Gas Regional Initiative North West Region Short Term
- Slides: 8
Gas Regional Initiative North West Region Short Term Capacity GRI NW Governmental Meeting The Hague – 6 May 2010
Strategic rationale § According to Roadmap project shall focus on short-tem capacity issues: - maximising use of existing capacity including reserve capacity through examination of how unused capacity could be released day-ahead and § investigating into how TSOs could be incentivised Aim: make available firm primary capacity on day-ahead market GRI NW Governmental Meeting The Hague – 6 May 2010 2
Discussed Models Day-Ahead Oversubscription § TSO has good knowledge on how much capacity will be used § TSO slightly oversubscribes the system‘s capacity § In (rare) cases where flows exceed the system‘s capability TSO buys back the usage rights from shippers Short-Term Calculation § TSOs calculate available firm capacity based on long term assumptions and scenarios § In the period running up to real time TSOs have more certainty about network conditions, e. g. § Can release additional firm capacity to the market day-ahead GRI NW Governmental Meeting The Hague – 6 May 2010 3
Incentivisation § TSOs: Incentive mechanism that compensates the additional financial risks coming along with providing additional capacity is needed § If not fulfilled, how does it impact the project? § The alternative of an ex-ante cost recovery guarantee requires a high level of detailing (no quick-win) § An agreed methodology will probably prove to be sub-optimal for each IP § No incentive for the TSO to do more than absolutely required/covered Ø TSOs see incentive mechanism as prerequisite for further steps GRI NW Governmental Meeting The Hague – 6 May 2010 4
Status Quo – according to TSOs § France: Regulatory system incorporates an incentive to oversell capacity as long as regulator does not increase its sales forecast each year § Belgium: Regulatory system not specific to additional revenues generated from extra sales of capacity. No ex-ante guarantee that TSO would be allowed to retain extra revenues § Germany: Additional costs for establishing short-term capacity market are not covered in revenue cap and will in practice lead to lower earnings of the TSO § Netherlands: revenues resulting from capacity sold above this estimated quantity can be kept by the TSO GRI NW Governmental Meeting The Hague – 6 May 2010 5
Status Quo – The Wider Picture § European Process coincides with GRI NW STC process ð Framework Guidelines Capacity Allocation contain proposals to strengthen short term markets ð Aims at harmonised standards on certain capacity related issues ð Potentially impacts STC pilot ð Finalised Document to be expected in May 2010 ð ENTSOG to draft network codes § Incentivisation is closely linked to national regulators practices § National processes e. g. in Germany GRI NW Governmental Meeting The Hague – 6 May 2010 6
Proposed Way Forward § April to August 2010 ð Workshop on incentives for TSOs to maximise available short-term capacity § September 2010 ð Re-evaluate and if needed adapt project in light of recent developments on European and national levels § October 2010 ð Core Group to propose detailed project ð Update Programme Board § November 2010 ð Stakeholder Workshop ð Draft implementation plan to be prepared by Core Group GRI NW Governmental Meeting The Hague – 6 May 2010 7
Thank You! GRI NW Governmental Meeting The Hague – 6 May 2010 8
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Difference between long term and short term liabilities
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Long term goals
