THE EUROPEAN ENERGY MARKET

AND THE ROLE OF ENTSO-E &

TRANSMISSION SYSTEM OPERATORS

The Energy Trilemma

Competitiveness Security of Supply

Climate ChangeDelivering policies solving

the energy Trilemma is one

of the most difficult

challenges governments

and industry have to face.

Energy Union is set up to solve the trilemma

The TSOs

…are instrumental to enable the

energy transition

The Energy Union

…is Europe's answer to solving the energyTrilemma, and to deliver the necessarytransformation of the energy system

The 2030 EU Council Targets and the Electricity Transmission System

10% by 2020

15% by 2030

Interconnection target

IMPORTANT

regional differences & needs

must be considered

About 45% of RES generation in the electricity

transmission system

+27% energy

efficiency

-40% CO2

emissions

27% Renewable

Energy Sources

Structure of the EU electricity markets

Production

Transmission

Distribution

Sales

Wholesale

Open to competition

Natural monopolies

ENTSO-E

represents

transmission system

operators at EU

level

Ten-Year Network Development

Plans

Network Codes development

and implementation

Regional cooperation and

Adequacy forecast

Market transparency platform

ENTSO-E’s main tasks

What is a Network Code?

A set of rules applying to one aspect of the energy sector

Which are developed by ACER, ENTSO-E & stakeholders

And become legally binding after the Comitology process

Hence they will have the same status as any other Regulation

3ConnectionNetwork Codes 3

MarketNetwork Codes 4

OperationalNetwork Codes

set requirements for:

- Generators

- Demand-side

- HVDC connections

set market rules for:

- Day ahead/intraday & Capacity calculation

- Long-term timeframes

- System balancing

set common rules for:

- Assessing adequacy

- Planning outages

- System security

- Emergency situations

Internal Electricity Market

… day-ahead market coupling…

…paving the way for offshore wind…

…regional security coordination initiatives…

Network Codes: the Foundations of the EU internal electricity market

A Complex, Interlinked, and Strong Regulatory Environment

Network

CodesID

DA/ID link to

Governanceguideline

DA

CC

All market codes link to transparency regulation

FCA

FCA Linked to MIFID

EB

DCC

Both linked to energy efficiency directive

RfG

All connection

codes linked to existing

standards

HVDC

Linked to smart grid initiatives through

DSR

All connection codes link

to EB

All connectioncodes link

to OS

CC link to OS/OPS due

to CGM

LFCR closely

linked to EBOS

OPS EP

LFCR

LFCR/OS closely linked

DA

Stakeholders

Industry

associations

Market

participants

Consumers

Power

exchanges

Regulators

Bottom-up

collaborative process

TYNDP: Network Investments for the 2020 and 2030 Targets

Investment in European Infrastructure€150 bn towards 2030

20 % CO2 reduction in

the power sector

60 % of total consumption

covered by RES

Power price reduction 2

and 5 €/MWh

Ten-Year Network

Development Plan

• 25 000 km DC lines/cables

• 30 000 km AC lines

Energy Region”s: The Regional Security Coordination Initiatives (RSCIs)

The Central Information Transparency Platform*live as of 5 January 2015*

Commission Regulation 543/2013: Need for transparency in electricity markets

Central Information TransparencyPlatform provides data on:

• Load

•Generation

•Transmission

•Outages

•Balancing

•Congestion management

Transparency Platform:

https://transparency.entsoe.eu/