Regulatory and development framework:the key role of TSO cooperation

Sopot, November 28th, 2011

Hervé MIGNONRTE (France)

The European challenges

The implementation of two strong political decisions

a new electricity generation mix (low carbon economy, German nuclear phase-out…)

an integrated internal electricity market (e.g. market coupling)

requires a highly integrated set of binding technical,

economical and commercial rules adequate tools to develop key infrastructures

European energy choicesTowards a low carbon economy

New challenges for the technical integration of renewables

De fortes concentrations de moyens de productionsolaires et éoliens

Solaire EolienNouvel hydraulique

New areas for wind and solar generation

solar windNew hydro

solar generationwind

A summer week in Germany…

Huge plans for offshore wind and the corresponding subsea infrastructure

6

A new legal tool for pan-European grid planning: the Ten-Year Network Development Plan (‘TYNDP’)

2010-2014

2015+

Pilot TYNDP delivers

Transmission investment projects that answer the three pillars of EU energy policy:

– Security of Supply– Integration of renewable energy– The completion of the IEM

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Based on a strong economic assessment

44%mid term

56%long term

78%

22%

AC > 300 kV 29600 km 83%

17%

Total projects 42100 km

DC 9600 km

AC < 300 kV 2900 km

upgrade

new

The development of « network codes »

Network codes developed by ENTSO-E to become pieces of the European legislation

Covering all relevant aspects in the technical and commercial fields

Defining a consistent economical framework for investment decisions

Already well advanced, to be achieved by 2014

A degree of integration unique in the worldA degree of integration unique in the world

A key for success: the cooperation between TSOs

Strong role of TSOs in the power system and market design (e.g. ENTSO-E in Europe)

Deep knowledge of the vital constraints and of possible solutions

Long experience of cooperation between neighbors… necessary to keep the lights on

A role for regional TSO associations