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Annual Report 2009 Annual Report 2009 European Network of Transmission System Operators for Electricity Annual Report 2009 Content President’s Foreword . 6 Chairman’s Statement . 7 ENTSO-E – fully operational . 8 Inside ENTSO-E . 10 ENTSO-E Work Program 2009 / 2010 . 12 ENTSO-E Consultation Process . 13 Reliable . 16 From Operation Handbooks to Network Codes . 18 Compliance Monitoring . 20 System Adequacy Forecast . 21 ENTSO-E Winter / Summer Outlook / Review Reports . 24 Sustainable . 26 Ten-Year Network Development Plan . 28 Pilot Network Code . 30 Run-up to the first Edition of the Research & Development Plan . 32 Connected . 34 The Target Market Model for Europe 2015 . 35 Market Coupling between Central West Europe and the Nordic Region . 37 The Last Voluntary Inter-TSO Compensation Agreement . 38 Transparency . 39 Interconnection Studies . 41 Outlook . 42 Appendices . 46 ENTSO-E in Brief . 47 The ENTSO-E Synchronous Areas . 48 ENTSO-E Members . 49 ENTSO-E Staff . 50 ENTSO-E Work Program 2009 / 2010 Indicative Schedule . 51 Abbreviations . 53 Imprint . 54 ENTSO-E Annual Report 2009 | 5 President’s Foreword Chairman’s Statement 2009 witnessed the creation of a new actor on the European energy stage : ENTSO-E’s vision – to become and remain the focal point for all European, ENTSO-E, following the European Commission’s proposals for a Third Pack- technical, market and policy issues related to TSOs – is well under way now age of Energy Legislation, adopted in 2009 after a two-year long process . that the association is proceeding through its first operative year . “The Third Package”, as it is commonly known, is a Together, these three pillars are key to our work. In This means interfacing with many stakeholders: staff, comprise the multi-disciplinary virtual team major piece of legislation, which gives to ENTSO-E fact, I strongly believe that they will, even more power system users ( our members’ customers ), EU that is ENTSO-E. It is my pleasure here to seize the important responsibilities and recognizes the add- than legislation, be the driving force behind the in- institutions, regulators and national governments. opportunity and say Thank you, to all of you who ed value of TSOs in the process of market liberaliza- tegration of national power systems, and conse- have invested time and resources in the TSO com- tion and climate change remedial actions. quently, of their markets. ENTSO-E’s work products contribute to the securi- munity’s common pursuit of making this part of the ty of supply, a seamless, pan-European electricity electricity industry a valuable player and facilitator Moving towards a decarbonized pan-European Network codes, ten-year development plans, ade- market, the secure integration of renewable re- in achieving European energy policy goals. power system without jeopardizing customer de- quacy reports, are among the main deliverables sources and a reliable future-oriented grid, ade- mands for reliability is, in my opinion, a major chal- that all stakeholders are now contemplating from quate to energy policy goals, notably the so-called My thanks also go to representatives from our near lenge for all TSOs. In this respect, the establishment ENTSO-E. Work on these new tasks is well under- “20 -20 -20 -targets”. neighbors in the regulatory and policy-making of ENTSO-E better fits today’s and tomorrow’s real- way and the new premises, a location where our world. Continued close co-operation between all of ities in the energy policy arena. experts meet, where consultations with stakehold- Being the “TSO Hub” at European level, ENTSO-E’s us will be vital. As an example of this co-operation, ers as well as Board and Assembly meetings take mission is to promote important aspects of energy I would like to mention the establishment of the No less than 42 TSOs from 34 countries collaborate place, reflect ENTSO-E’s commitment to be an policy in the face of significant challenges : Ad-hoc Advisory Group ( AHAG ), established as within ENTSO-E on system operations, system de- open, efficient and transparent body. − Security – it pursues coordinated, reliable agreed between the Commission and ERGEG at the velopment, and market-related issues while ensur- and secure operations of the electricity trans- December 2009 Florence Forum. The role of AHAG ing a supportive role for regional initiatives. Quite a In the coming years, ENTSO-E also intends to con- mission network. is to advise the European Energy Regulators ( in the challenge ! tribute to the European research and development − Adequacy – it promotes the development future ACER ) on preparatory work for the develop- effort, as shown in our first R& D program. Exchang- of the interconnected European grid and in- ment of framework guidelines and network codes TSOs play a crucial role in the process of the EU ing experience and knowledge through relation- vestments for a sustainable power system. that come from those guidelines in the market meeting the so-called “20 -20 -20 -goals”, a corner- ships, or even partnerships, with TSO associations − Market – it offers a platform for the market by area. stone in the combat against climate change. from other continents will be the next step for our proposing and implementing standardized ENTSO-E stands able and ready to support society young association. market integration and transparency frame- The coming years will by any standards mean a lot and stakeholders in the endeavor to increase re- works that facilitate competitive and truly of work for this young organization and I believe we newable energy sources from today‘s share of 6.5 % This first year has lived up to its promises thanks integrated wholesale and retail markets, per- have made a great start in meeting the challenges to 20 % by 2020. For power systems, this means that to the cooperation established with representatives haps achieved in regional steps. set by the great expectations placed upon us. a third of electricity will be generated by tens of of our stakeholders in the industrial, regulatory − Sustainability – it facilitates the secure inte- thousands of small to medium size cogeneration and policy-making worlds. ENTSO-E staff were in- gration of new generation sources, particularly and renewable energy sources as well as tens of strumental in delivering in due time our first deliv- growing amounts of renewable energy and thus large solar power plants and on-shore and off-shore erables, organizing the consultation process and the achievement of the EU’s greenhouse gases wind power plants located all over Europe. workshops as well as tens of other pieces of work reduction goals. usually unnoticed but so important for a well- Graeme Steele New major transmission highways at the European functioning association. Among our deliverables, one document already level and local reinforcement of distribution and stands out: our first ( pilot ) Ten Year Network De- transmission networks have to materialize, as mas- It is also my sheer pleasure to take this opportunity velopment Plan ( TYNDP ). Although launched on sive quantities of power from coastal areas to in- to convey a heartfelt thank you to representatives of 1 March 2010 ( when the public consultation period land – as well as between national power systems – our member TSOs, for their unflagging support in started ) much of the work going into it took place Regulation ( EC ) No 714 / 2009, Article 4: will flow, depending on weather or price changes. the creation phase of ENTSO-E. Without your com- during autumn and winter 2009. The drafting of this European Network of Transmission System Operators for Electricity mitment and proactive participation in the work plan was organized in an open and transparent “All transmission system operators shall cooperate at In addition to these renewable energy goals, the EU we would not be where we are today. manner in coordination with EC and ERGEG, with Community level through the ENTSO for Electricity, in order energy policy also stipulates a major effort to make early informal discussions with major stakeholders to promote the completion and functioning of the internal energy 20 % more efficiently utilized over the com- such as EURELECTRIC, EFET, EWEA, Greenpeace market in electricity and cross-border trade and to ensure the optimal management, coordinated operation and sound ing ten years, and geopolitical realities call for a and many others. technical evolution of the European electricity transmission much more focused concern on the secure supply network .” of energy to Europe’s citizens and industry. In its new Brussels base, ENTSO-E’s working organ- Daniel Dobbeni ization is finding its feet and the workload of the 23 strong staff is already challenging, as indeed it is for the many groups of experts who, with the Brussels 6 | ENTSO-E Annual Report 2009 ENTSO-E Annual Report 2009 | 7 The Third Legislative Package for the Internal Energy ENTSO-E and its members have started an ambi- ENTSO-E – tious work program, doing their utmost to meet EU Market ( IEM ) was adopted by the European Commission and stakeholder expectations: a pilot network code on 3 September 2009, almost a year after ENTSO-E was on connection, consultation processes, the very fully operational founded on 19 Decem ber 2008 and two months after complex preparation of the first Ten-Year Network Development Plan ( TYNDP ), the wholesale market ENTSO-E became fully operational on 1 July 2009 . The target model, continued regional and statistical first annual report, presented to stakeholders herewith, work and the start of numerous other TSO cooper- ation activities have fully engaged experts from the thus reflects the year 2009 with the first half spent on member companies and from the ENTSO-E Secre- the starting-up process for the newly born organization tariat. for European TSO s, and the second half spent develop- Through its work, ENTSO-E addresses the challeng- ing routines and first work products .
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