ANRE

Romanian Energy Regulatory Authority

Wholesale market structure and

operational model

ANRE

SUMMARY

THE DEVELOPMENT OF THE ROMANIAN ELECTRICITY MARKET 2000-2012:

THE MAIN EVENTS

THE PRESENT STRUCTURE OF THE ELECTRICITY SECTOR

THE ELECTRICITY MARKET: DYNAMICS & SIGNIFICANT FIGURES

RECENT REGULATORY DEVELOPMENTS: COGENERATION & RENEWABLES

SUPPORT SCHEMES

OPPORTUNITIES

CHALLENGES

MAIN EVENTS IN THE DEVELOPMENT OF

THE ROMANIAN ELECTRICITY MARKET(1)

ANRE

1998 2000 Restructuring / I Phase of unbundling



1998 RENEL vertically integrated monopol split in:



CONEL Holding company containing separated distribution and supply company (SC Electrica
SA) and 2 generation companies (SC Termoelectrica SA and SC Hidroelectrica SA) are
established within a new company - SA.

Two other electricity generators (SN Nuclearelectrica SA and RAAN) are separately established;

Transmission, system services and market administration are separately organised, within
CONEL SA;

the relationships between parties within the electricity sector are settled
based on bilateral contracts;

GD 122/2000, GD 982/2000 electricity market opens at 10%/15%;

2000 CONEL divided in separated companies: Transelectrica (TSO), Electrica

-distribution and supply company, Termoelectrica and Hidroelectrica generators, OPCOM- market operator

September 2000 launch of the compulsory electricity spot market in

Romania, administrated by OPCOM and organized based on pool model;

MAIN EVENTS IN THE DEVELOPMENT OF

THE ROMANIAN ELECTRICITY MARKET (2)

ANRE

2000 - June 2005



GD 1272/2001 electricity market opens at 25%;

GD 1342/2001 SC Electrica SA splits in 8 subsidiaries for electricity

distribution and supply;

GD 48/2002 electricity market opens at 33%;

GD 1524/2002 SC Termoelectrica SA reorganizes in several separate

legal entities for generation;

GD 1563/2003 electricity market opens at 40%;

GD 1823/2004 electricity market opens at 55%;

MAIN EVENTS IN THE DEVELOPMENT OF

THE ROMANIAN ELECTRICITY MARKET (2)
July 2005 December 2005


July 2005 launch of the new market model, based on:



voluntary spot market, with both sides offers and bilateral settlement;

compulsory balancing market, with TSO as single counterparty;

financial responsibilities of the balancing are allocated to the BRPs;

GD 644/2005 electricity market opens at 83.5%;

November 2005 launch of the green certificates market;

December 2005 launch of the centralized market for bilateral

contracts;

ANRE

MAIN EVENTS IN THE DEVELOPMENT OF THE

ROMANIAN ELECTRICITY MARKET (3)

ANRE

2006 Present


March 2007 launch of the centralized market for partially standardized

bilateral contracts with continuous negociation on Opcom Platform ;

July,1, 2007 fully opening of electricity and gas markets;

July 2008 OPCOM becomes central counterparty for day ahead market;

2008 legal unbundling of distribution and supply companies

2011 intraday market pilot

Jan 2013- centralised bilateral market for large final customers

ELECTRICITY SECTOR PRESENT STRUCTURE











ANRE

1 INDEPENDENT TSO: TRANSELECTRICA SA (59% state ownership)

8 REGIONAL DISTRIBUTION COMPANIES, out of which 5 - privately owned
by ENEL, E.ON, CEZ along with the Romanian state
Significant generators owned by the state (approx 92% total market share):
hydro: Hidroelectrica SA
coal: CE Oltenia, CE Hunedoara,Termoelectrica SA, RAAN
nuclear: Nuclearelectrica SA
gas&fuel oil: Electrocentrale Bucuresti SA, Electrocentrale Galati
14 independent power producers owned by local authorities
Independent private generators: OMV-Petrom, Dalkia Termo Prahova, CEZ
(wind farm)
5 incumbent suppliers: CEZ Vanzare, ENEL Energie, E.ON Moldova
Furnizare, ENEL Energie Muntenia, Electrica Furnizare
Approx. 40 competitive suppliers (private)
Approx. 40 competitive traders, active only on WM (private)

ELECTRICITY SECTOR:
SIGNIFICANT DATA, 2011






-

Electricity generated
61.93 TWh
Import = 2.942 TWh
Export = 4.841 TWh
Household consumption at
regulated tariffs
11.59 TWh
Non-household
consumption 28.25 TWh
On the regulated market
11.59 TWh
On the competitive market
8.69 TWh

ANRE

ANRE

PRESENT STRUCTURE OF THE WHOLESALE

ELECTRICITY MARKET
BILATERAL CONTRACTS

DAY AHEAD

ON THE DAY

SETTLEMENT

Market Operator

Simple
Bids

Day Ahead
Market
P

Firm Volumes by Company

TSO-market operator

Imbalance
volumes
by BRP

MP

Simple
Bids

Balancing
BM Volumes
Market

Simple bids by unit

Adjustments
to Day Ahead
schedule

G - generators
S - suppliers
Starting with July 2012,
bilateral contracts are allowed
only on centralized markets

Balancing
Responsible
Parties

TSO

Meter
data
Metered
Volumes

WHOLESALE ELECTRICITY MARKET:

SIGNIFICANT FIGURES: 2009-2011

ANRE

WHOLESALE ELECTRICITY MARKET:

MARKETS DYNAMICS

ANRE

WHOLESALE ELECTRICITY MARKET:

EVOLUTION OF DAY AHEAD MARKET

ANRE

ANRE

RECENT LEGAL DEVELOPMENTS:

COGENERATION SUPPORT

BONUS TYPE SUPPORT SCHEME,

AUTHORIZED BY EC:

HEAT PRICE
[EURO/MWh]

YEAR I

YEAR XI

Electricity is sold on the competitive

market or at a regulated price equal to
90% of average day ahead market price;

COAL

19

23

GAS (transmission
network)

30

36

GAS (distribution
network)

34

42

The bonus is granted for the electricity

qualified as high efficiency cogeneration
production delivered into the networks;

The bonus is financed by a mandatory

contribution, paid by every final consumer
and exporting suppliers;

Bonus level depends on the main fuel

used;

Heat is sold at regulated prices,

established upon a methodology,
depending on the main fuel used;

BONUS LEVEL
[EURO/MWh]

YEAR I

YEAR XI

COAL

34

10

GAS (transmission
network)

34

19

GAS (distribution
network)

37

25

RECENT LEGAL DEVELOPMENTS:

RENEWABLE SUPPORT
GREEN CERTIFICATES & MANDATORY QUOTA scheme
Legal GC price limits until 2025: 27 Euro/GC 55 Euro/GC;
2020 NATIONAL TARGET: 38% E-RES IN THE FINAL GROSS CONSUMPTION

ANRE

CHALLENGES FOR THE ROMANIAN ELECTRICITY

SECTOR

Post crisis recovery strategy

E-RES integration into the grid and within the market

Refurbishment of power plants

Need for technological upgrade in order to fulfill

environmental standards

Smooth removal of regulated prices

ANRE

OPPORTUNITIES

ANRE

Regulatory framework in line with European guidelines and

trends

Regional market connectivity (recent development of close

to real time cross-border capacities markets)

Balanced generation mix

Significant E-RES potential (wind, biomass, hydro)

Significant consumer market

5 years experience in a liberalized market environment

ANRE

THANK YOU FOR YOUR ATTENTION!

You may find additional information on the following websites:

www.anre.ro
www.opcom.ro
www.ope.ro