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Electricity Regional Initiative

Electricity Regional Initiative. Central West Regional Electricity Market Status October 2008 5 th November 2008 Northern Region SG meeting Alain Marien, CREG. Introduction. The Action plan of the CW region was published in February 2007, with following priority topics:

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Electricity Regional Initiative

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  1. Electricity Regional Initiative Central West Regional Electricity Market Status October 2008 5th November 2008 Northern Region SG meeting Alain Marien, CREG

  2. Introduction • The Action plan of the CW region was published in February 2007, with following priority topics: • Harmonisation and improvement of the auction rules for long term cross-border transmission rights • Implementation of a flow-based market coupling • Implementation of cross-border intraday and balancing trade • Cross-border capacity calculation • Maximisation of cross-border capacities • Regional transmission capacity development plan • Transparency • Monitoring • Following slides: status of the priority topics currently under progress

  3. Harmonisation and improvement of long term auction rules • Objective: harmonisation and improvement of the rules concerning the explicit auctions of long term (year and month) cross-border transmission rights • Main achievements: • TSOs have proposed in June 2008 a first set of harmonised auctions rules • TSOs have created the CASC company who will operate the auctions • Start of operation: for 2009 auctions, and in June with the new rules • Critical issues: • Firmness • Compensation in case of curtailment • Limitation of TSOs liability • Conditions for participant suspension

  4. Flow based market coupling (FBMC) • Objective: implement in 2008 a coupling of the 4 PXs of the region, APX, Belpex, EEX and Powernext that takes loop flows into account • Main achievements: • TSOs/PXs delivered (and published) the orientation and implementation studies • Characteristics of the studied FBMC : centralised, network constraints taken into account through hundreds of critical branches with explicit representation of contingent states (N-1) • TSOs/PXs announced last summer a staged approach with: • The launch of an interim ATC based market coupling (ATC MC) end 2009 • and parallel simulations of the FB system based on real-time data • Critical issues: • FBMC: « pre congested cases » linked to capacity calculation and « non-intuitive results » when power flows from the high price area towards the low price area • Interim ATC coupling: ATC capacity calculations and cost recovery

  5. Cross-border intraday • The implementation of a regional cross-border intraday has been delayed for many months • In the meantime, regulators support the implementation of bilateral, interim solutions: • France Belgium, improved pro-rata, done in May 2007 • Belgium Netherlands, improved pro-rata foreseen end January 2009 • Netherlands Germany, first come first served in November 2008 • Concerning regional intraday, regulators will organize a joint TSO, PEXs and market parties workshop in order to clarify the views on the subject • An ELBAS like system is under consideration

  6. Transparency • CW Transparency report was published end 2007 • Very close to the Northern transparency report • Currently under implementation by the TSOs, PXs, and market players.

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