The North West European Market Parties Platform

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The North West European Market Parties Platform

• Eric van Vliet, Stephan Krieger, Hans ten Berge
• Mini Forum of the Central West Electricity
  Regional Energy Market
• 20 June 2006

Organisation des Entreprises dElectricité Du
Luxembourg
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The NWE market
and the market parties associations
Organisation des Entreprises dElectricité Du
Luxembourg
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Aims of cross border co-operation

• Increase public confidence in the energy market
• Create a trustworthy market
• Attract new market players (e.g. financial
  institutions)
• Take the initiative in market design
• Avoid additional regulation
• Increase market efficiency through regional
  integration

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Status and developments

• Started in February 2006
• Constructive discussions resulted in joint
  positions and actions
• Strong link with Eurelectric work
• Guideline is the road map to a pan European
  electricity market
• Involvement in pentalateral energy forum
• Letter to the ministers has been sent
• Preparation of the mini forum
• Under Eurelectric umbrella

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NWE market issues from market parties perspective

• Short term (2006)
• Transparency
• Intra day markets
• Secondary markets on transmission rights
• Longer term (agenda 2007)
• Addressing regulation and investments in
  interconnection development
• Cross border balancing
• Market functioning

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Transparency
Inventory example
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Transparency implementation

• Aim is to implement the approved Eurelectric
  package
• Market parties focus on implementation of items
  they can influence (generation data)
• Transparency action plan
• Creating a level playing field by implementing
  publication analogue to the EEX format in all 5
  countries by Q4 2006
• Implementation of Eurelectric proposal by Q2 2007
  at the latest
• Further work on definitions has to be carried out

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Intra-day markets

• Harmonisation between TSOs
• Time schedules
• Capacity allocation
• IT systems
• Proposal for a continuous cross border intra-day
  platform
• Requirements for the set up in the NWE market for
  all stakeholders
• Optional step wise approach to keep confidence in
  the system and gradually allocate more capacity

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Secondary market for capacity rights

• Improve firmness and maximisation of allocated
  capacity
• Based on a use it or sell it principle
• Strong support from TSOs is needed
• Single platform
• Administration of deals
• Settlement
• Combine best practices of existing models

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Next steps

• Implementing transparency proposal according to
  the action plan timeline
• Offering guidance from market players for market
  design
• Offering help to overcome obstacles
• Start working on the long term issues