Les nouvelles modalités
d’integration des marchés et des
bourses de l’électricité
Colloque AFDEN Réseaux et territoires, du local à l’international
Paris, 01-12-2016
Philippe Redaelli, secrétaire général EPEX SPOT
© EPEX SPOT – All rights reserved – Strictly confidential
1
EPEX SPOT, a European story
•
•
•
•
•
•
•
Electricity spot power exchange
Created in 2008, roots going back to 2000
Over 275 Exchange Members
566 TWh of traded volume in 2015
Societas Europaea headquartered in Paris
Over 150 employees coming from 17 countries
Offices in Amsterdam, Bern, Brussels, Leipzig, London,
Paris and Vienna
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
2
A shareholder structure in line with the
industry needs
© EPEX ©
SPOT
©
EPEX
EPEX
– SPOT
AllSPOT
rights
– All
–reserved
All
rights
rights
reserved
–reserved
Strictly confidential
3
Ways of trading power on exchange
CAPACITY
MARKET
>
DAY-AHEAD
MARKET
>
INTRADAY
MARKET
One year
before delivery
One day
before delivery
< 1 hour
before delivery
Value
CAPACITY
Value
PRODUCTION
Value
FLEXIBILITY
>
FUTURES
MARKET
Year/Month/Week
before delivery
Fluctuations
are HEDGED
Integrated Clearing Solution
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
4
CACM and REMIT, regulatory driver
and watchdog of the Internal
Electricity Market
© EPEX SPOT
© EPEX
– AllSPOT
rights –reserved
All rights–reserved
Strictly confidential
5
CACM regulation defines the role of markets
in the networks operations
© EPEX SPOT – All rights reserved – Strictly confidential
6
CACM partially defines what exchanges do
and how they coordinate with TSOs
 Clearer governance and allocation of tasks between TSOs and
PXs. Power exchanges are
 “NEMOs” : nominated electricity market operators,
entities designated by the competent authority to
perform tasks related to single day-ahead or single
intra-day coupling
 “MCOs” : market coupling operators function means the
task of matching orders from the day-ahead and intradaymarkets for different bidding zones and simultaneously
allocating cross-zonal capacities
 CACM defines Target Models
 Competition facilitated for NEMOs
EPEX
–– All
rights
© EPEX©
©
SPOT
EPEX
– SPOT
SPOT
All rights
All
reserved
rights reserved
reserved
– Strictly confidential
7
Two « Target Models » for market integration,
now set in the EU Law
Day-Ahead Market Coupling
CACM
Regulation
Intraday Market Coupling
(EU) 2015/1222
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
8
Day-Ahead Market Coupling already almost
achieved
•
Multi Regional Coupling (MRC) is a
day-ahead price coupling now covering
85% of European electricity demand
•
So far a voluntary cooperation between
PXs and TSOs
•
PXs operate the core market coupling
processes through the “PCR”
cooperation
PCR EVOLUTIONS
NWE, Baltic
SWE
Italy, Slovenia
Feb 2014
May 2014
Feb 2015
Switzerland
Technically feasible
CZ, SK, HU, RO
Separate PCR solution,
end 2014
Austria-Slovenia
July 2016
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
9
XBID Target Model implementation is more
decentralised
•
XBID is a mechanism of continuous
cross-border intraday trading
•
So far a voluntary cooperation between
PXs and TSOs
•
PXs contract the XBID system to
Deutsche Börse AG
1
13
4
7
•
2
3
XBID is expected to go-live end 2017,
while Local Implementation Projects
(“LIPs”) set-up XBID on each borders
10
6
8
5
11
N
N
1st go-live wave LIP
9
14
12
2nd go-live wave LIP
EPEX
–– All
rights
© EPEX©
©
SPOT
EPEX
– SPOT
SPOT
All rights
All
reserved
rights reserved
reserved
– Strictly confidential
10
A wider scope for integrated markets
development and competition
Liberalised NEMO market
Legal NEMO monopoly
EPEX SPOT acting as NEMO
CACM not applicable
• CACM facilitates market entry
for NEMOs in a number of hubs
• Competition and innovation as a
result
• Development of a European
trading offer is at reach
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
11
CACM timeline for implementation
CACM IMPLEMENTATION
EXPECTED TIMELINE
Target is end 2017. But there are delays….
2016
2015
2017
2018
DA*
ID**
+10m
+2m
Feb.’16
+2m
+2m
+4m
+6m
* NEMOs are ready to couple their markets in
the DA market coupling target model
** NEMOs ready to couple their markets in
the ID market coupling target model
Designated NEMOs can start using
passport rights in other markets
with a 2 months prior notice to the
local NRA
© EPEX SPOT – All rights reserved – Strictly confidential
12
CACM does however not solve everything
? Financing of market coupling is uncertain
? Compatibility between national regulatory decisions
? Room for innovation aside the EU Target Models
EPEX
–– All
rights
© EPEX©
©
SPOT
EPEX
– SPOT
SPOT
All rights
All
reserved
rights reserved
reserved
– Strictly confidential
13
REMIT is now in place to prevent market
abuse
Transparency obligation
Prohibition of market
manipulation and market abuse
Reporting obligation
Fully operational in 2016
EPEX
–– All
rights
© EPEX©
©
SPOT
EPEX
– SPOT
SPOT
All rights
All
reserved
rights reserved
reserved
– Strictly confidential
14
Market design going forward
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
15
Operation at a European scale now at reach
The widest range of operation and services in
Europe, covering today 50% of power consumption
Current own markets
Market expansion
Market operation services and 25% shares
Market operation services
Market coupling services
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
16
Towards flowbased market coupling
 More integration between exchanges
and TSOs
 Flow based is a methodology which
takes into account the impacts of
cross-border exchanges of electricity
on network security constraints when
optimizing the market flows
 More interconnection capacity
available for the market
 Maximization of social welfare
© EPEX SPOT – All rights reserved – Strictly confidential
17
Decentralized Capacity Market in France
goes-live in December 2016
• Have peak capacities
certified by RTE
• Offer certificates to the
market
• Secure/buy guarantees to
cover peak consumption
of their customers
• Penalty otherwise
• Can choose between
certification of demand
response as capacity,
• or reduction of
consumption load
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
18
Decentralized Capacity Market in France
goes-live in December 2016
Read more: http://www.epexspot.com/document/36073/CapacityMarket_161025_EN_v4_web.pdf
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
19
Development of renewables has boosted
need for flexibility
Solar and Wind Installed Capacity in Germany
Source: Statkraft
What is flexibility?
System
level
Ressource
level
« Ability of the system to accomodate increasing levels of
uncertainty while maintaining satisfactory levels of
performance »
« Ability of a ressource to start-up quickly and adjust load
output to changing market conditions»
© EPEX SPOT – All rights reserved – Strictly confidential
20
Markets are there to optimize.
Automatization is developing.
Big data 
Robot trading 
Block-chain ?
12 Independent Software Vendors (ISVs) are already
certified to directly connect to EPEX SPOT markets
R&D is there to improve the efficiency of optimization
through markets
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
21
Decentralized/Local markets: yes but how?
Local markets are seen as a solution to
many problems currently occurring because
of the growing share of renewable energies
and distributed generation.
SMART
MARKETS
ENERGIEWENDE
- APPSTORE
Connection to existing exchanges, seems
intuitively the best option but network
constraints need to be tackled.
SMART
GRID
?
Fully
decentralized
Markets for Flexibility
© EPEX SPOT – All rights reserved – Strictly confidential
BIG DATA &
ANALYTICS
Fully
centralized
?
22
VUCA! New era, new challenges
Distributed
resources
Massive
growth of RES
2. NATIONAL CHALLENGES
• Generation capacity
• Flexibility
• DR access, aggregators…
• Balancing
1. INTERNATIONAL CHALLENGES
• Transmission planning and investment
• Capacity calculation (includes Bidding
Zones, XB Redispatch)
• Security planning/generation adequacy
and mutual reliance
No more easy wins:
IEM now needs to overcome
national myopia – Can
Winter Package help?
New Market Design?
“Market” = efficient price formation
© EPEX ©
SPOT
EPEX
– SPOT
All rights
– All
reserved
rights reserved
– Strictly confidential
23
Thank you for your attention!
EPEX SPOT Paris
5 boulevard Montmartre
75002 Paris
France
Tel +33 1 7303 9600
[email protected]
EPEX SPOT Amsterdam
Atlas Arena Amsterdam – Australia Building
Hoogoorddreef 7
1101 BA Amsterdam
The Netherlands
Tel +31 20 305 4000
EPEX SPOT London
11 Westferry Circus
Canary Wharf
London E14 4HE
United Kingdom
EPEX SPOT Leipzig
Augustusplatz 9
04109 Leipzig
Germany
EPEX SPOT Bern
Marktgasse 20
3011 Bern
Switzerland
EPEX SPOT Wien
Mayerhofgasse 1/19
1040 Wien
Austria
EPEX SPOT Brussels
Boulevard de l’Impératrice 66
1000 Bruxelles
Belgium
[email protected]
© EPEX SPOT – All rights reserved – Strictly confidential
24