Elia Group SA/NV · EURONEXT:ELI

Elia Group SA/NV — Investor Presentation (May 2022)

30 slides from Elia Group SA/NV's investor presentation, May 12, 2022

  1. Slide 1: CRM Prequalification process

    CRM Prequalification process Introduction 12/05/2022 (v2.1)

  2. Slide 2: Disclaimer

    Disclaimer This document constitutes a presentation for the Belgian Capacity Remuneration Mechanism (CRM) and is to be considered as an educational document facilitating understanding of all other CRM documents, which together form the official legal and operational framework. As an introduction to

  3. Slide 3: Agenda

    Agenda • Introduction to the Capacity Remuneration Mechanism (hereafter ‘CRM’) • Who is participating in the CRM and with which capacities? • What’s in it for me? • Prequalification Process • Auction • Capacity Contract & Connection Contract 3 v2.1 – 12/05/2022

  4. Slide 4: General overview

    General overview The main objective of the presentation is to highlight the customer obligations and possibilities in the Capacity Remuneration Mechanism (hereafter ‘CRM’) phases foreseen in 2022. The two first phases of 2022 are composed of the: - Prequalification Process allowing a participation i

  5. Slide 5: Introduction

    ia Introduction Oy HE”

  6. Slide 6: Introduction to the Capacity Remuneration Mechanism (‘CRM’)

    Introduction to the Capacity Remuneration Mechanism (‘CRM’)  The Belgian Authorities developed the CRM mechanism in a Law to provide a financial supporting mechanism tto compensate the missing money of the participating capacities (existing or new ones) and guarantee the security of supply of Belgi

  7. Slide 7: CRM - 2022 phases & processes

    CRM - 2022 phases & processes  By Law, there is a mandatory prequalification for the production units > 1MW (after derating) and not having variable subsidies.  It is never mandatory to submit bids (processes) TODAY May ‘22 Prequalification Process Auction Preparation with candidates (01/02-15/06)

  8. Slide 8: Introduction to the Capacity Remuneration Mechanism (‘CRM’)

    Introduction to the Capacity Remuneration Mechanism (‘CRM’) Who & What • Before May ‘22 A successful Prequalification Process is required to No Contractual access to the Auction. commitment • May ‘22 – Also, for some Capacity Holders, it is a mandatory phase Prequalification process with a possibili

  9. Slide 9: Who’s participating

    ia Who’s participating Oy HE”

  10. Slide 10: Who is participating to the CRM? (1/2)

    Who? Who is participating to the CRM? (1/2) Prequalifica tion Auction  The Prequalification Process is mandatory for the capacity holder when four Capacity conditions are simultaneously met: Contract Pre- delivery Delivery The with a capacity capacity is above 1MW* a threshold production measured a

  11. Slide 11: Who is participating to the CRM? (2/2)

    Who? Who is participating to the CRM? (2/2) Prequalifica tion Auction Capacity Contract Pre- delivery The CRM Candidate is: Delivery The capacity is connected at The Capacity Holder, by Optional: default: GUD In this case: TSO - level The Grid User 1) All rights and (*) obligations in the CRM are tr

  12. Slide 12: What’s in it for me

    ia What’s in it for me Oy HE”

  13. Slide 13: Prequalification Process terminology: derating factors

    Prequalification Process terminology: derating factors All technologies may participate in the CRM Auction but each comes with its own added-value to the Security of Supply: The derating factors of technologies  For the next Auction, the derating factors are not settled yet (31/03/2022)  Elia publ

  14. Slide 14: What’s in it for me? (example)

    What’s in it for me? (example)  ELIA can perform with you a review of your current assets and analyze the customer possibilities: Capacity unit Technology measured MW Production Existing or Derated MW No Mandatory Possible to CMU has to be unit (Y/N) Additional in above 1MW Subsidies prequalificati

  15. Slide 15: Prequalification Process

    ia Prequalification Process 0 FB

  16. Slide 16: Prequalification Process terminology: Delivery Points

    Prequalification Process terminology: Delivery Points “A (future) point on an electricity grid The Delivery Point (‘DP’) is the smallest granularity of or within electrical installations of a the CMU (‘Capacity Market Unit’) which is the generic Grid User where the Service is or will unit of the CRM

  17. Slide 17: Prequalification Process terminology: CMU

    Prequalification Process terminology: CMU A CMU (‘Capacity Market Unit’) is the CRM participation unit DP1 DP2 Composition Status Constraints • Individual CMU • The CMU is Existing if it • The CMU has to be > 1MW contains solely Existing derated • = One capacity (DP) delivery points • A CMU with a D

  18. Slide 18: CRM Prequalification Process: objectives

    Who? CRM Prequalification Process: objectives Prequalifica tion Auction Capacity Contract The Prequalification Process aims to Pre- The objectives of the Prequalification delivery ensure, for the Capacity Holder, its process(es) are the following Delivery compliancy with Functioning Rules requiremen

  19. Slide 19: CRM Prequalification Process: possibilities

    CRM Prequalification Process: possibilities SCN1. Fast Track Prequalification Process No (CRM exit-door) Plan to participate to the Auction? Yes Yes / Capacity Mandatory Maybe SCN 2. Standard / SCN3. Specific participation? Prequalification Process(es) Yes / Maybe No Maybe: at any time prior the Auc

  20. Slide 20: Prequalification Process: Application Form & Prequalification Files

    Prequalification Process: Application Form & Prequalification Files SCN1 Fast Track SCN2 Standard Prequal. SCN3 Specific Prequal. Capacity Holder 1. Application Form (1/Actor): To be approved by ELIA - Set of information related to the Capacity Holder (or mandate counterparty) - To be provided by th

  21. Slide 21: SCN1. Fast Track Prequalification File

    SCN1. Fast Track Prequalification File In this Framework, the CRM actor has no plan to offer volume in the Auction: the operational effort is limited. One Prequalification File for each Delivery Point under a Fast Track Prequalification Process • List of required information related to a Delivery Po

  22. Slide 22: SCN 2. Standard Prequalification Process

    SCN 2. Standard Prequalification Process In this Framework, the CRM actor has plan to offer volume in the Auction with determined Delivery Points: operational effort in function of CMU The Prequalification File (1/CMU) of a Standard Prequalification Process = flow for a CMU having Delivery Points (E

  23. Slide 23: SCN3. Specific Prequalification Process for VIRTUAL CMU

    SCN3. Specific Prequalification Process for VIRTUAL CMU In this Framework, the CRM actor has plan to offer volume in the Auction with No Delivery Points (yet): operational effort is very limited A maximum of The Prequalification File (1/Actor) of a Specific Prequalification Process is to be followed

  24. Slide 24: CRM Prequalification - Key requirements to participate

    CRM Prequalification - Key requirements to participate (according to Functioning Rules proposal & current framework) The CRM financial support is only accessible through a successful selection in an Auction or Secondary Market for which a prequalification applies. The prequalification process and da

  25. Slide 25: CRM Auction

    ia CRM Auction Oy EE

  26. Slide 26: CRM Auction

    Who? CRM Auction Prequalificat ion Auction  The access to the Auction is granted to the CRM Prequalified Candidates CMUs Capacity Contract  The CRM actor enters one or more offers related to each prequalified CMUs to bid in the Eligible Volume as Pre-delivery determined in the Prequalification Pro

  27. Slide 27: Capacity Contract

    ia Capacity Contract Oy EE

  28. Slide 28: The Pre-Delivery and Delivery Period

    Who? The Pre-Delivery and Delivery Period Prequalificat ion Auction  Capacity Contract with Elia for the Service Capacity Contract Pre-delivery Payments of the Transaction(s) after the month of Delivery Period 2026-2027 (settlement and invoicing modalities) Delivery Contractual obligations (Service

  29. Slide 29: The Capacity Contract (proposal)

    Who? The Capacity Contract (proposal) Prequalificat ion Auction  Following a positive selection of the offers, is concluded between the Capacity Provider and Elia: Capacity Contract  Within 40 WD after the Auction results Pre-delivery  In case of Additional capacity, where applicable the Connecti

  30. Slide 30: Thank you !

    ia Thank you ! Oy EE

Elia Group — Investor Presentation (May 2022) on 6ix