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ERGEG Regional Gas Market North-West Workshop on Interconnections & Primary Capacity Market

ERGEG Regional Gas Market North-West Workshop on Interconnections & Primary Capacity Market Interconnection Point Oude Statenzijl H-gas Kick-off Meeting BEB, E.ON GT, GTS and WINGAS TRANSPORT Paris, 11.05.2007. Contents. Status quo TSOs answers/proposals.

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ERGEG Regional Gas Market North-West Workshop on Interconnections & Primary Capacity Market

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  1. ERGEG Regional Gas Market North-West Workshop on Interconnections & Primary Capacity Market Interconnection Point Oude Statenzijl H-gas Kick-off Meeting BEB, E.ON GT, GTS and WINGAS TRANSPORT Paris, 11.05.2007

  2. Contents • Status quo • TSOs answers/proposals

  3. Situation Bunde/Oude Statenzijl (H-Gas)Direction Netherlands-Germany • Direction from Netherlands is the historical flow direction • The upstream capacity on the Dutch side can be allocated in different ways to the exits • Joint scrubber leads to cross-influences of exit capacities to E.ON GT and Wingas Transport BEB GTS E.ON GT WINGAS TR. Netherlands Germany

  4. Situation Bunde/Oude Statenzijl (H-Gas)Direction Germany - Netherlands • Demand of capacity in the East-West direction developed long after demand for capacities in the West-East direction • Expansion projects were initiated by TSOs • Because of the specific physical grid situations, capacity increases were accomplished earlier on the German side BEB GTS E.ON GT WINGAS TR. Netherlands Germany

  5. Status quo:Answers 5.1 and 5.2 1) Maximum implementation lead time: 10 days 2) More than 3 months and less one year: 3 months 3) New cooperation agreement

  6. Status quo:Answers 5.3 and 5.4

  7. Status quo:Answers 6.2 1) First committed first served is offered in combination with online booking

  8. Status quo:Answers 6.3

  9. Contents • Status quo • TSOs answers/proposals

  10. Implementation Goal 1:BNetzA / DTe Proposals Submit missing data on technical capacity, subscription, flows for (2004), 2005, 2006 • Except for confidential data in some months • Data only available from 10/2005 • Percentages refer to net flow • Except for months Oct-Dec 2007 because of change of calculation model

  11. Implementation Goal 1:BNetzA / DTe Proposals Explain low utilisation and temporal over-utilisation • Interpretion of question was different between TSOs, e.g. some took net flow and some took contractual allocated flow • High utilisation rates in BEB answer because of netting effects and usage of allocated capacities • Wingas Transport utilisation rates are within range • Low utilisation rates from E.ON GT grid to GTS grid because of lower GTS entry capacity compared to E.ON GT exit capacity • Temporarily higher gas flows possible on operational level dependend on actual flow situation in the GTS grid

  12. Implementation Goal 1:BNetzA / DTe Proposals Identify possible ways to maximise capacity • UIOLI mechanisms are in place • Further facilitation of secondary market via day ahead capacity platform under development • Operators are open for discussion of new proposals

  13. Implementation Goal 1:BNetzA / DTe Proposals Strictly enforce UIOLI • Detailed legal requirements on long term UIOLI in Germany and in the Netherlands • Such UIOLI mechanisms have been implemented in the respective network codes Buy-back capacities • Buy-back mechanisms better to be solved via secondary capacity market

  14. Implementation Goal 1:BNetzA / DTe Proposals Ensure that capacity trading platforms are running and interlinked • Capacity trading platforms are running in the Netherlands and in Germany • Relation to day ahead capacity pilot ?

  15. Implementation Goal 2:BNetzA / DTe Proposals Comply with all transparency requirements • TSOs would like to be informed about any perceived non-compliance with existing transparency obligations • In case of non-compliance with existing transparency obligations, TSOs will endeavour to comply as soon as possible • Additional transparency requirements should be discussed and if agreed upon aligned with other work streams, i.e. in the day ahead capacity pilot

  16. Implementation Goal 3:BNetzA / DTe Proposals Planned capacity increase • E.ON GT exit capacity increase to 1.5 Mio m³/h in 2007 • GTS entry capacity increase by 3 Mio m³/h in 2010 CAM for new capacities • The capacity allocation methods currently applied by TSOs are in line with the applicable national legal obligations • Possible change requirements to be discussed

  17. Implementation Goal 4:BNetzA / DTe Proposals Identify scope and limits for establishing a harmonised/bundled framework • GTE is currently conducting a study on harmonisation of capacity products, input from regional market is welcome • Bundled entry and exit capacities will be treated in day ahead capacity pilot

  18. Implementation Goal 4:BNetzA / DTe Proposals Coordinate with the goal of facilitating booking procedures, especially with respect to spot markets • Learn from coordinated day ahead capacity pilot ?

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