Elia Group SA/NV · EURONEXT:ELI
Elia Group SA/NV — Investor Presentation (October 2022)
75 slides from Elia Group SA/NV's investor presentation, Oct 4, 2022
Slide 1: Plenary meeting of the Elia Users' Group
Users’ Group Plenary meeting of the Elia Users’ Group Tuesday, October 4
Slide 2: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 3: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 4: On the road to a Net Zero Society: Federaal Ontwikkelingsplan 2024-2034
On the road to a Net Zero Society Federaal Ontwikkelingsplan 2024-2034 (version FR dessous) Elia – 04/10/2022
Slide 5: Federaal Ontwikkelingsplan – Proces
Federaal Ontwikkelingsplan – Proces Spanningsniveau’s van 110 tot 380 kV JAN. - FEB. 2023 Update van het plan MRT. - APR. 2023 SEPT. – OKT. 2022 Goedkeuring Update van het federale min. van plan & SEA Energie 2 NOV. 2022 – 16 JAN. 2023 Advies & publieke JUNI 2022 consultaties Eerste draftversie AUG
Slide 6: Energie is een kostbaar goed en een strategische asset
ENERGIE IS EEN KOSTBAAR GOED EN EEN STRATEGISCHE ASSET 1 Race naar klimaatneutraliteit Fundamentele Transformatie tegen 2050 van het volledige energiesysteem, waarin het Green Deal en Fit for 55 omvatten een elektriciteitssysteem centraal versnelling van de doelstellingen en staat. uitbreiding naar
Slide 7: Scenario's voor een koolstofneutrale samenleving
Scenario’s voor een koolstofneutrale samenleving ReEU is tevens het enige scenario in 2030 waar de door de Belgische overheid aangekondigde intentie tot verlenging van de uitbating van 2 GW van het Belgische nucleaire park (Maart 2022) in rekening gebracht werd 7
Slide 8: De ontwikkeling van het Horizontale systeem
De ontwikkeling van het Horizontale systeem
Slide 9: 5 bepalende principes
5 bepalende principes Voor het uitwerken van het Federaal Ontwikkelingsplan 1. 3. INZETTEN OP EEN MAXIMALE INTEGRATIE VAN HET 5. EIGEN POTENTIEEL AAN DOORGEDREVEN HERNIEUWBARE ENERGIE IN ELEKTRIFICATIE VAN ONZE HET ELEKTRICITEITSSYSTEEM SAMENLEVING OP WEG NAAR NET ZERO DE BESTAANDE STRUCTUUR OPTIMAA
Slide 10: De clusters van Infrastructuur ontwikkeling
De clusters van Infrastructuur ontwikkeling Verbeteren van de duurzaamheid in netontwikkeling On the road to a Net Zero Society Energie efficient elektriciteitssysteem dat duurzaamheid, betaalbaarheid & bevoorradingszekerheid garandeert en decarbonisering faciliteert van elke sector Uitbouw en integ
Slide 11: De ontwikkeling van het Belgische transmissienet
De ontwikkeling van het Belgische transmissienet 220 kV 380 kV HVDC Green Substations On the road to a net zero society Uitbouw en integratie van Verdere ontwikkeling van Creatie van het offshore netwerk onshore interconnecties onthaalcapaciteit D A Energie eiland E Versterking van de as H Nieuwe Po
Slide 12: De ontwikkeling van het Verticale systeem
De ontwikkeling van het Verticale systeem
Slide 13: 6 pijlers voor de ontwikkeling van het verticaal systeem
6 pijlers voor de ontwikkeling van het verticaal systeem (220 kV, 150 kV, 110 kV) 1. 2. EU-MARKTEN EN Ontkoppelen van BEVOORRADINGSZEKERHEID netten met een Verhogen van lager kortsluitvastheid spanningsniveau DUURZAAMHEID 3. 4. KLANTEN EN DNB Integratie van Versterken van centrale en transformatie-
Slide 14: Het verticaal systeem 220-150-110kV (highlights)
Het verticaal systeem 220-150-110kV (highlights) 1 2 3 4 5 6 Antwerpen Versterking Kempen Evolutie Antwerpen stad en haven Herstructurering 70kV Brussel / Bruxelles Hainaut Projets liés au backbone 380kV Evolution vers 150kV Région du Borinage Entre Sambre e
Slide 15: On the road to a Net Zero Society: Plan de développement fédéral 2024-2034
On the road to a Net Zero Society Plan de développement fédéral 2024-2034 Elia – 04/10/2022
Slide 16: Plan de Développement Fédéral – Processus
Plan de Développement Fédéral – Processus Plans de tension de 110 à 380 kV JAN. - FEB. 2023 Mise à jour du plan MAR. - APR. 2023 SEPT. – OCT. 2022 Validation Min. de Mise à jour du plan & l’Energie SEA 2 NOV. 2022 – 16 JAN. 2023 Avis & consultations JUIN 2022 publiques Première version draft AOUT 20
Slide 17: L'énergie est un bien précieux et un atout stratégique
L'ÉNERGIE EST UN BIEN PRÉCIEUX ET UN ATOUT STRATÉGIQUE 1 Course vers la neutralité carbone en 2050 Transformation fondamentale de l’ensemble du système énergétique au sein duquel le Le Green Deal et le Fit for 55 comprennent une acceleration des système électrique occupe objectifs et un élargissemen
Slide 18: Scenarios pour société neutre en carbone
Scenarios pour société neutre en carbone ReEU est par ailleurs le seul scénario en 2030 pour lequel l’intention annoncée des autorités belges de prolonger l’exploitation de 2 GW du parc nucléaire belge (mars 2022) a été prise en compte. 18
Slide 19: Le développement du système horizontal
Le développement du système horizontal
Slide 20: 5 principes déterminants
5 principes déterminants Pour le développement du système électrique belge 1. INTÉGRATION MAXIMALE DU PROPRE POTENTIEL EN ÉNERGIES RENOUVELABLES DANS LE SYSTÈME ÉLECTRIQUE 3. ENGAGEMENT EN FAVEUR D’UNE 5. ÉLECTRIFICATION ACCRUE DE LA UTILISATION OPTIMALE DE SOCIÉTÉ EN VUE D’ATTEINDRE LA L’INFRASTRUC
Slide 21: Les clusters du développement de l'infrastructure
Les clusters du développement de l’infrastructure Améliorer la durabilité dans le développement du réseau On the road to a Net Zero Society Un système électrique efficace sur le plan énergétique qui garantit la durabilité, l'abordabilité et la sécurité de l'approvisionnement et facilite la décarboni
Slide 22: Le développement du réseau de transport belge
Le développement du réseau de transport belge 220 kV 380 kV HVDC Green Substations On the road to a net zero society Développement et intégration du Poursuite du développement Création de capacité d'accueil réseau offshore des interconnexions onshore D A Île énergétique E Renforcement de l'axe H Nou
Slide 23: Le développement du système vertical
Le développement du système vertical
Slide 24: 6 piliers pour le développement du système vertical
6 pillier pour le développement du système vertical (220 kV, 150 kV, 110 kV) 1. 2. Découplage des Augmentation MARCHÉ EUROPÉEN ET réseaux avec un de la résistance SÉCURITÉ D'APPROVISIONNEMENT niveau de aux courts- tension inférieur circuits DURABILITE 3. Intégration 4. CLIENT ET GRD des unités Renfo
Slide 25: Le système vertical 220-150-110kV (highlights)
Le système vertical 220-150-110kV (highlights) 1 2 3 4 5 6 Antwerpen Versterking Kempen Evolutie Antwerpen stad en haven Herstructurering 70kV Brussel / Bruxelles Hainaut Projets liés au backbone 380kV Evolution vers 150kV Région du Borinage Entre Sambre et
Slide 26: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 27: WG Belgian Grid
WG Belgian Grid • Sinds de laatste plenaire vergadering van 9 juni twee vergaderingen WG Belgian Grid gehad op 23 juni en 9 september • De belangrijkste onderwerpen: K.B. FTR vs. gedragscode Technisch reglement Aansluitingscontract Toegangscontract plaatselijk vervoer – Brugel Volgende vergadering
Slide 28: K.B. FTR vs. gedragscode; Technisch reglement plaatselijk vervoer – Brugel
• Beide trajecten zijn lopende • Overlegmoment met Elia zijn beëindigd • K.B. FTR => gedeeld met de CREG K.B. FTR vs. gedragscode Besluit RvB Brugel => wijziging huidige RT TR => inwerkingtreding januari ‘23 Twee fasen: FASE EEN: aanpassingen hoofdzakelijk gericht op naleving van de EU-wetgeving en
Slide 29: Toegangscontract / Aansluitingscontract
• Goedkeuring van alle regulatoren • Publicatie op de website • Procedure voor ondertekening werd toegelicht • 1 november = inwerkingtreding Toegangscontract • Deel A (Definities en algemene voorwaarden) • Feedback marktpartijen werd besproken • ASPA-clausules wordt besproken met de CREG (moet nog g
Slide 30: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 31: aFRR Go-Live Step 2: connection to PICASSO
aFRR Go-Live Step 2: connection to PICASSO Initial accession roadmap: RTE planned to connect to PICASSO together with German and Austrian TSOs, Elia was connecting 2 months later RTE’s announcement that their connection would be delayed had a significant impact for Elia: when connecting before R
Slide 32: aFRR Go-Live Step 2: connection to PICASSO
aFRR Go-Live Step 2: connection to PICASSO Based on the observation round and on discussions between Elia and market parties, the WG Balancing has formulated the recommendation towards the CREG to connect to PICASSO after the winter period and provided that following conditions are satisfied: A
Slide 33: Update on mFRR, iCAROS and EMS Requirements
Update on mFRR, iCAROS and EMS Requirements Update of MARI & iCAROS roadmap Derogation granted for Elia’s accession Local go live of the new mFRR bidding and iCAROS phase 1 Late Q3 2023 Connection to EU mFRR balancing energy platform Q4 2023 External testing with market parties will be phase
Slide 34: Update on market design
Update on market design Relaxation of DA Balance Obligation • The possibility to have DA imbalances has been extensively used by a limited number of BRPs (mostly traders and occasionally other BRPs) • The global DA imbalances remained very limited (compared to the sum of all BRPs portfolio) • Trader
Slide 35: aFRR dimensioning
aFRR dimensioning Elia implemented an update of the current ‘static’ aFRR dimensoning method, resulting in a reduction of aFRR needs from 145 MW to 117 MW as from July 21, 2022 This update is to be seen as a temporary, short-term measure, while awaiting implementation of a more enduring method s
Slide 36: Winter Plan
Winter Plan Elia proposed to implement a process for upcoming Winter allowing to temporarily reduce the current reserve sharing contribution in dimensioning to 0 MW during periods of tight market conditions in Western Europe This measure is justified in view of the Winter Plan announced by the g
Slide 37: Status incentives 2022
Status incentives 2022 aFRR activation method • Workshop on 22/6 on the aFRR activation method • Elia is preparing the report for public consultation Combinability of balancing products and/or ToE DA/ID on DPpg • Workshop on 22/9 on the combinability of products on DPpg • Elia will launch the pu
Slide 38: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 39: Overview TF MOG 2
Overview TF MOG 2
Slide 40: Overview of Task Force/workshop MOG 2 organized in 2022
Overview of Task Force/workshop MOG 2 organized in 2022 Today 01/04 24/06 16/09 14/10 Dec To be planned Market design Introduction to market design considerations (e.g. delineation of bidding zones for hybrid interconnectors) Balancing Assumptions new simulations for the offshore system integration
Slide 41: Planning foreseen for next Task Force MOG 2 on 14 October
Planning foreseen for next Task Force MOG 2 planned for this 14th of October Today 01/04 24/06 16/09 14/10 Dec To be planned Market design Connection Requirement Introduction to market design considerations (e.g. delineation of • Feedback ad-hoc technical workshop bidding zones for hybrid interconne
Slide 42: Next steps foreseen in Task Force MOG 2
Next steps foreseen in Task Force MOG 2 Balancing integration - presentation of results on systems simulations and mitigation measures related for final recommendation Dynamic & Harmonic - provide transparency to stakeholders on clarifications foreseen for technical specification that will be used t
Slide 43: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 44: Consumer Centric Market Design State of Play
Consumer Centric Market Design State of Play Users’ Group Elia – 04th Octobre 2022
Slide 45: Consumer Centric Market Design
Consumer Centric Market Design Q2-Q4 2022 Q4 2022 Q4 2023 Go-Live Working Groups Public Consultation TSO Grid Users CCMD (4-5) Design & Multiple BRPs Level Design discussion implementation note Solution for ToE in playing & implementation aFRR filed roadmap Real- Grid time fee & price taxes Q2-Q4 20
Slide 46: Context & timeline
Context & timeline Consumer Centric Market Design Valorization of flexibility via third Supply split - Physical reallocation Exchanges between market parties parties between parties Balancing Energy communities Congestion management P2P trades WG CCMD – 05.05.2022 WG CCMD – 20.06.2022 WG CCMD – 15.0
Slide 47: Conclusions
Conclusions Exchange of energy block mechanism facilitates the operation of a cross system operator energy communities as it follows a voltage neutral approach Each SO remains responsible for the registration and energy block calculation of each delivery points falling within their perimeter Need to
Slide 48: Context and timeline
Context and timeline One design solution applicable to all voltage levels. One design solution applicable to all voltage levels. Design note Q1 2022 Q3 2022 Q1 2023 By end of the year, the high level design is High level design discussion with stakeholders Updated design based on stakeholder’s trans
Slide 49: Rationales for the evolution of the imbalance price
Rationales for the evolution of the imbalance price
Slide 50: The roadmap to net zero implies a paradigm shift
The roadmap to net zero implies a paradigm shift Demand can only follow generation if it receives an appropriate signal to do so. This signal can be an explicit activation by the TSO, or an implicit financial incentive. Since all the flexible assets will not be able or interested in offering their f
Slide 51: Building a vision and a roadmap for the imbalance price evolutions
Building a vision and a roadmap for the imbalance price evolutions Elia has started collecting feedback from market parties regarding their needs, constraints and issues when calibrating their implicit reaction based on (a.o.) imbalance tariff. All additional feedback would be welcome (please cont
Slide 52: While initiating some "no regret" actions
While initiating some “no regret” actions A few initiatives that might constitute some of the building blocks of the future roadmap were already started because they are needed anyway in the context of other evolutions (“no regret” actions): Simplify • Project aiming at forecasting the Belgian Sys
Slide 53: Elia proposes to launch the publication of the Qh0 and Qh1 forecasts
Elia proposes to launch the publication of the Qh0 and Qh1 forecasts 2020 data 2021 data 2022 data (jan-may) Model 2021 study on 2020 data Proposed threshold 160 140 120 RMSE [MW] 100 80 60 40 20 0 2 7 12 17 22 27 32 37 42 Time fore end of the quarter hour for which the forecast is made [min] Qh0 Qh
Slide 54: Publication on EliaOpenData portal
Publication on EliaOpenData portal • 2 new datasets will be published on EliaOpenData portal: • System imbalance forecasts for the current (ongoing) quarter hour • System imbalance forecasts for the next quarter hour • Each publication consists of both the point forecast (in MW) and the categorical
Slide 55: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 56: WG Adequacy – Status ongoing work
WG Adequacy – Status ongoing work 25/08 13/09 13/10 28/10 17/11 16/12 26/01 17/02 24/03 14/04 TBD 15/06 29/06 WG#9 WG#10 Today WG#11 WG#12 WG#13 WG#14 WG#15 WG#16 WG#17 WG#18 WG#19 WG#20 WG#21 Aug. Sept. Oct. Nov. Dec. Jan. Feb. March. April Mai June 2023 Deep-Dive CRM Functioning Rules v3 Proposal
Slide 57: WG Adequacy – Status ongoing work (Implementation)
WG Adequacy – Status ongoing work Ministerial Decree: Calibration report Ministerial Decree: Functioning Winter Plan : Functioning AdeqFlex 23 Instruction Y-4 DP27-28 Instruction Y-4 Rules v2 development LCT Rules v3 Auction DP 26 Auction DP 27 LCT : Go/NoGo CRM CC – updated CRM CC – version sent up
Slide 58: CRM design: status & next steps
CRM design: status & next steps ELIA judged the time was right to perform a more critical review of the CRM design: • After having completed (almost) two full CRM auction cycles; & • Anticipating many more upcoming auctions, especially also Y-1 auctions as of 2024 to close the adequacy gap, targetin
Slide 59: Feedback gathered and being addressed
The following feedback has been gathered and is being /will be addressed Main takeaways Winter plan Minister 1) Unlock the participation of low voltage flexibility to the CRM Is being addressed together with the DSOs Fundamental CRM design improvements Exemption proposed for demand response capa
Slide 60: Tender for Low Carbon Technologies
Tender for Low Carbon Technologies In it’s winter plan, the government has instructed Elia to start the development of a Tender targeting Demand Side Response and Batteries – the Tender For Low Carbon Technologies: What will the tender look like: - A CRM inspired targeted tender to attract new in-th
Slide 61: Tender for Low Carbon Technologies
Tender for Low Carbon Technologies Status: LCT introduced to Market Parties in WG Adequacy of 13th of September Major design deviations have been mapped (compared to CRM) Eligibility criteria (main focus, most significant changes) Pre-delivery, Auction, Secondary Market (minor changes) Del
Slide 62: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 63: Highlights WG EMD-SO (Q2 – Q3 2022)
Highlights WG EMD-SO (Q2 – Q3 2022) European Market Design 1. Core Day-ahead market coupling: go live and operations – Justification & constructive alignments with market parties on postponement of go live in April – First reflections & feedback of successful Core go-live in June – Focus on attentio
Slide 64: Highlights WG EMD-SO (Q2 – Q3 2022)
Highlights WG EMD-SO (Q2 – Q3 2022) System Operations 1. Low Frequency Demand Disconnection (LFDD) plan – Increased amount Renewables trigger a call for action – Discussion with grid users on actions to reach compliance – Creation of a dedicated working Group on LFDD established 2. Blackout Proof co
Slide 65: Next WG EMD-SO meetings
Next WG EMD-SO meetings Agenda proposal WG EMD SO 14/10/2022 afternoon (draft) System Operations topics • Status on the low frequency demand disconnection plan • Winter Preparedness 22-23 • Revision of the Market suspension rules European Market Design topics • Core FB DA: Core FB DA: status & exper
Slide 66: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 67: Powering industry to net-zero: discussion
Powering industry to net- zero: discussion Plenary Users Group 4th Oct 2022
Slide 68: Powering industry towards net zero
Powering industry towards net zero 2022: Powering + industry towards net zero 2018: Consumer-centricity 2019: Preparing the 2020: E-mobility 2021: Climate neutral power system 2030 European energy system Launched before the Ukraine energy crisis • Study focusing on how the mid- to long term the ener
Slide 69: Powering industry towards net zero
Powering industry towards net zero Energy intensive/ SME’s / large non-energy Data centers Service logistics centers hard-to-abate industries intensive industries 1 Decarbonisation options • > 25 stakeholders consulted on transition plans • Bottom-up & top down approach • National level & focus on f
Slide 70: Scenario building
Scenario building 2030 2040 & 2050 Central scenario Fossil fuels and Electrified processes Fuel and feedstock Sectors Central scenario carbon capture substitution (low- Bottom up approach: carbon MOL) Steel Based on industry Sensitivity on increased Sensitivity on H2 in industrial cluster or H2 Non-
Slide 71: Triangulation of bottom-up & top-down approach
Triangulation of bottom-up & top-down approach Top down approach Bottom up approach Sectoral energy & emission figures, national level Production process energy & emission figures Production Energy Carbon Sectoral energy demand Sectoral GHG emissions volumes intensity intensity per carrier (GJ/year)
Slide 72: Next steps
Next steps Launch of study on 18th of November (online event) Analysis of other industrial clusters (Henegouwen, Antwerpen as first examples) Continued discussion with stakeholders on transition plans via KAMs Need to pro-actively design & develop grid as enabler for transition of industry 7
Slide 73: Thanks for your attention
Thanks for your attention
Slide 74: Agenda
Agenda 1. Approval of the minutes of the Users' Group 5. WG Consumer-Centric Market Design: state of plenary meeting of 9 June 2022 play of ongoing work 2. Federal Development Plan 6. WG Adequacy: state of play of ongoing work 3. WG Belgian Grid: state of play of ongoing work 7. WG System Operations
Slide 75: Miscellaneous
Miscellaneous Ongoing public consultation Next plenary meeting 15/09 – 13/10 Public consultation of Last plenary meeting 2022: 6 December the study on the evolution of the BRP – 2 p.m. to 5 p.m. nominations 15/09 – 13/10 Public consultation in the study on procurement strategies for a dynamic