EU common operation produced by “mutualisation” is not seamless

Towards a regional operation of
EU power market & system
(Prague - 13 April 2017)
Jean-Michel Glachant
Director Florence School of Regulation
European University Institute (Florence, Italy)
Common
Power
Operation…
What a
system…
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EU Power System Operation Challenges
• Cross-country operation: common rules for system & market X-border
How to get seamless power operation (as a plane crossing all EU borders from
take-off to landing)
when both “market” and “system” are crossing borders of countries having
separated national authorities
(either regulators NRAs; or system operators TSOs)?
EU is not a federal state like US with a federal regulator issuing federal
regulation
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2 decades to define an EU system design
• All National Markets opening with no common design: 1996-2009
1996: minimal national markets opening + National Transmission
System Operators + Negotiated or Regulated national Third Party
Access
2003: full national markets opening + National Regulatory Authorities
+ Regulated national TPA
• EU common design produced by “mutualisation”: 2009-2019
National Authorities (regulators NRAs; system operators TSOs) are
grouped at EU level to create:
 “EU Guide Lines” # ACER (mutualizing EU regulators)
 “EU Grid Codes” #ENTSO-E (mutualizing EU operation)
 Definition & “national translation” all Grid Codes achieved ~ in 2019
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3 decade to implement EU system design
• National or Regional System Operation to implement
EU design: 2020-2030
Winter Package:
National operators to implement “strongly national”
tasks;
new Regional operators will implement “strongly
regional” tasks
ENTSO-E:
National operators to decide where, when and what to
ask to regional entities that they will create;
EU regions will not follow the same calendar & the same
agenda of voluntary regionalization
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ROCSs (Commission new proposal)
vs RSCs (Advanced TSOs existing)
Regional Operational Centers
Regional Security Coordinators
• New proposal made by
European Commission in
“Winter Package”
(November 2016).
• Set up by advanced TSOs
since 2008; and covering
the whole EU next year
(2018).
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RSCs: “Regional Security Coordinators”
replacing RSCIs next year
Regional Security Coordination
Initiatives
Regional Security Coordinators
•
•
•
•
•
a) voluntary initiatives by some TSOs
since 2008 (Coreso, TSC);
b) not covering the whole EU;
c) not same: Coreso study / TSC
platform;
d) don’t take decisions which stay
with existing national TSOs.
•
•
(a) mandatory as EU common
“System Operation Guidelines”;
(b) covering the whole EU next year
(2018);
(c) with the same 5 tasks:
–
–
–
–
–
•
Short Term Security Analysis: risks &
remedial actions for day & hours ahead
Coordinating Grid outages,
Coordinating cross-border capacity
calculation,
Studying Adequacy Generation,
Consumption & Grid 1 week ahead,
Creating common grid model & data feed:
hours ahead to year ahead;
(d) don’t take decisions which stay
with existing national TSOs.
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ROCs: “Regional Operational Centers”
// don’t take decisions which stay with existing national TSOs
Do 4 Basics
3 more If & when Entso-e agrees
1. At generation shortage: to increase
transmission capacity towards the
country suffering the shortages;
2. Calculating daily balancing reserves
at regional level; creating a regional
platform offering these balancing
reserves to all countries needing
them;
3. Doing independent ex-post analysis
of countries’ system incidents;
4. Managing flows of money between
TSOs for X-B congestion rent & cost
sharing
1. Identifying risk scenarios and proposing to
countries preparation plans;
2. Complement Entso-e EU outlooks with
regional adequacy assessments;
3. Organizing training and certification for
TSOs staff – up to regional simulators.
1 more If & when NRAs & MS agree; or with a
new voted EU Regulation
•
Decision-making powers (as for remedial
actions or capacity calculation) might be
transferred to ROCs.
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Fti Report approved by Entso-E (December 2016)
“Adoption of a gradual and modular process for
the implementation of ERC”
(Page 73): What’s different from Winter Package?
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How to conclude?
#Not so difficult… # More a battle of twins?
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My own conclusions
• EU common design produced by “mutualisation” is not yet
seamless operation: 2020-??
Seamless market & system require grid capacity calculation &
grid congestion management to be seamless (= as with no
borders).
1- Coordination of TSOs actions should overcome “national
control zones rights”
2- Allocation of costs & benefits too should overcome “national
control zones rights”
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My own conclusions (2)
• EU common operation produced by “mutualisation” is not
seamless: 2017-??
3- Definition of all EU “market bidding zones” should overcome
“national priority rights” to follow actual “EU grid structural
congestions”
4- An EU wide grid investment process should overcome
“national priority rights” to retrieve inefficient “EU grid structural
congestions”
5- EU push for renewables in meshed grid & open market makes
(1-4) more than sensible
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Thank you for your attention
Email contact: [email protected]
Follow me on Twitter: @JMGlachant already 25 000+ tweets
My web site: http://www.florence-school.eu
www.florence-school.eu
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