Elia Group SA/NV · EURONEXT:ELI
Elia Group SA/NV — Entso-E — Technical Presentation (June 2018)
171 slides from Elia Group SA/NV's technical presentation, Jun 20, 2018
Slide 1: Stakeholder Workshop on EB GL Implementation
Stakeholder Workshop on EB GL Implementation Kjell Arne Barmsnes Convenor ENTSO-E WG AS EB GL Stakeholder Workshop 20.06.2018-21.06.2018 1
Slide 2: What to Expect from the Two Days
What to Expect from the Two Days • Presentation of all Implementation Frameworks • Pricing Proposals for all processes including the interaction with the Activation Purposes • Imbalance Settlement Harmonization • Outlook on TSO-TSO settlement Activation Purposes Proposal Harmonization Proposal Imbal
Slide 3: Implementation Framework Development
Implementation Framework Development Approved by all TSOs on Approved by all TSOs on Imbalance 09.11.2017 29.03.2018 aFRR Netting IF Public consultation IF Public consultation IF IF 15.01.2018 – 15.03.2018 26.04.2018 – 29.06.2018 NRA shadow opinion 13.03.2018 NRA shadow opinion <02.07.2018 Approved
Slide 4: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 5: Agenda Day 2
Agenda Day 2 From To Item 10:00 - 10:30 General Principles for Pricing and Settlement 10:30 - 12:00 Pricing, settlement and activation purposes methodology for: mFRR and RR (1/2) 12:00 - 12:35 Lunch 12:25 - 13:35 Pricing, settlement and activation purposes methodology for: mFRR and RR (2/2) 13:35 -
Slide 6: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 7: Imbalance Settlement Harmonisation Proposal
Imbalance Settlement Harmonisation Proposal Dr F. A. Nobel Convener ISH Project Team EB GL Stakeholder Workshop 20.06.2018-21.06.2018 7
Slide 8: Imbalance settlement harmonisation
Imbalance settlement harmonisation Decisions ENTSO-E MC, May 29th 2018 3.15 All TSOs acknowledge the developments on the proposal on imbalance settlement harmonisation. 3.16 All TSOs acknowledge that the proposal will be sent to the SPOC NRAs for feedback on the proposal so that the project team can
Slide 9: ISH draft proposal background
ISH draft proposal background • The EBGL mandates all TSOs to draft a proposal for imbalance settlement harmonisation (“ISH proposal”) by 18 December 2018. • WG AS has prepared a draft proposal following the specifications enclosed in the EBGL Art. 52(2). • The ISH draft proposal achieves to define:
Slide 10: Delimitations ISH draft proposal
Delimitations ISH draft proposal Harmonized elements of imbalance settlement in EBGL: • ISP 15 minutes (exemptions, derogation allowed) • No exemptions to balance responsibility • Calculation of imbalance BRP in self dispatch model based on trade schedules only • Each NRA shall ensure that its TSOs
Slide 11: Delimitations ISH draft proposal
Delimitations ISH draft proposal Areas for imbalance price & volume determination by each TSO *, are delineated by TSOs in national Terms and Conditions [for BRPs]: • Imbalance area, respectively • Imbalance price area Unlinked to Synchronous Zone/LFC Block/LFC Area/System/Balancing Area delineation
Slide 12: ISH draft proposal
ISH draft proposal • Main components of imbalance prices: An exhaustive list of main components is proposed. − Each TSO may only use the following prices as main component for calculating the imbalance price (per imbalance area, ISP and direction): a) Value of avoided activation (VoAA) of balancing
Slide 13: ISH draft proposal
ISH draft proposal • Value of avoided activation (VoAA) of FRR or RR: Price (single or dual) for each ISP during which there has been no activation of balancing energy in either direction in the imbalance price area. For the calculation of the VoAA, each TSO may use only the following prices and vol
Slide 14: All TSO position on imbalance pricing
All TSO position on imbalance pricing • This all-TSO proposal allows each TSO and NRA to develop appropriate national Terms and Conditions to accommodate national business processes. • National responsibility and privilege to determine imbalance price, using some, or all components from the proposed
Slide 15: Overview, after WG AS meeting June 13th
Overview, after WG AS meeting June 13th Definition/Methodology Harmonized Localized Remarks Standard product FRR, RR X Specific product FRR, RR X TSO Demand RR X TSO Demand mFRR X TSO Demand aFRR X Principles in SOGL Balancing energy volume X Balancing energy price per direction* X Number of prices:
Slide 16: Q&A
Q&A It's time for your questions. 16
Slide 17: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 18: Imbalance Netting Implementation Framework
Imbalance Netting Implementation Framework Markus Maurer Convener ENTSO-E PT IN EB GL Stakeholder Workshop 20.06.2018-21.06.2018 18
Slide 19: Consultation Overview - Participants
Consultation Overview - Participants 16 14 12 10 8 6 4 2 3 11 1 9 6 3 14 0 Association Generation Power Power 1 Storage Aggregator Total Consumer Supply IN IF public consultation between 15 Jan – 15 March • 14 responses from stakeholders. • Formal NRA shadow opinion received on 15 March. 19
Slide 20: NRA feedback and PT IN considerations
NRA feedback and PT IN considerations Recitals • Elaborate on the expected impact of the IN-Platform on the objectives of the GLEB. TSOs further elaborated on the objectives. Subject matter and scope • Specify to whom it applies and to whom it does not. TSOs added further clarification. • Distinguis
Slide 21: NRA feedback and PT IN considerations
NRA feedback and PT IN considerations High-level design of the IN-Platform • Include description, inputs and outputs of the functions. • Functions: IN process, TSO-TSO settlement and CZC determination. o Determination of remaining CZC after ID needs to be defined as a function in the platform, takin
Slide 22: Possible Configurations – Impact on CZC
Possible Configurations – Impact on CZC Synchronous Area Bidding Zone Bidding Zone Bidding Zone LFC Block LFC Block LFC LFC Block Block LFC LFC LFC LFC LFC Area Area Area Area Area Bidding Zone LFC Block LFC Block LFC Area LFC Area LFC Area LFC Block LFC LFC Bidding Bidding Bidding Bidding Area Area
Slide 23: Cross-Zonal Capacity and Limits
Cross-Zonal Capacity and Limits Normal operation: • CZC after intraday and previous balancing actions (RR & mFRR) is used • In aFRR optimization implicit netting is performed, remaining CZC is used for IN see optimization regions Operational security constraints: • In case of operational security
Slide 24: Proposal of functions
Proposal of functions aFRR- aFRR Control Area aFRR-DemandaFRR-Demand Control Area aFRR aFRR- Activation Balance Balance Activation Correction Correction ACE ACE aFRR-Request Secondary Secondary aFRR-Request Controller Controller Control Area 1 Imbalance TSO-TSO Netting Process Settlement Function Fu
Slide 25: NRA feedback and PT IN considerations
NRA feedback and PT IN considerations Description of the algorithm: • NRAs suggest leaving out of the IN IF any potential future merge between the IN-Platform and the aFRR-Platform. TSOs removed this part • NRAs ask to justify that pre-netting (optimisation regions) will not lead to discriminatory d
Slide 26: Principles of the algorithm I
Principles of the algorithm I • Proportional distribution • Non discrimination • Each TSO calculates the aFRR demand of its LFC area; • The aFRR demands and limits are sent to the imbalance netting process function; • The imbalance netting process function calculates the corrections whilst respectin
Slide 27: Principles of the algorithm II – Optimization regions
Principles of the algorithm II – Optimization regions • Optimization regions allowed for control blocks with prior access to transmission capacities • aFRR cooperations can form an optimization region with prior access to transmission capacities. • The optimal distribution of activations in an optim
Slide 28: Stakeholder feedback summary
Stakeholder feedback summary • No feedback with impact on platform design was received • Mainly further explanation and details were requested • Publication of results no requirement from GLEB, however TSOs agreed to publish the exchanged volumes (status quo) • Missing reference to periodical repo
Slide 29: Next steps - timeline
Next steps - timeline We are here 2017 2018 2019 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 NRAs approval NRAs approval Deadline of the design of the TSO-TSO for settlement Accession DESIGN II – TSO-TSO DESIGN I – Development of implementation framework Settleme
Slide 30: Further proceeding
Further proceeding • Imbalance Netting Implementation Framework is submitted by all TSO to all NRA individually • NRAs have 6 months to approve or ask for an amendment • After approval of the INIF – TSOs will implement the necessary changes to IGCC • Accession of remaining TSOs to IGCC 30
Slide 31: Indicative Accession Timeline
Indicative Accession Timeline – Technical IGCC accession has to be performed sequentially to enable sufficient testing and ensure stable system operation – Overall as the amount of energy exchanges by IGCC will increase with the expansion of the cooperation, the aFRR activation is expected to decrea
Slide 32: Q&A
Q&A It's time for your questions. 32
Slide 33: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 34: RR Implementation Framework
RR Implementation Framework Amine Abdala Head of TERRE Project EB GL Stakeholder Workshop 20.06.2018-21.06.2018 34
Slide 35: Introduction
Introduction entso@ 35
Slide 36: Replacement Reserves Implementation Framework
Replacement Reserves Implementation Framework • As required by the GLEB, all TSOs using RR have 6 months after the EIF of GLEB to submit a proposal for the RRIF. The deadline is thus 18 June 2018. • The work is handled by the TERRE project, in which all TSOs using Replacement Reserves are represente
Slide 37: Replacement Reserves Implementation Framework
Replacement Reserves Implementation Framework • RRIF is developed by all Transmission System Operators performing the reserve replacement process pursuant to Part IV of Regulation (EU) 2017/1485 of 2 August 2017 regarding the RRIF for a European platform for the exchange of balancing energy from rep
Slide 38: Replacement Reserves Implementation Framework
Replacement Reserves Implementation Framework • RRIF was submitted to public consultation between the 21 February and the 4 April 2018. • 23 answers from stakeholders, including a shadow opinion from NRAs were received and assessed by the TERRE project, in which all TSOs performing reserve replaceme
Slide 39: Main stakeholder concerns
Main stakeholder concerns 39
Slide 40: Main feedbacks
Main feedbacks 1. Elasticity of need 2. Counter Activation 3. Maximisation of Social Welfare 4. BEGCT definition 5. Unavailable bids 6. RR Product incentivized shape 7. Harmonisation of bid formats 8. Number of clearing / gates and reduction of cross border scheduling step 9. Involvement of BSPs in
Slide 41: Main updates
Main updates entso@ a
Slide 42: RR IF main updates
RR IF main updates • BEGCT definition (Article 7 of the RR IF) : new proposal The gate closure time (GCT) for the submission of Bids to the connecting TSOs by BSPs will be 55 minutes before the period which is concerned by the activation of the RR standard product to satisfy the TSO balancing ener
Slide 43: RR IF main updates
RR IF main updates • “Counter activation” proposal (Article 13.5 of the RR IF): new proposal For the go-live of the RR-Platform the AOF will allow the counter activations. No later than twelve months after the go-live of the RR-platform, the AOF will minimise the counter activations which at least
Slide 44: Q&A
Q&A It's time for your questions. 44
Slide 45: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 46: Overview and common provisions in the aFRR and mFRR IFs
Overview and common provisions in the aFRR and mFRR IFs Pavel Zolotarev Convener ENTSO-E PT aFRR EB GL Stakeholder Workshop 20.06.2018-21.06.2018 46
Slide 47: Alignment between FRR Projects
Alignment between FRR Projects FRR Implementation Framework Consistency aFRR and mFRR Whereas 1. Subject matter and scope 2. Definitions and interpretation Content Identical 3. High-level design of the FRR-Platform 4.The roadmap and timeline for the implementation of the FRR-Platform Mostly 5. Funct
Slide 48: Project Timeline
Project Timeline Art. 4 - The roadmap and timeline for the implementation of the aFRR-Platform and mFRR-Platform What do the IFs say: By 30 months after the approval of IF, implementation project shall fulfil all requirements defined in the IF and further requirements of EBGL. Timeline for the p
Slide 49: Content Overview - Art. 11 - 14
Content Overview - Art. 11 - 14 Art. 11 - Proposal of entities What does the IF say: TSOs shall appoint a TSO or a company owned by TSOs The designation of entities is required 6 months after approval of the implementation frameworks Art. 12 & 13 - Governance & Decision making What does the IF s
Slide 50: Content Overview - Art. 15 - 17
Content Overview - Art. 15 - 17 Art. 15 - Framework for harmonisation of terms and conditions for BSPs related to aFRR-Platform What does the IF say: Process to identify harmonization issues, conduct a stakeholder survey every 3 years (starting 3 years after start of operation of the aFRR-Platform
Slide 51: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 52: aFRR Implementation Framework
aFRR Implementation Framework Pavel Zolotarev Convener ENTSO-E PT aFRR EB GL Stakeholder Workshop 20.06.2018-21.06.2018 52
Slide 53: Alignment between FRR Projects
Alignment between FRR Projects FRR Implementation Framework Consistency aFRR and mFRR Whereas 1. Subject matter and scope 2. Definitions and interpretation Content Identical 3. High-level design of the FRR-Platform 4.The roadmap and timeline for the implementation of the FRR-Platform Mostly 5. Funct
Slide 54: Content Overview - Art. 1 and Art 2
Content Overview - Art. 1 and Art 2 Art. 1 - Subject matter and scope What does the IF say: The implementation framework is the common proposal of all TSOs in accordance with EBGL Articles 21. These proposal applies solely for the exchange aFRR, but The aFRR-Platform implements an imbalance nett
Slide 55: General Overview
General Overview Main Content of the Implementation Frameworks • High-level description of functions • Standard products (n/a for IN) • Balancing Energy gate closure time (n/a for IN) • TSO gate closure time (n/a for IN) • High-level description of optimization algorithms • Categorization of costs •
Slide 56: Basic Principle
Basic Principle aFRR-Activation aFRR LFC Area aFRR-Demand aFRR-Demand LFC Area aFRR aFRR-Activation (BSP) Balance Balance (BSP) Correction Correction ACE ACE aFRR-Request aFRR aFRR aFRR-Request Controller Controller LFC Area 1 LFC Area 3 AOF LFC Area 2 other Control Areas aFRR aFRR-Request Controlle
Slide 57: Content Overview - Art. 3
Content Overview - Art. 3 Art. 3 - High-level design of the aFRR-Platform What does the IF say: Platform will establish a cross-border aFRR activation process in accordance with Article 147 and Article 149 of SOGL for all LFC areas The Platform optimises the activation of standard product bids l
Slide 58: Content Overview - Art. 5
Content Overview - Art. 5 Art. 5 - Functions of the aFRR-Platform Whas does the IF say: Functions: Activation optimisation function (AOF) & TSO-TSO settlement function. TSO will submit at least the following inputs to the AOF: the demand for each of its LFC areas; the available cross-zonal c
Slide 59: There is More...
There is More... Operatibnal ‘limits * correction value + aFRR de id 8 seman aFRR-Activation FRCE adjustment Optimisation [pies (using CMOL) + TSO-TSO aFRi exchange activation Adaption of aFRR TSO need signal activation (aFRR (aFRR demand) Demand correction |__|. Adjusted aFRR Exchange (Adjusted FRC
Slide 60: Content Overview - Art. 6
Content Overview - Art. 6 Art. 6 - Definition of standard aFRR balancing energy product What does the IF say: The first validity period of each day shall begin at 00:00. Bid can be activated and deactivated at any moment within the validity period. Input aFRR Standard Product We say additionally
Slide 61: Full Activation Time
Full Activation Time Prequalification Bid Activation / Balancing MW MW FAT FAT Ppq Pbid,n Pbid,i Pbid,1 t t FAT = X minutes, while in the prequalification phase FAT refers to the activation of the whole volume which is to be prequalified, for the CMO the FAT refers to the time to activate a bid 61
Slide 62: Content Overview - Art. 7 and Art. 8
Content Overview - Art. 7 and Art. 8. Art. 7 - Balancing energy gate closure time for the standard aFRR product bids What does the IF say: BE (BSP) GCT 25 minutes before the beginning of the validity period of the respective standard aFRR balancing energy product bid. Art. 8 -TSO energy bid submis
Slide 63: Gate Closure Time Overview
Gate Closure Time Overview x-60 x-45 x-30 x-15 x RR Balancing RR RR TSO Energy bid GCT BE submission FRR TSO GCT GCT Range Range Range mFRR Balancing Energy bids submission aFRR Balancing Energy bids submission FRR Balancing Energy GCT
Slide 64: aFRR Process
aFRR Process Cross-zonal ID GCT Local ID GCT H-60min H-45min H-30min H-15min H 0 ; aFRR ‘ ay e PICASSO BSP bids gate @ eee aciation Renae L 7 It BEGOT ! PICASSOBEGCT — 59 processes Platform & TSO processes proposal entso@ 64
Slide 65: Content Overview - Art. 9 and Art. 10
Content Overview - Art. 9 and Art. 10 Art. 9 - Common merit order lists to be organised by the activation optimisation function What does the IF say: BSPs will submit bids to the connecting TSO, and then TSO submits these bids to the Platform (CMOL) Platform will create two CMOLs for each validi
Slide 66: Content Overview - Art. 11 - 14
Content Overview - Art. 11 - 14 Art. 11 - Proposal of entities What does the IF say: TSOs shall appoint a TSO or a company owned by TSOs The designation of entities is required 6 months after approval of the implementation frameworks Art. 12 & 13 - Governance & Decision making What does the IF s
Slide 67: Content Overview - Art. 15 - 17
Content Overview - Art. 15 - 17 Art. 15 - Framework for harmonisation of terms and conditions for BSPs related to aFRR-Platform What does the IF say: Process to identify harmonization issues, conduct a stakeholder survey every 3 years (starting 3 years after start of operation of the aFRR-Platform
Slide 68: Q&A
Q&A It's time for your questions. 68
Slide 69: Without FAP (ACE-Adjustment)
Without FAP (ACE-Adjustment) In the control concept, FRCE (ACE) is transferrred to the exporting area. 69
Slide 70: With FAP (ACE-Adjustment)
With FAP (ACE-Adjustment) The FRCE Adjusment transfers the ACE back to the TSO with the imbalance 70
Slide 71: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 72: mFRR Implementation Framework
mFRR Implementation Framework Martin Høgh Møller Convenor MARI SC EB GL Stakeholder Workshop 20.06.2018-21.06.2018 72
Slide 73: Alignment between FRR Projects
Alignment between FRR Projects FRR Implementation Framework Consistency with aFRR Whereas Mostly 1. Subject matter and scope identical 2. Definitions and interpretation 3. High-level design of the FRR-Platform Specific to each 4.The roadmap and timeline for the implementation of the FRR-Platform one
Slide 74: Content Overview - Art. 1 and Art 2
Content Overview - Art. 1 and Art 2 Art. 1 - Subject matter and scope What does the IF say: The implementation framework is the common proposals of all TSOs in accordance with EBGL Articles 20. These proposal applies solely for the exchange mFRR. The proposals for pricing, cross-zonal capacity
Slide 75: Content Overview - Art. 3
Content Overview - Art. 3 Art 3. - High-level design of the mFRR-Platform What does the IF say: Platform will establish a cross-border mFRR activation process in accordance with Article 147 and Article 149 of SOGL for all LFC areas. The Platform will optimise the activation of standard product b
Slide 76: Process Illustration
Process Illustration 11:50 11:51 11:52 11:53 11:54 11:55 11:56 11:57 11:58 11:59 12:00 12:01 12:02 12:03 12:04 12:05 12:06 12:07 12:08 12:09 12:10 for quarter-hour between 12:00 and Direct Direct Direct 12:15 activation activation activation com com AOF SA Ramping of SA bids /DA bids DA algorithm ca
Slide 77: Content Overview - Art. 6
Content Overview - Art. 6 Art. 6. - Definition of standard mFRR balancing energy product Input mFRR Standard Product What does the IF say: Demand Shall be - Elastic / inelastic Definition of the standard product specifically the standard Price 0.01 €/MWh mFRR product bid characteristics and the va
Slide 78: Bid characteristics
Bid characteristics under national responsibility A number of bid characteristics are determined under national responsibility Preparation time (max 12.5') Ramping time (max 12.5') Deactivation period Maximum duration of delivery period Min duration between end of deactivation period and
Slide 79: Linking of Bids
Linking of Bids Technical linking BSP is required to indicate which bids of consecutive quarter hours that belong to the same underlying assets in order to avoid unfeasible activations Economical linking (allowed if complexity of algorithm not increases too severely) Parent child Exclusive
Slide 80: Technical linking
Technical linking It is not possible for BSP to remove bids next quarter-hour when getting the activation signal in preceding quarter-hour. SA QH-1SA QH0 DA QH-1SA QH0 DA QH-1DA QH0 SA QH-1DA QH0 80
Slide 81: Parent-Child linking
Parent-Child linking Dependencies between bids of the same quarter-hour 81
Slide 82: Exclusive group orders
Exclusive group orders Only one bid can be select from a set of bids 82
Slide 83: Under investigation
Under investigation Conditional bids with linking backward in time Bid price dependent on whether bid is activated in preceding quarter-hour Enable BSP to include star-up costs more efficiently in the bids 83
Slide 84: Content Overview - Art. 7 and Art. 8
Content Overview - Art. 7 and Art. 8. Art. 7. - Balancing energy gate closure time for the standard mFRR product bids What does the IF say: BE (BSP) GCT 25 minutes before the beginning of the quarter hour for which the BSPs place the respective standard mFRR product bid. Art. 8. -TSO energy bid su
Slide 85: Gate Closure Time Overview
Gate Closure Time Overview x-60 x-45 x-30 x-15 x RR Balancing RR RR TSO Energy bid GCT BE submission FRR TSO GCT GCT Range Range Range mFRR Balancing Energy bids submission aFRR Balancing Energy bids submission FRR Balancing Energy GCT
Slide 86: Content Overview - Art. 9 and Art. 10
Content Overview - Art. 9 and Art. 10 Art. 9 - Common merit order lists to be organised by the activation optimisation function What does the IF say: BSPs shall submit bids to the connecting TSO, and then TSO submits these bids to CMOL Platforms shall create two CMOLs for each quarter hour for m
Slide 87: mFRR CMOL and AOF: Overview
mFRR CMOL and AOF: Overview Input mFRR AoF Property mFRR AOF elastic and inelastic for Social welfare maximisation yes Demand schedule activation Inelastic for direct Counteractivation yes One with positive bids CMOLs One with negative bids Minimization of Exchanges Both for schedule yes o
Slide 88: mFRR CMOL and AOF: Algorithm, product and types of activation
mFRR CMOL and AOF: 1 Algorithm, 1 product and 2 types of activation Schedule activation: once per quarter interval Both CMOLs and all TSO needs are input in the Algorithm Available cross zonal capacity Direct activation: continuous manner – at any point of time between two schedule activatio
Slide 89: mFRR CMOL and AOF: Inputs to AOF
mFRR CMOL and AOF: Inputs to AOF CMOLs, TSO needs and available cross zonal capacity One-step 89
Slide 90: mFRR CMOL and AOF: inelastic needs and divisible bids
mFRR CMOL and AOF: Example: inelastic needs and divisible bids Comment Upward Need (TSO 1) Downward Bid (BSP 1) Without any restriction on counter-activations, the social Upward Bid (BSP 3) welfare reaches its theorical maximum. 150 200 250 300 350 400 The resulting marginal price is intuitively bas
Slide 91: mFRR CMOL and AOF: inelastic needs and indivisible bids
mFRR CMOL and AOF: Example: inelastic needs and indivisible bids Comment Upward Need (TSO 1) Indivisible Downward Bid (BSP 1) Without any restriction on counter-activations, the social Indivisible Upward Bid (BSP 3) welfare reaches its theorical maximum. 150 200 250 300 350 400 In the example aside,
Slide 92: mFRR CMOL and AOF: cost efficient satisfaction of needs
mFRR CMOL and AOF: Example: cost efficient satisfaction of needs €/MWh Upward Need (TSO 1) Comment IT Cap Upward Bid (BSP 3) Counter-activations help to … 80 satisfy the needs in a cost efficient way with intuitive Downward Bid (BSP 1) 20 pricing result. 10 150 200 250 300 350 400 In the example asi
Slide 93: Summary/conclusion
Summary/conclusion The same algorithm and product is used in two types of activation: Schedule activation: Algorithm runs once per quarter interval when there are TSO needs submitted to MARI Direct activation: Algorithm runs when a TSO need for direct activation is submitted to MARI Netting
Slide 94: Q&A
Q&A It's time for your questions. 94
Slide 95: Agenda Day 1
Agenda Day 1 From To Item 10:00 - 10:25 Welcome: Agenda and Topics Next Consultation 10:25 - 11:25 Imbalance Settlement Harmonisation 11:25 - 12:25 IN Implementation Framework 12:25 - 13:00 Lunch 13:00 - 14:30 RR Implementation Framework 14:30 - 15:00 aFRR/mFRR Implementation Framework 15:00 - 15:15
Slide 96: Agenda Day 2
Agenda Day 2 From To Item 10:00 - 10:30 General Principles for Pricing and Settlement 10:30 - 12:00 Pricing, settlement and activation purposes methodology for: mFRR and RR (1/2) 12:00 - 12:35 Lunch 12:25 - 13:35 Pricing, settlement and activation purposes methodology for: mFRR and RR (2/2) 13:35 -
Slide 97: General Principles for Pricing, Settlement and Activation Purposes
General Principles for Pricing, Settlement and Activation Purposes Pavel Zolotarev Convenor ENTSO-E PT PSAP EB GL Stakeholder Workshop 20.06.2018-21.06.2018 97
Slide 98: EB GL Requirements
EB GL Requirements Art. 30: Pricing for balancing energy used for exchange or imbalance netting • ”[...] develop a proposal for a methodology to determine prices for the balancing energy that results from the activation of balancing energy bids for the frequency restoration […] and the reserve repla
Slide 99: Marginal Pricing as Basis for the Proposals
Marginal Pricing as Basis for the Proposals In this context, the Marginal Price (MP) represents the Bid price price of the last bid of a standard product which has been activated to cover the energy need for balancing purposes within a specified area. MP B ► Same principle as day-a-head market B 10
Slide 100: Cross-Border Marginal Pricing (XBMP)
Cross-Border Marginal Pricing (XBMP) • The AOF will compute the balancing energy price per area. • In the case there is no congestions between adjacent areas, the price will be the same in these areas • In case there is a congestion – there will be a price split (principally like the day-ahead marke
Slide 101: Why Cross-Border-Marginal-Pricing?
Why Cross-Border-Marginal-Pricing? • Marginal pricing is prescribed by EB GL. • XBMP contributes to a level playing field within the platforms - BSPs providing the same service in an uncongested area are remunerated with the same price; • Cross-Border Marginal Pricing is currently used for day ahead
Slide 102: One Product – One Price
One Product – One Price … or in other words – there will be no cross-product pricing TERRE (RR) RR Price for the ISP The combination of these AOF balancing energy prices into an imbalance price for the ISP MARI (mFRR) DA mFRR Price for the ISP shall be defined in the AOF SA mFRR Price for the ISP na
Slide 103: Pricing Proposal Structure
Pricing Proposal Structure • The pricing proposal will be comparable to the implementation frameworks • The pricing proposal will not repeat the implementation frameworks • Draft structure: Whereas 1. Subject matter and scope – in accordance with Article 30 of EB GL 2. Definitions and interpretation
Slide 104: Activation Purposes
Activation Purposes Pricing Pricing Activation Purpose Activation Purpose Process for Balancing for System Constraint Balancing System Constraints* Purpose Purpose Purpose XBMP and pay-as-bid for RR yes XBMP yes bids identified in accordance with dry run XBMP and pay-as-bid for mFRR yes XBMP yes bid
Slide 105: Activation Purposes Proposal Structure
Activation Purposes Proposal Structure • The activation purposes proposal (APP) will be comparable to the implementation frameworks • The APP is a short proposal. • Draft structure: Whereas 1. Subject matter and scope – in accordance with Article 29(3) of EB GL 2. Definitions and interpretation – sh
Slide 106: Q&A
Q&A It's time for your questions. 106
Slide 107: Agenda Day 2
Agenda Day 2 From To Item 10:00 - 10:30 General Principles for Pricing and Settlement 10:30 - 12:00 Pricing, settlement and activation purposes methodology for: mFRR and RR (1/2) 12:00 - 12:35 Lunch 12:25 - 13:35 Pricing, settlement and activation purposes methodology for: mFRR and RR (2/2) 13:35 -
Slide 108: MARI and TERRE Pricing Methodology: Bid selection specifics
MARI TERRE Manually Activated (Trans European Replacement Reserves Initiative Reserves Exchange) Pricing Methodology Bid selection specifics Matthias Eder, MARI Work Stream Pricing and Settlement Amine Abdala, Head of TERRE Project (Balancing stakeholder meeting, Brussels, 21st of June 2018)
Slide 109: Contents
Contents TOPIC Pricing methodology (I) – Bid selection specifics • Elasticity of demands • Counter-activations • Rejection of bids Pricing methodology (II) – Volume and price determination • Volume determination for schedule and direct activations • Price determination for schedule and direct activa
Slide 110: Pricing methodology (I) – Bid selection specifics
Pricing methodology (I) – Bid selection specifics ENTSO-E Workshop on Balancing, 21st of June 2018 110
Slide 111: Elasticity of demands
Pricing methodology (I) – Bid selection specifics Elasticity of demands o TSOs have different products to balance their system • Operators consider the prices of the different balancing products and the probability that the forecast imbalance will occur • Elasticity of demand will remove uncertainti
Slide 112: Counter-activations (1/2)
Pricing methodology (I) – Bid selection specifics Counter-activations (1/2) o With the term counter-activations, we refer to the simultaneous activation of an upward and a downward bid in order to increase the social welfare. o TERRE will allow the counter-activations for the first 12 months of oper
Slide 113: Counter-activations (2/2)
MARI Pricing methodology (I) – Bid selection specifics Counter-activations (2/2) o Allowance of counter-activations: • Satisfaction of both needs • Activation of 100 MWh DDB and 90 MWh DUB • Price indeterminacy between 500€ and 510€ • Minimization of counter- activations: • Satisfaction of both need
Slide 114: Rejection of bids
Pricing methodology (I) – Bid selection specifics Rejection of bids o Complex bid formats may lead to unforeseeably accepted and rejected bids if no further constraints are introduced o Unforeseeably accepted bids (UABs) o Unforeseeably rejected bids (URBs) • The use of uplifts would be necessary to
Slide 115: Pricing methodology (II) – Volume and price determination
Pricing methodology (II) – Volume and price determination ENTSO-E Workshop on Balancing, 21st of June 2018 115
Slide 116: Volume determination (I)
Pricing methodology (II) – Volume and price determination Volume determination (I) o Principles: • The total energy volume, i.e. the integral of the standard power profile, will be settled • The volumes will be settled in the form of blocks („block settlement“), in order to reduce the number of affe
Slide 117: Volume determination (II)
Pricing methodology (II) – Volume and price determination Volume determination (II) o Direct Activation (MARI): • In the case of a Direct Activation, 2 QHs are affected • hence, 2 blocks of volumes will be settled (and may be remunerated differenty) P QH-1 QHi QHi+1 QH+2 Volume 1 Volume 2 t ENTSO-E
Slide 118: Price determination (I)
P QH-1 QHi QHi+1 Pricing methodology (II) – Volume and price determination Price determination (I) t €? o Scheduled Activation (MARI and TERRE) • For the settlement of the schedule activated volume, the XBMP resulting from the scheduled clearing of the respective quarter hour will be applied ENTSO-E
Slide 119: Price determination (II)
QHi QHi+1 P Volume 1 Volume 2 Pricing methodology (II) – Volume and price determination Price determination (II) t €? €? o Direct Activation (MARI) • Underlying Assumptions One-step algorithm; activation separately for upward and downward; sequential Direct Activation after Scheduled Activation
Slide 120: Price determination (III)
Direct Activations (QHi MOL) Schedule Activations (QHi MOL and QHi-+1 MOL) P QH-1 QHi QHi+1 QH+2 Pricing methodology (II) – Volume and price determination Price determination (III) o Direct Activation (MARI) t “CPSA QHi” “BPDA QHi” “CPSA QHi+1” 3 possible price components: + MP - MP • Marginal Price
Slide 121: Price determination (IV)
Pricing methodology (II) – Volume and price determination Price determination (IV) o Direct Activation (MARI) • Pricing Options: QHi QHi+1 P Volume 1 Volume 2 t €? €? Options: Settlement price for Direct Activated energy delivered in: QHi QHi+1 Option 1 MAXorMIN(CPSA QHi; BPDA QHi) Max or Min(CPSA Q
Slide 122: Price determination (VI)
QHi QHi+1 P Volume 1 Volume 2 Pricing methodology (II) – Volume and price determination Price determination (VI) t €? €? o Direct Activation (MARI) • The price of the DA bid from « CMOL QHi » should in principle be independent of the price of DA/SA bids from subsequent CMOL (« CMOL QHi+1 ») Same p
Slide 123: Price indeterminacy (I)
Pricing methodology (II) – Volume and price determination Price indeterminacy (I) o Price indeterminacy is a special situation when identical bid and demand selection can lead to multiple optimal clearing price solutions o To calculate the price in this case, we consider an upper and a lower price b
Slide 124: Settlement of netted volumes
Settlement of netted volumes ENTSO-E Workshop on Balancing, 21st of June 2018 124
Slide 125: Settlement of netted volumes: Definition
MARI Settlement of netted volumes Definition Netted volume: virtual exchange of mFRR energy between cooperating LFC areas which results from netting of opposed mFRR demands. • “Partial Netting”: Netting of demands occurs along with (counter-)activation of bids • “Perfect Netting”: Netting of demands
Slide 126: Settlement of netted volumes: Price determination (I)
MARI Settlement of netted volumes Price determination (I) Settlement of Partial Netted Volumes: Due to one-step approach of the algorithm, netted volumes cannot be distinguished from activated volumes. Proposed solution: Application of XBMP for settlement of activated and netted volumes for both
Slide 127: Settlement of netted volumes: Price determination (II)
MARI Settlement of netted volumes Price determination (II) Options: • Option 1*: XBMP 0 €/MWh resulting from the algorithm • Option 2*: Average of the lowest prices for upward and downward CMOLs • Option 3: XBMP of avoided mFRR activation • Option 4: Average price of avoided mFRR activation based on
Slide 128: Activation purposes other than balancing
Activation purposes other than balancing ENTSO-E Workshop on Balancing, 21st of June 2018 128
Slide 129: Interconnector Controllability
Activation purposes other than balancing Interconnector Controllability o Interconnection controllability: • For security reasons, TSOs can define limits for minimum / maximum flow to allow for control in certain system conditions. o This concept is proposed to be incorporated in TERRE o MARI is stu
Slide 130: Interconnector Controllability: Example (1/3)
MARI Activation purposes other than balancing Interconnector Controllability: Example (1/3) Example Desired flow: 30-50 MW TSO1 TSO2 TSO3 +20MW +50MW +50MW Algorithm run (unconstrained run) with ATC from TSO2 to TSO1 = 0, and ATC 1 to 2 = 50MW 50 MW BSP TSO Offer direction Offer Offer price Activate
Slide 131: Interconnector Controllability: Example (2/3)
MARI Activation purposes other than balancing Interconnector Controllability: Example (2/3) Constrained run: Optimization considers desire flow and gives the following results BSP TSO Offer direction Offer quantity Offer price (€/MWh) Activated (MW) quantity (MW) 30 MW 20 MW 1 1 Upward 40 50 40 TSO1
Slide 132: Interconnector Controllability: Example (3/3)
MARI Activation purposes other than balancing Interconnector Controllability: Example (3/3) Optimization considers desire flow and gives the following results BSP TSO Offer direction Offer quantity Offer price (€/MWh) Activated 30 MW 20 MW (MW) quantity (MW) TSO1 TSO2 TSO3 1 1 Upward 40 50 40 +20MW
Slide 133: Congestion Rent
Congestion Rent ENTSO-E Workshop on Balancing, 21st of June 2018 133
Slide 134: Congestion Rent: Definition and Calculation
Congestion Rent Definition and Calculation o In case of congestion in one interconnector: • Different marginal prices at both sides • Price in each zone determined by the activated bids at the non-congested zone • A surplus is generated congestion rent • Example with two areas, A and B, with ATC A
Slide 135: Q&A
Q&A It's time for your questions. 135
Slide 136: BACKUP
BACKUP ENTSO-E Workshop on Balancing, 21st of June 2018 136
Slide 137: Price determination (V)
QHi QHi+1 P Volume 1 Volume 2 Pricing methodology (II) – Volume and price determination Price determination (V) t €? €? o Direct Activation (MARI) • Pricing options have been assessed and evaluated based on the following criteria: a. Pay at least bid price for all energies b. Price formulas for DA s
Slide 138: Settlement of netted volumes: Option 1
MARI Settlement of netted volumes Option 1 Settlement price = XBMP of 0 €/MWh resulting from a regular algorithm run Benefits: - Simple method for a case with a low probability of occurrence Drawbacks: - Exchanged mFRR energy has no value ENTSO-E Workshop on Balancing, 21st of June 2018 138
Slide 139: Settlement of netted volumes: Option 2
MARI Settlement of netted volumes Option 2 Settlement price = average of the first prices of the respective upward and downward CMOLs Calculation example: - lowest upward bid price = 10 €/MWh - lowest downward bid price = -5 €/MWh - Settlement price = [(10 + (– 5)]/2 = 2,5 €/MWh Benefits: - si
Slide 140: Settlement of netted volumes: Options 3, 4, 5
MARI Settlement of netted volumes Option 3; 4; 5 Option 3: Settlement price = XBMP of avoided mFRR activation Assumption: The volumes in the uncongested area are not netted but fully activated. Option 4: Settlement price = Average price of avoided mFRR activation based on pay-as-bid settlement A
Slide 141: Congestion Rent Distribution (I)
Congestion Rent Distribution (I) • Congestion Rent generated due to RR and mFRR processes is considered as an income generated after an implicit allocation of available capacity in the context of balancing services. • This interpretation would be the same as used in other timeframes such as day ahea
Slide 142: Congestion Rent Distribution (II)
Congestion Rent Distribution (II) CACM CID Methodology (approved by ACER on 14th December 2017) • Sharing keys for the Congestion Income (CI) o CI calculated based on allocated capacities – 50%-50% for the TSOs on each side of the BZ border Exceptions: it is permitted to have a different sharing k
Slide 143: Agenda Day 2
Agenda Day 2 From To Item 10:00 - 10:30 General Principles for Pricing and Settlement 10:30 - 12:00 Pricing, settlement and activation purposes methodology for: mFRR and RR (1/2) 12:00 - 12:35 Lunch 12:25 - 13:35 Pricing, settlement and activation purposes methodology for: mFRR and RR (2/2) 13:35 -
Slide 144: PICASSO aFRR Platform Pricing Methodology
PICASSO aFRR Platform Implementation Project Pricing Methodology Paul Krall, PICASSO TF Pricing Leader Esther Bos, PICASSO TF BEPP Leader Bernard Campion, PICASSO TF Volume Determination Leader EB GL Stakeholder Workshop 20.06.2018-21.06.2018
Slide 145: Content
Content PICASSO SH Workshop SUBJECT WHAT WHO TIMING 1 Pricing & Settlement: Main Principles Information Paul Krall 25 min 2 BEPP Information Esther Bos 30 min 3 Information Bernard TSO-BSP Volume determination & Dummy Energy 15 min Campion 3 Information Bernard Questions 20 min Campion 145
Slide 146: TOP 1. Pricing & Settlement: Main Principles
TOP 1. Pricing & Settlement: Main Principles 146
Slide 147: Pricing & Settlement: Main Principles Overview
Pricing & Settlement: Main Principles Overview • For price setting PICASSO TSOs agreed to use “Cross-Border Marginal Pricing” (XB-MP) • Same price for uncongested area(s) • Compliancy with EBGL Art. 30 • Takes into account pricing method in day-ahead and other balancing (i.e. mFRR & RR) markets • Be
Slide 148: Background: aFRR special property
Pricing & Settlement: Main Principles Background: aFRR special property Bid 4 Validity Period 1 Validity Period 2 Bid No. Selected Accepted Selected Accepted Bid 3 Bid 1 yes yes yes yes Bid 2 yes yes yes yes Bid 2 Bid 3 yes yes no yes Bid 4 yes yes no yes Bid 1 Period 1 Period 2 aFRR set-point • In
Slide 149: Price Setting
Price Setting 149
Slide 150: Price Setting: Introduction
Price Setting Introduction • Degrees of freedom regarding the signal the XB-MP (see previous slide): • XB-MP can be determined based on: selected (e.g. by AOF) accepted (different per LFC area e.g. Control Target) and/or activated (e.g. aFRR activation) bids from CMOL. • Depending on the respe
Slide 151: Price Setting: Overview of approaches
Price Setting Overview of approaches Option A Option B Central Price Determination Local Price Determination AOF-Result “Filtered” AOF-Result Basis: local selection rules Simulation of Simulation of min. req. Assumed PI filter aFRR activation for aFRR exchange 151
Slide 152: Illustration: Central price determination
Price Setting Illustration: Central price determination (incl. sub-options) Central Price Determination - Pricing with Bid 4 AOF signal Central Price Determination – Pricing at “filtered” AOF signal (e.g. assumed PI-Filter) Bid 3 Central Price Determination - Pricing with simulated aFRR activation B
Slide 153: Pricing Principles Option B: example
Pricing Principles Option B: example Area A Local accepted volume based on request Marginal Bid = Bid 6 Marginal Bid = Bid 6 Marginal Bid = Bid 6 Marginal Bid = Bid 2 MW If a bid sets the marginal price for local activation, it should also set the marginal price in case of cross- Bid 8 border activa
Slide 154: TSO-TSO Settlement
TSO-TSO Settlement 154
Slide 155: TSO-TSO Settlement: Introduction
TSO-TSO Settlement Introduction • For TSO-TSO settlement PICASSO TSOs agreed in MoU to use “Proportional Cost Sharing” • Full cost-recovery of the aFRR costs incurred in the Exporting Area from the Importing Area in case of no CZC limitations. • Calculation of congestion rent in case of CZC limitati
Slide 156: Options for volume based approach
TSO-TSO Settlement Options for volume based approach • Following options to determine TSO-TSO settlement volumes were identified: Centralized solution Centralized solution Centralized solution Decentralized solution AOF result „filtered“ AOF „filtered“ AOF Based on FAP volumes based on min. requirem
Slide 157: Congestion Rent determination
TSO-TSO Settlement Congestion Rent determination In a general way, there are further three ways to use TSO-TSO settlement volumes for TSO-TSO settlement: Option 1: Explicitly calculate a congestion (in line with cost-based approach for TSO-TSO settlement): Congestion rent (for whole PICASSO ar
Slide 158: TOP 2. BEPP
TOP 2. BEPP 158
Slide 159: BEPP Status Update
2. BEPP Status Update ► Discussion on BEPP are ongoing within PICASSO, with the following new considerations and topics: • The BEPP and effects of BEPP choice affect the consequences of open discussion points in regards to XB marginal price setting as presented today • Several mitigation measures to
Slide 160: BEPP Reminder
2. BEPP Reminder Situation • TSOs are responsible for maintaining the frequency and ACE within given parameters. • Market participants carry financial responsibility for their energy imbalances. • Within an ISP the energy and power fluctuations are strongly linked. aFRR is activated continuously and
Slide 161: BEPP Options Considered
2. BEPP Options Considered ► In principle two extreme options are possible for the balancing energy pricing period: „Control-cycle BEPP“ „15-min BEPP“ • The BSP settlement is settled on a • The BSP settlement is done on an ISP control-cycle basis (each 4 seconds) basis (each 15 minutes) • The BRP se
Slide 162: BEPP Overview
2. BEPP Overview ► The period of application of marginal pricing for aFRR is a pure market design & redistributive question. ► The aFRR activations are unchanged. ► Main effects resulting from the two options: Control cycle BEPP Quarter-hour BEPP BSP income Lower Higher BRP cost of imbalances Lower
Slide 163: Congestions and congestion rent
2. BEPP Congestions and congestion rent ► Due to fluctuating aFRR demand, different borders could be congested at different moments within the same ISP ► Control-cycle BEPP determines prices for TSO-BSP settlement and TSO-TSO settlement, including the congestion rent, on cycle basis ► The ratio of p
Slide 164: Risk for price spikes without mitigation in quarter-hour BEPP
2. BEPP Risk for price spikes without mitigation in quarter-hour BEPP High prices triggered by demand spikes could affect longer periods 164
Slide 165: Quarter hour BEPP with mitigation measures
2. BEPP Quarter hour BEPP with mitigation measures ► A quarter hour BEPP combined with mitigation measures has been proposed in order to mitigate negative aspects ► The mitigation measures would mainly address the possibility of very short activation spikes to lead to high prices for a full ISP. Eff
Slide 166: Selection rules for BEPP
2. BEPP Selection rules for BEPP ► One option for mitigation measures are selection rules that define when a bid would become price setting. The following suboptions have been identified: i. Requiring a minimum duration of activation before a bid becomes price setting This would prevent activation
Slide 167: TOP 3. TSO-BSP Volume determination & Dummy Energy
TOP 3. TSO-BSP Volume determination & Dummy Energy 167
Slide 168: TSO-BSP Volume determination
3. TSO-BSP Volume determination Link between non harmonization of activation method and non harmonization of TSO-BSP volume determination ► PICASSO TSOs decided not to harmonize the activation method. The two main currently used approaches throughout Europe will coexist: “FAT approach” and “ramping
Slide 169: Settlement of dummy energy
3. TSO-BSP Volume determination Settlement of dummy energy ► A specific harmonization topic impacting TSO-BSP volume determination currently under discussion in PICASSO is the settlement of dummy energy What is dummy energy? ► Dummy energy as defined by PICASSO TSOs refers to energy still delivered
Slide 170: Settlement of dummy energy options
3. TSO-BSP Volume determination Settlement of dummy energy ► Currently, some TSOs include dummy energy in TSO-BSP settlement while others (the majority) don’t ► At this stage, PICASSO TSOs see two possible options for the settlement of dummy energy: • No harmonization • Harmonization towards no sett
Slide 171: Q&A
Q&A It's time for your questions. 171