nwe info session
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NWE Info SessionOperational & contractual changes for Dutch wholesale market organization
Agenda• Introduction
• Matthijs Nijpels• General overview of NWE Price Coupling
• Thomas Donders• Operational principles & possible scenarios
• Catherine Fricot• Detailed operational procedures
• Matthijs Nijpels• New Smart Order types & Automatic Order Submission Tool
• Rob Loos• Changes to Market Rules (APX / TenneT)
• Rob Loos & Thomas Donders• Member Testing & Planning to go-live
• Rob Loos• Conclusion
• Gineke van Dijk
2
NWE DAY-AHEAD PRICE COUPLING
General overview
AS IS > TO BE
4
NWE
• Two separate Market Couplings (CWE & Nordic) linked by a volume coupling (ITVC organised by EMCC)
• Sequential calculation approach• No common algorithm applied
• Full coupling with GB• One single price coupling based on a single
calculation• One single common algorithm to allow for a
sound and robust price formation
NWE – Driving European Market Integration
5
NWE DA
It promotes liquidity and
robustness of DA markets
It allows for
optimal usage
of cross-border
capacitiesIt encourages
the harmonization of market rules
It establishes the
necessary
framework to
enable extensions
„NWE is more than the sum of its parts“
NWE – Behind the scenes
6
• 13 Transmission System Operators
• 4 Power Exchanges
• Approx. 50 systems involved
• Approx. 150 interfaces
• 40 serviced interconnectors
• 30 bidding zones
Parties involved
Systems & interfaces
NWE - Interconnectors
IFA
BritNed
NorNed
Kontek
Baltic SwePol
EstLink
FerroSkan
SkagerakKontiscan
DK1-DE
Price Coupling Process
General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities
8
PCR : Price Coupling of Regions
9
Potential integration of losses on DC cables
Activation of losses on a specific interconnector is subject to approval of relevant national NRAs
10
Cable Loss factor foreseen
Comments
IFA (UK-FR) yes Application to Ofgem and CRE. Foreseen for go-live
Britned (UK-NL) yes Application to Ofgem and ACM. Foreseen for go-live
NorNed (NO-NL) yes Application to NVE and ACM. Pending regulatory approval
OPERATIONAL PRINCIPLES & POSSIBLE SCENARIOS
General principles
Price Coupling Process
General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities
12
NWE Business Process
13
CZCs and allocation constraints
submission and integration
Final confirmation of the results
10:30CZCs and Allocation
constraints submitted to PCR
12:00Orderbooks closure
Global Preliminary PX confirmation
12:55Global final confirmationPublication
Trading confirmation
and scheduled exchanges notification
12:55 – 14:00Nominations
PCR process:• CZCs and allocation constraints
process• Orderbook processing• PMB calculation• Preliminary confirmation process
Price coupling results and scheduled
exchanges transfer
Final confirmation
process
PCR Process Timings for NWE Normal process – 55 minutes
14
12:00 OBK GCT
12:00 – 12:10 Check of OBK and sending to PMB
12:10 – 12:27 Calculation
12:28 – 12:41 Preliminary PX validation
12:42 Publication of preliminary results (incl. market clearing price) to the market and in parallel sending of these preliminary results for final confirmation/approval to the TSOs
12:42 – 12:54 Final TSO validation
12:55 Publication of Final Results (incl. market clearing price)Start of Notification Process
Process is delayed
15
Partial Coupling/Full Decoupling Deadline
Target Time
Latest Time to
Start an IC
TIME
Normal Procedure Normal procedures can still apply after target time
Backup procedure can apply before the
target time Backup procedures
Fallback procedures can apply before fallback time
Fallback procedures
Decoupling preparation decoupling
Process delayed – assumptions
Pre-coupling• Deadline to solve incidents with Network Data (CZCs) publication is
11:45 CET
Coupling• Time allowance for technical problem solving up to 55 min• Time allowance for special market procedures such as handling of
curtailment situations or price threshold reached via a second auction used by CWE PXs or the NPS-applied regulated routines that include peak load capacity (production/load) reserves activation.
• Deadline for final Market Results is 13:50 CET
Post-coupling• Final notification deadline of 15:30 in CWE, CWE-GB and CWE-
Nordic interconnectors
16
2nd Auction CWE/ GB48 min
Max. Time /Flexibility to solve technical problems
55min
Second Auction• A Second Auction is triggered in case at least one of the CWE/GB prices
reach or exceed the predefined price thresholds
• The routine consists in • Reopening the PXs order books for 10 minutes to give the Market Participants the
opportunity to modify their bids in order to improve the market situation• Execution of a second calculation with the new Order Data
• The thresholds to trigger a 2nd auction in CWE remain the same:• + 500 EUR/MWh and -150 EUR/MWh
• In GB thresholds will be introduced:• + 500 GBP/MWh and -150 GBP/MWh
• In case the prices still reach the thresholds after the Second Auction calculation, no additional Second Auction will be triggered
17
2nd Auction CWE/ GB48 min
PCR PROCESS TIMINGS for NWE
18
• * This is the maximum time which could be used to solve a technical problem in order to avoid a decoupling. If the technical problem is resolved in less than 55 min than the next processes will start earlier.
• ** the Second Auction in CWE / GB is a single process taking 48 minutes.• *** the Special Procedure for the Nordics is an iterative process which will run the number of times necessary taking into the
13.50 full decoupling deadline when NWE is coupled.
Fallback procedures
19
Partial Coupling/Full Decoupling Deadline
Target Time
Latest Time to
Start an IC
TIME
Normal Procedure Normal procedures can still apply after target time
Backup procedure can apply before the
target time Backup procedures
Fallback procedures can apply before fallback time
Fallback procedures
Decoupling preparation decoupling
Fallback procedures
20
Partial Coupling/Full Decoupling Deadline
Target Time
Latest Time to
Start an IC
TIME
Normal Procedure Normal procedures can still apply after target time
Backup procedure can apply before the
target time Backup procedures
Fallback procedures can apply before fallback time
Fallback procedures
Decoupling preparation decoupling
Full Decoupling of NWE (1)• Internally in CWE and for the CWE – Nordic interconnectors (except Baltic Cable):
• Shadow auctions organized by CASC will be held and results published• The 3 PXs within CWE will reopen the order books (20 min) and perform local DA spot market
calculations without using cross border capacities• The notification deadline of 15.30 is applicable for the notification by market parties of utilization of
Explicit Capacity bought in Shadow Auctions• Fallback for Baltic cable : capacity goes back to the cable owner
• In GB• Shadow auctions organized by RTE/NGIC are applicable for FR/GB border only (IFA interconnector),
this consists of daily explicit auctions • Capacity of virtual interconnector set to zero• The 2 PXs will reopen the order books (APX UK 15 min) and perform local DA spot market calculations
without using cross border capacities• Fallback for BritNed : capacity goes to intraday
• For the Nordic – Baltic area including the link with Poland• Shadow auctions on 3 CWE-Nordic links• Re-opening of NPS order books• Price coupling will be performed by NPS utilizing the cross border capacities within this region
21
Shadow Auctions • Bids submitted through the Shadow Auctions interface at CASC.EU
are default bids :• They are valid for every day of the year, for a specific border, direction and an
hourly period (Volume in MW and a Price in €/MWh)• Participants can update their default bids at any time before the freezing of
the database when Shadow Auctions are run
• Description in “Harmonised Auction Rules for CWE, CSE and CH”
• Possibility to register only for Shadow Auctions, with a ‘lighter’ status: “Participant to Shadow Auctions Only"
• Market Participants need to submit a nomination towards the respective TSOs by the notification deadline of 15.30
22
Full Decoupling scenario
23
CWE : 4 local PX auctions
Nordic-Baltic Market Splitting
Virtual Capacity is set to Zero2 local PX auctions
Shadow Auctions
“Local” matching process
In case of full decoupling the processes are local• Communication in case of fallback is organized locally (different info,
different timings)
CWE TSO investigate flexibility of notification deadline• The CWE TSOs and 50 Hertz have agreed upon a joint target solution for the
deadlines for submitting the different schedules towards the TSOs available as of Go-Live of the Price Coupling in the NWE region
• Taken into account that it is important for the TSOs to receive data of good quality, the TSOs agreed to extend the deadline for submitting generation schedules in the very rare cases of specific fallback situations to a later time than 15:30
• In these extraordinary situations, all CWE TSOs and 50 Hertz will extend the deadline for submitting generation schedules until at least 15:45. Some TSOs can extend this deadline even beyond 15:45 depending on local market rules
• This means that market participants have at least 60 minutes for the submission of generation schedules
24
CWE TSO investigation on flexibility of notification deadline – impact on procedures
25
NotificationProcess45 min
15:30
Crossborder Notification
Process45 min
15:45
Generation Notification
ProcessAt least 60 min
15:30
15:30
Exceptional cases
PCR PROCESS TIMINGS for NWE
26
Full decoupling before OBK GCT (12:00)
27
NotificationProcess60 min
NotificationProcess60 min
Notification
Process60 min
OBK GCT = 12:00
Final Notification deadline =15:30 which applies to:Internal CWE, CWE-GB and CWE-Nordic interconnectors
Publication of prelimi-nary results =12:42
• * This is the maximum time which could be used to solve a technical problem in order to avoid a decoupling. If the technical problem is resolved in less than 55 min than the next processes will start earlier.
• ** the Second Auction in CWE / GB is a single process taking 48 minutes.• *** the Special Procedure for the Nordics is an iterative process which will run the number of times necessary taking into the
13.50 full decoupling deadline when NWE is coupled.
Case X10 Case X12Case X11Full decouplingbefore 12.00
X10 + delay
X10 +2nd Auction
CWE
Full decoupling42 min
Full decoupling42 min
Full decoupling42 min
Max. Time /Flexibility to
solve technical problems55min*
2nd Auction CWE/ GB
28 min**
Partial (De)coupling within NWE• Any scenario where one or more bidding areas and/or interconnectors are
temporary not participating in NWE Market Coupling while the remaining bidding areas/interconnectors still participate in NWE Market Coupling
• The CZCs for the decoupled borders / interconnectors will be allocated via the fall back solution for these temporary not participating borders / interconnectors
• NWE parties will try to couple as many borders / interconnectors as possible
• Partial coupling is triggered• during the pre-coupling process, at the latest at 11:45• during the coupling process, at the latest at 12:40
28
Partial Coupling ScenarioExample : CWE+GB <> Nordic
29
PCR coupling
Nordic-Baltic: Market Splitting
Shadow Auctions
“Local” matching process
PCR matching process
Adobe Acrobat Document
Partial Coupling ScenarioExample : NorNed
30
PCR coupling
Shadow Auctions
PCR matching process
Partial Coupling ScenarioExample : EPEX OBK missing
31
PCR coupling
Shadow Auctions
PCR matching process
“Local” matching process
Partial Coupling ScenarioExample: APX NL/Belpex OBK missing
32
PCR coupling
Shadow Auctions
“Local” matching process
33
PCR coupling
Shadow Auctions
PCR matching process
Partial Coupling ScenarioExample : no CWE CZCs in PMB
Decoupling scenarios
34
Where’s the problem What decouples? Resulting configuration
APX/Belpex CWE internal borders (FR-DE, FR-BE, BE-NL, NL-DE) and NorNed and BritNed and GB-GB
NL, BE and APX UK markets isolated
EPEX CWE internal borders and IFA, DK-DE, DE-SE
DE, FR, and BE markets isolated
NPS (Nordic) Nordic area, NorNed, DE-DK, DE-SE
Nordic markets isolated (but internally coupled)
N2EX GB-GB, IFA N2EX market isolatedCWE TSOs CWE internal borders BE market isolatedBritNed BritNed No market isolatedNorNed NorNed No market isolatedAny other individual interconnector
That interconnector No market isolated
PMB, or problem after 12:20
Entire region All markets isolated (but Nordic markets internally coupled)
34
• * This is the maximum time which could be used to solve a technical problem in order to avoid a decoupling. If the technical problem is resolved in less than 55 min than the next processes will start earlier.
• ** the Second Auction in CWE / GB is a single process taking 48 minutes.• *** the Special Procedure for the Nordics is an iterative process which will run the number of times necessary taking into the
13.50 full decoupling deadline when NWE is coupled.
Partial Coupling before OBK GCT (12:00)
35
• * In case X6b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are still coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but instead NPS can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted (updated) by NPS and market parties to relevant TSOs until about 1 hour before delivery hour.
Partial Coupling before OBK GCT (12:00)
Partial coupling followed by Full Decoupling
+ Special Routine Nordics
Case X7
Publication of preliminary results =12:42
Case X9a
Partial coupling after OBK GCT (12:00)
37
Case X9bCase X8
38
DETAILED OPERATIONAL PROCEDURES
Timings and messages
NORMAL NWE/PCR PROCESS
Normal NWE/PCR process
42
10:30 12:00
CZC publication
MP’s introduce orders
12:55
Coupling process
PX GCTNormal timing 14:00
Notifications to TenneT
12:42
Preliminary result publication
Final results
* All timings are C.E.T
Normal process timeline• CZC published at 10:30 on CASC website• PX gate closure time at 12:00
• Publication of preliminary market results 12:42 • Publication of final market results 12:55
Notification deadline
Belgium France Germany The Netherlands
Cross-Border 14:30 14:30 14:30 14:00 (E-program)
Local/hub Hub 1: 14:00Hub 2: 14:30
Ex post 14:30 14:00 (E-program)
Consumption 14:30 n/a 14:30 14:45 (T-program)
Generation 15:00 16:30 14:30 14:45 (T-program)
CASE 1 PROCESS DELAYED WITH MAX TIMING
Case 1 Process delayed with max timing
10:30 12:00 12:55
Coupling process / Backup procedures
PX GCTNormal timing
15:00
12:42
Preliminary result publication
Exceptional timing
13:38 13:50
Technical problem
Message to MP
MP’s introduce orders
CZC publication
* All timings are C.E.T
13:00
Final results
45
Notifications to TenneT
13:20
Case 1 Process delayed with max timing
• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Delay in Market Coupling results
Timing Message Additional actions for
MPs
Market results
Publication deadline
Local hub Notification Cross border notification deadline
12:42 [ExC_02]: Delay in Market Coupling Results publication
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 14:00 14:00
13:00
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 14:30 14:30
13:20
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 15:00 15:00
Messages
PX : [ExC_02] TSO
47
CASE 2A SECOND AUCTION
Case 2a second auction
10:30 12:00
CZC publication
MP’s introduce orders
Coupling process
PX GCTNormal timing
Notifications to TenneT
Preliminary result publication
* All timings are C.E.T
Exceptional timing
>12:42 >12:55 15:00
12:30
Message to MP
14:00
13:00 <13:50
Final results
Case 2a second auction
• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Threshold reached -€150 or €500 / -£150 or + £500• Second Auction triggered (re-opening of Order Books)
Timing* Message Additional actions for
MPs
Market results Publication
deadline
Local hub Notification
Cross border notification deadline
±12:30[ExC_01]: Thresholds reached - Reopening of the order books
PX: OBK open for 10 minutes after message 13:50 n/a n/a
13:00
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
CASC: invitation to update bids in the Shad ow Auction system before 13:40
13:50 15:00 15:00
Messages
CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 13:40.
PX : [ExC_01]
51
CASE 4 FULL DECOUPLING
Case 4 Full Decoupling 10:30 12:00
CZC publication
MP’s introduce bids
12:55
13:50
Process run
PX GCTNormal timing
Exceptional timing
15:3013:05
Full decoupling preparation*
Full decoupling
Exceptional procedures
13:2012:42
Notifications to TenneT
MP’s update orders**
Shadow Auction results
Note:*Shadow auction will be triggered at CASC** Reopening of order book for 20 min
Final results
>14:30
Message to MP
13:00
Case 4 Full Decoupling• CZC published at 10:30 on CASC website• PX gate closure time at 12:00
• Full decoupling announcement • Shadow auctions • Follow the local auction rules
Timing* Message Additional actions for MPs
Market results Publication
deadline
Local hub Notification
Cross border notification deadline
12:42[ExC_02]: Delay in
Market Coupling Results publication
13:50 14:00 14:00
13:00
TSO: Delay in Market Coupling Results/ local
Market Results publication and
extension of Hub Notification deadline
CASC: invitation to update bids in the Shad ow Auction
system before 13:40
13:50 14:30 14:30
13:20[ExC_03b]: Risk of Full
DecouplingBids update in the Shadow Auction
system
n/a 15:00 15:00
13:50
[ExC_04b]: Full Decoupling – Reopening of the order books
OBK open for 20 minutes after
message
n/a 15:30 15:30
Messages
PX : [ExC_02]
55
Messages
CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 13:40
PX : [ExC_03b] TSO
56
MessagesPX : [ExC_04b] TSO
57
CASE 5A FULL DECOUPLING + 2ND AUCTION
Case 5a Full Decoupling + 2nd Auction
10:30 12:00
CZC publication
MP’s introduce bids
12:55
13:50
PX GCTNormal timing
Exceptional timing
15:3013:05
Full decoupling preparation* Full
decoupling
Exceptional procedures
13:2012:42
Notifications to TenneT
MP’s update orders**
Shadow Auction results
Note:*Shadow auction will be triggered at CASC** Reopening of order book for 20 min*** Reopening of order book “second auction” 10 min**** PX publish at best effort base at 14:45
14:00
MP’s update orders***
14:25 14:45
Final**** results
Coupling process
Message to MP
13:00
Case 5a Full Decoupling + 2nd Auction
• CZC published at 10:30 on CASC website• PX gate closure time at 12:00
Timing* Message Additional actions for MPs
Market results Publication
deadline
Local hub Notification
Cross border notification deadline
12:42 [ExC_02]: Delay in Market Coupling Results publication
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 14:00 14:00
13:00TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 14:30 14:30
13:20 [ExC_03b]: Risk of Full Decoupling
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
13:50 15:00 15:00
Timing Message Additional actions for MPs
Market results Publication
deadline
Local hub Notification
Cross border notification
deadline
13:50
[ExC_04b]: Full Decoupling – Reopening of the order books
PX: OBK open for 20 minutes after message
TSO: Extension of Notification Deadlines due to full decoupling declared/delay in local Market Results publication
15:30 15:30
14:25
[CWE_UMM_05]: Thresholds reached during local auction
PX: OBK open for 10 minutes after message
TSO: Extension of Generation Notification Deadlines due to Second Auction Triggered after Full Decoupling
15:30 15:30
Case 5a Full Decoupling + 2nd Auction
• Full decoupling announcement • Shadow auctions • Follow the local auction rules
Messages
PX : [ExC_02]
62
CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 13:40
MessagesPX : [ExC_03b] TSO
63
MessagesPX : [ExC_04b] TSO
64
MessagesPX : [UMM_05] TSO
65
CASE X3A PARTIAL COUPLING BEFORE OBK GCT + SECOND AUCTION
Case X3a partial coupling before OBK GCT + Second Auction
10:3012:00
PX GCTNormal timing
Exceptional timing
Shadow Auction results
CZC publication
MP’s introduce orders
Message to MP
11:15 11:45
Coupling process
14:00
Notifications to TenneT
Preliminary result publication
* All timings are C.E.T
>12:42 >12:55 15:30
12:30
13:00 <13:50
Final results
13:20
Partial coupling before OBK GCT
67
Timing Message Additional actions for MPs
Market results
Publication deadline
Local hub Notification
Deadline
Cross Border Notification
Deadline
11:15[UMM_02]: Risk of partial decoupling for one or more interconnectors
CASC: invitation to update bids in the Shadow Auction system before 11:35
13:50
11:45 [UMM_03]: One or more interconnectors decoupled
13:50
±12:30 [ExC_01]: Thresholds reached - Reopening of the order books
PX: OBK open for 10 minutes after message 13:50
13:00
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 14:30 14:30
13:20
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
13:50 15:00 15:00
Case X3a partial coupling before OBK GCT + Second Auction
• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Threshold reached -150€/MWh or 500€/MWh (-150£/MWh or + 500£/MWh)• Second Auction triggered (re-opening of Order Books)• Publication of final market results before 13:50
68
Message
CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 13:40
PX : [UMM_02]
69
MessagesPX : [ExC_01]
70
CASE X7 PARTIAL COUPLING AFTER GCT
Case X7 partial coupling after GCT
10:30 12:00
13:50
PX GCT
Partial coupling preparation* Partial
coupling
12:4012:20
Normal timing
Exceptional timing
Coupling process / backup procedures
Notifications to TenneT
12:30
Shadow Auction results
Final results
Preliminary result publication
13:38
CZC publication
MP’s introduce orders
MP’s update orders**
15:00
Note:
*Shadow auction will be triggered at CASC
** Reopening of order book for 10 min
13:00
Message to MP
13:20
Case X7 partial coupling after GCT
• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Publication of preliminary market results at the latest 13:38 • Publication of final market results at the latest 13:50
Timing* Message Additional actions for MPs
Market results Publication
deadline
Local hub Notification
Cross border notification
deadline
12:20 [ExC_03a]: Risk of Partial Decoupling
CASC: invitation to update bids in the Shadow Auction system before 12:30
n/a n/a n/a
12:40[ExC_04a]: Partial Decoupling – Reopening of the PX order books
PX: OBK open for 10 minutes after message
13:50 14:00 14:00
13:00
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 14:30 14:30
13:20
TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline
CASC: invitation to update bids in the Shadow Auction system before 13:40
13:50 15:00 15:00
CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 12:30.
MessagesPX : [ExC_03a]
74
MessagesPX : [ExC_04a] TSO
75
NWE process overview
10:30 12:00
15:30
CZC publication
MP’s introduce bids
Exceptional procedures
12:55
13:50
Process run
Full decoupling preparation
Full decoupling
PX GCT
13:05
Partial coupling preparation
Partial coupling
12:4012:2011:45
Partial coupling due CZC reason
Normal timing
Exceptional timing
Notifications to TenneT
Decoupling scenarios
77
Where’s the problem What decouples? Resulting configuration
APX/Belpex CWE internal borders (FR-DE, FR-BE, BE-NL, NL-DE) and NorNed and BritNed and GB-GB
NL, BE and APX UK markets isolated
EPEX CWE internal borders and IFA, DK-DE, DE-SE
DE, FR, and BE markets isolated
NPS (Nordic) Nordic area, NorNed, DE-DK, DE-SE
Nordic markets isolated (but internally coupled)
N2EX GB-GB, IFA N2EX market isolatedCWE TSOs CWE internal borders BE market isolatedBritNed BritNed No market isolatedNorNed NorNed No market isolatedAny other individual interconnector
That interconnector No market isolated
PMB, or problem after 12:20 Entire region All markets isolated (but Nordic markets internally coupled)
Communication to the market - summarized
Time/Deadline
Communication Message number
Other messagesCASC TSO Local PX
10:00 Risk of Partial/full Decoupling known in advance
[ExC_03a/b] X
10:30 Partial/full Decoupling known in advance [ExC_05a/b]
11:15 Risk of partial decoupling for one or more interconnectors
[UMM_02] X
11:45 One or more interconnectors decoupled [UMM_03]
12:20 Risk of Partial Decoupling in certain regions [ExC_03a] X
~ 12:30 Second Auction [ExC_01] X
12:40 Partial Decoupling – Reopening of order books [ExC_04a] X
Regular publication time (12:42)
Delay in Market Coupling Results publication [ExC_02] X
NB 1. The fallback solutions and processes as well as their associated contents and timings are organized on local / regional level and not on NWE level. Timings are therefore indicative and additional messages can be sent (e.g. IFA CMS will also sent messages in case of a fall back situation) NB 2. The shift of notification deadlines only applies for CWE internally and CWE borders.
78
Communication to the market - summarized
Time/Deadline
Communication Message number
Other messages
CASC TSO Local PX
13:00 • Delay in Market Coupling Results publication -> Extension of notification deadlines
X
13:20 • Risk of Full Decoupling • Delay in Market Coupling Results publication ->
Extension of notification deadlines
[EXC_03b]X
13:50 • Decision of Full decoupling• Extension of notification deadlines
[EXC_04b]X
14:25 • Thresholds reached during local auction [UMM_05] X X
79
80
Smarter Day-aheadSmart bids project
LINKED & EXCLUSIVE BLOCK ORDERS
New Block Order Types
Linked Block OrdersDefinition:• The execution of (a set of) profile block(s) is subject to the execution of
another block• Other standard execution rule apply in full
Use:• Allows to explicitly consider technical and economical constraints• For example, a first block may include the start-up costs of a production
facility, and additional blocks comprising fuel costs may be linked to this block
• Possibility to design complex linked structures (i.e. families)
1 3 5 7 9 11 13 15 17 19 21 23
Hour
Q
Block Order Block Order 2 Block Order 3
1 3 5 7 9 11 13 15 17 19 21 23
Hour
Q
Block Order Block Order 2 Block Order 3
Technical plant data
• Production cost 50 MW = 65 €/MWh• Production cost 300 MW = 60 €/MWh• Marginal cost to increase production
from 50 MW to 300 MW = 59 €/MWh• Marginal cost to increase from 50 MW to
200 MW = 61 €/MWh• Marginal cost to increase from 200 MW
to 300 MW = 56 €/MWh
Bidding strategiesPossible bidding strategy 1:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 250 MW @ 59 €
• linked to Block 1→ Unit is fully accepted if P>60; → or 50 MW accepted if P>65
Possible bidding strategy 2:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 150 MW @ 61 €
• linked to Block 1• Block 3: Sell 100 MW @ 56 €
• linked to Block 2→ Unit is fully accepted if P>60; → or 200 MW accepted if P>62;→ or 50 MW accepted if P>65
Example
Output(MW)
Cost(€/MWh)
Pmin 50 65
200 62
Pmax 300 60
Technical plant data
• Production cost 50 MW = 65 €/MWh• Production cost 300 MW = 60 €/MWh• Marginal cost to increase production
from 50 MW to 300 MW = 59 €/MWh• Marginal cost to increase from 50 MW to
200 MW = 61 €/MWh• Marginal cost to increase from 200 MW
to 300 MW = 56 €/MWh
Bidding strategiesPossible bidding strategy 1:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 250 MW @ 59 €
• linked to Block 1→ Unit is fully accepted if P>60; → or 50 MW accepted if P>65
Possible bidding strategy 2:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 150 MW @ 61 €
• linked to Block 1• Block 3: Sell 100 MW @ 56 €
• linked to Block 2→ Unit is fully accepted if P>60; → or 200 MW accepted if P>62;→ or 50 MW accepted if P>65
Example
Output(MW)
Cost(€/MWh)
Pmin 50 65
200 62
Pmax 300 60• Linked Block Orders: global wellfare considered
• The unit will also clear if baseload price is 60 ≤ P ≤ 65!
• The algorithm is not sequential, but considers the global wellfare of both blocks.
Linked Block Orders – use cases
Optimise thermal power plants• Offer plant using multiple orders, allowing it to run at different outputs,
each reflected by their own cost level• Run one/several hour(s) earlier or later if power prices remain
interesting outside of the peak period
Optimise consumption processes• Only execute part B of consumption process if part A of process was
started earlier• Or only start A+B when combination does not exceed certain costs
Optimise storage capacity• Sell only during peak period if off-peak purchase order has been
accepted and buy/sell combination is in the money
Exclusive Block OrdersDefinition:• Within a set of profile blocks, at most one block can be accepted• Other standard execution rule apply in full
Use:• Allows to propose for trading different production patterns• For example, a specific production plant can be offered
• at a low price for baseload production, • at a medim price for peak load production• >at a high price for super peak load production• …but can only be executed once
High price order
1 3 5 7 9 11 13 15 17 19 21 23
Medium price order
1 3 5 7 9 11 13 15 17 19 21 23
Low price order
1 3 5 7 9 11 13 15 17 19 21 23
Exclusive Block OrdersOptimise thermal power plants• Similar to using Linked Block Orders
Optimise combined heat & power installations• Heat demand with flexible timing, or some heat buffer• Flexibility might allow to produce heat & power when power prices are
highest, using several exclusive production profiles
Optimise demand side management• Case: End user can stop consumption, but only if DAM prices > 500
€/MWh and for max 2 hours/day• “Program” load shedding on the DAM on the most expensive hours (and
only of threshold is reached), using a combination of exclusive blocks of 2 hours• Block 1: hours 1 & 2, Block 2: hours 2 & 3, …
Benefits of Smart Orders• ‘Smarter’ orders give more flexibility when
introducing orders for the auction• Better reflecting technical constraints of generation units• E.g. no partial clearing at non-cost reflective price levels, lower PRB
frequency (plant offered in smaller blocks), …• Easier bidding, less operational work
• Result: better asset optimization (generation + consumption)
• Better price formation• More robust against uncertainties faced when
making day-ahead price forecasts
Static Demo
Linked Family
Linked Family - EntryTwo options are available to submit a Linked family
Option 1 Option 2
Linked Family - EntryA visual representation helps the trader to identify mistakes: Red screen for Buy side (Green for Sell side)
Show the number of Family group
submitted
Give a representation of the family
Indicate the parent of the block
Linked Family - EntryLinked family can combine Buy and Sell: the background turns blue and the columns turn red or green to represent Buy or Sell orders
Graph shows both sides
Pressing this button shows the family in a tree
Indicates the side of the block
Linked Family - EntryA Tree View shows the hierarchical relationship between orders
Pressing this button lead the trader back to the entry
screen
Block 4 can only be traded if Bloc 2 and block 1 are trade
• Color represents the side of the order (Buy or Sell).
• Colored squares make the link with the graphs above.
Static Demo
Exclusive Group
Exclusive Group - EntryTwo options are available to submit an Exclusive Group
Option 1 Option 2
Exclusive Group - EntryA visual representation helps the trader to identify mistakes: Green screen for Sell side (Red for Buy side)
Number of exclusive group will be limited – limit to be defined
Out of all the order entered, maximum one will be traded
Exclusive Group - EntryLinked family can combine Buy and Sell: the background turns blue and the columns turn red or green to represent Buy or Sell orders
Graph shows both sides
Indicates the side of the block
Smarter Day-aheadSmart bids project
AUTOMATIC ORDER SUBMISSION TOOL
Submit Orders using XML files
Automatic Order Submission
Intro
• New tool to facilitate submitting orders in automated way using XML files
• Easier workflow• Eliminates operational risks involved with Paste
from Excel functionality• Planned to be available before launch of Smart
Orders
Automatic Order Submission
Details
• Software to be installed alongside EuroLight® client• Tool will monitor specific folder and
• Process all xml files contained in folder• Give feedback via « acknowledgement » xml file
• Orders introduced via tool will be visible in EuroLight® Order Book• Editing via EuroLight® possible
Automatic Order Submission
XML Specifications & Testing
• Draft manual & specifications of xml files available on APX website
• Scheduled to be available on the Member Testing environment as of 23 October
CHANGE TO RULESAPX Power Market Rules – NL allocation rules
102
APX Power NL Market Rules
Market Rules• Changes with respect to countries involved in
Market Coupling
• Execution conditions for Linked & Exclusive Block Orders
• Delisting Strips Market• Already delisted in practice by removing all eligible instruments
• Various clarifications (with no impact on members)103
APX Power NL Market Rules
Instrument Specifications• Day-Ahead Market
• Minimum price will become -500 €/MWh• Maximum price will remain +3000€/MWh• Availability Linked & Exclusive Block Orders confirmed• Changes to operational timings
• Strips Market• Chapter will be removed
• Changes regarding rollback
104
Changes to NL allocation rules
TenneT rules• No changes
Dutch grid code• Fallback timings and principles (also for NorNed)
brought in line with the NWE procedures • Rollback possibility to change back to CWE market
coupling for BE-NL and DE-NL borders and ITCV market coupling for NorNed
• Inclusion of the losses for the NorNed cable in the market coupling is pending regulatory approval
105
PUBLICATIONSCapacities – Flows – Prices – …
106
Publications• www.apxgroup.com
• Market prices & auction volumes• www.tennet.eu & energieinfo.tennet.org
• NTC values, ATC values, flows• www.casc.eu
• ATC values, Shadow Auction results (if any)• Yearly, monthly capacity auction results
• www.europeanpricecoupling.com• Daily prices, ATC values & flows
107
PLANNING TO GO-LIVE & MEMBER TESTING
108
109
NWE Target Go-live Date• The Target Go-live date has been set at 26
November 2013• for Delivery Date 27 November 2013
• Go-live date is subject to• Successful completion of the Simulation Test phase;• Successful completion of the Member Test phase;• Signing of all contracts and agreements;• Regulatory approval
• Final Go/No Go decision to launch will be taken early November
• Launch activities have been started
110
NWE Simulation Testing• Simulation Testing phase by NWE project parties
until 31/10/2013• Normal Day scenarios• Backup scenarios • Fallback scenarios (full decoupling and partial coupling)
• Complexity due to • testing with 50+ systems and 150+ interfaces involved• New partial coupling procedures and system functionality
• NWE Parties are working hard to meet the acceptance criteria for simulation testing
111
Joint NWE Member Tests• NWE Member Test planned for 14/10 – 25/10
• Timing delayed to afternoon, but same process time• On request of members, testing of nomination process has been added
to all test days• Smart Orders are available in NWE Member Testing
Date Simulation Settlement Process i Nomination Process
Monday, October 14 Normal Day Yes Yes Tuesday, October 15 2nd auction triggering in CWE / GB Yes Yes Wednesday, October 16 Full decoupling of NWE Yes Yes
Thursday, October 17 Partial Coupling 1 (Nordic-Baltic area will be decoupled from the CWE. CWE and GB remain coupled.) No Yes
Friday, October 18 No testing N/A N/A Saturday, October 19 Sunday, October 20
Monday, October 21 Partial Coupling 2 (missing order books EPEX) Yes Yes
Tuesday, October 22 Full decoupling of NWE Yes Yes
Wednesday, October 23 No test foreseen, but can still be used as backup testing day No No
Thursday, October 24 No test foreseen, but can still be used as backup testing day No No
Friday, October 25 No testing N/A N/A
Local Member Tests
Smart Orders• Smart Orders are available on Member Test
environment already• Will remain available until (and after) NWE Go-live
• From 28 October until 15 November, test auction will be organized by APX• Smart orders will be available to see how matching results are
presented• Details on these local tests will be communicated later
112
Local Member Tests
Automatic Order Submission Tool• Scheduled to be available on Member Testing
environment as of 23 October• Exact details will be communicated later
• Will be available on Production environment prior to the NWE go-live• Please note that the Smart Orders functionality will only be available
after NWE Go-live
113
114
Disclaimer: All messages and timings are subject to changes after final testing.
CONCLUSION
115
SUMMARYAnnex
116
PCR PROCESS TIMINGS for NWE
117
• * This is the maximum time which could be used to solve a technical problem in order to avoid a decoupling. If the technical problem is resolved in less than 55 min than the next processes will start earlier.
• ** the Second Auction in CWE / GB is a single process taking 48 minutes.• *** the Special Procedure for the Nordics is an iterative process which will run the number of times necessary taking into the
13.50 full decoupling deadline when NWE is coupled.
PCR PROCESS TIMINGS for NWE
118
Full decoupling before OBK GCT (12:00)
119
NotificationProcess60 min
NotificationProcess60 min
Notification
Process60 min
OBK GCT = 12:00
Final Notification deadline =15:30 which applies to:Internal CWE, CWE-GB and CWE-Nordic interconnectors
Publication of prelimi-nary results =12:42
• * This is the maximum time which could be used to solve a technical problem in order to avoid a decoupling. If the technical problem is resolved in less than 55 min than the next processes will start earlier.
• ** the Second Auction in CWE / GB is a single process taking 48 minutes.• *** the Special Procedure for the Nordics is an iterative process which will run the number of times necessary taking into the
13.50 full decoupling deadline when NWE is coupled.
Case X10 Case X12Case X11Full decouplingbefore 12.00
Idem + delay
Idem +2nd Auction
CWE
Full decoupling42 min
Full decoupling42 min
Full decoupling42 min
Max. Time /Flexibility to
solve technical problems55min*
2nd Auction CWE/ GB
28 min**
Publication of prelimi-nary results =12:42
Partial Coupling before OBK GCT (12:00)
120
Case X1 Case X2 Case X3a Case X3b Case X4a Case X4b
121• * In case X6b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are still
coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but • instead NPS can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted • (updated) by NPS and market parties to relevant TSOs until about 1 hour before delivery hour.
Partial Coupling before OBK GCT (12:00)
Partial coupling after OBK GCT (12:00)
122
• * In case X9b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are still coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but instead NPS can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted (updated) by NPS and market parties to relevant TSOs until about 1 hour before delivery hour.
Case X7 Case X8 Case X9a Case X9b
Communication to the market - summarized
NB 1. The fallback solutions and processes as well as their associated contents and timings are organized on local / regional level and not on NWE level. Timings are therefore indicative and additional messages can be sent (e.g. IFA CMS will also sent messages in case of a fall back situation) NB 2. The shift of notification deadlines only applies for CWE internally and CWE borders.
123
Time/Deadline
Communication Message number
12:20 • Increased risk for partial coupling in certain region• TSO message to MPs: Inform Market of fall back
processes (update of explicit shadow auction bids)
[EXC_03a]
~ 12:35 • Second Auction• PCR message to PXs and subsequently MPs and TSOs:
Second Auction is declared
[EXC_01]
Regular publication time (12:42)
• PCR message that process is delayed from PXs* to TSOs and MPs (timings to be confirmed).
• (TSO message to MPs: Inform Market of fall back processes)
Local PX msg
Communication to the market - summarizedTime/Deadline
Communication
13:20 • PCR message to PXs and subsequently MPs and TSOs: Inform Market about Incident and risk of decoupling.
• TSO message to MPs: Inform Market of fall back processes (update of explicit shadow auction bids) & shifting of notification deadline to 15h00
[EXC_03b]
13:40 • End of update shadow auction bids• Start of explicit shadow auction calculation
-
13:50 • Decision of Full decoupling• PCR message to PXs and subsequently MPs and TSOs:
Full decoupling is declared • (TSO message to MPs: notification deadline has been
extended to 15h30)
[EXC_04b]
13:50-14:00 • Publication of the explicit shadow auction fall back results (target is to publish immediately after 13.50 and at the latest at 14:00, feasibility of these timings must still be confirmed)
-
13:55-14:15 • Update of local auction bids according to shadow auction results
Local PX msg
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