Implementation of PCR for Day-Ahead Price Coupling in NWE Andrew Claxton NWE Stakeholders’ Workshop 9 December 2012.

Slides:



Advertisements
Similar presentations
Handling of grid losses of HVDC cables in NWE Market Coupling - EMCC proposal for compensation of grid losses – NWE day-ahead meeting, Copenhagen, 22/08/2012.
Advertisements

Draft Cross-regional Roadmap for Day-Ahead Price Coupling NWE Day-ahead price coupling project meeting 15 June 2011.
Cross-regional roadmap for Day-Ahead Market Coupling XXI Florence Forum Florence, 5 December 2011.
4th CSE ERI Stakeholders Group meeting AEEG – European regulatory affairs 15 maggio 2012 Overview of the regional work programme towards 2014.
Day-Ahead Market Coupling Proposal for algorithm approval process 8 th ACER Coordination Group for ERI Brussels, 9 th January 2012.
Draft cross-regional roadmap for Day-Ahead Market Coupling Work in progress, This version: 22 September 2011 updated after 5 th AESAG, 20 September 2011,
Coordinated Market Coupling for GB. 2 Service Provision specified to create a GB Hub with open access to : All GB connected ICs to coordinate XB Capacity.
European Federation of Energy Traders 1 Electricity Regional Initiative Central-South Europe Region 4th Stakeholder Group meeting The Central South Region.
TITRE 28/03/2012 NWE IG meeting – Amsterdam Schiphol NWE day-ahead price coupling – cost issues.
SWE IG Meeting Paris, CRE XBID Overview Supported by.
EuroPEX Decentralized Market Coupling as the preferred cross-border method B. den Ouden, President of Europex APEx Annual Conference 2004 Leipzig, Germany,
Florence Forum Multi Regional Day-Ahead Price Coupling Towards Implementation of the PCG Target Model December 10-11, 2009.
NWE Day-ahead price coupling project Cost Issue 2 nd IG Meeting 26 October APX ENDEX.
Cross-Regional Roadmap for Intraday DRAFT Updated 31/10/2011.
Cross-regional roadmap for Capacity Calculation XXI Florence Forum Florence 5 December 2011.
Update on Transparency Obligations Martin Reisner Junior Adviser, Transparency ENTSOGs Transparency Workshop Brussels – 11 September 2012.
1 Intraday in the CWE region NWE and Bilateral initiatives Common RCC CSE - CWE 28 September 2010.
Action plan covering 2008 activities for the implementation of day-ahead implicit auction in Central-South Europe as a mean to allocate cross border capacity.
Disclaimer Some elements of the following presentation are extracted from documents approved by the 11 CWE Project Parties. However, this presentation.
1 page 1 NWE Intraday - Joint TSO and PX presentation London.
The role of ACER In the Regional Initiatives Steve Gordon Head Of the Gas Department North West Regional Initiatives 2011.
1 page 1 C O U P L E D Joint TSO-PX presentation NWE Day-Ahead Price Coupling IG meeting May 9 th 2012 Copenhagen Joint Presentation from TSOs and PXs.
Intraday conclusions of NWE IG 9 May. Short term way forward (phase 1) PXs and TSOs confirmed commitment to 2012 intraday project based on ELBAS solution.
IFE-CASC long term auctions Project status Implementation Group Meeting - Lisbon,
Adeline Lassource (CRE) Charlotte Ramsay (OFGEM) 10 th FUI SG, London, 11 th March 2011 Progress with market integration: European initiatives and impact.
Progress with coupling FUI and CWE region
SWE Day-ahead market coupling (Pre- and Post-Coupling project) Lisbon, 3 rd December th Implementation Group meeting.
1 page 1 C O U P L E D NWE TSO Day Ahead Project NRA – TSO – PX meeting, 15 June 2011 ENTSO-E Regional Group Northwest Europe C O U P L E D.
1 page 1 C O U P L E D NWE Day-Ahead Project 1 st NWE Stakeholder Workshop London 9 th December 2011 ENTSO-E Regional Group Northwest Europe.
Draft Cross-regional roadmap for Capacity Calculation Still work in progress, for discussion 27 June 2011.
Day-Ahead Market Coupling Algorithm approval coordination NWE IG, Schipol, 28. March 2012.
1 TITRE Update on approval processes for NWE price coupling NWE IG on DA and ID Copenhagen, 9 May 2012.
Directie Toezicht Energie 11 Roadmap GRI NW Robert Spencer, NMa/DTe.
Update on Ofgem’s interconnector policy consultation FUI IG, London, 13 th September.
1 page 1 C O U P L E D Joint TSO-PX presentation NWE Day-Ahead Project Status Update 2 nd IG meeting NRA meeting October 26 th Joint Presentation from.
1 page 1 C O U P L E D Joint TSO-PX presentation NWE Day-Ahead Price Coupling IG meeting March 28 th 2012 Amsterdam Joint Presentation from TSOs and PXs.
Does the Third Package provide the European TSO associations with the tools necessary to find solutions to the European energy challenge ? Pierre BORNARD.
SWE Day- Ahead market coupling 7 April 2014 Implementation Group meeting – Paris.
Draft Cross-regional roadmap for intraday Work in progress, for discussion 13 July 2011.
Status of Implementation of PCR for Day-Ahead Price Coupling Florence Forum 5 December 2012.
Draft cross-regional roadmap for Day-Ahead Market Coupling - Work in progress - NWE day-ahead price coupling project IG meeting 26 October 2011.
PCR Status report AESAG, September Supported by:
The Market Coupling Experience in Europe Jean-François CONIL-LACOSTE CEO Powernext SA CEO EPEX Spot SE APEX 2008 Conference Session 1 - Part 3: European.
Brief status on key on-going PCR activities NWE Regulators IG Meeting 28 Mar March 2012.
Continuous Cross-Border Implicit Intraday Trade Status update XXI. Florence Forum Dec 05th, 2011.
Electricity Regional Initiative Central Eastern European Region Market Entry Barriers – Regulators’ View Walter Boltz E-Control CEE Stakeholder Group Meeting.
Cross Border Intraday on the North Italian Borders Introduction Forum Rome, 13 th March 2012.
1 The regulators’ view on the Central West REM: Emphasis on the completion of existing initiatives Presentation for the Mini-Forum 20 June 2006.
Agenda point 2a) Plans for handling of losses on HVDC cables in NWE day-ahead price coupling IG Meeting Copenhagen 19. September 2012.
C O U P L E D NWE Day Ahead Price Coupling Handling of losses in the algorithm IG meeting, December 5 th, 2012, DERA premises, Copenhagen.
Joint ACER-ENTSOG update on implementation of the Balancing NC 26 th Madrid Forum 16 October 2014.
Pamela Taylor, Head of European Strategy, Ofgem Madrid Forum, March 2011 ERGEG’s draft framework guideline for gas balancing.
1 Market coupling Commission de Régulation de l’Electricité et du Gaz Fonctionnement Technique des Marchés September 2010 Common CSE – CWE RCC Meeting.
Electricity Regional Initiative Central- South Region Progress with developing regional electricity markets By: Carlo Crea, Secretary General The Regulatory.
Development and Implementation of a Coordinated Model for Regional and Inter-Regional Congestion Management Development and Implementation of a Coordinated.
ANRE ROMANIAN ENERGY REGULATORY AUTHORITY Regulation of operation and organization of the electricity day-ahead market with the price market coupling mechanism.
Christophe Gence-Creux SG FUI, Paris, 4 th November. Target models and roadmap proposed by the PCG.
1 page 1 C O U P L E D NWE Day Ahead Project Update FUI IG Mtg – London 13 th September 2010 ENTSO-E Regional Group Northwest Europe C O U P L E D.
Joint Proposal for a Day Ahead Market Coupling Initiative between GB and Mainland by National Grid, RTE, ELIA and TENNET   Results of a joint study on.
SWE Day-ahead market coupling (Pre- and Post-Coupling project) Lisbon, 3rd December th Implementation Group meeting.
Status of Implementation of PCR for Day-Ahead Price Coupling
Supported by: PCR Status report AESAG, September
NWE Day-ahead price coupling project Cost Issue
Coordinated Market Coupling for GB
Florence Forum Multi Regional Day-Ahead Price Coupling Towards Implementation of the PCG Target Model December 10-11, 2009.
Context 12 TSOs in North West Europe (NWE) have commenced a project to facilitate a single price coupling across a region covering CWE, Scandinavia and.
Continuous Cross-Border Implicit Intraday Trade Status update
IFA Market Coupling Update
NWE Day-Ahead Price Coupling
Supported by: PCR Status report AESAG, September
Presentation transcript:

Implementation of PCR for Day-Ahead Price Coupling in NWE Andrew Claxton NWE Stakeholders’ Workshop 9 December 2012

22 Current Day-ahead Market Coupling REGIONAL IMPLICIT AUCTIONS CWEPrice coupling AustriaAT price coupled to GE/CWE (no congestion) BritNedGB price coupled to NL/CWE Nordic + EstoniaPrice coupling, also Poland via Swepol ITVCVolume coupling CWE - Nordic Italy - SloveniaPrice coupling MibelPrice coupling Czech - SlovakPrice coupling

33 Price Coupling Overall Process 3 Post Coupling Coupling Pre Coupling TSOs calculate firm DA capacity (including UIOSI of forward rights) PXs receive orders from market parties PXs jointly calculate prices and net import/export positions of each hub Welfare maximisation Price differences where there is congestion* Shipping: Schedule and nominate cross-border flows Settle exports and imports on relevant exchange; any gain (“congestion revenue”) to TSOs PXs nominate and clear local market trades * also if adjustments for losses and flow related charges (e.g., BSUoS) Local/regional European

44 XXI Florence Forum Conclusions The Forum regretted that progress of the NWE-project regarding coupling of day-ahead markets had been slower than initially anticipated. The Forum urged that the NWE project to do its utmost to unblock the situation in order to make swift progress and retain end 2012 for implementation. The Forum requested the NWE day ahead project actively to keep stakeholders in other regions well informed about the progress with the aim of allowing a pan- European solution to evolve. The Forum encourages power exchanges to refine options for implementation of NWE day-ahead market coupling for discussion with TSOs in mid December This would be followed by a single solution in January 2012 for discussion with NRAs, TSOs and the European Commission. ACER offered to act as a facilitator for further progress if needed. PXs are cooperating and already committing important ressources to fulfill the expectations of stakeholders

Price Coupling of Regions (PCR) is a joint PX project focused on the delivery of a common European price coupling solution (with associated algorithms, systems, procedures and inter-PX co-operation arrangements), where this solution can potentially be implemented in a variety of local regulatory/governance settings Philosophy is to build on the existing contractual, regulatory and operational solutions, while establishing the necessary harmonization and governance principles at the European level Solution based on three main principles: –One single algorithm –Decentralized operation –Decentralized governance Implementation can proceed in parallel in different regions in order to ensure rapid European integration. NWE recognised as a lead region (cf. the cross-regional roadmap) Introduction to PCR

66 PCR: Target Coordinated Matching Solution

77 PCR is a key element of the EPC but not the only one! Day-ahead Cross-regional Roadmap

88 Progress report on PCR (1) Design phase started in 2010, now near completion Algorithm (the mathematical solution) 1.Cosmos chosen as PCR starting point to evolve in to the PCR algorithm 2.Good progress on development of PCR Algorithm prototype, able to support all known PCR requiremen ts Decentralised solution design 1.Simplified high-level architecture agreed 2.Procedures progressed (normal and fallback scenarios) 3.Quotes from system providers to develop the “broker/matcher” coupling systems are currently being requested, based on existing PCR specifications Joint PX agreements nearing finalisation: 1.Co-ownership of common assets (i.e. algorithm) 2.Enduring co-operation agreement

99 1. Market and Network features  Order types (e.g. linear/stepwise, blocks, MIC Orders, linked blocks, PUN)  Network modelling (e.g. ATC, Flow-Based, Ramping, Flow- Related Charges and Losses)  Price/Network modelling (e.g. in ATC, price difference only if congestion) 2. Price Calculation Requirements  Welfare Maximization – Price Coupling Algorithm  Curtailment and Indeterminacy Rules  Performance and reproducibility 3. Outputs of Algorithm  Prices and Net Positions  Potential Set of Feasible Flows Main Requirements for PCR Algorithm

1b 2b, 8b TSO IT Systems 7b,10a 11b 12a 12b 2a, 8a,10b 1a 11a 1a 5 PCR Algorithm 4b PCR Matcher operator PX member PX Environment PCR Systems Current PX Systems TSO IT Systems 2b, 8b 7b, 10a 11a PCR Matcher 6a 4a, 6b 5 4b 13a 3c Operator PCR Broker 3a 13b 2a, 8a,10b PCR Shadow Algorithm 3b, 7a, 8c, 9b 11b 1a PCR Broker 3a PX IT System PX Trading System 6b 13a 13b 1a 11a Coordinator PCR Broker 3a,9a PCR Broker operator 1b 11b PX member PCR Matcher operator PCR Algorithm 4b6a 5 4a, 6b PCR Matcher 3c6c 7b, 10a 2b, 8b, PX IT System PX Trading System 2a, 8a,10b TSO IT Systems PX IT System PX Trading System 28/09/201110Confidential - non binding - see notice cover page

1111 Progress Report on PCR (2) Implementation planned to start early 2012, subject to necessary validation/approvals by TSOs/NRAs/ACER Depends on resolution of alternative implementation options 1.Concerning the PCR Matcher/Broker system embedding the algorithm: APX-EDEX/Belpex, OMEL and GME are undertaking a negotiated tender (open to all PXs on an equal basis) requesting quotes for a PCR Matcher/Broker system (responses due week 1, 2012) EPEX and NPS are requesting a quote for the addition of PCR Matcher/Broker system functionality into an already existing system used in production in CWE 2.The PCR parties may put in place suitable temporary de-scoping arrangements of PCR, to avoid any risk of delay in the roadmap milestones (NWE and other implementations). The situation will be reviewed in January, as far as the systems procurement is concerned, when the quotes are received 3.Detailed planning and implementation budget available once implementation approach finalised (January)

1212 Summary The Roadmap targets are demanding and require a coherent and realistic plan with the full support of all involved PXs The PCR parties are fully committed to the PCR complete solution development and implementation, and will do necessary efforts for its success Proposals for the sharing of PCR costs across European regions/countries are also being progressed Clear commitment that the PCR solution will be the day-ahead coordinated matching solution for Europe

1313 Thank you for your attention!