Joint E oint Eur uropean opean Stak Stakeholder Gr eholder - PowerPoint PPT Presentation

Joint E oint Eur uropean opean Stak Stakeholder Gr eholder Group oup Tuesday 17 March 2015: Meeting 1

1. Introductions and Apologies Barbara Vest JESG Independent Chair

2. Appr pproval val of of JES JESG T G Ter erms of ms of Ref efer erence ence Barbara Vest JESG Independent Chair http://www2.nationalgrid.com/WorkArea/DownloadAsset .aspx?id=39985

3. Review view of of Action Action Log & Log & Issue Issue Log Log Sara-Lee Kenney JESG Technical Secretary

JESG Actions Log and Issue Log • The Action and Issue logs for ECCAF, DECC/Ofgem Stakeholder Meeting and the Joint European Standing Group have been reviewed, updated and consolidated. • There is now one Action Log and one Issue Log each showing the existing items but also any items closed as a part of this review and the reason for closure. • The initial Action Log and Issue Log have been published on the New JESG Website and will be captured in the headline report in future.

JESG Standing Actions ID Topic Lead Party Source Continue to review the membership of the JESG and engage S1 JESG Chair JESG S3 additional industry parties where appropriate. Prepare a commentary / comparison document between the Network Code and the existing GB arrangements at S2 NGET/Ofgem/DECC JESG S1 appropriate stages in the Code development for each Network Code. Share any intelligence about how other member states are DECC / Ofgem / approaching demonstrating compliance through information Industry parties with S3 ECCAF 3/2 gained from other government departments, regulators or European parent parent companies companies Stakeholders are requested to provide specific examples of inconsistent or problematic definitions in the Network Codes to S4 All Stakeholders JESG S6 Ofgem (natasha.z.smith@ofgem.gov.uk) and DECC (elena.mylona@decc.gsi.gov.uk).

JESG Open Actions ID Topic Lead Party Update Source 1 Consult GB Code DECC, Ofgem Closed: Ofgem has liaised with Code Panels who were also JESG Panels on the invited to provide comments on the proposed new structure. 188 development of Responses broadly supported the proposal for a single cross- the Joint industry forum on electricity European issues. All interested European parties are invited to review and approve the ToR for the new group at the March 2015 JESG’ Stakeholder Forum 2 NGET to liaise NGET (Paul Voting allocation under CACM is the responsibility of the JESG with the GB Wakeley) member state, so DECC to consider. 193 Regional Group There has not been a further regional group meeting since the on how voting will last JESG. work and what Closed, and open new action on DECC to update JESG on information will GB TSO voting under CACM. be published with regards to voting. 3 JESG Subgroup JESG Tuesday 14 April (Elexon, London) lead by Ofgem and JESG to be arranged Technical DECC 194 for April on Secretary Views on duration – Stakeholders requested half day 10-12:30 Emergency and Registration will open in this weeks JESG Update Email. Restoration Network Code

4. Sum Summar mary y Sta Status of tus of Eur European opean Netw Networ ork k Codes Codes Sara-Lee Kenney JESG Technical Secretary

5. CA CACM CM Flo low w Based Based Ca Capacity pacity Calcula Calculation tion Rob Selbie NGET

Flow Based Market Coupling Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Robert Selbie Robert.selbie@nationalgrid.com European Development

Contents  Introduction  Bidding zones  Capacity calculation  How NTC works  How Flow Based Market Coupling works  Comparison of Flow Based v NTC  Flow Based application to GB  Limitations of the Flow Based algorithm  Questions

Bidding zones  Bidding zones are the areas with a single electricity price and GB is a single market bidding zone as we have a single electricity price.  Before BETTA we had two bidding zones; 1. England & Wales 2. Scotland  If a generator buys TEC they can sell their generation to anyone within GB regardless of location. 13

Capacity Calculation  If a generator wants to sell energy to someone outside GB they must purchase* the capacity on an interconnector to do so.  TSOs calculate how much interconnector capacity is offered to the market.  Currently GB bidding borders;  GB-SEM border  GB-FR  GB-NL *(implicitly or explicitly). 14

ACER’s expectations and Coordinated Capacity Calculation  CACM requires regional TSO coordination to calculate cross border capacity. This will be done in regional groups (Capacity Calculation Regions) using the Common Grid Model.  The impact of cross border flows on one another must be considered.  The aim is to optimise the capacity made available to the market, to maximise social welfare (economic surplus). 15 15

ACER’s expectations and Capacity Calculation Methodology  Each Capacity Calculation Region must have a Capacity Calculation Methodology.  Each Capacity Calculation Methodology must undertake either; 1. NTC or 2. Flow based

NTC: Capacity Calculation Method 1 NTC B  Interconnection capacity defined ex-ante as the right to submit balanced NTC BC Net-exports schedules in NTC AB NTC CB each pair of Countries. NTC BA  The capacities offered to the market are such that NTC AC C the TSO is confident that if all capacity is sold, A system will remain within operational security NTC CA standards “When a TSO provides NTC constraints to the MC system, he needs to make a choice on how to split the capacity among its borders (A to B and A to C).”

Power flows Facts about transmission flows:  In meshed networks a power transaction between two points creates flows over multiple paths  The split depends on the parameters of the network (impedances)  TSOs have very limited means to control these flows

Flow based: Capacity Calculation Method 2 Flow based B  Interconnection capacity defined after all bids/offers have been received from the market. Power system is represented by simple C approximation. A  The simple power system approximation is such that all thermal security limits on the network are respected. “ The transmission rights for a given source-sink pair, are not fixed in advanced. Rather, they depend on the bid prices and hence are determined later during the allocation procedure .”

Flow-based: Power Distribution Transfer Factors (PTDF) Example – equal impedances 12 MW Calculation of power flows: Consumption B  PTDF matrix has all the information needed to calculate (approximately) flows resulting from net injections  The flows are a result of a product (in matrix sense) of the PTDF matrix and the net injections 27 MW  Calculation is fast and easy for any number of lines and A C 15 MW markets Generation 14 MW  The choice of reference node does not impact the results Consumption Net injections Flows PTDF matrix Thermal Ratings Market A Market B MW MW MW X = < Line AB 13 ± 200 Line AB 1/3 -1/3 Market A 27 Line AB ± 200 Line BC 1/3 2/3 Market B -12 Line BC 1 Line BC Line AC 2/3 1/3 Line AC 14 ± 200 Line AC

Flow-based: Power Distribution Transfer Factors (PTDF) Example – Line AB half impedence 12 MW Calculation of power flows: Consumption  PTDF matrix has all the information needed to calculate (approximately) flows resulting from net injections B  The flows are a result of a product (in matrix sense) of the PTDF matrix and the net injections 27 MW  Calculation is fast and easy for any number of lines and A 15 MW C markets Generation 11.4 MW  The choice of reference node does not impact the results Consumption Net injections Flows PTDF matrix Thermal Ratings Market A Market B MW MW MW X X = < Line AB 15.6 ± 400 Line AB 0.4 -0.4 Market A 27 Line AB ± 200 Line BC 0.4 0.6 Market B -12 Line BC 3.6 Line BC Line AC 0.6 0.4 Line AC 11.4 ± 200 Line AC

Flow Based: Transaction plane Representation NEX B  Export A full set of transactions for 3 markets can be shown in terms of net export from B (NEX) from two markets (to A & C)  Two net exports are always balanced Import to C against the net export from reference Import market: NEXA + NEXB + NEXC = 0 (from A & B) to A NEX A (from B & C) Export from A B Limit Limit (to B & C) 200MW 200MW Export to C Import (from A & B) A C to B Limit (from A & C) 200MW Reference node

Flow based: Security Domain = Flow based transaction space Security domain NEX B  A set of conditions specifying that flows remain within limits - 200≤ Flow AB ≤ 2 00 - 200 ≤ 1/3 NEXA – 1/3 NEXB ≤ 200 NEX A - 200 ≤ Flow BC ≤ 200 - 200 ≤ 1/3 NEXA + 2/3 NEXB ≤ 200 - 200 ≤ Flow AC ≤ 200 - 200 ≤ 2/3 NEXA + 1/3 NEXB ≤ 200

Flow based: Security Domain = Flow based transaction space Security domain 800  A set of conditions specifying that flows remain within limits 600 - 400≤ Flow AB ≤ 400 400 200 - 200 ≤ 0.4 NEXA – 0.4 NEXB ≤ 200 NEX B 0 -800 -600 -400 -200 0 200 400 600 800 - 200 ≤ Flow BC ≤ 200 -200 -400 - 200 ≤ 0.4 NEXA + 0.6 NEXB ≤ 200 - 200 ≤ Flow AC ≤ 200 -600 -800 NEX A - 200 ≤ 0.6 NEXA + 0.4 NEXB ≤ 200