The market background

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The market background

• Nordic countries Reasonably well-functioning
  cross-border wholesale market
• Germany - Reasonably well-functioning national
  wholesale market Part of 4 Regions of ERI
• Poland - New wholesale market with low
  liquidity - Part of 2 regions of ERI
• Interconnected, but different capacity allocation
  methods
• and obvious inefficiences in utilization

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General focus and priority topics

• Focus of regional initiativeThe well
  functioning of the whole-sale market interface
  between Nordel-area and Germany/Poland - taking
  into account other relevant interfaces as coming
  NorNed Cable and EstLink
• Priority topics - to deal with now- Optimizing
  the use of interconnectors (allocation mechanism
  and congestion management) - 2
  interconnectors between Germany and Denmark
  available for the market - 2
  merchant interconnectors - between
  Sweden and Germany - between Sweden and
  Poland- Transparency for market-actors in whole
  sale market
• Priority topics - included in road-map - Need
  for joint intra-day and regulation power markets
  - Planning and financing of new/strengthened
  interconnectors - Cooperation on integration of
  major shares of windenergy

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Optimizing the use of interconnectors KONTEK
and Germany-Denmark West

• Starting point
• KONTEK Market splitting operated by Nord Pool
  Spot
• DE-DK West Explicit auctions
• MoU of 27-10-2006 between
• By 4th quarter 2007- Day ahead market
  coupling- Central auction office
• Prepared for cross border intra-day market
• Open for other TSOs and PEXes
• NorNed Cable and Central Western Europe taken
  into account
• Progress Integrated with Northern ERI
• Very positive development in Close and fruitful
  cooperation

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Optimizing the use of interconnectors SwePol
and Baltic Cable

• Starting point
• Both interconnectors operated and used entirely
  (in practice) by owners
• reflecting market conditions
• Status of work
• Describing in depth present operation and use
• Analysing the legal framework
• To be done
• Analyse the consequences of illiquid Polish
  market
• Drafting model(s) for capacity allocation and
  congestion managementtaking into account the
  results of the decisions on DE-DK interconnectors
• Dead-line December 2007

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Transparency for market actors in the
electricity whole sale market

• Starting point
• Nord Pool Spot information mandatory requirements
  from members and
• continuous publication of information
• EEX voluntary agreement on information collection
  and publication with major
• German generating companies
• Status of work
• Analysing information collected and published at
  present
• German (BNetzA) initial proposal on harmonized
  set of informations (with thorough
• definitions) to be collected and published
  based on ERGEG guidelines
• Stakeholders comments
• To be done
• Drafting final proposal taking into account all
  input
• Dead-line May 2007

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Indicative meeting-plan first half 2007(dates
decided by now)

• Stakeholder group meeting Copenhagen 7th June
• RCC 11th May
• IG Transparency for market actors in the
  electricity whole sale market April
• IG Optimizing the use of interconnectors
  KONTEK and Germany-Denmark West 14th
  February
• IG Optimizing the use of interconnectors
  SwePol and Baltic Cable 13th
  February 6th
  March 9th May