Power Exchanges in the extended EUThe experience in Czech Republic
APEx Conference 2004
October 11th, 2004 - Leipzig
Miroslav Marvan Operator trhu s elektrinou, a.s.
Page 2
Czech Power Industry in 2003
Total Consumption 55 TWh
Export 16 TWh
Import 4 TWh
Net Generation 83 TWh
incl. Thermal PPs 53 TWh
Nuclear PPs 26 TWh
Maximum Peak Load 11 163 MW
Page 3
Main Market Participants
Share of generation Share of electricity supply
(distribution)
ČEZ 70 % 66 %
EON 24 %
PRE 10 %
There exists one dominant generator with crucial share of generation and distribution as well.
Page 4
Opening the Electricity Market in the Czech Republic
Wholesale electricity market completely opened At present retail market is opening step by step Today the electricity market is opened for all generators,
traders and end consumers with continuous measurement and remote data transport
From 1.1.2005 the market is opened for all end consumers with exception of residential sector – implementation of load profiles
Page 5
OTE TSO
DSO1
Bilateral contracts
ccontractscontalou
vy Contracted volumes
Actual volumes
volumesdnoty
DSO2
BRE Balance Responsible Entities - Subjects of settlement DSO Distribution System Operator TSO Transmission System Operator OTE Electricity Market Operator
BRE1 BRE2
BRE3
Model of Czech Electricity Market
*DSO can become a subject of settlement
*
*
Page 6
Model of Czech Electricity Market
A subject of settlement (BRE) - at present 30 in the Czech Republic - is a market participant with responsibility (financial) for a deviation
Deviation is a difference between actual (measured) and contracted (traded) volume of electricity
Page 7
Deviation of a subject of settlement
BRE Deviations
Contractedvolumes
Actualvolumes
OTE
TSO/DSO
ddp
ki
s
kiki ,,,
dp
ki,
ds
ki ,
ki ,
Page 8
Electricity Market Operator
Evaluates and settles deviations - every day for separate trading hours
Receives contracted (traded) hourly volumes from subjects of settlement in a day D – 1 (by 16:00) and real (measured) volumes for every hour in a day D + 1 (by 11:00) from TSO and DSOs
Deviations are evaluated by financial costs necessary for activation of ancillary services (reserve power)
Deviations are debeted to these subjects of settlement that caused deviations in separate trading hours
Page 9
Further Activities of Electricity Market Operator
Organizes day – ahead market – by very traditional way Organizes intra – day market; for separate trading hours;
at present trading ends 3 hours before real time Organizes balancing market – with single buyer only –
TSO Risk management of electricity market Administration of changes of suppliers In preparation: registration and settlement of „green
electricity“ and CO2 emissions
Page 10
Reconciliation curves
29 September 2004 – 23:00 – 24:00
Page 11
Evaluation of Czech Electricity Market
The electricity market in the Czech Republic started in 2002 without notable problems
Trades of dominant generator ČEZ, a.s. have crucial importance for price – fixing process
Low liquidity of organized electricity market - day – ahead and intra – day markets about 1 %
Bilateral contracts represent predominated way of trading
Page 12
What next?
It is impossible to increase liquidity of organized market and competition under existing conditions
Strategy for improvement of electricity market with existence of dominant players:
- creation of a regional market
- first step – preparation of infrastructure of the market
Page 13
Regional Electricity Market
At present very popular idea Solution is concentrating on solution of cross – boarder
flows which is insufficient The problem is more serious
– the same rules for trading– the same rules for regulation– provision of reliability of electricity supply
Primarily it is a political problem
Page 14
Infrastructure of Electricity Market
There have to exist an infrastructure independent on market players and dominant players especially
- measurement and access to its results
- settlement of deviations and their prices
- administration of supplier (consumer) changes
- trades in ancillary services
- additional conditions that depend how the market
was started (e.g. in the Czech Republic obligation
for EMO to organize day – ahead market)
Page 15
Conclusion
More information about the Czech electricity market – even in English - is available on web sites of OTE
www.ote-cr.cz
including results of day - ahead market, intra – day market and balancing market and statistical data
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