Cross Border Intraday on the North Italian Borders

Introduction

ForumRome, 13th March 2012

Cross Border Intraday on the North Italian Borders

Introduction

ForumRome, 13th March 2012

In order to promote a competitive, sustainable, secure and transparent Internal Energy Market to the benefit of all European consumers, several regional initiatives have been set up to speed up the implementation of mechanism permitting electricity markets integration

On CSE region, electricity markets integration have been improved for long term rights since 2005 with common set of Auction Rules and CASC setting up until last step in 2011 with the harmonization within CSE and CWE regions and Switzerland.

Intraday market integration was not feasible until end 2010 due to the lack of intraday market in Italy.

Cross Border Intraday on the North Italian Borders - Introduction Background

Enduring intraday mechanism on interconnections consists in continuous trading with implicit allocation of capacities

The ACER’s Framework Guidelines foresee that regional auction may complement the implicit continuous allocation mechanism

Studies have to be finalized in order to find the more efficient solution

As a transitional measure, direct explicit access to the capacity will also be allowed, subject to the approval by the relevant NRAs (direct explicit access will be organized via auctions)

Waiting for the implementation of the target model that allows also the pricing of capacity interim solution has been proposed to be implemented on Italian borders:

Capacity rights allocated in XBID auctions can be used in GME ID sessions

Cross Border Intraday on the North Italian Borders - Introduction Enduring vs Interim

Works have been performed during 2011 to reach compatibility of explicit cross border capacity auctions with the Italian Intraday markets with implicit auctions performed by GME

Forum 13th March 2012

Consultation on the Intraday Auction rules from 16th February to 16th March

Comments from Market Parties have to be sent to the following CASC email address: feedback.auctionrules@casc.eu

Approval period from 2nd April to 30th April 2012

Go live: 31st May 2012 as delivery date on France – Italy, Switzerland

– Italy and Slovenia – Italy borders end of this year on Austria – Italy border not yet defined on Greece – Italy border

Cross Border Intraday on the North Italian Borders - Introduction Interim mechanism - Roadmap

Enduring solution implementation depends on the ongoing projects and on works between exchanges to make a continuous mechanism compatible with auctions

TSOs are working in order to implement the enduring solution on the basis of mechanism and targets defined at European level

TSOs will keep informed the Market parties on the progress made on the enduring solution

Cross Border Intraday on the North Italian Borders - Introduction Enduring mechanism - Roadmap