Target

2. Target GRI North West Roadmap sets out to maximise the use of existing capacity including reserve capacity* through • examination of how unused capacity could be released day-ahead • investigating into whether renomination rules have to be reformed *Spare/reserve capacity refers to that part of the capacity which can not be offered on a long-term basis because of the uncertainty of the parameters used for long-term capacity calculation but could be offered day-ahead. This includes capacity for system integrity and operational requirements.

3. Approach • Questionnaire to TSOs on reserve capacity that could be released day-ahead and on the use of incentives (done) • Report on reserve capacity and incentivisation mechanisms (to be finalised by the end of the year) • Initiation of a pilot to implement day-ahead release of firm capacity by TSOs at priority interconnection points (OG proposal: Bunde / Oude Statenzijl and Eynatten)

4. Initial findings from the questionnairesGeneral questions on spare/reserve capacity 10 out of the 20 TSOs addressed responded • A majority of the TSOs’ systems allow shippers to book firm day-ahead capacity. • None of the TSOs has rejected firm capacity requests in spite of having spare/reserve capacity available. • Only 2 TSOs have spare/reserve capacity that cannot be offered on a long term firm basis. • Only 2 TSOs state that this capacity could in principle be offered to the market as firm capacity on a day-ahead basis. • Additional comments by TSOs: • spare/reserve capacity can only be offered as interruptible capacity • difficult and time-consuming to determine for all days and for all interconnection points whether there is spare/reserve capacity

5. Initial findings from the questionnairesTechnical questions • Most TSOs apply static capacity simulation. • At a majority of the interconnection points physical flows do not correspond to nominations. • From a technical point of view possibilities to release short-term capacities seem to exist.

6. Initial findings from the questionnairesIncentive related questions • Only one TSO states that the regulatory regime provides incentives for releasing firm day-ahead capacity in the form of a rebate for interruptible capacity. • According to the TSOs none of the regulatory regimes obstruct the release of firm day-ahead capacity. • Considerations for a suitable (incentive) system: • Additional revenues, adjusting revenue cap • Revenues and respective costs to be exempted from regulation • Network codes • Sound economical environment created by stable regulatory regime

7. Questions on short-term firm capacities • Do shippers desire day ahead firm primary daily capacities and will they make use of it? • What benefits do shippers see with respect to • Efficient use of networks? • Liquidity at hubs? • Competition? • …? • Are there possible disadvantages to the envisaged project? • What incentives could be offered to TSOs (and other market parties) to achieve the best results?