Substantial advancements in market integration

07.12.2018

Even two positive news for the integration of the European power market have turned up this week. The first comes from the Cross-Border Intraday (XBID) solution. The aim of XBID is to increase the overall efficiency of cross-border trading and intraday coupling. Both are essential for the future European internal energy market. The parties involved in XBID are pleased to confirm that XBID is operating continuously stable and effectively: Since the go-live in June 2018, more than 6.3m trades have been successfully processed.

So far, XBID delivers continuous trading across Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain and Sweden. The preparations for the second XBID-go-live-wave in 2019 are in full swing and the countries to participate are Bulgaria, Croatia, Czechia, Hungary, Poland, Romania and Slovenia. Further changes to XBID concern the gate opening hours (GOTs) in accordance with a decision of the Agency for the Cooperation of Energy Regulators (ACER) of April 2018. Revised GOTs apply from 1 January 2019 initially in those capacity calculation regions (CCRs) where the capacity calculation methodology (CCM) has already been approved.

This week also saw the launch of the Single Allocation Platform for long-term capacity allocation at European borders. 28 transmission system operators (TSOs) from 22 European countries have thus taken another significant step towards an integrated power market. The new platform promotes the development of liquid and competitive forward markets all across Europe in a coordinated manner. It provides market participants with the opportunity to hedge against the risks of cross-border trading. The participating TSOs ensure non-discriminatory access for all market participants to long-term cross-zonal capacity at all relevant borders.

With XBID and the Single Allocation Platform, the European power market integration progresses substantially

Linkup
> See Amprion press release (html)
> See TenneT press release, (html)
> See TransnetBW press release (html)
> See TransnetBW news release on allocation platform (html)

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ACER consultation on Core Capacity Calculation methodology

04.12.2018

Complex issues require precise phrasing. Therefore the new public consultation of the Agency for the Cooperation of Energy Regulators (ACER) is called: “Public Consultation on the amendments of the proposal for common capacity calculation methodology for the Core region”. The consultation has opened on 4 December and will be accessible until midnight on Christmas Eve. Invited to participate are all interested stakeholders, including regulatory authorities, nominated electricity market operators (NEMOs) and transmission system operators (TSOs).

What exactly is the objective of the survey? The Capacity Calculation Methodology (CCM) quantifies the electrical capacity that can be offered across borders to the day-ahead and intraday markets. The Core CCM is valid within the Core Capacity Calculation Region (CCR), which comprises Austria, Belgium, Croatia, the Czech Republic, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia. The TSOs from the Core CCR – among them are the twelve TSCNET shareholders 50Hertz, Amprion, APG, ČEPS, ELES, HOPS, MAVIR, PSE, SEPS, TenneT, Transelectrica and TransnetBW – have conceived and proposed amendments to the Core CCM.

The competent regulatory authorities of the Core CCR have not yet approved the TSO proposal and asked ACER to decide on whether the modified Core CCM complies with the European Capacity Allocation and Congestion Management (CACM) Regulation. Interested parties are invited to provide feedback on the consultation questions concerning the relevant aspects of the Core CCM.

ACER launches public consultation on the compliance of the Core CCM proposed by the Core TSOs with the European CACM Regulation

Linkup
> See ACER press release (html)
> Direct access to consultation (html)

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Acer decision on fallback procedures for Core CCR

09.10.2018

In March 2018, the Agency for the Cooperation of Energy Regulators (ACER) was asked by the competent regulatory authorities to decide on the amended proposal of the transmission system operators (TSOs) from the Core Capacity Calculation Region (CCR) regarding the Core CCR fallback procedures. In the following August, ACER invited all interested stakeholders to share their views on the issue in a public consultation. After evaluating the survey, ACER has now published its decision on revisions to the methodology for fallback procedures.

The Core CCR consists of sixteen Central European TSOs, twelve of which are TSCNET shareholders: APG (Austria), ČEPS (Czechia), ELES (Slovenia), HOPS (Croatia), MAVIR (Hungary), PSE (Poland), SEPS (Slovakia), Transelectrica (Romania), the Dutch-German TSO TenneT, and the three further TSOs from Germany 50Hertz, Amprion, and TransnetBW. ACER’s decision introduces minimal changes to fallback procedures in order to improve legal clarity and enforceability. Most importantly, instead of five different shadow allocation rules, only a single set of rules is adopted by the Agency, which specifies in its decision to which bidding zone borders these rules apply.

ACER has published its decision on the improvement of the fallback procedures proposed by the TSOs of the Core CCR

Linkup
> See ACER press release (html, with access to decision and consultation results)

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ENTSO-E report on market coupling and capacity allocation

15.08.2018

The European Commission Regulation establishing a guideline on Capacity Allocation and Congestion Management (CACM) obliges the European Network of Transmission System Operators for Electricity (ENTSO-E) to monitor the progress and potential problems with the implementation of the day-ahead and intraday coupling. The same applies to the respective Regulation guideline on Forward Capacity Allocation (FCA) which requires ENTSO-E to monitor the FCA implementation with regard to a fair and transparent access of market participants to long-term transmission rights.

In line with its monitoring plan, ENTSO-E, in cooperation with the member transmission system operators (TSOs) and several Nominated Electricity Market Operators (NEMOs), has now published the “First Joint Report on the Progress and Potential Problems with the Implementation of Intraday and Day-ahead Coupling as well as Forward Capacity Allocation”. The comprehensive report covers the period from August 2017 onwards and will be submitted to the Agency for the Cooperation of Energy Regulators (ACER).

ENTSO-E publishes first joint report on the implementation of intraday and day-ahead coupling as well as forward capacity allocation

Linkup
> See ENTSO-E press release (html, with access to report)

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ACER consultation on fallback procedures

02.08.2018

The relevant regulatory authorities have asked the Agency for the Cooperation of Energy Regulators (ACER) to review the fallback procedures in the Core Capacity Calculation Region (CCR) with regard to the European Regulation on Capacity Allocation and Congestion Management (CACM). The Core CCR consists of sixteen central European transmission system operators (TSOs), eleven of which are TSCNET shareholders: APG (Austria), ČEPS (Czechia), ELES (Slovenia), HOPS (Croatia), MAVIR (Hungary), PSE (Poland), SEPS (Slovakia), the Dutch-German TSO TenneT, and the three further TSOs from Germany, 50Hertz, Amprion, and TransnetBW.

The Core TSOs prepared an amended proposal for the CCR fallback procedures. ACER now has been given the task of verifying that this proposal complies with the respective guideline on CACM Regulation of the European Union. Since ACER has to adopt a profound decision on this matter, the Agency takes interest in the comments from different parties on some elements of the amended proposal in order to substantiate this decision. The related public consultation is open til 24 August and all interested stakeholders, including regulatory authorities, nominated electricity market operators and TSOs, are invited to submit their comments.

ACER opens public consultation on the compliance of the fallback procedures proposed by the TSOs of the Core CCR with the CACM Regulation.

Linkup
> See ACER press release (html, with access to consultation document)

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CGM methodology framework concluded

03.07.2018

Good news comes from the methodologies drafting team of the Common Grid Model (CGM) Programme under the supervision of the European Network of Transmission System Operators for Electricity (ENTSO-E): Two additional methodologies have been approved by all the relevant national regulatory authorities. This means that the methodological framework for the CGM process has been completed.

In order to create an integrated European energy market, the European Commission has established guidelines on electricity transmission system operation in various Commission Regulations. All European transmission system operators (TSOs) are obliged to prepare and implement a CGM methodology. The joint TSO proposal on the last two CGM methodologies has been openly consulted in late 2017 and then been submitted to the authorities. Formal approvals at the respective national levels are still pending and are expected in September 2018.

The framework now consists of five methodologies (CGMM-v1-plus, CGMM-v2-plus, CGMM-v3, GLDPM-v1, and GLDPM-v2) covering technologically significant aspects such as capacity allocation, congestion management and forward capacity allocation. The GGM methodologies in their entirety ensure that each TSO involved has access to all the necessary data to build its individual grid model.

The framework for the Common Grid Model Methodology with five methodologies is completed.

Linkup
> See ENTSO-E press release (html, with access to relevant documents)

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PSE presents diagnosis of energy market

29.06.2018

As a European transmission system operator (TSO), the Polish TSCNET shareholder PSE is well aware of its responsibility for the continental electricity market in its entirety and for transnational supply and system security. That is whay PSE is thoroughly monitoring market developments and how regulatory specifications affect them. The company identifies several main challenges that force the European TSOs to reconsider the fundamentals of the European energy market, first of all the increase of decentralised generation due to the growing role of the renewables or consumer production.

Eryk Kłossowski, President of the PSE Management Board, clearly expresses PSE’s attitude to the current setting of the course, and especially the debate on market design: “It is the most important dispute concerning the electricity industry”. In order to assume an important role within this discussion, PSE publishes from now on a series of position papers concerning the European electricity market. The first of these, “The European Electricity Market ‒ diagnosis”, soundly deals with such important aspects as the sizing of bidding zones and cross-zonal exchange.

 

The Polish transmission system operator PSE has published a position paper on the European energy market design.

Linkup
> See PSE press release (html)
> Open “Diagnosis” (pdf, 2,28MB)

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First edition of the Bidding Zone Review

06.04.2018

With the European Network of Transmission System Operators for Electricity (ENTSO-E) as facilitator, fifteen European transmission system operators (TSOs) have published a first edition of the Bidding Zone Review in line with the European Commission guideline on capacity allocation and congestion management. Among these TSOs are the TSCNET shareholders 50Hertz, Amprion, APG, ČEPS, ELES, Energinet, MAVIR, PSE, TenneT, and TransnetBW as well as the TSCNET customers Creos and SEPS.

The release follows a public consultation of the review, which lasted until 9 March. The involved TSOs have carefully considered stakeholder feedback and have now made their recommendation to the respective national government and regulatory authorities. The competent authorities have to reach an agreement by 30 September on whether to accept the bidding zone configuration or to request modifications.

> See ENTSO-E press release (html, with access to report on the review)
> See PSE press release (html, added on 10 April)

Picture: Illustration based on final ENTSO-E report

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