ENTSOG BAL NC Monitoring Report 2016

3.1.3 Trading in Adjacent Zones

TSOs may seek NRA approval for trading STSP in adjacent zones as an alternative to the trading title products or locational products in their own balancing zone. In addition to the three coun- tries (DE, PL and SK) that have already imple- mented this option, Czech Republic has also stated that the TSO request was approved by the respective NRA. In Czech Republic this option is ranked in the merit order as the last measure. It is expected to be used only exceptionally, there- fore the limitation of access by other network us- ers is reported as negligible. (Further details are provided in Annex II, table 2.3 ) Regarding the cross-border cooperation be- tween TSOs when establishing any new STSP, only Germany reported having done it in accord- ance with to Art. 7.7 of BAL NC compared to 1 October 2015. Romania indicated that due to the limited interconnection capacity, the TSO does not currently have the possibility to include the IP in the balancing zone and therefore, it is not able to develop STSP with the neighboring countries. Spain clarified that the necessary cooperation was developed under the South Gas Regional Initiative umbrella. No new STSPs have been identified as necessary in the SGRI after 1 October 2015. Gas transfer between two balancing portfolios within one balancing zone shall be done by dis- posing and acquiring trade notifications submit- ted to the TSO in respect of the gas day. The in- tention is to incentivise network users to optimise their gas portfolios efficiently, so that the need for TSOs to undertake actions would be mini- mised. Independently from their applied implementa- tion deadline, all countries must implement trade notifications by 1 October 2016.

Germany and Poland confirmed the annual review of applicable terms and conditions. Slo- vakia reported it as not applicable. It is only im- plemented in the merit order as a backup to the existing balancing platform. An overview table of the reported merit order with the balancing products per balancing zone or country is available in Annex II, table 2.4 .

3.1.4 Operational Balancing Implementation Practices

To foster the liquidity of the short term wholesale gas market, the NRA can incentivise the TSO to undertake balancing actions efficiently or to maximise the undertaking of balancing actions through trade in STSP. Four (AT, ES, IT and UK- GB) of the five countries that, in the previous re- port, had indicated that an incentive mechanism was already implemented or foreseen, con- firmed having established an incentive mecha- nism for optimising TSO balancing actions by 1 October 2016. Further details are provided in Annex II, table 2.5.

3.2 BALANCING SYSTEM (CHAPTER II OF BAL NC)

In Map 3 below it can be seen that 24 countries including Estonia (AT, BE/LU, BG 12) , CZ, DE, DK, ES, FR, HR, HU, IE, IT, LT, NL, PL, PT, RO, SE, SI, SK, UK-GB and UK-NI) except Greece have reported the establishment of a scheme that al- lows network users to transfer gas between two balancing portfolios within one balancing zone as well as establishing a trade notification by 1 October 2016. Greece indicated the planned implementation of the trade notification within 2018. However, network users are currently able to transfer gas between two balancing portfolios by submitting nominations at the Virtual Nomi- nations Point (VNP) of the Greek NGTS.

12) Bulgaria reported having set Virtual interconnection point between the two balancing zones – Transfer point by 1 January 2017.

ENTSOG BAL NC Monitoring Report 2016 |

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