Trade nuances of electricity market in Lithuania

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Jurmala1st of October 2010

Erikas MiliukasHead of Electricity Import-Export Division

Balance districts

AB “Lietuvos energija” balance districts:– Kruonis PSP (plan vs fact = imbalance)

– Kaunas Hydroelectric Power Plant (plan vs fact = imbalance)

– Import – export (plan vs fact = imbalance)

– Production and consumption (plan vs fact = imbalance)

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Import – export possibilities

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Trade scheme in Lithuania

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Nordpool (Spot)Market operator

Producers Balance providers

ImportersExporters

Turnover fee

Trade platform

Exchange

Trade scheme for Lithuania in Estlink price area

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Nordpool (Spot)Market operator

Producers; Independent suppliers; Balance providers

ImportersExporters

Turnover fee

Trade platform

Exchange

Example:Producer acts as an exporter and willing to sell electricity into Estlink price area:•It places bids into LT exchange (showing the export from LT) and at the same time it places bids with the same quantity into Estlink price area. The time of placing bids in Baltpool and Estlink is the same as it is also the same of getting results from both exchanges. •If all quantity has been sold in Estlink price area there is no problem.•If all quantity has not been sold in Estlink (only part of it) LT producers gets imbalance for difference between export shown in Baltpool and sold quantity in Estlink.

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Estlink price area

ImportersExporters

Market operator

Turnover fee

Trade platform

Producers; Independent suppliers; Balance providers

Explicit auction

Explicit auction influence to Lithuanian traders

Congestion management (explicit auction) between EE-LV cross border is another unpredictable matter for traders in LT

If we have demand or supply in Estlink price area LT traders cannot fully participate and fulfill these needs because of explicit auction

LT traders must cover risk of imbalance sanction not only from trading side but also from cross border capacities.

Bilateral trade in Lithuania • Bilateral trade in Lithuania is divided into two graphics:

– Base load 24 hours

– Peak load 12 hours

• All deviations from that graphic must be sold via exchange (Baltpool)

• Bilateral trade graphics in Lithuania must be agreed between trader and Baltpool in D-2 principle

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Example:

Exchange(Baltpool)

Thanks for attention

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