2nd Technical Workshop: Natural Gas Transmission and Distribution Grid Codes Project
EVENT DESCRIPTION
December 7-8, 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)
Topical Areas to be Covered
The USAID-supported workshop, organized by ERRA and NARUC, will explore regulators’ role in facilitating gas infrastructure development, network integration, and cross-border trade. The two-day workshop will feature presentations and case studies covering two technical areas where regulators play a critical role: ten year network development plan and Transmission Grid Code development.
While natural gas transmission system operators (TSOs) play a predominant role in both developing network development plans and drafting Transmission Grid Codes, regulators must review, approve, and monitor them and oversee their implementation. At times, they must also directly collaborate with TSOs to ensure that regulatory requirements are adequately addressed and incorporated. In light of this, workshop presentations and discussions will cover:
- Regulators’ Role in Reviewing, Approving, and Monitoring Natural Gas Ten Year Network Development Plans
– The workshop will provide an overview explaining the basics of how network development plans are constructed.
– Presentations will explore how regulators can devise a methodology and/or select criteria to conduct economic and financial appraisals of gas infrastructure projects and overall network development plans, including:
- Financial viability of projects (i.e., impact on average use-of-system tariff)
- Economic evaluation of supply source diversification, improved security of supply, energy cost reduction, and environmental benefits
- Assumptions / inputs into models or methodologies that are used in the regulators’ evaluations.
- Regulators’ Role in Harmonizing Transmission Grid Codes to Support Regional Integration
The workshop will cover best practices and case studies from a diverse set of countries on harmonizing Transmission Grid Codes to support regional integration and trade and how regulators can effectively partner with utilities to facilitate this harmonization. Presentations will discuss both regulators and TSOs’ roles and the transitional steps that can be taken to make progress towards compliance with the EU Third Energy Package and implementation of EC Network Codes. Specific subject areas to be discussed include:
- Delivery of gas at entry / withdrawal at exit points
- Interoperability
- Capacity booking
- Congestion management
- Nominations / renominations
- Quantity allocation
- Balancing
Workshop Agenda
Transmission Grid Code
Registration
Welcoming Remarks
Head of Department on Gas Supervision and Price Regulation, Hungarian Energy and Public Utility Regulatory Authority (HEA)
Mr. Daniel Babinski, Economic Officer, U.S. Embassy Hungary
Ms. Edit Farkas, Head of Department on Gas Supervision and Price Regulation
Project and Workshop Overview
Transitioning Grid Codes – Transitioning to EC Network Code Implementation – A Comprehensive Overview
This session will outline the process and the key prerequisites for efficient application of grid codes in line with the 3rd Energy Package. In addition, it will focus on the role of the regulator and actions that need to be taken by the regulator to apply the key provisions in the preparation of the grid code. The presentation will emphasize that the regulator plays an important role in this process, even though it will differ from one country to another.
Coffee break
Case Study on Grid Code Harmonization in Latvia
Commissioner Snuka will provide an overview of transmission grid code harmonization in Latvia, as well as the recent work in the Baltic region on gas market development and regional integration.
Case Study on Grid Code Harmonization in Turkey
This session will cover efforts in Turkey to develop a gas hub, to facilitate the Trans-Anatolian Natural Gas Pipeline (TANAP), and work associated with grid code harmonization.
Lunch
Case Study on Transportation Harmonization Efforts in the US
From the perspective of a transportation company, Ms. Smith will discuss harmonization in the context of the State of Alaska and provide an overview of the challenges that were faced and resolved as part of the restructuring process.
Case Study on Grid Code Harmonization in Turkey
This session will cover efforts in Turkey to develop a gas hub, to facilitate the Trans-Anatolian Natural Gas Pipeline (TANAP), and work associated with grid code harmonization.
The Harmonization of Transmission Grid Codes Progress – Facilitated Discussion
Contributors: Workshop Participants
Coffee break
Practices for Grid Code Harmonization – Examining Capacity Booking and Congestion Management
The presentation will focus on the practical issues, concepts and options regarding capacity booking and congestion management in EU markets, as described in the relevant reports by ACER.
Best Practices for Grid Code Harmonization – Examining Balancing and Interoperability
The presentation will focus on the practices of allocation and balancing across EU member states and how they are applicable to the workshop participants
Group Discussion on Roadmap for Regulator in the Development, Revision, and Regional Harmonization of Transmission Grid Codes
Contributors: Workshop Participants
Mr. Stack will provide a brief overview of the recommendations and next steps from the report followed-up by discussion with the workshop participants.
Adjourn
Group Dinner at Matyas Pince Restaurant
Investment Planning
Essentials of TSO Network Plan Development
This session will outline the fundamentals of how TSOs construct network development plans.
Key Assumptions and Inputs Driving Optimized Infrastructure Planning
Coffee break
Case Study of United States
Ms. Smith will present on practices and modeling from the perspective of a transportation company in the US, including how investment opportunities are identified, appraised from an economic and financial perspective, and prioritized.
Lunch
Reviewing and Approving TYNDP – A Regulatory Perspective
This session will outline the overall proposed framework for evaluation of TYNDPs.
Case Study of Hungary
Ms. Edit Farkas will provide a detailed case study on Hungary’s experience in reviewing and approving TYNDPs.
Coffee break
Presenting the Outline of Regulatory Investment Guide for Assessing Natural Gas TYNDPs and Constituent Projects
This presentation will focus on methodologies to conduct economic appraisals of gas infrastructure expansion, network plans, and transmission grid codes.
Examples of Economic Cost Benefit Analysis in Natural Gas Projects
Mr. Penglis will outline practical examples of cost benefit analysis of natural gas projects.
How to Use the Framework to Develop National and Regional-Level Methodologies – Facilitated Discussion
Contributors: Workshop Participants
Wrap-up and Key Takeaways from the Day
The wrap-up session will address the key takeaways from the day’s presentations and discussions.
Adjourn
Speaker bio
Course registration
In case you are interested in participation, please drop an email to the ERRA Secretariat: secretariat-at-erranet.org
Materials
DAY 1:
Thomaidis:Transitioning to EC Network Code Implementation pss
Snuka: Grid Code Harmonisation Latvia
Kalaycioglu: Turkish Natural Gas Market
Smith: Case Study on Transportation Harmonization Efforts in the US
Orlandini: Case Study on Grid Code Harmonization in Italy
Thomaidis: Practices for Grid Code Harmonization – Examining Allocation and Balancing
Day 2
Smith:Network Development Plans rev. 1
Orlandini: Essentials of TSO Network Plan Development
Orlandini: Key Assumptions and Inputs Driving Optimized Infrastructure Planning
Penglis: Reviewing and Approving TYNDP A Regulatory Perspective
Hungarian Gas Act+Govermental Decree
Penglis: Outline Regulatory Investment Guide for TYNDP and Constituent Projects
VIS Economic & Energy Consultants S.A.: Harmonization and Standardization of Grid Codes – FINAL
Venue
Hungarian Energy and Public Utility Regulatory Authority (HEA)
Bajcsy-Zsilinszky út 52., H-1054 Budapest, Hungary
