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European Federation of Energy Traders
1Brussels, 22 September 2009
Implementing the 3rd EU Energy package
Colin Lyle, EFET Gas Committee Chairman
www.EFET.org
22 September 2009 Brussels
Brussels 22 September 2009 2Colin Lyle, EFET Gas Committee
Brussels 22 September 2009 3Colin Lyle, EFET Gas Committee
Brussels 22 September 2009 4Colin Lyle, EFET Gas Committee
IMPLEMENTING THE 3rd EU ENERGY PACKAGEIllustration of the Developing EU Gas Market
Industrial & Commercial
Residential
LP Distribution
HP Transmission
Competing
ProducersCompeting Suppliers
Customer
Choice of
Suppliers
Demand
management
LNG
Storage
Regulated, Independent
Network Operators
Gas Interconnectors
Trading Hubs set Market Prices
Hub
LNG
I
O
OI
I/O I/O
Brussels 22 September 2009 5Colin Lyle, EFET Gas Committee
Its an open market, But I was here first.
IMPLEMENTING THE 3rd EU ENERGY PACKAGE Removing the barriers to help the market to work
Brussels 22 September 2009 6Colin Lyle, EFET Gas Committee
V N G
E n e r g i n e t
S v e n s k aK r a f t n ä t
G T S
F l u x y s
E O N - R . T .
G R T g a ze a s t
E n a g a s
B E B
G R T g a zs o u t h
S o t e g
G a l p D E P A
E e s t i G a a s
G e o p l i n
W i n g a s
3 H - g a s z o n e sE O N -
R . T .
V N G
E n e r g i n e t
S v e n s k aK r a f t n ä t
G T S
F l u x y s
E O N - R . T .
G R T g a ze a s t
E n a g a s
B E B
G R T g a zs o u t h
S o t e g
G a l p D E P A
E e s t i G a a s
G e o p l i n
W i n g a s
3 H - g a s z o n e sE O N -
R . T .
NB. Not all trading locations are
shown
Virtual hub (in-grid balancing point)
TTF
Huberator @Zeebrugge
Physical hub ( e.g border point)
PEG N
CEGH @Baumgarten
Trading hub withlimited pricetransparency
EGT
IMPLEMENTING THE 3rd EU ENERGY PACKAGE Traded markets are needed for clear price signals
GDNBP
Brussels 22 September 2009 7Colin Lyle, EFET Gas Committee
Large trading hubs are needed for sufficient liquidity.
Gas takes far longer to travel than electricity
High economic cost of full interconnection across whole of EU.
EU gas market will be a series of ‘pools’ rather than a ‘copper plate’
LNG and pipeline gas need access to balancing pools
E.g. IEA view of possible gas market development
IMPLEMENTING THE 3rd EU ENERGY PACKAGE Regional markets may provide long-term solutions
Brussels 22 September 2009 8Colin Lyle, EFET Gas Committee
Share understanding of the EU gas market design
Clear plans to establish market-based balancing
Improved provision of fundamental data
Multi-system operation (Regional cooperation)
Maximising capacity for market participants
Consistent regulatory approach to x-border investment
Encouraging competitive markets (gas hubs, storage etc...)
IMPLEMENTING THE 3rd EU ENERGY PACKAGE Some issues to tackle now
Brussels 22 September 2009 9Colin Lyle, EFET Gas Committee
European Federation of Energy Traders
Tel: +31 (0)20 5207970Email: [email protected]
www.efet.org
IMPLEMENTING THE 3rd EU ENERGY PACKAGEIFIEC Forum - 22 September 2009 Brussels
