SEM – One Year OnLiam Ryan, Market Operations Manager

Agenda

Overview of Market

Registration

SEM Prices

Summary

Participants in the SEM

46 Participants have registered in SEM (8 since November 07)

32 Participants have registered Generator Units ( 7 since November 07)

10 Participants have registered Interconnector Units

Registered Capacity in the Market: 9856 MW

Bids into the Pool

1

23456

Generation

Suppliers & Demand

(MW)

DD

Market Schedule and Price

Market Schedule Quantity

(MSQ)

6

SEM Market Timelines

Time

Registration

TD-20 10:00TD-1

Gate Closure

TD-29

Submission of Offers

12:00TD-1

Ex-Ante Indicative

MSP(Indicative

MSQs & SMP)

TD=0Trading Day

Dispatch & OperationsScheduling

(TSOs)(DQs)

16:00TD+1

Ex-Post Indicative

MSP(MSQs & SMP)

Settlements (TD+1WD)

17:00TD+4

Ex-Post InitialMSP(MSQs & SMP)

MIUN Established

SEM Market Systems

Market Interface

Physical Market

Market Settlement

Participants

System Operators

Banks

Interconnector

Administrators

Meter Data

Providers

Settlement - Interconnector

Nature of IC means special rules in T&SC for settlement of Interconnector Units

Dispatch QuantitiesInterconnector Unit: DQ = MIUN

IRCU: DQ = SO Trade Import + Export Quantities

IC Error Unit: DQ = 0

Metered GenerationFor each Interconnector Unit based on DQ (=MIUN)

Interconnector Error Unit: IC Metered Generation – Sum IC Unit Metered Generations

Settlement

Interconnector Units & IC Error Unit charges/payments for Energy and Capacity

Interconnector Error Unit: Imbalance charges/payments

IRCU Constraint charges/payments

The registration processes consist of two major steps:

Step 1: Party registration

for accession to the market

register as a Party to the Trading and Settlement Code

Step 2: Unit registration

to participate in the market

a Party becomes a Participant by registering Unit(s)

Up to 60 working days receipt of accepted complete application

Concurrent Party and Unit application is possible

Registration Overview

Party

Unit

Interconnector Owner (IO)

Registers Interconnector

Specify IA, IRCU and IEU (IO could be IA as well)

Interconnector Administrator (IA)

System Operator (SO)

Register Interconnector Residual Capacity Unit (IRCU) (as a Unit)

Interconnector Users (IU)

Interconnector Registration

Important !! 2.78

Before import or export must have registered:

Interconnector

Interconnector Administrator

Interconnector Error Unit

Party

Unit

Registration of Interconnector units involves:

Participation Notice

Unit Details 2.33

Evidence of: connection agreements, UOS agreements, Licence to generate/supply, nominated IA etc 2.71

Communication Channel Qualification Testing

Providing Credit Cover

Commencement Notice issued when effective date agree with all parties.

From that date onwards the unit registered can trade in the market.

Unit Registration

Financial Review – 11 months

-Total Billed €3.3bn

82% energy,

14% capacity,

2% imperfections

-Market fully Collaterised

Average SMP Price

System Marginal Price

0

20

40

60

80

100

120

140

160

Nov-07Dec-07

Jan-08Feb-08

Mar-08Apr-08

May-08Jun-08

Jul-08 Aug-08Sep-08

MW

h

Daily Average Monthly Average NDP - Day Ahead Gas price

Capacity Payment

Capacity Payment

€0

€10

€20

€30

€40

€50

€60

€70

Jan

Feb

Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

Mil

lio

ns

Eu

ro Capacity Payment

Summary

Registration process - up to 60 working days

10 Participants have registered Interconnector Units

Nature of IC means special rules in T&SC for settlement of IC Units

Total Billed €3.3bn (82% energy, 14% capacity, 2% imperfections)

Daily Average SMP Varies between €47.3 - €147.5

Monthly Average SMP Varies between € 61.2 to € 96.3