TERRE Industry Day Introducing the TERRE product to the GB market - - PowerPoint PPT Presentation

TERRE Industry Day

16 January 2018 ELEXON & National Grid Introducing the TERRE product to the GB market Public

Health & Safety

2

Agenda & event outcomes

■ To gain a high level understanding of the TERRE balancing product to be implemented in the GB market arrangements ■ To have the opportunity to ask questions about TERRE to the GB TERRE project teams from ELEXON and National Grid

Agenda item Time Presenter

Registration and coffee 09:30

1.

Introduction and housekeeping 10:00 Elliott Harper (ELEXON)

2.

Welcome 10:05 Mark Bygraves (ELEXON)

3.

Introduction to Project TERRE 10:10 Sophie Tilley (National Grid), Elliott Harper (ELEXON)

4.

The detail of the GB solution 10:40 Bernie Dolan (National Grid), Matt Roper (ELEXON) Break 11:25

5.

The detail of the GB solution 11:40 Bernie Dolan (National Grid), Matt Roper (ELEXON) Lunch 12:45

6.

The detail of the GB solution 13:30 Bernie Dolan (National Grid), Matt Roper (ELEXON)

7.

The P344 and GC0097 Industry Consultations 13:45 Sophie Tilley (National Grid), Elliott Harper (ELEXON)

8.

Implementation timescales 14:00 Elliott Harper (ELEXON), Sophie Tilley (National Grid) Break 14:20

9.

Question and Answer session with the GB Project TERRE teams 14:30 All Close 16:00

CEO Welcome

Mark Bygraves

Introduction to Project TERRE

Sophie Tilley – National Grid Elliott Harper - ELEXON

Background - Electricity Balancing Guideline Project TERRE industry day: Project TERRE

6

Pan-EU Balancing Energy Market

• Development of pan-EU platforms

for the exchange of standard balancing energy products

• 6 year implementation period
• Replacement Reserves (RR)
• Manual Frequency Restoration

Reserves (mFRR)

• Specific products retained nationally

Harmonisation of Market Design & Settlement

• Harmonised Gate Closure Time for

standard products

• Harmonisation of ISP at Synchronous Area

level

• Harmonisation of imbalance arrangements

(preference for single imbalance pricing)

• Harmonisation of reserve procurement

arrangements

Cross Zonal Capacity Reservation (CZC)

• Opens the possibility for TSOs to

reserve XB capacity for the exchange of balancing energy

• Co optimisation with market

timeframes

• TSOs to develop detailed

methodologies

European Balancing Platforms

European Implementation Projects

7

• TSO-TSO Model
• Marginal Pricing
• RR Product
• Schedule Activation
• 30min Full Activation Time
• 15min Blocks
• One auction per hour
• HVDC losses taken into account
• Congestion rents generated

Design

• 10 full members (GB, France, Italy, Portugal, Spain, Switzerland, Czech

Republic, Romania, Poland, Hungary)

• More observers in process of joining
• RFP underway
• 1st NRA approval Sept 16
• 2nd Consultation held summer 2017
• NRA currently assessing 2nd design submission
• Go-live Q3 2019

Current Status

Project TERRE industry day: Project TERRE

What does TERRE mean for GB?

8

• New post gate-closure time

balancing auction (similar to existing day ahead arrangements)

• Additional process for submitting
• ffers to TERRE in line with

Balancing Mechanism processes.

• SO will have an additional tool to

conduct coarse energy balancing actions etc using 15 min blocks of energy

• Access to additional flexibility such

as “non-BM” units and across borders for energy balancing.

• New international market for GB

market participants to compete in.

• Introduction of new pay-as-clear

pricing approach (in parallel with existing arrangements)

• Removal of barriers to entry for

“non-BM participants” and an increase in price formation

• Estimated reduction in balancing

costs of €13 million for GB

• Currency exchange required:

Operationally Commercially

How big is TERRE and how will it fit into our strategy?

9

 National Grid conducted some analysis to understand the below questions:  How much could we use TERRE?  Use to stand down STOR earlier – 164MWh per day (7MW average)  Coarse energy balancing – 1.4GWh per day (60MW average)  Controlling I/C flows – 1.4GWh per day (60MW average)  Total yearly volume 1.10TWh out of 4.42TWh total actions – 25% of needs  What sort of volumes could be offered into TERRE by the GB market?  Initial analysis has suggested that we could see up to 3.8GW of volume

• ffered into TERRE from GB market participants

Project TERRE industry day: Project TERRE

Who is ELEXON and what do we do?

■ Administer the Balancing and Settlement Code (BSC) ■ Manage imbalance Settlement arrangements and payments ■ Settle payments for actions under the Balancing Mechanism (BM) What else does ELEXON do? ■ Training and support for BSC Parties ■ Ensures compliance to the BSC through auditing and a party performance framework ■ Manages review and implementation of changes to existing GB BSC regulation

GB implementation of the TERRE product overview (1/2)

■ National Grid and ELEXON working together to deliver TERRE – National Grid: the Grid Code – ELEXON: the Balancing and Settlement Code ■ Changes required to both Codes in order to implement the necessary arrangements to facilitate the TERRE balancing product ■ BSC: P344 ‘Project TERRE implementation into GB market arrangements’ ■ Grid Code: GC0097 ‘Grid Code Processes Supporting TERRE’ ■ Due to interdependencies between the Codes for TERRE, ELEXON and National Grid have facilitated cross-Code working – Working together utilising internal and industry resource to deliver an aligned, efficient TERRE balancing product to the market

GB implementation of the TERRE product overview (2/2)

■ Both Codes have a similar structure of change process to implement TERRE:

Panel final recommendations Proposal to amend current Code arrangements Development of solution by Industry Workgroup Industry Consultation on solution Initial Panel recommendations Industry Consultation on initial Panel recommendations Authority (Ofgem) decision on changes Development and testing

• f systems to deliver the

TERRE product Implementation (go-live)

Joint European Stakeholder Group (JESG)

■ An information source for EU legislation impacting the GB market – JESG weekly newsletter ■ Discussion forum for EU impacts, much wider than TERRE – JESG monthly meeting ■ For more information, please contact europeancodes.electricity@nationalgrid.com

The detail of the GB solution

Matt Roper – ELEXON Bernie Dolan – National Grid

End to End Process

15

Registration Pre- qualification

Replacement Reserves E2E Process

Data Submission Dispatch/ Delivery Product Settlement Imbalance Settlement

Overall End to End Process TERRE Industry Day

• Proposed by National Grid
• Work Group has been meeting

since summer 2016

• Initial consultation held Feb 17
• Joint working since July 2017
• Proposed by National Grid
• Work Group has been meeting

since Jan 2017

• Joint working since July 2017

BSC Mod - P344 Grid Code Mod - GC0097

Reporting

Introduction

16

Who can participate in TERRE? What is an Independent Aggregator? Market Entry Process What is a Secondary BM Unit? New BSC Party Comparison

Registration Pre- qualification Data Submission Dispatch/ Delivery Product Settlement Imbalance Settlement Reporting

Who Can Participate in TERRE?

T_NAME-1 E_NAME-1

M

2__ANAME001

∑M M

M M M M

Supplier Additional BM Unit Generator CVA BM Unit Trading Party Embedded BM Unit

Who Can Participate in TERRE?

T_NAME-1 E_NAME-1

M

2__ANAME001

∑M M

M M M M

Supplier Additional BM Unit Generator CVA BM Unit Trading Party Embedded BM Unit However, the European Electricity Balancing Guidelines (EB GL) requires that TSO’s facilitate demand response participation in TERRE, including independent aggregation facilities and energy storage

Who Can Participate in TERRE?

T_NAME-1 E_NAME-1

M

2__ANAME001

∑M M

M M M M

Supplier Additional BM Unit Generator CVA BM Unit Trading Party Embedded BM Unit Ofgem defines Independent Aggregators as parties who bundle changes in consumer’s loads or distributed generation output for sale in organised markets and who do not simultaneously supply the customer with energy

What is an Independent Aggregator?

20

Supplier

M M M M M M M M M

Generator

£ £

What is an Independent Aggregator?

21

Supplier

M M M M M M M M M

Generator

£ £ Balancing Services

M

What is an Independent Aggregator?

22

Supplier

M M M M M M M M

Generator

£ £ Balancing Services

M M M

[ ]

£

M

What is an Independent Aggregator?

23

Supplier

M M M M M M M M

Generator

£ £ Balancing Services

M M M

[ ]

Independent Aggregator

M M M M M

[ ]

Balancing Services Flexibility

Virtual Lead Party Comparison

24

Energy Accounts (P/C)

Existing BSC Party

Trading party

Virtual Balancing Account

Virtual Lead Party

Non-Trading Party

Primary BM Units Secondary BM Units ECVN or MRVN Base Monthly Charge Funding Share Calculated No ECVN or MVRN VLP Base Monthly Charge No Funding Share Calculated Reduced Credit Requirements Full Credit Requirements

Who Can Participate in TERRE?

T_NAME-1 E_NAME-1 V_NAME-1

M

2__ANAME001

∑M M ∑M

M M M M M M M M

Supplier Additional BM Unit Generator CVA BM Unit Trading Party Embedded BM Unit Virtual Lead Party Secondary BM Unit

What is a Secondary BM Unit?

26

■ Allows the association of MSIDs to a BM Unit for the purposes of offering Balancing Services only, i.e. – Lead Party of a Secondary BM Unit are not responsible for consumption at those Meter Points – Metered volumes not used to calculate Imbalance Positions – Metered volumes will be used to calculate Non-Delivery volumes ■ Secondary BM Units requirements : – Half Hourly SVA MSIDs only – MSIDs are in the same GSP Group – MSID can only be in one Secondary BM Unit at any time – Secondary BM Unit Monthly Charge

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Set up Authorised Signatories Ascension to the BSC Qualification Testing Order Comms Lines * Lodge Credit Cover Register Party Role Go Live Register Secondary BM Units

Market Entry Process

* Low / High grade Communications lines are

• ptional and not mandatory

ELEXON has established a dedicated Market Entry Team to

• ffer support and advice to new BSC Parties going through

the process. Parties can contact them on the ELEXON website here

GC0097 / P344 workgroup

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 System Operator Guideline (SOGL) Article 162 describes the process  RR prequalification process

 A potential RR provider shall demonstrate….. that it complies with RR technical minimum requirements … in Article 161

 Within 8 weeks of receiving the formal application the TSO shall confirm that the application is complete (in terms of information required)  If the application is incomplete the RR provider shall provide the additional required information within 4 weeks of the request from the TSO (if the provider does not comply the application is deemed to be withdrawn)  Within 3 months from the confirmation of completeness the TSO shall confirm if the potential RR provider meets the criteria for prequalification  Qualification will be reassessed

 At least once every five years  Where technical requirements or equipment changes

Pre-qualification – SOGL Article 162 TERRE Industry Day

Registration Pre- qualification

GC0097 / P344 workgroup

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 System Operator Guideline (SOGL) Article 161 gives minimum technical requirements

 Shall comply with activation and de-activation according to set point from TSO  Time stamped scheduled active power output for each RR providing unit and group (and each generating module or demand unit of a RR group) with maximum active power >= 1.5MW  Time stamped instantaneous active power output for each RR providing unit and group (and each generating module or demand unit of a RR group) with maximum active power >= 1.5MW  Fulfilment of availability requirements  TSO shall specify RR availability requirements and requirements for control quality  The RR provider will inform the TSO about actual availability or forced outage

Pre-qualification – SOGL Article 161 TERRE Industry Day

Registration Pre- qualification

GC0097 / P344 workgroup

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 At go-live will assume all existing active BMUs pre-qualify (one off exercise)  At go-live will have simple way to say whether an existing BMU wishes to be part of TERRE  Ongoing will treat pre-qualification as separate  Operational metering* – will be down to 1MW to align with the product (*National Grid purposes, Settlement metering also required)  Metering accuracy – 2.5%  How to indicate availability – will use MIL and MEL  Close participation between the TSO and DSO/DNO is vital (and mandated in codes) so detailed registration process will be agreed with DSO/DNOs Pre-qualification – Proposals TERRE Industry Day

Registration Pre- qualification

GC0097 / P344 workgroup

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Data Submission/Dispatch/Delivery - Overview TERRE Industry Day

09:00 30min ISP 1hr GCT 30min ISP 10:30 10:45 11:00 RR Process RR Delivery 09:15 09:30 09:45 10:00 10:15 1hr Cross Zonal Intra Day Gate Closure Time (XZIDGCT) 1hr Cross Zonal Market Time Unit (XZ MTU) 1hr Gate Closure Time (GCT)

09:00 Trading stops in XBID for 10:00-11:00 FPN & BOD Submission for 10:00-10:30 TERRE Data Submission for 10:00-11:00 09:15 TSO needs submitted to TERRE for 10:00-11:00 09:30 FPN & BOD Submission for 10:30-11:00 TERRE results published and activations (RRIs) issued for 10:00-11:00 Wall moves from 10:30 to 11:00

GC0097 / P344 workgroup

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 BSPs submit bids to GB TSO  Must use electronic communication facilities except in exceptional circumstances  Submissions must be submitted before gate closure (9:00 in example)  Data can be submitted up to 5 days in advance (as per current BM submissions)  Expect PN covering time period of bids (same format etc. as now)  Must ensure have Run Up/Run Down rates (same format etc. as now)  Bids should ensure that any acceptance is physically realisable (using linked bids, blocks etc. as specified by Central TERRE Programme)

RR Providers submit data to TSOs TERRE Industry Day

09:00 09:15 09:30 09:45 10:00 10:15

RR Providers submit data to TSOs TSO assess

submission

TSO determine need

LIBRA

TSO issues RRIs TSO sends data TSO receives RRAs BSPs ramp (times depends on rates) BSPs full activation (depends on rates) Data Submission

GC0097 / P344 workgroup

33

 GB TSO will check for manifest errors (e.g. incorrect format)  Must have PN for the period  Bids must not violate Transmission or Distribution constraints  RR Provider has not already accepted a prior commitment (response, sync decisions)  Must not be already providing support to DNO/DSO  Bids will be marked as “restricted” before passing to LIBRA if these conditions are broken

TSO assess submission TERRE Industry Day

09:00 09:15 09:30 09:45 10:00 10:15

RR Providers submit data to TSOs TSO assess

submission

TSO determine need

LIBRA

TSO issues RRIs TSO sends data TSO receives RRAs BSPs ramp (times depends on rates) BSPs full activation (depends on rates) Data Submission

GC0097 / P344 workgroup

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 GBTSO will determine need  Based on demand forecast  Based on reserve and response requirements  Will request an “inelastic” volume  May send in an “elastic” volume based a min/max price  TSO sends data to central platform (LIBRA)

TSO determine need & forward data TERRE Industry Day

09:00 09:15 09:30 09:45 10:00 10:15

RR Providers submit data to TSOs TSO assess

submission

TSO determine need

LIBRA

TSO issues RRIs TSO sends data TSO receives RRAs BSPs ramp (times depends on rates) BSPs full activation (depends on rates) Data Submission

GC0097 / P344 workgroup

35

 Central algorithm (LIBRA) chooses from the submitted bids to match TSO needs  Netting and matching performed by algorithm  Pay as clear price established  LIBRA returns Replacement Reserve Acceptances (RRAs) to the TSOs for each of the BSPs in their control area

LIBRA TERRE Industry Day

09:00 09:15 09:30 09:45 10:00 10:15

RR Providers submit data to TSOs TSO assess

submission

TSO determine need

LIBRA

TSO issues RRIs TSO sends data TSO receives RRAs BSPs ramp (times depends on rates) BSPs full activation (depends on rates) Optimisation

GC0097 / P344 workgroup

36

 GB TSO adds ramps to the MW level deviation “blocks” described in the RRAs  The feasibility of the returned RRAs is checked from the perspective of ramping  Adjustments are made if infeasibility is found  Replacement Reserve Instructions (RRIs) are sent to the BSPs so that the Full Activation Times (FAT) for each 15 minute period is honoured  For the ½ hour after the TERRE delivery period Final Physical Notifications (FPNs) are not available (the “beyond the wall issue”)  Final instructions may be delayed until the FPNs is available but still respecting the 30 minute FAT

TSO issues RRIs TERRE Industry Day

09:00 09:15 09:30 09:45 10:00 10:15

RR Providers submit data to TSOs TSO assess

submission

TSO determine need

LIBRA

TSO issues RRIs TSO sends data TSO receives RRAs BSPs ramp (times depends on rates) BSPs full activation (depends on rates) Dispatch

GC0097 / P344 workgroup

37

 There are reasons why the GB TSO may not follow the RRA  The unit may declare a change in availability (using MIL/MEL)  The GB TSO may have issued a BOA due to interim system issues  Having issued an RRI this will be treated as a Capped Committed Level (CCL) and subsequent Bid Offer Acceptances (BOAs) will be taken from this level

Does RRI always follow RRA/interaction with BM TERRE Industry Day

09:00 09:15 09:30 09:45 10:00 10:15

RR Providers submit data to TSOs TSO assess

submission

TSO determine need

LIBRA

TSO issues RRIs TSO sends data TSO receives RRAs BSPs ramp (times depends on rates) BSPs full activation (depends on rates) Dispatch

TERRE/ BM interactions: BOA before RRI proposed solution

TERRE Industry Day

38

 Actions in the same direction:  The restriction of RRIs will occur when a BOA has been issued if deemed necessary  When a BOA has been issued before an RRI and they are in the same direction and the BOA volume is larger than the RRI, no RRI will be issued  unit to be settled for the RRI volume using the RR Activation with the remaining volume settled at the BOA price (i.e. the red area in the bottom left diagram)  When a BOA has been issued before an RRI and they are in the same direction and the RRI volume is larger than the BOA, a RRI will be issued for the difference (blue area above red area in bottom right diagram).  The RR schedule will be used to ensure that the unit is paid the TERRE clearing price for the blue area and BOA price for the blue area.

Dispatch

TERRE/ BM interactions: BOA before RRI proposed solution

TERRE Industry Day

39

 Actions in opposite directions:  Where a BOA has been issued before an RRI and they are in opposite directions the RRI will not be issued and the unit will continue to follow the instructed BOA output.  Option 1: By automatically unwinding the RRI at the bid/offer price in the BM  Option 2: By automatically unwinding the RRI at the bid/offer price in the BM but capping the unwinding cost at £0  Option 3: By removing any unwinding cost for the RRI  Option 1 was chosen

Dispatch

GC0097 / P344 workgroup

40

 The TERRE product has a maximum Full Activation Time (FAT) of 30 minutes  FAT = preparation time + ramping time  The Central TERRE programme wishes to incentivise product shapes that start to ramp 5 minutes before the RRA and complete 5 minutes into the RRA  This is to reduce imbalance caused by interconnector ramping

RR Providers submit data to TSOs TERRE Industry Day

09:00 09:15 09:30 09:45 10:00 10:15

RR Providers submit data to TSOs TSO assess

submission

TSO determine need

LIBRA

TSO issues RRIs TSO sends data TSO receives RRAs BSPs ramp (times depends on rates) BSPs full activation (depends on rates) Delivery

GC0097 / P344 workgroup

41

Expected shapes of delivery TERRE Industry Day

Delivery

09:30 09:45 10:00 10:15 10:30 10:45

Starts 09:59 / Ends 10:01

09:30 09:45 10:00 10:15 10:30 10:45

Starts 09:35 Ends 10:05

09:30 09:45 10:00 10:15 10:30 10:45

TSO receives RRAs Starts 09:55 Ends 10:05

Ideal Shape Faster Rate Slowest Rate

Introduction

42

What data will Settlement receive? How will a Quarter Hour (QH) RR Acceptance be Paid? How will Non-Delivery work? Will Lead Parties Imbalance Position be affected? How will a QH RR Acceptance volumes be Settled? Will the registered Suppliers Imbalance Position be affected? Will the Imbalance Price Calculation be affected?

Registration Pre- qualification Data Submission Dispatch/ Delivery Product Settlement Imbalance Settlement Reporting

What data will Settlement Receive?

Quarter Hour Interconnector Scheduled Volume Quarter Hour Volume GB Need Met Quarter Hour RR Acceptance Data Balancing Mechanism Data RR Auction Result Data

Details of each successful QH TERRE bid including MW, price and start/end times Details of each Interconnector and the associated TERRE scheduled flow per QH The total volume of GB need met for each QH through the TERRE auction. Details of SBMU FPN, Dynamic Data Set, Bid Offer Data & BOA

What data will Settlement Receive?

Quarter Hour Interconnector Scheduled Volume Quarter Hour Volume GB Need Met Quarter Hour RR Acceptance Data

• RR Cashflow
• RR Deviation Cashflow
• RR Schedule
• Imbalance Price Calculation
• Imbalance Price Calculation
• RR Schedule
• BM Settlement
• Non-delivery calculation

Balancing Mechanism Data How is it used in Settlement?

How will QH RR Acceptances be paid?

Quarter Hour RR Acceptance Data

RR Cashflow RR Deviation Cashflow P344 uses the Quarter Hour RR Acceptance Data to calculate how much a Party should be paid for a successful TERRE bid = RRAViJ * Price £ / MWh TERRE introduces a second cashflow to incentivise delivery of the TERRE Standard Product Shape (TSPS) by applying a Balancing Energy Deviation Price (BEDP) to volumes delivered in addition to / missing from the TSPS

15 min RR Acceptance Period

P344 solution has set BEDP = £0

15 min RR Acceptance Period

How will QH RR Acceptances volumes be Settled?

Why is it needed? ■ National Grid have indicated they will not always issue a full RR Instruction. ■ Settlement needs to account for all TERRE volumes for Non-Delivery purposes. Therefore the SAA will construct an ‘RR Schedule’ for use in settlement to account for the instances where a RR Instruction is not received. ■ The RR Schedule will respect the BM Unit declared Dynamic Data Set (where possible) and align with TSO RR Dispatch Principles (as defined by National Grid) ■ RR Schedules will be treated as Acceptance Data issued 60 min prior to the RR Auction Period and act as baseline for any subsequent Acceptance Data received.

Quarter Hour RR Acceptance Data

RR Schedule

15 min RR Acceptance Period

How will QH RR Acceptances volumes be Settled?

How will the volumes be Settled? ■ The volumes relating to RR Schedules are not included in any cash flow calculations ■ Therefore SAA will need to differentiate and calculate RR Schedule Volumes independently – i.e. an equivalent calculations to those for those used to settle BOAs (Period Accepted Offer Volume and Period Accepted Bid Volume) ■ This will ensure that the volumes for RR Acceptances and BOAs do not mix, – which could result in a BSP being paid twice (once via RR Cashflow and again via BM Cashflow). ■ Note – in the majority of cases settlement will receive RR Instructions from the TSO but will not calculate any associated volumes (as they would be duplicate due to the RR Schedule) will be calculated.

Quarter Hour RR Acceptance Data

RR Schedule

15 min RR Acceptance Period

How will Non-Delivery work?

■ RR Schedule will be treated exactly the same as BOA for calculating Non-Delivered Volumes ■ However the RR Schedule shall not be entered into the pricing stack for the apportionment of Non- Delivered volumes to Accepted Balancing Services Bids / Offers ■ Instead Deemed Standard Product Offer Volumes (priced at the RR Acceptance price) and RR Deviation Volumes (priced at BEDP = £0) shall be entered Expected Meter Volume = FPN + RRAO Compared against Actual Metered Volume

15 min RR Acceptance Period

DSPO @ £50 / MWh BOA1 @ £40 / MWh BOA2 @ £35 / MWh IOD @ £0 / MWh

Will Lead Parties Imbalance Position by adjusted?

Supplier / Trading Party Lead Party Adjustment Yes Adjusted for all RR Schedule volumes RR Accepted Offer / Bid volumes will feed into BM Unit Balancing Service Volumes (QBSij) Yes Only adjusted for any Non-Delivered Volumes VLP will be exposed to imbalance as an incentive to deliver any accepted bids

M M M M

Primary BM Unit Virtual Lead Party Secondary BM Unit

M M M M

Will affected Suppliers Imbalance Position by adjusted?

Virtual Lead Party Secondary BM Unit

M M M M M M M M M M M M M M M M

A Secondary BM Unit can contain SVA Metering Systems registered by many Suppliers in their Primary BM Units

Supplier A

Will affected Suppliers Imbalance Position by adjusted?

Virtual Lead Party Secondary BM Unit

M M M M M M M M M M M M M M M M

Adjustment Calculated Supplier B Supplier C Supplier D

Yes VLP will be obligated to register all MSID Pairs they wish to allocate to a Secondary BM Units centrally with Settlement on the ‘SVA Metering System Balancing Services Register’. VLP will also provide ‘Delivered Volumes’ per MSID Pair so that Settlement can aggregate per Supplier per Secondary BM Unit an appropriate adjustment to applied at the Supplier BM Unit level

YES A Secondary BM Unit can contain SVA Metering Systems registered by many Suppliers in their Primary BM Units

Will the Imbalance Price Calculation be affected?

P344 proposes that the calculation of imbalance prices should include all the physical actions taken on the GB system, but only those taken to meet a GB need should be treated as priced.

QH Volume of GB Need Met QH Interconnector Scheduled Volume ∑ RR Schedule Volumes

QH RR Acceptances will not state whether they are to fulfil a local or foreign need P344 proposes that actions (volumes/prices) are calculated at an aggregate level for each QH.

A g g r e g a t e d

Total Volume of GB Need Met @ £ TCP Aggregated unpriced System Buy / Sell Action @ £ 0

GC0097 / P344 workgroup

53

Publication TERRE Industry Day

Publication/ Reporting

European Level National Level

(BMRS)

• Type of product
• Delivery Period
• Offered Volume
• Activated Volume
• Bid Price
• Paid Price
• Was bid restricted
• Total volumes
• No later than 30

mins after TERRE period

• Bid details
• PNs
• Ramp rates
• RRAs
• RRIs
• Restricted bids
• No later than 30

mins after TERRE period

P344 and GC0097 Industry Consultations

Elliott Harper – ELEXON Sophie Tilley – National Grid

BSC Modifications process

IWA prepared Proposer presents Mod to Panel Panel considers and agrees way forward

Assessment Procedure With Authority Report Phase Initial Written Assessment Modification Raised Decision

Workgroup meeting(s) Impact Assessment (if required) Workgroup meeting(s) Assessment Procedure Consultation Panel considers Assessment Report Workgroup meeting(s) Panel makes initial recommendation Report Phase Consultation Panel considers Modification Report Panel makes final recommendation Authority receives Final Mod Report Authority considers Modification Report Regulatory Impact Assessment Authority Decision 25 Working Day KPI Licensee Direction Notice

56

Project TERRE industry day: Grid Code mod process

Overview of Consultations

■ GC0097 Industry Consultation period: 8 January 2018 – 26 January 2018 ■ P344 Industry Consultation period: 10 January 2018 – 30 January 2018 ■ Consultation documents can be found on the respective Code Modification pages Why are we consulting? ■ Gather industry views on solutions that have been developed ■ Consultations are part of the formal BSC and Grid Code change processes ■ Workgroup considers consultation responses before making its recommendations to the respective Code Panels

P344 Timescales

■ 10 Jan 2018 – 30 Jan 2018: P344 Industry Consultation ■ 7th Feb 2018 – 22 Mar 2018: Workgroup consider consultation and finalise solution ■ 12 Apr 2018: BSC Panel considers Assessment Report ■ 16 Apr 2018 – 4 May 2018: Report Phase Consultation ■ 14 Jun 2018: BSC Panel considers Draft Modification Report ■ 18 Jun 2018 – 31 Jul 18: Authority considers Final Modification Report

Project TERRE industry day: GC0097 Timetable

8th January: Workgroup Consultation issued (Close 26th January) 7th Feb – 22nd March : Workgroups to review consultation responses and consider alternative options 26th April: Submit report to Grid Code Review panel 30th April: Code Admin consultation Report (close date ~ 22nd May 2018). 31st July: Authority decision 5th June: Draft modification report issued to industry and panel (5 working days) 14th June 2018: Final modification report presented to panel 21st June: Panel recommendation vote 26th June: Modification report submitted to the Authority 7th August: Implementation

TERRE Central project timelines and parallel run

Sophie Tilley

61

Project TERRE industry day: Project TERRE timelines

2016 2017 2018 2019

62

Project TERRE industry day: Parallel Run

 The Parallel Run phase will aim to validate the Go-Live of the project and the TSOs participation to the Go-Live.  End-to-End test will be done. Chain tested: BSP-Connecting TSO-LIBRA (all TSOs and all services)-Connecting TSO-BSP/BRP.

 Submission of standard offers  Clearing  Reception of results (Activation orders and Marginal Price)  Offers not activated

 The Parallel duration will be fixed in Q3 2018. It should not exceed 6 months.  Simulation

 Counter Activation  CBA  Settlement Models  Performance

 TSOs intend to develop more on this topic during the workshop which will be scheduled in S2 2018.

P344/GC0097 Implementation timescales

Elliott Harper – ELEXON

P344/GC0097 Implementation Timescales

■ Following Parallel Running, go-live window for the Central TERRE Project will commence ■ TERRE product will be used for live balancing of the Transmission System and payments made through Settlements ■ Implementation date therefore needs to account for this: –Code implementation date expected to be Q2/Q3 2019 –GB go-live date expected to be Q3 2019 ■ Hope to have further information by April 2018 on Central TERRE Project progress –More detail on the GB implementation framework will then become available

Question and Answer Session

Contact details

ELEXON: ■ Elliott Harper – Senior Change Analyst – elliott.harper@elexon.co.uk ■ Matt Roper – Market Architect – matthew.roper@elexon.co.uk National Grid: ■ Sophie Tilley – European Markets Analyst – sophie.tilley@nationalgrid.com ■ Bernie Dolan – EU Codes Development Manager - bernie.dolan@nationalgrid.com