Updating the Third Package for 2030: the ENTSOs as key delivery - PowerPoint PPT Presentation

Updating the Third Package for 2030: the ENTSOs as key delivery partners Tuesday 4 April 207 European Parliament, Strasbourg

Starting with the electricity perspective…

The ENTSOs: Implementing the 3 rd Package 3

The Energy Transition: What does it mean for Europe? 27% renewables by 2030 = Wind +/- 45% for the power system Hydro potential Solar Sector Coupling:  Power  Gas  Transport Flow Flow North-East North-south South-West Illustration of main RES potential across Europe towards 2030

The right framework to address future challenges? The EC proposals address the majority of issues FUTURE?  Active customer Smart, data-centric system  Scarcity pricing Electrification of transport  Removal of price caps Engaged prosumers  Develop Policy  Easier supplier switching Regions to promote progress and speed  Risk preparedness framework  European resource adequacy  Ambitious Regional Cooperation

…but a few important improvements needed: Network Code implementation is a key priority! Balancing CACM System Operations Guideline Guideline Guideline Ensure market integration and integrity: Optimal Foster Efficient Wholesale/ retail capacity interconnection provision integration calculation of ancillary services 6

EU Regional Security Coordination : Respecting subsidiarity and national liability YES to • Ambitious regional TSO cooperation • Incremental, dynamic & modular approach NO to • transfer of decision-making on secure system operations to ROCs  Stronger Member States’ and NRAs’ regional cooperation is crucial .

… now, we move on: from power … …2 gas, with… Jan Ingwersen ENTSOG General Manager

Background for the ENTSOs (3rd Energy Package) Commitment/ Deliverables Processes resources • • Network Codes • EU wide cooperation EU level industry-regulators dialogue • • TYNDPs • TSO expertise & Transparent & consensus-based • Seasonal Outlooks • resources Stakeholders involvement • • Security of Supply • Commitment & buy- Data collection & handling • Transparency • in from TSOs & MSs Market monitoring • Implementation support Shared European Goal EC, Council, Parliament and MSs agreed on a model with clear roles & responsibilities, clear communication channels and inclusive processes => consolidated and recognized outcomes 9

Why have the ENTSOs delivered on the Network Code Processes? Practice Regulation ACER decides Ownership of process framework guidelines and product Industry ACER approves final knowledge/expertise submission to EC TSO and stakeholders Supervision of all ENTSO buy-in on process & activities solutions TSOs & ENTSO’s ownership of processes + appropriate level of regulatory oversight => results have been delivered 10

Clean Energy Package Proposal Clear yes to: But some questions remain: Needs and solutions: More trialogue Less clear ownership style work with of process ? Stronger ACER role timeframe and in coordinating structure is NRAs Buy-in from TSOs on needed the result? Life cycle of the More difficult NC needs to be implementation reflected when process? redesigning the framework Is it proportionate to risk the balance achieved by the 3 rd package? 11

Limitations of the mirroring exercise • EC has initiated a mirroring exercise to assess which parts of the Clean Energy Package to be mirrored to Stakeholder gas regulation TSOs involvement expertise • ENTSOG finds it important carefully to calibrate any mirroring to the specific needs of the gas regulation Responsi bility & buy-in • ENTSOG questions the need to change the dynamics of the NC process • The package does not address the AMENDMENT of the Network Codes ENTSOG PROPOSAL: Consensus-based • Consider to expand Joint Functionality Platform of implementation of shared ENTSOG and ACER to cover all issues related to Network European solutions Codes 12

Network Codes Development process EC chairs ACER opinion on ACER Drafts FG ENTSO drafts NC comitology NC ENTSO/DSO drafts NC + ACER submits EC chairs ACER Drafts FG drafting revised NC to EC comitology committee Proposed revision changes the dynamics - Better balance with existing 3 rd package process Trialogue style and reasonable timeframe for processes helps effective stakeholder engagement 13

NC amendment process The 3 rd Package ACER reasoned amendment Comitology proposals to EC ENTSOG proposal EC-ACER- ACER-ENTSOG ENTSOG FUNCTIONALITY amendment EC chairs comitology trialogue style process proposal(s) proposal Post implementation part of NC lifecycle need robust amendment process

Summary: Maintain the stakeholder involvement but structure an efficient and transparent processes More to come on electricity and gas interrelations: Transparency is important - but let’s keep the clear responsibilities  TYNDP scenarios development and infrastructure assessment Theoretical vs practical approach need to balanced  Interlinked (electricity & gas) market model Post implementation part of NC lifecycle needs robust amendment process  Gas-to Power and Power-to-Gas  Seasonal capability of existing gas system offers substantial potential 15

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