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According to Roadmap project shall focus on short-tem capacity issues:

Strategic rationale. According to Roadmap project shall focus on short-tem capacity issues: maximising use of existing capacity including reserve capacity through examination of how unused capacity could be released day-ahead and investigating into how TSOs could be incentivised

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According to Roadmap project shall focus on short-tem capacity issues:

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  1. Strategic rationale • According to Roadmap project shall focus on short-tem capacity issues: • maximising use of existing capacity including reserve capacity through examination of how unused capacity could be released day-ahead and • investigating into how TSOs could be incentivised • Aim: make available firm primary capacity on day-ahead market

  2. Discussed Models Day-Ahead Oversubscription • TSO has good knowledge on how much capacity will be used • TSO slightly oversubscribes the system‘s capacity • In (rare) cases where flows exceed the system‘s capability TSO buys back the usage rights from shippers Short-Term Calculation • TSOs calculate available firm capacity based on long term assumptions and scenarios • In the period running up to real time TSOs have more certainty about network conditions, e.g. • Can release additional firm capacity to the market day-ahead

  3. Incentivisation • TSOs: Incentive mechanism that compensates the additional financial risks coming along with providing additional capacity is needed • TSOs sees incentive mechanism as prerequisite for further steps • The German case: Regulatory framework did not foresee the possibility of compensating additional financial risks through incentivisation • Other frameworks have in this regard more flexibility • Little progress was achieved, but: • How does Link4Hubs fit in this argumentation?

  4. Amendment of german framework • Relevant ordinance “Access to gas transmission networks” has been amended • New ordinance came into force recently • Gives the german regulator possibility of incentivisation  From regulators point of view this issue is solved

  5. Reaction by German TSOs • They welcome new ordinance • Lack of possibility of compensating additional risks has been successfully removed • Incentivisation issue is not perceived as an obstacle anymore, but other concerns were raised: • How is the technical available capacity approved by NRA? • Interference with national determination process • Interference with bilateral initiatives

  6. Proposed Way Forward • Regular working group meeting • Three proposed dates • 13.10.2010? • 14.10.2010? • 20.10.2010? • Aims of meeting • Agreement of a concrete IP • Timetable until SG Meeting  Determination and commitment by TSOs is key to achieve progress

  7. Thank You!

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