Day ahead market coupling on German – Danish interconnectors

Mr Finn DehlbækDERA, Denmark

The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007

2 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007

Day ahead market coupling on German – Danish interconnectors

Goal and process

Day ahead market coupling by 4th quarter 2007

Coupling between European Energy Power Exchange (EEX) and NordPool Spot (NPS)

Joint auction office in HamburgEuropean Market Coupling Company (EMCC)

Process based on Memorandum of Understanding between 2 power exchanges and 3 TSOs and explicitly integrated with North Electricity REM

3 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007

Day ahead market coupling on German – Danish interconnectors

What will day-ahead market coupling on DE-DK achieve?

Improved trading not only between 2 countries (Germany and Denmark) but between the Nordic countries and continental Europe

Increasingly efficient market – irrespective of whoever the success might be attributed to

4 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007

Day ahead market coupling on German – Danish interconnectors

Some Keys to Progress in North REM

Focus on practical implementation Be specific as possible

Focus on limited number of parallel tasks (3 Implementation Groups = 3 first priorities)

DE-DK interconnector is one of 3 priorities Optimising use of interconnectors (DE-DK) Optimizing the use of interconnectors – “merchant lines = Baltic

Cable and Swepol” Transparency

5 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007

Day ahead market coupling on German – Danish interconnectors

What is needed for continued progress in North REM?

Build on achievements to date

Political support and stakeholder involvement is essential Regulators can inspire, be catalysts, facilitate co-ordination by

stakeholders Success depends on continued commitment and participation of

TSOs, Power Exchanges and other “Enablers of Change” European Commission must develop pan-EU legislation Member States must implement legislation Market actors must actively engage in removing barriers

Balance the desire for quick progress with workload: Focus on few topics at a time

6 The Regional Initiatives: Progress and Prospects Conference Brussels, 28 March 2007

Day ahead market coupling on German – Danish interconnectors

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North Electricity Regional Energy Market (REM)

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