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)

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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)

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> See TenneT press release (html)

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Regional Coordination Centre for South-East Europe

18.07.2019

The three transmission system operators (TSOs) of the South-East Europe Capacity Calculation Region (CCR) – TSCNET shareholder Transelectrica from Romania, ESO from Bulgaria and IPTO from Greece – have signed a memorandum of understanding (MoU) on establishing a Regional Coordination Centre (RCC). The memorandum emphasises the ambition of the TSOs to strengthen regional cooperation and thus contribute to the safety and efficiency of the European transmission system.

The agreement provides a cooperation framework between the three contracting parties with the common objective of finding a mutually acceptable solution for the implementation of an RCC on the principle of meeting the requirements of the Third European Energy Package and the Clean Energy for all Europeans Package as efficiently, effectively and timely as possible. The MoU sets a time frame for the core decisions. The SEE capacity calculator is to be determined as early as 4 August 2019 and the necessary documents for the founding of the RCC are to be signed by the end of the year.

The three TSOs of the South-East Europe CCR have signed a MoU on establishing an RCC (picture of the “New Europe Bridge” connecting Romania and Bulgaria across the Danube by Erich Westendarp, Pixabay).

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> See ENTSO-E press release (html)

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Imminent test operation for COBRAcable

24.06.2019

COBRAcable, the first direct interconnection between the electricity markets of Denmark and the Netherlands, is a joint project of the two TSCNET shareholders Energinet, the Danish transmission system operator (TSO), and TenneT, the Dutch-German TSO. Since spring, the partner TSOs have been preparing the commercial operation of COBRAcable. TenneT and Energinet have now launched an Urgent Market Messages (UMM) site for the commissioning of COBRAcable, which is scheduled to take place between 3 July 2019 and 6 September 2019.

A total of around 30 individual tests with different energy charges in the respective transport directions are planned. It is expected that the full capacity of COBRAcable will be available for the day ahead and intraday markets from 7 September. TenneT and Energinet then will offer financial transmission rights on COBRAcable at monthly and annual auctions. The first auction is expected to take place after a full month of stable operation, so probably the auction for November 2019, which will be held in October.

By promoting the exchange of surplus wind energy, COBRAcable will improve the cohesion of the European transmission system and the integration of the electricity market. It will also make a sustainable contribution to the low carbon energy future by allowing future offshore wind farms in the North Sea to be hooked up to the DC interconnector.

Energinet and Tennet will carry out individual tests of COBRAcable as of 3 July (picture: screenshot taken from TenneT video “COBRAcable Cable Pull Fano Denmark Film”, YouTube)

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> See Energinet press release (html)
> Visit REMIT UMM site (html)

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Second go-live wave of XBID

13.06.2019

The successful go-live of XBID, the European cross-border Single Intraday Coupling (SIDC) solution, on 12/13 June 2018 was a significant step towards a single integrated continent-wide intraday market. Such an integrated market increases the overall efficiency of intraday trade through effective competition, increased liquidity and more efficient utilisation of generation resources across Europe. Today the first anniversary of XBID is celebrated and over 16 million trades have been executed since its launch.

The SIDC partners look back on a successful first year of operation with a stable and robust system performance as well as a high and growing number of trades across Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain, and Sweden. The integration of seven additional countries into the SIDC region is expected in the fourth quarter of 2019. A pre-launch event for the second wave is planned for the beginning of October 2019 and a trial period will also be arranged with the market parties. The countries for this second go-live wave are Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovenia.

The TSOs already cooperating in XBID include the TSCNET shareholders 50Hertz, Amprion, APG, TenneT, and TransnetBW as well as the TSCNET client Creos from Luxembourg. Further shareholders are to follow with the second wave, namely ČEPS, ELES, HOPS, MAVIR, PSE, and Transelectrica.

XBID, the SIDC solution for a single integrated European intraday market, celebrates its first anniversary

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> See ENTSO-E press release (html)

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Agreement on synchronous interconnection

01.06.2019

There are five synchronous electricity areas in Europe: Continental Europe (CE), Nordic, Baltic, British and finally the area of Ireland and Northern Ireland. The CE area with the synchronised transmission grids of 26 countries is not only the largest in Europe, but also one of the largest interconnected power systems worldwide. The synchronisation of the Baltic area with CE is of strategic importance for the European Energy Union, one of the political priorities of the European Commission. Currently, the Baltic system is only asynchronously linked to CE between Lithuania and Poland through the “LitPol Link” and at two points to the Nordic region.

An application for a future synchronisation of the Baltic and CE systems was made by the three Baltic transmission system operators (TSOs) Elering, AST and Litgrid with support from TSCNET shareholder PSE, the Polish TSO. The European Network of Transmission System Operators (ENTSO-E) has now announced the first landmark for the project: An agreement on the conditions for a synchronous interconnection became effective on 27 May 2019. Synchronisation will enable the Baltic TSOs to operate their systems in the future at the same frequency as the CE system and in compliance with EU rules.

An agreement on the conditions for synchronous interconnection of the Baltic and CE energy systems has entered into force (picture of Riga by Aleksejs Bergmanis / Pixabay)

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> See ENTSO-E press release (html)

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EU Parliament approves “Clean Energy Package”

27.03.2019

On 26 March 2019, the Members of the European Parliament adopted four new laws on the EU electricity market, which were agreed informally with EU ministers at the end of 2018. In detail, these are the new Electricity Market Regulation and Electricity Market Directive as well as the Regulations on Risk Preparedness and the Agency for the Cooperation of Energy Regulators (ACER). This concludes the “Clean Energy for All Europeans Package” (CEP). The agreements now need to be formally approved by the EU ministers and published in the EU Official Journal before they can enter into force.

The overall objective of the CEP is to create a Europe-wide market for electricity that is cleaner, more competitive and more risk-adjusted. One of the more specific targets is to freely distribute at least 70% of trading capacity across borders from 2020 on in order to facilitate trade in renewable energy across EU borders and thus support the efforts to meet the EU’s binding target of 32% renewable energy by 2030 and to fulfil the obligations of the Paris Agreement. The regulation on ACER implies that the Agency will be given more tasks and powers.

The European Parliament adopts the last four CEP regulations (photo of the European Parliament: Leonardo1982/Pixabay)

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EC calls for further PCIs

22.03.2019

Under the “Connecting Europe Facility” (CEF) Energy Work Programme, the European Commission (EC) is providing a further €750m to finance Projects of Common Interest (PCIs) in the energy sector, which of course includes electricity and smart grid projects. In addition to the objective of increasing competitiveness, the EC aims to promote pan-European security of supply and sustainable, environment-friendly grid development.

Since 20 March, the EC is calling for proposals for projects focusing, for example, on market integration, interoperability of networks across borders, integration of renewable energies or the elimination of bottlenecks as well as energy isolation. The deadline for project submissions is 13 June 2019, and a virtual information day for all interested parties will be held on 19 April.

In the framework of the CEF programme, the EC calls for proposals for PCIs contributing to the objectives of the European Energy Union (picture: EC-Audiovisual Service / Etienne Ansotte)

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> See EC press release (html, with access to all the relevant documents)

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New syllabus for network codes

12.03.2019

The EU electricity network codes and guidelines are a detailed set of rules to promote the harmonisation of national electricity markets and regulations on the way to the European Energy Union. By the end of 2017, a total of eight network codes and guidelines have been implemented: three grid connection codes, three market codes and two operation codes. In order to raise awareness of these innovative pan-European rules for a more sustainable, reliable and interconnected power system and to better involve market participants in the code contents and their implementation, the Florence School of Regulation (FSR) has published a new syllabus as part of its online training on European network codes.

The online course partners of the FSR are those institutions that have developed the codes: the European Network of Transmission System Operators for Electricity (ENTSO-E), the European Agency for Cooperation of Energy Regulators (ACER) and the European Commission. The new manual deals mainly with market codes and discusses, for instance, the different European electricity markets and their establishment in the national context as well as their integration. Also, two connection codes are described and their technical requirements clarified. The syllabus is also a beneficial addition to ENTSO-E’s e-codes application for smartphones.

The FSR has published a new syllabus on the European electricity network codes (picture: photomontage using an illustration by the European Union / EC – Audiovisual Service)

Linkup
> See ENTSO-E press release (html)
> Visit Network codes syllabus website of the European University Institute (html, with access to download)

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Kick-off for Croatian-Serbian-Bulgarian market integration

28.02.2019

A first group meeting in the Serbian capital of Belgrade was the initiation of the trilateral market coupling between Croatia, Serbia, and Bulgaria. The successful event was attended by representatives of the three national transmission system operators (TSOs), including the Croatian TSCNET shareholder HOPS, and the three respective electricity exchanges as well as regulatory authorities.

Together, the parties involved have committed themselves to make every effort and providing the necessary resources to ensure the feasibility of the project and its timely implementation. The final objective is to establish a trilateral market coupling according to the European Multi-Regional Coupling (MRC) specifications.

The Croatian-Serbian-Bulgarian market coupling was initiated by a first meeting of the main stakeholders (photo of Belgrade: falco/Pixabay)

Linkup
> See HOPS press release, in Croatian (html)

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