dg energy and transport1 matti supponen electricity and gas unit [email protected] “3rd...
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DG Energy and transport 1
Matti SupponenElectricity and gas unit
“3rd liberalisation package”
ERI CEE SG Meeting7.November 2007
European commissionDG Energy and transport
DG Energy and transport 2
EU energy policy in construction
Under preparation:
Climate change policy with emissions trading
Renewable targets and support mechanisms
Energy market package
DG Energy and transport 3
Background
EdF
Market concept not implemented
Price regulation
Long term contracts
Lack of capacity
Not gas for everybody
Big four
Bottlenecks
€Reform in process
North sea depleted, nuclear?
Suez
Enel
DG Energy and transport 4
ETSO Generation adequacy forecast (UCTE, Nordel, UK, Ireland)
Remaining capacity at peak load
0
20
40
60
80
100
2008 2010 2015
Year
GW
Best estimate
Conservative
Minimumvalue (ARM)
DG Energy and transport 5
Cross-border flows
Cross-border Electricity Exchange in EU
10,3%9,2%9,7%9,6%9,0%9,1%
8,4%7,7%
0%
2%
4%
6%
8%
10%
12%
20052004200320022001200019991998
Year
Exch
an
ge/C
on
su
mp
tio
n
DG Energy and transport 6
Ownership unbundling
DG Energy and transport 7
Share of congestion revenue reinvested in interconnection
Source: Energy sector inquiry
900
800
700
600
500
400
300
200
100
0
Ownership unbundled TSOs Vertically integrated TSOs
Share of reinvested congestion revenue33.3% 16.8%
Congestion revenue (2001-6/2005)
Interconnector investment
387
129 104
623
DG Energy and transport 8
TSO co-operation
DG Energy and transport 9
TSO co-operation
Common tasks: Draft technical and market codesOperate the networkPrepare 10-year investment planCo-ordinate research
Organisation: ENTSO
DG Energy and transport 10
Congestion management methods in 2008
Use of implicit auction
Explicit auction only
Special features
No congestionin the region
PX
PXPX
PX
PX
PX Power exchangewith implicitauctioning
PX
PXPX PX
Pool
PXPXPX
PX
PX
AO Auction office
AO
AOAO?
AO?
PoolPool
DG Energy and transport 11
Omistuksellinen eriyttäminen
DG Energy and transport 12
Regulators
DG Energy and transport 13
Regulators
More powersSelectively new powersSingle authority
Co-operationEuropean Energy Agency
DG Energy and transport 14
European Energy Agency
DG Energy and transport 15
European Energy Agency
TasksIndividual decisions on issues
provided for in the EU legislationMonitoring the market and the co-
operation between TSOs Advice the Commission
OrganisationAbout 50 permanent staffRegulatory boardLocation ?
DG Energy and transport 16
SummaryEuropean Investment Plan
TSO ENTSO NRA AGENCY COMMISSION OTH.STAKEH.
Monitor
Propose
Do
Review
Decide
Opinion
Consult
National plansReview National plan, Consistency with European plan D (el) 22c (f)
ConsultedR (el) 2f (1)
Monitors investments R (el) 2d (1)
Reviews draft and gives opinion R (ag) 6 (3)
Receives opinion if drafted measures do not ensure non disc., comp. and eff. func. marketR (ag) 6 (4)
Consultation on European investment planR (el) 2f (1)Draft 10-year investment planR (el) 2d (2)
Adopt European Investment planR (el) 2c (1c)Publish R (el) 2c (5)
Receives opinionR (ag) 6 (3)
Receives opinionR (el) 2d (2)
TEN-E guidelines
Invests
DG Energy and transport 17
SummaryEuropean Technical and Market Codes
TSO ENTSO NRA AGENCY COM OTH.STAKEH.Monitor
Propose
Do
Review
Decide
Opinion
Consult
Invites ENTSO to prepare codes.R (el) 2e (1)
Consultation on codesR (el) 2f (1)Drafts codesR (el) 2c (1) (3)
ConsultedR (el) 2f (1)
COM decision on ComitologyR (el) 2e (3)
Adopt codesR (el) 2c (1) (3)
Monitors impl. of Codes R (el) 2c (4)
Monitors activities of theTSO and other relevant parties D (el) 22c (1a)
Monitors activities of ENTSOR (el) 2d (1)
Reviews draft and gives opinion R (el) 2d (2)R (ag) 6 (3)R (el) 2e (2)
Opinion if drafted measures do not ensure non disc., comp. and eff. func. market or are not agreed or implemented in timeR (el) 2e (2)
ConsultedR (el) 2e (1)
Receives opinionR (el) 2d (2)
Implement
Implement
Implement Implement
Annual Work ProgrammeR (el) 2c (2)
Implement
Implement
ConsultedR (el) 2d (2)
DG Energy and transport 18
Market information
DG Energy and transport 19
Market information
Objective: Better access to market for small players
Current legislation For example load, network and
production capacity data already requested but badly respected
Transparency for OTC-trading
Record keeping Possibility for authorities to investigate
for example market manipulation
DG Energy and transport 20
Retail market
DG Energy and transport 21
Retail market
Opening: Legislation until now concentrated on
wholesale markets DSO unbundling and consumer
protection already on board
Content Harmonisation Objective at least regional retail markets “Retail forum” á la Florence and Madrid Smart metering
DG Energy and transport 22
Regional energy markets in the EU
Moderately concentrated
Highly concentrated
Very highly concentratedcongestion
DG Energy and transport 23
End of the story
Thank you for your attention