European Market Design Working Group April 3rd 2012 Summary Feedback for Users’ Group of May 25th 2012
25.05.2012
Discussed Items 1. Status update on Intraday Cross-Border on NL-NO border 2. Status update on the CACM Network Code 3. Status update on NWE Day Ahead and Intraday projects 4. Status update on CWE Flow Based project
Capacity Allocation & Congestion Management Network Code – process overview Principles of Network Code explained to EMD WG Members. CACM NC will set out : the methods for allocating capacity in day-ahead and intra-day timescales, and the method for capacity calculation across the different zones. These rules will provide the basis (European law) for the implementation of a single energy market across Europe. Process July 29th 2011, ACER had released its “Framework Guidelines on Capacity Allocation and Congestion Management for Electricity” March 23rd, ENTSO-E launched public consultation on the Network Code for CACM As part the web based public consultation, ENTSO-E issued a supporting document & FAQ explaining the rationale for decisions. May 7th: 1st public workshop organized by ENTSO-E Stakeholders have two months, until 23 May to provide comments and feedback. ENTSO-E’s assessment of all comments, as well as the final code submitted to ACER, will be published by the end of September 2012.
Capacity Allocation & Congestion Management Network Code – scope Framework Guidelines on
Balancing released on 24/4
Capacity Allocation & Congestion Management Network Code – Capacity Calculation
Individual grid models prepared by each System Operator will be merged into a single European or Common Grid Model. Capacity calculation shall be done at least on a regional basis, with target to merge regions Validation or calculation results is performed on System Operator level Network Code allows using Flow Based (FB) or Coordinated NTC method for DA & ID
Capacity Allocation & Congestion Management Network Code – DAM process/functional approach
Capacity Allocation & Congestion Management Network Code – IDM process/functional approach
NWE DA project – status update
PCR Agreements (contractual arrangements between PXs) ready to be signed
joint TSO/PX APCA ready to be signed : sets forth the rights and obligations between PXs & TSOs regarding cooperation, project governance and organisation, task division, deliverables, budget, funding, cost sharing & recovery for both Design and Implementation Phase of NWE Market Coupling project
Technical architecture : Technical solution (“Price Matcher Broker”-system) provider selected and development agreements ready to be signed.
PXs have defined TSO algorithm requirements (have been validated by TSO)
joint PX/TSO project organization staffed
Target go live: end 2012
NWE ID project – status update
MoU between Europex - entso-e sets the high-level principles of the design of the ID solution, both Interim and Enduring
The PX-PX Cooperation agreement sets the terms of cooperation between the Exchanges for the development and implementation of the Cross Border Intraday SOB/CMM solution based on ELBAS-like system With these steps, PXs commit to pool ID liquidity into a single SOB
Technical gap analysis between Interim Solution requirements and ELBAS features performed. Outcome appears more challenging than expected. Therefore…
Phased development of ELBAS-like system is required to ensure robustness and a timely implementation. Further discussion between PXs and TSOs ongoing on - Technical readiness of ELBAS-like SOB/CMM by end of 2012 - Scoping of requirements (PX, TSO, performance and trading related), - roll-out of Interim Solution via local implementation projects in FR-BE, NL-DE, DE-DK, FR-DE and NL-UK
NWE ID - Local Project Status
Status update on CWE Flow Based project
CWE TSOs and PXs reconfirm the target Flow Based GO LIVE in Summer 2013, exact date is subject to the 2nd forum in March/April 2013, CWE FB project progress, other projects (NWE) and CWE NRA’s and MPs feedback.
The initial start of the internal parallel run has shifted from Jan 2012 to March 2012 for the following reasons:
-
- the combined methodological and organizational complexity of the FB method lead to a longer experimental phase, the winter period was not favorable for knowledge transfer from FB experts to operators due to heavy workload.
A Forum and a Public Consultation are still scheduled this year and will take place before the start of the external parallel run (Sep 2012).
In March / April 2013 a second forum will be organized based on 6 months experience and results of external // run (including part 2 daily results).
CWE FB planning update 2012
2013 NWE GO live window
IT systems available
Internal parallel run
External parallel run Part 1 – weekly publication
GO Live
Part 2 – daily publication
window Forum 1 ⁽*⁾
Forum 2 ⁽*⁾
preparation
preparation
Forum 1
Forum 2
Public Flow Based User Group meetings
REGs approval
Consultation ⁽*⁾
Prerequisite for external
Prerequisite for external
Prerequisite for GO Live:
parallel run part 1 (weekly
parallel run part 2 (daily
•REGs approval
publication):
publication):
•MPs acceptance
•advanced FB Process V2
•TSOs industrialized tool
•Manage dependency with other projects such as
(*)The exact content of the Fora and the Public Consultation still need to be fine tuned; following MP feedback last
NWE
PLEF timing&length consultation is also being reviewed d by project
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External Parallel Run As from start external // run simulation results of FB Market Coupling will be published expost, first on a weekly basis, than on a daily basis afterwards based on: FB parameters produced in parallel to ATC by TSOs. Real order books of the operational ATC market coupling. Published data: FB parameters will be publicly available1. Simulated FB plain MC and FB bilateral intuitive MC net positions and clearing prices accessible to all. Publication platforms: FB parameters: CASC website or “Utility Tool” can be demonstrated at next EMD WG FB parameters, clearing prices, net positions: PX FTP server. A common CWE website is under development for the publication of all operational data (ATC, and FB later on)
1Anonymous
25.05.2012
non-redundant FB constraints, represented by their PTDF factors and RAM (Remaining Available Margin)
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Model update CWE Flow Based
Intuitiveness
If FB intuitive is chosen over plain FB, bilateral intuitiveness is preferred to Source-to-sink intuitiveness: -
Source-to-sink intuitiveness is more difficult to understand than bilateral intuitiveness.
Bilateral intuitiveness is more robust than source-to-sink intuitiveness to the extension of the geographic scope of flow-based allocation. -
At the CWE level, the impact on the welfare is very low.
Therefore source-to-sink intuitive MC will not be simulated during the parallel run.
Hybrid Coupling
When CWE FB will go live, there will not be a single FB capacity calculation process with neighbouring regions. Two methods have been studied: “standard ” and “advanced” hybrid coupling. The CWE project plans to start CWE FB with standard hybrid coupling as -
no delay on implementation needed
-
current methodology interconnectors to/from CWE to other areas/region’s is maintained
On both topics, a more detailed presentation will be given at the next EMD WG
25.05.2012
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