E07-PC-21: Electricity Regional Initiative Convergence
On 20th July 2007 ERGEG launched a Public Consultation Paper on ERI Coherence and Convergence.The paper makes a first assessment of how priorities and solutions adopted in each of the ERGEG ERI regions can be seen as coherent with each other and thus potentially enable convergence to the single market.
The purpose of this paper is to highlight market integration topics that, if not treated in a coherent manner in each region, have the greatest potential impact on the formation of the single market. It compares and contrasts priorities and solutions for these topics in each region. Moreover, the report considers topics that have been treated at the EU level by making a first assessment of whether issues that have an EU dimension are or are not being reopened or reinterpreted at the regional level. Issues here include Congestion Management Guidelines, balancing market integration and transparency. ERGEG seeks stakeholders’ views on the following conclusions of the report:
- Capacity calculation methods – issues here arise around ways of jointly and simultaneously calculating capacity across borders and regions. The use of load flow based methods and the specification of common grid models will need to be appropriately coordinated
- Capacity allocation (long and medium term) – issues mainly associated with functioning and interaction of explicit auctions. Hence harmonization of auction rules and compatibility of different auction methods between regions will require attention going forward.
- Day ahead - most regions are developing implicit day ahead auctions.In principle these are compatible but care is needed in terms of the detailed design and implementation (e.g. gate closure times, role of power exchanges) in order that regions are compatible.
- Intra-day – issues include the extent to which continuous trading platforms can or should be extended across national markets and regions.
- Balancing – further integration of balancing markets is being pursued, and points to the desirability of using common platforms. Experience from the Nordic market suggests that large benefits can be reaped from a stepwise approach
- Transparency issues include the need to address this issue in all regions simultaneously, and to apply guidelines for good practice on a consistent basis
- Governance issues, regulatory and legal framework – issues include how regional approaches are or can be overseen on a common basis, particularly regarding coordination of regulatory action and competences, common auction offices and power exchanges administrating implicit auctions. This topic needs to be addressed in more regions and at an EU level.
ERGEG invites all interested parties to comment on the understanding and issues raises in this paper. Any comments should be received by 12th October 2007 and should be sent by email to email@example.com
Following the end of the public consultation period, ERGEG will publish all comments received from stakeholders. Any respondents wishing ERGEG to treat its contribution as confidential should clearly state this in their reply and endeavour to give any confidential material in annexes that can be separated from publishable non-confidential material.
Any question to this document should in the first instance be directed to:
Mrs Fay Geitona
Tel. +32 2 788 73 30
Fax +32 2 788 73 50