Elia Group Sa/nv · EURONEXT:ELI
Elia Group Sa/nv — Investor Presentation (January 2022)
40 slides from Elia Group Sa/nv's investor presentation, Jan 25, 2022
Slide 1: WG Adequacy #4
WG Adequacy #4 25 January 2022
Slide 2: Agenda
Agenda Welcome Minutes of Meetings WG Adequacy #3 (14.12.2021) Presentation proposal law modification [Cabinet Minister of Energy] Functioning Rules : Public Consultation Capacity Contract Next meetings 2
Slide 3: Minutes of Meetings
lia Minutes of Meetings
Slide 4: Minutes of Meeting
Minutes of Meeting WG Adequacy #3 – 14.12.2021 : To be approved The MoMs were sent on 18.01.2022. No comments were received. 4
Slide 5: Proposal law modification
Proposal law modification Cabinet Minister of Energy
Slide 6: Energy agreement
Energy agreement - September 2021: successful CRM-auction - 31 October 2021: Auction report Elia - 30 November 2021: Report Administration on Security of Supply and impact on prices - 3 December 2021: Report Minister Van der Straeten on Security of Supply, Affordability and Sustainability - 23 Decem
Slide 7: Security of Supply: confirmation & reinforcement CRM
Security of Supply: confirmation & reinforcement CRM - Successful auction: more projects than needed, including batteries, storage and demand side management, and lower than expected cost. - Legal enhancement: modification Electricity Law approved by Government: 1. Auction 2021: Introduction T0 on
Slide 8: Security of Supply: confirmation & reinforcement CRM
Security of Supply: confirmation & reinforcement CRM - Next steps: Legal process modification of the Law End of January: advice Council of State February – March: Parliamentary process & publication Parallel: information/approval European Commission Thank you! 8
Slide 9: Towards the roll-out of the draft law
Towards the roll-out of the draft law Based on the draft law communicated on 29/12/2021 with WG Adequacy on behalf of the Energy Minister: Assuming the draft law will become effective, the following key steps are foreseen: • All selected capacity providers report on permit (cf. law) status to Elia a
Slide 10: Functioning Rules
Functioning Rules Public Consultation
Slide 11: CRM Functioning Rules: feedback from public consultation and next steps
CRM Functioning Rules: feedback from public consultation and next steps Submission of the next version of the rules by February 1st • A public consultation regarding the second version of the CRM Functioning Rules has taken place between November 26th and January 4th. • Feedback has been received fr
Slide 12: Feedback on General remarks
Feedback on General remarks • FEBEG thanks Elia for the opportunity to react on the consulted Functioning Rules and for the efforts put into place to improve/develop the CRM despite of not supporting all of them Elia thanks FEBEG for its general feedback and will to do its best to develop and improv
Slide 13: 2. General provisions
2. General provisions • Request from BASF and FEBEG to clarify the impact of the V2 on existing contracts: Elia agrees with the statement and will adapt it accordingly, whenever applicable (i.e. for chapters which apply to contracts). • FEBEG suggests suggests to improve process to request interpret
Slide 14: Retroactivity Analysis
RETROACTIVITY Analysis • (future) FR govern the impact on existing contracts if nothing is explicitly foreseen, no impact, existing contract are rules by FR under which the contract was concluded. FUNCTIONING RULES If foreseen, impact: 2 GENERAL PROVISIONS ADOPTION, APPROVAL AND contract to be
Slide 15: 5. Prequalification Processes chapter
5. Prequalification Processes chapter Volume determination & opt-out • Synergrid claims that the DSO should not “determine” the NRP for additional points and asks why they have to agree on a declared NRP ELIA would like to point out that it is important that the DSO plays a role in the NRP determina
Slide 16: 5. Prequalification Processes chapter
5. Prequalification Processes chapter Implementation and operational aspects • FEBEG and 1 other party inform about the procedure to prequalify for the upcoming auction given specific situations last year ELIA will clarify in the consultation report & “evolution in time” section rules will be refine
Slide 17: 5. Prequalification Processes chapter
5. Prequalification Processes chapter Connection procedure • Synergrid explains how the interaction between the connection procedure and participation in the CRM auction is differently conceived for DSO-connected points compared to TSO-connected points ELIA agrees that the DSOs require an upfront pr
Slide 18: 5. Prequalification Processes chapter
5. Prequalification Processes chapter Other • FEBEG argues, in the context of the connection capacity waiver and the related definition of new build CMUs, that these should not apply to projects for which the CRM Actor can demonstrate that they will be committed before the auction results ELIA canno
Slide 19: 6. Auction process chapter
6. Auction process chapter • FEBEG questions, regarding § 242 on the bid price limit, the reference to “missing-money” ELIA wants to clarify that this rule is aligned with the Royal Decree on Methodology articles regarding the IPC derogation process. Missing-money is to be indicated by the IPC derog
Slide 20: 7. Capacity contract signature chapter
7. Capacity contract signature chapter • FEBEG questions, regarding § 336 on the need to refer to §335 and suggestion to apply the same penalties in case Elia does not sign the capacity contract” ELIA wants to clarify that the signature of the contract is the essence of its PSO. Elia does not sign t
Slide 21: 8. Pre-delivery control chapter
8. Pre-delivery control chapter • FEBEG question regarding §349 to clarify the impact of the proposed change for the first quarterly report: Elia confirms that the first quarterly report is now only expected by February 14th, seeing as not much updated information would be included in a quarterly re
Slide 22: 8. Pre-delivery control chapter
8. Pre-delivery control chapter • FEBEG question regarding § 407 on penalties arising from not completing the process to become Existing in time, seemingly in contradiction with § 373: Elia does not agree that this § 373 reads as if Elia does not apply a penalty in that case. Rather, § 407 specifies
Slide 23: 8. Pre-delivery control chapter: other modifications
8. Pre-delivery control chapter: other modifications • Even though no changes are proposed for the general pre-delivery scheme, several smaller adaptations will grant ELIA a more accurate view on the Capacity Providers’ progress • 3 main building blocks: Tighter requirements for Financial Penalties
Slide 24: 9. Availability Monitoring chapter
9. Availability Monitoring chapter • Synergrid claims that the DSO should determine available capacity The electricity law imposes a legal obligation on Elia to define Availability Monitoring rules in the functioning rules and establish Capacity Contracts, which is the aim of the framework Elia has
Slide 25: 9. Availability monitoring
9. Availability monitoring NRP determination relative to Unavailable Capacity notifications (raised by FEBEG) • NRP is determined based on the highest historical measurement • This could be an exceptionally high measurement (e.g. only on a very cold day, DSR was in shut-down,…) • Nevertheless, accor
Slide 26: 9. Availability monitoring
9. Availability monitoring Derating factor for multiple transactions in a single Delivery Period • Both T-Power and FEBEG requested clarification in reply to the public consultation • This subject was also discussed during the Working Group Adequacy of 14/12/2021 The definition of “Derating Factor
Slide 27: 9. Availability monitoring
9. Availability monitoring Derating factor for multiple transactions in a single Delivery Period New definition: Derating At any time ‘t’, Derating Factor(CMU,t) is equal to the Derating Factor contractually associated to the Factor(CMU,t) Transaction with the most recent Transaction Validation Date
Slide 28: 10. Secondary Market chapter
10. Secondary Market chapter • FEBEG noticed some (3) minor typos Elia will correct these in the final versions • FEBEG highlighted an erratum in the limitations on transfer of multi-year contracts Elia will correct this in the final version • T-Power asked for clarification on the “50 Transactions
Slide 29: Contract Signature vs Secondary Market approval
Contract Signature vs Secondary Market approval • Contract Signature is currently required within 40 working days* (Aim: Primary Market) • This could present a very late lack of signature for a Seller on the Secondary Market • Elia proposes to shorten the Contract Signature delay to 5 working days f
Slide 30: Processing queue for Transactions
Processing queue for Transactions • Current rules don’t allow processing a new transaction before contractual modification/rejection of the previous one • However, this process depends on reaction speed of seller and buyer • This could inhibit Elia respect the foreseen 5 working days • Elia proposes
Slide 31: 11. Financial Securities chapter
11. Financial Securities chapter • FEBEG asks whether a CRM Candidate will be allowed to submit a new Financial Security if it is initially rejected. Firstly, during the verification of the Financial Security an if necessary, ELIA will come back to the CRM Candidate in order to resolve any issue, e.
Slide 32: 12. Payback Obligation chapter (1/2)
12. Payback Obligation chapter (1/2) • Flexcity asks for an exemption of Payback Obligation for DSM units and illustrates this request with a detailed example. Elia refers to the fact that such design change goes beyond the Functioning Rules and would require a modification of the Royal Decree. Elia
Slide 33: 12. Payback Obligation chapter (2/2)
12. Payback Obligation chapter (2/2) • FEBEG asks as well to adapt the strike price indexation mechanism foreseen and pleads for a more dynamic indexation mechanism that would integrate variable costs of a unit (and important short, long term market changes) Elia refers again to the study that will
Slide 34: 13. Liability and force majeure chapter
13. Liability and force majeure chapter • FEBEG & BASF ask some further explanations on why closed grids were deleted. Elia clarifies that a reference to the CDS is not pertinent in the context of balancing • FEBEG asks for a reference to “A decision made by any competent authority » as in art 8,2 C
Slide 35: Capacity Contract
lia Capacity Contract
Slide 36: CRM 2022 Capacity Contract – impact analysis
CRM 2022 Capacity Contract – impact analysis Based on the Functioning Rules changes proposal and feedback, Elia assessed that: Limited comments lead to changes in the Capacity Contract Marginal / intrinsic adjustments on the capacity contract The retroactivity of the Functioning Rules on the C
Slide 37: CRM 2022 Capacity Contract - timeline
CRM 2022 Capacity Contract - timeline Context: Right after the Functioning Rules update public consultation, the impact analysis on the Capacity Contract shows rather limited changes An updated proposal of time range for the Public consultation on the 2022 update of the Capacity Contract 2022 Prop
Slide 38: Next meetings
lia Next meetings
Slide 39: Foreseen timeslots for next meetings
Foreseen timeslots for next meetings • Thursday 17 February 2022 pm • Thursday 10 March 2022 am • Thursday 21 April 2022 am • Thursday 19 May 2022 pm • Friday 17 June 2022 pm 39
Slide 40: Thank you !
lia Thank you !