Elia Group SA/NV · EURONEXT:ELI
Elia Group SA/NV — Investor Presentation (October 2021)
34 slides from Elia Group SA/NV's investor presentation, Oct 13, 2021
Slide 1: TF CRM #28 a.k.a. WG adequacy #1
TF CRM #28 a.k.a. WG adequacy #1 13 October 2021
Slide 2: Agenda
Agenda • Welcome • Approval Minutes of Meeting TF CRM #27 – 29.06.2021 • TF iSR + TF CRM = WG adequacy • Decision of the European Commission regarding the Belgian CRM [Cabinet of the Minister of Energy] • Presentation return-on-experience by stakeholders : Yuso • Proposed improvements to the Functio
Slide 3: Approval Minutes of Meeting TF CRM #27
Approval Minutes of Meeting TF CRM #27 – 29.06.2021 3
Slide 4: Draft minutes of meeting TF CRM #27 – 29 June 2021
Draft minutes of meeting TF CRM #27 – 29 June 2021 – Sent on Tuesday 10.08.2021
Slide 5: WG Adequacy
lia WG Adequacy
Slide 6: TF CRM + TF iSR => WG Adequacy
TF CRM + TF iSR => WG Adequacy Given the fact that : Strategic Reserves has almost come to an end + CRM is now approved by the EC = It is proposed to merge the TF iSR and TF CRM to 1 Working Group Adequacy 6
Slide 7: Decision of the EC regarding the Belgian CRM
Decision of the EC regarding the Belgian CRM Cabinet of the Minister of Energy 7
Slide 8: Approbation CRM Goedkeuring
Approbation CRM Goedkeuring TF CRM 13/10/2021
Slide 9: CRM: marathon met intense eindsprint
CRM: marathon met intense eindsprint April 2016: Eerste detectie noodzaak CRM April 2019: Wet CRM December 2019: Aanmelding Europese Commissie Juli 2020: Parlementaire resolutie September 2020: Opening diepgaand onderzoek Europese Commissie Oktober 2020 – Augustus 2021: Goedkeuring wetgevend
Slide 10: Onderzoek Europese Commissie
Onderzoek Europese Commissie 3 vragen: 1. Is het CRM noodzakelijk en wordt het te veilen volume niet overschat? 2. Is het CRM goed ontworpen en is er geen discriminatie tov RES en X-border? 3. Worden investeringen in interconnecties niet ontmoedigd? EU-wijde publieke bevraging: 15 partijen + reacti
Slide 11: Beslissing Europese Commissie
Beslissing Europese Commissie “Following close and constructive cooperation with the Belgian authorities throughout the process, we have approved a well-designed capacity mechanism that will contribute to ensuring security of electricity supply in Belgium, in particular in view of the upcoming phasi
Slide 12: Beslissing Europese Commissie
Beslissing Europese Commissie Belgische CRM is 1. Noodzakelijk 2. Proportioneel 3. Goed ontworpen 4. Toekomstgericht
Slide 13: BE CRM is nodig
BE CRM is nodig “ensuring security of supply” Noodzaak aangetoond conform de staatssteunregels (EEAG) en de nieuwe gemeenschappelijke Europese regels en methodologieën (ACER): Implementatieplan met markthervormingen Betrouwbaarheidsnorm : LOLE 3u obv nieuwe VOLL en CONE Adequacy and Flexibilit
Slide 14: BE CRM is proportioneel
BE CRM is proportioneel “possible distortions of competition are kept to a minimum” Verbeteringen aan de markt met een strategische reserve volstaan niet: grote nood, ook nieuwe capaciteiten nodig, dus marktbreed mechanisme Niet meer steun dan nodig dankzij het design en de volumebeslissing
Slide 15: BE CRM is goed ontworpen
BE CRM is goed ontworpen “we have approved a well-designed capacity mechanism” Open mechanisme: - alle technologieën - bestaande en vernieuwde/nieuwe capaciteiten - binnen- en buitenlandse capaciteiten Grote reservering van volume voor Y-1 Investeringen in interconnecties worden niet ontmoedig
Slide 16: BE CRM is toekomstgericht
BE CRM is toekomstgericht “positive development towards the achievement of the important objectives set out in the European Green Deal” CO2 drempels elektriciteitsverordening, maar ook: Tie-breaking rule Sustainability clause Design biedt alle kansen voor innovatieve technologieën
Slide 17: Engagementen
Engagementen Wettelijke verankering formaliteiten phase-out clause Verdere uptake methodologische verbeteringen LOLE/VOLL/CONE & Resource Adequacy Assessment nieuwe studie VOLL (voor 15 september 2022) Ten laatste 2024 deelname buitenlandse capaciteiten en secondary market voorbereidinge
Slide 18: Next steps
Next steps 1. Eerste veiling Y-4 (2021 2025) - In afwachting van resultaten 2. Wettelijk kader verfijnen - Wetswijziging: Q4 2021 - Q1 2022 - KB’s: Q1 2022 3. Voorbereiding tweede veiling Y-4 (2022 2026) - Keuze scenario en intermediaire waarden: 15/09/2021 - Voorstel parameters en berekeningen
Slide 19: Q&A
Q&A
Slide 20: Return-on-experience by stakeholders
Return-on-experience by stakeholders Yuso
Slide 21: Feedback on functioning rules
Feedback on functioning rules CRM Net Revenues = CRM Capacity Payments - Payback Obligation (PBO) - Penalties PBO cl 752: cl 753: non-energy constrained CMU energy-constrained CMU hourly amount (Ref Price - Strike Price) * contracted (Ref Price - Strike Price) * contracted capacity capacity/Derating
Slide 22: Proposed improvements: Prequalification process and Financial Securities
Proposed improvements to the Functioning Rules based upon return-on-experience regarding the Prequalification process, including Financial Securities Sybille Mettens
Slide 23: Prequalification Process improvements
Prequalification Process improvements Based on lessons learned from summer 2021: Formalize a (non-mandatory) preparation phase to check (a.o) the EAN and the NRP of the Delivery Points participating to the CRM (collaboration between TSO & DSO for DSO connected DPs) Optimize the timing for ELIA's
Slide 24: Prequalification Process improvements: Standard
Prequalification Process improvements Standard Prequalification Process AS IS TO BE 24
Slide 25: Prequalification Process improvements: Fast Track
Prequalification Process improvements Fast Track Prequalification Process AS IS TO BE 25
Slide 26: Prequalification Process improvements: Specific
Prequalification Process improvements Specific Prequalification Process AS IS TO BE 26
Slide 27: Prequalification Process improvements: additional content
Prequalification Process improvements Additional content improvements 1. Improvements regarding NRP determination: End date of the time period during which the quarter-hourly measurements are considered for the 1st method: 10 Working Days prior to PQ File submission date (to facilitate the use of
Slide 28: Financial Security improvements
Financial Security improvements 1. Financial Security is not anymore a requirement for the Prequalification Process (§ 664): An approved FS remains a prerequisite to participate to the Auction Submission deadline: September 1st (The CRM Candidate is free to anticipate the CMU’s status change, th
Slide 29: Proposed refinements: Secondary Market, Payback Obligation, Availability Monitoring
Proposed refinements to the Functioning Rules regarding some other chapters (except auction) : Secondary Market, Payback Obligation, Availability Monitoring Elmo Van Thielen, François Jadoul
Slide 30: Secondary Market
Secondary Market – Elia proposes to integrate some clarifications: To consider a new definition, “Parties on the Secondary Market“ to replace the less specific “parties” throughout the chapter – => To be analyzed if this facilitates reading of the text More clear formulation of the moment of tra
Slide 31: Payback Obligation
Payback Obligation Elia proposes to integrate some clarifications as suggested in CREG’s approval decision on CRM Functioning Rules: Correct the way foreign Capacities should declare a NEMO in accordance with the Royal Decree on XB Elia will improve the wording On the formula’s used to calcula
Slide 32: Availability Monitoring
Availability Monitoring Clarification to be added on Available Capacity for CMU with a Daily Schedule : In case no schedule is available their Available Capacity is equal to 0 MW. CRM Functioning Rules V2 : CREG - ELIA 32
Slide 33: Next meetings
Next meetings
Slide 34: Foreseen next meetings
Foreseen next meetings Tuesday 16 November 2021 am • Proposed improvements to the Functioning Rules based upon return-on-experience regarding the auction process • Presentation of the auction results of the first auction • Planning CRM Capacity Contract process 2022 Tuesday 14 December 2021 am • A P