hub design and third party access in germany-stefan müller

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H bd i d thi d t i G Hub design and third party access in Germany Stefan Müller-Reinisch th Bilbao, 24 th June 2014

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Institutional and Organizational Designs of Natural Gas Hubs: An Introduction to the Iberian Gas Hub

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Page 1: Hub design and third party access in Germany-Stefan Müller

H b d i d thi d t i GHub design and third party access in GermanyStefan Müller-Reinisch

thBilbao, 24th June 2014

Page 2: Hub design and third party access in Germany-Stefan Müller

agenda

1. Design and development of the GASPOOL-Hub

2. Third party access in the German market2. Third party access in the German market

3. Target model for procurement of balancing energy

4. Implementation of network code on balancing

224 June 2014

Page 3: Hub design and third party access in Germany-Stefan Müller

today: cross-quality market area

• connects Poland, the Czech Republic, Denmark, the Netherlands and BelgiumNetherlands and Belgium

• covers more than 350 gas grids in Germany and more than 350 balancing group managersbalancing group managers

• this creates a trade area for more than the half of the consumed H-Gas in GermanyGas Ge a y

• GASPOOL cross-quality market area (as of 1st October 2011); conversion possible p(H-Gas ↔ L-Gas)

24 June 2014 3

Page 4: Hub design and third party access in Germany-Stefan Müller

where we are come from…

19.07.2006: 19 markt areas

424 June 2014

Page 5: Hub design and third party access in Germany-Stefan Müller

responsibilities of GASPOOL

1. to grant a non discriminatory access to the market area by offering a standardised balancing group contract

2. to operate the virtual trading point

3. to run the processes neccessary for information provision/publication and3 to u t e p ocesses eccessa y o o at o p o s o /pub cat o a dfor invoicing balancing groups

4. undertake balancing actions in order to maintain the transmission gnetwork within its operational limits

524 June 2014

Page 6: Hub design and third party access in Germany-Stefan Müller

Development of potential trading participants

10/2009 10/2011 04/2014

Launch of GASPOOL Market area merger Status quoLaunch of GASPOOL

• 139 registered

Market area merger

• 264 registered

Status quo

• 397 registered BGMs BGMs BGMs

Operating balancing groups for:• High-cal gas: 504• Low-cal gas: 289• High-cal biogas: 93

Since launch of GASPOOL number of potential trading participants has

High cal biogas: 93• Low-cal biogas: 34

6

p g p ptripled

24 June 2014

Page 7: Hub design and third party access in Germany-Stefan Müller

Development of trading volumes at the GASPOOL VTP since 2013

Trading volumes at the GASPOOL VTP since 2013Comparison: monthly max (high-cal gas) in 2009/2010 was at 79m MWh

MWh

100.000.000

120.000.000

140.000.000

60.000.000

80.000.000

100.000.000

H-Gas

0

20.000.000

40.000.000 L-Gas

24 June 2014 7

Page 8: Hub design and third party access in Germany-Stefan Müller

growth rates of european trading points – GASPOOL leads

Quelle: edf, 2nd Annual Gas Supply Chain Management Summit

824 June 2014

Page 9: Hub design and third party access in Germany-Stefan Müller

Development of the churn rate at the GASPOOL VTP

Development of the churn rate at the GASPOOL VTP

24 June 2014 9

Page 10: Hub design and third party access in Germany-Stefan Müller

agenda

1. Design and development of the GASPOOL-Hub

2. Third party access in the German market2. Third party access in the German market

3. Target model for procurement of balancing energy

4. Implementation of network code on balancing

1024 June 2014

Page 11: Hub design and third party access in Germany-Stefan Müller

legal background of third party access

Core elements of third party access based on German Energy Act of 2005

di i i t t k• non-discriminatory network access• Internet publication of terms and conditions, tariffs etc.• TSOs offer entry and exit capacities in a standardised wayy p y• shippers need only one entry and one exit contract to get access to the

transportation system• system operators are obliged to cooperate and to establish standardised• system operators are obliged to cooperate and to establish standardised

rules to realise efficient processes (Cooperation on Agreement)

1124 June 2014

Page 12: Hub design and third party access in Germany-Stefan Müller

scheme of the balancing system in Germany

market area

entry-exit-modelmarket area

interconnectionpoints to

TSOVTP

entry contractadjacent marketareas(cross-border

DSOexit contract

and national)

DSO

1224 June 2014

Page 13: Hub design and third party access in Germany-Stefan Müller

characteristics of a market area

1. virtual pooling of several transmission networks to one balancing zone(physical connection is not necessary)

2. virtual trading point allows exchange of gas volumes between balancinggroups independet of capacity bookings

3. entity responsibile: market area manager (MAM)

1324 June 2014

Page 14: Hub design and third party access in Germany-Stefan Müller

agenda

1. Design and development of the GASPOOL-Hub

2. Third party access in the German market2. Third party access in the German market

3. Target model for procurement of balancing energy

4. Implementation of network code on balancing

1424 June 2014

Page 15: Hub design and third party access in Germany-Stefan Müller

Merit Order for balancing energy

11Title Market T ti

2Transactions

• Within ownmarket area viaenergy exchange

LocationalMarket Transactions

34Within own

4Standardizedlong-termProducts

Non-standardizedlong-term

Within ownmarket area via

Within ownmarket area via bilateral platform

•products

••

market area viaenergy exchange

Within adjacentmarket area via energy exchange

Within ownmarket area via bilateral platform

Within ownmarket area via bilateral platformenergy exchange

scope:• security of supply

24 June 2014 15

• security of supply • maximization of standardized (short-term) wholesale products (Exchange)

Page 16: Hub design and third party access in Germany-Stefan Müller

agenda

1. Design and development of the GASPOOL-Hub

2. Third party access in the German market2. Third party access in the German market

3. Target model for procurement of balancing energy

4. Implementation of network code on balancing

1624 June 2014

Page 17: Hub design and third party access in Germany-Stefan Müller

Previous steps/preview in the German market

1. In a letter of 9 December 2013, based on a consultation, the market area manager was asked by the Federal Network Agency to present it with a recommendation document for implementation by 3 March 2014.

2. Consultation period from 17 January 2014 until 31 January 2014; 20 responses.

3. Recommendation document on 3 March 2014 to Federal Network Agency; also available at www.gaspool.de.

4. The notice of commencement and 1st consultation for the determination procedure which is to lead to a general decision by the Federal Network Agency was published on 3 April 2013. Consultation until 5 May 2014.

5. Second draft consultation expected in late summer 2014.

6. Then determination, if possible, at the end of 2014.

1724 June 2014

Page 18: Hub design and third party access in Germany-Stefan Müller

Developments on implementation

Draft Network Code on Balancing submitted for

Second consultation draft of planned BNetzA ruling

Balancing submitted for comitology process in the spring of 2013

First consultation draft of planned BNetzA ruling

Spring 2013 October 2013 January 2014 April 2014Late summer

2014December

2014

Comitology process Cons ltation of theComitology process completed in October 2013

Consultation of the recommendation document prepared by MAOs and TSOs in January 2014

Final ruling to be issued by BNetzA

24 June 2014 18

Page 19: Hub design and third party access in Germany-Stefan Müller

Outlook

1. Far-reaching changes: in particular, provision of information/ within-daystructuring/compensation energy/daily network accounting.

2. Change in control energy procurement and VTP nomination (lead time is reduced to 30 minutes).

3. Final system not known until determination of the general decision; probably at the end of 2014.

4. In principle, implementation by 1 October 2015 with regard to intra-daystructuring and the provision of information, but extension until 1 October 2016 applied for.pp

1924 June 2014

Page 20: Hub design and third party access in Germany-Stefan Müller

Thank you for your attention. Any questions?Any questions?

24 June 2014

www.gaspool.de

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Page 21: Hub design and third party access in Germany-Stefan Müller

Your contact

Stefan Müller-Reinisch

GASPOOL Balancing Services GmbHReinhardtstraße 52 ▪ 10117 Berlin

Phone: +49 30 364289-500Fax: +49 30 364289-222Email: [email protected]

24 June 2014 21