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…

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The ENTSOs: Implementing the 3rd Package

The Energy Transition: What does it mean for Europe?

27% renewables by 2030 = +/- 45% for the power system

Sector Coupling:

• Power
• Gas
• Transport

Wind Solar Hydro potential

Flow North-south Flow North-East South-West

Illustration of main RES potential across Europe towards 2030

 Develop Policy Regions to promote progress and speed

The right framework to address future challenges?

The EC proposals address the majority of issues

• Active customer
• Scarcity pricing
• Removal of price caps
• Easier supplier switching
• Risk preparedness framework
• European resource adequacy
• Ambitious Regional Cooperation

Smart, data-centric system Engaged prosumers Electrification of transport

FUTURE?

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Network Code implementation is a key priority!

CACM Guideline

…but a few important improvements needed:

Balancing Guideline System Operations Guideline

Ensure market integration and integrity:

Wholesale/ retail integration Foster interconnection Efficient provision

• f ancillary

services Optimal capacity calculation

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.

Jan Ingwersen ENTSOG General Manager

… now, we move on: from power … …2 gas, with…

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Background for the ENTSOs (3rd Energy Package)

Deliverables Processes Commitment/ resources Shared European Goal

• Network Codes
• TYNDPs
• Seasonal Outlooks
• Security of Supply
• Transparency
• EU level industry-regulators dialogue
• Transparent & consensus-based
• Stakeholders involvement
• Data collection & handling
• Market monitoring
• Implementation support
• EU wide cooperation
• TSO expertise &

resources

• Commitment & buy-

in from TSOs & MSs

EC, Council, Parliament and MSs agreed on a model with clear roles & responsibilities, clear communication channels and inclusive processes => consolidated and recognized outcomes

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Why have the ENTSOs delivered on the Network Code Processes?

TSOs & ENTSO’s ownership of processes + appropriate level of regulatory oversight => results have been delivered

Practice Regulation

Supervision of all ENTSO activities ACER approves final submission to EC ACER decides framework guidelines TSO and stakeholders buy-in on process & solutions Industry knowledge/expertise Ownership of process and product

Clean Energy Package Proposal

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Clear yes to: But some questions remain: Needs and solutions:

Less clear ownership

• f process ?

More difficult implementation process?

Is it proportionate to risk the balance achieved by the 3rd package?

Buy-in from TSOs on the result? Stronger ACER role in coordinating NRAs More trialogue style work with timeframe and structure is needed Life cycle of the NC needs to be reflected when redesigning the framework

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• EC has initiated a mirroring exercise to assess which

parts of the Clean Energy Package to be mirrored to gas regulation

• ENTSOG finds it important carefully to calibrate any

mirroring to the specific needs of the gas regulation

• 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:

• Consider to expand Joint Functionality Platform of

ENTSOG and ACER to cover all issues related to Network Codes

Limitations of the mirroring exercise

Consensus-based implementation of shared European solutions

Responsi bility & buy-in TSOs expertise Stakeholder involvement

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Network Codes Development process

Proposed revision changes the dynamics - Better balance with existing 3rd package process Trialogue style and reasonable timeframe for processes helps effective stakeholder engagement

ACER Drafts FG ENTSO drafts NC ACER opinion on NC EC chairs comitology ACER Drafts FG ENTSO/DSO drafts NC + drafting committee ACER submits revised NC to EC EC chairs comitology

ACER reasoned amendment proposals to EC Comitology

NC amendment process

Post implementation part of NC lifecycle need robust amendment process

FUNCTIONALITY process ACER-ENTSOG amendment proposal(s) EC chairs comitology The 3rd Package ENTSOG proposal EC-ACER- ENTSOG trialogue style proposal

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Maintain the stakeholder involvement but structure an efficient and transparent processes Transparency is important - but let’s keep the clear responsibilities Theoretical vs practical approach need to balanced Post implementation part of NC lifecycle needs robust amendment process

Summary:

More to come on electricity and gas interrelations: TYNDP scenarios development and infrastructure assessment Interlinked (electricity & gas) market model Gas-to Power and Power-to-Gas Seasonal capability of existing gas system

• ffers substantial potential

THANK YOU FOR YOUR ATTENTION

For more information: www.entsoe.eu www.entsog.eu