Presentation on theme: "GRI South South-East Region Vienna, Austria, 2 December 2010"— Presentation transcript:
1 GRI South South-East Region Vienna, Austria, 2 December 2010 9th SG Meeting, GRI SSEGRI South South-East RegionVienna, Austria, 2 December 2010
2 1. AgendaAgenda TopicsRapporteur10.00OpeningApproval of the agenda / Approval of minutes of the 8th SG meetingCo-chairs10.152. a) Security of Supply Regulation – the regional dimensionb) Energy Infrastructure PackageEuropean Commission,Jean-Arnold Vinois, DG ENER10.402.1 Consultation of Preventive Action Plans and Emergency Plans at regional level (Articles 4.2, 4.3 an 4.4)SG - Tour de Table11.002.2 Fulfilment of infrastructure standard on regional level (Article 6.3)11.202.3 Fulfilment of supply standard on regional level (Article 8.5)11.402.4 Cooperation of NRAs regarding the costs of enabling permanent bi-directional capacity (Article 6.8)12.002.5 Regional cooperation (Annex IV)12.152.6 Vysegrad Group Regional CooperationMr. Marias, Ministry of Economy of the Slovak Republic12.302.7 Polish emergency plan / Austrian Emergency PlanGaz-System, E-Control12.452.8 Status of reverse flow projectsTSOs13.00LUNCH
3 1. Agenda Agenda Topics Rapporteur 14.00 3. Future role of the Regional InitiativesEuropean Commission /ENTSOG4. Update on actual developmentsSG14.204.1 Italy – Launch of Gas Exchange P-Gas and authority Investigation on Italian Gas marketAEEG14.304.2 Austria – Launch CEGH futures marketCEGH14.454.3 Open Season Procedures (SK-HU interconnector, LBL, …)TSOs15.154.4 New Operator on Polish Yamal transit pipelineGaz-System15.304.5 GATRAC bundled day-ahead capacityMr. Kleefuss, Net4Gas15.454.6 Regional 10YNDP16.004.7 For Information: “European discussion on target model for the European gas market” (Workshop on in Vienna)E-Control16.15AoB & Closing
4 1.b) Approval of minutes of 8th SG meeting Comments by Hungarian Energy Office included!revised version available since 5 July
5 2. a) Security of Supply Regulation – the regional dimension Presentation not available
6 2. b) Energy Infrastructure Package Presentation not available
7 2.1 Consultation of Preventive Action Plans and Emergency Plans at regional level Art. 4: Establishment of a preventive Action Plan and an Emergency PlanCompetent authority to establish a Preventive Action Plan and an Emergency Plan on national levelConsultation on a regional levelPreventive Action Plan and Emergency Plan can be established on a regional levelNo later than 3 December 2012, the plans need to be published
8 Does a Prevention Action Plan or Emergency Plan already exist? 2.1 Consultation of Preventive Action Plans and Emergency Plans at regional levelDoes a Prevention Action Plan or Emergency Plan already exist?Can the GRI be regarded as the right platform to coordinate Prevention Action Plans and Emergency Plans?Is it necessary to create a Regional Emergency Plan or Prevention Plan?
9 2.2 Fulfilment of infrastructure standard on regional level (Article 6.3) Art. 6: Infrastructure standardby December , the infrastructure standard is applicable to a MS infrastructure (meaning that in the event of a disruption of the single largest gas infrastructure, the capacity of the remaining infrastructure can satisfy total gas demand of the calculated area)Competent authorities may decide that this criteria can be fulfilled at a regional level instead of a national levelIn which MS (or parts of MS) of the region should the N-1 formula be calculated on a regional level?
10 2.3 Fulfilment of supply standard on regional level (Article 8.5) Art. 8: Supply standard (1/3)Competent Authority to take measures to ensure gas supply to the protected customers of the Member State in the following cases:extreme temperatures during a 7-day peak periodany period of at least 30 days of exceptionally high gas demandfor a period of at least 30 days in case of the disruption of the single largest gas infrastructure under average winter conditions.
11 2.3 Fulfilment of supply standard on regional level (Article 8.5) Art. 8: Supply standard (2/3)increased supply standard going beyond the 30-day period shall:comply with Article 3(6);not unduly distort competition or hamper the functioning of the internal market in gas;not impact negatively on the ability of any other Member State to supply its protected customerscomply with the criteria specified in Article 11(5) in the event of a Union or regional emergency.
12 2.3 Fulfilment of supply standard on regional level (Article 8.5) Art. 8: Supply standard (3/3)Competent Authority shall identify in the Preventive Action Plan and the Emergency Plan how any increased supply standard or additional obligation imposed on natural gas undertakings may be temporarily reduced in the event of a Union or regional emergency.Are national regulations which prohibit the fulfilment of the supply standard on regional or Union level in place?
13 2.4 Cooperation of NRAs regarding the costs of enabling permanent bi-directional capacity (Article 6.8)TSOs shall enable permanent bi-directional capacity on all IPs by December 3, 2013 (except where an exemption is granted)NRA shall take into account the efficiently incurred costs of fulfilling the infrastructure standard and the costs for enabling permanent bi-directional capacityNRAs shall jointly decide on cost allocation, in case the capacity is not required by the marketDo projects exist that require a joint decision of the concerned NRAs on cost allocation?
14 2.5 Regional cooperation (Annex IV) ANNEX IV: Regional Cooperationcooperation between the following Member States can enhance their individual and collective security of gas supply:- Poland and the three Baltic States (Estonia, Latvia and Lithuania),- Bulgaria, Greece and Romania,- Slovenia, Italy, Austria, Hungary and Romania,- Poland and Germany,- Germany, the Czech Republic and Slovakia,- othersDoes the proposed regional cooperation between the Member States listed in Annex IV of the SoS Regulation (Regulation (EU) No 994/2010) meet the market participants’ expectations for enhanced collective security of supply?
16 Visegrád Group (V4) Regional Cooperation in security of gas supply 9. Meeting of Gas Regional Initiative SSE ERGEGVienna 2 December 2010Visegrád Group (V4) Regional Cooperation in security of gas supplyMinistry of Economy of the Slovak RepublicMiroslav Marias16
17 Visegrád Region Objectives in Energy Sector Improvement of stability in Central European Area and mutual cooperation, including energy securityCoordination of Strategic ObjectivesPreparation of common positions for EU strategic documentsPreparation and implementation of common energy infrastructure projectsJoint effort for gaining EU financial resources for projects to diversify oil, gas and electricity supplyExchange of experiences during implementation of energy legislationGRI SSE,V4 regional cooperation in SoS gas1717
18 V4 Energy Working Platforms V4 High level group (HLG) for energy securityLevel of State Secretaries or Special EnvoysMeeting onV4+ Working groups for oil and gas energy securityExpert level, government and industry representativesFirst Meeting onV4+ Working group on north-south gas interconnectionGRI SSE,V4 regional cooperation in SoS gas18
19 V4+ Budapest Declaration Adopted on 24 February 2010 by Prime Minsters of V4+ countries (SK, CZ, HU, PL, SI, RO,BG, HR, AT)Strenghtens regional dialogue for existing and new suppliersPlans for joint development in oil and gas infrastructureHighlights North-South interconnections in the regionSupports finalisation of EU internal market to ensure mutual regional support in case of crisisEnables cooperation and joint effort towards EU institutiuons supporting joint energy infrastructure projectsCreation of ad-hoc working groups, having objectives to work on concrete cooperation areasGRI SSE,V4 regional cooperation in SoS gas1919
20 Gas Diversification Projects V4+ Budapest Declaration Construction of North South Gas Corridor, which will connect LNG terminals in Poland and Croatia passing through all V4 countriesPromotion and realisation of Nabucco and NETS projectsSupport for LNG terminal in Constanca (RO) and other LNG and CNG terminals in Black Sea area.GRI SSE,V4 regional cooperation in SoS gas2020
21 V4 – Slovak Presidency (July 2010 - June 2011) Increase security of supply – assessment of joint V4 cooperation in crisis situationsActivities towards oil and gas source and routes diversificationImprovement of regional gas interconnection for additional gas supplies including reverse flowsCreate a preliminary technical design of the North-South Gas Corridor project - capacities, routes, financingStrengten electricity and gas markets integrationTo increase market liquidity, improve market competition and increase energy securityCreate joint initiatives to receive higher allocation of the EU financial support for energy infrastructure projects, in particular from the EU cohesion policy fundsGRI SSE,V4 regional cooperation in SoS gas2121
22 North – South Gas Corridor Composed of many national and crossborder projects of gas interconnections in V4 countries and Croatiaalready existing or in the various stages of planning or constructionLNG terminal in Poland, Swinjousceannual capacity of 5 bcmplanned for launching in 2014later expected further capacity increaseAdria LNG terminallocated at Krk island in Croatiaplanned annual capacity of 10 – 15 bcmplanned launch after 2017V4 Slovak Presidency Objectiveset up preliminary technical design - capacities, routes, financingGRI SSE,V4 regional cooperation in SoS gas2222
23 Map of North - South Gas Corridor 126.96.36.199.188.8.131.52.184.108.40.206POLSKIE LNG220.127.116.11.71.81.9LNG ADRIACrosssborder Projects:2.1 PL - CZ2.3 CZ - SK3.2 SK - HU4.1 HU - Croatia1.9 PL - SK23GRI SSE,V4 regional cooperation in SoS gas
24 V4 regional cooperation in SoS gas Thank YouFor Your AttentionMiroslav MariasDepartment of International Energy RelationsMinistry of Economy of the SRMierová 19BratislavaSlovakiaGRI SSE,V4 regional cooperation in SoS gas2424
25 2.7 Polish emergency planSee attached pdf on CEER Homepage
27 Austrian emergency plan 2 December 2010, Vienna
28 Agenda Legal basis for SoS measures National emergency plan Monitoring the supply situationAssessment of emergency measures in the recent crisisConclusion
29 1. Legal basis for SoS measures Austrian Energy Emergency Actcontains tasks and responsibilitiesenables Minister of Economy, Family and Youth to enact emergency measuresEnergy Emergency Measures Order for Gasto be enacted by Minister of Economy, Family and Youthin case gas supply cannot be guaranteed under market conditionsEnergy Emergency Data Order for Gascontains rules on data needed to monitor the supply situationissued by E-Control
30 2. Involvement of authorities Enacts emergency measuresMonitors and prepares measures„Manual for the prevention of natural gas crises“Operational Implementation
31 2. SoS roles and responsibilities – 1 Minister of Economy, Family and YouthCan order energy emergency measures aimed at mitigating effects of gas supply disruptionsMeasures include partial or complete reduction of consumption by industrial users, obligatory fuel switching for power stations etc.E-ControlPreparing and coordinating potential measures to be taken in the gas market (“Manual for the prevention of natural gas crises”)Collecting data for the preparation of energy emergency measurespast, current and forecasted data for demand and supplycontact persons for emergency situationsdata on industrial gas users and consumption patternsAnalyzing and evaluating the data – monitoring security of supplyPracticing emergency actions and measures
32 2. SoS roles and responsibilities – 2 ISO (“AGGM”)responsible for the operational implementation of the measuresOther participants in crisis prevention (suppliers, producers, etc.)Implementing measures according to the Energy Emergency OrderEstablishing individual crisis management plansProviding relevant data to E-Control and AGGMSupply data (contracted supplies and potential for additional supplies, available storage capacities)Technical data from large consumers > 100,000 kWh/h p.a. (actual consumption, substitution possibilities, rules and restrictions of the plant)
34 2. Manual for the prevention of natural gas crises E-Control in cooperation with market participants has developed a manual which aims at describing and making transparentthe roles and responsibilities of the parties involved in preparing and implementing emergency measuresthe processes with relation to the implementation of emergency measuresThe manual includesIndicators and triggersOrganizational chartEmergency action plansSoS MeasuresEnergy Emergency Measures OrderDefinitions of the measures
35 2. Triggers for measures are defined forecasted consumption = available supply capacity andsituation is likely to become worseTrigger 2forecasted consumption > available supply capacity (but < total supply capacity) andcritical pressure in transmission pipelinesTrigger 3forecasted consumption > total supply capacity andcritical pressure in transmission pipelines
36 2. Implementation of the Energy Emergency Order Possible measures includeLimiting the consumption of and/or substituting power stations and industrial customersDisconnecting customers > 100,000 kWh/h p.a.Calling on customers to cut down on gas consumptionFurther limitations and disconnections
37 2. Implementation of the Energy Emergency Order Disconnections/reduction in supplyWhen disconnecting or reducing the supply to large customers in case of severe supply disruption the Authority has to take into account the following criteria:degree of urgencysubstitution possibilitiesmacroeconomic impacts andeffects on the district heating supply
38 3. Monitoring the supply situation Effective monitoring of the supply situation is key for proportionate and targeted emergency measuresMarket mechanisms should allowed to function as long as possibleEnergy emergency measures only as last resortE-Control continuously monitors the development of supply and demand
39 3. Monitoring – data analyzed I Injections and withdrawals from the grid (hourly/weekly) separated forImport/export/storage/productionSupply to final customersSupply to large customers (incl. forecasted nominations)Own consumption of network operatorsDevelopment of supply (weekly)Supply capacity available for the supply of the Austrian domestic market (kWh/h)For each injection point (import, production, storage)Forecasts for the following 4 weeksUpdate of information if changes occurAdditional (contractual) supply capacity (kWh/h)Potential for the supply of the Austrian domestic marketStorage levels/withdrawal rate
40 3. Monitoring – data analyzed II Technical data of large consumers (yearly), especiallyMax. capacity in kWh/h for the production start-up processMax. capacity in kWh/h during operationIndication of pressure neededPossibility for substitution of natural gasCapacity which can be substitutedAlternative fuel used for substitutionStart-up time to switch to alternative fuelConsequences for large customers in case of supply disruptionLegal and other obligations to be considered (e.g. environmental, trade regulations,...From storage system operators (yearly)Storage capacityMax. injection and withdrawal rateAvailable cushion gas for each storage facilityFrom producers (yearly)Max. production capacity
41 3 defined triggers with predefined measures 3. Example: SoS monitoring – weekly data3 defined triggers with predefined measuresDemandImportsStorageProduction
42 4. Supply cut was solved by market mechanisms Full supply of all customers during the whole critical periodMarket for balancing energy worked well and helped smaller suppliers to be balancedSupply cut was compensated by voluntary commitments of gas-fired power plants and large industrial customers to optimize their supply portfolio (fuel switch, peak shaving,...)Increase of imports from Germany via Oberkappel by Austrian suppliers to reduce the storage withdrawal ratePartly compensated by storage capacities from Gazprom and Wingas Storage in HaidachNew and flexible transport possibilities (Penta, WAG, KIP,...) have been realized
43 5. ConclusionEmergency measures have been prepared and tested before the January 2009 crisisRoles and responsibilities as well as the processes have been made transparentE-Control monitors the supply situation and prepares measures to be enacted by the Minister of Economy, Family and YouthEffective monitoring of the supply situation is key for proportionate and targeted emergency measuresIndependent System Operator carries out measures
47 Project DescriptionsReverse Flow Überackern: Allow reverse flow from SUDAL and/or ABG pipelines into PENTA West pipelineInstallation of by-pass piping and valvesSplitting of the separatorsInstallation of metering for low flow ratesInvestment € 1,150,000Interconnection TAG: Complete the Baumgarten turntable to allow physical wheeling between all major systems without capacity restrictionsConnection of TAG to an already existing collectorTo be used only in case of emergencyInvestment € 850,000
48 Status Reverse Flow Überackern Construction completed Begin of operation in JanuaryInterconnection TAGConstruction almost completedTie-in together with shut-down for installation of TAG RFBegin of operation in October
49 AcknowledgementThanks to the Commission officers for their cooperation and support
50 Reverse flow projects: Achieving full reverse physical operation of WAG GRI-SSEVienna,
51 The contextIn the past BOG had expanded the WAG system in reverse direction, physically up to the entrance of the Baumgarten station.The January 2009 crisis showed the necessity to bridge also the “missing link” to Slovakia in case of any further crisis.This required an investment of approx3,8 MEur, for which BOG receives a 50% suppport of European Energy Program for Recovery (EEPR)X
52 Some highlightsSpeediness of the project decision, engineering and construction phase:Application for EEPR and grant of support accelerated the decision process for this project.Engineering was commissioned by BOG to OMV Gas GmbH (OGG) engineering department. The engineering of OGG is common to all Austrian TSOs, which allowed to accelerate the process for ordering critical equipments (valves, Tee pieces, …).Cooperation in order to minimize the impact on the shippers: ”not to create a crisis in October 2010 when trying to avoid potential future crises”Efficient preparation by the OGG engineering department to minimise the interruption duration.Close cooperation with OGG and Eustream in order to define a possibility of temporary measurement of flows (allowing limited use instead of total shutdown).BOG´s interruption procedure maximises the use of the available capacity.Request to shippers for “pre-nominations” in order to technically organise the gas flow and to anticipate dispatching issues by using flexibilities.
53 : further developments considered Our conclusions: achievements: further developments consideredIncreased SoS for SlovakiaTechnical procedures: still some fine tuning between adjacent TSOs is possible (e.g. re-opening valves after completion of works, early technical information, … ).Foto: SITA/Jozef JakubčoA step to reinforce european solidarity and achieve the goals of EEPR.Dispatching procedures: still some improvements possible for anticipation of possible flows (early info to shippers), and for adapting the rules for re-nomination during such works (e.g. request in the context of french social crisis).A process which demonstrates the cooperations between TSOs for quick and efficient answers, with limited impact on shippers. Feedback for the ENTSOG interoperability working group.
59 4.1 authority Investigation on Italian Gas market
60 Launch of M-Gas and Authority Investigation on Italian Gas market South South East Region9th SG meetingWien, December 2, 2010
61 Launch of the spot market Law no. 99 of 23 July 2009 came into force. Article 30 of the Law vests GME company (Gestore Mercati Energetici) with exclusive responsibility to economically manage the natural gas market under principles of neutrality, transparency, objectivity and competition.The GME is managing this market as established by law 99/09 (23 July 2009)Since then a step-wise approach towards full implementation starting from the implementation of P-GAS
62 Mainly import obligations First stepP - GASContinuous TradingAuctionsMainly import obligationsRoyaltiesIn operation from May 2010 – GME operates as a broker no central counterpartyContinuous trading for import shares prescribed by Italian law (and other volumes) and auctions for production royaltiesPhysical delivery at the Italian Virtual Trading Point PSV
63 Second stepM - GASContinuous TradingClosing auctionDay AheadIntradayIn operation from Dec – GME operates as central counterpartyDay ahead: continuous trading with closing auction at 10 am D-1Intraday: continuous tradingPhysical delivery at the Italian Virtual Trading Point PSV
64 M - GAS Second step Market units: day (6.00 to 6.00), Mwh/day, €/MWh Continuous TradingClosing auctionDay AheadIntradayMarket units: day (6.00 to 6.00), Mwh/day, €/MWhDay ahead continuous trading from 8.00 D-3 to 10 am D-1Closing auction from 10 – to 11 am D-1 (registration on PSV at am D-1)Intraday from 2 pm D-1 to 3.30 D (registration on PSV at 4 pm D)
66 Investigation by the Authority /2 On 23 July 2010 Transitgas pipeline suspended operations due to a severe outageNo import available at GriessPass IPThe Ministry issued a decree – followed by an Authority deliberation - in order to ease the full exploitation of existing injection capacities for storageIn order to overcome the import reduction it is essential to maximise import from other entry points and in particular the Tarvisio entry point connecting TAG pipelineAlso the market spreads registered in this period seem to justify a full exploitation of import capacities…
87 The SK/HU Interconnector: Open Season II Tariffs remain unchanged but:more flexibility in terms of lots (as regards duration)lower threshold for economic viability (as to minimum requirements for bookings)less strict rules for financial guaranteesstart of operations shifted from 2013 to 2014Shippers’ information meeting 15 November Submission of binding bids until 8 December 2010
93 GRI SSE 9th Stakeholder Group Meeting „LBL“ - Lanžhot – Baumgarten – LineVienna, 2 December 201093
94 Potential Investment Projects LBL – Market Survey … …launched on 22 June 2010; corresponding information distributed via OCB® - newsletter…window for placing interest was open until 22 September 2010…was published on both websites (net4gas and OMV Gas GmbH)…was carried out with online template and collected via automated database entries…successfully completed -> 12 companies indicated interest in booking capacity94
95 LBL Project (Goal – Description) The project sponsors plan to connect their pipeline systems andcreate additional transportation possibilities between Lanžhot and theInteractive Trading Area Baumgarten (the location of theCentral European Gas Hub – CEGH)Goals:Enhance security of supply by offering more flexibility in transportation services availableEnhance security of supply by offering additional downstream transportation possibilities for planned pipeline projects diversifying the existing pipeline routesEnhance security of supply by linking market areas and their storage facilitiesProject DescriptionProjected Dimension DN 800 PN 7,35 MpaLength is approximately 60 km (46 km on in A and 14 kmin CZ border) crossing will be nearby the village Reintal.Requested capacity (in Market survey in 2010):CZ to Austria: 22,9 mcm/dAustria to the Czech Republic: 18,6 mcm/d95
101 Driver for cross border gas trading Current regulations request intensified cooperation between adjacent TSOs concerning allocation of cross border capacities, inter alia:Gas Transmission Directive 715/2009Framework Guidelines “Capacity Allocation Mechanism“ and „Gas Balancing Rules“New German Gas Network access ordinance (GasNZV from )German “Festlegungsverfahren” for a Standard Capacity ContractONTRAS and NET4GAS therefore intend to further simplify cross border gas transports by enhancing their cooperation aiming to meet traders needsIn facilitating closer cross border cooperation the TSOs are still bound to existing national legal frameworksIn developing a cooperation model working across different frameworks ONTRAS and NET4GAS aim to create a role model for Europe101
102 Cross border VP2VP product Direct connection between respective VPsBundled products with one single contract (similar “train tickets”)Bookable with each participating TSO on FCFS-principleFirst product:Firm daily capacityBookable one to more day(s) ahead*Bookable from [ ]No renominationVPVTP* More days ahead will be used to allow bookings over the weekend and holidays and to align capacity booking periods with trading times on the EEX Gas Spot Market102102
103 GATRAC a Role Model for Europe Demand for easier cross border gas transports can be met rather quickly by expansion of the GATRAC cooperationBenefits:No need to amend legal framework if national legal rules are not mandatory for cross border capacitiesSimilar procedures and contracts for all routesTTFVP GaspoolVP NCGVTPPEGCEGHcurrent scope of cooperationpossible future routes103103
104 4.6 a) Regional 10YNDPWork Programme GRI SSE :
105 4.7 European discussion on target model for the European gas market For Information: “European discussion on targetmodel for the European gas market” (Workshopon in Vienna)
106 AoBNext meeting in Milan?Outcome of Target Model Workshop? – Consequences for the Region?Outcome of Consultation on EC communication on RIs (Meeting in late March?)