INTERNAL MARKET OF ELECTRICITY AND INFRASTRUCTURE

1
INTERNAL MARKET OF ELECTRICITY AND INFRASTRUCTURE
European Commission
Matti Supponen DG Energy and Transport
Baltrel Conference Helsinki 10.9.2002
2
Market Opening- electricity
100
35-65
minimum
3
Price comparisons - electricity
4
Electricity market Network Tariffs
High voltage
Medium voltage
Low Voltage (Household)
Benchmarking
Directorate General for Energy and Transport
5
Completing the internal energy market Progress
so far

The Commission proposed completion of the
electricity and gas markets on 13 March 2001
The European Parliament adopted its first reading
on 13 March 2002
The European Council meeting in Barcelona adopted
Conclusions on the issue on 16 March 2002
The Commission amended its proposal on 7 June 2002
Directorate General for Energy and Transport
6
Results of Barcelona

• EP and Council to adopt proposals by 2002
• Opening to all non-household clients in 2004
• Ensuring effective regulation
• Non-discriminatory access to the network on the
  basis of transparent, published tariffs
• Ensure separation between transmission and
  distribution and production and supply
• Adopt rules for cross border trade in electricity
• Further measures to be decided before 2003 Spring
  European Council
• Minimum 10 import capacity required

7
Segmented markets
The European electricity system may be considered
as consisting of one core area and satellites
with limited interconnection capacity islands
(Cyprus, Malta)
Ireland and Northern Ireland
Great Britain interconn. capacity 3
Scandinavia/Nordel interconn. capacity 4
Baltic states
Romania
Core area Germany, France, the Benelux, Austria,
Switzerland.
Centrel
Bulgaria
Greece
The Iberian peninsula interconn. capacity 2
Italy interconn. capacity 7
Turkey
8
Electricity Import capacity and import share
Importation

38
40
Objective import capacity share / total capacity
gt 10
30
23
23
21
22
22
21
20
20
17
16
14
13
12
10
12
9
7
6
7
8
10
5
6
4
3
3
3
1
1
0
DK
S
A
B
FIN
NL
D
F
I
P
GR
IRL
E
UK
9
Bottlenecks in electricity networks
Bottlenecks
10
Proposed actions
Five main areas of actions
Improving the use of existing infrastructure
Ensuring a stable and favourable regulatory
environment for new infrastructure
Re-focusing Community financial support in
priority projects
Political commitment at the Community and
national level
Gas supplies to Europe
11
Challenges
Local resistance
National interest versus European added value
12
New electricity priority projects
Electricity priority projects of European Interest
7 projects
UK-Continental and North Europe increase
connection capacity
UK-Ireland-Northern Ireland increase connection
capacity
Denmark-Germany increase connection capacity
5
6
7
6
France-Benelux-Germany network reinforcement
5
1
2
2
4
Connect Greece to the core area
2
4
3
4
3
France-Spain-Portugal increase connection
capacity
Italian borders increase connection capacity
13
Conclusions

• Stable environment to invest in the European
  Energy infrastructure is needed
• Much can be done by a better use of the existing
  infrastructure
• Network reinforcement is necessary for missing
  links (10 target)
• The Commission fully supports the establishment
  of a Baltic Electricity Market, connecting it
  with the rest of EU and, with certain conditions,
  connecting the Russian electricity market