reviewed before the publication of the ACER Balancing Implementation - - PowerPoint PPT Presentation

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reviewed before the publication of the acer
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reviewed before the publication of the ACER Balancing Implementation - - PowerPoint PPT Presentation

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G AS B ALANCING IMPLEMENTATION Balancing systems performance and design, including information provision Network Codes Team, Gas Department D ISCLAIMER All results shown are provisional and may be reviewed before the publication of the ACER

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SLIDE 1

GAS BALANCING IMPLEMENTATION Balancing systems performance and design, including information provision

Network Codes Team, Gas Department

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SLIDE 2

DISCLAIMER

All results shown are provisional and may be reviewed before the publication of the ACER Balancing Implementation Report (2018). The views expressed belong to the authors and do not represent the official view of the Agency, except for those that have been published already by the Agency.

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 3

The Agency’s assessment of Balancing Code implementation

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 4

THE REPORTS OF THE AGENCY

THE FIRST (2016) REPORT,

  • Reviewed 24 covered a wide range of critical design elements of balancing

implementation

  • Proposed to monitor the progress in each country and called for improved

knowledge sharing and dialogue across EU. THE SECOND (2017) REPORT,

  • the Agency developed a Balancing Analytical Framework (BAF) to measure

regime performance - given the local circumstances.

  • enhanced the qualitative assessment review for 26 EU balancing zones.

THE UPCOMING THIRD (2018) REPORT,

  • Extension of the second Report to 5 balancing zones
  • Testing further the analytical framework, with regimes applying special

features like tolerances and linepack service.

The Agency is keen to support the meaningful implementation of the NC.

3

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 5

*NCG

APPLICATION OF THE BAF IN 2017 AND 2018

NCG GRTgaz Nord

Using data GY 15/16 & GY 16/17. 2 reports covered 12 balancing zones:

  • NWE and S GRI
  • SSE GRI
  • DK & UK-GB (in both

reports)

  • 2 transitory regimes;
  • 3 Within-day regimes

(WDOs);

  • 2 zones with Linepack

flexibility;

  • 1 zone with tolerances
  • 2 zones with incentives

H-cal East

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 6

HOW THE BAF MEASURES PERFORMANCE A quantitative analytical framework is essential.

» The Agency’s BAF measures balancing market

functioning by reviewing:

  • TSO’s balancing activity (balancing actions volumes

and prices) – is it residual?

  • NUs’ balancing activity (imbalance volumes and

prices) – how does it evolve?

  • And their combined effects on the system (neutrality –

both TSO and NUs)

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 7

THE BAF OUTCOME IN 2018

The BAF allows to make basic conclusions on how the key balancing design elements work. Preliminary findings:

» TSO residual role varies across countries; » Relief from tolerances and LFS could be considered to

provide adequate incentives for NU balancing; NDM forecast accuracy has an impact on NU balancing activity;

» Small adjustment to be sufficient, but not excessive; » Neutrality per unit of market volume is low and

comparable across selected zones.

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 8

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

TSOS’ BALANCING ACTIONS, GY 16/17

0.8 11.0 0.2 0.3 2.0 0.2 1.2 4.8 0.2 0.4 1.1 0.1 1.53 2.92 1.37 5.43 1.05 0.31 10 12 14 16 18 20 22 0.0% 0.5% 1.0% 1.5% 2.0%

PL H-cal IT CZ HU UK - GB DK

EUR/MWh % entry volumes

Buy quantities balancing actions Sell quantities balancing actions Price of Balancing action Buys Price of Balancing action Sells

Buy-Sell spread [EUR/MWh] Absolute volumes [TWh]

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SLIDE 9

TSOS’ BALANCING ACTIONS, GY 16/17 » Residual (<0.5% of entry volumes) activity in relative

terms for all zones

  • IT is the exception (> 1.5%)

» Relative asymmetry of TSOs’ balancing actions quantity

(Buy nearly doubles Sell) for UK, DK, IT

  • The opposite for HU

» Average price spreads are limited (< 2 EUR/MWh)

  • except HU (> 5 EUR/MWh)
  • and IT (>2.5 EUR/MWh)

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 10

NETWORK USERS’ ACTIVITY, GY 16/17

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

2.0 40.9 0.3 2.1

12.0

2.1 2.3 34.7 0.3 2.3

12.0

2.0 1.2 0.8 1.7 0.3 1.1 0.1 10 11 12 13 14 15 16 17 18 19 20 0% 1% 2% 3% 4% 5% 6%

PL IT CZ HU GB - UK DK

EUR/MWh % entry volumes

Short imbalance quantities Long imbalance quantities Short imbalance price Long Imbalance price

Buy-Sell spread [EUR/MWh] Absolute imbalance [TWh]

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NETWORK USERS’ ACTIVITY, GY 16/17 » Low imbalances in PL, HU, GB (<2% of entry volumes)

  • PL: 28% of imbalances within tolerances, shielded from

marginal prices (sell: 15.8 EUR/MWh, buy 20.9 EUR/MWh)

» Very low in CZ (<0.5%), yet

  • Linepack flexibility service and
  • Unused flexibility market

shield additional imbalances accounting for 3.4% of entry volumes

» Higher levels in IT (>8%) and DK (>7%)

  • Possible reasons: information provision on NDM, not

counterbalanced by other design elements?

» Rather symmetric imbalances, with seasonality

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 12

TSOS’ SHARE OF BALANCING ACTIVITY, GY 16/17

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 10 20 30 40 50 60 70 80

PL H-cal IT CZ HU GB - UK DK

TWh

TSO's Balancing Action Quantities Total Imbalance Quantities Share of TSO's action over total balancing activity (right axis)

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SLIDE 13

OVERALL EFFECTS OF BALANCING ACTIVITY

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

The combined effect of NUs and TSOs’ activity can be caught by the neutrality indicator

  • 0.010

0.000 0.010 0.020

PL h-cal IT CZ HU UK - GB DK

EUR/MWh

Net adjusted financial neutrality per unit of market volume (EUR/MWh, GY 6/17)

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SLIDE 14

Information Provision

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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THREE INFORMATION MODELS IN THE BAL NC

» Base case

  • NDM info is min 1 DA + 2 WD forecasts
  • First update before 1 pm (W), 12 (S) UTC on the Gas Day.
  • Second update depends on access to STSPs, accuracy of NDM

forecast, renomination window, first update

» Variant 1:

  • Info on NDM and DM offtakes is based on apportionment
  • f measured flows during the Gas Day
  • For NDM, based on min 2 WD updates
  • Initial allocation/imbalance quantity considered as final.

» Variant 2:

  • NDM info is min 1 DA forecast

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

Irrespective of the selected model, the NRA appoints a forecasting party - TSO, DSO, or third party. The NC also requires TSOs, DSOs and forecasting parties to provide information.

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SLIDE 16

COST-BENEFIT ANALYSIS

.Art. 38: within 2 years from entry into force of the NC, TSOs

have to produce a cost-benefit analysis (to be consulted) on:

» Increasing frequency » Reducing timeline » Improving accuracy

  • f the information provided to NUs, with breakdown among

affected parties.

.Art. 42(3): Forecasting party to publish, every 2 years (at

least), report on the accuracy of the NDM forecast.

» May serve as an input to the CBA

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

NRAs may decide to improve information provision, based on the results.

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SLIDE 17

IMPROVING INFORMATION PROVISION…

.…aims at adequately attributing imbalances to

network users.

» May create system-wide benefits

  • NUs confidence to act in the market may increase

=>NUs more balanced on average/ TSOs more residual;

  • Level playing field for new NUs.

» May create different impact on different parties

  • With better forecast, NUs’ imbalances may improve

(depending on their portfolio).

  • Tolerances or others tools shielding from imbalances

could be reduced.

» Has cost that may be shared among all NUs

  • spread to all (via tariffs, if approved).

ACER-ENTSOG BAL workshop Brussels – 12 June 2018

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SLIDE 18

Thank you for your attention

Thank you for your attention!

www.acer.europa.eu