info session nwe day-ahead - elia/media/files/elia/products-and-services/crossborder2/... · •...

Elia’s European Market Design Work

Group & Belpex Users’ Group

Info Session NWE Day-Ahead

Operational & contractual changes for

Belgian wholesale market organization

Agenda

• Introduction • Pascale Fonck & James Matthys-Donnadieu

• General overview of NWE Price Coupling • Martine Verelst

• Operational principles & possible scenarios • Amélie Gemers

• Detailed operational procedures • Ghizlan Achkari

• New Smart Order types & Automatic Order Submission Tool • Rob Loos

• Changes to Market Rules (Belpex / Elia) • Rob Loos (& Martine Verelst)

• Member Testing & Planning to go-live • Rob Loos

• Conclusion • James Matthys-Donnadieu

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

PCR : Price Coupling of

Regions

5

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 – Driving European

Market Integration

7

NWE DA

It promotes liquidity and

robustness of DA markets

It allows for

optimal usage

of cross-border

capacities

It encourages

the harmonization of market rules

It establishes the

necessary

framework to

enable extensions

„NWE is more than the sum of its parts“

Potential integration of losses

on DC cables

Activation of losses on a specific interconnector is subject to approval

of relevant national NRAs

8

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

NWE - Interconnectors

IFA

BritNed

NorNed

Kontek

Baltic SwePol

EstLink

FerroSkan

Skagerak Kontiscan

DK1-DE

OPERATIONAL PRINCIPLES

& POSSIBLE SCENARIOS

General principles

Price Coupling Process

General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities

11

NWE Business Process

12

CZCs and allocation constraints

submission and integration

Final Confirmation of the results

10:30

CZCs and allocation

constraints submitted

to PCR

12:00

Orderbooks closure Global Preliminary PX

Confirmation

12:55

Global Final Confirmation

Publication

Trading confirmation

and scheduled exchanges notification

12:55 – 14:00

Nominations

PCR process: • CZCs and allocation constraints

process • Orderbook processing • PMB calculation • Preliminary confirmation process

Market Coupling Results and

Scheduled Exchanges transfer

Final confirmation

process

PCR Process Timings for NWE

Normal process – 55 minutes

13

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

14

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

15

2nd Auction CWE/ GB

48 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

16

2nd Auction CWE/ GB

48 min

PCR PROCESS TIMINGS for NWE

17

• * 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

18

Partial

Coupling/Full

Decoupling

Deadline

Target

Time

Latest Time to

Start an IC

TIME


target time




Fallback procedures


decoupling

Fallback procedures

19

Partial

Coupling/Full

Decoupling

Deadline

Target

Time

Latest Time to

Start an IC

TIME


target time




Fallback procedures


decoupling

Full Decoupling of NWE

• 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

20

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

21

Full Decoupling scenario

22

CWE : 4 local PX auctions

Nordic-Baltic Market Splitting

Virtual Capacity is set to Zero

2 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

23

CWE TSO investigation on

flexibility of notification deadline –

impact on procedures

24

Notification Process 45 min

15:30

Crossborder Notification

Process 45 min

15:45

Generation Notification

Process At least 60 min

15:30

15:30

Exceptional cases


25

Full Decoupling before OBK

GCT (12:00)

26

Notification

Process 60 min

Notification

Process 60 min

Notification Process

60 min

OBK GCT = 12:00

Final Notification deadline =15:30 which applies to:

Internal CWE, CWE-GB and CWE-Nordic interconnectors






Case X10 Case X12 Case X11 Full decoupling

before 12.00

X10 +

delay X10 +

2nd Auction

CWE

Full decoupling 42 min



Max. Time /Flexibility to

solve technical problems

55min*

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 fallback solution for these temporary not participating borders / interconnectors

• NWE parties will try to couple as many borders / interconnectors as possible

• Partial Decoupling is triggered • during the pre-coupling process, at the latest at 11:45

• during the coupling process, at the latest at 12:40

27

Partial Decoupling Scenario

Example : CWE+GB <> Nordic

28

PCR coupling

Nordic-Baltic: Market Splitting

Shadow Auctions


PCR matching process


Example : NorNed

29

PCR coupling

Shadow Auctions



Example : EPEX OBK missing

30

PCR coupling

Shadow Auctions




Example: APX NL/Belpex OBK

missing

31

PCR coupling

Shadow Auctions



32

PCR coupling

Shadow Auctions




Example : no CWE CZCs in PMB

Decoupling scenarios

33

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 isolated

CWE TSOs CWE internal borders BE market isolated

BritNed BritNed No market isolated

NorNed NorNed No market isolated

Any other individual interconnector

That interconnector No market isolated

PMB, or problem after 12:20

Entire region All markets isolated (but Nordic markets internally coupled) 33






Partial Decoupling before OBK

GCT (12:00)

34

• * 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 Decoupling before OBK

GCT (12:00)

Partial coupling followed by Full

Decoupling

+ Special Routine Nordics

35

Case X7

Publication of

preliminary results

=12:42

Case X9a

Partial Decoupling after OBK

GCT (12:00)

36

Case X9b Case X8

Nomination Deadlines @ Elia

37

Cases Number

Case Description NO market results before

HUB 1 Cross Border HUB2

Off-Take Injection

Genera-tion

Normal X1 X10

- partial decoupling before OBK GCT full decoupling before OBK GCT

14:00 14:30 15:00

1 X2 X11 X12

small delay partial decoupling before OBK GCT + small delay full decoupling before OBK GCT + small delay full decoupling before GCT + 2nd auction

13:00 14:15 14:30 15:00

1 2a 3a X2 X3a X4a X7 X11

Longer/maximum delay 2nd auction delay + 2nd auction partial decoupling before OBK GCT + longer/maximum delay partial decoupling before OBK GCT + 2nd auction partial decoupling before OBK GCT + delay + 2nd auction partial decoupling after OBK GCT full decoupling before OBK GCT + longer/maximum delay

13:20 14:45 15:00 15:30

4 X5 X8

full decoupling partial decoupling before OBK GCT + full decoupling partial decoupling after OBK GCT + full decoupling

13:50 15:15 15:30 15:30

5a X6a X9a

full decoupling + 2nd auction partial decoupling before OBK GCT + full decoupling + 2nd auction partial decoupling after OBK GCT + full decoupling + 2nd auction

13:50 15:15 15:30 16:00

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 GCT Normal

timing 15:00

Notifications to Elia

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: 14:00

Hub 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)

43

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 GCT Normal

timing

15:30

12:42

Preliminary result

publication

Exceptional

timing

13:38 13:50

Technical problem

Message to MP



CZC publication


13:00 13:20

45

Final

results

Case 1 Process delayed with

max timing



• Delay in Market Coupling results

Timing Message Additional actions

for MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross

Border

Notification

Deadline

Generation

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

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 14:15/14:30 14:30 15:00

13:20






13:50 14:45/15:00 15:00 15:30

46

Messages

47

PX : [ExC_02] TSO

CASE 2A SECOND AUCTION

Case 2a second auction

10:30 12:00

CZC publication


Coupling process

PX GCT Normal

timing 14:00


Preliminary result

publication


Exceptional

timing

>12:42 >12:55 15:30

12:30

13:00 <13:50

Final

results

Message to MP

49

13:20

Case 2a second auction



• Threshold reached -150€/MWh or 500€/MWh (-150£/MWh or + 500£/MWh)

• Second Auction triggered (re-opening of Order Books)

50

Timing Message Additional

actions for MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross Border

Notification

Deadline

Generation

notification

deadline

±12:30

[ExC_01]: Thresholds

reached - Reopening of the

order books

PX: OBK open for

10 minutes after

message

13:50

13:00






CASC: invitation

to update bids in

the Shad ow

Auction system

before 13:40

13:50 14:15/14:30 14:30 15:00

13:20






13:50 14:45/15:00 15:00 15:30

Messages

51

CASC will add: Therefore, if relevant, we

advise you to update your shadow bids at

CASC EXAU platform before 13:40.

PX : [ExC_01]

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 GCT Normal

timing

Exceptional

timing

15:30

Full

decoupling

preparation*

Full

decoupling

Exceptional procedures

13:20 12:42


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 53

13:00

Case 4 Full Decoupling • CZC published at 10:30 on CASC website


54


for MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross Border

Notification

Deadline

Generation

notification

deadline

12:42


Coupling Results

publication

CASC: invitation to

update bids in the

Shadow Auction

system before 13:40

13:00






CASC: invitation to

update bids in the

Shadow Auction

system before 13:40

13:50 14:15/14:30 14:30 15:00

Case 4 Full Decoupling • Full decoupling announcement

• Shadow auctions

• Follow the local auction rules

55


for MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross Border

Notification

Deadline

Generation

notification

deadline

13:20

[ExC_03b]: Risk of Full

Decoupling

CASC: invitation to

update bids in the

Shadow Auction

system before 13:40






13:50 14:45/15:00 15:00 15:30

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


15:15/15:30 15:30 15:30

56

Messages

PX : [ExC_02]

Messages



CASC EXAU platform before 13:40

57

PX : [ExC_03b] TSO

58

Messages

PX : [ExC_04b] TSO

CASE 5A FULL DECOUPLING

+ 2ND AUCTION

Case 5a Full Decoupling + 2nd

Auction

10:30 12:00

CZC publication


12:55

13:50

PX GCT Normal

timing

Exceptional

timing

16:00 13:00

Full

decoupling

preparation* Full

decoupling


13:20 12:42



Shadow

Auction

results

Note:



*** 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 60

Case 5a Full Decoupling + 2nd Auction • CZC published at 10:30 on CASC website


61


for MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross Border

Notification

Deadline

Generation

notification

deadline

12:42


Coupling Results

publication

CASC: invitation to

update bids in the

Shadow Auction

system before 13:40

13:00






CASC: invitation to

update bids in the

Shadow Auction

system before 13:40

13:50 14:15/14:30 14:30 15:00

13:20

[ExC_03b]: Risk of Full

Decoupling

CASC: invitation to

update bids in the

Shadow Auction

system before 13:40






13:50 14:45/15:00 15:00 15:30

• Full decoupling announcement

• Shadow auctions

• Follow the local auction rules

62


for MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross Border

Notification

Deadline

Generation

notification

deadline

13:50

[ExC_04b]: Full


the order books

PX: OBK open for 20

minutes after

message

TSO: Extension of

Notification Deadlines due

to full decoupling

declared/delay in local


15:15/15:30 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

15:15/15:30 15:30 16:00

Case 5a Full Decoupling + 2nd Auction

63

Messages

PX : [ExC_02]




64

Messages

PX : [ExC_03b] TSO

65

Messages

PX : [ExC_04b] TSO

66

Messages

PX : [UMM_05] TSO

CASE X3A PARTIAL

COUPLING BEFORE OBK GCT

+ SECOND AUCTION

Case X3a partial coupling before

OBK GCT + Second Auction

10:30

12:00

PX GCT Normal

timing

Exceptional

timing

Shadow

Auction

results

CZC publication


Message to MP

11:15 11:45

Coupling process

14:00


Preliminary result

publication


>12:42 >12:55 15:30

12:30

13:00 <13:50

Final

results

13:20

Partial coupling

before OBK GCT

Timing Message Additional actions for

MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross Border

Notification

Deadline

Generation

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

11:45 [UMM_03]: One or more

interconnectors decoupled

±12:30

[ExC_01]: Thresholds

reached - Reopening of the

order books

PX: OBK open for 10

minutes after message 13:50

13:00






CASC: invitation to

update bids in the

Shadow Auction

system before 13:40

13:50 14:15/14:30 14:30 15:00

13:20






13:50 14:45/15:00 15:00 15:30

Case X3a partial coupling before

OBK GCT + Second Auction • CZC published at 10:30 on CASC website


• 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

69

Message




70

PX : [UMM_02]

Messages

71

PX : [ExC_01]

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

12:40 12:20

Normal

timing

Exceptional

timing

Coupling process / backup procedures


12:30

Shadow

Auction

results Final

results

Preliminary result

publication

13:38

CZC publication


15:30

Note:



13:00

Message to MP 73

13:20

Case X7 partial coupling after GCT



• Publication of preliminary market results at the latest 13:38

• Publication of final market results at the latest 13:50

74

Timing Message Additional

actions for MPs

Market

results

Publication

deadline

Local hub

Notification

Deadline

HUB1/HUB2

Cross Border

Notification

Deadline

Generation

notification

deadline

12:20 [ExC_03a]: Risk of Partial

Decoupling

CASC: invitation

to update bids in

the Shadow

Auction system

before 12:30

12:40

[ExC_04a]: Partial


the PX order books

PX: OBK open for

10 minutes after

message

13:50

13:00






CASC: invitation

to update bids in

the Shadow

Auction system

before 13:40

13:50 14:15/14:30 14:30 15:00

13:20






13:50 14:45/15:00 15:00 15:30



CASC EXAU platform before 12:30.

75

Messages

PX : [ExC_03a]

Messages

76

PX : [ExC_04a] TSO

NWE process overview

10:30 12:00

15:30

CZC publication



12:55

13:50

Process run

Full

decoupling

preparation

Full

decoupling

PX GCT

13:05

Partial coupling

preparation

Partial

coupling

12:40 12:20 11:45

Partial coupling due

to CZC reason

Normal

timing

Exceptional

timing


77

Decoupling scenarios

78

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 isolated

CWE TSOs CWE internal borders BE market isolated

BritNed BritNed No market isolated

NorNed NorNed No market isolated

Any other individual interconnector

That interconnector No market isolated

PMB, or problem after 12:20 Entire region All markets isolated (but Nordic markets internally coupled) 78

Communication to the market -

summarized

79

Time/ Deadline

Communication Message number

Other messages

CASC 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.


summarized Time/ Deadline


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

80

Smarter Day-ahead

Smart bids project

LINKED & EXCLUSIVE BLOCK

ORDERS

New Block Order Types

Linked Block Orders

Definition: • 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 383

Technical plant data

• Production cost 50 MW = 65 €/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


Bidding strategies Possible 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 €



→ 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

84

Technical plant data



• Marginal cost to increase production from 50 MW to 300 MW = 59 €/MWh



Bidding strategies Possible bidding strategy 1:

• Block 1: Sell 50 MW @ 65 €


→ Unit is fully accepted if P>60; → or 50 MW accepted if P>65

Possible bidding strategy 2:

• Block 1: Sell 50 MW @ 65 €



→ 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.

85

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

86

Exclusive Block Orders

Definition: • 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 87

Exclusive Block Orders

Optimise 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, …

88

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

89

Static Demo

Linked Family

90

Linked Family - Entry Two options are available to submit a Linked family

Option 1 Option 2

91

Linked Family - Entry A 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

92

Linked Family - Entry Linked 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

93

Linked Family - Entry A 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.

94

Static Demo

Exclusive Group

95

Exclusive Group - Entry Two options are available to submit an Exclusive Group

Option 1 Option 2

96

Exclusive Group - Entry A 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

97

Exclusive Group - Entry Linked 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

98

Smarter Day-ahead

Smart bids project

AUTOMATIC ORDER

SUBMISSION TOOL

Submit Orders using XML files

99

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

100


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

101


XML Specifications & Testing

• Draft manual & specifications of xml files available

on APX / Belpex websites

• Scheduled to be available on the Member Testing

environment as of 23 October

102

CHANGE TO RULES

Belpex Market Rules – Elia ARP contract – …

103

Belpex Market Rules

Market Rules

• Execution conditions for Linked & Exclusive Block

Orders

• Clarifications of procedures (with no impact on

members)

104

Belpex Market Procedures

Market Segment Specifications • Changes with respect to countries involved in

Market Coupling

• 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

• Changes regarding rollback

User Procedure • Changes regarding Linked & Exclusive Block

Orders

105

Via Communication

Changes to Elia ARP contract

ARP Contract

• No changes

• Contains nomination deadlines for normal

procedures

106

PUBLICATIONS

Capacities – Flows – Prices – …

107

Publications

• www.belpex.be • Market prices & auction volumes

• www.elia.be • NTC values, ATC values, flows

• www.casc.eu • ATC values, Shadow Auction results (if any)

• Yearly, monthly capacity auction results

• www.europeanpricecoupling.eu • Daily prices, ATC values & flows

108

http://www.belpex.be/

http://www.elia.be/

http://www.casc.eu/

http://www.europeanpricecoupling.eu/

PLANNING TO GO-LIVE &

MEMBER TESTING

Belpex Market Rules – Elia ARP contract – …

109

110

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

111

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

112

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 / Belpex • Smart orders will be available to see how matching results are

presented

• Details on these local tests will be communicated later

113

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

114

115

Disclaimer: All messages and timings are subject to changes after final testing.

CONCLUSION

116

SUMMARY

118

PCR PROCESS TIMINGS for

NWE

119







120

Full decoupling before OBK GCT

(12:00)

121

Notification

Process 60 min

Notification

Process 60 min

Notification Process

60 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






Case X10 Case X12 Case X11 Full decoupling

before 12.00

Idem +

delay

Idem +

2nd Auction

CWE




Max. Time /Flexibility to

solve technical problems

55min*

2nd Auction CWE/ GB

28 min**

Publication of prelimi-

nary results =12:42

Partial Coupling before OBK GCT

(12:00)

122

Case X1 Case X2 Case X3a Case X3b Case X4a Case X4b

123

• * 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)

124

• * 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


summarized

125

Time/ Deadline


Other messages

CASC 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 region [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.


summarized Time/ Deadline


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

126

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