3rd Technical Workshop: Gas Market Design and Natural Gas Transmission Grid Codes

EVENT DESCRIPTION

                                                                         

May 21-23, 2018 // Vilnius, Lithuania

 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)

Co-hosted by the National Commission for Energy Control and Prices of Lithuania (NCC)

Framework and Issues:

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. The workshop will focus on the following topics: 1) regulators’ role in reviewing, approving, and monitoring natural gas ten year network development plans; and 2) regulators’ role in harmonizing transmission grid codes to support regional integration.

 

Workshop Agenda

DAY ONE, May 21, 2018

THEMATIC FOCUS: Transmission Grid Code

08:45      Registration

09:00      Welcoming Remarks

Ms. Diane Kohn, Deputy Political and Economic Chief, US Embassy of Lithuania

The Honorable Inga Žilienė, Chair, National Commission for Energy Control and Prices

Mr. Thomas Pearce, Technical Advisor, National Association of Regulatory Utility Commissioners

09:15      Project and Workshop Overview

Presenter: Mr. Thomas Pearce, NARUC

09:20      Case Study - Lithuania – Regional Baltic-Finnish Gas Market Creation: Results Achieved and Future Challenges

               Presenter: Marta Vorobjova, National Commission for Energy Control and Prices; Vytautas Ruolia, Amber Grid

Ms. Marta Vorobjova will present the process and results achieved from regulators’ perspective when creating a regional market, and Mr. Vytautas Ruolia will follow, representing Lithuanian gas TSO. Mr. Ruolia will introduce the tasks on TSOs’ side aimed to create a regional market.           

10:45      Coffee break

11:05      Contextualizing Transmission Grid Codes in the Natural Gas System - The Intersection of Transmission and Distribution Grid Codes

               Presenter: Fotis Thomaidis, VIS Consultants

Through previous workshops, participants were introduced to the transmission grid code. This presentation will provide an outline of the contents of a distribution network code and highlight the points of intersection with the transmission grid code. The presentation will specifically focus on the allocation of volumes, and the requirements of cooperation between the TSO and DSO for allocation throughout the system.

11:50      Serbia Case Study – Intersection of Transmission and Distribution System Regulation

               Presenter: Branka Tubin-Mitrovic, Energy Agency of Serbia

Building upon the morning’s presentation from Dr. Thomaidis, Dr. Tubin-Mitrović will present a case study from the perspective of the Energy Agency of the Republic of Serbia (AERS) on the intersection of transmission and distribution network codes with a particular focus on allocation rules.      

12:35      Lunch

13:35      Harmonization of Grid Codes - Interconnection Agreement Contents and Case Studies

               Presenter: Fotis Thomaidis, VIS Consultants

Dr. Thomaidis will describe the key contents of an interconnection agreement between TSOs and provide examples of such agreements in Europe. The presentation will also identify the role of the regulator, according to EC Regulations, and detail practical application of such agreements in the EU.     

14:20      Coffee Break

14:40      Romanian Case Study on Interconnection Agreements

               Presenter: Cristian Selavardeanu, ANRE

Mr. Selavardeanu will present a description of the interconnection agreements from the Romanian experience and the regulators’ role in this process.         

15:25      USAID and NARUC Overview of In-Country Assistance and Parallels across the Region 

Presenter: NARUC, USAID, VIS

Facilitated Discussion on the Development of Transmission Grid Codes

               Moderator: Thomas Pearce, NARUC and Fotis Thomaidis, VIS Consultants

               Contributors: Workshop Participants

This facilitated discussion will focus on the key topics of interest for the participating regulators related to the development of grid codes and their approximation to the EC regulations.

16:10      Contextualizing Transmission Grid Codes in the Natural Gas System – EC Experience of Storage Operation

               Presenter: Sergio Ascari, VIS Consultants

This presentation will outline the role of gas storage in the European internal market and in ensuring security of supply. The presentation will focus on the operation of storages and their link with the transmission system and identify key storage-related security of supply measures.

16:55      Wrap up and Key Take Away from the Day

Moderator: Thomas Pearce, NARUC

Contributors: Workshop Participants

17:10      Adjourn


 DAY TWO, May, 22, 2018

THEMATIC FOCUS: Transmission Grid Code and Investment Planning

09:00      Review of Day One Discussion and Overview of Day Two Agenda

              Moderator: Thom Pearce, NARUC

09:05      US Case Studies on Natural Gas Storage Regulation

Presenter: The Honorable Thad Levar, Chairman of the Utah Public Service Commission

Chairman Levar from the Utah Public Service Commission will provide a case study on natural gas storage and its regulation from the perspective of Utah and the United States.

Presenter: John Kundert, Minnesota Department of Commerce

John Kundert will provide a presentation on US experiences and methods for cost and market-based approaches for setting storage rates.

10:10      Integration of LNG Terminal in the Lithuanian Gas System – LNG Terminal Operator and a Regulatory Perspective

               Presenter: Lina Karpavičiūtė, National Commission for Energy Control and Prices; Mantas Šabanas, Project Analytics Manager, Klaipėdos Nafta

This presentation will outline the integration of LNG terminal to the Lithuanian gas system and its impact to Lithuanian and regional gas markets. Ms. Lina Karpavičiūtė will present the regulatory perspective and the representative of Klaipėdos Nafta will name the challenges and achievements of the LNG terminal operator.

11:00      Coffee break

11:20      Regulatory Guidelines to TSOs for Gas Investments in EU Countries

               Presenter: Evangelos Penglis, VIS Consultants   

This session will outline regulatory guidelines issued by EU regulators for the development and review of gas infrastructure investments, as well as identify similarities and highlight key differences as applied in different EU countries.

12:05      Lunch

13:05      Regulatory Incentives for Infrastructure Development

               Presenter: Sergio Ascari, VIS Consultants        

This presentation will outline the main regulatory incentives provided by the EU regulators for facilitating the implementation of large gas infrastructure projects. Examples of such incentives and their application will be described.

13:35      Case Studies on Reviewing and Approving Investments and Network Development Plans

Presenter: The Honorable Thad Levar, Chairman of the Utah Public Service Commission

Presenter: Ignas Kazakevičius, National Commission for Energy Control and Prices of Lithuania

14:45      Coffee break

15:05      Case Studies on Reviewing and Approving Investments and Network Development Plans

Presenter: Riccardo Vailati, Italian Regulatory Authority for Electricity and Gas

Presenter: John Kundert, Minnesota Department of Commerce

16:15      Wrap-up and Key Takeaways from the Day

Session Facilitator: Thom Pearce, NARUC

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

16:30      Adjourn


 

DAY THREE, May, 23, 2018

THEMATIC FOCUS: Investment Planning

09:00      Review of Day Two Investment Planning Discussion

Presenter: VIS and NARUC

09:05      Case Study on Gas Investment Planning - Romania

               Presenter: Cristian Selavardeanu, ANRE

Mr. Selavardeanu will provide a case study on ANRE’s experience with regard to gas investment planning in Romania, and ANRE’s role in reviewing and approving TYNDPs.

09:50      Introduction to the Guide for Conducting Economic Appraisals of Gas Infrastructure Expansion and Network Development Plans

Presenter: Evangelos Penglis, VIS Consultants, and NARUC

This session will provide a brief introduction to the draft Guide for Conducting Economic Appraisals of Gas Infrastructure Expansion and Network Development Plans developed by VIS Consultants.

10:10      Categorization of Projects and Treatment of Different Project Categories

Presenter: Evangelos Penglis, VIS Consultants

This presentation will highlight the importance and rationale for categorizing projects included in TYNDPs, and provide the consultant’s view on potential categories and treatment of each project category.

10:40      Coffee break

11:00      Analyzing Monetized and Non-Monetized Benefits 

Presenter: Sergio Ascari, VIS Consultants

This presentation will analyze the approach to monetize benefits of gas infrastructure projects, provide practical examples for estimating the economic benefits of a project, and describe non-monetized indicators that can be used to assess the impact of projects.

11:50      Project Prioritization

Presenter: Fotis Thomaidis, VIS Consultants

This presentation will describes the usual methods applied to prioritize gas infrastructure projects (PCIs, PECIs), including the approach for criteria setting, assignment of weights, ranking of alternatives.

12:30      Lunch  

 

13:30      EU Perspective on Conducting Economic and Financial Appraisals        

               Presenter: Riccardo Vailati, Italian Regulatory Authority for Electricity and Gas

Mr. Vailati will present on how to conduct economic and financial appraisals, as well as the minimum requirements necessary for the process.

14:15      Facilitated Discussion on National-Level Plans         

Presenter: Fotis Thomaidis, VIS Consultants

14:55      Coffee break  

15:15      Regional Model for Network Design

Presenter: Daniel Golja, Energy Institute Hrvoje Pozar

With USAID support, the United States Energy Association (USEA) launched the Eastern Europe Natural Gas Planning Working Group (EE-NGP). The group is currently working on a regional transmission network planning model to optimize gas utilities’ investments in the development and expansion of new pipelines. USEA’s consultant, Mr. Golja, will present the USAID-USEA Max 2040 Planning Model.

For those countries whose utilities are participating in the project, the model could serve as a basis for countries and regulators to evaluate and review regional transmission projects. For countries not represented in the project, the plan is a concrete example of how regional network models are constructed and their relevance to assessing national-level infrastructure projects with regional impacts.

16:15      Regional Approach – Considerations and Facilitated Discussion  

               Presenter: Evangelos Penglis, VIS Consultants 

This session will initially the main considerations for developing a regional approach for assessing projects of cross-border importance included in TYNDPs, followed by facilitated discussion on how such a regional approach could be applied.

16:50      Wrap-up and Key Takeaways from the Day and Next Steps for Project

Session Facilitator: Thom Pearce, NARUC

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

17:00      Adjourn

Registration

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

 

Materials

Presentations

DAY 1

Ruolia: Lithuanian Case Study on Regional Baltic-Finnish Gas Market Creation

Vorobjova: Lithuanian Case Study on Regional Baltic-Finnish Gas Market Creation

Selavardeanu: Romanian Case Study on Interconnection Agreements

Tubin-Mitrović: Serbia Case Study – Intersection of Transmission and Distribution System Regulation

Thomaidis: Harmonization of Grid Codes – Interconnection Agreement Contents and Case Studies

Thomaidis: Contextualizing Transmission Grid Codes in the Natural Gas System

Facilitated Discussion on the Development of Transmission Grid Codes

Thomaidis: The Intersection of Transmission and Distribution Grid Codes

DAY 2

Kundert: US Case Study on Reviewing and Approving Investments and Network Development Plans

Kundert: US Case Study on Natural Gas Storage Regulation

LeVar: US Case Study on Natural Gas Storage Regulation

LeVar: US Case Study on Reviewing and Approving Investments and Network Development Plans

Karpaviciute: Integration of LNG Terminal in the Lithuanian Gas System

Penglis: Regulatory Guidelines to TSOs for Gas Investments in EU Countries

Ascari: Regulatory Incentives for Infrastructure Development

Kazakevicius: Lithuanian Case Studies on Reviewing and Approving Investments and Network Development Plans

Sabanas: LNG terminal in Klaipeda

Vailati: EU-TYNDPs

DAY 3:

Ascari: Analyzing Monetized and Non-Monetized Benefits

Penglis: Introduction to the Guide for Conducting Economic Appraisals of Gas Infrastructure Expansion and Network Development Plans

Facilitated Discussion on National Level Plans – Preparation

Selavardeanu: Romania Invetment Planning

Penglis: Categorization of Projects and Treatment of Different Project Categories

Thomaidis: Project Prioritization

Penglis: Regional Approach

Vailati: EU Perspective on Conducting Economic and Financial Appraisals

Golja: Regional Model for Network Design

Facilitated Discussion on National-Level Plans

 

Participants

Venue

Vilnius

Lithuania

Radisson Blu Hotel Lietuva
Konstitucijos pr. 20, LT-09308 Vilnius, Lithuania 

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