How do CEE countries benefit from

improved regional cooperation?

from the Czech TSO perspective

The Regional Initiatives - Progress and Prospects

Joint Conference EC & ERGEG, Brussels 28.03.2007

Zbyněk Boldiš, ČEPS, a.s.

CEE Regional Development I.

Today

Coordinated Auctions among 5 TSOs

Bilateral Auctions

NTC based explicit auctions Y/M/D ahead

Intraday on CZ/SK border

Concept for the FBA

Tomorrow

Independent CEE Auction Office in Bavaria

Co-ordinated auctions among all CEE TSOs

No agreed common allocation method for Y/M auctions

Intraday on all CEE borders FBA for D-1? Questions to be answered

CEE Regional Development II.

Today

Maximization of the cross-border capacity

Security risk: more frequent violation of N-1

Separated balancing markets & price structure

Different imbalance settlement mechanism

First experiences with cross-border balancing on CZ/SK border

Tomorrow

Likely decrease of capacity on specific borders

Complying with security standards

New construction needed

Regional balancing market with single price structure

Harmonised regional settlement market

Regional market with ancillary services

Major improvements in the CEE Region Intensive regional communication and understanding

Regional capacity allocation• Independent Regional Auction Office in Bavaria• Co-ordinated auctions among all CEE TSOs• Coordinated introduction of intraday on all CEE borders

Coordinated Transmission System Development• Annually upgraded list of priority projects • Sharing experience in the field of procedures, workflows, etc...• Modelling of new investments’ impact on interconnected systems• Carry out discussion on the transmission systems’ development

System Security• Common analysing of critical situations• Joint procedure for investigation of emergency situations• Coordination of maintenance of grids (not just interconnectors)• Real time data exchanges incl. Emergency

Major challenges in the CEE region FBA implementation

• Unlikely increase of cross-border capacities• Shift from an option to use the capacity to an obligation of traders• Limited transparency• Potentially discriminating

Increasing difference between scheduled and real flows• Influenced by expansion of wind generation in North Germany• Existence of regional bottlenecks (often inside the countries)

Interconnection improvements without stronger EU support to overcome environmental and ownership barriers

More intensive market coordination:• Regional balancing market with single price structure• Harmonised regional settlement market• Regional market with ancillary services

Thank you for your attention!

boldis@ceps.cz