European grid planning and integrated markets urgently needed

"A truly European approach to grid planning, together with the integration of wholesale markets, are crucial to the large scale deployment of renewable energy, including wind power, and improving security of energy supply", says EURELECTRIC and the European Wind Energy Association (EWEA) in a joint declaration.

The Joint Declaration is addressed to the European Commission, Member States, and Regulators and will be distributed tomorrow at the Electricity Regulatory Forum meeting in Florence.

The Declaration stresses the importance linking the 10 Year Network Development Plan drawn up by European grid operators (ENTSO-E) with EU Member States' roadmaps for the development of renewable energy, due to be published later this month. "The opportunity is now to use the Ten Year Network Development Plan as a key tool for any future network development at European level". The Declaration asks that "ENTSO-E includes the following elements in its revision of its Ten Year Development Plan, due in June 2010":

*As soon as they are published, National Renewable Action Plans (NREAPs) must be incorporated into the current pilot TYNDP. The EU 2020 targets must not be undermined by inadequate grid enhancements projected in the TYNDP.

*Outline a clear set of priority projects together with a traceable timetable in order to convert the TYNDP from a mere forecast document into a concrete implementation plan.

*Enhance the TYNDP from being a compilation of National Plans to a Pan-European vision for planning grid infrastructure in line with long-term EU policy targets.

The Declaration underlines the crucial role of an integrated market. "To meet the 2020 targets, large scale European grid investments should be accompanied by a stronger momentum in the creation of a pan-European integrated electricity market".

Integration of wholesale markets, through the development of cross-border intraday and balancing markets, will contribute decisively to reducing congestion, optimising both domestic and cross-border generation capacity flexibility, improving cross-border electricity trade and integrating RES in the most economically sound way. In that respect, the market integration target models should be implemented by 2015 as it has been agreed by policy-makers and the relevant stakeholders at the last Florence Forum.

Hans ten Berge, EURELECTRIC Secretary General, said "an integrated market and investment in grid infrastructure are necessary for the successful achievement of the EU 2020 targets. But we need to act now and build the necessary steps - timely implementation of a real top-down TYNDP and integrated intra-day and balancing markets - to achieve these objectives. Policy makers must undertake urgent and coherent action to create a European market."

"We need to dramatically change the way electricity is produced, distributed, traded and consumed. It is more than 20 years ago Europe agreed on a common market the free movement of goods, services, capital and labour across borders. The EU needs a fifth freedom: the free movement of electricity within the internal market. Developing our power infrastructure is a precondition to achieve this," said Christian Kjaer, EWEA’s Chief Executive.