1) The document discusses the wholesale electricity market and regulatory challenges in the Baltic region. It covers topics like electricity interconnections between Baltic countries, Projects of Common Interest to increase transmission capacity, and the certification of an independent system operator.
2) It also summarizes market surveillance cases from 2013 and 2014 that investigated high price peaks in the region. One case found the high prices were due to coinciding technical issues, while another found an effect called "paradoxically rejected block bids" drove prices up.
3) Data is presented on electricity prices in Latvia before and after joining the Nord Pool Spot power exchange, showing prices dropped significantly afterwards, increasing market liquidity and transparency. The SE-LT interconnection is hoped to
Introduction to Prompt Engineering (Focusing on ChatGPT)
The Wholesale Electricity Market and Regulatory Channenges
1. The Wholesale Electricity Market
and Regulatory Challenges
Baltic Energy Forum 2015, October 21, 2015
Dr.Valdis Lokenbahs
Public Utilities Commission of Latvia
2. Content
• Interconnections
• Projects of Common Interest (PCI)
• Independent electricity system operator ISO –
TSO certification
• Market surveillance
• CEREMP, REMIT, NRA cooperation
• NPS – before and after opening
• NordBalt Interconnection
3. Interconnections
Source: AS «Augstsprieguma tīkls», Nord Pool Spot
Interconnections:
• EE-LV = 2 interconnections
• LV-LT = 4 interconnections
• LV-RU = 1 interconnection
• EE-FI = 2 interconnections
More than 60% of time
congestion EE->LV
0%
20%
40%
60%
80%
100%
Congestion EE->LV, 2015
4. Congestion on EE-LV border
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul Aug Sept Okt Nov Dec
Congestion time from EE to LV, % of total
2014 2015
5. Projects of Common Interests (PCI)
• On 14 October 2013, the European Commission has adopted the first list of
248 PCIs, and the list of PCIs will be updated every two years
PUC decisions regarding the allocation of investment costs:
• PUC decision on April 9, 2014, No.77 on Internal Line between Ventspils, Tume and Imanta
(LV)
• PUC decision on April 23, 2014, No.90 on Interconnection between Kilingi–Nõmme (EE) and
Riga TEC 2 Substation (LV) and Internal Line between Harku and Sindi (EE)
In accordance with CEF :
• 3rd EE-LV interconnection received financial support of 65% of total costs
• 3rd Stage of Kurzeme Link received financial support of 45% of total costs
• Second PCI list will be accepted at the end of 2015, additionally there are
included projects from «Baltic corridor» for increase of capacity of 600MW:
• Internal line Rīgas TEC2 - Rīga HES as reinforcement of 3rd EE-LV interconnection
• Replacement of 330kV interconnection lines Tartu(EE) – Valmiera (LV) and Tsirgulina (EE) –
Valmiera (LV)
6. Independent electricity system
operator ISO – TSO certification
• On January 30, 2013 PUC completed a certification of an
independent electricity system operator ISO - JSC “Augstsprieguma
tīkls” (TSO)
• On February 1, 2015 JSC “Augstsprieguma tīkls” completed all
conditions of certification decision, and TSO has taken over the
following functions of commercial activity from JSC „Latvijas
elektriskie tīkli”:
• Service and maintenance of transmission system assets;
• Development of transmission system, construction of new networks,
rebuilding and refurbishment of existing networks.
9. Market surveillance in 2013
Number of investigated cases in 2013: 1
Case subject: Case relates to high price peaks in all Baltic countries
0
50
100
150
200
250
00 - 01
02 - 03
04 - 05
06 - 07
08 - 09
10 - 11
12 - 13
14 - 15
16 - 17
18 - 19
20 - 21
22 - 23
Elspot hourly prices in
EUR/MWh. June 25.
2013
Latvia Estonia Lithuania Finland
Source: Nord Pool Spot
PUC conclusion: Coincidence
of technical circumstances
simultaneously in all three
Baltic countries, Russia and
Belarus. As a result – lack of
capacity and high price peaks
10. Market surveillance in 2014 (1)
Case No.2: Case relates to high price peaks during July and August, 2014
-
50,00
100,00
150,00
200,00
250,00
00 - 01
01 - 02
02 - 03
03 - 04
04 - 05
05 - 06
06 - 07
07 - 08
08 - 09
09 - 10
10 - 11
11 - 12
12 - 13
13 - 14
14 - 15
15 - 16
16 - 17
17 - 18
18 - 19
19 - 20
20 - 21
21 - 22
22 - 23
23 - 00
NPS Elspot prices in Latvia, summer 2014
20.07.2014 30.07.2014 08.08.2014 07.08.2014 06.08.2014 05.08.2014
Source: Nord Pool Spot
12. Market surveillance in 2014 (3)
PUC conclusion: Price peaks appeared because of
phenomenon called «Paradoxically rejected
block bid»
13. CEREMP, REMIT
• CEREMP registration status: 14 MP registered
• October 7, 2015: data collection started (ACER)
• NRA co-operation:
• Nord Pool Spot Regulatory Council
• Market Monitoring Expert Sub-group of Nord Pool Spot
Regulatory Council
• Nord Pool Spot Regulatory Council Fundamental Transparency
Regulation expert Subgroup
• Common Nordic-Baltic Wholesale Market monitoring and
common UMM monitoring
14. Electricity prices before and after
NPS Latvia bidding zone opening
Source: Nord Pool Spot
43,31
48,49 50,08
40,15
-
10,00
20,00
30,00
40,00
50,00
60,00
2012 (ELE, 6 month) 2013 (ELE/LV) 2014 (LV) 2015 (LV, Q1-Q3)
Electricity wholesale market price in Latvia,
EUR/MWh
15. SE-LT interconnection – hope for
price drop in Latvia
Source: Nord Pool Spot
Sweden = 12,97 EUR
Latvia, Lithuania = 46,66 EUR
16. THANK YOU !
Dr.Valdis Lokenbahs
Public Utilities Commission of Latvia
www.sprk.gov.lv