1. Working Group Balancing
Arbeitsstand
Working Group Balancing
UG 25 April 2018

2. Study on separate procurement of FRC and aFRR
mFRR evolutions 2018: state of affairs
ToE: state of affairs
iCaros: state of affairs
ARP contract changes
EU Balancing: state of affairs
elia presentation template / City, / Firstname Lastname

3. Study on separate procurement of FCR and aFRR
Arbeitsstand
Study on separate procurement of FCR and aFRR

4. Study on Separate procurement of FCR and aFRR
Why are we doing this study?
Identify potential points of improvement of the AS market and create equal opportunities for new entrants.
Assess the need for the existing design with a future oriented view.
Comply with Electricity Balancing Guideline related to separate procurement R2 up/down.
Scope of the study?
Analyze the conditions and consequences for:
R1/R2 split & evaluation of the sequences of separated auctions.
Asymmetric procurement of R2 and evaluation of sequence between R2up / R2down.
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5. Preliminary results FCR aFRR
Current
Illiquid FCR & aFRR markets
Interim solution
Target
Mature FCR & aFRR markets
A target solution with full merge with FCR Cooperation and split of R2 products is desired but only when the necessary conditions are there.
A stepwise approach is proposed to arrive to the target solution based on expected market maturity:
Volume availability
Number of participants
Competitive prices
Development of FCR capacity
Development of aFRR capacity
FCR
Regional FCR
Regional FCR
Local FCR
Different steps proposed
aFRR
R2-UP
R2-DOWN
R2-UP
R2-DOWN
The sequence and granularity of the steps are still to be defined.
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6. Next steps of the study
A public consultation is ongoing and will be finalized on 22nd May Everyone is welcome to provide comments.
A workshop is planned on 9th May 2018 to further explain the study and help stakeholders reply to the consultation in the most efficient way.
After the consultation, Elia will process the comments collected and adapt the document in order to give its view on an implementation approach.
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7. Arbeitsstand
mFRR evolutions 2018

8. R3 – Evolution for End of Year 2018 In a nutshell
Activation price and ToE for R3 non-CIPU
Two key objectives
Common merit order activation for mFRR (1) 
Merit Order: move towards simplification and level playing field
2017
1st of Jan 2018
1st of Dec 2018
1. Free bids € €
1. Free bids €
1. Free bids &
R3 Standard
2. R3 Std CIPU € €
(Non) contracted mFRR unlimited # act
2. R3 Std CIPU
3. R3 Std Non CIPU
No €
3. R3 Std Non CIPU
No €
4. R3 Flex CIPU €
4. R3 Flex CIPU €
2. R3 Flex €
Contracted mFRR
limited # act.
5. R3 Flex non CIPU
No €
5. R3 Flex non CIPU
No €
6. ICH
No €
Act. Price and ToE R3 non-CIPU
Merit Order mFRR
Stop ICH
(1) for mFRR energy bids with unlimited number of activation (free bids and R3 Standard). R3 Flex will still be at the end of the merit order 

9. R3 – Evolution for End of Year 2018 Planning
Go Live
R3 ToE
MO mFRR
BAL TFs
Feb.
March
April
May
June
July
August
Sept.
Oct.
Nov.
Dec.
01/12 t
Consult. Balancing Rules
Publication
of IT Tech. Doc.
Design Note: Publication
Design Note:
FB of stakeholders
Enquiries for GFA sign.
18/04
04/05
Signature GFA

10. R3 – Evolution for End of Year 2018 Design Note
Published on 18/04
Objective
Provide stakeholders with a clear view on the functional evolutions that will be released in December for mFRR and all their impacts:
Activation price and ToE for R3 non-CIPU
Common merit order activation for mFRR energy bids with unlimited number of activation (free bids and R3 Standard)

11. Arbeitsstand
ToE: state of affairs

12. Status Transfer of Energy Rules
Elia organized a 2nd formal public consultation
on the Transfer of Energy rules between 26/3 - 9/4.
The amendments made to these Transfer of Energy rules are based on
comments from the 1st public consultation (from 13/11/2017 to 8/12/2017)
adjustments resulting from the decision B (1677) of the CREG implementing Article 19bis, §§ 3 to 5 of the law of 29 April on the organization of the electricity market, to enable Transfer of Energy (bank guarantee, standard price formula, pass through contract, standard clauses)
Elia submitted final version of ToE-rules for approval to CREG on 16/4.
CREG approval expected by mid-May and entry into force ToE for mFRR from non-CIPU (Bidladder) as from June 1st
Link towards the public consultation + consultation report on website
Next step is opening of ToE to reserved mFRR in Q4, facilitated via T/DSO Datahub
T/DSO Datahub development ongoing to facilitate the transfer of ToE-volumes to FSP & Supplier, incl. Pass Through contracts
No volumes available yet despite swift development on demand from market participants

13. iCAROS : state of affairs
Arbeitsstand
iCAROS  : state of affairs    

14. Public Consultation of iCAROS design notes
Consultation period: 11/12/2017 – 15/01/2018
6 responses:
Set of design notes on future coordination for ELIA-connected assets & assets in ELIA-connected CDS:
Edora – Febeg – Ode (‘EFO’)
Restore
Direct Energie (in addition to support of ‘EFO’)
Anode – TeamWise
Febeliec
1 anonymous & confidential contribution

15. General feedback
Concerns on the large scope and complexity of the subject, with respect to both design as implementation trajectory.
Appreciation of Elia’s approach on
- the design notes
- involvement of stakeholder
- expressed intention for pragmatism for the implementation of the new framework.
Overall conclusion of the consultation results:
No fundamental issues identified that require a review of the proposed design for asset coordination and redispatching, but finetuning needed
Stabilize design as input for implementation trajectory
Design still to be validated by the regulatory authorities
Keep in mind that reviews are possible in the future based on experiences with new design

16. Next steps
The results of the public consultation together with an update of the design notes on the coordination of assets are published on the ELIA web site:
Next steps
Finetune proposed design
In collaboration with the DSO set up a design for distribution-connected assets
1st implementation steps:
via the new Federal Grid Code when entering into force
Transition phase for non-CIPU units to assure compliance with SO GL requirements (CIPU units are already compliant)
T&C Outage Planning Agent/Scheduling Agent version 1.0: public consultation late 2018/early 2019
Preparation of implementation trajectory together with stakeholders (operational workshops will be organized)

17. Arbeitsstand
ARP Contract Changes    

18. Changes in the ARP contract
New GB-BE border with go live of Nemo Link Interconnector
New ARP Status “ARP Offshore Interconnector”
ToE + SDR
Import/Export on the BE-GB border
Included specific provisions and procedures for the nominations on the new BE-GB Border
Nominations have to be submitted in the RNP nomination system (similar as for other Interconnectors in Channel Region)
Balancing Obligation for Nemo Link:
Symmetrical set-up: balancing obligation also applicable in GB
Difference between programmed flow and measured flow on the interconnector
As every other ARP, Nemo Link will:
be able to access the local hub or market to restore its imbalance
be charged with regulated imbalance tariff
Transfer of Energy:
ToE for Reserved mFRR for non CIPU units
Strategic Demand Reserve:
Align with approved functioning rules on SDR-baseline for TSO access points (Nomination  X out of Y)
Next steps:
Launch of Public consultation
Submission for regulatory approval
Process for ARP contract:
Implementation of NC Electricity Balancing: ARP contract will evolve into T&C BRP
28/03/2018

19. EU Balancing: state of affairs
Arbeitsstand
EU Balancing: state of affairs

20. European integration of balancing markets
Entry into force of the guideline on Electricity Balancing (EBGL) on December 18th
4 years to integrate the balancing energy markets at European level
Further than integration, a certain level of harmonisation is required and will affect the product definition in Belgium
2018: many proposals will be consulted and several workshops will be organised before or during the consultations
All consultations and workshops will be announced by ENTSO-E and Elia
Actual implementation facilitated by implementation projects and product harmonisation:
IGCC for the European platform for imbalance netting
PICASSO for the European platform to exchange aFRR (R2)
MARI for the European platform to exchange mFRR (R3)
Current and next important milestones:
Consultation on additional requirements for FCR providers within synchronous area continental Europe: until May 3rd
Launch of the consultation on aFRR implementation framework on April 26th (2 months)
Launch of the consultation on mFRR implementation framework expected mid-May (2 months)
Next stakeholder workshop on June 20th and 21st (Brussels)

21. Task Force Implementation of Strategic Reserve
Arbeitsstand
Task Force Implementation of Strategic Reserve
UG 25 April 2018

22. Timeline 2018 (15.02.2018) 2018 2018 Jan Feb Mar Apr May Jun Jul Aug
Possible review of volume by Minister (following Ministerial Decree)
Entry into force Ministerial Decree
1/9/2018
15/1/2018
Contracts signed
Call for Candidates
Deadline Submission offers
CREG advice reasonability prices
15/2/2018
16/4/2018
28/6/2018*
31/10/2018
Call for Tender
Elia report analysis offers
Start Winterperiod
15/3/2018
16/5/2018*
Award Notice
1/11/2018
14/9/2018
2018
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2018
Today
26/3/2018
Request certification SDR Pref
6/4/2018
29/5/2018
17/8/2018
Certification issuing
Checklist Submetering & CDS
Deadline Order Submeter
7/3/2018
16/10/2018
Submission Application
Deadline Submeter Commissioning
15/2/2018
Publication final Functioning Rules & Procedure for Constitution
* Notwithstanding the legal deadline of 31/5/2018, ELIA strives to submit its report to CREG already by 16/05/2018. As a consequence and following the legally stipulated terms, CREG would conclude its advice by 28/06/2018 (in stead of the legal deadline of 12/07/2018).

23. New proposal for the Administrative Imbalance Price
Context
An administrative imbalance price (4.500 €/MWh) is implemented as a fixed value, set above today’s Day-Ahead Market price cap of €/MWh, to have an incentive effect.
The Belgian commitment towards Europe requires another approach as the AIP has to be adapted towards Winter 2018/19 to a value which has to be higher as the intraday price cap , i.e. 9999,99 €/MWh (i.e. current intraday price-cap)
It is therefore proposed to set the AIP at a fixed level of €/MWh.
This value complies with commitment from Belgium towards Europe (higher as the current intraday price cap)
This increases from 4500 €/MWh seriously increases the “incentive effect” wrt day-ahead and will avoid arbitrage
This increase towards €/MWh also ensures an “incentive effect” wrt to the intra-day market
It is proposed to allow balancing market prices rising above the AIP if reserve bids are offered and selected at a price above the AIP (if they reflect the activation cost of this asset).
It is proposed to implement a new bid cap of 13500€, complemented with a dynamic mechanism in which the balancing bid cap may be increased with 1000 EUR/MWh in the event that an activation bid is selected at a value of 80 percent of the balancing market bid cap in place.
Task Force 08/02/2018, Brussels

24. Volume determination 2019-2020: two public consultations are held
Stakeholder comments were taken into account: sufficient duration of consultations is foreseen.
23.04
21.05

25. Main new elements compared to the assessment of winter 2017-18
Flow-Based modelling (impact NEMO and ALEGrO)
Market Response (same methodology, but updated data)
Total Demand growth
Forced outage rates and availabilities
Modelling non-CIPU units

26. Workplan SR Design Winter 2019/20
Topic
Trigger
Planning 1
Potential design changes resulting from E-law amendment
Modification E-Law 
Subject progress and exact wording of the amended E-Law 2 3
Clean-up functioning rules, procedure for constitution and contracts following E-Law amendment
Modification E-Law 4
Application of Transfer of Energy for SDR
Modification E-Law +
Transfer of Energy Rules
Subject to CREG approval on pending ToE rules 6
Improve transparency towards parameters following the Adequacy Study (activation criteria, heat map,…)
Request CREG (Decision FR)
After summer (linked to publication of the volume report). 7
Investigate exceptions to the full exclusion DPs participated or participating in AS
Market Request
Conclude in TF before summer 8
Investigate the revision design tests for SGR (planning and penalties)
Task Force iSR - April 23, 2018