4th CSE ERI Stakeholders Group meeting Overview of the regional work programme towards 2014 AEEG – European regulatory affairs 15 maggio 2012 At a cornerpoint • The CACM NC preparation is marking an important step towards a common set of binding rules towards the implementation of the target model • Nevertheless the voluntary approach is going to keep a fundamental role in the coming months/years • Role of the stakeholders in identifying key development areas • A region at the border of the main ongoing integration processes (NWE): what role, what inputs to the creation of the IEM? Autorità per l’energia elettrica e il gas 2 Long term timeframe • The subject is already considered as “crossregional” • In line with the workprogramme: from 2011 a single set of auction rules almost harmonized between CSE and CWE regions • Single auction office for the 2 regions • Still significant differences exist in the 2 regions (products, firmness management) mainly deriving from the different ways in which capacity is calculated (top-down vs bottom-up approach). Autorità per l’energia elettrica e il gas 3 Long term timeframe /2 • Harmonization of capacity calculation method is perceived of special importance to improve also auction rules harmonization; • The CSE region has played an important role in PTR allocations, what about FTR? • The WP foresees a decision towards FTR already in 2012 (roadmap towards implementation in 2014) (too early?) anyway important local experiences (Italian market already uses FTRs) could be helpful also at a cross-regional level. Autorità per l’energia elettrica e il gas 4 Long term timeframe /stakeholders’ views • CASC operation: any comment / suggestion? • FTR role in the region: when should discussion be started what involvement for the stakeholders? • Products definition and duration: any comment/suggestion? Autorità per l’energia elettrica e il gas 5 Day ahead timeframe • The workprogramme foresees a gradual adotpion of the PCR algorithm (once developed and validated) in the markets of the region • 2012 and 2013 to adapt local market arrengements hampering the integration with European coupling • Implementation of price coupling in the region by beginning of 2014 Autorità per l’energia elettrica e il gas 6 Intraday timeframe • The workprogramme foresees the implementation of the first interim solution by April 2012 (little delay) • Development of a roadmap towards the target solution to be approved by regulators by Q4 2012 • Go Live of the target solution by the end of 2014 Autorità per l’energia elettrica e il gas 7 Intraday timeframe /potential obstacles • TSOs invited to work – in coordination with PXs – on the roadmap towards the target model; • The implementation of the target solution is not so smooth also in more advanced regions (NWE) where different solutions are being tested in different borders • The cohexistence of continuous trading and auctions represents an additional constraint for our region, but a joint working group already established to study pilot solutions on selected borders Autorità per l’energia elettrica e il gas 8 Balancing • WP foresees first possible solutions to be adopted from 2013 on selected borders • The increasing amount of RE generation capacity in the region may represent a driver for exchange of balancing energy • It will be important to go hand in hand with the development of the future NC on balancing Autorità per l’energia elettrica e il gas 9 Capacity calculation • The current WP foresees a possible revision of the product definitions so to allow offering capacity with a higher level of firmness • Work on FB to be started in 2013 • What about the CWE and CEE experiences? • The regional dimension is extremely important also for the CACM NC, but what is the ideal regional scope for activities linked to FB calculation Autorità per l’energia elettrica e il gas 10 Prioritization • Could it be considered a feasible approach to define prioritization criteria on the different topics so to concentrate the efforts on selected issues? • What are the stakeholders’ views? Autorità per l’energia elettrica e il gas 11