Independent Bulgarian Energy Exchange EAD (IBEX) · 2018-10-26 · European coupling initiatives (CWE, CEE, 4MMC). Expected deliverables: Cooperation agreements, procedures, analysis

CESEC, Brussels, 24.10.2018

Independent Bulgarian Energy Exchange EAD (IBEX)

CESEC Electricity Plenary and Working Group

Table of content

Participation in the EU and regional projectsParticipation in EU (MRC, XBID) and regional (WB6, IBWT) integration projects.

IBEX role on the Bulgarian and regional marketCompany set up, structure and main achievements.

WB6 initiative and the BG-MK regional projectUnique chance for the regional markets development and integration.

BG-MK coupling project statusProject structuring, model for cooperation, achievements and issues.

Further steps, critical milestones and roadmapWhat is planned in short and medium term perspective for the successful accomplishment of the first EU/non EU coupling.

Successful regional integration

This project is supported by the European Union. The contents of this publication are the sole

responsibility of the Energy

Community Secretariat and can in no way be taken to reflect the views of the European Union.

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IBEX role on the Bulgarian power market (1)

Q1 2014г.

IBEX incorporation as a 100% owned by BEH EAD company and its licensing by the NRA

24.10.2016

Launch of the

second IBEX segment – CMBC (based on the contract with Trayport ltd.

09.01.2018

IBEX withdraw from its

CCP role on the “Auction” screen of the CMBC market

19.01.2016

Go-live of the first organized market segment in Bulgaria – Day Ahead Market (based

on the Nord Pool service agreement)

22.12.2017

Energy Act amendments defining the mandatory participation on IBEX

04.2018

Intraday market Go-live (based again on the service agreement with Nord Pool)

Launch of the BG-MK coupling project as a part of the WB6

Q2

2018Q1

2018

Q4

2017Q4

2016Q1

2016Q1

2014

01.07.2018

Changed market design with higher liquidity on IBEX.

Q3

2018

Company achievements in time


Set up and structure – typical solution for an emerging market

Price and volumes

calculation(MCP, MCV,

EUPHEMIA)

Technical support

“First line”support

Settlement and risk

management

Customer acquisition

process

Market development

Market surveillance

IBEX responsibilities

“Service

provider” responsibilities

Energy Act (primary legislation)

Market Rules (secondary legislation adopted by the NRA)

IBEX Operational rules IBEX Settlement rules

IBEX Market conduct rules

Rulebook


Day Ahead market (DAM) status

Maximum average daily volume (DAM): 914,7 MWh/h (21 952,8 MWh) reached on the 13.08.2018;

Average price (DAM) for the period 01.2018 / 08.2018: 34,52 EUR/MWh Number of members (DAM) – 69; Number of members (IDM) – 40; Number of members (CMBC) – 55;

0,0 €

10,0 €

20,0 €

30,0 €

40,0 €

50,0 €

60,0 €

0 GWh50 GWh

100 GWh150 GWh200 GWh250 GWh300 GWh350 GWh400 GWh450 GWh500 GWh550 GWh600 GWh650 GWh

IBEX traded volumes in [GWh]

Traded volume (GWh) Average price in EUR/MWh


Others

4MMC members

Full MRC members

IBEX and the EU Integration process

Memberships

MRC full membership since DAM Go-live in Jan. 2016;

PCR associate membership through a Service agreement contract since Dec. 2016;

NEMO designation for the BG market zone – Jan. 2016;

EUROPEX full membership since Feb. 2016;

XBID accession stream membership since Mar. 2016 and LIP 15 member (Go-live with second wave);

WESTERN BALKAN 6 and BG-MK coupling – Apr. 2018 MOUs signed

IBWT potential membership in order to facilitate future DAM integration project with Greece – planned for 2019


BG

MK

Unique chance for the regional markets development and integration

Western Balkan 6 (WB6) Initiative, initiated in

the 2015 WB6 Summit, where the WB6 parties

agreed at the highest political level to create a

regional electricity market in the Western Balkans,

under the leadership of the Energy Community

Secretariat (ECS).

The WB6 MoU sets a ground for cooperation

between the WB6 and neighbouring EU Member

States.

Under the ECS’s facilitation, 15 stakeholders from

all six neighbouring EU MSs adhered to the WB6

MoU in 2017 and thus became active project

parties.


Project fundaments and objectives

• Scope of work: providing support to the

implementation of market coupling of Bulgaria

and Macedonia

• Expected benefits: Facilitation of development

and approval of deliverables necessary for market

coupling of Bulgaria and Macedonia.

• Structure: Separate project (WB6.A1.R02) under the

WB6 Day-ahead Market Integration Program.

• A consultancy consortium has been assigned by the

ECS to support the implementation of the project.

• Beneficiaries of the project: TSOs, PXs and NRAs of

Bulgaria and Macedonia.


Project model of cooperation

2 MoUs signed – one between Ministries and one

between the stakeholders (TSOs, PXs and NRAs). The

draft MoUs were developed based on MoUs used in the

European coupling initiatives (CWE, CEE, 4MMC).

Expected deliverables: Cooperation agreements,

procedures, analysis and other supporting documents

necessary to formalise cooperation and support

implementation of market coupling between Bulgaria and

Macedonia and between a EU and non EU country in

general. At a second stage, the change request

towards MRC will be submitted.

The MoUs:

Explain the background and intention to

cooperate;

Specify the targets for implementation,

namely, ATC-based day-ahead electricity

market coupling, with the aim to create

added value for both countries’ economies,

and increase market efficiency;

Concrete timelines for implementation;

Establish a project with a single governance

structure;


Project achievements (Status quo)

Ministries MoU signed – 18 May 2018;

Completing the signature of the MoUs - end of May 2018;

PSC and Project team establishment – 1st of June 2018;

ToR preparation and approval – 23rd of June 2018;

WGs structuring and first physical meetings – 18th of July 2018;

MRC letter concerning the EU-non EU coupling and the DAOA implications – 6th of July 2018;

First meeting between MRC JSC and ECS – 11th of September 2018;

Project parties NDA approval process – September 2018;

Legal GAP analysis launch – September 2018;

Budget estimation and cost sharing and recovery principles definition - October 2018.


Project structure (Status quo)

Vice-ChairmanChairman

MK (TSO, NRA, PX, ME)BG (TSO, NRA, PX, ME)

BG MK Project Steering Committee

Working GroupsInter-TSO Inter-PX PR

• TSOs • NRAs

• IBEX • (MK PX)

• IBEX

• (MEPSO)

MRC

• Relevant Sub-project

WB6 DAMI PSC Project Manager

Project Team

Escalation of high-level decisions

Steering Reporting

Legal Financial

Convenor ConvenorConvenor Convenor Convenor

Steering ReportingEscalation of

project decisions

Transversal TSO/PX Topics

Facilitation

Facilitation


Next steps and critical milestones

Establishment of the Macedonian PX

(incorporation) – expected December 2018;

Decision on the PX administration model

(Serviced, own LTF, etc.);

Full or partial CACM adoption in MK - NEMO

designation process (NRA);

MK to become a signatory of the global DAOA;

Removal of the "export tariffs" from the

Bulgarian side;

Market coupling Go-live preparation - end of

2019 (subject to MRC CR approval)

Critical milestonesUpcoming activities

Signature of the Project NDA – end of October

2018;

Finalization of the legal GAP analysis – end of

November 2018;

Budget finalization and cost sharing agreement –

end of November 2018;

Support in the Macedonian PX establishment –

expected in December 2018;

Drafting of the TSO-TSO and PX-PX agreements for

implicit capacity allocation, CCP-CCP arrangement,

etc. - Q1 2019


Thank you for your attention!

IBEX EAD

www.ibex.bg

E-mail: [email protected]

Documents

Independent Bulgarian Energy Exchange EAD (IBEX) · 2018-10-26 · European coupling initiatives (CWE, CEE, 4MMC). Expected deliverables: Cooperation agreements, procedures, analysis