Europe’s Energy Union:a view from stakeholders

Konstantin Staschus, PhDSecretary-General, ENTSO-E

The Global Annual Energy Meeting “The Coming Energy Market”25 November 2016, Madrid

ENTSO-E leading the change

300 000 km of

transmission lines

3300 TWh electricity

consumption

42 TSOs

35 countries

over 500 million

customers servedof the global

electricity

consumption

15%

The Energy Transition:What does it mean for Europe?

27% renewables by 2030 = +/- 45% for the power system

NEW CHALLENGES

• System stability

• Resource variability

• New connections

• Changed power flows

• Integrating demand-side resources

• Empowering consumers & managing data

• Unlocking flexibility

Wind

Solar

Hydro

Flow

North-south

Flow

North-East

South-West

From asset……………………………………..……to smart optimization of generation and load

September 2016 in Denmark, one week (source Energinet.dk)

A PARADIGM SHIFT:The changing role of our networks

……...to smart customers

The future is electric

KEY CHALLENGES

• Ensure predictable policies

• Integrate renewables

successfully while

ensuring security of supply

• Implement market design &

smart technologies

• Enhance competition &

cost efficiency

• Empower the customer

Politics &

Regulation

Markets &

Economics

Technology

& Operations

DRIVERS &

DEVELOPMENTS

VISIONS & ACTIONS OF

ENTSO-E

WHAT IS THE VALUE OF THE EUROPEAN GRID?

Security of

Supply

Lower bills

SmartnessClimate

protection

TSOs as market facilitators help deliver these

The Energy Union: 6 Key Priorities for ENTSO-E

1

2

3

4

5

6

Implement Network Codes

Seamless internal energy market

Infrastructure to be built

Regional approach

Wholesale-Retail market integration

Research and Innovation Policy

How to improve the current market design?

Missing market design

• Enable scarcity pricing

• Integrate RES and Demand

into the market

• “EU Framework" for CRM

• Adequacy-based

• Cross border participation

Signals to Customer

• Dynamic pricing

• Easy to switch

• Data management, smart

meters and hubs

New Governance

• TSO-DSO cooperation

• Regional TSO cooperation

• Stronger NRAs and Member

States’ cooperation

• Policy regions

Market integration

Internal Energy Market

developed voluntary &

regionally: day-ahead,

intraday, balancing.

Shifting towards legal

framework under

network codes.

System operations

Regional security

coordinators (RSCs)

created on a voluntary

basis through

TSO cooperation under

ENTSO-E’s umbrella

System planning

Ten-Year Network

Development Plans and 6

Regional Investment

Plans.

The regional approach of TSOs within ENTSO-E

New governance:Policy Regions for delivering the Energy Union

Why• Coordinate energy mix & RES integration

• Coordinate interconnectors

• Speed up market integration

• Coordinate policy on market development

to speed up market integration

• Coordinate adequacy and risk

preparedness

How• Establish regional governance structures

with member states, regulators, TSOs,

stakeholders

Looking ahead: from regions to EuropeTogether we can achieve more!

Develop Policy

Regions to promote

progress and speed

Ensure consistency and

balance between

national, regional and

pan-European levels

Ensure regional and

pan-European

cooperation through the

contribution and

commitment of all

parties: Governments,

regulators, TSOs,

stakeholders and citizens

THANK YOUFOR YOUR ATTENTION

+32 2 741 09 50Konstantin.Staschus@entsoe.eu

Av. de Cortenbergh 100

1000 Brussels Belgium

For more information:

http://www.entsoe.eu