EURELECTRIC vision on market development – what can the industry provide to accelerate market...
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EURELECTRIC vision on market development – what can the industry provide
to accelerate market development?
EURELECTRIC vision on market development – what can the industry provide
to accelerate market development?
Peter ŠTULCChairman of EURELECTRIC TF flow-based methods
CEZ, Head of Strategy
EMCEF conference « Energy policy and restructuring »,Prague, 23 March 2007
Electricity markets at the crossroads
• Keep momentum! • Need for more market, not less!• Risks for markets of getting “stuck” half-way
-> High time to adopt measures that will secure fastest way to market integration
-> EURELECTRIC regards the forthcoming EU legislative package as an opportunity to attain this objective
Energy Package
Commission’s proposal of 10 January (markets)
UNBUNDLING
- ownership unbundling preferred option,
- national ISO model as a second best approach
TSO’s COOPERATION
- Enhance level of TSO co-ordination via an ETSO+
- Introduce regional system operators with the
establishment of cross-border system operators as an intermediary step
Energy Package
Commission’s proposal of 10 January (markets)
REGULATION
- At national level: increase and harmonise regulators’ powers
- At European level: improve process via ERGEG + or a
Community body
WHOLESALE MARKETS
- Introduce legislative measures on market transparency (either through revision of CB regulation or new instrument)
Energy Package
EURELECTRIC VIEWS
• Commission’s approach is sensible but more is needed to drive market integration forward (i.e. cooperation of TSOs and of regulators)
• Agrees with Commission’s analysis on current status of markets
• Ownership unbundling is not conducive to market integration
• Lack of incentives and political will are main reasons for slow development of interconnectors
Energy Package EURELECTRIC VIEWS ON TSO COOPERATION
EURELECTRIC favours an approach that drives
regional market development and is investigating
the benefits of a regional ISO model - TSOs linking up their activities in regional markets (e.g. calculation of grid capacity, capacity allocation, secondary market, cross-border intraday, etc);
- This would be an essential driver in bringing markets together;
- This would also remove possibly remaining suspicion towards vertically integrated companies;
Energy Package EURELECTRIC VIEWS ON REGULATION
EURELECTRIC acknowledges that regulators’
cooperation brought some improvement but a more efficient regulatory process is needed
- Market integration requires a more European approach to regulation
- This requires greater involvement of the Commission (i.e. ability to take appropriate actions and oversee process)
- Such a process needs to deliver timely decision-making with effective consultation of stakeholders
Energy Package EURELECTRIC VIEWS ON WHOLESALE MARKETS
• EURELECTRIC is committed to creating a level-playing field on market transparency
• EURELECTRIC actively engaged in a voluntary process of disclosing generation data
• This is meant to pave the way for the
Commission’s next legislative measures
Generally in line with EURELECTRIC general principles
Development towards compliance with EURELECTRIC general principles
DE: Since 10 April 2006 publication of data on EEXCWE: Implementation
close to EEX standard
CEE: industry proposal for voluntary disclosure
scheme
Implementation is ongoing …
AT Companies join the German initiative
INTEGRATION OF WHOLESALE MARKETS
WAY FORWARD
• More is needed to move to regionally integrated wholesale markets:
- Integrate intra-day markets
- Harmonise gate closures
- Introduce market coupling
- Develop secondary markets
- Harmonise trading products and trading principles
- Integrate balancing markets
OTHER ISSUES AT STAKE
WAY FORWARD
• Markets also need:
- removal of regulated prices in retail markets
- appropriate integration of RES in the market, i.e. though the development of harmonised market-based schemes for RES support
- bridging the gap between gas and electricity market development to ensure progress towards competitive gas markets
INTEGRATION OF WHOLESALE MARKETS
WAY FORWARD
• Acceleration of market development should be
based on a cumulative processes:
- new legislative measures capable of driving genuine market integration
- consistent development of the regional market initiatives
- EURELECTRIC road map towards a pan-European market should be used as guidance for further market integration
Thank you for your attention.
Representing the European Electricity Industry