1 Lithuanian PX Lithuanian PX Giedrius Radvila AB “LIETUVOS ENERGIJA” 2009-09-16 Minifora Vilnius
Feb 03, 2016
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Lithuanian PXLithuanian PX
Giedrius Radvila
AB “LIETUVOS ENERGIJA” 2009-09-16
MiniforaVilnius
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Is there a need for a changeIs there a need for a change? ?
?APX UK
OMEL
Powernext
Opcom
GME
NORD POOL PX
Gielda Energi
EEX
APX
BelpxOTE
EXAASouth Pool
PXE
NORD POOL PX
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Issues that need to be Issues that need to be addressedaddressed
Closure of second unit of Ignalina NPP
Exporting system becomes importing
Diversification of fuel for electricity production in Baltic states
Projects of new interconnections
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Background for changesBackground for changes
2008 Cooperation agreement between NPS and Lietuvos energija – Planning of establishment of Estlink price area.
Joint declaration of the prime ministers council of the Baltic (27th April 2009)
Memorandum of understanding of the Baltic energy market interconnection plan (17th June 2009)
Baltic energy market interconnection plan (17th June 2009)
LV, LT, SW memorandum of understanding (9th July 2009)
Lithuanian electricity expansion plan (8th of July 2009)
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Lithuanian electricity market Lithuanian electricity market expansion planexpansion plan
http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=349252&p_query=&p_tr2=
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Goals of market development Goals of market development
To improve conditions for consumers to choose or change supplier without any barriers;
To stipulate competition among generators, importers and suppliers;
To remove barriers for the trade with parties from EU;
To set transparent conditions for the trade of electricity imported from non EU countries;
To develop transparent electricity market organization and surveillance based on Nord Pool Spot principles.
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ChangesChanges
Generators
Transmission grid
Distributiongrid
Consumers
PX, Wholesale market
Suppliers
Source: Svenska Kraftnät
Transparent transportation of
electricity.
Organization of trade at PX based on Nord Pool Spot
principles. Goal – determinemarket price of electricity
Unfettered bilateral trade with EU countries,
transparently regulated trade with non EU countries
The support of generators does not
distort electricity price s and does not create barriers for electricity
market operation.
Regulated tariffs applicable only for
household consumers and small commercial
consumers.
Ability to choose supplier, which offers best price and make an agreement for
the electricity provision.
Hourly trade and balance responsibility
Support of effective co-generation and renewable energy
generation
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Changes of electricity market Changes of electricity market from 1from 1stst January 2010 January 2010
Implementation of Nord Pool Spot (NPS) principles for wholesale trade organization. Price formation principle - marginal price setting. Trading platform for anonymously trading at auction until 2011. Hourly trading and balancing responsibility applied for all market participants. Unfettered trade with EU countries; Transparent and competition ensuring tariffs for electricity market and transmission grid entrance, clear regulation and control towards electricity produced and imported from non-EU countries. Implemented non discriminatory and transparent principles of electricity transportation. Securing independency of TSO according EU regulation.
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Application of regulated Application of regulated tariffstariffs
Starting from 1st of January 2010, regulated tariffs is going to be abolished for the consumption totaling 35% of Lithuanian demand.
Gradual increase of a share of consumers with non-regulated tariffs: Starting January 1st, 2011 - 45 % Starting January 1st, 2012 - 55 % Starting January 1st, 2013 – regulated tariffs are applied only for the household consumers. Starting January 1st, 2015 for all consumers (except the guaranteed tariffs for the consumer groups designated by EU regulations)
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ChangesChangesRestructuring Lietuvos energija ABRestructuring Lietuvos energija AB
Lietuvos energija ABTSO functionsMarket operator functionsImport/ExportOperation of power production (KHPSPP, KHPP)
TSO ABTSO functionsMarket operator functions
Lietuvos energija ABImport/ExportOperation of power production (KHPSPP, KHPP)
Independent supplier ABTrade of electricity
Lietuvos energija ABImport/Export, Holding company
Independent supplier ABTrade of electricity
TSO ABTSO functionsMarket operator functions
Kruonis HPSPPand Kaunas HPPPower production
MO ABMarket operator functions
Lietuvos energija ABImport/ExportHolding company
Kruonis HPSPPand Kaunas HPPPower production
TSO AB(ISO)TSO functions
Tod
ay
Un
til 2
01
02
01
02
01
1
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ChangesChangesAuctioningAuctioning
PXProducers LT
Suplaer4
ConsumersConsumers
Import/Export
Suplaer3Suplaer2Suplaer1
BP..NBP1
Producers LT
ConsumersConsumers
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Marginal price for all transactionsat auction, €/MWh
ChangesChangesPrice formationPrice formation
Demand
Supply
Price, €/MWh
Volume, MWh
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ChangesChangesGate closureGate closure
Physical electricity market
Day ahead auction
Announcement of transmission capacities by TSO
Regulation/Balancing
1 day before operation day
13:00gate closure
Operationhour
13:00-16:00 submission of regulation power bids to TSO
1 hours before operation hour
correction of regulation power bids volumes and prices
balancesettlement
Operation day (physical delivery)
until 13:00 market participants must submit bids and offers
10:00
10:00Start of DAM
trade
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ChangesChangesCooperation with Nord Pool SpotCooperation with Nord Pool Spot
NPSMOTSO
Service Level Agreement
2009-05-05 Prefeasibility study by Nord Pool Consulting. 2009-06-06 Seminar by NPC on proposals for Lithuanian DAM 2009-06-23 – 2009-08-28 Negotiations with Nord Pool Spot 2009-08-28 Letter of Intent was signed.
No.73/2009 Nord Pool Spot will deliver the technical solution for new Lithuanian market place Nord Pool Spot AS and Lietuvos Energija AB today announced that they have signed a Letter of Intent to implement a new market model for the Lithuanian electricity market. In the future the Lithuanian market will be based on the same principles as the Nordic power market,where price and flow are calculated at the same time to increase market efficiency (implicit auction). The partiesaim to establish a service contract where Nord Pool Spot will provide the systems and services from the Nordic market to the Lithuanian market place.The technical solution will be ready prior to 1 January 2010, when the new market model is scheduled to start operating in Lithuania. Lysaker, 28 August 2009.
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Towards an integrated Towards an integrated marketmarket
NO
RD
PO
OL P
X
Polish PXGielda Energii
2009
Isolated Baltic electricity market.
NO
RD
PO
OL P
X
Polish PXGielda Energii
Common Baltic electricity market
Baltic electricity market integration
Polish PXGielda Energii
Estlink IIEstlink I
Swedish-Baltic link
LitPollink
2014 - 2015
Integration of Baltic electricity market into the Nordic and continental Europe
electricity markets.
Implementation of projects of new interconnections.
Estlink I
Estlink I
2010-2013
Creation of common Baltic’s electricity market based on Nordic
electricity market organization principles and gradual abolishment of regulated tariffs for consumers
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Thank you.
Questions?