The european energy policy the role of ENTSO-E and of TSOs
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The european energy policy the role of ENTSO-E and of TSOs
- 1. THE EUROPEAN ENERGY MARKET AND THE ROLE OF ENTSO-E & TRANSMISSION SYSTEM OPERATORS
- 2. The Energy Trilemma Competitiveness Security of Supply Climate Change Delivering policies solving the energy Trilemma is one of the most difficult challenges governments and industry have to face.
- 3. Energy Union is set up to solve the trilemma The TSOs …are instrumental to enable the energy transition The Energy Union …is Europe's answer to solving the energy Trilemma, and to deliver the necessary transformation of the energy system
- 4. The 2030 EU Council Targets and the Electricity Transmission System 10% by 2020 15% by 2030 Interconnection target IMPORTANT regional differences & needs must be considered About 45% of RES generation in the electricity transmission system +27% energy efficiency -40% CO2 emissions 27% Renewable Energy Sources
- 5. Structure of the EU electricity markets Production Transmission Distribution Sales Wholesale Open to competition Natural monopolies ENTSO-E represents transmission system operators at EU level
- 6. Ten-Year Network Development Plans Network Codes development and implementation Regional cooperation and Adequacy forecast Market transparency platform ENTSO-E’s main tasks
- 7. What is a Network Code? A set of rules applying to one aspect of the energy sector Which are developed by ACER, ENTSO-E & stakeholders And become legally binding after the Comitology process Hence they will have the same status as any other Regulation
- 8. 3Connection Network Codes 3Market Network Codes 4Operational Network Codes set requirements for: - Generators - Demand-side - HVDC connections set market rules for: - Day ahead/intraday & Capacity calculation - Long-term timeframes - System balancing set common rules for: - Assessing adequacy - Planning outages - System security - Emergency situations Internal Electricity Market … day-ahead market coupling… …paving the way for offshore wind… …regional security coordination initiatives… Network Codes: the Foundations of the EU internal electricity market
- 9. A Complex, Interlinked, and Strong Regulatory Environment Network Codes ID DA/ID link to Governance guideline DA CC All market codes link to transparency regulation FCA FCA Linked to MIFID EB DCC Both linked to energy efficiency directive RfG All connection codes linked to existing standards HVDC Linked to smart grid initiatives through DSR All connection codes link to EB All connection codes link to OS CC link to OS/OPS due to CGM LFCR closely linked to EB OS OPS EP LFCR LFCR/OS closely linked DA Stakeholders Industry associations Market participants Consumers Power exchanges Regulators Bottom-up collaborative process
- 10. TYNDP: Network Investments for the 2020 and 2030 Targets
- 11. Investment in European Infrastructure €150 bn towards 2030 20 % CO2 reduction in the power sector 60 % of total consumption covered by RES Power price reduction 2 and 5 €/MWh Ten-Year Network Development Plan • 25 000 km DC lines/cables • 30 000 km AC lines
- 12. Energy Region”s: The Regional Security Coordination Initiatives (RSCIs)
- 13. The Central Information Transparency Platform *live as of 5 January 2015* Commission Regulation 543/2013: Need for transparency in electricity markets Central Information Transparency Platform provides data on: •Load •Generation •Transmission •Outages •Balancing •Congestion management Transparency Platform: https://transparency. entsoe.eu/
Editor's Notes
- Top Down approach: Network Codes Buttom Up approach: Early implementation projects
- Like a honeycomb, Network Codes are complex, closely linked to each other, but they are creating a strong, efficient and resilient system. Changes to one single code affect the entire system of network codes. Like a honeycomb, Network Codes are built on, and related to existing foundations : energy efficiency, smart grid initiative, existing standards, transparency regulations… Like a honeycomb, creating the NC requires close and complex collaboration between many entities. EC defines priorities, ACER delivers the guidelines, ENTSO-E drafts, EC leads the project through Comitology; EP and Council scritinise. The bottom-up process makes extensive use of all industry stakeholders’ collaboration.
- The Transparency Regulation is a mandate for EU member states and countries under the European Economic Area agreement and adopted by the Energy Community The EU is composed of 28 EU Member States, As you know, the EU law applies everywhere on the “EU territory”. The EU Regulations, such as the Transparency Regulation, do not need to be implemented in national legislation; The EFTA (European Free Trade Association) is composed of Norway, Iceland, Lichtenstein, and Switzerland. The EFTA is associated to the EU via the EEA agreement (European Economic Area agreement). The EEA agreement foresees a mechanism by which all the EU legislation on the internal market, so including the transparency regulation, also becomes applicable in the Norway, Iceland and Lichtenstein. (This is called a mechanism of “faxed democracy” as these countries are “faxed” their legislation from BXL). The legislation is generally adopted in this countries with only a small delay and with small adaptations where necessary. (NB: Switzerland did not ratified the EEA agreement and is thus out of this mechanism. Switzerland got bilateral agreements with the EU) The Energy Community is composed of the EU member states and of Albania, Bosnia and Herzegovina, Croatia (soon EU member), Montenegro, Macedonia, Serbia, Moldova, Ukraine and Kosovo (UNMIK). Those states are linked via the Energy Community Treaty which functions a bit like the EEA agreement, i.e. the legislation is faxed from Brussels to this states. This covers not all EU legislation but most parts of EU law on energy, environment and competition law. The Third Energy Package has been adopted in the Energy Community and so should be the Transparency Regulation soon after its adoption.