New EU Electricity Regulation in place

17.01.2020

With the beginning of 2020, the recast of the European Electricity Regulation on the internal market for electricity (EU/2019/943) came into force. The regulation is important for the new electricity market design, which was adopted as part of the “Clean Energy for All Europeans Package” and aims at realising the European Energy Union with common market rules and an efficient and high-performing cross-border infrastructure.

The regulation sets out the basic principles for an efficient electricity market and should allow for improved integration of national markets. It should also create greater capacity for cross-border trade, thereby providing better access to renewable energy. As far as the business of transmission system operators (TSOs) is concerned, rules for better coordination and closer transnational cooperation are the core of the regulatory framework. Furthermore, the functions and tasks of the regional service coordinators (RSCs) are clearly specified.

Already on 10 January the four German transmission system operators (TSOs) 50Hertz, Amprion, TenneT and TransnetBW had submitted their draft scenario framework for the 2035 (2021) Network Development Plan (NEP) to the Federal Network Agency (BNetzA). With this, they want to “contribute to the success of the energy turnaround and the achievement of the climate protection goals”.

The revised European Electricity Regulation on the internal market for electricity entered into force on 1 January 2020 (picture: European Commission / Etienne Ansotte)

Linkup
> See press release of the European Commission (html)
> See Netzentwicklungsplan webpage, in German (html)
> Visit EUR-Lex site (html) for the full text of the Regulation in various languages and formats.

See article on single page

Study on German-Polish TSO cooperation

16.01.2020

The two transmission system operators (TSOs) and TSCNET shareholders 50Hertz from Germany and PSE from Poland jointly conducted the “German-Polish Study on cooperation between TSOs PSE and 50Hertz in long-term and mid-term perspectives”, which now has been finalised. The study was supported by the respective national Ministries responsible for energy.

As its title suggests, the study is divided into an investigation of medium-term and long-term cooperation objectives. The mid-term part aims at improving the coordination of the operational planning processes. The following issues, among others, have been identified as important: improving the quality of forecasting of power flows at the German-Polish border and the coordinated use of cross-border remedial measures such as phase-shifting transformers as well as bilateral and multilateral redispatch. To better predict cross-border flows, PSE and 50 Hertz agreed to support the development of a flow-based methodology, and as far as the remedial measures are concerned, advanced software solutions are required. However, not only the development of an IT tool is needed here, but also advanced coordination and cost sharing in a region-wide mechanism.

For the long-term study, a modelling process carried out by the National Centre for Nuclear Research in Warsaw was used, which was consulted and monitored by experts from both TSOs. Using alternative scenarios, different time frames and market simulations, the main trends in German-Polish electricity exchange as well as future challenges for regional markets and networks were identified, such as interconnector capacities, growth of energy demands or deviating energy prices.

50Hertz and PSE have conducted a joint study on German-Polish TSO cooperation (picture: Andreas Vogel / CC BY-SA 4.0)

Linkup
> See PSE press release (html)
> See 50Hertz webpage on the study, in German (html)
> Open Executive summary (pdf, 538.47kB)

See article on single page

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)

See article on single page

TSO proposals on capacity balancing submitted

20.12.2019

In December 2017, the European Commission Regulation establishing a guideline for electricity balancing came into force. The European transmission system operators (TSOs) were given two years to prepare two proposals aimed at promoting market integration through the procurement and use of standard products for capacity balancing in an efficient, economic and market-based manner. Considering feedback from stakeholders, public consultations and workshops, these two proposals have now been submitted by the European Network of Transmission System Operators for Electricity (ENTSO-E) to the Agency for the Cooperation of Energy Regulators (ACER).

The “Proposal for a methodology for co-optimised allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserve” specifies how cross-zonal capacity should be allocated in a single optimisation process to bids for energy exchange as well as for the exchange of balancing energy or the sharing of reserves. The process suggested involves contracting on a day-ahead basis and meets the requirements of the “Clean Energy for All Europeans Package”.

The “Proposal for a list of standard products for balancing capacity for frequency restoration reserves and replacement reserves” details the minimum harmonisation criteria for the exchange of balancing capacity set by all TSOs. To respect the specific conditions of each region, additional characteristics may be defined and harmonised by two or more TSOs deciding to jointly provide balancing capacity.

ENTSO-E stresses that substantial work still needs to be done on the implementation and application of these proposals. Close interaction between neighbouring TSOs is essential for the establishment of balancing capacity cooperation.

ENTSO-E has submitted two TSO proposals on capacity balancing to ACER (picture showing Ljubljana, capital of Slovenia and home of ACER)

See article on single page

Multi Regional Coupling expanded by the end of 2020

17.12.2019

The Multi Regional Coupling (MRC) of the European electricity market is to be substantially enhanced by connecting the so-called 4M Market Coupling Countries (4M MC), i.e. the Czech Republic, Hungary, Romania and Slovakia, to the Europe-wide MRC. This will establish Single Day-Ahead Coupling across 23 European countries.

In preparation for this market integration, the so-called Interim Coupling Project (DE-AT-PL-4M MC Project) was launched. It has now completed the design phase and is entering the implementation phase. This provides the Nominated Electricity Market Operators (NEMOs) and transmission system operators (TSOs) from Austria (APG), Germany (50Hertz, Amprion, TenneT, and TransnetBW), Poland (PSE) and the 4M MC countries (ČEPS, MAVIR, Transelectrica and SEPS) with a sound basis for announcing the MRC inclusion for the third quarter of 2020.

The AT-PL-4M MC Project introduces 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 competent National Regulatory Authorities (NRAs) welcome the progress made and the synergies from the project, which will facilitate the introduction of Flow-Based Market Coupling in the Core Capacity Calculation Region (Core CCR), which is the ultimate target.

The AT-PL-4M MC project for integrating Czechia, Hungary, Romania and Slovakia into MRC has entered the implementation phase.

Linkup
> See PSE press release (html)
> See SEPS press release (html)
> Open joint press release (pdf, 216.14kB)

See article on single page

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)

See article on single page

Key ENTSO-E report on regional coordination

07.11.2019

At national level, the main tasks of transmission system operators (TSOs) are the transport of electricity from producers to large consumers and distribution networks, ensuring the operational safety as well as the planning, development and modernisation of electricity grids to ensure security of supply and cost-efficiency. More recently, TSOs have also been held responsible for achieving climate and energy policy objectives. European TSOs have also long been thinking and acting across borders in an increasingly integrated energy market. To ensure safe operation at European level, national TSOs coordinate at regional and pan-European level.

The European Network of Transmission System Operators for Electricity (ENTSO-E) now has published the “Enhanced TSO Regional Coordination for Europe” report, coming with the suggestive subtitle: “Act locally, coordinate regionally, think European”. This report with a time perspective until 2030 describes the shift of the five European Regional Security Coordinators (RSCs) such as TSCNET Services to Regional Coordination Centres (RCCs) in the wake of the Clean Energy Package (CEP). It focuses on operational and market needs, without disregarding the fact that regional cooperation between TSOs goes beyond these two issues. Nevertheless, the emphasis was put on these aspects, as markets and operations are more and more converging: Electricity is traded closer to real time, markets are more volatile, generation is more variable and cross-border and long-distance transmission are increasing. For this reason, the interfaces between market and physical infrastructure require to be consolidated.

The “Enhanced TSO Regional Coordination for Europe” report contains several recommendations and a roadmap for the coordination of TSOs to continue on the path towards a future European energy system that is sustainable, socially balanced and reliable. The five standard operational services of the RSCs – Common Grid Model, Coordinated Operational Planning, Security Analysis, Outage Planning Coordination, Short- to Medium-Term Adequacy Forecast, and Coordinated Capacity Calculation – and the Service for Organisational Support – Consistency Check of TSOs’ System Defence and Restoration Plans – are to be ported from RSCs to RCCs over the next decade.

ENTSO-E has released a report on enhanced TSO regional coordination (picture: ENTSO-E)

Linkup
> See ENTSO-E press release, html
> Open Enhanced Coordination Report (pdf, 804.86kB)

See article on single page

New Nordic System Operation Agreement

04.10.2019

The five Nordic power transmission system operator (TSOs), including the Danish TSCNET shareholder Energinet, have signed a new Nordic System Operation Agreement. This agreement sets out the common operating principles of the Nordic TSOs to ensure that the Nordic interconnected system is operated reliably and efficiently in accordance with national and European regulations.

Against the background of the increasing volatility of electricity generation due to renewable energies and the reduction of balancing power generation, the Operating Agreement will further strengthen Nordic cooperation, harmonise grid operating practices between Nordic countries and within Europe, and ensure the system security of the Nordic electricity system.

The document will also contain several appendices, of which the appendix on reserves has already been concluded. The Nordic TSOs are in the process of finalising further appendices on all relevant operational issues. The new Operation Agreement will successively replace the existing one after the completion of the new appendices.

Energinet and the other four Nordic TSOs have signed a new Nordic System Operation Agreement (picture showing Copenhagen, Denmark)

Linkup
> See Energinet press release (html)
> Open Nordic System Operation Agreement (pdf, 894.16kB)

See article on single page

ENTSO-E reports on implementation of market network codes

04.09.2019

The EU network codes are a concise set of rules to promote the harmonisation of national electricity markets and regulations on the way to the European Energy Union. A fully functioning and interconnected internal energy market will strengthen Europe’s competitiveness, contribute to the integration of more renewable energies and ensure security of supply.

The network codes are divided into three families: connection, operation and market. The guidelines for Capacity Allocation and Congestion Management (CACM) and for Forward Capacity Allocation (FCA) are an integral part of the market code family. The progress made by the European transmission system operators (TSOs) in implementing these regulations is documented in two reports which have now been published by the European Network of Transmission System Operators for Electricity (ENTSO-E).

The “ENTSO-E Market Report 2019” outlines the progress in day-ahead and intraday coupling as well as in FCA, and the “ENTSO-E Report on Capacity Calculation and Allocation 2019” covers the capacity calculation in the ten capacity calculation regions (CCRs). The latter report also assesses capacity calculation and allocation based on statistical and quality indicators.

ENTSO-E has released two reports on the TSO implementation of market network codes (picture: ENTSO-E)

Linkup
> See ENTSO-E press release (html)
> Open Market Report (pdf, 2.85MB)
> Open Report on Capacity Calculation and Allocation (pdf, 2.97MB)

See article on single page

COBRAcable market launch on 7 September

02.09.2019

After three years of construction, including the laying of the submarine cables as well as the construction of two onshore converter stations, and a successful test phase earlier this year, COBRAcable will be available for the electricity market as of the delivery day of 7 September, which is exactly on schedule. The first direct connection between the electricity markets of Denmark and the Netherlands was jointly realised and is operated by the two TSCNET shareholders Energinet, the Danish transmission system operator (TSO), and TenneT, the Dutch-German TSO.

The high-voltage DC cable with a length of about 325km has a capacity of 700MW. The Netherlands can import more sustainable electricity from Denmark through COBRAcable, mainly wind energy. In addition, the cable provides Dutch capacity on a structural basis for the Danish electricity grid, thus ensuring security of supply in Denmark, which of course also works the other way round. Moreover, the cable connection is designed in such a way that an offshore wind farm can be connected at a later date, so that COBRAcable contributes to a sustainable European energy landscape.

The COBRAcable interconnector of Energinet and Tennet is available to the market from 7 September (picture: screenshot taken from TenneT-video “First pile COBRAcable”, YouTube)

Linkup
> See TenneT press release (html)

See article on single page