0 Congestion management Congestion management Giedrius Radvila AB “LIETUVOS ENERGIJA” Minifora Vilnius

1 Background  Mini-fora: Agreed: Lithuania will lead the WG on Congestion Management  Memorandum of understanding of the Baltic energy market interconnection plan (17 th June 2009) Agreed: Transparent capacity allocation, based on implicit auction.  Baltic energy market interconnection plan (17 th June 2009) Agreed: a. Congestion management method between Estonia-Latvia-Lithuania and a common position towards Russian and Belarus TSO’s by Q b. Market based congestion management, implicit auction between Baltic countries managed by NPS

2 ES Guidelines on CM  Regulation (EC) No 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity  COMMISSION DECISION of 9 November 2006 amending the Annex to Regulation (EC) No 1228/2003 on conditions for access to the network for cross-border exchanges in electricity  Development and Implementation of a Coordinated Model for Regional and Inter-Regional Congestion Management by ETSO and EUROPEX.

3 Activities towards non ES countries (1)  2009 BRELL Committee has launched the WG on Congestion management in BRELL.  2 WG meetings were held in Minsk.  1 teleconference was organized among Baltic TSOs

4 Activities towards non ES countries (2) Results: The main principle was agreed: proportional reduction of all cross border delivery volumes in case of cross border capacity limitation. Step forward: Baltic TSO will prepare the new draft of the CM regulation until the end of October.

5 Entso-e Baltic see regional WG (1) Terms of Reference Regional Group Baltic Sea: [...] 3.1. The process towards an integrated power market consists of a stepwise process in conjunction with the progressive development of the power market in the Baltic Sea area. The following issues will be the key points: Transparency according to ERGEG's North European Electricity Regional Initiative; Common congestion management and capacity allocation methods between Baltic countries including a common method towards Russian and Belorussian TSOs; Establishment of implicit auctioning of capacity on cables between the participating countries at the Baltic Sea. Enlargement of the implicit auction to cover all the Baltic countries. Establishment of intra-day trade on cables between the partici-pating countries at the Baltic Sea. Enlargement of the intra- day trade to cover all the Baltic countries.

6 Entso-e Baltic see regional WG (2) Terms of Reference Regional Group Baltic Sea: [...] 3.2Deliverables Proposals for rules and principles in the areas listed above. Agreements between the relevant TSOs. Inform the EU Commission, relevant regulators and authorities of the integration progress.

7 WG CM conclusions  Baltic TSO plan to reach an agreement among themselves by the end of October  Congestion management principles agreed among the Baltic TSOs will be approved by the regulative authority of the respective country.  Baltic TSOs will prepare market based congestion management rules by year  Baltic, Belarusian and Russian TSOs agree on temporally acceptable congestion management method by the end of December 2009.

8 Thank you. Questions?