it platform requirements for the new electricity...
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Hydropower Investment
Promotion Project (HIPP)
IT Platform Requirements for the
New Electricity Market Operator in
Georgia
Wednesday, June 19, 2013
This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting.
IT Platform Requirements for the
New Electricity Market Operator
in Georgia
USAID HYDROPOWER INVESTMENT PROMOTION PROJECT (HIPP)
CONTRACT NUMBER: EEM-I-00-07-00005-0
DELOITTE CONSULTING LLP
USAID/CAUCASUS OFFICE OF ENERGY AND ENVIRONMENT
WEDNESDAY, JUNE 19, 2013
DISCLAIMER:
The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
This document was prepared by
Author Organization Contact Details
Nikoloz Sumbadze Deloitte Consulting [email protected]
+995-32-24-45-70/71
Reviewer Organization Contact Details
Gergana Stoitcheva Deloitte Consulting LLP [email protected]
Jake Delphia Deloitte Consulting LLP [email protected]
TABLE OF CONTENTS
1. INTRODUCTION .............................................................................................. 1
2. SYNOPSIS OF BALANCING ELECTRICITY TRADE ..................................... 2 2.1 Description of the IT platforms used in the Current Georgian
Balancing Market ........................................................................................ 2 2.2 Description of a Competitive Balancing Market ............................................... 3
2.2.1 Day-ahead Market ........................................................................... 4 2.2.2 Balancing Power Market .................................................................. 4 2.2.3 Intraday Market ................................................................................ 5
3. MARKET DATA REQUIREMENTS FOR THE NEW GEORGIAN MARKET OPERATOR ................................................................................. 6
3.1 Market Data Provided by ESCO ...................................................................... 7 3.2 Market Data Typically Provided by the Market Operator ................................. 7 3.3 Comparison ...................................................................................................... 8 3.4 Organized Wholesale Market Operations Timetable ....................................... 8
3.4.1 Offers and Bids ................................................................................ 9 3.4.2 Short-term and Medium-term Forecasts for System
Adequacy ................................................................................. 11 3.4.3 Pre-dispatch and Dispatch ............................................................. 12 3.4.4 Market Information ......................................................................... 13
4. INFORMATION EXCHANGE FRAMEWORK FOR COMPETITIVE ELECTRICITY TRADING ........................................................................... 15
4.1. Description of XML-based Information Exchange ........................................ 15 4.2 Operations in Electricity Sector as Business Processes ............................... 16 4.3 Communication Protocol ................................................................................ 18
5. OVERVIEW OF EXISTING ELECTRICITY TRADING PLATFORMS ............ 20 5.1 Italian Power Exchange ................................................................................. 21 5.2 Spanish Power Exchange .............................................................................. 23 5.3 Nord Pool ....................................................................................................... 29 5.4 Polish Power Exchange ................................................................................. 29
APPENDIX ......................................................................................................... 33
Acronyms Used in this Report
AMR
Automatic Meter Reading is the technology for automatically collecting
consumption data from electricity metering devices and transferring it
to a central database for billing, troubleshooting and analyzing
AMQP
The Advanced Message Queuing Protocol is an open standard
application layer protocol for message-oriented middleware. The
features of AMQP are message orientation, queuing, routing
(including point-to-point and publish-and-subscribe), reliability and
security
B2B Business-to-business
BM Balancing market
bps Bit per second
BUI Browser User Interface is a method of interacting with an application,
typically hosted on a remote device, via controls presented within a
web browser
COBRA The Common Object Request Broker Architecture is a standard that
enables software components written in multiple computer languages
and running on multiple computers to work together
CPU Central Processing Unit is the hardware within a computer that carries
out the instructions of a computer program by performing the basic
arithmetical, logical, and input/output operations of the system
DAM Day-Ahead Market
DAP Day-Ahead Planning
DCOM
Distributed Component Object Model is a proprietary Microsoft
technology for communication among software components
distributed across networked computers
DisCo Distribution Comapny
ESCO Electricity System Commercial Operator of Georgia
EU European Union
GB Gigabyte
GHz Gigahertz
GEMM 2015 Georgian Electricity Market Model 2015
GME Market Operator of Italian Electricity Sector (Gestore dei Mercati
Energetici)
GNERC Georgian National Energy and Water Supply Regulatory Commission
GoG Government of Georgia
GSE Georgian State Electrosystem
GMEWS Italian Market Operator’s Web Services
HIPP Hydropower Investment Promotion Project
HPP Hydro Power Plant
HTML
HyperText Markup Language is the main markup language for
creating web pages and other information that can be exchanged via
web browser
HTTP Hypertext Transfer Protocol
ISDN Integrated Service Digital Network
IT Information Technology
J2EE Java 2 Platform Enterprise Edition is a platform-independent, Java-
centric environment which builds and deploys Web-based enterprise
applications online. It consists of a set of services, APIs, and protocols
that provide the functionality for developing multitiered, Web-based
applications.
Kbps Kilobit per second
kWh Kilowatt Hours
Mbps Megabit per second
MGP Italian Day-Ahead Market
MI Italian Intra-Day Market
MMS
Market Management System of Turkey is the applications that are
working as thin client aimed at executing the balancing mechanism
and settlement transactions and accessible by the Market Operator,
Transmission System Operator, market participants and transmission
and distribution license holder legal entities responsible for meter
readings
MO Market Operator
MPE The set of the Day-Ahead Market (MGP), the Intra-Day Market (MI)
and the Ancillary Services Market (MSD) in Italian Electricity Sector
MSD Italian Ancillary Services Market
MTE Italian Forward Electricity Market
MWh Megawatt Hours
NCC National Control (Dispatch) Center in Georgia
NLDC
National Load Dispatch Center of Turkey: The central unit under the
body of TEIAS in charge of real-time balancing of electricity demand
and supply and system operation, and Regional Load Dispatch
Centers affiliated to central unit
OTC Over-the-counter
OMEL Spanish Power Exchange
POLPX Polish Power Exchange
PX Power Exchange
RAM Random Access Memory is a form of computer data storage which
allows stored data to be accessed directly in any random order
RMI
The Java Remote Method Invocation is a Java Application
Programming Interface that performs the object-oriented equivalent of
remote procedure calls, with support for direct transfer of serialized
Java objects and distributed garbage collection.
SCADA
Supervisory Control and Data Acquisition is a computer controlled
system that monitors and controls processes that exits in physical
point of view in the electricity sector
SIOM Spanish Market Operator’s Information System
SOAP
Simple Object Access Protocol is a protocol specification for
exchanging structured information in the implementation of Web
Services in computer networks. It relies on XML Information Set for its
message format and usually relies on other Application Layer
protocols, most notably Hypertext Transfer Protocol or Simple Mail
Transfer Protocol for message negotiation and transmission
SMTP Simple Mail Transfer Protocol is an Internet standard for electronic
mail transmission across Internet Protocol networks
SESAM Nord Pool Spot's web-based trading system
SSL Secure Sockets Layer is a commonly-used protocol for managing the
security of a message transmission on the Internet
TEIAS Turkish Electricity Transmission Company
TransCo Transmission Company
TSO Transmission System Operator
USAID United States Agency for International Development
USoA Uniform System of Accounts
XML Extensible Markup Language is a markup language that defines a set
of rules for encoding documents in a format that is both human-
readable and machine-readable
YAL
Load increase or Up-regulation: The situation where a balancing entity
sells energy to the system by increasing its generation or decreasing
its consumption, in line with the instructions issued by Transmission
System Operator
YAT
Load shedding or Down-regulation: The situation where a balancing
entity buys energy from the system by decreasing its generation or
increasing its consumption, in line with the instructions issued by
Transmission System Operator
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1. Introduction
The USAID/HIPP’s vision about the Georgian electricity market development is
described in the Georgian Electricity Market Model (GEMM 2015). The last provides
further steps to be taken by the Government of Georgia (GoG) and various market
participants in order to develop Georgia’s competitive electricity sector in compliance
with the strategy of the GoG. It represents the guide for fundamental but gradual legal
and functional changes in the Georgian electricity market structure in accordance with
the European Union (EU) competitive electricity market principles. GEMM 2015
underlines the creation of an independent Market Operator (MO) responsible for
electricity balancing and settlement services, thereby improving the reliability and
transparency of market operations and functions.
According to GEMM 2015, creation of the MO will be accompanied with gradual
changes in Electricity System Commercial Operator’s (ESCO’s) existing functions.
Currently, ESCO performs the following essential activities in Georgian electricity
market:
1) Sale and purchase of balancing electricity and wholesale trade;
2) Conclude bilateral contracts for electricity supply;
3) Provide guaranteed reserve capacity; and,
4) Electricity export and import.
Steps for the new MO’s establishment will take several phases. Initially, the MO unit will
be established within ESCO. This will define the functional separation of the new MO
from ESCO. That will be followed by issuing a license from Georgian National Energy
and Water Supply Regulatory Commission (GNERC) to the MO entity. Finally, MO will
be legally separated from ESCO and transform itself into a new company by taking all
responsibilities for market operations.
The creation of the MO in the Georgian electricity market requires not only legal and
functional separation from ESCO, but also preparation and readiness of necessary and
sufficient Information Technology (IT) systems and communications for transparent and
uninterruptable information exchange among market participants. It is intended that MO
will operate the Balancing Market (BM) at the first stage while it will be responsible for
transformation of the hourly BM into the Day-Ahead Market (DAM) and later on to
Power Exchange (PX). The BM will provide satisfactory balancing energy to the
Georgian electricity system and ensure that electricity purchase and sales quantities
contracted under bilateral contracts are balanced. Under the BM’s operation, with all
necessary functionalities, MO’s principal functions will be matching bids and offers from
market participants and determination of market clearing price for the balancing
electricity. In addition, MO should set up a trading platform and ensure equal access of
all necessary information related to available generation, electricity flows, bilateral
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Figure 1. Structure of the current Georgian Balancing Electricity Market
ESCO SELL
BUY Generator
Importer SELL
BUY Dist. Company
Qual. Customer
Exporter
contracts among market participants through the close relationship with the
Transmission System Operator (TSO) and the GNERC.
This report examines the existing IT system and its technical processes of ESCO and
outlines the required IT platforms for the new MO. The report is structured as follows:
Section 2 provides an overview of the current Georgian electricity balancing market, its
operational rules and procedures together with description of existing IT system and
technical processes, and the IT platform requirements for the balancing market for
proper information exchange among market participants. Section 3 provides analysis of
data requirements for the MO to be published on its website and comparison of current
information provided by ESCO. In addition, section 3 describes potential future
Georgian wholesale market timetable. Section 4 describes information exchange
framework for competitive electricity trading while Section 5 provides an overview of
existing electricity trading platforms already applied to European competitive electricity
markets, their features and characteristics. Finally, data sources and other relevant
materials are given in the Appendix.
2. Synopsis of Balancing Electricity Trade
Balancing market is complementary of bilateral electricity trade. While bilateral contracts
between seller and buyer define amount of electricity and its price for a specific period,
in practice neither party is able to meet its contractual obligations with perfect accuracy.
2.1 Description of the IT platforms used in the Current Georgian Balancing Market
Currently, the wholesale trade in the Georgian electricity market is executed by ESCO.
It includes sale and purchase of electricity, balancing electricity and/or guaranteed
capacity between the entities authorized for such activity. According to current “The
Electricity (Capacity) Market Rules”, wholesale trade is performed through direct
contracts or through ESCO under the standard terms for direct contracts. The direct
contracts on power purchases are signed between the eligible entities, also between the
eligible entities and transmission or dispatch licensee who in accordance to the
legislation in force are granted with the right to participate in the electricity wholesale
trade.
For the sale of balancing electricity, ESCO uses the weighted average prices which is
calculated using volume and prices on purchased balancing electricity price. Structure
of Georgian balancing market is described in Figure 1.
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Figure 2. Interaction of Balancing and Other Types of Markets
Bilateral Contracts
Foreward Markets
Day-Ahead Market
Balancing Market
Intraday Market
Ancillary Services
Currently, IT systems and communications for the electricity balancing market are
reliable and satisfactory in order to fulfill the market’s functions and responsibilities. The
National Control Center (NCC) of Georgia is located at the Georgian State
Electrosystem (GSE) headquarters and provides control over the operations of
Georgian power system and ensures overall system reliability. The NCC is equipped
with new technologies and enables dispatch center to get the system information online,
ensure remote control and efficient restoration after incidents. The dispatch is able to
get accurate information from substations and, as a result of upgraded database,
operatively reacts to any system faults or emergencies. As for information exchange in
the Georgian electricity system, the dispatch center provides all necessary information
to ESCO, which in turn calculates volume and price for balancing electricity on monthly
basis1.
2.2 Description of a Competitive Balancing Market
In any competitive electricity markets, real time operations of the electricity system
require coordination between the Transmission System Operator (TSO) and the Market
Operator (MO), and also among market participants in order to ensure a continuous
balance between electricity supply and demand. Therefore, the balancing mechanism
enables market participants to execute balancing actions and procure adjustments in
their positions in order to maintain balance and reliability of the system. Balancing
market is an integral part of the overall electricity trading processes. While electricity
trading timetable extends from months to years before the actual trade can take place,
deviations from the settlements can be occurred in real time. Within the balancing
market, buyers and sellers are able to submit bids and offers for their deviations in
bilateral contracts. A general overview of the interaction among balancing and other
types of markets is shown in Figure 2.
1 Georgian State Electrosystem, www.gse.com.ge
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Along with bilateral agreements which basically are long-term, competitive electricity
market also includes a balancing market or mechanism. Furthermore, a fully liberalized
electricity market includes day-ahead, balancing and intra-day markets operated by the
MO. In addition, there are organized markets for procurement of ancillary services.
2.2.1 Day-ahead Market
Day-ahead market is commonly applied in various European countries. It is an
organized wholesale spot electricity market operated by the MO, where purchases and
sales of electricity are conducted on day-ahead basis. DAM provides the opportunity to
the market participants to balance their generations and consumptions under the
obligations of bilateral contract and ensures balance in the system at day-ahead stage.
For example, in Turkey, guiding the activities of the next day's production planning,
demand forecasting is prepared by National Load Dispatch Center (NLDC) of Turkey.
Hourly demand forecasting consists of the following areas:
Total Load in Turkey: the consumption of the load corresponds to the projected
total amount of supply to be provided in MWh;
Foreign Purchases: Imported amount of load in MWh;
Foreign Sales: Exported amount of load in MWh;
Other Manufacturing: production facilities which are not providing balancing
electricity – MWh.
Demand forecast prepared by hour until 09:30 AM using Market Management System
(MMS) announced to market participants. Announcement of demand prediction using
MMS, NLDC will display in "Load Forecasting Plan Entry”.
2.2.2 Balancing Power Market
Once day-ahead market is closed, the MO issues instructions related to market
participant’s bids and offers. The Balancing software is the software that is required for
the operation of the BM. In addition, depending on the considered market, the software
satisfies the adopted Market Rules.
Description of the Balancing software in TEIAS: The use of the load balancing unit
in real-time is achieved by reducing (down regulation) or increasing (up-regulation)
production. To do this, the real-time load balancing entities load increase (YAL) / load
shedding (YAT) are given instructions. In other cases, the balancing units listed in order
of price list, the most economical balancing entity that provides technical requirements
is given. Instructions are given hourly and are based on balancing units that are marks
with light and dark gray colors according to price stabilization arraignments.
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When there is an energy deficit in the system, the balancing units in the correct order
from low price to high price provide YAL instruction. Selection of balancing units and
their prices is done:
YAL capacity that is too low,
When the case when a balancing entity is unable to meet the needs of upload
speed, the next balancing unit can be selected.
When there is a surplus in the system, the balancing units in the correct order from low
price to high price provide YAT instructions based the most high-priced balancing unit
which is determined by YACHT.
All of the real-time YAL / YACHT instructions on the balancing mechanism participant or
Regional Load Dispatch Center shall be notified by telephone. Instructions should also
be reported to the phone records. Records: (i) prior to the registry manually recorded
and the records manually entered MMS, or (ii) are carried out by entering the MMS
directly to the instructions.
Real time balancing via MMS is performed in the following manner:
In the MMS, all balancing entities submit their YAL and YAT and determined time frame.
MMS orders them by instructions’ the requirements such as maximum and minimum
price quotas for each MWh. Finally, selections of necessary balancing units are
conducted via MMS by “selection button”. Furthermore, by clicking “Daytime” button,
MMS will display the amount of electricity determined for day-ahead market and
balancing market (YAL and YAT volumes), list of balancing entities and their bids/offers.
However, MMS also allows the MO to determine hourly specifications of each balancing
entity. As a result of the instruction, the level of load balancing works under unit "Target
Level". All balancing entities are monitored through the SCADA system.
In case of emergency instructions, system participants are being notified verbally and
via MMS. For emergency instructions, instruction in the home screen field is marked
urgent.
2.2.3 Intraday Market
Intraday Market is executed between DAM and the balancing power market. It is one of
the major components of balancing mechanism. Main idea of intraday market is to
reduce imbalances in the system via creating additional purchase and sale options for
the market participants. After the operations on the DAM are competed, market
participants are able to readjust their generation and consumption in intraday market.
Intraday market is operated until a couple of hours before the actual delivery of
electricity.
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Intraday market is widely applied in Europe electricity markets and many non-European
countries are trying to implement it in their electricity system.
One example of Intraday markets’ is Elbas. It is operated in Nordic power exchange
where electricity trade is conducted one hour before actual delivery hour. It is used for
electricity balance adjustment purposes while Elbas enables market participants to
continuously adjust their day-ahead production or consumption plans. The IT
mechanism for the intraday market is performed under the Balancing software.
3. Market Data Requirements for the New Georgian Market Operator
Development of a competitive electricity market requires non-discriminatory and
transparent access of information for all market participants. As a market operator in the
electricity sector, its main responsibility is economic management of the system,
implying the administration, operations and settlements of the various markets in the
sector. The new Georgian MO in the future will be responsible to:
Operate day ahead, intraday and balancing market in compliance with
the provisions of new regulations and relevant legislation;
Prepare and publish internal rules related to any market operations;
Review and conclude any dispute that may arise during day ahead,
intraday and balancing market activities;
Receive and accept market participants’ bids and offers;
Determine market clearing price and volume of electricity assigned on
each market;
Actively coordinate with TSO;
Publish information regarding market results; and,
Propose enhancements of the organized wholesale electricity markets
according to the Market Rules;
Consequently, MO will be obliged to publish all relevant information on its website in
order to support proper functioning of power system and eliminate market distortions.
For the effective functioning of Georgian power system, all market participants need to
forecast their production and consumption in accordance to electricity supply and
demand, and available transmission capacities. Thus, market information provided by
the MO is largely used by the participants for the analysis of forecasted generation and
consumption levels.
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3.1 Market Data Provided by ESCO
Currently, ESCO is responsible for the publication of electricity market data. According
to the existing structure of the electricity sector, ESCO provides the following
information to all market participants:
1. Energy balances:
a. Total generation by month according to power plants;
b. Plant Losses and Self-consumption by month;
c. Total consumption by month according to distribution companies and
direct customers;
d. Transportation Expenses by month;
e. Monthly Import-export.
2. Electricity trading (Power Generation/Selling and Consumption/Purchase);
a. Generation/sale
i. Total import by month based on countries;
ii. Volumes of electricity generated by TPPs and HPPs by month;
iii. Total volume of electricity sold to ESCO;
b. Consumption
i. Volumes of electricity consumed by distribution companies and
direct customers;
ii. Total monthly export based on countries;
iii. Totally Delivered and Purchased Electricity by market participants
from ESCO.
3. Purchased balancing electricity:
a. Volume of Balancing Electricity Sold through ESCO by month, year.
4. Sold Balancing electricity:
a. Volume of Balancing Electricity Purchased from ESCO.
5. Weighted Average Tariff of the Balancing Electricity Sold by ESCO by month and
year.
6. Price of Balancing Electricity purchased by ESCO from deregulated power plants
by month, year.
7. Guaranteed capacity:
a. Sources of Guaranteed Capacity;
b. Guaranteed Capacity Buyers;
c. Guaranteed Capacity Stand-by Capacity Price per kWh.
3.2 Market Data Typically Provided by the Market Operator
Administration of various types of markets by MO requires high quality coordination and
communication via IT platforms among electricity market participants in a timely
manner. On the other hand, market participants’ actions and decisions for electricity
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trade are highly depended on the market data publish by MO’s website. Below is the
description of data which is typically published by the MO.
1. Market Rules
2. Operation Procedures
a. Registration and Withdrawal of Market Participants
b. Metering System Registration and De-Registration
c. Meter Data Collection and Aggregation
d. Billing, Invoicing and Invoice Disputes
3. Procedures to participate in power exchange
a. Registration and Withdrawal of Market Participants
b. Market Rules Accession Agreement
c. Registration Form
d. Withdrawal Form
4. Market Data
a. Volumes of balancing power by hour
b. Hourly Market clearing volume
c. Hourly Market clearing price
d. Price ranges/ Tariffs
e. Off-peak, Peak and base prices and volumes
f. Historical data minimum 2 years
g. Weekly, Monthly reports
3.3 Comparison
Main difference between data provided by ESCO and an MO is the time frame. Data
currently provided ESCO is monthly based while data provided by international MOs are
hourly based. Furthermore, ESCO provides additional data related to its current
activities (export, import, guaranteed capacity). In general, ESCO’s website is very
informative and provides useful information for market participants and other interested
parties for the current market performance.
3.4 Organized Wholesale Market Operations Timetable
The organized wholesale market operations timetable sets out the responsibilities and
requirements, due dates and times, frequency and period covered by information to be
provided to or from TSO, MO and market participants in relation to the operation of the
day-ahead and balancing markets. The following timetable represents the draft proposal
for the processes in the future Georgian wholesale market operations and used only for
visualization purposes2.
2 For the market operations timetable we use Australian Energy Market Operator’s spot market operations timetable
and day-ahead and balancing market processes from Turkish Electricity Market Balancing and Settlement Regulation.
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3.4.1 Offers and Bids
Day Time of
Day Event
Provided By
Provided To
Period Covered
Frequency Comments
Anniversary of market start
Provide standing data regarding financial and legal matters
Market participants
MO Next
financial Year
Annually
Provide details of any changes. May include tolerance levels
DAY -2 10:00
Capacity notification for DAY 0:
Self-commitment / de-commitment times
Capacity profile
Energy availability
Rates of change
Market participants
MO DAY 0 Daily
MW capacity schedules for each generation or load units that specifies the MW available for each of the 48 trading intervals in the trading day
DAY -1 10:00 Bidding closes for DAY 0 in the DAM
Market participants
MO DAY 0 Daily
Market participants submitting bids and offers to MO which contain MW quantities and prices for each trading interval for DAM
DAY -1 11:30
Evaluation of offers and bids and determination of system marginal price and MW quantity
MO Market
Participants DAY 0 Daily
System marginal price and MW quantities are determined for each hourly intervals for DAY 0
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DAY -1 12:30 Consistency check and objections to market results
Market participants
MO DAY 0 Daily
Market participants check whether or not their bids and offers are consistent with the market results and may object to the Market Operator regarding the inconsistent instructions.
DAY -1 13:00
Evaluation of Objections and finalization of market results in DAM
MO Market
Participants DAY 0 Daily
Market Operator evaluates the objections and if necessary, re-determines the market results to the related market participants
DAY -1 16:00
Notifications of available capacity and balancing market bids and offers after DAM closed
Market participants
MO DAY 0 Daily
Market participants participating in balancing markets submitting bids and offers to MO which contain MW quantities and prices for each trading interval
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3.4.2 Short-term and Medium-term Forecasts for System Adequacy
Day Time of
Day Event
Provided By
Provided To
Period Covered
Frequency Comments
Ongoing
Submit data for short term forecast:
Scheduled generating units, scheduled load and scheduled network service availability;
Network outages.
Market participants,
network service
providers, MO
TSO 1 week Every one
week
Forecast from generating and load units in hourly time intervals and possible transmission outages from network service providers
DAY -1 17:00
Control, evaluation and confirmation of balancing market bids and offers
MO, TSO Market
Participants DAY 0 Daily
MO and TSO eliminates predictable energy surplus or deficit in the system regarding to DAY 0, evaluates balancing market bids and offers and issues instructions for the accepted offers and bids
DAY 0
Up to when up or down regulation is needed
Issue of up and down regulation instructions
MO, TSO Market
Participants DAY 0 Daily
TSO issues up and down regulations for system balance purposes based on bids and offers from market participants participated in balancing market in DAY -1
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Ongoing
Submit data for short term forecast:
Scheduled generating units, scheduled load and scheduled network service availability;
Network outages
Market participants,
network service
providers, MO
TSO 1 to 24 month
Every month
Forecast from generating and load units in hourly time intervals and possible transmission outages from network service providers
3.4.3 Pre-dispatch and Dispatch
Day Time of
Day (draft) Event
Provided By
Provided To
Period Covered
Frequency Comments
DAY -1 09:30
Determination of available transmission capacity and daily demand forecast
TSO MO/ Market Participants
DAY 0 Daily
Pre-dispatch schedule and demand forecast are provided in hourly time intervals
Day 0 Every 15 minute
Dispatch (up and down regulation)
TSO MO/ Market Participants
Next dispatch interval
Every 15 minutes
Dispatch is conducted according to bids and offers for balancing power and ancillary services
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3.4.4 Market Information
Day Time of
Day (draft) Event
Provided By
Provided To
Period Covered
Frequency Comments
First Tuesday of the month
12:00
Publish outcome of medium term forecasts
MO/TSO Market
participants 1 to 24 months
Monthly
Each Tuesday
12:00 Publish outcome of short term forecasts MO/TSO
Market participants
1 week weekly
DAY -1 09:30
Publish available transmission capacity and daily demand forecast
MO/TSO Market
participants DAY 0 Daily
DAY -1 13:00 Publish system marginal price and MW quantities
MO Market
participants DAY 0 Daily
DAY -1 13:00
Publish final system marginal price and MW quantities after objections, if any
MO Market
participants DAY 0 Daily
DAY +1 After the end of DAY 0
Publish for DAY 0:
Ancillary service prices;
Hourly market clearing price and volume for DAM
Hourly price and volume for balancing market
Total generation and consumption in hourly time intervals
Share of bilateral contracts
MO Market
participants, public
DAY 0 Daily
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Network losses and constraints
Price ranges/ Tariffs
Off-peak, Peak and base prices and volumes
DAY +1 After the end of DAY 0
Publish for DAY 0, export-import flows
TSO Market participants
DAY 0 Daily
Ongoing
Publish the historical data on market operations; weekly and monthly reports on market diagnostics
TSO, MO Market
participants, public
Minimum 2 years
Daily
Note:
Terms “DAY 0” refers to an actual trading day and “Day ±x” refers to the calendar day relative to the actual trading day. The relativity is
indicated by a plus or minus (after or before DAY 0, respectively).
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4. Information Exchange Framework for Competitive Electricity Trading
Liberalization of the electricity market requires not only institutional changes and
restructuring, but also massive information and data exchange among market
participants in order to support system operations, security and reliability, accounting,
and settlement processes. As the level of electricity market opening increases, the
number of market participants also increases which implies increased transactions and
information exchange in the system. Consequently, integration and dissemination of
these information, and data among market participants is crucial issue that requires
powerful and sophisticated information infrastructure and trading interfaces to automate
these processes.
Many European countries, where electricity market liberalization has already taken
place, have developed efficient applications for information exchange supporting
competitive interaction among market participants. Based on European countries’
experience, Extensible Markup Language (XML) has been adopted as a form of
information exchange in electricity markets due to its advantages for the document level
data exchange through the internet.
Further liberalization of Georgian electricity market also needs similar information, data
exchange methodologies and interfaces to enable effective relationships among market
participants and achieve successful operation of Georgian electricity market in the
competitive market framework. Therefore, the XML based information exchange
structure is considered as a cost effective and efficient approach for computer-based
information exchange within various types of trading platforms among market
participants. Furthermore, the development of computer-based information exchange
will reduce paper work related to electricity market functioning. In addition, it will
contribute to the improvement of electricity market operations in terms of business-to-
business relationships via replacing costly processes of data exchange by modern and
applied practices.
4.1 Description of XML-based Information Exchange
Development of IT innovations over last decade enabled businesses to transport, store
and exchange massive amount of data which is supported by internet and web-based
technologies.
XML, a simple and flexible text format for information exchange through the Internet,
attracted not only big companies but also small and medium size companies in order to
simplify their business operations in much more inexpensive way. XML is a markup
language that defines a set of rules for encoding documents in a format that is
both human-readable and machine-readable. It lets various types of computer
applications to communicate regardless of their programming model. Consequently,
many XML-based applications have been developed for various purposes in many
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industries. The electricity sector is one of the examples of using XML-based programing
for information and data exchange.
XML is very similar to anther markup language HTML. But unlike HTML that defines a
fixed vocabulary of tags, rules and orders for creating web pages, XML enables
developers to define their own tags and rules which makes it simple to fit and consider
electricity sector’s specific requirements in the programing processes. Example of XML-
based information exchange is shown in Figure 3.
As can be seen from Figure 6, an electricity producer uses its computer application to
generate XML-based information and sends it to consumer. On the other hand, the
consumer receives the information and sends back the acknowledgment to the
producer.
4.2 Operations in Electricity Sector as Business Processes
The activities in the electricity sector in terms of business processes can be various
types starting from electricity generation, transmission scheduling and wholesale trade
to electricity supply to end-users. The efficient performance of those business
processes require a lot of data and information exchange which can be executed
through computer applications and platforms. These computer applications and
platforms are different based on market participants’ roles and functions. The roles and
functions of each market participants’ in the new competitive Georgian electricity market
related to information and data exchange are shown in Figure 4.
Introduction of competition in the new Georgian electricity market implies to allow every
market participant non-discriminatory and transparent access to all the necessary data
that is required for sophisticated business processes and transactions among them. As
already mentioned above, this requires establishment of IT environment within its
hardware and software systems. Generally, the information exchange for electricity
business processes among market participants can be summarized as following:
Figure 3. Data Exchange between Producer and Consumer Based on XML Technology
Receiver Local
Application
Database
Consumer
XML Document
Local Application
Sender
Database
Producer
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Information Exchange
Framework via Computer
Applications
TSO: - Meter Data Management
- Ancillary Services - ATC Scheduling - ATC Auctioning
- 10-year Projection Plan - Accounting Data - Legal Documents
- AMR - Real Time Balancing
- Publishing Market Information
- DAP
GenCos: - Production Data
Management/Planning - Accounting Data - Trading Platform
- Reporting
Regulator: - USoA
- Market Monitoring - Tariff Setting
- Licenses - Perf. Indicators
Market Operator: - BM, DAM Platform - Accounting Data - Legal Documents
- Reporting - Publishing Market
Information -DAP
DisCos/Retailer: - Customer Data
Management - Meter Data Management
- Accounting Data - Trading Platform
- Reporting
TransCos: - Transmission
Capacity Planning - Accounting Data
- Reporting
Figure 4. Business Processes in New Georgian Competitive Electricity Market
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Exchange of information among all market participants including big, medium
and small participants that must be flexible;
Market participants’ registration;
Electricity trading between generators and suppliers;
Active role of system operator as it defines available transmission capacity and
keeps system in balance;
Settlement and billing of market participants;
Meter reading and sending the meter information (production and consumption)
to the relevant market participants;
Reporting of planned electricity schedule from and out of distribution area to the
system operator for congestion management;
Market monitoring by the energy regulatory commission;
Reporting by all market participants (financial statements via USoA and other
required reports) to the regulatory commission.
This electricity business processes can be structured by various computer applications
using XML-based data exchange format connecting all subsystems of the entire power
system. Electricity Market Information Network can be broken down into TSO
information network subsystem, MO information network subsystem, DisCos’
information network subsystem and TransCos’ information network subsystem and etc.
Thus, all of these market participants should have their own information systems
installed in their local places while overall information exchange network should be
based on coordinated interaction of all market participants.
Information exchange between market participants can be handled by means of a
message passing paradigm. A message is a structured piece of information sent from
one subsystem to another over a communication channel. In order to send and receive
XML messages, various mechanisms have been developed in order to integrate these
subsystems. Such mechanisms can be Common Object Request Broker Architecture
(COBRA), Java Remote Method Invocation (RMI) and Distributed Component Object
Model (DCOM). These mechanisms require binary data types, remote and server
applications.
4.3 Communication Protocol
In order to transmit market participants’ XML messages, the IT server requires reliable
communication protocols. Many XML messaging protocols have been developed and
the Simple Object Access Protocol (SOAP) is the most popular and efficient among
them. SOAP is a protocol specification for exchanging structured information which
relies on XML-based message format. Generally it uses HTTP or Simple Mail Transfer
Protocol (SMTP) for message negotiation and transmission. Specifically, SOAP can:
Use XML for information exchange;
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Use HTTP as information transport protocol;
Enclose massages in envelopes;
Send/Receive massage protocol;
Support error/fault responses;
Extensible protocol that can be evolved;
Overcome limitations of RMI, COBRA and DCOM;
Pass through the firewall (Security Issues).
Interaction of market participants and information exchange process through SOAP
protocols using XML-based messaging is shown in Figure 5.
The establishment of IT environment for such information exchange framework and
applying XML-based information exchange enables market participants to exchange
information and data with minimum human interactions. Through the HTTP and SOAP
protocols, XML supports any type of data exchange, extraction, delivery, and
management. At the same time, new participants can be easily added to the information
exchange network by installing necessary interfaces for them. While the number of
participants in the new Georgian competitive electricity market is intended to increase in
XML (SOAP) XML (SOAP)
XML (SOAP)
XML (SOAP)
TSO
Local IT System
Messaging Server
Loca
l IT
Syst
em
Ma
rke
t P
art
icip
an
t n
Internet
Loca
l IT
Syst
em
Ma
rke
t P
art
icip
an
t 1
Me
ssag
ing
Serv
er
Local IT System
Messaging Server
Market Operator
Me
ssag
ing
Serv
er
Figure 5. Information Exchange Using XML technology
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the future, XML structure of information exchange will easily allow their integration into
the market.
5. Overview of Existing Electricity Trading Platforms
Through the evolution of competitive electricity market structure, various electronic
platforms have been developed for electricity trade over the last decade. Generally, the
main concept of electricity trade is unchanged in each trading platform. However, there
is a slight difference which is attributed to the specification of concrete country’s
electricity system’s structure. Figure 6 depicts electricity system and general design of
market participants’ interaction for electricity trade from an IT systems point of view.
Trading platform is an electricity trading software operated by the MO. Via this
trading platform, MO receives information from market participants on submitted
bids and offers, and calculates market clearing price and quantity of electricity for
each hour.
Clearing platform is clearing software that is also operated by the MO. It is mainly
used for financial settlements and clearing purposes.
Source: NASDAQ OMX
Figure 6. Market Participants Interaction under a Competitive Market
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Web trade is a web based trading application for the market participants. They
can submit their bids and offers through this web trade application. The last
connects through ordinary internet access and uses RSA SecurID for
authentication. It is a mechanism developed by IT and security developers for
performing two-factor authentication for a user to a network resource. The RSA
SecurID authentication mechanism consists of a "token" — either hardware (e.g.
a USB dongle) or software (a soft token) — which is assigned to a computer user
and which generates an authentication code using a built-in clock and the card's
factory-encoded random key.
Browser – any internet browser such as Internet Explorer, Mozilla Firefox,
Google Chrome, etc.
FDS - File Delivery Service or file based market data
GW – Gateway
GCF - Genium Consolidated Feed
5.1 Italian Power Exchange
Electricity trading in the Italian power exchange is operated by the Italian market
operator, Gestore dei Mercati Energetici (GME). GME’s Electricity Market consists of
Spot Electricity Market (MPE), Forward Electricity Market (MTE) and Platform for
physical delivery of financial contracts concluded on IDEX (CDE).
The Spot Electricity Market is the set of the Day-Ahead Market (MGP), the Intra-Day
Market (MI) and the Ancillary Services Market (MSD):
On the IT side, GME’s provides reliable and flexible system-to-system interconnection
between the market participants’ and its information system via GMEWS Web Service
interface. Design of interaction with the Italian electricity market information system
installed at GME is shown in Figure 7:
Example A: old model Example B: New model with smartcard functionality
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The market participants of the Italian electricity sector can access the web server
through the Internet with Browser User Interface (BUI). This application enables the
players to submit queries for market data as well as bids and offers. Authentication to
GME’s Web Server takes place by using a digital authentication certificate (RSA
SecurID). Offers and bids may be submitted both on line via the web form and by
uploading appropriately structured XML files. The GME Web Service (GMEWS) was
developed to provide market participant applications with a programming interface to
communicate with the GME’s system. The module implements a web-service type
interface based on Simple Object Access Protocol (SOAP) messages and https
transport. The following diagram on Figure 8 shows the operation of the GMEWS
module:
GME Web Service allows access to a subset of functions that the user may select by
connecting to GME’s system web portal. As for the portal access, the interaction via
GMEWS is via the HTTPS protocol - to protect the transmitted data - and is subject to
SSL client authentication on the basis of a digital certificate - to check the identity of the
user to be able to invoke the functions of GMEWS, the client application should
authenticate itself to GME’s web server (hosting GMEWS) by sending an SSL client
digital certificate and setting up an SSL connection to it.
Figure 7. Design of Information System at GME
Figure 8. Operation of the GMEWS Module
Source: GME
Source: GME
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5.2 Spanish Power Exchange
Another example of a well-developed IT system related to a power change market is the
Spanish power exchange is administered by OMEL S.A., Spanish market operator.
Currently, there are day-ahead and intraday markets in Spanish electricity market.
Operation in Spanish power exchange is conducted through the internet. All market
participants can access to the power system via web servers.
The Market Operator’s Information System (SIOM) is configured from an external
standpoint with respect to the MO, as the access tool used by market participants to
participate and obtain information from the electricity market. Internally, SIOM is
configured as the access tool used by the different departments of the MO to store,
process and access information generated by the market. Main functions of SIOM is to
Allow agents to present bids on the daily or intraday electricity markets;
Match the different markets;
Exchange information with the TSO in connection with the market and the
different ancillary services;
Provide market participants with the necessary information on market
results;
Carry out market settlements, manage invoicing data, charges and
payments made by the company and agents, and provide results to all
market agents;
Automatically generate reports on the operation of the market;
Provide the operating company with value added information on the
behavior of the market;
Deal with claims presented by agents in connection with matching or
settlement results.
In order to properly perform these functions by SIOM, it must satisfy following
requirement:
Functional reliability and robustness, providing for correct operation at all
times;
Redundancy in equipment, communications and software, giving high
functionality to the system;
Flexibility in equipment, communications and software used, ensuring the
proper functioning of the system in the event of simple failures in any of its
components;
Application scalability, allowing the system to evolve as new agents enter
the market;
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System security, preventing access to the market by external elements and
guaranteeing the confidentiality of information, pursuant to existing
regulations.
SIOM has started the operation in Spanish power market in 1998, while SIOM2 was put
into operations since 2004. It was based on SIOM architecture but also incorporated
new IT technologies such as J2EE, XML and web services which in turn provided new
mechanisms for the market participants to easily participate in Spanish electricity
market and access all necessary information and data of market operations.
Consequently, SIOM2 maintained SIOM’s functions although enhanced with the
following functions:
Provides a new interface application-to-application, by using web services,
complementing the actual SIOM navigator access and allowing market
participant application integration with their electricity market operations.
Using XML as the new information exchange format, following the actual
trends in technology international standards.
Includes the digital signature standard XML-Signature in the operational data
sending and modification transactions, providing added functionalities for
auditing and verification to those provided by SIOM.
The new web services access interface (B2B) is the more appropriate for those market
participants willing to automate the connection to OMEL directly from their own local
systems. The actual connection method using Internet and requiring human
intervention, as the one provided with SIOM, is still operational and complements the
new web services.
Spanish MO’s system architecture
Spanish MO’s system is built on database centered application indicating that
information and data exchange is conducted through the database. All market
processes such as market clearing price, settlement, bids and offers are stored in the
database and all information necessary for market participants can be accessed via
established orders from the same database. All market participants can easily access
SIOM however it is secured by digital certificate and a cryptographic keys pair. Figure 9
represents graphical representation of SIOM’s architecture including its subsystems and
interaction between market participants.
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These subsystems of SIOM’s architecture have following functions:
Database is the main part of SIOM. All information provided by market participants or
TSO is stored in the system database together with the real-time information and the
user responsible for storing this information. Database allows market participants to
access all information from the database, their own and all that are considered non-
confidential.
SIOM-AM subsystem is the application for market participants to access SIOM
interface. It is web-based application allowing market participants to use data to send or
request information as well as send bids and offers for electricity trade, matching and
settlement results and analyze anytime the status of the different markets managed
both by the electricity market operator OMEL or by the TSO.
Price setting subsystem is responsible for producing the matching between the
purchasing and selling bids for both the daily and hour-ahead market. The results of the
matching process are accessible by market participants. In spite of its complexity, price
setting algorithm is capable to generate market clearing price results in about 10
seconds for each session.
Settlement subsystem is responsible for electricity market settlement. Based on daily
and intraday market results managed by MO, settlement subsystem assigns the
collection rights and payment obligations corresponding to all the market agents.
Figure 9. SIOM’s System Architecture
Source: OMEL
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Information on settlement results can be accessed by all market participants in order to
verify and define aggregated value of their bids and offers.
External interfaces subsystem provides and receives all market information from
TSO and other external entities. In this case, SIOM is mainly connected to the
information systems of the Spanish and Portuguese System Operators.
Market operator subsystem is used by the OMEL staff in order to facilitate operations
in Spanish power exchange. It allows OMEL to access SIOM-AM’s and TSO’s
information, monitor correct functioning of all information systems and infrastructure
and generate reports and statistics on market results for the publishing purposes.
While information exchange under SIOM is done via web services it requires specific
applications for the market participants. Consequently, OMEL provides market
participants SIOM2-client application allowing them to perform electricity trade in
Spanish power exchange. SIOM-AM/SIOM2 client application is fully based on internet
using dynamic HTML pages, JAVA and JavaScript code and specific plugins. For the
hardware and software requirements market participants should satisfy following
requirements:
Hardware
The SIOM2-client application must be able of deploying web services using the
existing standards. The use of the digital certificate issued by OMIE is mandatory
for the invocation of services and the digital signature of the transactions.
Connection to SIOM with the described methods.
Smart card reader connected to the PC (Market Access Security Card). This can
be acquired through a provider or requested to OMEL, which will deliver it and
send the bill after it. This smart card reader must follow the PC/SC standard
(Personal Computer/Smart Card).
Software
In case of using the SIOM2 client application, Java Virtual Machine JRE 6 is
required.
Connection to SIOM with the described methods.
Software required by the smart card reader (delivered with the smart card reader)
Gemplus 5.1 or Gemplus 6 with Windows 7. In order to access SIOM Websites,
personal security certificate is needed. It is issued by OMIE on a Gemplus smart
card or file. It requires Gemplus software to be installed in the market
participants’ PCs In case of using a certificate issued in a
Communication access
From the communications point of view, SIOM allows each market participants based
on their needs to choose options for communication access. Market participants may
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have alternative channels for communicating with the system. These are protected
against eventual failure of the default communication procedure. In order to ensure
system availability, all input points are duplicated on SIOM, thus guaranteeing the
maintenance of communications in the event of simple faults in any access channels or
equipment.
The SIOM system architecture has been designed as a three layer structure, from the
hardware point of view:
Access network, where all the communications equipment allow connections
to market participants and TSO via the different access types, i.e. Internet,
ISDN, leased lines
Web network, where the web servers are located for either navigator access
or web services access.
Database network, where the storage equipment resides (data base and
files).
Between each layer there exist security equipment (firewalls) to manage and control the
connections between services located in different layers and therefore, protecting
undesired accesses to services or information. Figure 10 represents SIOM’s system
configuration and communication access.
In terms of safety procedures, market participants allowed to access SIOM system
must be exclusive personnel who are authorized for this purpose. In order to join
Spanish power exchange, Spanish MO requires from market participants to provide
corresponding notifications with details and rights of their personnel who are authorized
to access SIOM. Such personnel must have certificate that identifies their experience in
electricity trading ensuring that they can carry out appropriate actions in SIOM’s system
after accessing it.
Figure 10. Configuration of SIOM’s System and Communication Access
Source: OMEL
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Based on SIOMs architecture, market participants can choose several communication
approaches:
Internet connection: There are two internet connection lines within SIOM. All market
participants can access the SIOM via simple internet communication through an
Internet provider. In this case, access speed depends mainly on the market
participants’ connection to the network through the provider and on the behavior of the
network itself. Given its low cost, this is the main procedure used by agents
representing a small-average number of bid units to access the market. There are no
special requirements except the requirements relating to market access via the Internet.
Connection by RTB modem: SIOM includes two independent banks of RTB input
modems. In this case market participants with standard RTB modems are able to
access the market. The access speed depends on the specifications of the modem in
question; SIOM uses modems with speeds of to 57,600 bps. This procedure can be
used by agents representing average-small numbers of bid units and who do not need
to be permanently connected to the system. It is very useful as an emergency
procedure in the event of normal communication failures (for example, Internet). In
order to be able to connect to SIOM by RTB modem, agents must inform the MO
accordingly using the corresponding request form. Once the connection has been
authorized, and after performing the relevant tests, communication can be established
when the agent wishes.
Connection by ISDN equipment: SIOM also includes ISDN input equipment for the
connection and market participants equipped ISDN data line can access the market.
Access speed is almost 64 Kbps. This procedure can be used by market participants
representing a high-average number of bid units who require a fast connection but
without incurring in the cost of a dedicated connection line. It may be useful as an
emergency procedure for agents with digital lines or as a normal procedure for market
participants who require more speed in order to exchange information. In order to be
able to connect by ISDN, market participants must notify the Spanish MO accordingly
using the corresponding request form. Once the connection has been authorized, and
after performing the relevant tests, communication can be established when the market
participants wishes.
Connection by dedicated line: SIOM offers market participants the option of
contracting up to two dedicated end-to-end communication between their installations
and the MO. Once both ends have been configured, access to the market is direct.
Access speed depends on the type of line contracted. This procedure can be used by
market participants representing a large number of bid units wishing to contract a
permanent connection with the market that provides them with important features. It is
recommended that this connection be accompanied by some of the options described
previously to provide coverage for any communications failures that may occur. In order
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to be able to connect to SIOM using a dedicated line, market participants must notify
the Market Operator using the corresponding request form. Once authorized, the
connection lines will be installed and configured. The market participants will be able to
access the market using this channel as soon as the connection is up and running and
after performing the relevant tests.
5.3 Nord Pool
Current market structure of Nord Pool incorporates two complementary markets, Elspot
and Elbas, for electricity trading. Together they play an essential role in providing a well-
functioning power market in northern Europe. Elspot market is for day-ahead trading
while Elbas is for intraday trading.
Elspot is the world’s largest day-ahead market for power trading which operates in the
Nordic and Baltic region. For the electricity trade, market participants place their orders
through Nord Pool Spot's web-based trading system, SESAM. Settlement of all orders
in Elspot is based on area prices. SESAM can be easily accessed and administered by
market participants, place their bids and offers as well as receive results for the day-
ahead power market. For the security issues, market participants can access SESAM
Web by using a Digipass security token combined with a personal password. All
customers receive one or more tokens associated to different user groups with different
user rights.
Intraday market Elbas in Nord Pool is used for electricity balance adjustment purposes.
It enables market participants to continuously adjust their day-ahead production or
consumption plans. For system security, Elbas also uses 6 digit Digipass security code
and personal password. Elbas uses AMQPS (SSL encrypted AMQP protocol) for
information exchange between the workstation and server side application. In order to
run Elbas, it requires:
Workstation with minimum 2-core 2GHz CPU, 2 GB RAM. Modern workstation
with Intel Core i5 or newer architecture and 4 GB RAM is recommended for
optimal performance.
Java Runtime Edition, JRE6 is required. Java7 is not yet supported.
2 Mbps Internet connections.
5.4 Polish Power Exchange
Polish power exchange is operated by POLPX S.A. As a one of the major entity of
polish power market POLPX is responsible for electricity market operations. Currently
its key areas of operations are:
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Day Ahead Market (DAM);
Intraday Market (IDM);
Day Ahead Market gas (DAMg);
Commodity Forward Instruments Market with Physical Delivery (CFIM);
Commodity Forward Instruments Market with Physical Delivery gas
(CFIMg);
Property Rights Market for Renewable Energy Sources and Co-generation
(PRM);
CO2 Emission Allowance Market (EAM).
As a result of competitive structure of polish electricity market, it participants’’ have wide
range of benefits:
Equal access to market information
Clear, transparent and consistent rules for conclusion of commercial
transactions for all participants
Reduction in the costs of negotiation (automation of the best offer
searching process)
High level of flexibility in conclusion of transactions
Effective management of commercial risks, resulting from fluctuation of the
electricity demand price and volume.
For the electricity trading system Polish power exchange uses modern trading system
CONDICO delivered by NASDAQ OMX. NASDAQ is the world's largest developer of
trading and clearing systems and its trading platform is already applied to more than 40
power exchanges. Since 2008, polish power exchange uses CONDICO trading
platform, which is continuously evolving and modifying based on market participants
feedbacks and recommendations. CONDICO trading platform has following features:
Full compatibility with Microsoft Excel (pasting predefined orders directly
from the Excel spreadsheet and copying of the previously submitted
orders into the spreadsheet)
Quick modification of orders submitted to the market (including "set as
best" function)
Quick, one-button cancellation of all orders
Possibility to track several markets at once, on the market preview screen
Checking market depth directly on the market preview screen
Choice of columns displayed on the market preview screen
Two language versions
Setting price and volume limits on orders by the broker
Adding a new functionality for submitting orders and OTC transactions -
contextual menu
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Adding the functionality to activate orders from the market screen
"Price hint" function - indication of the price, at which a particular volume
will be realized
Displaying of instruments' short names
Additional functionality for editing the price and volume in the order
submission window
Power trade clearing
Disseminate information to connected clients about new, amended and
cancelled orders and related market data changes. Information is
transparent to all clients but orders are anonymous.
As soon as a deal has taken place at CONDICO trading system, the deals are
transferred to the Clearing system for management of trades, positions, margins, and
deliveries. All deals entering the Clearing system are stored in the deal capture
database of the Clearing system. The deal capture database is a master database for
all deals and trades, and thereby the base for all calculations in the clearing system
including positions, settlement, and notifications. The information exchange mechanism
between the trading system and the clearing system is based on XML file transfer.
Figure 11 describes CONDICO trading system interfaces for market participants.
SAPRI auction engine is subsystem of CONDICO Trading system which is used for
day-ahead market operations. In the framework of SAPRI auctioning engine market
participants submit bids and offers anonymously and the price formation is done in an
auction in which all bids are gathered at the same time and the balance price that is
Figure 11. CONDICO trading system interface for market participants
Source: NASDAQ OMX
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valid for all trades are determined. SAPRI also supports the two-sided bidding auction
model and the solution is in use in several power markets both in Europe, India, and
Africa. The SAPRI trade client is an easy to use application that enables member to
trade on the day-ahead auction market, view the public market results (prices and
volumes) as well as view member specific results. The client is supported by Microsoft’s
zero deployment frameworks which imply that a new version of the client is downloaded
automatically to the end-user3.
3 NASDAQ OMX Commodities
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Appendix
Source materials used in this report can be found at the following locations.
1. Hydropower Investment Promotion Project, www.hydropower.ge
2. NASDAQ OMX Commodities, www.n2ex.com
3. Polish Power Exchange, www.polpx.pl
4. Spanish Power Exchange, www.omel.es
5. Electricity System Commercial Operator. www.esco.ge
6. Nord Pool, www.nordpoolspot.com
7. Italia Power Exchange, www.mercatoelettrico.org
8. Georgian Electricity System Commercial Operator (ESCO), www.esco.ge
9. Georgian State Electrosystem (GSE), www.gse.com.ge
10. Australian Energy Market Operator (AEMO), www.aemo.com.au
11. Electricity Market Regulatory Authority of Turkey, www.emra.gov.tr
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USAID Hydropower Investment Promotion Project (USAID-HIPP)
Deloitte Consulting Overseas Projects - HIPP
13th floor, 11, Apakidze str, Tiflis Business Center,
Tbilisi, 0171, Georgia