Embed Size (px)
Citation preview
Energy
On the Way to the Target
Model
Vienna Forum on European Energy Law
Vienna
14.3.2014
Oliver KochEuropean Commision
This presentation replects solely the personal views of the author and does not bind the EU Commission
What is the
“EU Target Model”?
Future EU Market Design
2014 Target Model
Future EU Market Design
EU-wide day ahead market
coupling
EU-wide intraday markets
Forward MarketsFlow-based market
coupling Balancing
Vienna Forum 2013:
2 game changers
• Europeanisation
• Intermittent energy
Commission 2013, e.g.
• Network Codes• Infrastructure Package
• ”State interventions”• EEAG & GBER
What prevails?
Security of Supply2009 Russia – Ukraine dispute & impact on individual countries
> 75 %
50 - 75 %
25 – 50 %
< 25%
0%
Ukraine
% of gas supplies lost
Reduce Greenhouse Gas Emissions levels by 20%
Increase share of Renewables to 20%
Reductions in 2012:-18%
2020 Targets
2020 Projection: 24%
Share in 2011:12.7%
2020 Projection: 21%
2020 Projection
Climate and energy: where do we stand?
Reduce energy consumption by 20%
~ 16-20 %
2030 Projection: 32%2030 Projection: 24% 2030 Projection: 21%
2030 climate and energy Framework
20 % GHG
40 % GHG
20% RES
20 % EE
≥27% RES
..2014
2020
2030New Key Indicators
New governance system
Target 2014
Where are we?
Is the idea of a market still valid?
Where they work, markets bring prices down…
• Traded volumes at EU gas hubs
Is the idea of a market still valid?
And they start to work…
• Liquid hubs with sufficient and
efficiently used infrastructure
• Functioning markets
in all of Europe
• Ensure that gas flows
to Europe
Hub* Zones drawn for illustration. Size of zones will depend on CBA.
Source: CEER Vision for the GTM in a nutshell
The vision is to connect liquid hubs
Are isolated markets a concept of the past?
Building the missing links
Target Model 2014
Where are we?
“Network Codes”E.g. Market Coupling
2014
• Optimisedcapacity calculation
• EU-wide aggregationof bids and offers
Florence Forum
13. November 2013
Future
EU Electricty
Market Design
Need for a new Target Model?
2014 Target Model: Outdated?
Future EU Market Design
2014 Target Model: MODERN!
Target Model in a state intervention
reality:
Possible adaptations?
•Value for Flexibility
•Balancing responsibility
•“Best practice” for C/B-open CRM?
•Solutions for C/B SoS
•True balancing harmonisation
Wholesale Market DesignIssues
Issue: Will merit curve survive?
Cooperation in parallel supply crisis?
?
•Price zones – lacking behind?
•Tariffs?
•Governance: focus too national?
• TSO fragmentation and ENTSO-E• “ACER Ljubljana” vs “NRA-ACER”• Scope of Regulation 714/715• Scope od Directive 2009/ 72 & 73
Target Model/IEM
Don’t underestimate…
Participate!
Thank you for your attention
Dr. Oliver Koch
Deputy Head of Unit
European Commission
DG Energy
Unit B-2 (Internal Market II: Wholesale; gas & electricity)
DM 24 – 6/117
Brussels/Belgium
++32 229 87302
