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EUROPEAN NETWORK CODES – BIDDING ZONE REVIEW IMPACTS ON THE SEE REGION RESULTING FROM A AUSTRIAN-GERMAN MARKET SPLIT

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Page 1: EUROPEAN NETWORK CODES – BIDDING ZONE REVIEWhro-cigre.hr/downloads/SEERC_CD/papers/topic_3/3... · every 3 years considering: market liquidity operational security & security of

EUROPEAN NETWORK CODES –BIDDING ZONE REVIEWIMPACTS ON THE SEE REGION RESULTING FROM A AUSTRIAN-GERMAN MARKET SPLIT

Page 2: EUROPEAN NETWORK CODES – BIDDING ZONE REVIEWhro-cigre.hr/downloads/SEERC_CD/papers/topic_3/3... · every 3 years considering: market liquidity operational security & security of

REGULATION ON CAPACITY ALLOCATION AND CONGESTION MANAGEMENT (CACM) EC No 2015/1222 came into effect in August 2015

efficiency of the European market zones shall be evaluated every 3 years considering:market liquidity operational security & security of supply degree of uncertainty in cross–zonal capacity calculation market efficiency & needed remedial-actions resulting congestions …

ENTSO-E Bidding Zone Study with 4 expert based scenarios (2 with an AT/DE split)

Impacts on the SEE region resulting from a Austrian-German market split estimated employing the fundamental market model of APG

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AUSTRIAN POWER GRID AG

• Principles:– Optimization target >> minimization of total producer cost

– Single commodity prices (no differences per bidding zone)

– Perfect market competition

– Perfect foresight for particular step/iteration of optimization

(iteration period can be adjusted)

• System:– Intel® Xeon® CPU E5-1650v2@3,5GHz ; 128GB RAM

– Matlab 2015b

– Formulation in GAMS, Solver: CPLEX (12.3)

13.06.2016 313.06.2016 3

APG market model description

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AUSTRIAN POWER GRID AG

Geographic scope

• Continental Europe

• Scandinavia & UK modeled over imports/exports

(DC connection)

• 26 Bidding Zones in NTC and flow-based

market coupling model

• PLATTS DB:

~7300 Power plants

• Full grid representation:

9000 buses, 12000 branches

13.06.2016 4

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AUSTRIAN POWER GRID AG

Network/ market transfer restrictions

• Different options for market model selectable

– NTC (Network Transfer Capacity) restrictions– FB parameters

• LF calculation during optimization

– DC optimal powerflow restrictions– For nodal pricing runs only (implicit redispatch)– Scalability issues with huge network structures

13.06.2016 5

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AUSTRIAN POWER GRID AG

Power plant database & types & efficiency

• PLATTS Power Plant database with GIS coordinates

• Down to 1MW units methods for aggregation and

scaling for small units

• Clustered into 24 different types (technology, fuel)

• Plant efficiencies according to these types and depending

on the year of construction

13.06.2016 6Source: Schroeter J. Auswirkungen des europäischen Emissionshandelssystem auf den Kraftwerkseinsatz in Deutschland, TU Berlin 2004

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AUSTRIAN POWER GRID AG

Availability of power plants

• Planned outage planning through matlab preprocessing– Predefined outage durations per type– Shift outages per plant to times with minimal demand over the year– Each plant is handled separately, order is chosen randomly

• Balancing reserve– Identify plants and needed balancing capacity– Reduce availability of plants/ capacity

• Redispatch capacity provision– Provide capacity for identified redispatch plants from market

13.06.2016 7

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AUSTRIAN POWER GRID AG

Stepwise Optimization

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end parameter

Result #1 Result #2 Result #3 Result #n

end parameter

Optimization #1

Optimization #n

Optimization #2

Optimization #3

8 days

8 days

8 days

Time [h]

Time [h]

end parameter

starting values

7 days7 days

7 days

7 days

8 days

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AUSTRIAN POWER GRID AG

Modeling renewables

• Historical based TenYearNetworkDevelopmentPlan data

• Big wind/ solar power plant sites denoted by PLATTS database• Other smaller wind and solar capacity is regionally stated• Nodal allocation of generation pro rata of plant capacity

• Spreading RunOfRiver generation profile to plants, denoted by PLATTS database

• Small hydro power capacity is spread pro rata of plant capacity of big hydro power plants

13.06.2016 9

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AUSTRIAN POWER GRID AG

• Using the new released TYNDP 2016 data

• Upscaling/ downscaling power plant capacity for future scenarios plus known future power plants

• Identify power plant sites for– new plant types – excessively more additional

capacity

Source: ENTSO-E TYNP

Input data: TYNDP 2016 best estimate 2020

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AUSTRIAN POWER GRID AG

Modelling approach

NTC based market coupling

BasecaseUsing data from the TYNDP 2016, 2020 Expected

Progress Scenariocorresponds to the thermal transfer capacity of the

cross border lines of AT-DE Congestion between the market zones of AT und DESzenarios: 6GW, 5GW, 4GW,3GW und 2GW

Analysis in the change of the producer costs in all countries in comparison to the basecase

13.06.2016 12

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AUSTRIAN POWER GRID AG 13.06.2016 13

Frequency of 100% NTC utilization during all hours of the year 2020

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AUSTRIAN POWER GRID AG 13.06.2016 14

additional economic costs in 2020

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AUSTRIAN POWER GRID AG 13.06.2016 15

additional economic costs in 2020

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AUSTRIAN POWER GRID AG 13.06.2016 16

Medium cost increase in 2020 per MW

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AUSTRIAN POWER GRID AG

• For the SEE region, a division of the German-Austrian market area would be a massive restriction of free trade and associated with big additional costs for all parties

• Cumulated increase in the costs of power production of up to 60 Million Euros per year for Hungary, Slovenia, Croatia, Serbia, Montenegro and the FYR of Macedonia and additional costs of up to 97 Million Euros for Austria

• Further investigation of other options to mitigate the loop flow issue, like redispach, might help to find better solutions

13.06.2016 17

Conclusion and Outlook

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AUSTRIAN POWER GRID AG

Load modeling

• Historical hourly load from ENTSO-E database or extrapolation of TYNDPxxxxdata

• Nodal allocation by population densityand/or GDP (EUROSTAT NUTS data) via Matlab preprocessing algorithm

• Used resolution: LAU2 (localadministrative units)

• Population density values of each LAU2 are allocated to closest node(s)

• Confidence interval for more accuracy

13.06.2016 19

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AUSTRIAN POWER GRID AG

Startup/ shut down/ minimal operationtime/ minimal downtime

• Different modeling of unit startup and shut down processes available• Modeling of minimal operation-/ downtimes of power plants• Ramping constraints per power plant unit

• Degree of detail vs. simulation time– Different startup durations & costs depending on plant downtime

13.06.2016 20Source: G. Morales-Espana et al.: Thight and compact MILP formulation of start-upand shut-down ramping in unit commitment, IEE Trnasactions on power systems, vol.28, no. 2, pp. 1288-1296, May 2013