Participant List
1. Vidmantas Jankauskas (Cairman of Lithuanian National control Commission for Prices and Energy)
2. Aistija Zubaviciute (National control Commission for Prices and Energy)
3. Rimvydas Sinkevicius (National control Commission for Prices and Energy)
4. Anzelmas Bacauskas (Lietuvos Energia)
5. Vladas Paskavicius (Lietuvos Energia)
6. Vladimir Nozdriakov (Lietuvos Energia)
7. Jonas Garbaravicius (Lietuvos Energia)
8. Giedrius Radvila (Lietuvos Energia)
9. Ausra Pozeraite (Lietuvos Energia Institute)
10. Jonas Rimantas Kazlauskas (Ministry of Economy, Republic of Lithuania)
11. Zanna Juciene (Ministry of Economy, Republic of Lithuania)
12. Jorg Falck Christensen (Elkraft System consultant in Lithuania from Denmark) Consultant
13. Peep Soone (Eesti Energia AS, Main Grid)
14. Jaanus Ojangu (Eesti Energia AS, Main Grid)
15. Roomet Hausman (Eesti Energia AS, Main Grid)
16. Robert Laane (Estonian Energy Market Inspektoriat)
17. Vilnis Kreslins (Baltic Power Systems Control Centre)
18. Janis Ositis (Baltic Power Systems Control Centre)
19. Maija Martinsone (Baltic Power Systems Control Centre)
20. Aivar Tihane (Baltic Power Systems Control Centre)
21. Charles F. Zimmermann (NEXANT Consultant in Latvia, USA)
22. Annelie Gabrielson (ECON consultant in Latvia, SWEDEN)
23. Juris Ozolins (Latvian Development Agency)
24. Liga Stage (Latvian Development Agency, Project Assistant)
25. Dace Bite (Energy Regulation Council of Latvia; Head of Information division)
26. Ruta Vanaga (Energy Regulation Council of Latvia)
27. Varis Boks (Latvian High Voltage Network)
28. Voldemars Lapinskis (Latvian High Voltage Network)
29. Kaspars Grava (Latvian High Voltage Network)
30. Artis Vitins (Latvian High Voltage Network)
31. Dainis Dravnieks (Ministry of Economy, Republic of Latvia)
Conclusions and Recommendations
A. Market configuration.
Meeting participants fully agreed that Common Baltic Electricity Market means Single Trading Area ( STA) for three Baltic States in Electricity Market terms. Transmission Network of each State forms market access place for generators, customers and traders based in particular country, but access fees from one country to other would be unacceptable. The principles of the reciprocity inside and outside the STA must be used. There must be also used the same cross-border tariffs in size for the systems outside the STA or there should be negotiated terms (Cross-border trade rules) according export/import/transit issues between three countries in respect of the trade outside the STA. Post stamp tariff principle for system users is recommended.
B. Market structure and participants.
It is reasonable to start market opening and electricity trade with eligible customers and deregulated generators/suppliers. 12-15 % market opening is prudential approach and affordable target to test markets and consequences on systems and generation sustainability. Practically 10-15 eligible customers in each country are related to amount of transactions Transmission and Distribution System Operators (TSO and DSO) will cope with. In initial stage market represents bilateral trade between eligible customers and generators/suppliers (OTC deals). This will be stage when information and skills of market participants will be tested.
Indicators to assess Transmission System Operator's/ Market Operator's (TSO/MO) readiness to fulfil they role in competitive electricity Market:
1. Metering data collection from Qualified Customers and Generators/Suppliers systems.
2. Communication links
3. Hardware and software to assess system proper functioning, especially balance.
4. Trained personal in Control Rooms to cope with incoming information.
5. Personal able negotiate Network/ System service agreements with Potential Market Participants - QC, Generators and Suppliers/Traders. This will require legal and risk management specialists.
6. Ability to provide certain market information - according relevant Market Rules and practices
C. Access to the Market.
Legislation of all three Baltic countries provides legal basis for rights of system users to access networks. Regulated Third Party Access is required. Based on published by Network service providers / TSO/ DSO Access Rules and payment terms market participants must negotiate directly commodity (electricity) price. To encourage competition and increase market liquidity it is reasonable to minimize and flatten payments for generators in all market area. Zero payment is the easiest way to achieve the best result. Customers (Loads) must once pay "entrance fee" in form of Transmission and Distribution Tariff in service area of respective national network service provider. TSO must bilaterally find volumes of network loses caused by follow trough export/import agreements of trading parties. The compensation those loses is subject of agreement between TSO involved. Above - mentioned zero payment to generators is not possible until all three TSOs sign a contract about reimbursing for the use of each other's networks. Among other things it takes into account the volumes of network losses caused by follow trough export/import and transit agreements of trading parties.
D. Regulatory regime
National regulatory institutions will coordinate they methodologies to monitor or approve transmission and distribution system tariffs and access rules. Published transmission and distribution system tariffs will serve as benchmark to assess performance of network service providers among Baltic States. It would be beneficiary for market participants of Baltic States if tariffs are published in home pages of TSO in English as well. Forum continues on regular basis between Regulators and Transmission System Operators to find out balanced approach on further Market development and system security.
E. System stability and reliability of supply
Additional market participants and transactions will put more pressure on TSO/MO, which are responsible for stability and security of supply. But also gives opportunity to introduce market elements in system services like regulatory capacity markets and markets of ancillary services. There are differences in market scope and responsibilities between market participants and market infrastructure providers- TSO/MO. TSO/MO is responsible for momentary national balance of consumption and supply. Balance and reserve responsibilities will be necessary shift partly on market participants when following market opening is envisaged.
It is necessary to have a body (an association) for co-ordination and co-operation between system operators to maintain a system stability and reliability of supply in the Baltic countries, like NORDEL of the Nordic countries or CENTREL of Central European countries.
The association could serve as a forum for technical co-operation and co-ordination between system operators and actors who have technical facilities for the operation and development of the electric power system.
The primary goal of the association could be to create prerequisites for, and to develop further, an efficient Common Baltic electricity market.
F. Ancillary services.
Services essential for secure functioning of power system and quality of product- electricity must be delivered by power plants, network service providers and in some cases - by customers and are co-ordinated by TSO/MO and DC Baltija under central dispatch procedures. These services are subject for trade in developed electricity market. Market of reserves is closest affordable task.
G. Connection to Nordic or West-European electricity systems.
Connection to Finnland's Main Grid or/and Polish Grid is task for Baltic interconnected system at least in medium term. Synchronous connection is leading to closest co-operation and trade also enhancing substantially security. Whether connection should be synchronous or asynchronous will be determined by economic conditions and market potential. In case of project financing interconnections maturity of Baltic electricity market will be crucial factor. Volumes traded via interconnections will prevail under physical flows.
Baltic power companies and TSO/MO must co- ordinate their activities for connection to Nordic and USTE systems.
