ČEPS half-year report: progress despite pandemic

06.10.2020

The development of European electricity infrastructure cannot be delayed, even in the event of a pandemic. The Czech transmission system operator (TSO) ČEPS has therefore continued in the first half of 2020 – and thus in times of Covid-19 – to comprehensively expand the national transmission system to meet new customer requirements as well as demands arising from international cooperation in the electricity market and to keep pace with the changes in the energy landscape. Notwithstanding the increased challenges, the Czech transmission system was as reliable and efficient as usual during the unforeseen circumstances of the six months and the TSCNET shareholder transmitted 32,000GWh of power.

In the reporting period, the income of ČEPS increased, but also the expenses due to the corona pandemic. This was mainly caused by the need to purchase power balancing services to cope with the decline in electricity consumption during the tense economic situation. Nevertheless, with total revenues increasing in the first half of 2020 compared to the same period of the previous year by nearly CZK 1.1bn to CZK 13,002.5m (about €479,243m), the TSO managed to make a respectable profit of CZK 1.8bn (about €66,344m). “In a year-on-year comparison, total sales from sold licensed services grew the most. After disregarding MC shipping, they accounted for 98% of our total revenues,” explains Martin Durčák, Chairman of the Board of Directors of ČEPS.

ČEPS reports positive figures despite the Covid-19 pandemic for the first half of 2020 (picture: ČEPS)

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> See ČEPS press release (html)

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Delay for Interim Coupling

11.09.2020

To introduce single day-ahead coupling in a total of 23 European countries, the so-called 4M Market Coupling Countries (4M MC) – Czech Republic, Hungary, Romania, and Slovakia – are to be connected to the Europe-wide Multi Regional Coupling (MRC) of the electricity market. The initiative to implement the MRC extension is the DE-AT-PL-4M project, also referred to as “Interim Coupling Project”. It aims to establish implicit capacity allocation based on Net Transfer Capacity (NTC) at six borders: PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, and HU-AT. The TSCNET shareholders 50Hertz, APG, ČEPS, MAVIR, PSE, SEPS, TenneT, and Transelectrica – transmission system operators (TSOs) from Austria, Czechia, Germany, Hungary, Poland, Romania, and Slovakia – participate in Interim Coupling.

After the project had completed the design phase and entered the implementation phase at the end of 2019, Interim Coupling was actually supposed to start in September 2020. The TSOs and Nominated Electricity Market Operators (NEMOs) involved have now announced that the kick-off must be postponed. This is due to several project parties experiencing local implementation bottlenecks in the first quarter of 2020 because of interrelations between ongoing parallel projects. This led to a delay of several months in the implementation activities for Interim Coupling. National regulatory authorities have asked the European Commission to provide guidance on how to proceed with this project. Market players will be informed as soon as possible about the next steps.

The start of the AT-PL-4M MC project has been postponed

Linkup
> See MAVIR press release, html
> See PSE press release, html
> See SEPS press release, html
> Open AT-PL-4M MC information paper provided by Transelectrica (pdf, 262.12kB)

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Change in the ČEPS Board of Directors

01.09.2020

On 25 August 2020, the Supervisory Board of the Czech transmission system operator (TSO) ČEPS elected Pavel Šolc as a new member of the company’s Board of Directors. He follows Zbyněk Boldiš, whose term of office ended on 29 August. Martin Durčák, Chair of the ČEPS Board of Directors thanks Zbyněk Boldiš for “his commitment and professional work by which he significantly contributed to ČEPS’ active involvement in European energy structures”.

Pavel Šolc already held several management positions at ČEPS from 1999 to 2012 before shifting to the Czech Ministry of Industry and Trade as a deputy minister from 2012 to 2015. Mr Šolc then joined the board of the Czech distribution system operator (DSO) ČEZ Distribuce, where he also served as Head of Distribution Asset Management. For the TSCNET shareholder, he will now oversee energy trading and dispatch.

Pavel Šolc has been appointed member of Board of Directors of ČEPS (picture showing Prague, Czechia: Jaromír Kavan)

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> See ČEPS press release (html)

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New Local Implementation Project under SIDC

09.07.2020

European transmission system operators (TSOs) are committed to the European Energy Union by collectively working towards an integrated European electricity market. A key component for market integration is cross-border Single Intraday Coupling (SIDC), which was introduced as XBID in June 2018. SIDC is designed to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. Currently, the markets of 22 countries are coupled through SIDC: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Spain, and Sweden. With the inclusion of the Slovakian Nominated Electricity Market Operator (NEMO) OKTE and TSCNET shareholder SEPS, the TSO from Bratislava, the project also extends to Slovakia.

Within the framework structure of the SIDC, Local Implementation Projects (LIPs) provide for the expansion of the market coupling, and a new project has now been established as LIP 17. The NEMOs and TSOs from the Czech Republic, Hungary, Poland, and Slovakia – the TSCNET shareholders ČEPS, MAVIR, PSE, and SEPS – have proposed to implement SIDC across the borders between Slovakia-Czechia, Slovakia-Hungary, and Slovakia-Poland. The SIDC Steering Committee approved on 7 July and the LIP 17 roadmap will now be elaborated in more detail.

The SIDC solution comprises a common IT system with a shared order book, a capacity management module, and a shipping module. In addition to the TSOs mentioned above, the TSCNET shareholders 50Hertz, Amprion, APG, ELES, HOPS, TenneT, Transelectrica, and TransnetBW as well as the TSCNET customers Creos from Luxembourg and Energinet from Denmark are also part of SIDC.

A new LIP for the introduction of intraday trading across the borders of Czechia, Hungary, Poland, and Slovakia has been established under SIDC

Linkup
> See MAVIR press release (html)
> See PSE press release (html)
> See SEPS press release (html)

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ČEPS: Nearly 200km of new or upgraded lines

24.04.2020

Mid spring is the time to report on the previous business year and the Czech transmission system operator (TSO) ČEPS is no exception in this respect. The TSCNET shareholder looks back on a very solid year with impressive figures: The total volume of electricity at transmission system output in 2019 amounted to 66,447GWh. The maximum transmission grid load of 11,895MW was registered on 24 January and the minimum load of 4,831MW on 4 August.

ČEPS’ successful financial year 2019 is reflected in a profit of about CZK4,04bn (€146.5m) before taxes, which is a significant increase compared to 2018 (CZK3.8bn). This profit is partly due to the export orientation of the Czech TSO in terms of international collaboration. Martin Durčák, Chairman of the Board of Directors of ČEPS, explains: “The Czech export balance amounted to -13,097GWh of electricity. Financial results from commercial activities, particularly from auctions for cross-border capacities and the ITC mechanism, contributed to the profit before tax by approximately a third.”

The good financial result allowed the TSO to invest substantially in the future viability of the Czech transmission system: In 2019, ČEPS invested a total of round CZK5,14bn (€186.4m) in the transmission infrastructure. Nearly 200km of 400kV lines were newly constructed or upgraded. The strong business performance of ČEPS, reflected in robust and predictable cash flow, transparency, and a strong financial profile, is widely recognised. In November 2019, the rating agency Moody’s raised ČEPS’s rating to Aa3 with a stable outlook.

ČEPS looks back on a successful business year 2019 (edited picture of ČEPS’ Sokolnice substation in the Brno-Country District by RomanM82, Creative Commons, Wikimedia)

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> See ČEPS press release (html)

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SIDC: Massive growth in trading volume

02.04.2020

European cross-border Single Intraday Coupling (SIDC) was introduced in June 2018 (then called XBID) to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. The overarching objective is the integration of the European energy market. In November 2019, SIDC was extended in a second go-live, so that currently the markets of 22 countries are coupled through SIDC: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Luxembourg, Norway, the Netherlands, Portugal, Spain, Sweden (first go-live), and Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovenia (second go-live).

The Nominated Electricity Market Operators (NEMOs) from the seven countries of the second go-live report significant growth in trading volume in the coupled intraday market. The Hungarian NEMO HUPX, for example, recorded an average monthly trading volume of around 75,600MWh from December 2019 to February 2020 compared to 7,600MWh in the same period of the preceding year; in the Czech Republic, the volume has increased eightfold. The other NEMOs are also registering significant growth rates. A total of 36 million trades have been executed since SIDC first went live, and the system continues to operate reliably after the second wave.

The SIDC solution is based on a common IT system with a shared order book, a capacity management module and a shipping module. The TSOs cooperating in SIDC include the TSCNET shareholders 50Hertz, Amprion, APG, ČEPS, ELES, HOPS, MAVIR, PSE, TenneT, Transelectrica and TransnetBW, as well as the TSCNET customer Creos from Luxembourg and Energinet from Denmark. With the accession of the NEMO OKTE and further TSCNET shareholder SEPS, the TSO from Bratislava, the project has meanwhile been extended to Slovakia. A third go-live to expand continuous cross-border intraday trading to Greece and Italy is expected in the first quarter of 2021.

The seven new members of SIDC for a single integrated European intraday market are reporting enormous growth in trading volume

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> See Amprion press release (html)
> See PSE press release (html)

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Paper on MRC extension

26.03.2020

The so-called 4M Market Coupling Countries (4M MC) – the Czech Republic, Hungary, Romania and Slovakia – are to be connected to the Europe-wide Multi Regional Coupling (MRC) of the electricity market. This will introduce Single Day-Ahead Coupling across 23 European countries. The initiative to implement the MRC expansion is the DE-AT-PL-4M MC Project, also known as “Interim Coupling Project”. The relevant transmission system operators (TSOs) from Austria, Czechia, Germany, Hungary, Poland, Romania and Slovakia – the TSCNET shareholders 50Hertz, APG, ČEPS, MAVIR, PSE, SEPS, TenneT, and Transelectrica – are part of the project consortium.

The AT-PL-4M MC Project establishes implicit capacity allocation based on Net Transfer Capacity (NTC) at six borders (PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, HU-AT). The Nominated Electricity Market Operators (NEMOs) and TSOs participating in the DE-AT-PL-4M MC Project now have published an information paper for market participants containing key information on the project in a question and answer format. This information includes the main expected changes for the market, the planned communication methods with market participants and a high-level technical description of the market design to be implemented by the project.

The partners of the AT-PL-4M MC Project for integrating Czechia, Hungary, Romania and Slovakia into MRC have published an information paper

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> Open AT-PL-4M MC information paper provided by MAVIR (pdf, 732.98kB)

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TERRE platform launched

07.01.2020

The project “Trans European Replacement Reserves Exchange” (TERRE) is dedicated to implementing the exchange of replacement reserves (RRs) under the EU guideline on electricity balancing. The objective of TERRE is to establish the European RR balancing energy market via an RR platform and to create uniform conditions for market participants. TERRE has been confirmed by the European Network of Transmission System Operators for Electricity (ENTSO-E) as the European platform for the exchange of balancing energy from RRs and is closely monitored by national regulatory authorities and the Agency for the Cooperation of Energy Regulators (ACER).

TERRE involves eight European transmission system operators (TSOs). The three TSCNET shareholders ČEPS from the Czech Republic, PSE from Poland and Swissgrid from Switzerland are complemented by RTE (France), National Grid (United Kingdom), Terna (Italy), REN (Portugal) and Red Eléctrica de Espaňa (Spain). A further six TSOs with observer status include the TSCNET shareholders MAVIR from Hungary and Transelectrica from Romania.

The TERRE platform was launched on 6 January 2020. The platform ensures cost-effective balancing energy with service availability within 30 minutes in a European setting. ČEPS was the first TSO to connect to the platform, and is currently also the only one. Further members will follow. “The launch of TERRE represents the completion of several years of effort, from defining business rules to developing an IT solution to testing the system with market participants in Europe,” explains Zbyněk Boldiš, Member of ČEPS’ Board of Directors.

The TERRE platform for the balancing of replacement energy reserves has been successfully launched (picture showing Zbyněk Boldiš, Member of ČEPS’ Board of Directors)

Linkup
> See ČEPS press release (html)
> Visit ENTSO-E’s TERRE website (html)

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Single Intraday Coupling expanded

08.11.2019

Europe-wide intraday coupling is a key component for the completion of the European internal energy market. To help achieve this goal, the European cross-border Single Intraday Coupling (SIDC) solution was launched in June 2018 (then called XBID), standing for a significant step towards a single integrated continent-wide intraday market. A market of this kind increases the overall efficiency of intraday trading through effective competition, increased liquidity and more efficient use of generation resources across Europe. The SIDC solution is based on a common IT system with a common order book, a capacity management module and a shipping module.

The participating countries were initially Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain and Sweden. SDIC will now be expanded and continuous electricity trading will be possible across seven further countries: Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania and Slovenia. Nominated electricity market operators (NEMOs) and the participating transmission system operators (TSOs) have confirmed the go-live of the extended SIDC and two additional local implementation projects on 19 November with first deliveries on 20 November.

TSOs already collaborating in SIDC include the TSCNET shareholders 50Hertz, Amprion, APG, TenneT, TransnetBW and Energinet as well as the TSCNET client Creos from Luxembourg. With the second wave, six more shareholders follow, namely ČEPS, ELES, HOPS, MAVIR, PSE and Transelectrica.

The SIDC solution for a single integrated European intraday market is expanded by seven countries, including Croatia, Czechia, Hungary, Poland, Romania and Slovenia

Linkup
> See Energinet press release (html)
> See PSE press release (html)
> See APG press release, in German (html)

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ČEPS half-year report: Profits support infrastructure

16.09.2019

In 2019, the Czech transmission system operator (TSO) ČEPS continues its extensive infrastructure investment programme to ensure that the development of the Czech transmission system meets the increasing demands of the rapidly changing energy sector. The profits now presented in the company’s half-year report facilitate these efforts considerably.

The TSCNET shareholder concluded the first half of 2019 with a pre-tax profit of CZK 2.3bn (about €88.84m) and a total revenue of CZK 11,903bn (about €460m), an increase of CZK 1,54bn in comparison to the same period in 2018. “Cross-border auctions account for 38% of revenues,” explains Martin Durčák, Chairman of the Board of Directors of ČEPS. As far as the TSO core business is concerned, a total of 32,760GWh was transferred in the first half of 2019.

An important infrastructure project completed in July 2019 is the connection of the Řeporyje-Prosenice line to the Mírovka substation. The branching of this almost 300km long line, which connects the periphery of Prague with the Olomouc region in the east of the country, will increase the safety and reliability of the Czech transmission grid. Other significant investment measures already implemented this year include the construction of the new Přeštice-Vítkov line linking the Plzeň to the Moravian-Silesian Region. In Vítkov, a new 420kV substation with a gas-insulated switchgear was installed to complement the new line construction.

ČEPS reports positive figures for the first half of the 2019 business year (picture showing Prague, Czechia: JÉSHOOTS)

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> See ČEPS press release (html)

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