WB6 - Electricity Market Transition and Priority Infrastructure

Transcription

1 WB6 - Electricity Market Transitin and Pririty Infrastructure 11 th SE Eurpe Energy Dialgue Thessalniki, 27 June 2018 Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June 2018

2 WB6 market 2.5% f EU cnsumptin The smallest WB6 market alne is 0.1% f EU cnsumptin N effective market cupling Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

3 WB6 electricity prductin capacity (2016) Dminated by cal-fired (lignite) and large hydr generatin Hydr small 2,82% Other RES 0,63% Aged and bslete Huge investments needed t cmply with envirnmental standards Thermal cal-fired 47,26% Lignite remains the fuel f chice in mst f the energy strategies Hydr large 44,07% Penetratin f RES prductin is still marginal (3.5%) Thermal gas/il fired 5,21% Surce: Energy Cmmunity Annual reprt Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

4 WB6 grss electricity balance ( ) TWh Prductin Cnsumptin The regin is basically net electricity imprter Surce: Energy Cmmunity Annual reprts GWh Albania Net imprts / exprts ( ) Bsnia and Herzegvina Ksv* FYR f Macednia Mntenegr Serbia WB6 Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

5 WB6 Generatin adequacy Winter 2017 / 2018 Summer 2018 Surce: ENTSO-E Outlk Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

6 WB6 retail market (2016) Supply t active eligible custmers ( ) 50% Eligible custmers 76% Active eligible custmers 1.7% 40% 30% 20% 10% Ttal number f custmers: 7,97 millin 0% Albania Bsnia and Herzegvina Ksv* FYR f Macednia Mntenegr Serbia WB6 Surce: Energy Cmmunity Annual reprts Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

7 WB6 market a drp in the cean Multi-Reginal Cupling 19 EU MSs 85% f EU cnsumptin Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

8 MRC - PX trading vlumes (TWh) Bth DA and ID traded quantities are rising Diversity acrss the Regin Nrd Pl EPEX OMIE GME Surce: PX Annual reprts Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

9 Day-ahead markets in Suth-East Eurpe expansin (2016) IBEX 19 Jan 2016 CROPEX 10 Feb 2016 SEEPEX 17 Feb 2016 MEPX 21 June 2017 (cmpany established) Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

10 Day-ahead markets in Suth-East Eurpe price cnvergence (2017) Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

11 Day-ahead markets in Suth-East Eurpe market cupling (2018) Cratia - Slvenia Serbia 4 MMC 19 June 2018 MRC MC Pending since June 2016 Bulgaria FYR f Macednia MU (WB6 initiative) Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June

12 A driver fr Market Cupling Berlin prcess Plitical cmmitment t imprve cnnectivity in Western Balkans WB6 MU n reginal electricity market develpment WB6 and 15 EU MSs signatries Grant Cntract EU-ECS Financial supprt t cnnectivity measures EUR 1 mill. Facilitating, mnitring and reprting Energy Cmmunity Secretariat Western Balkans 6 Initiative Thessalniki, 27 June

13 Set-up fr an Organised Day-ahead market in Mntenegr Reality check: Pwer exchange cmpany t be peratinal by 1 Octber 2016, strategic partnership t be established by 1 Nvember 2016 Aug 2017 WB6 TA May 2018 Q Q1/Q BELEN established Limited liability cmpany with the task t establish a pwer exchange in MNE Sharehlders: the market peratr COTEE, the TSO CGES and the incumbent utility EPCG Prcedure f selectin f strategic partner launched BELEN sent Request fr Infrmatin (RFI) t ptential bid prviders WB6 Technical Assistance fr: Evaluatin f pssible mdels f strategic partnership, Strategic partnership t be established G-live f DAM Depends n the agreement with a strategic partner Draft cnditins and prcedures fr selectin f a strategic partner, Draft tender dcuments Thessalniki, 27 June

14 Set-up fr an Organised Day-ahead market in Albania Reality check: The pwer exchange was t be fully peratinal as f 1 January 2018 Feb 2018 CM in drafting July 2018 T-ds H PSL Amended Market peratr respnsible fr rganizatin and peratin f DAM (Albanian Pwer Exchange (APEX)) Market peratr t be established as a jint stck cmpany (n new deadline defined) Cuncil f Ministers (CM) decisin t be adpted CM t define: The establishment, legal frm and sharehlders structure f the market peratr The prcedures fr the selectin f sharehlders (TSOs, IFIs and experienced internatinal MOs) and specific criteria they shall cmply with In March, OST invited TSOs f Ksv*, FYR f Macednia and Mntenegr t jin T-ds: G-live f DAM Selectin f sharehlders Establishment f market peratr Selectin f service prvider Implementatin f DAM, C&S functins Thessalniki, 27 June

15 Set-up fr an Organised Day-ahead market in FYR f Macednia WB6 Technical assistance t the establishment f DAM finalized prpsed radmap: May 2018 Aug 2018 Nv 2018 H1 2020* Energy Law adpted Gvernment may decide, upn prpsal f the NRA, and after btaining an pinin f TSO, t appint MO as an peratr f an rganised market r t launch a tender MO t be spun ut f TSO The Energy Law defines a deadline f three mnths upn adptin f the Law Gvernment decree n rganized electricity market The Energy Law defines a deadline f six mnths upn adptin f the Law G-live f DAM *Based n the actin plan prpsed by the cnsultant under the WB6 Technical assistance t the establishment f DAM WB6 Technical assistance t the establishment f DAM- Recmmendatins: The PX shuld be small, with a thin cmpany structure, with dmestic institutinal wnership withut freign capital interest (at establishment) and with a cst effective service prvider Thessalniki, 27 June

16 Set-up fr an Organised Day-ahead market in Bsnia and Herzegvina Reality check: The State Law n Regulatr, Transmissin and Pwer Market drafted in 2016, still nt adpted WB6 Technical assistance t the establishment f DAM finalized prpsed radmap: Jun 2018 Nv 2018 April 2019 May 2019* Energy Law adpted/ Assigned respnsibility fr setting up DAM in BiH Selectin f prvider f trading platfrm Selectin f prvider f C&S Implementatin f DAM G-live f DAM WB6 Technical assistance t the establishment f DAM- Recmmendatins: A light and inexpensive DAM t be established, with the main functins utsurced (service prvider t be selected in a tendering prcedure) Thessalniki, 27 June

17 Day-ahead Market Cupling in Western Balkans Starting pint: WB6 Memrandum f Understanding n reginal electricity market develpment Signed by WB6 ministries, transmissin system peratrs, natinal regulatry authrities and pwer exchanges and 15 EU MSs stakehlders frm all neighburing EU MS. WB6 MU signatries agreed n a market integratin prcess starting with market cupling f natinal rganised dayahead markets with at least ne neighburing WB6 r EU MSs market by July 2018 WB6 DA MI PSC adpted WB6 Day-ahead Market Integratin Prgram Rad Map, which identifies reginal prjects which will lead t the cupling f natinal rganized day-ahead markets between WB6 and with EU MSs by July 2018: Identified reginal prjects: 1. Albania-Ksv* Market Cupling Prject 2. Mntenegr-Serbia Market Cupling Prject 3. Serbia-4MMC Market Cupling Prject 4. Albania Italy Mntenegr Serbia (AIMS) Market Cupling Prject 5. FYR f Macednia -Bulgaria Market Cupling Prject 6. Bsnia and Herzegvina Market Cupling with Cratia, Serbia and Mntenegr 7. Albania Greece Market Cupling Thessalniki, 27 June

18 Bulgaria FYR f Macednia market cupling prject Prject kicked-ff as part f WB6 MU implementatin Identified as a MC prject under the WB6 Day-ahead Market Integratin Prgram WB6 TA prvided fr the implementatin f the prject Objective: market cupling between Bulgaria and Macednia Flagship prject fr market cupling between a EU and nn EU cuntry in general 2 MUs signed: MU between stakehlders (TSOs, PXs and NRAs) MU between Ministries Thessalniki, 27 June

19 Bulgaria FYR f Macednia market cupling prject MU between Ministries Prvides plitical supprt t the market cupling between Bulgaria and Macednia Emphasis n: creating a legal and regulatry framewrk that will allw fr market cupling between Bulgaria and Macednia bridging EU-EnC gap in market cupling by linking EU MS and EnC CP jining the IEM and with it, create new business pprtunities Imprtant references t CACM Guideline (principles), MRC (target), implementing entities MU Cmmitment t: cuple day-ahead electricity markets f the Parties until Q g-live f the day-ahead market in Macednia is a prerequisite. Thessalniki, 27 June

20 Bulgaria FYR f Macednia market cupling prject MU between stakehlders (TSOs, PXs, NRAs) t cuple Macednian and Bulgarian day-ahead electricity market in an efficient and cst effective manner (The Parties have agreed t establish a prject fr the implementatin f the gal f this MU). t enhance the market integratin in the SEE and WB6 regin and t practively apply market cupling. Organisatin f cperatin: grup f high level representatives, equipped with certain delegated decisin- making pwers, f TSOs, NRAs and PXs (Prject Steering Cmmittee, PSC) g-live f the day-ahead market in Macednia is a prerequisite. Prject Team cnsisting f representatives f the TSOs, NRAs and PXs; its activities will be defined in separate Terms f Reference (TR) relevant Wrking Grups fr specific areas like technical, cmmercial, legal, regulatry and peratinal matters, based n needs defined by the Prject Team. Thessalniki, 27 June

21 Albania Ksv* market cupling prject MU n cperating n the establishment and peratin f APEX was signed between the Albanian and Ksv* Ministries respnsible fr energy in Nvember 2017 MU n day-ahead market cupling between TSOs and NRAs drafted and expected t be signed; MU envisages market cupling t be finalized by the end f June 2019 Gap analysis nging with the aim t identify: - gaps in Market Rules, technical rules, market participatin agreements, regulatry appraches t PX peratin and the rganised market - what is t be intrduced int KS regulatry landscape in rder t reach a sufficient level f harmnisatin - best apprach in aligning the legal and regulatry framewrk f AL and KS, including hw the adptin f the necessary acts and prvisin culd be dne by ERO Thessalniki, 27 June

22 Bsnia and Herzegvina Cratia market cupling prject Part f the prject fr MC f Bsnia and Herzegvina with HR, MN and RS as identified by WB6 DA MI radmap CROPEX expressed its interest in receiving technical assistance fr implementatin f day-ahead market cupling between Cratia and Bsnia and Herzegvina in February 2018 Service specificatin drafted by the cnsultant and submitted t the Ministry in charge f energy in BiH BiH is still cnsidering the initiative f CROPEX Thessalniki, 27 June

23 Albania Greece market cupling prject N activities n AL-GR Market cupling prject were launched Greece is currently finalising natinal electricity market refrm A new cmpany Hellenic Energy Exchange (t be wned by Hellenic Stck Exchange, ADMIE, LAGIE and ther sharehlders) will perate electricity day-ahead market market cupling with neighburing cuntries will require full implementatin f the new law adpted in the beginning f 2018 Greece is cnsidering market cupling with Italy, Bulgaria and FYR f Macednia Thessalniki, 27 June

24 Mntenegr Serbia market cupling prject N cncrete activities n ME-RS market cupling prject were reprted The prject launch will prbably depend n the selectin f strategic partner in Mntenegr Thessalniki, 27 June

25 Crss-brder Balancing Prgress is s far limited t bilateral/trilateral cperatin. Truly reginal balancing is still t take ff in the Western Balkans, despite the cnsiderable welfare gains it wuld bring. Remving bstacles at natinal level Regulatin f natinal balancing market prlnged by end 2018 in: FYR f Macednia (The law adpted in May and WB6 TA n the way) Prgress made: Albania adpted transitinal balancing rules (develped under WB6 TA) - January 2018 Balancing mechanisms peratinal: Bsnia and Herzegvina Mntenegr Serbia Thessalniki, 27 June

26 WB6 Technical Assistance t the Implementatin f Crss-brder Balancing Objective: prvide the technical supprt t a crss brder electricity balancing cperatin thrugh: 1. Develpment f a cnsistent and feasible radmap in accrdance with the EU guidelines (EB GL and SO GL) 2. Develpment f feasible mdel fr reginal: imbalance netting crss-brder balancing energy exchange frm (mfrr) and replacement reserve (RR) 3. Evaluatin f implementatin impact - cst-benefit analysis (reginal, natinal, cmpany) based n testing results and criteria defined by EB GL. Tasks: Assessment f natinal balancing markets f beneficiary cuntries Assessment f impact f existing Cntrl Blcks n balancing market cperatin Mdels f reginal cperatin fr balancing energy Exchange f balancing energy Mdels f reginal cperatin fr balancing energy Imbalance netting Develpment f a radmap twards a reginal/eurpean balancing cperatin/market Thessalniki, 27 June

27 CACM / FCA implementatin EU CACM EnC CACM EnC CACM Eurpean Unin Cntracting Parties Thessalniki, 27 June

28 CACM / FCA implementatin All TSOs /(NEMOs) All NRAs Relevant TSOs /(NEMOs) & NRAs Example f a regin Relevant TSOs /(NEMOs) & NRAs Eurpean terms & cnditins / methdlgies / platfrms Reginal (CCR) terms & cnditins / methdlgies / platfrms Natinal (CCR) terms & cnditins / methdlgies / platfrms Transfer thrugh PHLG decisin applicable n Title III (CP-CP, CP-MS) Develped n reginal level and applicable n Title III (CP-CP, CP-MS) Natinal implementatin applicable n CPs Example f a regin Thessalniki, 27 June

29 Draft Preliminary Electricity PECI List Thessalniki, 27 June

30 Draft Preliminary Electricity PMI List Thessalniki, 27 June

31 Energy Cmmunity Secretariat Energy Cmmunity Secretariat Thessalniki, 27 June 2018