Background: 3rd IEM package Purpose , activities Overall structure Start-up Committee structures

1. ENTSO-E and how we can use this new body in the future in terms of market, planning and operations13 May 2009 CIM user group meeting, Genval, Belgium Konstantin Staschus, Ph.D.ENTSO-E Secretary-General www.entsoe.euOverview • Background: 3rd IEM package • Purpose, activities • Overall structure • Start-up • Committee structures

2. ENTSO-E Background: 3rd IEM package • Proposed amended Regulation (EC) No 1228/2003 on conditions for access to the network for cross-border exchanges in electricity • Article 4: European network of transmission system operators for electricity • Completion and functioningof the internal market in electricity and cross-border trade • Optimal management, coordinated operation and sound technical evolution of the European electricity transmission network. • Article 6: Establishment of network codes • Article 8: Tasks of the ENTSO for Electricity • Network codes • Common network operation tools • Non‑binding Community‑wide 10‑year network development plan, ("network development plan"), including a European generation adequacy outlook, every two years • Work programme, annual report, summer/winter outlooks, monitoring • ENTSO-E founded ahead of 3rd package because completion of the IEM and renewables integration require quick action

3. European integration Phase II • Integration of EU landscape • EU grouped countries into 7 … + regional markets • Extension of market coupling between countries Sustainability • In parallel: growing importance of renewables • Drive towards sustainable energy... • ... with increasingly volatile production profile • Evolution towards pan-European backbone? The TSOs’ need for stronger and faster evolution towards EU integration Vertical disintegration Phase I • Separation of transmission networks from production and supply • Yet stronger unbundling rules in 3rd EU Directive • Individual players' initiatives • Push for investments in interconnections • Capacity constraints in existing infrastructure • Security of energy supply within each country • Emergence of market coupling, e.g. trilateral and soon Central-Western Europe EEX-Powernext-Belpex Interconnection reinforcements Creation of power exchanges

4. ENTSO-E: 42 TSOs from 34 countries • ~ 500 million citizen served • 650 GW Generation • 230 000 km EHV-HV lines • 1 500 000 km MV/LV lines • Demand: 3 000 TWh/year • Exchanges: 300 TWh/year • Investments by 2030 • for T&D: ~500G€

5. Purpose of the association • Pursue cooperation of the European TSOs - pan-European and regional • Promote the TSOs’ interests • Active, important role in European rule setting process - EU legislation • Cooperation among TSOs, and also external communication on: • Reliable operation • Optimal management • Sound technical evolution • Security of supply • Meeting the needs of the IEM / facilitating market integration • Develop and monitor network plans (Commission, ACER roles) • Develop and monitor network codes (Commission, ACER, comitology roles) • Promoting R&D and public acceptability of transmission infrastructure • Positions, consultation Activities

6. ENTSO-E start-up timetable ENTSO-E established (1st Assembly) Secretary-General appointed; first budget approved (2nd Assembly) First meetings of the Committees Secretariat Terms of Reference (TOR), corporate identity, new premises (move 1 Nov) decided, website Regional Groups’ TOR prepared – prerequisite forwinding up 6 existing associations 3rd Assembly: Committees’ + Regional Groups’ TOR approved, UCTE MLA transfer signed, start recruitment for Secretariat positions Transfer of contracts and obligations of existing associations Winding-up of existing associations ENTSO-E fully operational 19/12/08 5/02/09 03/09 04/09 04/09 08/05/09 06/09 30/06/09 01/07/09

7. IS FI NO SE EE LV LT DK NI GB PL NL DE BE AU HU FR RO RS BG ME IT MK ES AL PT GR CY ENTSO-E‘s start-up1 market – 5 synchronous regions Transfer activities from 6 existing associations • Proud long histories, e.g. UC(P)TE since 1951,ETSO with very wellestablished influencein EU electricity market policy • Achievements, well established processes to continue without interruption (e.g. OperationHandbook) through systematic transfer of activities, contracts etc. IE CZ LU SK CH SI HR BA

8. Assembly Board Secretariat Legal & Regulatory Group Working Groups Regional Groups System Development Committee • European Planning Standards • Network Modeling and Data • 10 Year Network Develop. Plan • Research and Development • S. Adequacy & Market Develop. • Asset Implem. & Management • EWIS Project • North Sea • Baltic Sea • Continental CE • Continental CS • Continental SE • Continental SW Voluntary Regional Groups System Operations Committee • European Operational Standards • Critical Systems Protection • Northern Europe • Isolated Systems • Continental Europe • Nordic • Baltic • Great Britain • Ireland - N. Ireland Market Committee • Market Integration • Ancillary Services • Market Information (incl. SG EDI) • Economic Framework • RES

9. Structure of the System Development Committee

10. Main tasks of the System Development Committee • Coordinate, at the pan European level, the network development and planning activities undertaken by TSOs comprising : • Transmission system adequacy • Generation adequacy • Demand forecasting Medium to Long Term • Market driven scenarios and related modelling and planning approaches • Winter/summer Outlook and Review • General Investment & planning criteria • Planning data, formats, models and tools • Will build on existing international plans, e.g. NORDEL, UCTE, but go beyond them with new methodologies • Prepare the Ten Year Network Development Plan (TYNDP) • Introduce technical rules or standards related to the planning of transmission systems and new technical concepts within its R&D activities • Promote public acceptability of transmission infrastructure

11. Structure of the System Operations Committee

12. Main tasks of the System Operations Committee Promote reliable operation and security of the transmission electric systems in Europe Develop, maintain and update technical and operational standards, recommendations and co-operation frameworks for regions and individual TSOs in ENTSO-E Make proposals for pan-European harmonisation of the Network Codes and rules Monitor, assess and, where appropriate, report on the quality-level of transmission system operation and important transmission network operation events on a regular basis Maintain the timeliness and effectiveness of inter TSO normal and emergency operating procedures 12

13. Structure of the Market Committee

14. Main tasks of the Market Committee The long-term objective is an integrated and seamless European electricity market Harmonised market design and rules for the integration of physical and financial markets in all timeframes Consistent and transparent congestion management principles and schemes for the allocation and use of transmission capacity Regional cross-border harmonisation and integration of balancing mechanisms Establishment of Inter-TSO compensation mechanism, and when applicable, adequate methodologies in sharing joint revenues/costs Market-oriented integration of the renewable energy sources (RES) and decentralized generation 14

15. ENTSO-E Secretariat 15 Provides the manpower and Brussels presence to help achieve ENTSO-E’s purposes Performs and supports external communications of ENTSO-E. Promotion of the interests of ENTSO-E towards the European Commission, European Parliament and the Council, the European bodies for Energy Regulators Has a central function supporting handling of data related to statistics, publications, system adequacy, power flow data and ENTSO-E Vista (maintenance, plausibility and consistency checking) Receives support from a Data Expert Group, which tackles pan-European standardization of data handling

16. ENTSO-E Secretariat has a central function of coordination, maintenance and support of Common Information Model (CIM) related issues and therefore, it is the interface to international organizations 16 International organizations: IEC, EPRI, CIMug, … - Liaisons, - Submitting ENTSO-E needs, - - Participation in the discussion, - etc • Discussion on Committees/WGs requests; • Information on IEC • opinion; • Possible solutions • etc. Secretariat ENTSO-E Data Expert Group • Maintenance ENTSO-E CIM tools; • contacts with providers CIM tools Requests that concern CIM must be submitted to Secretariat System Development Committee Operations Committee Market Committee WGs defining needs WGs defining needs WGs defining needs

17. Summary • ENTSO-E speaks for all TSOs in the EU and others connected to their networks • ENTSO-E and the European TSOs stand for • Reliable operation • Optimal management • Sound technical evolution of the European electricity transmission system • Security of supply • Meeting the needs of the IEM / facilitating market integration • ENTSO-E is already active ahead of the 3rd package • ENTSO-E takes its new tasks described in the 3rd package very serious, in particular network codes and network development plans • These plans should play an important role for the overall European energy policy, including for continental scale planning for the integrated European market, CO2 reductions, energy efficiency and renewable energy system integration