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The North West European Market Parties Platform
Eric van Vliet, Stephan Krieger, Hans ten Berge
Mini Forum of the Central West Electricity Regional Energy Market
20 June 2006
Organisation des Entreprises d’Electricité
Du Luxembourg
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Organisation des Entreprises d’Electricité Du
Luxembourg
The NWE market
Organisation des Entreprises d’Electricité
Du Luxembourg
and the market parties’ associations
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Organisation des Entreprises d’Electricité Du
Luxembourg
Aims of cross border co-operation
• Increase public confidence in the energy market
• Create a trustworthy market• Attract new market players (e.g. financial
institutions)• Take the initiative in market design• Avoid additional regulation• Increase market efficiency through regional
integration
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Organisation des Entreprises d’Electricité Du
Luxembourg
• Started in February 2006• Constructive discussions resulted in joint
positions and actions• Strong link with Eurelectric work
• Guideline is the road map to a pan European electricity market
• Involvement in pentalateral energy forum• Letter to the ministers has been sent
• Preparation of the mini forum• Under Eurelectric umbrella
Status and developments
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Organisation des Entreprises d’Electricité Du
Luxembourg
NWE market issues from market parties perspective
• Short term (2006)• Transparency • Intra day markets• Secondary markets on transmission rights
• Longer term (agenda 2007)• Addressing regulation and investments in
interconnection development• Cross border balancing• Market functioning
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Organisation des Entreprises d’Electricité Du
Luxembourg
Transparency
Inventory example
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Organisation des Entreprises d’Electricité Du
Luxembourg
Transparency implementation
• Aim is to implement the approved Eurelectric package
• Market parties focus on implementation of items they can influence (generation data)
• Transparency action plan:• Creating a level playing field by implementing
publication analogue to the EEX format in all 5 countries by Q4 2006
• Implementation of Eurelectric proposal by Q2 2007 at the latest
• Further work on definitions has to be carried out
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Organisation des Entreprises d’Electricité Du
Luxembourg
Intra-day markets
• Harmonisation between TSO’s• Time schedules• Capacity allocation• IT systems
• Proposal for a continuous cross border intra-day platform
• Requirements for the set up in the NWE market for all stakeholders
• Optional step wise approach to keep confidence in the system and gradually allocate more capacity
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Organisation des Entreprises d’Electricité Du
Luxembourg
Secondary market for capacity rights
• Improve firmness and maximisation of allocated capacity
• Based on a “use it or sell it principle”• Strong support from TSOs is needed
• Single platform• Administration of deals• Settlement
• Combine best practices of existing models
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Organisation des Entreprises d’Electricité Du
Luxembourg
Next steps
• Implementing transparency proposal according to the action plan timeline
• Offering guidance from market players for market design
• Offering help to overcome obstacles• Start working on the “long term” issues
