Elia Group Sa/nv · EURONEXT:ELI
Elia Group Sa/nv — Technical Presentation (January 2016)
63 slides from Elia Group Sa/nv's technical presentation, Jan 29, 2016
Slide 1: Taskforce Balancing
Taskforce Balancing 29 January 2016
Slide 2: Agenda
Agenda Time: 13:00 – 16:00 h 1. New organisation Market Development 2. R1 XB 3. R1 Road map 4. XB Balancing info 1. Feedback Explore 2. Status NC on Electricity Balancing & Early implementation 5. Transparency & Publications Balancing info 1. Balancing info 2. Billable margin 3. Transparency Auction
Slide 3: New organisation Market Development
New organisation Market Development
Slide 4: Market Development
Market Development Head of MD Admin. Assistant J.Matthys-Donnadieu R. Lannau Program Architecture – Implementation Management Ancillary Services EU Balancing EU Market, Capacity BE Market Adequacy & Alloc. & Congestion Model Economic Studies Man. FRC, aFRR, mFRR, SR, CRM, storage, balancing market,
Slide 5: XB R1
XB R1
Slide 6: 2. Stakeholders' feedback
0. R1XB - Overview 1. Recap 2. Stakeholders’ feedback 3. Status & Timing 4. 2nd call for tender R1XBGE / Brussels, 29.01.2016 / Pieter-Jan Marsboom 6
Slide 7: 1.1 R1XB – Summary
1.1 R1XB – Summary Previous topic-discussions: TF balancing on 12/10 with request for stakeholders’ feedback Informative pdf-document provided after 12/10 – describing Belgian & XB FCR-auctions Project recap: Current R1 procurement 1 Monthly auction Local combined tender via STAR platform
Slide 8: 1.2 R1XB – Motivation
1.2 R1XB – Motivation XB-FCR-cooperation allows to foster an increase of overall competition & volume liquidity so as to further reduce total procurement costs. The overall FCR-market size for both Belgian & PRL-DACHNL bidders will increase. Alignment can be obtained with best practices in EU si
Slide 9: 1.3 R1XB – FCR-prices
1.3 R1XB – FCR-prices 2014 2015 2016 R1XBGE / Brussels, 29.01.2016 / Pieter-Jan Marsboom 9 9 9
Slide 10: 1.4 R1XB – Price Forecast
1.4 R1XB – Price Forecast A divisible bid of 70% of FCR-demand (51MW in 2016) will be inserted in local STAR auction @ price forecast [€/MW/h] the retained volumes from this bid will be procured subsequently via the second XB-FCR-auction The price forecast should be: Ex-ante approved via BR
Slide 11: 1.5 R1XB – Local & XB Tendering Design
1.5 R1XB – Local & XB Tendering Design Timeline Local STAR FCR-aFRR XB-FCR Auction Process R1XBGE / Brussels, 29.01.2016 / Pieter-Jan Marsboom 11
Slide 12: 2. R1XB – Stakeholders' feedback
2. R1XB – Stakeholders’ feedback After TF Balancing on 12/10, Elia requested feedback from R1/R2-providers and provided informative pdf-document. Elia obtained following feedback (formally and informally) from providers: With generation assets With load assets With – future – storage assets PR
Slide 13: 3. R1XB – Status & Timing
3. R1XB – Status & Timing Timing Performer Topic 12/10/’15 BE TSO BE Stakeholders’ consultation via TF balancing 17/12/’15 XB TSOs SC-agreement on Elia joining Q1 2016 BE TSO Business implementation (GFA & BR) Q2 2016 BE NRA Formal regulatory approval via BR Q1-Q2 2016 BE & XB TSOs IT implementation
Slide 14: 4. R1XB – 2nd call for tender
4. R1XB – 2nd call for tender Current STAR-auction rules foresee a 2nd call for tender if: (1) Insufficient volume (2) Volume overshoot (110%) (3) Price overshoot (150%) Quid usefulness in new local & XB tender design? Potential big operational impact Minimum requirement = in case of insuffi
Slide 15: R1 Road Map
R1 Road Map
Slide 16: Existing R1 mix in Belgium in 2015
Reminder- Existing R1 mix in Belgium in 2015 R1 down R1 100 mHz R1 up Plev Plev Plev F<Fs F>Fs F<Fs F>Fs F<Fs F>Fs -200mHz -100mHz +100mHz +200mHz -200mHz -100mHz +100mHz +200mHz -200mHz -100mHz +200mHz -100MW Conventional power Nuclear power plants Industrial load (e.g. plants (e.g. CCGT) electroly
Slide 17: R1 Future developments – What are Elia's objectives?
R1 Future developments – What are Elia’s objectives? BE Flexibility from Non CIPU main challenges for Open all R1 products to BSPs Elia 1 GFA harmonized with Integrate new technologies in R1 mix (ex: neighboring countries batteries) applicable to all market players (BRP, BSP,…) for all technologies
Slide 18: Identified R1 potential on BE market
Identified R1 potential on BE market WKK @ TSO can deliver R1 down & R1 100 mHz R1 product type CIPU Non CIPU Potential for R1 TSO DSO TSO DSO down from biogas Asym up / R1 down R1 down (NA)* R1 down R1 down & biomass units down R1 up (NA)* R1 up (NA)* R1 up R1 up Sym 100 / 200 R1 sym R1 sym (NA)* R
Slide 19: What actions must be taken to reach these objectives?
What actions must be taken to reach these objectives? Decoupling from Partial opening Full opening Ex: batteries CIPU Integrate new Flexibility from non CIPU Open R1 products to BSP Generic R1 GFA technologies R1 Asymmetric (DSO R1 symmetric (TSO grid) R1 symmetric R1 symmetric grid) - FSP contract
Slide 20: How does Elia correct BRP perimeter for R1 delivered by BSP?
How does Elia correct BRP perimeter for R1 delivered by BSP? AS IS principle Only concerns symmetrical products (R1 100 & 200 mHz) GFA R1 prod Formula to calculate volume to be corrected for one QH: K = parameter * volume of R1 made available for this QH R1 made available = comparison betwee
Slide 21: What solution for ARP perimeter correction?
What solution for ARP perimeter correction ? R Possible solutions are: option 1: Abandon the ARP perimeter correction Option 2: Use measurements to approximate R1 activated energy (via R1 made available formula) Option 3: Implement nomination processes to approximate R1 activated energy (via
Slide 22: Conclusions
Conclusions Elia’s objectives for development of its R1 product are: R1 BE market must be accessible to all market players (BSP, BRP,…) All R1 BE market players need to get access to R1 cross-border platform R1 BE design must make possible participation of new sources (renewable ; batteries ;…
Slide 23: XB Balancing info
XB Balancing info Explore NC On EB
Slide 24: EXPLORE Status Update
EXPLORE Status Update Balancing Stakeholder Group November 27th Brussels
Slide 25: Explore
Explore European X-border NL GERMAN Project for TSOs LOng term Real-time balancing Electricity market design
Slide 26: Background: Analysis common FRR market
Background: Analysis common FRR market Common qualitative FRR market comparison on subject of BE-NL-GE Coba 1 • Results of study published on TSOs website Austrian, German, Dutch and Belgian TSO decided to proceed with the analysis of a 2 potential common FRR Balancing Market design • Work ongoing i
Slide 27: BE-NL-DE-AT: natural partners for balancing
BE-NL-DE-AT: natural partners for balancing No use of replacement reserves: (Mostly) reactive balancing; EXPLORE TSOs rely on ID markets with short GCT Harmonized ISP of 15 minutes: Important for settlement, pricing, product design,…; Important for balancing incentives. No economic optimizat
Slide 28: Objective and starting assumptions
Objective and starting assumptions Objective EXPLORE: • Develop technical and market concepts for cross-border exchange of Frequency Restoration Reserve (aFRR & mFRR) Starting points: • No economic optimization between use of aFRR and mFRR balancing energy: – Activation trigger based on technical co
Slide 29: Ongoing work in EXPLORE
Ongoing work in EXPLORE Discussions on pricing and settlement fundamentals: • Local or cross-border pricing; • Per product or cross-product pricing; • Pay-as-bid or pay-marginal; • Function of imbalance pricing and desired balancing incentives; • Balancing energy gate closure times; • Relationship t
Slide 30: mFRR product design discussions
mFRR product design discussions Current reflections / first ideas of EXPLORE TSOs on the mFRR product design discussions go in following direction (might still change): Short minimum delivery period Direct activated product with (0 minutes) option for scheduled activation mFRR product design Block s
Slide 31: Status NC on EB
Status NC on EB • Status NC: ongoing trilateral discussions between ACER/EC/ENTSOe on open topics • Early implementation projects presented at the last Balancing Stakeholder Group • Definition standard products • First proposal CoBAs • CBA harmonisation ISP • All slides & info regarding the Balancin
Slide 32: Status NC on EB: standard products mFRR & RR
Status NC on EB: standard products mFRR & RR P-DA-15-15/30 P-DA-10-10/25 P-DA-5-5/20 P-Sch-15-0/15 P-Sch-30-15 P-Sch-15-15 (mFRR) (mFRR) (mFRR) (mFRR) (RR) (RR) FAT 15 10 5 15 30 15 Min delivery 15 10 5 0 15 15 Max delivery 30 25 20 15 15 / 60 15 Temporal Mandatory yes. Mandatory yes. Mandatory yes.
Slide 33: Status NC on EB: standard products aFRR
Status NC on EB: standard products aFRR Study performed by E bridge/ Aachen University to asses: - aFRR capability in EU LFC Blocks - Impact pro-rata vs. merit order Pressure from stakeholders to develop one EU aFRR standard product This EU Work will define the future Belgian Balancing product for a
Slide 34: Status NC on EB: Coordinated Balancing areas
Status NC on EB: Coordinated Balancing areas Discussion/proposals on the geographical configuration of the future regional balancing markets for : - Imbalance netting - Automatic FRR (R2) - Manual FRR (R3) Imbalance netting: ENTSOe & ACER propose to start with one region for Continental Europe Autom
Slide 35: Status NC on EB: Harmonisation ISP
Status NC on EB: Harmonisation ISP • External Consultant Frontier Economics • Survey launched to identify costs/benefits of ISP harmonisation • So far 93 replies received • Many details on costs • Some details on benefits • Some answers contained only general feedback, logical chains and an overall
Slide 36: Billable margin, Transparency & Balancing publication
Billable margin Transparency & Balancing publication
Slide 37: Improvements Wind Forecasting Tool
Improvements Wind Forecasting Tool: Intraday windforecasting - Until end 2015: update frequency is 1 time per day at 11h00 for the next day. - From beginning 2016: „most recent forecast“ is updated 4 times per day at 06h00,11h00, 16h00 and 21h00. EXPORT FUNCTION Until 14th of Feb 2016 From 15th of F
Slide 38: Publications – R1 & Minute publication
Publications – R1 & Minute publication • Frequency / R1 data • Where? Grid Data > Data download > Balancing > Frequency R1 Data Live • What? Frequency [Hz], Contracted R1 [MW], Requested R1 [MW] (monthly update) • Minute publication • Where ? Grid Data > Balancing > Current system imbalance • What?
Slide 39: Billable margin
Billable margin • Block bid approach entering into force on 1st of march 2016 Requested Impact on system volume • Requested volume put in NRV • Pimb = Price of requested volume Impact on ARP • Requested volume put in ARP perimeter • Requested volume x price paid to ARP realized - requested volume
Slide 40: Transparency auctions
Kia Transparency auctions
Slide 41: Publication of total offered volume (BASE) on the Elia website
Publication of total offered volume (BASE) on the Elia website Total offered volume considers the maximum offered by a supplier: • Offer 1: 10MW R1 + 0MW R2 Total offered volume • Offer 2: 0MW R1 + 25MW R2 • R1 = 10MW • Offer 3: 5MW R1 + 20MW R2 • R2 = 25MW Timing: august
Slide 42: Publication of a price indicator
Publication of a price indicator 1. “Price indicator” Price indicator: a percentage indicating with how much the cost of the offer should be reduced in order to be retained with the existing bids. Example: Volume demand is 15 MW Offers Supplier A: Offers Supplier B: # Volume Price Total cost # Volum
Slide 43: Publication of a price indicator
Publication of a price indicator Price indicators: # Volume Price Total cost Price ind # Volume Price Total cost Price ind 1 10 1,2 12 12,5% 1 1 0,8 0,8 100% 2 15 1,0 15 0% 2 5 0,9 4,5 33% 3 15 2 30 50% Supplier A - Offer 1: In order to be retained, we need offer 1 from Supplier A and offer 2 from s
Slide 44: Conclusion
Conclusion • Elia will publish the offered volume for R1 and R2 • Elia requests feedback on publication of the price indicator. 44
Slide 45: Black start
Black start
Slide 46: Agenda
Agenda • General introduction in the Black Start Service • Results Tender 2016-2020 • New Tender NOV2017 • Conclusion 46
Slide 47: General introduction in the Black Start Service
General introduction in the Black Start Service
Slide 48: Black Start Service
Black Start Service The Black Start Service places production units at Elia’s disposal in order to swiftly restore the power supply from the grid in case of a Black-Out. The production units must be able to start up without any input from the high-voltage network. The Black Start Service can be offe
Slide 49: Technical requirements
Technical requirements - Ability to (within 3h if not in service; within 1.5h if in service at the time of the Black Out): - Bring a part of the grid under voltage - Supply auxiliaries of other production units - Supply load (fluctuations up to 10 MW) - Rules for Minimal absorption capacity (30 Mvar
Slide 50: Results Tender 2016-2020
CRTia Results Tender 2016-2020
Slide 51: Results tender 2016 – 2020
Results tender 2016 – 2020 Facts • 3 Candidate suppliers • 5 powerplants requested, 5 powerplants offered • 2 Powerplants contracted for a period 2016 – 2020 • 3 Powerplants contracted for a period 2016 – October 2017. New tender required for 3 power plants starting 11/2017.
Slide 52: Lessons learned from Tender for 2016-2020
Lessons learned from Tender for 2016-2020 Feedback from interested candidates who decided not to present an offer, included: • Not enough time to create a firm bid (e.g. permits) • Not enough time for the implementation when retained • No transparency regarding the prices Elia will take this feedbac
Slide 53: New Tender Black Start
CRTia New Tender Black Start
Slide 54: Black Start – new tender
Black Start – new tender • Need as from 01/11/2017: 3 Powerplants to be contracted • Who: all CIPU powerplants OR combination of CIPU powerplants behind one connection, that comply with the conditions set forth in the tender. • Contract design: Concepts of the contract design are similar to those ap
Slide 55: Planning Tender
Planning Tender Elia requests feedback on the timing: deadline to submit offer might still move based on feedback after TF balancing. 55
Slide 56: Conclusion
Conclusion Sia
Slide 57: Conclusion – new tender
Conclusion – new tender • Existing contract design allows for flexibility in terms of the configuration of Black Start sites/aggregation of multiple unit/assets. • Elia invites potential suppliers to contact Matthias Masschelin and/or Sofie Van den waeyenberg for bilateral discussions on the possibi
Slide 58: Future evolution R3
Future evolution R3
Slide 59: Future Evolution R3
Future Evolution R3 Current set of products used for the mFRR-reserves Types Sourcing Aangeboden door MW (yearly) MWh R3-PROD Yearly/monthly Generation 302 MW 4 GWh Load + Generation 209 MW BASE R3-DP Yearly/monthly 1 GWh (TSO and DSO connected) 1 MW PK 178 MW BASE ICH Yearly Afschakelbare klanten (
Slide 60: R3 - ICH monthly
R3 - ICH monthly Objective was to increase ICH market liquidity, however the picture has changed…. 2015 2016 (new nuclear situation) • SDR volume: some ICH migrated to SDR that • Driver disappeared due to SDR = 0 could be offered in summer as ICH monthly PRO’S • Industrial have better visibility on
Slide 61: R3 – Future sourcing 2017
R3 – Future sourcing 2017 • Introduction of monthly sourcing in 2016 R3 Prod R3 DP ICH 700 MW yearly 70 MW monthly (R3 Prod + R3 DP + ICH) (R3 Prod + R3 DP) • Experience with monthly sourcing: 2 auctions Delivery Period Total Contracted Vol. [MW] Avg Price[€/Mw/h] Total Offered Vol. [MW] Jan 2016 70
Slide 62: R3 – GL on Electricity Balancing
R3 – GL on Electricity Balancing Objectives of the code • Foster effective competition and transparency in Balancing markets • Promote the exchange of balancing services • Facilitate the participation of Demand Side Response including aggregation facilities and energy storage • Facilitate the partic
Slide 63: Many thanks for your attention!
Many thanks for your attention! ELIA SYSTEM OPERATOR Boulevard de l'Empereur 20 1000 Brussels +32 2 546 70 11 info@ elia.be www.elia.be An Elia Group company