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European Developments Transmission Workgroup 5 th January 2012.

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Presentation on theme: "European Developments Transmission Workgroup 5 th January 2012."— Presentation transcript:

1 European Developments Transmission Workgroup 5 th January 2012

2 European Gas Balancing Network Code Update Chris Shanley

3 ENTSOG’s Project Plan Consultation  Respondents: 38, including companies, associations and academics  Project timeline - ENTSOG to maintain the timeline in the original project plan, making revisions only when strictly necessary  Stakeholder participation - Indicated participation levels should provide a good basis for discussing Balancing Network Code challenges  Planned stakeholder involvement in project - ENTSOG to maintain the number and schedule of Stakeholder Workshops (SJWSs) as in the original project plan

4 Participants  Prime Movers: 8  Rene Luijten (Enexis) - CEDEC  Gunnar Steck (E.ON) - EFET  Eva Henning (Thuega); Paul de Wit (Alliander); others - eurogas  Miguel Vazguez; Michelle Hallack - Florence School of Regulation, EUI  Claude Mangin - GdFSuez  Charlotte Patrigeon - GrDF  Kees Bouwens (Esso); Christiane Sykes (Statoil) - OGP Europe  Steve Rose - RWE Supply & Trading  Active SJWS Participants: 27  Consultation respondents: 11  Observers: 4

5 Stakeholder Main activities of ENTSOG and stakeholders during BAL NC development phase Workshop SJWS 1 Roles & responsibilities Imbalances / financial Within-day obs. Info. Provision Above to be confirmed Dec Jan Feb MarApr JuneJuly MayNovJunJulOct Apr Aug Sep Nov Invitation from Commission Submit Network Code Project launch 13/14 Dec 23 SJWS 7-8 SJWS Consultation May Workshop FG Development of Network Code with stakeholder on the basis of the final Framework Guidelines ACER Development of launch documentation Development of draft network code in cooperation with stakeholders Refinement of network code based on the feedback by stakeholders SJWS Feedback on drafted Network Code by ENTSOG Work shop ENTSOG SJWS 2 Balancing products Merit order Charges Interim measures Above to be confirmed SJWS 3 Within-day obs. Info. provision Balancing products Nominations Above to be confirmed SJWS 5 To be confirmed SJWS Oct 9 SJWS 26 SJWS SJWS SJWS 4 Consolidation Preview of network code Cross-border topics Above to be confirmed Current project plan 5

6 ENTSOG-internal organisation for project ENTSOG governance General Assembly Board BAL Working Area 6 Expert Kernel Groups of TSO members - Advisory - Commercial framework - Cross-border issues - Info Flows/DSO - Genuine system needs (GSN) - Others (TBD) ENTSOG Brussels Team Tori Gerus Noel Regan Nigel Sisman Frederik Thure Ruud van der Meer Prime movers External stakeholders SJWSs, meetings, consultations, etc.

7 Balancing Network Code - Launch Event  Balancing Network Code Launch Workshop was held 13 th and 14 th December  89 Stakeholders attended  live web-streaming  All presentations and launch documentation is available via  Next SJWS: SJWS1, January 2012

8 Balancing Network Code - Launch document  The scope of the Launch Document is guided by ACERs framework guidelines on gas balancing  Intended to provide a foundation for discussions with stakeholders and the development of the network code  Contains several concepts for further consideration with stakeholders  Divided into two sections:  Balancing Target Model (BTM) and  Transitional Steps - interim measures that can be used during the transition to the balancing target model

9 Transparency update

10 10 Transparency Compliance Monitoring  Background  Regulators of the Gas Regional Initiative North West (GRI NW) agreed to examine compliance of TSOs against the new gas transparency requirements  TSOs within the GRI NW region were asked to complete:  a questionnaire to explain whether or not they publish the required information required  include links to the relevant information  All TSOs have responded

11 11 Transparency Compliance Monitoring  Consultation on Compliance Monitoring of TSOs against the Third Package Gas Transparency Requirements   Issued 18/11/11  In order to provide an assessment of TSOs’ compliance, the regulators are now seeking stakeholder views on the content of the TSOs’ responses  ACER would welcome your views by to by 20 January

12 ENTSOG Winter Outlook 2011/12

13  ENTSOG have published their Winter Outlook Report for 2011/12  The report provides an assessment of the European gas network regarding its ability to a) allow for supply flexibility when meeting the High Daily Demand and b) shows various scenarios of storage stock level during Winter (October to March).  The Key Conclusions were:  Gas stocks available on 1 October 2011 are sufficient to cover at least a 10% increase in the overall European Winter demand in comparison with an average winter (this is equivalent to about 365 TWh of additional consumption, which is as high as the total French Winter demand).  The European gas network is sufficiently robust in all parts of Europe to offer significant flexibility even under High Daily Demand conditions.  The report can be found on the ENTSOG website at:

14 EU CAM Network Code and CMP Guideline Proposal Update Transmission Workgroup 5 th January 2012

15 Capacity Allocation Mechanism (CAM) - Update  Amendments have been made to the CAM Code following the 2 nd Stakeholder Consultation  Main aspects detailed in last months update.  Work continues to finalise the Code. ActivityBy when ENTSOG Finalise Network Code16/01/12 Internal Governance Approval26/01/12 ENTSOG Board Approval06/03/12 Deliver Network Code to ACER09/03/12

16 Congestion Management Procedures (CMP) Guidelines - Update  A revised version was issued 20 th December  DECC seeking GB Stakeholder views on current version.  The 1 st Comitology meeting for Member States is expected to be 26 th January The final version needs to be in place by then.

17 Interoperability Update Phil Hobbins

18 Interoperability – a reminder  ‘Interoperability’ represents the third priority area of European Network Code development  The term refers to the ability of diverse networks to work together - ‘inter-operate’  The aim of the Code is to harmonise the physical / operational differences between TSOs that could impair the functioning of the EU gas market

19 Interoperability Framework Guideline  We had expected ACER to publish a consultation on the Framework Guideline in mid-December but at the time of writing this has not yet happened  Key issues:  Scope of application - all European TSO entry and exit points or cross border interconnection points only?  Gas quality  Capacity calculation  Nomination ‘matching’ processes supported by OBAs

20 Gas Quality Update (1 of 3)  The EC chaired a Gas Quality Harmonisation workshop for member states on 5 th December 2011  Series of set piece presentations from:  The Commission  GL/Poyry  ACER  GIE  EUROMOT  ENTSOG  Marcogaz View the presentations at: en.htm en.htm  Followed by open floor discussion

21 Gas Quality Update (2 of 3)  A ‘theoretical’ discussion followed on the key issues:  Options for delivering harmonisation  Who bears the costs  Who has responsibility  Safety  GL/Poyry have been asked to conclude their cost/benefit analysis by February 2012  The Commission invited further views / analysis and intend to convene a smaller group in the near future with a view to publishing a ‘roadmap’ for the next Madrid Forum in March 2012

22 Gas Quality Update (3 of 3)  CEN Phase 1 Final Report was published just before Christmas  Describes the results of the appliance testing programme in a ‘step’ format, i.e. the wider the wobbe range the more appliances are impacted  There is to be a period of national assessment of the results although the process for this is currently unclear  Phase 2 work (non-combustion parameters and development of the European Standard) has started but will require a definitive conclusion from phase 1

23 EU Updates timetable

24 EU Updates Timetable  Timetable aims to highlight the key items (consultations, workshops, decisions, etc.) NG NTS expect to cover via this agenda item in the forthcoming months TopicTX Workgroup CAM & CMP UpdateFeb 2nd 2012 Interoperability - National Grid NTS response to FG consultation Gas Regional Investment Plan (GRIP) Consultation Feedback. March 2012


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