Balancing Inter TSOs (BALIT): implementing the interim Solution

1. Deliverable I.4 BALANCING (1/2) Balancing Inter TSOs (BALIT): implementing the interim Solution • NRAs addressed letters of comfort for the implementation of the interim solution (including scope, planning and cost allocation methodology) in October 2012. • 16 months later, the interim solution is still not implemented in the SWE region. • Acknowledging that relevant contracts and agreements are ready for signatures by the TSOs, the interim solution should be implemented as soon as all necessary Operational Procedures are approved and published (foreseen by end of March). An efficient process towards the enduring solution • NRAs expect that TSOs will commonly provide asap an updated detailed mid-term planning towards the enduring solution; • The interim solution Go-Live should not delay the whole process (4-6 months between the Go-Live dates?). Transition from interim to enduring solution should include: (i) a solid qualitative and quantitative feedback of the interim solution; (ii) an estimation of the expected gains emerging from the enduring solution based on relevant data (residual available XB capacity, volumes and prices of RR balancing bids, etc.). SWE IG meeting – 25 February 2014 1

2. Deliverable I.4 BALANCING (2/2) Trans European Replacement Reserve Exchanges (TERRE) • NRAs acknowledge that this Pilot Project is being developed by 4 active TSOs with on-going important studies as part of the design phase; • This project has been commonly recognized as a pillar for the development of a pan-European TSO-TSO platform for the exchange of balancing energy from RR resources. • It is widely agreed that such TSO-TSO model would bring significant savings and enhanced operational security compared to current practices (see Impact assessment from ACER, EC, consultant studies, etc.), especially in systems with growing variable generation. • TSOs should make their best efforts to cooperate and not prevent any other TSO from fulfilling the obligations which will be part of the NC EB. • NRAs are convinced that all TSOs will benefit from an early participation in the design phase (adaptation of products, matching processes, consistent financial issues, etc.). In particular, experience from BALIT will be very valuable to feed in the TERRE solution. • For NRAs, it is therefore essential for NRAs that all experienced TSOs using RR process take part of a pilot project as soon as possible to gain experience regarding the integration models which benefit the overall system. SWE IG meeting – 25 February 2014 2