OPCOM: role, mission, performanceOPCOM: role, mission, performance
earning every Day Aheadyour trust
%
6.85
15.45 + 9.58CENTRALIZED BILATERAL + DAY AHEAD
2008
2005
September 22 – 26, 2008Brussels, Belgium
DAY AHEAD
Executive Exchange on Coordinated Cross Border Transmission of Electricity – an Examination of the European Union
2000
Romania started spot market without privatization.
But the full unbundling of TSO and the National Company’s split was perceived as a clear attempt towards competitive structure building.
1991-1998 Integrated Utility RENEL (generation, transmission, distribution)
1998 Regulatory Authority
1998-2000 National Integrated Company + Nuclearelectrica
2000-2007
The Beginning, September 2000
Market opening
Participants’ number
Bad issues
Only the Generation voiceForecast, as inelastic demand, suppliers not involved No penalty for imbalances No incentive for supporting the balancePrice cap, distorting the price
Good issues
Competition acceptedContinuously increased opening degreeMarket matured as structure and participants’ behaviorNeed of change acknowledged
5 Years Operation, September 2000 – June 2005
Political decision, all the period
European Commission grants
- The Commercial Code of the Electricity Market (ANRE – KEMA)
- The IT trading platform (OPCOM – AREVA T&D, OMX)
World Bank involvementRoad Map in the electricity field (2003):
- guarantee condition for the WB loan award- a main pillar for the chapter 14 (“Energy”) closure
Electricity Market ProjectConsultancy Kema – Nord Pool Consulting
Ministry
World Bank
Nord Pool Consulting
KEMA Consulting
KEMA Consulting AREVA T&D
The New Trading Platform. Preparatory Works. 2003 - 2005
OPCOM
Ministry, ANRE, Transelectrica, OPCOM
• The market is moving from a centrally scheduled system to a self scheduled system
• The market participants have the possibility to negotiate bilateral contracts for exchange of electricity
• A voluntary power exchange is established where the market participants can purchase and sell electricity on hourly contracts for delivery next day by introducing bids expressing their willingness
• There is established a Balancing Market where the TSO can get resources for balancing the electricity system
Outside the PX
The New Trading Platform. Principles.
• The removal of the pool mechanism
• Replacement with two-side closed auction
• Role of the forecast disappears from market clearing price calculation
• The removal of the price cap
• Internal congestions: no impact on market clearing price
DAM. A new mechanism enabling real price discovery.
CLOSED AUCTIONS
Electricity Pricing
numbers & figures sell
buy
• Liquid spot market (evolving from 469 MWh/h on average in 2006 towards 598 MWh/h on average in the first eight months of 2008, meaning 9.49% of net consumption)
• Increasing number of participants: 81 • Not concentrated market: HHI value, lower than 1000• Consistent price, its value depending on market conditions
38 months new DAM operation. Time of statistics. 2005 - 2008
DAM Trades 01.07.2005-31.08.2008:
Registered participants : 81
2005 2006 2007 2008 Average Price [lei/MWh]: 125.50 157.63 158.95 176.17Average Price[EURO/MWh]: 34.94 44.78 47.89 48.43
2005 2006 2007 2008(6 months) (8 month)
Volume (TWh) 1.72 4.11 5.04 3.50Market Shares (%) 6.72 7.74 9.33 9.49
Maximum Market Share(%): August 2007 12.76
4648
5254
58 656971
7274
7576
787980
8486
92959595959595
99989797
989998
989799
102101
7981
40 50 60 70 80 90 100 110
July 2005
September 2005
November 2005
January 2006
March 2006
May 2006
July 2006
September 2006
November 2006
January 2007
March 2007
May 2007
July 2007
September 2007
November 2007
January 2008
March 2008
May 2008
July 2008
participants’ interest
Change of
settlement
rules
0
40
80
120
160
200
Dec-07 Feb-08 Apr-08 Jun-08 Aug-08
[Euro/MWh] comparing prices
• Liquid spot market (evolving from 469 MWh/h on average in 2006 towards 598 MWh/h on average in the first eight months of 2008, meaning 9.49% of net consumption)
• Increasing number of participants: 81 • Not concentrated market: HHI value, lower than 1000• Consistent price, its value depending on market conditions
38 months new DAM operation. Time of statistics. 2005 - 2008
0%
25%
50%
75%
100%
December2007
February2008
April2008
June2008
August2008
Nord Pool - Oslo
GME- Roma
EEX - Leipzig
APX - Amsterdam
Powernext - Paris
Belpex - Brussels
OPCOM - Bucharest
EXAA - Vienna
TGE - Warszawa
OTE - Prague
Borzen - Ljubljana
comparing shares
SellOffern+1
PUBLIC AUCTION
Sell Offer
i
Bilateral contracts centralized markets. Transparency of prices.
Continuous trading
Forward physical delivery. Standardization.
Electricity Pricing
4545
4852 55
56575959
62 6775 79
8081 87
888991
909091
90909190
9089
888888
9290
40 50 60 70 80 90
December 2005
February 2006
April 2006
June 2006
August 2006
October 2006
December 2006
February 2007
April 2007
June 2007
August 2007
October 2007
December 2007
February 2008
April 2008
June 2008
August 2008
participants’ interest
33 months CMBC operation. Time of statistics. 2005 - 2008
CMBC Trades 01.12.2005-31.08.2008:
Registered participants : 90
2006 2007 2008
Weighted Average Price [lei/MWh]: 126.77 167.37 177.44 Weighted Average Price [EURO/MWh]: 36.00 48.35 49.99
Deliveries 2006 2007 2008
Volume (TWh) 1.25 6.51 8.49Market Shares (%) 2.41 12.13 15.45
Maximum Market Share(%): deliveries for March 2008: 18.24
460,320
22,320 45,300156,840
831,840
1,765,920
1,502,640
697,440
0 62,520
527,040
219,600
2,496,270
2,950,850
117,360
1,432,540
285,500
73,440 51,25793,600
116,800128,425
306,600335,800
92,80087,600
1,044,360
224,45047,06530,8702,1600
547,384
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
December2005
February2006
April2006
June2006
August2006
Octomber2006
December2006
February2007
April2007
June 2007
August 2007
October2007
December2007
February2008
April2008
Iunie2008
August2008
Cont
ract
ed Q
uant
ity [M
Wh]
0
5
10
15
20
25
30
35
40
Num
ber o
f Bila
tera
l Con
tract
s
Contracted Quantity Number of Bilateral Contracts
16 3237
404040 46
46 5153
545558 61
6167
686969
73 7675
77777980
818282
8382828283
10 20 30 40 50 60 70 80 90
November 2005
February 2006
May 2006
August 2006
November 2006
February 2007
May 2007
August 2007
November 2007
February 2008
May 2008
August 2008
participants’ interest
A price for GREEN. 2005 – 2008.
CMGC Trades 01.11.2005-31.08.2008:
Registered participants : 83
2006 2007 2008
Number of Green Certificates: 20,939 41,364 50,032
Average Price [lei/certificate]: 155.00 142.72 151.63 Average Price [EURO/certificate]: 42.00 42.00 42.00
102 79 113 78 90 78 101
18,541
1,453581 308 219 182
3,258
1,008
2,807 2,325 2,717
4,304
21,548
2,107
5,106
9,021 9,021
11,636
7,2547,994
289 56
5,997
89934 104 166
0
4,000
8,000
12,000
16,000
20,000
24,000
Nov ember 2005
February2006
May2006
August2006
Nov ember2006
February2007
May2007
August2007
Nov ember2007
February2008
May2008
August2008
Num
ber o
f Gre
en C
ertif
icat
es
32
34
36
38
40
42
44
46
[Eur
o/ce
rtific
ate]
Traded Volume (Number of Green Certificates) Market Clearing Price
2007
2008
• Early spot market’s start in 2000
• 8 years gathering experience and supporting the Romanian market liberalization
• New Trading Platform’s start middle 2005
• One of the most liquid power exchange, among first eight markets in EU in the Data Monitor ranking
A summary of the current status
Thank You for attention !
ww
w.o
pco
m.r
o
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