2nd Users Of The Grid Workshop

1

• 2nd Users Of The Grid Workshop
• 28 May 2002, Brussels
• Market Based Mechanisms Such As
• Secondary Market
• Dr. Fritz Gautier

2
Market Based Mechanisms

• 1. Secondary markets
• TSO facilitate trading on secondary market
• Freedom of shippers to act on secondary market
• Booked capacity may be released to TSO
• Importance of secondary markets for
• efficient utilisation of capacity
• flexibility of capacity market
• Secondary markets provide short-term capacity

3
Market Based Mechanisms

• Discourage capacity hoarding
• Commercial incentive for shippers to book
  tailor-made
• Availability of different capacity products
  (short-/long-term)
• Functioning secondary markets
• Re-utilisation of unused capacity by capacity
  release to TSO
• TSO to market released capacity
• Tariff structure (fixed element) as disincentive
• Use-it-or-loose-it (sanctity of contracts!) not
  necessary