The document summarizes presentations made at a stakeholders' day on European Network Codes. It includes quotes from the European Commissioner for Energy emphasizing the importance of network codes for enabling wholesale electricity markets. Presentations were given on connection codes, operational codes, and market-related codes being developed at the European level. Another presentation provided an update on plans for integrated day-ahead price coupling in Northwestern Europe and the transition to a flow-based capacity allocation method for cross-border trading in the Central Western Europe region.

1. European Network Codes
Pascale Fonck - ELIA
Frank Wellens - ELIA
Wim Michiels - ELIA
Emeline Spire - ELIA
22/11/2013
Stakeholders' Day

2. Quote
« First and foremost in the extremely technical work of drafting
network codes. This is very much work in progress, but it is
very simple: without the TSOs no network codes, and without
network codes, no functioning wholesale markets”.
(Günther Oettinger, European Commissioner for Energy at the
Florence Forum on 24 September 2013)
22/11/2013
Stakeholders' Day
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3. Connection codes
Frank Wellens
• Requirements for Generators
• Demand Connection Code
• High Voltage Direct Current
Further explanations on
http://networkcodes.entsoe.eu
22/11/2013
Stakeholders' Day
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4. Operational Codes
Wim Michiels
• Operational security
• Operational planning & scheduling
• Load Frequency Control and Reserves
Further explanations on
http://networkcodes.entsoe.eu
22/11/2013
Stakeholders' Day
4

5. Market-related codes
Emeline Spire
• Electricity Balancing
• Capacity Allocation and Congestion Management
• Forward Capacity Allocation
Further explanations on
http://networkcodes.entsoe.eu
22/11/2013
Stakeholders' Day
5

6. European Market Evolution
Pascale Fonck
European Market Integration - ELIA
22/11/2013
Stakeholders' Day

7. NWE Day-Ahead Price Coupling
AS IS
- Two separate Market Couplings (CWE & Nordic) linked by
a volume coupling (ITVC organised by EMCC)
- Sequential calculation approach
- No common algorithm applied
TO BE
- Full coupling with GB
- One single price coupling based on a single calculation
- One single common algorithm EUPHEMIA
- First implementation of PCR solution
(PCR = Price Coupling of Regions)
22/11/2013
Stakeholders' Day
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8. NWE Day-Ahead Price Coupling – Status
- All NWE procedures were established in close cooperation with the PCR project
and the regional projects.
- Partial coupling scenarios were introduced to allow as many as possible borders
and interconnectors to remain coupled in case an issue occurs in NWE.
- The Day-ahead Operational Contract between all the parties was agreed upon
and the signing process is ongoing. Regional and local agreements are about to
be finished and signed
- Market participants were informed and prepared via 2 fora and through the NWE
member test, which was successfully performed in October.
- The project is now in the last stages and final versions of IT- systems are
delivered requesting one more round of testing to assure stability.
Target launch date NWE DA Market Coupling:
February 4, 2014
(to be confirmed before Christmas)
22/11/2013
Stakeholders' Day
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9. CWE Flow Based Market Coupling - Project Status
Parallel run results
- Parallel run (more than 10 months): increased welfare and improved price
convergence
- Approval package sent to regulators
- Engagement with Market Parties based on the outcomes of the Public
Consultation
- Go Live foreseen end of June 2014 subject to external dependencies
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10. CWE Flow-Based market Coupling - Project Status
Next steps
- Moving from ATC to Flow Based is a paradigm shift
both for market parties and TSO operators which
must be carefully managed
- Project Partners’ objective for the coming months is to progress on the
following key topics:
– Robustness: shift to the industrialized IT tool, improve operators’ experience
– Transparency: provide MPs with appropriate capacity calculation inputs for price
predictability => Bilateral meetings with MPs in order to better understand their concrete
needs
– FB vs. FB Intuitive: in cooperation with NRAs, the Project aims at a clear proposal to MPs
– Operational process and timings: Fallback and Rollback decisions and procedures;
timing for daily publications
– Smooth transition between ATC based processes (yearly/monthly auctions, Intraday) and
FB daily process
22/11/2013
Stakeholders' Day
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11. CWE Flow-Based Market Coupling
Please consult the poster session at lunch time
Elia and Belpex experts on flow-based market coupling
will be happy to answer your questions
22/11/2013
Stakeholders' Day
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12. Intraday capacity allocation
22/11/2013
Stakeholders' Day

13. SCOPE
Target Model for intraday timeframe
= a continuous implicit cross-border trading mechanism
22/11/2013
Stakeholders' Day
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14. Geographical scope
22/11/2013
Stakeholders' Day
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15. Innovation@Elia
Hubert Lemmens
Innovation & Knowledge Management - ELIA
22/11/2013
Stakeholders' Day

16. Lunch
22/11/2013
Stakeholders' Day