15th Electricity Forum of the Energy Community

Athens
25-26 November, 2009

Cooperation of SEE TSOs

within ENTSO-E
Gheorghe INDRE, Transelectrica
Convenor of the MC Regional Group of South East Europe

Outline of presentation

ENTSO-E: fully operational since 1 July 2009

ENTSO-E and the 3rd Energy Package
ENTSO-E organizational structure
The Regional Group SEE under the Market Committee
ENTSO-E 2009 2010 Work Program
The Ten Years Network Development Plan
Proposed priorities where preparation for code development should
start in 2010
Capacity allocation and congestion management
Some Final Remarks

ENTSO-E: fully operational since 1 July 2009

Represents 42 TSOs from 34

countries

~500 million citizens served

650 GW generation
230.000 km V-HV lines
1.500.000 km MV-LV lines
Demand: 3.000 TWh/year
Exchanges: 300 TWh/year
Investments by 2030
for T&D: ~500G

Replaces former TSO

organisations: ATSOI,
BALTSO, ETSO, NORDEL,
UCTE, UKTSOA

ENTSO-E & the 3rd Energy Package:

keeping the pace and anticipating

European TSOs welcome the 3rd Energy Package

Among ENTSO-E tasks:
developing network codes
binding rules for TSOs and grid users crucial for
maintaining system reliability and a well functional
electricity market
pan-European 10-Year Network Development Plan
reflecting EU energy policy objectives such as RES

ENTSO-E is ahead of the 3rd packages entry into force

(foreseen early 2011 with the ACER becoming operational)

1st Work program is open to public consultation until 1 December

(www.entsoe.eu)
November 30, 2009

Assembly

System Development
Committee

Board

Secretariat

Legal & Regulatory

Group

Expert Groups

Working Groups
European Planning Standards
Network Modeling and Data
10 Year Network Develop. Plan
Research and Development
S. Adequacy & Market Develop.
Asset Implem. & Management
EWIS Project

System Operations
Committee
European Operational Standards
Critical Systems Protection

Market
Committee

Market Integration
Ancillary Services
Market Information
Economic Framework
RES
EDI

Regional Groups
North Sea
Baltic Sea
Continental CE
Continental CS
Continental SE
Continental SW

Voluntary
Regional Groups
Northern Europe
Isolated Systems

Continental Europe
Nordic
Baltic
Great Britain
Ireland - N. Ireland

Baltic Sea
North West Europe
South East Europe

Regional Group SEE:

Mission and objectives (Terms of Reference)

Mission:
The mission of the group is to promote the development and co-ordination
of the national electricity market at the regional level. The result of this coordination will constitute a common input to all ENTSO-E procedures
aiming at the creation of the internal electricity market in EU.

The objectives (which are very ambitious) focus on key issues for the well
functioning market...
...on supporting SEE TSOs in the process of electricity sector restructuring..
..on supporting SEE TSOs in the process of implementation of a market based
co-ordinated cross-border capacity allocation in the region in compliance with
the EC Regulation n. 1228/2003 which will be repealed by the EC Regulation n.
714/2009
and on the cooperation with
stakeholders and institutions within the Energy Community,
Working groups and other Regional groups of ENTSO-E for fulfilling its
tasks and objectives.

Members and associate members of Regional Group

for South-East Europe under the Market Committee
Members
ELES, Slovenia
EMS, Serbia
ESO EAD, Bulgaria
HEP-OPS, Croatia
HTSO, Greece
MAVIR ZRT, Hungary
MEPSO, FYR of Macedonia
NOS BiH, Bosnia Herzegovina
PRENOS, Montenegro
TERNA, Italy
TRANSELECTRICA, Romania
Verbund-APG, Austria

Associate members
KOSTT, The United Nations Interim
Administration Mission in Kosovo
OST, Albania
TEA, Turkey

ENTSO-E 2009-2010 Work Program

Key Work Areas
Ten year network development plan
R&D Plan for TSO needs
Common operational tools
Position papers on future
transmission technology, EMF and
licensing procedures
Long term strategy for system
development
Renewable energy sources
Technical documents on operational
reserves, and on determination of
incident classification
Ancillary services
TSOs economic framework
Congestion Management

Network code development

priority areas
Pilot Code (under development)
Proposed priorities where
preparation for code
development should start in
2010

Transparency
Design for market integration
General generation connection
conditions

Pilot code for grid connection of generators with special

focus on wind generation

A common ENTSO-E and ERGEG initiative supported by the Florence Forum

Objectives:
To practice new roles and responsibilities of the code development process
Learning the job by doing it

Should cover the development of framework guideline by ERGEG, one underlying

code

Including all necessary consultation and evaluation phases with stakeholders, and at
least informing Member States in preparation for the later Comitology phase

The pilot code project should not be the one and only code activity during the interim;

The suggested pilot network code:

Generators connection with special focus on wind generation
(harmonizing grid code requirements)

Reason: one of several codes related to a connection framework guideline to

ensure consistency with other renewable, cogeneration, conventional generation,
distribution networks, loads

Proposed priorities where preparation for code

development should start in 2010

Transparency rules
Important aspect of a well functioning electricity market
The area is sufficently mature;
aligns with EC priorities and ERGEG Work Program (FWGL)
A ENTSO-E Transparency Policy is under way; input to a network code
Design for Market integration
The outcome of PCG/MIDP expected to provide guidance on where and
when to start develop Network Codes/FWGLs
Likely priorities: Congestion Management, Capacity calculation, Integration
of cross-border electricity markets in the day-ahead and the intraday
timeframes
General generation connection conditions
Need for consistency between wind generation connection and connection
of other plants

The TYNDP is the most important new task

besides Network Codes - The first issue in 2010

Based on existing material

Stakeholders statements in 2009
Review of TSOs practices, projects,
Definition of scenarios despite 20-20-20 survey still ongoing
A first attempt for the content organisation
But a first comprehensive report
Highlighting scenario description, investments overview,
technologies & barriers and leads for improvements
= a Pilot Project, basis for further debate

Top down
Building scenarios is a 2-way process

Community-wide

N+15

20/20/20
N+10

20/20/20 ?
Business as
usual

N+5

conservative

Bottom up

Gen. Data

National plans

Capacity Allocation and Congestion

Management

Regulation 1228/2003 and its CM Guideline

Lots of work in this area completed collectively within ENTSO-E and formerly
ETSO
Recent EC Infringement Case
Market Integration Design Project
Establishment of models towards collaboration of regional markets
Endorsed by the Florence Forum
Participation by all key stakeholders

Conclusions by the EuroPEX-ENTSO-E project

Regional Initiatives have made significant progress

but overlapping regions are becoming a barrier to market coupling solutions;

Few examples of initiatives between regions so far

Little evidence of a coordinated approach

Target Model presented at the Regulators Forum

Next step: a Target Model to ensure

compatibility between regional initiatives

A consensus view amongst stakeholders of a

model for cross border congestion and market
integration

A medium term view for progressive

implementation at the latest by 2015

Addresses all timeframes in a logical and sequential way

Developed in parallel with the regional initiatives
Act as a benchmark for consistency and essential cross
border harmonisation and compatibility.

Some final remarks

The 3rd Energy Package has created a new legal basis for the future
development of the process for the creation of the internal electricity
market in EU.
The TSO industry has an essential role in the operation of the integrated
electricity market, being responsible for reliable operation of the
interconnected grids in the complex competitive electricity trading
environment.
ENTSO-E as an entity required by the 3rd Energy Package will act for
fulfilling all the tasks defined in the legislation for the benefit of electricity
end users and for the sustainable development of the EU economies.
The interests of the TSOs in the region are represented in ENTSO-E by the
Continental Europe Regional Group under System Operation Committee,
Continental South-East under System Development Committee and the
Regional Group SEE under the Market Committee.
The Regional Group SEE under the Market Committee of ENTSO-E
represents the right place for addressing the TSOs interests and
contributions in the region in relation with the regional electricity market
development.

Thank you for your attention!

www.entsoe.eu