4th CSE ERI Stakeholders Group meeting

1. 4th CSE ERI Stakeholders Group meeting Overview of the regional work programme towards 2014 AEEG – European regulatory affairs 15 maggio 2012

2. At a cornerpoint The CACM NC preparation is marking an important step towards a common set of binding rules towards the implementation of the target model Nevertheless the voluntary approach is going to keep a fundamental role in the coming months/years Role of the stakeholders in identifying key development areas A region at the border of the main ongoing integration processes (NWE): what role, what inputs to the creation of the IEM? 2

3. Long term timeframe The subject is already considered as “cross-regional” In line with the workprogramme: from 2011 a single set of auction rules almost harmonized between CSE and CWE regions Single auction office for the 2 regions Still significant differences exist in the 2 regions (products, firmness management) mainly deriving from the different ways in which capacity is calculated (top-down vs bottom-up approach). 3

4. Long term timeframe /2 Harmonization of capacity calculation method is perceived of special importance to improve also auction rules harmonization; The CSE region has played an important role in PTR allocations, what about FTR? The WP foresees a decision towards FTR already in 2012 (roadmap towards implementation in 2014) (too early?) anyway important local experiences (Italian market already uses FTRs) could be helpful also at a cross-regional level. 4

5. Long term timeframe /stakeholders’ views • CASC operation: any comment / suggestion? • FTR role in the region: when should discussion be started what involvement for the stakeholders? • Products definition and duration: any comment/suggestion? 5

6. Day ahead timeframe • The workprogramme foresees a gradual adotpion of the PCR algorithm (once developed and validated) in the markets of the region • 2012 and 2013 to adapt local market arrengements hampering the integration with European coupling • Implementation of price coupling in the region by beginning of 2014 6

7. Intraday timeframe • The workprogramme foresees the implementation of the first interim solution by April 2012 (little delay) • Development of a roadmap towards the target solution to be approved by regulators by Q4 2012 • Go Live of the target solution by the end of 2014 7

8. Intraday timeframe /potential obstacles • TSOs invited to work – in coordination with PXs – on the roadmap towards the target model; • The implementation of the target solution is not so smooth also in more advanced regions (NWE) where different solutions are being tested in different borders • The cohexistence of continuous trading and auctions represents an additional constraint for our region, but a joint working group already established to study pilot solutions on selected borders 8

9. Balancing • WP foresees first possible solutions to be adopted from 2013 on selected borders • The increasing amount of RE generation capacity in the region may represent a driver for exchange of balancing energy • It will be important to go hand in hand with the development of the future NC on balancing 9

10. Capacity calculation • The current WP foresees a possible revision of the product definitions so to allow offering capacity with a higher level of firmness • Work on FB to be started in 2013 • What about the CWE and CEE experiences? • The regional dimension is extremely important also for the CACM NC, but what is the ideal regional scope for activities linked to FB calculation 10

11. Prioritization • Could it be considered a feasible approach to define prioritization criteria on the different topics so to concentrate the efforts on selected issues? • What are the stakeholders’ views? 11