PENTALATERAL ENERGY FORUM An example of gov ernmental cooperation Athens Forum 25 & 26 November 2009 Hotel Divani Caravell
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PENTALATERAL ENERGY
FORUM An example of governmental
cooperation
Athens Forum25 & 26 November 2009
Hotel Divani Caravell
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PENTALATERAL ENERGY
FORUMIn a nutshell
• Context
• Mission
• Organization• Results
• Experiences
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3E²
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PENTALATERAL ENERGY
FORUMMission statement
= a temporarily, intergovernmentalinitiative, which goal is to enhance the
cooperation between all relevantparties in order to create a regional
Northwest-European electricity
market as an intermediate steptowards one common European
electricity market, …
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GAS PLATFORM
Mission statement
= a common governmental initiativeaiming to create a regional
Northwest-European gas market asan intermediate step towards one
common European gas market,
committed to work closely togetherwith all relevant parties …
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ORGANIZATION CHART
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Memorandum of Understanding
of the Pentalateral Energy
Forum
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Stepping stones to an integrated and
secure electricity marketSupport Group 1
calculation & allocation methodscalculation & allocation methodsSupport Group 2
security of supplysecurity of supply
MoU of the Pentalateral Energy Forum on Market Coupling and Security of supply
More harmonized allocation methods Gravity scale
Integrated day-ahead market:
-ATC market coupling in a first step
-Flow based market coupling in a second
step
Strenghten TSOs regional coordination
Regional System Adequacy Forecast
Regional Transmission Capacity Plan
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PENTALATERAL ENERGY
FORUMState of play• Regional electricity market (Support Group 1)
Day-ahead electricity trade : market coupling in operation
end of Q1 2010 Single auction platform for the region : newly created
common company “CASC-CWE” in operation
• Security of Supply (Support Group 2)
Short term: common understanding of emergencysituations and mitigation measures
Long term: common methodology for assessing at theregional level the needs in infrastructure & production
• Innovation / Know how Interregional approach
Coreso, Joint Security Service Center
North Sea Grid
• M&A – Tennet/Transpower (E.ON Netz)
– EPEX (EEX/Powernext)
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2008 2009 2010
December January February March April May June July August September October November December January February March
CCU : System ready for sub-integration testing
Industrialization of the algorithm
PX Trading system development ready + sub-integration testing
EPEX ready (30/09/2009) APX - BELPEX ready (31/08/2009) Sub-integration testing (28/10/2009)
28/10
Individual TSO IT
ATC System
BEC/End-process System
Communication Layer
Single procurment
Sub-integration
testing
Integration
TestSimulations
ATC-
LAUNCH01/03
Report 1 Report 2 Report 3 Report 4
Planning – ATC
26/10
PX Trading system development ready + Sub-Integration testing
APX - BELPEX ready (31/08/2009)
EPEX ready (30/09/2009)
Sub-integration testing (28/10/2009)
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2009 2010 2011
May June July AugustSeptembe
r October November
Decembe
r
Januar
y
Februar
yMarch April May June July
August
Septembe
r
Octob
er
Novembe
r December January
IntegrationTest Simulations(26/08/2010)
26/08
03/11
Preparation for
Parallel running
(03/11/2009)
Simulation Tool
FB Experimentation (31/12/2010)
FB Process
S.A.-TSO part
01/04
Local S.A.
Implementation
Ready for
Parallel Run
Ready for
Parallel Run
Flow Based Validation : Parallel Run Validation of results
29/12
Planning - Flow BasedReport 2 Report 3 Report 4 Report 5 Report 6 Report 7
1st 3 Months
Report
1st 6 Months
ReportFB - LAUNCH
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Stepping stones to an integrated and
secure gas marketWorking Group 1
facil itate cross border tradefacil itate cross border tradeWorking Group 2
improve security of supplyimprove security of supply
Priorities 2009
Regional view on allocation mechanisms Transparency on need for investments
More compatible balancing regimes Reverse flow
Develop common Open Season Procedures Supply disruption simulation
Identify differences in legal framework
Priorities 2010 - 2011
Initial discussion on Market coupling Strenghten TSOs regional coordination
More compatible transport procedures Clarify TSOs role in Security of Supply
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GAS PLATFORM
State of play• Market & Competition (Working Group 1)
Moderating thorough discussion on marketbased allocation mechanisms of gas
Political support for pilot projects
• Security of Supply (Working Group 2)
1st test of a new security of supply tool:‘Supply disruption simulation’
Identification of ‘reverse flow’ projects Analysis legal framework as input in EU
discussion
PENTALATERAL
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PENTALATERAL
COOPERATIONKey characteristics
Intergovernmental initiative (notsupranational)
Ministers directly involved
Voluntarism (no legislation)Complementary to other European initiatives
European orientation
Slender working structure
Neutral secretariat
Stakeholder approach
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PENTALATERAL
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• Political commitment crucial• Build:
– Confidence – Common language & understanding
– Some (small) working structure
• Prioritize
• Respect compentences & fill the gaps
PENTALATERAL
COOPERATIONSome experiences
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