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Congestion management Giedrius Radvila AB “ L IETUVOS ENERGIJA ” 200 9 -09-16 Minifora Vilnius

Learn about the agreement on congestion management in the Baltic energy market and the development towards regional integration. Includes activities, guidelines, and conclusions on implementing congestion management principles.

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Congestion management Giedrius Radvila AB “ L IETUVOS ENERGIJA ” 200 9 -09-16 Minifora Vilnius

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  1. Congestion managementGiedriusRadvilaAB “LIETUVOS ENERGIJA”2009-09-16MiniforaVilnius

  2. Background • 2009-04-24 Mini-fora: • Agreed: Lithuania will lead the WG on Congestion Management • Memorandum of understanding of the Baltic energy market interconnection plan (17th June 2009) • Agreed: Transparent capacity allocation, based on implicit auction. • Baltic energy market interconnection plan (17th June 2009) • Agreed: a. Congestion management method between Estonia-Latvia-Lithuania and a common position towards Russian and Belarus TSO’s by Q1 2010. • b. Market based congestion management, implicit auction between Baltic countries managed by NPS 2011-2013.

  3. 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.

  4. 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

  5. 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.

  6. 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.

  7. Entso-e Baltic see regional WG (2) • Terms of Reference Regional Group Baltic Sea: • [...] • 3.2 Deliverables • • 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.

  8. WG CM conclusions • Baltic TSO plan to reach an agreement among themselves by the end of October 2009. • 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 2011. • Baltic, Belarusian and Russian TSOs agree on temporally acceptable congestion management method by the end of December 2009.

  9. Thank you.Questions?

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