REGULATION FOR THE ENERGY UNION: IMPLEMENT AND UPDATE!

Bente Hagem, Chair of the Board

20 November 2015ENTSO-E Annual Conference Brussels

Integrated wholesale markets

Establishment of ACER and ENTSOs

More NRA and TSO cooperation

TYNDP

TSO unbundling

Network codes – 800 pages!

The Third Package has delivered

It is time to implement

Complete wholesale markets across Europe

Establish intraday markets

Develop regional

balancing markets

Establish RSCIs

Establish Capacity Calculation regions

Establish regional adequacy assessment

Key success factors for TSOs and NRAs:

• Regional approach

• Monitor progress

• Share best practice

• Complete what is missing

NETWORKCODES

Regulatory gaps to be filled

• Customers to see price signals – empower consumers • Dynamic pricing of energy • Tariffs reflecting use of capacity• Subsidy scheme and taxes to value flexibility

1. Link retail-wholesale

• Regional procedures in scarcity situations• Ensure cross-border participation whenever CRMs are implemented• Regional and European system adequacy assessment, by ENTSO-E

2. New role for DSOs • Regulated and neutral data-hubs, and smart meters• Manage congestions in distribution grid• Building markets for demand-side response together with TSOs

3. SoS directive

MARKET DESIGN• Low entrance barriers for new

suppliers• Change of supplier made easy• Floating or fixed price• Future tariffs reflecting constraints

MAKING USE OF SMART IT• Smart meters to empower

consumers• Data-hubs for easy administration,

billing and enabling of smart grid apps

• Consumers to sell flexibility to retailers or to aggregators

Case: Retail-Wholesale integration in the Nordics

Customers DSO's Retailers

Finland 3,5 mill 80 120Norway 2,9 mill 130 110Sweden 5,2 mill 170 170

Denmark 3,3 mill 65 60

Source: NordREG status report 2- 2015, and Nordic TSO updates

Case implementation: Regional approach - Penta in Central West Europe

PARTICIPANTS• Ministries• Regulators• TSOs• Power exchanges• Market participants

DELIVERABLES• Regional market

coupling• Flow-based• Intraday markets• Regional planning• Regional adequacy

assessment• RSCs like Coreso, TSC

FOUNDATION• Political

commitment• Priority of

participants• Respecting roles• Building trust

We need a "YES I DO" from many at the same time

A role for ENTSO-E: ensure IMPLEMENTATION

• Flow-based• RSCIs• Intraday platforms• Removing barriers• Dynamic pricing

… and more

… keeping up speed

ENTSO-E has to to ensure TRUST in all we do

Efficiency through trust

• Transparency• Stakeholder committees• Co-creation• Independent advisory

board

… and more

… by keeping speed

We need to CONNECT the European regions

A role for ENTSO-E: to CONNECT

• Ensure European approach• Develop interoperability• Balance regional vs. European

perspectives• Collect and promote best

practise, developing target models

… and more

… keeping up speed

THANK YOU FOR LISTENING

YES to IMPLEMENT TRUST CONNECT

Bente Hagem, Chair of the Board