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Scheme of the Algorithm for the Acceptance and Settlement of Bids in the TSO-TSO Model of AT-BE-CH-DE-FR-NL.

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Presentation on theme: "Scheme of the Algorithm for the Acceptance and Settlement of Bids in the TSO-TSO Model of AT-BE-CH-DE-FR-NL."— Presentation transcript:

1 Scheme of the Algorithm for the Acceptance and Settlement of Bids in the TSO-TSO Model of AT-BE-CH-DE-FR-NL

2 Σ Demands (AT, BE, CH, DE, FR & NL)
Common Merit Order EUR/MW MW Common FCR Demand = Σ Demands (AT, BE, CH, DE, FR & NL) Bid from AT Bid from CH Bid from DE Bid from BE Bid from NL Bid from FR Total Procured Volume In normal operation, c= Total Procured Volume Bids are (partially) awarded in the Common Merit Order list, based on their offered capacity price. 2

3 Σ Demands (AT, BE, CH, DE, FR & NL)
Common Merit Order EUR/MW MW Indivisible Bid Common FCR Demand = Σ Demands (AT, BE, CH, DE, FR & NL) Bid from AT Bid from CH Bid from DE Bid from BE Bid from NL Bid from FR Total Procured Volume If it proves to deliver the economic optimum, a larger volume than the Common FCR Demand can be procured, due to indivisible bids.  OVERPROCUREMENT 3

4 Σ Demands (AT, DK, DE, NL, CH)
Common Merit Order EUR/MW MW Indivisible Bid Common FCR Demand = Σ Demands (AT, DK, DE, NL, CH) Bid from AT Bid from CH Bid from DE Bid from BE Bid from NL Bid from FR Total Procured Volume The acceptance of an indivisible bid must never prevent the acceptance of a cheaper bid. Per specification, the algorithm will never calculate such a result. All fully accepted divisible bids of a country receive a marginal price equal or higher than the offered price, all partially accepted indivisible bids of a country receive a marginal price equal to the offered price. 4

5 Calculation of marginal prices
After, 01/07/2019, all bids in a country will be rewarded with the marginal price. In case, no import- and export limits are hit in the whole cooperation, there will be one cross border marginal price (the price of the most expensive awarded bid in the cooperation) that applies for all countries. In case, a country hits an import- or export limit, this country will have a local marginal price (the price of the most expensive awarded bid in this country) that applies for this country. 61 605 527 181 158 368 100 66 111 56 FCR cooperation FR CH DE NL BE 46 42 77 423 Values for 2019. Import- and export limits are set according to system security criteria according to SOGL and limit FCR exchange.

6 Calculation of marginal prices
EUR/MW MW Bid from AT Bid from CH Bid from DE Bid from BE Bid from NL Bid from FR Total Procured Volume Cross border marginal price Local marginal price (CH) If there are no import and export limits hit, one cross border marginal price will be calculated. In this example, Switzerland hits the export limit and the local marginal price for CH is calculated based on the most expensive awarded Swiss bid. 6

7 No more decoupling due to market reasons
After, 01/07/2019, decoupling due to market reasons can no longer occur as there is a harmonised bid structure in the new market design. All efforts are undertaken to calculate common results for the whole FCR Cooperation region AT-BE-CH-DE-FR-NL

8 OVERPROCUREMENT and SHORTFALL situations

9 Σ Demands (AT, BE, CH, DE, FR & NL)
Overprocurement EUR/MW MW Indivisible Bid Common FCR Demand = Σ Demands (AT, BE, CH, DE, FR & NL) Bid from AT Bid from CH Bid from DE Bid from BE Bid from NL Bid from FR Total Procured Volume Overprocurement can take place if the last awarded bid is an indivisible bid. In this case, the Total Procured Volume may be larger than the Common FCR Demand. 9

10 Shortfall Situation (Illustration with 4 TSOs)
Pooling of local surpluses In case of an overall shortfall (Common FCR Demand cannot be reached), the offered volumes stay initially with the connecting TSO. If local surpluses exist, they are pooled and distributed to the TSOs how have shortfalls, based on their original share of the Common FCR Demand. Remaining missing volumes have to be procured locally. 10


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