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- K O S O V A N T R A N S M I S S I O N S Y S T E M & M A R K E T O P E R A T O R - O P E R A T O R I I S I S T E M I T, T R A N S M I
S I O N I T & T R E G U T T Ë K O S O V Ë S -
Pristina
18 April 2017
Balancing of Kosovo Power System
(Balance Responsibility)
SECOND HIGH LEVEL ENERGY FORUM
Skender Gjonbalaj
Director of Market Operator Department
Content
1. What is Balancing and Balancing Mechanism?
2. Balancing the Kosovo Control Area
2
Balancing
3
∑Pgeneration = ∑Pload ∑Pgeneration + ∑Pimport = ∑Pload + ∑Pexport
Kosovo
Control Area
(KOSTT)
Balancing is the process initiated by the TSO to ensure that sum of
generation inputs and imports is as close as possible to the sum of exports
and demand from the system at transmission connected sites and distribution
zones
Synchronous system Continental Europe
Imbalance (Power sector is not balanced)
Physical reasons
• Forecasts made a day ahead can be wrong
• Generators may become unavailable
• Demand will not be constant on a minute-by-minute basis
Contractual reasons
• Trading parties will schedule to match contracts, not demand
• Suppliers may not contract to balance perfectly
• Trading parties may notice a price advantage in imbalance
4
The difference between hourly scheduled electricity deliveries and hourly
metered deliveries.
5
Balancing mechanism
Operates as a contract between TSO and Trading Parties for delivery of power (not energy)
• Payment is for energy delivered with that power
Operates as an auction to provide or be provided with that power
• Trading Parties submit bids and offers to buy or sell electricity to TSO
Trading Parties who provide power are:
Generators
Demand side
Cross border trades
is the means by which Trading Parties submit Bids and Offers to buy energy
from or sell energy to the TSO in order for the TSO to carry out the real time
Balancing of the Transmission System
6
BRP- Balancing Responsible Party
Each trading party is responsible for their imbalances
A number of small trading parties delegate their imbalance responsibility to a BRP.
• Trading parties including BRP leader benefit by aggregating their imbalances
• Balance Market cost decreases in comparison with the situation where the producer/supplier/distributor is acting as a Balance Responsible Party alone.
BRP more easily arranges its operations to correct a balance deviation
BRP pays financial compensation to TSO for negative imbalances and is compensated for positive imbalances by TSO.
is a Trading Party acting for a Balancing Group that maintains either an
Injection Account or an Offtake Account for the purposes of aggregating
imbalances and imbalance payments on behalf of the Balancing Group
Trading
parties
(BRP is
short)
TSO
(Balancing Mechanism)
BRP –balance responsible parties BSP – balance service provider
Trading parties
(BSP- offer)
€
€€
€
TSO sell
TSO Buy
TSO Buy
TSO Sell
Trading
parties
(BSP- bid)
Trading
parties
(BRP is long)
Procurement of balancing services and
settlement
• TSO is responsible for physically balancing the Transmission
System
• TSO procures or sells energy and ancillary services
• Transmission Losses
• Balancing energy, including for fulfilment of the Compensation
Program
• Reserve
• MO manages the Settlement process, including the calculation of
Energy Imbalance quantities and prices
• MO issues invoices and collects money owed to or by BRPs and
Trading Parties under the terms of the Market Rules
8
KOSTT Balancing Responsibilities
KOSTT political obstacles in balancing
process
• Two different jurisdictions – contracting
parties to the EnC
– different legal framework
– different governing institutions
– different designated operator (TSO)
– different market and technical
framework
– different price zones – market
– different tariff framework - regulated
– …etc.
9
• KOSTT is the designated Transmission system operator of Kosovo
has no proper representation within /outside ENTSO-E
• KOSTT is not yet operating as Control Area
• Unfortunately KOSTT is operating inside EMS Control Area
This status disables KOSTT to meet all its obligation to balance Power
System of Kosovo
Difficulties towards Balancing
The Kosovo power sector is small and faces challenges with:
Deficit in generation reserve capacities and adequacy
Existing inflexible old power plants which worsen the
situation
Missing balancing bids and offers in national market
Dependent on cross border balancing
Missing procedure for procurement of balancing services
10
System imbalance
NEGATIVE (short)
• injections < off-takes
• TSO will buy
POSITIVE (long)
• injections > off-takes
• TSO will sell
Party
Imb
ala
nce
NEGATIVE (short)
Contracted < metered Single Price
based on weighted
average price of accepted
offers (WAP )
Single Price
based on weighted
average price of accepted
bids (WAP )
POSITIVE (long)
Contracted > metered
Energy cost recovery –Single Imbalance Price
If there are no bids and offers the HUPEX price will be
considered for calculation of Imbalance price
Dry run implementation of Balancing mechanism
In absence of balancing Bids and Offers KOSTT has
developed the methodology for Imbalance price calculation
based on DA HUPEX price
Methodology was adopted by ERO in October 2016
Dry runs of balancing mechanism started on 01.10.2016
KOSTT is reporting to Market Parties on daily basis on their
hourly imbalances and payment obligations
Real implementation of balancing mechanism should have
started on 01.01.2017
Date for implementation was postponed to give time to parties
to modify their contracts which are based on monthly metered
volume not contracted volumes
Date is again postponed by ERO to 01.06.2017
12
www.kostt.com
Thank You