Open consultations

The Finnish and Estonian Transmission System Operators (the TSOs), Gasgrid Finland Oy and Elering AS, organize the public consultation concerning Balticconnector capacity allocation mechanism – consultation is open until 17th of May.

Content:

Gas markets in the Baltic States and Finland have experienced fundamental changes since 2020. By January 2023, imports of Russian gas have ended, and a new floating LNG terminal has been commissioned in Inkoo, Finland, to secure gas supply in the region, resulting in rapid transformation from pipeline market to LNG. Other changes include capacity increases in Baltic gas transmission systems and Inčukalns gas storage in Latvia, and the commissioning of a new interconnector GIPL between Lithuania and Poland in 2022.

The implicit capacity allocation method currently applied in Balticconnector was originally designed as a temporary solution because of the planned full market integration between the Baltic States and Finland. Before the commissioning of Balticconnector interconnector and Finnish gas market opening, risks associated with congestion were considered manageable and their costs lesser than the establishment of capacity auctions. Furthermore, the TSOs and national energy authorities agreed to closely monitor the market developments and take corrective actions if needed. Since then, full market integration has been postponed, and the market fundaments have drastically changed as described above. Moreover, during periods of capacity scarcity, some market participants have started booking D-1 capacity without actually using it, rendering the capacity utilization ineffective. As a result, Balticconnector’s capacity allocation method needs to be re-assessed.

Balticconnector interconnection point plays important role what comes to gas deliveries between Finland and Baltic States. Gasgrid Finland and Elering have made an assessment on the regarding the possible capacity allocation mechanims which can be applied at Balticconnector.

The assessment and questions to the participants can be found below in the attachment.

The TSOs invite market participants to provide opinions which capacity allocation mechanism option is the preferred one from their operation point of view. How do the market participants, especially shippers and potential Floating LNG terminal users evaluate the risk of congestion at Balticconnector and its possible impacts on their decisions on utilizing the terminal?

Gasgrid Finland and Elering will be pleased to receive written opinions to the following e-mail addresses: customerservice@gasgrid.fi and airi.noor@elering.ee. Please include at the message header ‘BC CAM Hearing May 2023’.

Parties providing comments must separately notify whether their comment or part of it is confidential information that may not be published on the websites of the TSOs. The TSOs have the right to send opinions given to the relevant national regulatory authories (NRAs). Please provide your written opinions in English.

Attachments

Baltic TSOs have developed Baltic LFC block FRR dimensioning methodology and Baltic LFC block coordinated action to minimise FRCE principles.

In accordance to SO GL article 6(3)(e) requirement, Baltic TSOs need to publicly consult and get the approval of Baltic regulatory authorities for these methodologies to be included into the Baltic LFC block operational agreement.

Baltic TSOs invite market participants to review and provide comments for the methodologies until 31.03.2023. Feedback is to be provided to tarmo.rahmonen@elering.ee.

AS Augstsprieguma tīkls, Elering AS and Litgrid AB (the Baltic TSOs) have prepared the concept for the Baltic balancing capacity market, including the relevant methodology proposals according to the contents of the Electricity Balancing Regulation ((EU) 2017/2195 hereinafter EBGL).

Previously, the rules for allocating cross-zonal capacity for the exchange of balancing capacity or sharing of reserves (according to EBGL article 41(1)) and the rules for joint procurement of balancing capacity (according to EBGL articles 33(1) and 38(1) have been publicly consulted.

Additionally, EBGL article 34 establishes that a market participant shall have the right to the transfer obligations obtained from the balancing capacity market to other market participants. The same article also stipulates that TSOs commonly procuring balancing capacity can apply for an exemption to not allow transfer of obligations across bidding zone borders. For this, a relevant application for exemption must be submitted to the NRAs.

Accordingly, the Baltic TSOs shall put to public consultation the application for exemption according to EBGL 34(1). The market participants are asked to submit their feedback by the  16th of July 2023 (end of the day), by filling in the feedback form which has been provided below. The Baltic TSOs request the feedback to be submitted in English. The filled-in feedback form shall be sent to the following e-mail address: hardi.koduvere@elering.ee

Attachments

Latvian and Estonian natural gas transmission system operators, JSC "Conexus Baltic Grid" and Elering AS (hereafter referred to as TSOs), are initiating a public consultation on proposed amendments to the Common Regulations for the Use of Natural Gas Transmission System (hereafter referred to as Amendments). The aim of this consultation is to gather input from stakeholders regarding the draft Amendments.

To enhance the readability and legal clarity of the joint network rules 'Common Regulations for the Use of Natural Gas Transmission System' between Estonia and Latvia, the TSOs, propose the following amendments:

  • Improve the wording and ensure consistent use of terminology in English throughout.
  • Introduce rules for the use of Latvian production entry point and directly connected consumption exit points in Latvia, as well as regulations for linking transmission system users with these entry and exit points.
  • Add or revise the following terms: Common IT Platform, Domestic Consumption, Entry point, Production.
  • Remove the term Standard Communication Protocol.
  • Clearly express how the data exchange process is established (Chapter 4 - General conditions for the access to the transmission services).
  • Specify the procedure for capacity allocation if someone wishes to reserve capacity at the Paldiski LNG entry point to ensure firmness for already allocated LNG slots in the region (P 5.5.2)
  • Clarify the rules for capacity return (Section 6.3.4 - only firm capacity, order of return).
  • Clarify the conditions for secondary trading (Section 7.1 - only firm capacity, no return after a certain point, limitation in case of congestion).
  • Extend the settlement data avaialbility deadline to the 10th of each month, as it is not feasible to meet the deadline of the 6th (Section 9.2.3).
  • Add a reference to REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) compliance (Section 11.3.2).
  • Grant the TSO the right to interrupt the injection or off-take from the transmission network in case of issues caused by LNG terminal failures (Section 12.1.1).
  • Align Chapter 19 (Confidentiality) with the Common Regulations for the Natural Gas Balancing of Transmission System.
  • Add Chapter 20 to comply with GDPR.
  • Harmonize collateral requirements between Conexus and Elering and consolidate two annexes into one.

 

Stakeholders are invited to submit proposals and comments on the Amendments (in English) until July 30, 2023, by sending them electronically to the TSOs´ e-mail addresses: JSC “Conexus Baltic Grid” (capacity@conexus.lv) and Elering AS (airi.noor@elering.ee).

The amendments to the Common Regulations for the Use of Natural Gas Transmission System are intended to enter into force 30 days after the coordinated decision by the Public Utilities Commission of Latvia and the Estonian Competition Authority. Until the Amendments entry into force, the current version of the Common Regulations for the Use of Natural Gas Transmission System will remain applicable.

Attachments

The Finnish and Estonian Transmission System Operators (the TSOs), Gasgrid Finland Oy and Elering AS, organize the public consultation concerning Balticconnector capacity allocation mechanism – consultation is open until 17th of May.

Content:

Gas markets in the Baltic States and Finland have experienced fundamental changes since 2020. By January 2023, imports of Russian gas have ended, and a new floating LNG terminal has been commissioned in Inkoo, Finland, to secure gas supply in the region, resulting in rapid transformation from pipeline market to LNG. Other changes include capacity increases in Baltic gas transmission systems and Inčukalns gas storage in Latvia, and the commissioning of a new interconnector GIPL between Lithuania and Poland in 2022.

The implicit capacity allocation method currently applied in Balticconnector was originally designed as a temporary solution because of the planned full market integration between the Baltic States and Finland. Before the commissioning of Balticconnector interconnector and Finnish gas market opening, risks associated with congestion were considered manageable and their costs lesser than the establishment of capacity auctions. Furthermore, the TSOs and national energy authorities agreed to closely monitor the market developments and take corrective actions if needed. Since then, full market integration has been postponed, and the market fundaments have drastically changed as described above. Moreover, during periods of capacity scarcity, some market participants have started booking D-1 capacity without actually using it, rendering the capacity utilization ineffective. As a result, Balticconnector’s capacity allocation method needs to be re-assessed.

Balticconnector interconnection point plays important role what comes to gas deliveries between Finland and Baltic States. Gasgrid Finland and Elering have made an assessment on the regarding the possible capacity allocation mechanims which can be applied at Balticconnector.

The assessment and questions to the participants can be found below in the attachment.

The TSOs invite market participants to provide opinions which capacity allocation mechanism option is the preferred one from their operation point of view. How do the market participants, especially shippers and potential Floating LNG terminal users evaluate the risk of congestion at Balticconnector and its possible impacts on their decisions on utilizing the terminal?

Gasgrid Finland and Elering will be pleased to receive written opinions to the following e-mail addresses: customerservice@gasgrid.fi and airi.noor@elering.ee. Please include at the message header ‘BC CAM Hearing May 2023’.

Parties providing comments must separately notify whether their comment or part of it is confidential information that may not be published on the websites of the TSOs. The TSOs have the right to send opinions given to the relevant national regulatory authories (NRAs). Please provide your written opinions in English.

Attachments

Baltic TSOs have developed Baltic LFC block FRR dimensioning methodology and Baltic LFC block coordinated action to minimise FRCE principles.

In accordance to SO GL article 6(3)(e) requirement, Baltic TSOs need to publicly consult and get the approval of Baltic regulatory authorities for these methodologies to be included into the Baltic LFC block operational agreement.

Baltic TSOs invite market participants to review and provide comments for the methodologies until 31.03.2023. Feedback is to be provided to tarmo.rahmonen@elering.ee.

AS Augstsprieguma tīkls, Elering AS and Litgrid AB (the Baltic TSOs) have prepared the concept for the Baltic balancing capacity market, including the relevant methodology proposals according to the contents of the Electricity Balancing Regulation ((EU) 2017/2195 hereinafter EBGL).

Previously, the rules for allocating cross-zonal capacity for the exchange of balancing capacity or sharing of reserves (according to EBGL article 41(1)) and the rules for joint procurement of balancing capacity (according to EBGL articles 33(1) and 38(1) have been publicly consulted.

Additionally, EBGL article 34 establishes that a market participant shall have the right to the transfer obligations obtained from the balancing capacity market to other market participants. The same article also stipulates that TSOs commonly procuring balancing capacity can apply for an exemption to not allow transfer of obligations across bidding zone borders. For this, a relevant application for exemption must be submitted to the NRAs.

Accordingly, the Baltic TSOs shall put to public consultation the application for exemption according to EBGL 34(1). The market participants are asked to submit their feedback by the  16th of July 2023 (end of the day), by filling in the feedback form which has been provided below. The Baltic TSOs request the feedback to be submitted in English. The filled-in feedback form shall be sent to the following e-mail address: hardi.koduvere@elering.ee

Attachments

Latvian and Estonian natural gas transmission system operators, JSC "Conexus Baltic Grid" and Elering AS (hereafter referred to as TSOs), are initiating a public consultation on proposed amendments to the Common Regulations for the Use of Natural Gas Transmission System (hereafter referred to as Amendments). The aim of this consultation is to gather input from stakeholders regarding the draft Amendments.

To enhance the readability and legal clarity of the joint network rules 'Common Regulations for the Use of Natural Gas Transmission System' between Estonia and Latvia, the TSOs, propose the following amendments:

  • Improve the wording and ensure consistent use of terminology in English throughout.
  • Introduce rules for the use of Latvian production entry point and directly connected consumption exit points in Latvia, as well as regulations for linking transmission system users with these entry and exit points.
  • Add or revise the following terms: Common IT Platform, Domestic Consumption, Entry point, Production.
  • Remove the term Standard Communication Protocol.
  • Clearly express how the data exchange process is established (Chapter 4 - General conditions for the access to the transmission services).
  • Specify the procedure for capacity allocation if someone wishes to reserve capacity at the Paldiski LNG entry point to ensure firmness for already allocated LNG slots in the region (P 5.5.2)
  • Clarify the rules for capacity return (Section 6.3.4 - only firm capacity, order of return).
  • Clarify the conditions for secondary trading (Section 7.1 - only firm capacity, no return after a certain point, limitation in case of congestion).
  • Extend the settlement data avaialbility deadline to the 10th of each month, as it is not feasible to meet the deadline of the 6th (Section 9.2.3).
  • Add a reference to REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) compliance (Section 11.3.2).
  • Grant the TSO the right to interrupt the injection or off-take from the transmission network in case of issues caused by LNG terminal failures (Section 12.1.1).
  • Align Chapter 19 (Confidentiality) with the Common Regulations for the Natural Gas Balancing of Transmission System.
  • Add Chapter 20 to comply with GDPR.
  • Harmonize collateral requirements between Conexus and Elering and consolidate two annexes into one.

 

Stakeholders are invited to submit proposals and comments on the Amendments (in English) until July 30, 2023, by sending them electronically to the TSOs´ e-mail addresses: JSC “Conexus Baltic Grid” (capacity@conexus.lv) and Elering AS (airi.noor@elering.ee).

The amendments to the Common Regulations for the Use of Natural Gas Transmission System are intended to enter into force 30 days after the coordinated decision by the Public Utilities Commission of Latvia and the Estonian Competition Authority. Until the Amendments entry into force, the current version of the Common Regulations for the Use of Natural Gas Transmission System will remain applicable.

Attachments