Day-Ahead Market Coupling Algorithm approval coordination NWE IG, Schipol, 28. March 2012

2 Background. Cross-regional roadmap: ACER shall coordinate “NRAs’ “endorsement” of the starting point of the PCR algorithm”. All NRAs shall “agree on a common, coordinated approval/review process for the algorithm”. This agreement shall also be finalised in Q and it is dedicated also towards the final algorithm to be used in operation in NWE and EPC.. NWE Day-Ahead Cross-Regional Coordination Committee (CRCC) drafted common approval process for the algorithm with the aim to align as far as possible aspects of national processes and to limit duplication of work.. The CRCC also established a Task Force to deal with this subject

3 Endorsement in the Letter of Comfort. NRAs and ACER welcome ENTSO-E’s positive assessment of the starting point algorithm. Encourage further and fast development of the PCR algorithm by Power Exchanges. General TSO requirements, once finalized, subject to NRA approval. Specific use of requirements / functionalities, subject to NRA approval. Need to ensure stakeholder involvement (PXs). Provide endorsement of the choice of algorithm starting point (COSMOS)  Condition: necessary governance and cooperative arrangements can be made in due time. Ongoing communication and cooperation between NRAs and PXs about the algorithm development

4 Further process. ACER letter of comfort. Task Force involvement under the industrialization phase of the PCR algorithm (discussions on side constraint, simulation results, etc.)  more detailed assessment of the algorithm. Task Force will give a recommendation for approval of algorithm (to the NWE CRCC and ACER). Recommendation and Assessment can be used as input to national approval processes

5 Thank you for your attention