Season 1

Energy Market Integration for Central and Eastern Europe - Panel Discussion 2 - TEB 1st Forum

with Yasmina· Energy Community· 45m

TL;DR

Experts discuss energy market integration challenges in Central and Eastern Europe.

Synopsis

The panel discusses the integration of Central and Eastern European energy markets with the EU, highlighting regulatory challenges and opportunities. Key topics include the transposition of EU regulations, the role of interconnectors, and the integration of renewable energy sources, with a focus on market coupling and flexibility solutions.

Key metrics

by the numbers · 5

150 euro/kWh
Battery cost
10 GW
PV capacity installed
16%
PV grid utilization
70%
Grid connection utilization
End of 2026
Market coupling timeline

Topics

5 tags

Market integrationRegulatory challengesRenewable integrationInterconnectorsFlexibility solutions

Stats

Duration: 45m
Words: 7.4k
Questions: 14

Timeline

10 chapters

Introduction of panelists
Panelists with backgrounds in European regulation and energy community are introduced.
Key differences in energy markets
Martin discusses differences in energy markets across Central and Eastern Europe.
Regulatory challenges
Gilbert discusses challenges in transposing EU regulations in energy community countries.
CACM guideline discussion
Lisa explains the CACM guideline and its impact on market integration.
Market coupling timeline
Yasmina discusses the timeline for market coupling with the EU.
Renewable integration challenges
G discusses technical solutions for integrating renewables into the grid.
PV capacity growth
Discussion on the implications of increased PV capacity in Central Europe.
Cross-border interconnections
Gilbert highlights the importance of interconnections for market integration.
Regulatory fit for VRE
Discussion on whether current regulations support variable renewable energy integration.
Battery storage potential
Lisa discusses the potential and challenges of battery storage in addressing the duck curve.

Key insights

5 takeaways

01
Interconnectors as flexibility providers
Interconnectors are crucial for integrating renewables and ensuring competitive energy prices in Central and Eastern Europe.
02
Battery costs are decreasing
Battery prices have decreased to below 150 euro/kWh, enhancing their feasibility for grid integration.
03
Hybridization of power plants
Hybrid power plants using shared grid connections are being considered in regions like Panama and the Dominican Republic.
04
Market coupling expected by 2026
The integration of energy markets between the EU and energy community countries is planned for completion by the end of 2026.
05
Regulatory challenges in VRE integration
Current regulations are evolving to better support the integration of variable renewable energy sources.

Pull quotes

1 quote

The energy community countries get the chance to integrate the wholesale markets with the EU internal market without being actually a full EU member state.
Gilbert

Transcript1081 cuesClick a timestamp to jump

interconnector operators and as well
into transposing labor regulation in the
central eastern European region.
>> Thank you Matias and good afternoon from
my side as well.
>> Thank you. Then we have Lisa Marim Mo.
She also has quite a history in European
regulation I would say. So she used to
work with ASA on the CACM. We will hear
more about that later hopefully. Then
she worked for the energy community.
so not being mayor of some village in
Bergland but the energy community we
heard about earlier. and nowadays
she's as a managing consultant at Magnus
Energy.
>> Correct.
>> Very good. right next we have
Yasmina.
>> Incorrect. Okay.
she used to work for the energy
agency of the republic observer has a
huge background in power systems and
nowadays is head of electricity unit at
energy community. Yeah, the one sitted
in Vienna not
>> perfect and the last one doesn't need
any more introduction I think because
Martin already introduced himself and
what else should I add so thank you for
joining and then I would start with the
first round of questions immediately
with you Martin because I want to come
back to your presentation for a bit so
you mentioned a lot of studies and
reports which reveal significant
differences among central and eastern
European countries so in your opinion
why do you identify are the key
differences both in terms of the energy
trma report you mentioned and the energy
issues mapped.
>> Yes. thanks for the question. the
key difference when it comes to the
TRMA is from the data we gathered and
from from the responses we got
the environmental aspect as we have
completely different asset bases
when we look at Europe and we see
that the coal dependency in certain
countries is certainly higher in the
southern region compared to other
countries. when it comes to the
issues monitor we see a huge
difference when it comes to the
flexibility issue and especially the
digitalization topics and we see that
especially the Baltics are very
advanced when it comes to utilizing
digital technologies also gathering data
analyzing data and we have a different
topic when we have a look at other
countries Austria for example we also
got the reply that of course everyone
knows that the smart meter roll out is
is quite advanced but that we're very
slow in actually using the
information we could gather from smart
meter roll out. So this is a
difference and another topic which was
quite remarkable is the view about
geopolitics. when we're talking about
the energy markets, we saw that in
the Eastern European countries closer
to the Russian border of course we
got a lot of replies regarding the
geopolitical aspects about the security
of supply and when it comes more
towards central Europe we've got way
more responses connecting this topic
of geopolitical insecurity to energy
prices especially from Austria and
Germany and the Czech Republic. This
was something which was quite
remarkable that the same topic as
such can be viewed from a completely
different perspective depending on
whether you're a couple of hundred
kilometers more towards western
Europe or not.
>> Wow. Yeah. Thank you very much.
switching a bit to the first panel
regarding regulation. I would come to
Gilbert now.
so you worked a lot with central eastern
European countries I think and so the
question to you would be to elaborate a
bit on challenges for the energy
community countries to join the European
energy market from the regulatory
perspective meaning could you please
talk about your experience with
transposing EU regulation in those
countries.
Yeah, for sure. Thank you for the
question. And before I go into content,
let me say big thank you to Energy
Bridge for hosting this event today.
and also Matias for inviting me.
Really nice seeing you again. so
challenges in the energy community
countries with regards to transposition
of new legislative frameworks. why
why do we work on this? so they the
countries have a huge opportunity
that other countries do not get. So ask
UK for example. So they would love to
integrate reintegrate the markets
with the European ones. obviously
there's discussion currently whether
this again is facilitated but the
energy community countries get the
chance to integrate the wholesale
markets with the EU internal market
without being actually a full EU member
state. So this is a quite unique
opportunity in itself.
so what we do is we work with the
countries and help them integrate
the network codes so specific
secondary legislation into their
legislative frameworks.
and this is something where a lot of
coordination is required. Why is this
the case? on the one hand you have
other actors that help them implement
primary legislation
that is coming also from the
energy community side. but then again
you need more technical
implementation needed for the network
network codes as such and this all needs
to fit together. So you have different
actors working on the same
implementation just from different
angles. and you have to make sure
that all of this lines up well in the
end.
so we know that timelines have
been put out there to transpose this
within the countries. fair to say
that this was not entirely realistic.
so they wanted to transpose this new
huge package until end of 23. which
obviously is not happening. So in most
countries the implementation efforts are
still ongoing. and in the countries
that we've been active in we've been
working on one of the five network codes
and this network code is now on
its way to adoption but all the other
network codes are still not
covered let's say.
>> Wow. Thank you. So a long way to go I
assume.
>> Yeah indeed. we're starting the
journey only and this is just
transposition implementation will
come afterwards but more to that later.
>> All right. Thank you. So continuing with
Lisa since you have a lot of experience
with this topic as well. Could
you tell us a bit more about that
experience you have and in particular
could you mention a bit the
capacification and congestion management
topic because there's now a second
version coming up soon probably and the
impact on this on the adaption process
Gibler just talked about would be really
interesting as well.
>> Yeah sure I can. So indeed I spent quite
some years with the regulations so far
being in a regulatory authority or
working with Yasmin in the energy
community secretary or with Acer and I
can jump of course on what Gilbert
was saying because the guideline he's
talking about or the network code is
the CACM guideline and I don't know
maybe a question who knows CACM
okay then I will say something about it.
So it's the capacity allocation
and congestion management guideline and
actually what it does it sets all rules
for the picture Matias was explaining.
So in short it explains how they ahead
and intraday market should be integrated
across the EU and in 2015 this welfare
optimization was set as a target. So
since 10 years we are trying to optimize
and integrate the markets across the EU
and now indeed there is this unique
challenge to also have the energy
community contracting parties included.
So and here comes let's say the issue
Matias was pointing out. So we have 10
years of this network code in the EU. So
things have been moving a lot of
optimization is done. you go from ATC to
flowbased to more difficult stuff and in
the energy community it was only adopted
in 2022. Now the countries are
transposing. So they are including it in
national law and of course there is you
can see it already some gaps obviously
and now in the EU we are talking about
renewing it because we have had it for
10 years. we learned something, we need
to renew it. And this even started
before the energy crisis, then it was
stopped. And now again on the table and
we are expecting a new regulation this
year. And in this sense, of course,
there will be legal,
let's say, ambiguity because there will
be something applying in the energy
community contracting party, something
applying in the EU. And of course, this
naturally comes with challenges. And I
think Rosetta said it is also by nature
of the energy community setup. there
will always be a gap because they are
kind of following what the EU is doing.
But I personally believe it's also kind
of an opportunity because CACM 2.0 will
actually allow also the legislators in
the EU to react on what has been
discussed with other third countries.
They could clarify things which are on
the table which have been discussed now
for years. So it will be challenging as
always but I also see an opportunity for
this one and this is why I'm still
optimistic and I think the question was
a bit like are we all back to the start
and I thought about monopoly and
sometimes they call you back to start
when you get the cards but I
think it's not going to be that way with
CSM 2.0.
Okay, thank you. I think that's
comfortable and the mic is already
going to Yasmina's direction. So may I
ask you for your perspective on in
particular from countries not integrated
into the UNMP market so far and what can
be done there from energy community
perspective.
>> Thank you Matias. Actually I wanted to
start with asking has anyone heard about
the energy community and now I'm so
happy to see that the energy community
is a main topic of this panel. so
I would just maybe for the beginning
I like to say because I heard colleagues
were talking so far only challenges and
just to kind of explain how big
this challenge is that this two
great experts Rosetta Cara and Lisa
Marie Moore gave up and decided to move
forward seeing that this is happening
very slow but I would like
actually to bring really some light
into into this picture and to say
that we are apparently you so you also
show this graph where our countries
are gray but actually I would put them
rather yellow because we are definitely
in on the way of no return with the
market integration into EU. I was just
now in one very important meeting on
this CACM and we are moving
forward with the transposition
that the colleague was explaining but
this is just one element. So this is
just a legislation and we have
showed that this is possible because
several countries already adopted the
law. So in Serbia, North Macedonia,
Rosetta was also from the outside
helping a lot to this process as a
consultant and
now actually what we are waiting is
on the EU side I have to say and this is
to verify that this transposition
is being done in compliant manner and
this will be done by the energy
committee secretary but also by the
European Commission. This is very
important because European Commission is
seeing this much wider than only
market coupling. They want to actually
tick the box also of the accession into
EU. So this is for us very important
that this is very high on the
political agenda in Brussels and this is
also for us reassuring that our
countries are on the accession path
to EU. Also we are waiting from
European Union stakeholders to adopt the
market coupling operators integration
plan. So this is the plan that will
actually describe and provide timelines
how our countries will couple into the
European market. So these are all
some steps and also they have to revise
contracts
that our countries not countries but
stakeholders. So TSOS and NEOS have to
sign with the EU stakeholders because
this will not be completely the same
terms and conditions. So contracts
will have to be specified for our
contracting parties. But all these
processes are if I may say in the
pipeline they are if I may say also
advanced and we hope that actually
this is not a long way to go and today
in this meeting I have seen on this
meeting of CCM group we have seen
that the slot for coupling of our
countries in the planning road map is
still booked for end of 26 beginning of
27. So this is in the plan of European
Union stakeholders and we hope that
our countries will jump on that train
despite that the train is moving really
fast as Lisa explained with CACM 2.0
and there will be no gap with our
countries I have to say because the only
way to be integrated in the market is to
in every moment apply the same
legislation.
>> Okay, thank you very much. So a lot to
discuss at further energy bridge
meetings I would say.
>> Yeah I would say so
>> so coming to a bit of a technical
perspective with GD here. so I want
to talk now about the integration of
renewables in the energy system and
could you provide some introductory
numbers regarding what's possible
considering the current market
circumstances?
>> Yeah if you ask me thank you. If you ask
me for numbers, the first number that I
want to discuss is the number three
because there are on this panel three
mathematics. This one, this one, and to
be honest, I'm an older one. U but
this is the first number to provide you.
the other one is if you heard
these two mathematics, a lot of there
was a lot lot of legal background and
and all these regulations. to be
honest, maybe I'm the only one in this
loop. I'm a po technician. and
you're talking about a lot of problems
to be honest we have the solutions
they are already there they have just
been provided by the legal framework
for instance the coupling of the
energy we have the problem that the grid
is overloaded because we have too
much PV at this and the problem is
not too much PV from the energy
perspective it is just too much PV from
the power perspective so at high when
the sun is high not today maybe every
PV is producing a lot of energy and
nobody knows how to dig digest it
because when the weather is fine you
want to go out and so nobody's consuming
energy you need it in the afternoon hour
but the solution from the technical
perspective is already already there we
have batteries and in the last two years
also the price was going down we are
selling batteries for less than 150 euro
per kilowatt hour which is
approximately half of that per the
kilowatt PV costed 10 year ago so
batteries are at the at the level.
The next problem is batteries are
from from the legal perspective an extra
energy provider and somewhere is
sitting there he already told us we can
use batteries for balancing the grid
u having also the this bottleneck on
grid every wind power plant and every PV
is dimensioned of on its maximum
power but it is isn't using the grid
connection the whole time so we have for
instance if you take a PV plant
astonishing 16% % of the energy that is
possible to be transported over quick
connection of a megawatt
is really serviced by the by this
PV bar because during the night you have
not nothing in the morning and afternoon
hour you have only half of the
production so if you take it over the
8, 800
and something hours a year you deliver
only 60% of the time full power and
that's it. The wind is significantly
better because wind is delivering double
that what you can expect. the simple
way to understand this number is
to get this energy also during the
night because the wind doesn't care too
much about is the sun shining or not.
It is not the whole truth because in the
morning and afternoon hours you have
more changing of the temperatures in the
local areas. and then you can combine
combine this power plant and I did
investigations on having a grid
connection of let's say 10 megawatt
100 megawatt doesn't matter let's call
it 100% of a really utility scale one
and you use on PV 16 to 7% or 16 17%
of discrete connection if you add a wind
power plant and you do nothing you
have only astonishing 10 to 12% % of the
annual PV production which is half of
the wind production that you really lose
on just connecting on the same grid
point. So that that's an interesting
approach which can solve not nothing
against your your jobs here. but
you can localize you can localize
this this this program significantly and
if you play this game a bit further
you can connect connect 200% of the
grid connection to wind adding 300%
on PV and adding just a four or 6 hours
battery or 8 hour batteries on and on an
8 hour batteries you utilize the same
connection point to 70% which is the
same amount that you have on this so
positive called Riverside power plants
that we have in Austria and that
brings these good numbers of energy
support in Austria. and you can run a
100% renewable power plant if you
combine wind PV and battery at the right
dimension. Okay, it is responsible also
from the location and you can run it
like a wind like a riverside
apartment. So go on with the next
question.
>> Thank you G. You make it hard to ask
further questions covering everything at
once.
>> there's still more
>> there's still I'm sure of that. So to
keep into the topic of renewable
energies or in particular variable renew
renewable energies you mentioned the
high PV installations. I was amazed to
read that alone last year 10 gawatt of
capacity was installed in CE regarding
PV which is quite a lot I think and so
there are lots of challenges obviously
to include this and so my next question
would go to Martin. if you could
elaborate a bit further complimenting
Gad probably what are from your
perspective the implications of the
growing influence of those variable
renewable energies.
>> Yes, thank you. I would like to add
one thing which is quite interesting
when we look at the results we got from
the Caribbean and Latin America. this
topic of hybridization also using one
grid connection for various technologies
and there are ongoing discussions in
Panama for example and the Dominican
Republic to really make this mandatory
to have hybridized power plants in
the grid. So we see that this discussion
is not only in place here in
Austria and in Europe but this is a huge
topic globally. when we look at
the increased capacity of
renewables in C and also have a
look at the results we got from our
studies we see that this is really a
topic which is here to stay and which
is basically something which
everyone has to tackle. We see that
in Austria and in Germany the
discussion is a bit different from from
the results we got from from Eastern
Europe. In Austria and Germany it's it's
more about really getting the grid
connection and really getting
projects done and increasing also
the permitting delays.
when we look at the results for
example from the Baltics, we see that
they have more data security and
generally security issues when it comes
to this and we see that especially in
the Latin member committee for example
they gave some very clear remarks on
NIS 2 implement implementation but they
have very strict regulation on which
it and OT can be used within this
huge expansion move and this is
certainly something which is So to
say a bit below the radar because we're
always talking about the grid
perspective and about load shifting and
peak shaving and so on. But we also have
to keep in mind that the supply chain
of these technologies is completely
different when we look at wind for
example in comparison to runoff river
hydro power plants. This is also
something which is came out as quite
important in the CE region. is on
security and especially data security
and governance issue.
>> I think that's although not technically
a very important point. Thank you for
adding this. you mentioned as well
the grid connections and so I would go
over to Gilbat and ask you what given
your circumstances
what is in your opinion the importance
of crossber interconnections because
only three days ago I think in the
Austrian media you could read that the
Hungary and Serbia just announced to
double the capacities between the
countries or at least aiming to do that.
>> Yeah thank you Matias. So in general
I like to think of interconnections as
great flexibility providers. So
they are part of a bundle of measures
that we need to use to actually make the
energy transition happening and you've
also outlined in your presentation how
this can be best done and why this
brings a lot of benefits., with
regards to this region, the WP6
Western Balkcans, the situation
compared to the EU countries is a little
bit different. I would say, in the
EU, in many countries, you have the
issue that you have too little crossber
capacity.
and therefore you have issues
integrating, for example, the renewables
into the European markets. in this
region also historically the
situation is different in that they
are well connected cross border but
in some instances you have internal grid
elements that are actually limiting the
transport.
so also against the background of
being competitive in terms of energy
prices
it is important that in the first
instance the existing infrastructure is
used in the best optimal way and to
actually be able to do this you need
to talk about efficient and coordinated
capacity calculation mechanisms between
the TSOs that need to be implemented
and a whole bunch of regulatory
deliverables need to come before you
actually go there. and on the
other hand you then also have the
requirements facilitating this from the
European level that we talked about
earlier where the countries actually
have to make sure in the long term that
they make available as much capacity
as possible. So there's also
timelines related to that. but
again here we are at the beginning of
the journey and this is still a bit to
go. but in general we have a lot
to work with in the region. and
certainly something to look forward to
when this becomes more efficient.
>> Thank you Gilbert. since you
mentioned regulations I think I should
ask the next question. what is your
opinion? Do the current regulations
already fit the VR inclusion or are they
far away from it?
>> Well, is somebody looking for a PhD
topic? Because I guess you can spend
years on this one. No. I thought
about it of course and I think because
also considering that we are here
talking about market integration, I for
me at least personally that's kind of
twofold. So on one side you want to
incentivize the uptake and we discussed
that you can be better in one-stop shop
for permitting. You can provide
financial support and this has been done
in the latest amendments setting out
that CFDs and PPAs should be used. So of
course providing financial stability and
price visibility for capital
intensive assets of course is irrelevant
and on the other side there is the
market aspect and there is a question of
how to design the markets in such a way
that VES can be integrated but also in a
grid friendly way and we are back to the
grid connection and I think here of
course there is really a tight balance
to be found and I think in general
I think it's going in the right
direction because market designwise a
lot has been done in the EU to put it
that way because we are going to 15inut
market time units meaning that you can
trade shorter times so you're better
optimizing your better optimizing and
trading with your renewables or gate
closure times closer to real time. So
the closer you get, the better your
forecast gets, the better you can
optimize your portfolio also including
variable rest. and also with the
market integration and the coupling the
picture we saw of course stable prices
in general let's say of course there is
volatility and we're back to flexibility
but in general stable prices also
due to the interconnection
in the energy community contracting
part is of course there is still some
way to go because I think yeah Rosetta
probably mentioned that only in western
Balcon Serbia has an intraday market so
of course it's very hard to trade made
on your renewables portfolio the day
before because we know it now
weather just changes within half an hour
and you might want to adapt but this is
of course not possible and on the other
side I think there is a lot of
discussions ongoing on network tariffs
and also flexible connection
agreements. This was also just included
in the latest directive that of course
there are options to optimize the grid
connection by saying okay you can
have a flexible connection meaning
sometimes you're allowed to use it or
allowed to use it in a certain extent
but that in general could increase the
amount of VR to be connected to the grid
at least for a short transitional period
until everything is sufficiently set
up. So I do believe it's going in the
right direction. It's quite challenging
but as Yeah. And regulation is also of
course even though I love it's
sometimes slow and it's sometimes a bit
too late and this might be what a lot of
investors feel but I do think that it's
going in the right direction.
>> Thank you very much.
so Lisa as well mentioned the market
and I talked about market coupling and
liberalization also means competition.
So there's a lot of fossil fuel
generation in the ENC countries I think.
What do you think? Would this be a
problem if there's too much
liberalization? Would there be too high
competition for those plants? Will you
have a loss of basil capacities?
Well, I have again to challenge a little
bit the whole panel on what I've
heard and actually maybe to start with
this let's say flexibility
batteries intraday market also what
Matias mentioned in his presentation
where I would u maybe not fully agree
that without market coupling there is no
market has various if I may say
time frames And not only day ahead
and intraday is the only element of the
market forward markets are also very
important if I may say. And also when we
talk energy community region we have to
to understand that we have in the
energy community region we have two
quite different regions. And I
noticed lately in discussions
that since synchronization of also
Baltics started people lot of to compare
Baltics with the energy community but we
have to say western Balkan six is one
story but on the other hand we have
Ukraine and Muldova which maybe also in
terms of geopolitical context security
everything can be more comparable with
with the Baltics and but while we are
talking life is happening and I have to
say that colleague mentioned that
there is let's say an over supply in
certain hours of solar and it is already
happening and I can tell you that
western balcony is already one big
battery for European Union market. so
we are informed from our traders
in the region that all this let's say
excessive production in EU is already
ending up in all these hours in the
western Balkans mainly and this is what
our study years ago on flexibility
showed actually because the study
was exploring what would be benefits of
market integration for both
contracting parties but also for EU
member states and already at that time I
think it was 2021 it was identified that
huge amounts of electricity if I
remember well five
terror hours I don't know would end up
in western balkcans and that it is a
good kind of interconnectors as
colleague mentioned source of
flexibility and several years later it's
really happening in real life. And
what is also important to say is that
despite that we do not have intraday
spot markets except in Serbia
intraday capacity allocation is
available and traders are using that and
the trade between the region and
the European Union member states is
extremely intensive and this is why we
are currently facing coming back to your
question a big risk of sebam
regulation ation that will be applied as
of 1st of January 26th. because
there is a huge risk that the
application of this regulation will
actually completely change the
trading electricity exchanging
landscape in the region because indeed
in that case our thermal power
plants but not only thermal power plants
but also renewables because CEO
regulation has quite some ambiguities on
how this would apply And actually it is
not recognizing clearly between
renewables and what is let's say
carbon intensive. so there is a risk
that actually also renewable
development will be slowed down in the
region and the energy transition process
once seam regulation is there. So
this is for us currently the hottest
topic in the energy community.
>> All right. Very interesting. Thank you.
>> So good for a next energy group.
So G is already eager to compliment.
Should I even ask you a question or do
you just like to comment the last
statement?
>> I think I think you have a question
prepared already.
>> Yeah.
>> And I've seen the keyword is speed
shaving
>> so I don't have to ask it. Very good.
>> Thanks. Thanks for helping me here.
yeah the question would have been
more or less if peak shaving can
solve this and ask of tech from the
technical perspective yes from
technical perspective big shaving is
is a solution to reduce this but
and from legal perspective it might also
work but you have to be honest there
is a third part it's the economic
perspective and the economic perspective
shaving alone using the battery for big
shaving alone is not working because you
use it normally for 3 hours a day.
and then even these cheap carics I
offered you or I showed you in the first
loop is too expensive to pay for
to pay for the battery. So using a
battery only just to shift the
peak or to shift the peak and
shift a bit is not enough. You have to
combine it. you have to use the
battery to be let's say loaded in
in the afternoon hour when the sun is
for sure going down because then you
know that you would would have no
further production from PV and you
need this energy that was too much in
the morning hours and if the sun was
not shining it would be nice if you
have from the same location even a wind
because when the sun is not shining
usually the wind is blowing more if you
see the annual profile In winter you
have double of the energy from wind
compared to that what you have in PVE
and during high noon when the sun is
shining nearly no wind is blowing. So
if you combine this, you're there. And
another answer to that isolated
production is also the trick from
the from the economic guys that they say
I use the battery only I use the
battery only for doing arbitrage
buying it at the at the cheap point
in time and selling it. But they
didn't make the bill without the grid
provider because when you buy energy
you have to buy the grid fee and all
what we are doing here at the energy
bridge is to discuss about how to
balance it that it is possible to get
longtime the energy that you need. So
this gap that we have now and everyone
is crying oh there's there's so much
gap between high prices and low prices
during the day. this gap will flow down
as soon as there is enough battery
installed and then you have with a
battery that is only shifting the price
the problem that you have to pay for
the energy that you want to fill up your
battery and the price is if you add the
grid fee more than that you can sell in
the afternoon hours so what you have to
do is to combine it with some source
where at least the primary source is at
price zero after the kex yeah so that's
another word for the solution goes into
the direction from technical
perspective, from economic perspective
and from legal perspective to combine
this on a specific point and then
we can provide the profiles like our
customers have.
>> Thank you very much and you give the
perfect keyword for the next question to
Lisa in that case.
so you mentioned this price
difference is also known as the duck
curve and the question would be these
are finally not related to regulation.
do you think the storage system can
be implemented fast enough to mitigate
this increasing duck curve increasing
from month to month?
>> Yeah has gave me the slide. yeah
so well battery storage
is the one of the key words. No,
it has been in latest regulation just to
drop the word regulation as well in
this one. also got very prominent
actually in the latest regulation
together with demand response and in
this sense I think nobody doubts that
battery storage is a potential to
address parts of the energy transition
and also the duck curve as such. Of
course., on the other side, I
fully agree in a sense that a battery as
such will not only live from this price
spread because also if you have too much
of one technology, it will be a
cannibalization. At some point, you
don't have a dark curve. What do you do?
stop using your battery. No,
probably not. And this is why of
course the value stacking is very
important. And we don't only have
short-term markets, but you could also
provide other kinds of services to the
markets. you can provide if you would
want to have market based congestion
management or balancing services. So I
think from a battery perspective just a
fast reaction time is really good and
even if we flatten the duck curve it
will be possible because I do believe
that at least the volatility of prices
will stay because we have intermittent
intermittent renewables we have a lot
more movement in prices also if we look
at a historic development it's not like
one stable price for some hours it's
always going up and down and there is of
course way to use that in your
revenues
We actually did interestingly some
colleagues did a battery attractiveness
assessment that was kind of looking
at amounts of batteries already
installed. of course also regulatory
incentivize what kind of support is
there to see which countries for
example still have potential for
batteries and indeed you end up of
course again a bit we had Germany
Austria rather central western and then
Hungary as an add-on and for example it
was interesting to see that Hungary had
a bigger potential also of course lower
installed capacity we're back to like
one technology at one at some point you
also get to a saturation I would say of
the market. but yeah in probably I
cannot extend to every country but I
would say feeling wise as well the
further you go to the east probably the
more potential you also have and the
more attractiveness. it will be
interesting to see because the EU also
set out that there could be so-called
nonfossil flexibility support schemes.
So member states would be allowed to
put money on the table for battery
storage but also to incentivize demand
response and I'm I'm looking forward to
this journey as well because that will
probably give another rise even though
costs are already decreasing in bass and
I think yeah I know some people
feel that the duck curve is kind of a
market failure or let's put it that way
some people would would tend to say that
and I would rather see say that the
market is already
reacting because battery is increasing.
everybody's building batteries,
costs are going down. So, the market is
reacting and also sometimes a negative
price is not a failure per se, but
rather giving a signal to what to invest
in. But yeah, that is my personal
feeling about the duck curve.
>> Thank you very much., with an eye at
a time, unfortunately, we have to cut it
a bit short. So I would give everybody a
few considering this huge topic the
chance to kind of give a closing
statement a short closing statement
please what you're thinking finally
about market integration with a few on
CE if possible
>> yeah maybe we start with Martin and
finish yeah
>> okay no please
>> what we saw from from from the
studies and also when we compare the
results from the last couple of years we
saw that some countries are quite stable
and other countries are moving faster
than others. And I think what's what's
quite important when we're discussing
C energy issues is that that we have
have a very global and European mindset
that we're getting rid of this
silo thinking that we're fixing one
issue here in Austria and then another
issue comes up in Hungary or the Baltics
or the Balkans. So this is this is my my
main message from from this topic.
>> Thank you.
>> very short. I think that market
integration between EU and energy
community is a win-win game. I think
both European Union with will benefit
from the integration with us because we
are bring I don't think this works but
doesn't matter. we are bringing to
Europe 10% bigger market and as I
said like also a lot of kind of
opportunities having in mind
the strong interconnection on of our
region and on this emerging flexibility
issues. So I think that we will be part
of the successful story and help
rather than a problem for you and for us
definitely also very beneficial. Yeah, I
I would subscribe to that. So, in
general, yeah, market integration,
I think it's just very important and to
use an analogy, it's always
stronger together also thinking about
energy security about everything and the
energy transition in general. So I
personally yeah I believe that market
integration can be a key in enabling the
energy transition and that for me as
well includes the entire Europe closing
the gap on the map because in the end it
just doesn't make sense to have an
interconnected grid and not having an
integrated market. Yeah. So I'm looking
forward to be part of the whole journey.
>> Yeah. I would also completely agree to
that. It's a unique opportunity not
only for the western balkcon countries
but also for the EU.
on the one hand on the other hand as
said we are at the very beginning of the
journey. so we've started with
transposition implementation is at
very early stage still. so we're in
for the long haul but I'm really looking
forward to this journey and helping
the countries integrate with the EU
internal market.
Yeah, and I have to look at the
organizer of this session and
you're absolutely right here that the
energy bridge we are all here in the
audience as far as I've seen and I've
talked experts in some local fields
and especially on that stage it is
absolutely necessary
that the different specialists are
talking to each other and sharing their
different views to the thing and the
complete thing is that what we need and
that what is working. I brought it up to
you on the on the different technologies
that we have on renewables combining
wind with PV and solar and it goes on
that on executing this you have to check
out the technicians you have to check
out the legals and the economics and if
all these disciplines are talking
together we are on a very good way that
we all have a good future. Thank you.
If I may just one sentence add to this
because I see a lot of young also people
here in the room and I would really
like to invite you to all of you
because the markets that are coming
to be integrated there are emerging
markets and that you all of think of you
think how I can be one brick in this
new energy bridge.
>> Thank you very much.
We are going to have a break of 10
minutes. Please feel free to grab coffee
and water and we will get a picture with
the
>> So we have next topic for the next
event. Right.
Am I going to
have a birthday?

Energy Market Integration for Central and Eastern Europe - Panel Discussion 2 - TEB 1st Forum

Interconnectors as flexibility providers

Battery costs are decreasing

Hybridization of power plants

Market coupling expected by 2026

Regulatory challenges in VRE integration