Market Network Codes CACM 2 nd SEM RA/TSO Stakeholder Forum Mark - - PowerPoint PPT Presentation

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Market Network Codes CACM 2 nd SEM RA/TSO Stakeholder Forum Mark - - PowerPoint PPT Presentation

Market Network Codes CACM 2 nd SEM RA/TSO Stakeholder Forum Mark Lane 4 th April 2013 Top 8 issues in CACM NC 1. Capacity Calculation for DA & ID 2. Bidding Zones 3. Redispatching & Countertrading 4. DA market & Price Coupling 5.


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SLIDE 1

Market Network Codes CACM

2nd SEM RA/TSO Stakeholder Forum Mark Lane 4th April 2013

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SLIDE 2

Top 8 issues in CACM NC

  • 1. Capacity Calculation for DA & ID
  • 2. Bidding Zones
  • 3. Redispatching & Countertrading
  • 4. DA market & Price Coupling
  • 5. ID market & Continuous Trading
  • 6. Firmness
  • 7. Regional Auctions
  • 8. SEM 2016 derogation
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SLIDE 3

CACM - Update

  • ACER recommendation to EC – 14 March
  • ENTSO-E response to EC – 18 March
  • Areas of broad agreement:

– RA approvals, Bidding Zones, Consultation, NC Objectives, Cost Recovery etc

  • Areas where broad agreement not reached

– Capacity Calculation, Deadlines for Implementation, Intraday, Redispatching & Countertrading

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SLIDE 4

Network Code Development – CACM

March 2013 April 2013 May 2013 Q2 2013

ACER Recommendation & Comitology

Step 8

ACER recommendation ENTSO-E response

Comitology Process EC merge of CACM & GG

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SLIDE 5

Market Network Codes FCA

2nd SEM RA/TSO Stakeholder Forum Mark Lane 4th April 2013

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SLIDE 6

Top 8 issues in FCA NC

  • 1. Capacity Calculation for LT
  • 2. Bidding Zones
  • 3. Determination of Capacity Splitting across

timeframes

  • 4. Risk Hedging Options – PTRs with UIOSI, FTRs, CfDs
  • 5. Single Platform for Primary/Secondary Trading
  • 6. Regional Platforms
  • 7. European Harmonised Auction Rules
  • 8. Firmness
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SLIDE 7

FCA Update

  • ENTSO-E MC approval on 27 February
  • ENTSO-E Assembly approval on 21 March
  • ENTSO-E starts Public Consultation – 28 March
  • SAG Bilaterals (eg ACER, Eurelectric, EFET, EuroPex) -April/May
  • FCA 1st Public Workshop on 8 May, register by 26 April
  • SEM FCA Workshop – mid-May (TBD)
  • Deadline for Public Consultation – 28 May

DT now working on:

  • Capacity Calculation for LT
  • Firmness
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SLIDE 8

Network Code Development – FCA

March 2013 April 2013 May 2013 Q2 2013

Internal Approvals

Step 3

Public Consultation

Step 4

EFET Bilateral Eurelectric bilateral FCA DT Meeting Assembly approval ACER/ENTSO-E bilateral Start Public Consultation Close Public Consultation Register for Workshop 1st Stakeholder Workshop EuroPex Bilateral SEM FCA Workshop

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SLIDE 9

Harmonised European Auction Rules

  • New working group to assess feasibility on harmonising European auction

rules

  • One SPOC per region

– CWE (BE, FR, DE, LU, NL, CH) – CEE (AT, CZ, DE, HU, PL, SK, SI) – CSE (IT, FR, DE, AT, SI, CH, GR) – SWE (ES, PT, FR) – FUI (FR, UK, IE) – Baltic (EE, LV, LT)

  • Bulgaria, Romania & Croatia allowed one SPOC each
  • Non-ENTSO-E ICs allowed one SPOC = BritNed
  • SPOC for FUI region = EWIC
  • 1st SPOC meeting on 9 April
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SLIDE 10

Thank You

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SLIDE 11
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SLIDE 12

Market Network Codes Electricity Balancing

4th April 2013 Conor Kavanagh

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SLIDE 13

Overview of Network Codes

  • Requirements for Generators

(RfG)

  • Demand Connection Code

(DCC)

  • HVDC Connection Code

(HVDC)

  • Connection Procedures

(CP)

Connection Related Codes

  • Operational Security Network

(OS)

  • Operational Planning & Scheduling

(OPS)

  • Load Frequency Control & Reserves

(LFCR)

  • Operational Procedures in an Emergency

(EP)

System Operation Related Codes

  • Capacity Allocation & Congestion Management (CACM)
  • Forward Capacity Allocation

(FCA)

  • Electricity Balancing

(EB)

Market Related Codes

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SLIDE 14

ID

DA/ID link to EC Governance guideline

DA

CC link to OS/OPS due to CGM

CC

All market codes link to transparency regulation

FCA

FCA Linked to MIFID

EB

All connection codes link to EB

  • Capacity Allocation and

Congestion Management was the first market code to be developed

  • Followed by Forward Capacity

Allocation

  • And Electricity Balancing .
  • All market related codes tie into

transparency regulation

  • Day Ahead & Intra Day are closely

linked to the EC Governance Guideline

  • FCA has links to MIFID

These codes have direct links to

  • thers;
  • EB to all connection codes
  • Also to LFCR operational code
  • Capacity Calculation links to

both OS and OPS

Market Based Codes

EB closely linked to LFCR

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SLIDE 15

Scope NC LFC&R & EB NC

NC LFC&R: Determine required volumes and distribution of reserves to ensure

  • perational security
  • Dimensioning of reserves
  • Technical

limits for exchange, sharing and cross-border activation

  • f reserves

Technical requirements to ensure safe exchange / sharing / cross-border activation of reserves

  • Need for available transmission

capacity

  • Fall-back solutions,…

NC Electricity Balancing: Provision

  • f

required reserve volumes (within the limits for distribution set by NC LFC&R) Optimized activation of reserves (energy) available in the system Mechanisms to ensure the available transmission capacity for sharing / exchange / XB activation of reserves

Technical Market

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SLIDE 16

Order of Work

HVDC High Voltage Direct Current Connection requirements EB Electricity Balancing FCA Forward Capacity Allocation LFCR Load Frequency Control and Reserves OPS Operational Planning and Scheduling OS Operational Security DCC Demand Connection Code CACM Capacity Allocation and Congestion Management RfG Requirement for Generators

Through a ‘Priority List’ agreed upon through consultation Decided By EC

  • Accessed here

ENTSO-E’s 3 year work plan Influenced by and informs

  • Accessed Here

Therefore Current Network Codes Developed in this order

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SLIDE 17

Tentative Timeline for submission of EB NC

ENTSO-E Internal Approvals 3rd Stakeholder Workshop Public Consultation (2 months over summer) Analysis and updated drafting ENTSO-E internal approvals Approval of EBNC (ACER opinion, monitor & manage Comitology)

  • ca. 12 months

Submission to ACER

... Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb ... 2012 2013 2014

Start (EC letter) 1st Stakeholder Workshop - 7th May 2nd Stakeholder Workshop ENTSO-E internal approvals Drafting 2nd EBSAG Meeting 3rd EBSAG Meeting 4th EBSAG Meeting 5th EBSAG Meeting ENTSO-E Internal Approvals

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SLIDE 18

Overview of Electricity Balancing NC

Purpose: To define rules for the development, implementation and

  • peration of a pan European balancing market.

Status: Initial draft produced and stakeholder discussions ongoing. Contents:

  • The Electricity Balancing System
  • Procurement of Balancing Services
  • Use, Allocation & Reservation of Cross Zonal Capacity for

Balancing Reserves

  • Settlement
  • Balancing Algorithm Development
  • Reporting
  • Targets & Transitional Arrangements

Links to other codes/ areas

  • LFCR – Strong link with LFCR

setting rules for the volume of reserves to be procured & BAL creating rules to procure them.

  • CACM – Overlap with capacity

calculation and links to intraday markets (which close before balancing opens).

  • RfG/DCC – Important that

connection rules are reflected in products available on balancing markets.

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SLIDE 19
  • Activation Optimisation Function (TSO-TSO Model)
  • Coordinated Balancing Area
  • Must work for Central Dispatch Systems

Key Concepts & Considerations

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SLIDE 20

Activation Optimisation Function (including Common Merit Order list)

Activation s

TSO A

Commerci al information Individual restrictions

Balancing Services Providers Transmission System Operators Function per Coordinated Balancing Area

TSO-TSO Model example:

TSO B TSO C

General restrictions

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SLIDE 21

Concept of a Coordinated Balancing Area

TSOs are obliged to cooperate in a so called Coordinated Balancing Area (CoBA) with one or more TSOs

Each CoBA includes the exchange of one (or more) Standard Product(s)

Flexibility on the way to reach the FWGL targets is ensured by not detailing which cooperation is to be done with which TSO

Sharing and exchange of Balancing Reserves is not mandatory, but possible

CoBAs for Balancing Reserves can be smaller than those for Balancing Energy (if established)

Functions are performing central tasks  additional flexibility, as Code does not preclude who exercises these functions

Coordinated Balancing Area

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SLIDE 22

Coordinated Balancing Area TSO 1 TSO 4 TSO 2 TSO 3

widen cooperation

Coordinated Balancing Areas: Promoting Integration & Flexibility

Concept allows for early cooperation due to its flexibility Integration of CoBAs allows for reaching the FWGL targets Obligation for cooperation in CoBAs fosters integration t

Coordinated Balancing Area TSO y TSO x Coordinated Balancing Area TSO z cooperate Coordinated Balancing Area

merge

Coordinated Balancing Area

merge

Coordinated Balancing Area = Target

form form form

Coordinated Balancing Area

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SLIDE 23

General Process Overview

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SLIDE 24

More Information

https://www.entsoe.eu/major-projects/network-code-development/electricity- balancing/ Electricity Balancing Network Code Version 1.14 on website (20th Feb 2013) A public stakeholder workshop will be held in Brussels on Tuesday 7th May 2013, 09:45 to 17:00 , which will jointly address the Network Code on Load Frequency Control and Reserves and the Network Code on Electricity Balancing. Public consultation – Mid Summer 2013 (dates to be confirmed)

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SLIDE 25