network Code – Next steps


A combination of a bottom up and a top down approach is essential

Network codes and implementation projects are

compliments.

Experience gained via projects is reflected in the codes and the codes facilitate the projects.

Both are important for the delivery of the Internal Electricity Market

by 2014

A robust governance framework which complements the CACM

code is a must to ensure EU Wide implementation

Network codes and implementation projects are

compliments.

Experience gained via projects is reflected in the codes and the codes facilitate the projects.

Both are important for the delivery of the Internal Electricity Market

by 2014

A robust governance framework which complements the CACM

code is a must to ensure EU Wide implementation


13

2300 TWh

The Nordic market – 2000

Central West Europe – 2010

ITVC – 2011

North West Europe – 2012

… … with a regional approach … stepwise …with a regional approach … stepwise …


14

The Nordic market – 2000

Central West Europe – 2010

ITVC – 2011

North West Europe – 2012

European solution – 2014

3200 TWh

… … towards a pan-European day-ahead market …towards a pan-European day-ahead market …


Efficient framework for facilitating infrastructure investments:

• Lengthy permitting procedures (+10 years)

• Insufficient political coherence and will

• Lack of public acceptance

Recent cold wave has shown that the power system has reached its limit in several places for both transmission capacity and generation flexibility

•Already today some lines and substations can hardly be taken out for servicing

•Wind and solar to be curtailed on an increasing number of days

But … IEM “software” cannot work without an adequate European gridBut … IEM “software” cannot work without an adequate European grid


The scale of the challenge… build / replace more than 50000 km of gridThe scale of the challenge… build / replace more than 50000 km of grid


Thank you!

[email protected]

mailto:[email protected]

Developing transparent & stable rules - what is a network code?

The process of developing network codes

Development of a FrameworkGuideline

Development of A NetworkCode

Network Code Status Update Next steps

Requirements for Generators Currently being consulted on. Public consultation closed on 20 March.

Capacity Allocation & Congestion Management

Draft developed, receiving internal approvals

Submitted for on 23 March, deadline 23 May. Public workshop 7 May.

Demand Connection Code Mandate letter received on 5 January 2012. Drafting work taking place within ENTSO-E

Public workshop on 18 April 2012.

Forward Markets ENTSO-E undertaking scoping work.

Official start date 1 October.

Balancing Markets ACER is work on a framework guideline

Consultation on the FWGL expected in April

Operational Security ENTSO-E began formal work on 1 March 2012

Internal development of drafts

Operational Planning & Scheduling ENTSO-E formal work expected to begin on 1 April 2012


Load Frequency Control & Reserves Formal work expected to begin on 1 July 2012


Summary - The status of the network codes

antonio lopez-nicolas manager - markets

Documents

stepsantonio lopeznicolas

uktsoaantonio lopeznicolas

mayantonio lopeznicolas

denmarkantonio lopeznicolas

antonio lopeznicolasmanager

cacm network code

cacm code

cacm nc