1st Technical Workshop: Gas Market Design and Natural Gas Transmission Grid Codes

EVENT DESCRIPTION

June 19-21, 2017 // Budapest, Hungary

 Organized by:

Sponsored by the U.S. Agency for International Development (USAID)

Organized by the the Energy Regulators Regional Association (ERRA) and

The National Association of Regulatory Utility Commissioners (NARUC)

Framework and Issues:

In the past ten years, the production of and demand for natural gas have increased dramatically around the world. To accommodate the increased demand for natural gas, countries are building and planning for new pipeline infrastructure and considering reforms to their natural gas sectors to promote competition and bolster the security of natural gas supply through regional cooperation and integration.

Regulators, in collaboration with government officials and stakeholders, are instrumental to developing the necessary regulatory framework to promote investment and set in place the regulations and rules of the road for markets to take shape and prosper.

With the funding support of USAID, NARUC and ERRA are launching a project designed around two of the most instrumental features of any country’s gas sector – the Transmission and Distribution Grid Codes. As part of this project, NARUC and ERRA will hold two interactive workshops in 2017 focusing on gas market design and models, the evolution of gas markets, Transmission and Distribution Grid Codes, and the necessary steps to harmonize grid codes to support regional trade and greater security of supply.

The project will also support the development of detailed Transmission and Distribution Grid Code frameworks to help regulators develop codes that are: 1) tailored to their own country-specific features and context; 2) designed to remove market-related obstacles to competition and trade; and 3) structured to support regional integration.

 

Objectives:

The regional workshop will engage energy regulators to:

  • Strengthen understanding of gas market design in the European Union and United States and provide case studies outlining the diverse transition steps countries have taken to reshape and reform gas markets toward greater competition and trade.
  • Review a model outline for a Natural Gas Transmission Grid Code that is compliant with Third Energy Package requirements, with specific presentations and examples on capacity booking, allocation process, nominations and denominations, and balancing.
  • Discuss steps and measures necessary to shape Transmission Grid Codes so as to remove market-related obstacles and support regional integration.
 

Program

DAY ONE, June 19, 2017

THEMATIC FOCUS: Gas Market Design and Transitional Steps to Creating a More Secure and Efficient Gas Sector  

08:45      Registration

09:00      Welcoming RemarksIntroduction of workshop participants

  • Chargé d'Affaires, U.S. Embassy Budapest
  • Ms. Jamila Amodeo, USAID
  • Mr. Attila Nyikos, Vice-Chairman, ERRA; Vice-President for International Affairs, Hungarian Energy and Public Utility Regulatory Authority, Hungary 

09:30      Gas Market Design in the European Union – The Current Structures, Features, and Developments in Gas Markets across the European Union

This session will outline the current structures, features, and developments in gas markets across the European Union. NARUC’s project advisor will describe the structure and makeup of gas markets in the EU and outline where EU member states stand with respect to implementing the Third Energy Package requirements in the natural gas sector. NARUC’s project adviser will then highlight the transitional steps that are characterizing countries’ gradual implementation of the Third Energy Package.

10:20      Coffee break

10:40      Gas Market Design and Developments in Hungary - A Perspective from the Hungarian Energy and Public Utility Regulatory Authority

  • Presenter: Mr. Attila Nyikos, Vice-President for International Affairs, Hungarian Energy and Public Utility Regulatory Authority, Hungary  

11:40      Transitioning to Third Energy Package Compliance—Facilitated Discussion

  • Moderator: Mr. Paul Sinton Stack, NARUC
  • Contributors: Workshop Participants 

Drawing upon the morning presentation about gas market design in the European Union, Paul Sinton Stack of NARUC will facilitate a discussion among workshop participants on the structure of gas markets in their respective countries and actions regulators are planning to take in order to accommodate and, indeed in some cases, facilitate the changes necessary to be in compliance with the Energy Community gas acquis. Regarding countries that are not signatories to the Energy Community Treaty, Mr. Stack will ask participants about the key drivers reshaping gas markets and the expected changes in regulatory frameworks to address these issues.

12:15      Lunch

13:15      United States – Overview of the US Natural Gas Sector and Markets

  • Presenter:  Mr. Andreas Thanos, Massachusetts DPU

From full regulation to gas supply deregulation and the introduction of an open access regime in transmission in the late 1970s, the US gas sector has undergone a significant transformation in the past forty years. Mr. Andreas Thanos will discuss the evolution of the natural gas sector in the US, outlining the key steps and regulations that reshaped both the gas transmission system and the current US gas sector as a whole. Mr. Thanos will also present the lessons learned and challenges that were confronted by US regulators and stakeholders over the course of this transition.  

14:10      Coffee break

14:30   Gas Market Evolution in Lithuania – Transitioning to Third Energy Package Compliance - TBC

15:30      Case Study on Gas Market Transitions - Greece and Italy

The regulatory frameworks for natural gas in Greece and Italy provide two perfect examples showcasing the different structures, methods, and timelines for implementing the Third Energy Package in the European Union. NARUC’s project adviser will examine the gas market transitions that have taken place in both Italy and Greece and highlight the key takeaways and relevance of those transitions to workshop participants’ respective countries. 

16:30      Roundtable Discussion - Developing a Roadmap for National Gas Market Structure Development

  • Moderator: Mr. Paul Sinton Stack, NARUC
  • Contributors: Workshop Participants 

This session will include a wrap-up of the day’s activities, including key takeaways and recommendations from the day’s session, and a moderated discussion on both the challenges and next steps workshop participants envision in natural gas sectors of their respective countries. Workshop participants will be asked to draw parallels and cite differences in the case studies discussed in the day’s presentations.

16:45      Wrap-up and Key Takeaways from the Day 

17:00      Adjourn


DAY TWO, June 20, 2017

THEMATIC FOCUS: Natural Gas Transmission Grid Code Structure and Essentials  

9:00        Natural Gas Transmission Grid Code Structure and Essentials – What are the Key Components for a Successful Transmission Grid Code?

The Transmission Grid Code is one of the most fundamental documents governing the natural gas sector. It outlines the technical and commercial rules governing the transportation of gas through the transmission system as well as records the rights and responsibilities of the transmission system operator in relation to the parties seeking access and use of the transmission system. In this session, NARUC’s project adviser will describe the basic function of a Transmission System Grid Code; the EC directives, regulations, and decisions that set the requirements for the transmission grid code in the EU; key principles for the development of a successful and efficient grid code; and a draft grid code structure by chapter, which details the similarities of Grid Codes across EU member states.  

10:00      Gas Transmission Grid Code Development – Case Studies of Serbia

  • Presenter: Ms. Branka Tubin-Mitrović, Senior Natural Gas Expert, AERS

During this session, Ms. Branka Tubin-Mitrović will provide a brief overview of the Serbian natural gas gas sector and describe the key factors, including both the primary legislation and market model, which gave shape to the present Transmission Grid Code. The presentation will outline the role of the regulator and network operator in drafting the Grid Code, the past and ongoing challenges to make the Grid Code compliant with the Third Energy Package, and future developments envisioned in the Serbian gas sector.

10:50      Coffee break

11:10      Gas Transmission Grid Code Development – Case Study of Georgia

  • Presenter: Mr. Irakli Galdava, Deputy Director of Gas, Georgian National Energy and Water Supply Regulatory Commission (GNERC), Georgia 

Mr. Irakli Galdava will provide a brief overview of the Georgian gas sector, focusing on key physical, legislative, and market design characteristics of the sector that will influence the development of the Georgian Transmission Grid Code. In his presentation, Mr. Galdava will also discuss Georgia’s challenges to make the Grid Code compliant with the Third Energy Package and its timeline and plan for implementation.

11:40      GNERC’s Development of the Metering and Connection Chapters

  • Presenter: Mr. Irakli Galdava, Director of Natural Gas Department, GNERC

In many ways, metering and connection are two of the first chapters that regulators draft, as they are the least affected by market design and model changes. In light of this, Mr. Irakli Galdava will discuss GNERC’s development of the Metering and Connection Chapters of the Transmission Grid Code.

The presentation will outline how metering and connection currently are conducted in Georgia, key considerations for GNERC and Georgian stakeholders in drafting the Metering and Connection Chapters, and the challenges and implementation plan for the two chapters envisioned by GNERC.

12:00   Transmission Grid Code Development Roundtable

  • Moderator: Mr. Paul Sinton Stack, NARUC

This session will feature an interactive discussion on the process and stages of Grid Code development, both in EU countries and across the region.

12:15      Lunch

13:15      Capacity Booking in the US Transmission System

  • Presenters: Mr. Eric Matheson, Pennsylvania PUC 

During this session, Mr. Eric Matheson of the Pennsylvania PUC will provide an overview of the capacity booking products in the US and procedures and rules governing the capacity booking process at the transmission system level. Mr. Matheson will discuss the role of marketers and traders in securing capacity, and the importance of a transparent electronic information platforms (e.g., Electronic Bullet Board).

In a brief follow-on presentation, NARUC’s project advisers will provide a presentation comparing the regulatory framework for capacity booking in the EU to that of the US.

14:20      Coffee break

14:40      Congestion Management in the US Transmission System

Presenter: Mr. Eric Matheson, Pennsylvania PUC

Regulators and transmissions system operators alike play a critical role in determining how bottlenecks and congestion will be managed on the transmission system. As a response to capacity hoarding, many EU countries have a use-it or lose-it policy, and the EU Network Codes envision the introduction of market mechanisms to efficiently alleviate congestion in the network.

Given the importance of congestion management, Mr. Eric Matheson of the Pennsylvania PUC will examine the processes and procedures of congestion management in the US transmissions system, and he will also discuss the relationship between the electricity and gas sectors and how can congestion management at the transmission system level be administered to secure reliability of both gas and electricity supply.

15:25      The Allocation Process

Allocation refers to the process of apportioning delivered gas volumes among system users. NARUC’s project adviser will outline the methodology and process used by TSOs in the allocation process across different EU member states.

16:05   Nominations and Programming of System Operation

16:45      Wrap-up and Key Takeaways from the Day 

  • Session Facilitator: Ms. Jamila Amodeo, USAID

The wrap-up session will address the key takeaways from the day’s presentations and discussions.

17:00      Adjourn


DAY THREE, June 21, 2017

THEMATIC FOCUS: Natural Gas Transmission Grid Code, Balancing Models and Implementation, and Harmonization of Codes to Promote Competition and Trade

 

9:00        Network Development Planning in the US versus the EU

  • Presenter: Mr. Eric Matheson, Pennsylvania PUC

In the US, the transmission system network is mostly built through contracts and not necessarily through long-term integrated resource planning as envisioned in the European Union, although transmissions system operators do employ forecasting models to anticipate interstate pipeline expansion needs. In back-to-back presentations, Mr. Eric Matheson and NARUC’s project adviser will examine natural gas transmission network development planning in the US and EU, respectively. 

10:20      Coffee break

10:30      European Union - Balancing Design and Models - Developing a Transitional Plan for Balancing 

11:25      United States - Balancing Design and Models

  • Presenter: Mr. Andreas Thanos, Massachusetts DPU

Mr. Andreas Thanos will outline how commercial and physical balancing are dealt with at the transmission system level in the US. Since balancing is mostly conducted through terms and conditions of balancing agreements, Mr. Thanos will provide examples of the general key terms and conditions are in those agreements and provide a few examples or case studies outlining how balancing works and the imbalance settlement process.

12:15      Lunch

13:15      Developing a Transitional Plan for Balancing – EU Case Studies 

14:00      Coffee break

14:20      Cross-Border Cooperation – TSO-NRA Collaboration on Balancing and the Steps to Harmonize Balancing Regimes

For coordination of balancing in the European Union, cross-border cooperation involving TSOs and regulators will have to take place on the following issues:

  • Nominations-renominations
  • Interconnection agreements and provisions for IPs
  • Short Term standardized products
  • Within-day obligations
  • Implementation of a trading platform, gas day and units
  • Trading possibilities within an adjacent market for balancing purposes
  • Interim Measures

15:00      Reviewing Next Steps and Wrap-up

  • Moderator: Ms. Jamila Amodeo, USAID and Mr. Paul Sinton Stack, NARUC
  • Contributors: workshop participants 

 

16:00      Adjourn


Course registration

In case you are interested in participation, please drop an email to the ERRA Secretariat: secretariat-at-erranet.org

 

Venue

Hungarian Energy and Public Utility Regulatory Authority (HEA)
Bajcsy-Zsilinszky út 52., H-1054 Budapest, Hungary

Budapest

Hungary

Your browser is out-of-date!

Update your browser to view this website correctly.Update my browser now

×