new generation of balance settlement · new environmental protections, considerations and the...

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New Generation of Balance Settlement



Enoro Can Help you Prepare for the Changes in a Deregulated Market

Over the past two decades, the European Union (EU) has pushed to deregulate the energy markets; as a result, the Balance Settlement process has been defined by national legislation. This standardization of rules in the utilities marketplace is the next step in the transition towards a common market and increased competition.

New environmental protections, considerations and the rollout of Smart Meters are having a considerable impact on the Balance Settlement process. The EU Commission 20-20-20 targets are driving incentives for micro production energy sources; consumers

are increasingly producing their own electricity as well as feeding power back into the grid. In addition, Smart Meters have drastically increased the volume and velocity of metering, resulting in as much a 35,040 records per meter, per year.

These increases in competition and new requirements to manage vast amounts of data—as well as nationally regulated Balance Settlement processes—require a smart solution to stay viable in the new utilities market.



Enoro Transforms New Settlement Demands to Economical and Operational AdvantagesThe Scandinavian market is one of the first deregulated electricity markets in the world, and Enoro has been there to support market players of varying market roles to implement the GENERIS Balance Settlement solutions. TSO level settlement systems in Finland (Fingrid), Sweden (Svenska Kraftnät), Estonia (Elering) and Switzerland (Swissgrid) are making full use of the flexibility of the GENERIS platform.

GENERIS offers out-of-the-box core settlement processes and a flexible platform to develop market area and customer specific applications.

Key advantages of GENERIS for Settlement business:• Proven functional scope and performance

• Flexibility and compliancy to new market requirements

• Modularity and comprehensive system automation



DSODepending on the market area and the regulator, the accountability for the Balance Settlement process will either remain at the DSO, or it will be moved to a regulated market role. The current trend shows that regardless of the accountability, the responsibility for the Balance Settlement process will be shifted more to centralized systems, whether they are operated by the new settlement responsible market role or by a commercial service provider.

Data Hubs and Service ProvidersAs end customers become empowered to choose their energy providers, the market must be able to follow up the balances of each market player. The Balance Settlement process is evolving in established deregulated markets, and many countries are implementing or planning to implement Data Hubs. The market for Balance Settlement in Business Process Outsourcing is expected to grow with market harmonization and the pressure to lower operational costs.

Who needs Balance Settlement Systems?

Retailers and Balance Responsible Balance Settlement is crucial for the Balance Responsible and Retailer roles, even if they are not responsible for producing Balance Settlement results. The business result of these parties is dependent on managing their open position towards the market. Consequently, these market parties will have strong needs for controlling the Balance Settlement process (the accuracy of the results) and utilizing the data for their own operations, such as market forecasting, consumer profiling and procurement.

GENERIS - Proven Market AgilityEnoro has an extensive track record of providing effective Balance Settlement solutions to enable the deregulated energy market. Since the late 1990’s, Enoro has provided Balance Settlement solutions to DSOs, retailers, Balance Responsible companies, and TSOs for several countries and market areas.

Introducing interval measurements to all customers will require capabilities that exceed the functionality of the current Balance Settlement systems in use. To provide these capabilities, strong platforms like GENERIS are needed for storing and processing time series data. The architecture of GENERIS supports and interfaces with different functional modules and external systems through open and standard services.



Modularity and Comprehensive System Automation

Balance Settlement

System Core

Additional Enoro Modules

GENERIS Platform

Balance Settlement System Extensions

(WFM)Workforce

Management

(NIS)Network

Information System

(MAM)Meter Asset

Management

(CRM)Customer

Relationship Management

(CMS)Contract

Management System

(CEP)Customer

Engagement Platform

(FINA)Financial

(EDM)Energy Data Management

(MDM)Meter Data

Management

and GENERIS system

• GENERIS Time Series Products: Framework for defining calculation hierarchy

• GENERIS Time Series Models: Framework for implementing calculation hierarchy

• GENERIS Distribution Models: Framework for distributing meter data and calculation results

• GENERIS Control Displays: Framework for configuring process oriented UI displays

• GENERIS Function System: Framework for configuring custom logic and exposing it through Web Service Framework, Info Flow Manager and Control Displays

• GENERIS Advanced Search: Framework for configuring queries that are used to link master data into Time Series Products, Time Series Models, Distribution Models and Control Displays and Function System

Operational efficiency is the key driver for moving the Balance Settlement process to centralized solutions. The trend for centralizing the Balance Settlement highlights the need for monitoring and controlling, as the centralized system becomes a potential single point of failure for a larger part of the market, and possibly, the entire market related to the regulated hub of that system. To ensure quality and to provide operational efficiency, managing the Balance Settlement hierarchy must be automatic.

With the increased requirements for automation and scalability, the system’s overall technical architecture will be more complex than today. As a result, the work effort of the organization responsible for the Balance Settlement process will shift from running the process to monitoring and controlling the process For example, when new Retailers become active in a market area, the required setup for Balance Settlement must immediately be created by the system. For automation, the same applies for Master Data management. One of the expected results of deregulation and market harmonization is increased competition. This strongly implies there will be more and more changes in the Master Data that works as the basis for the Balance Settlement process.

An automated Balance Settlement System is achieved with the following GENERIS platform concepts:

• GENERIS Web Service Framework: Host for master data and meter data integrations

• GENERIS Info Flow Manager: Host for batch processes

• GENERIS TSIO: Framework for meter data imports providing mapping capabilities between external keys



Master Data ManagementBalance Settlement needs information about the market parties and their contractual obligations. All this data is dynamic, which brings a high level of complexity into synchronizing this information from surrounding systems.

Synchronization is required because the Balance Settlement is a back-end process. Typically, it is not the master for the metering point and/or contract data; i.e. the Balance Settlement system is the slave for Master Data.

The local Balance Settlement rules often differ from other markets, which also makes it important that the Master Data synchronization framework is flexible— in terms of implementing the synchronization and modeling the validation for the local rules. In order to support the “hubization” of Balance Settlement, adoption of market standards in Master Data synchronization will become vital in the years to come (ebIX, ENTSO-E, CIM). Equally important is the ability to support multi-tenant operation of the Balance Settlement solution.

Flexibility and compliance to new market requirementsAlthough some standards are in place, the local needs for Balance Settlement will require flexibility from the Balance Settlement IT system. Modeling the local market rules with a robust platform concept is key for providing the needed flexibility without “reinventing the wheel” for each new process or each new integration to the system. Inbound and outbound communication almost always requires interfacing with various localization and meter data validation rules. The intrinsic nature of consumption can vary greatly among geographic locations, causing variations in local standards and requirements.

The balance of performance and flexibility requires strong architecture, where local adaptations can work on top of a strong platform, which Enoro provides through GENERIS Solutions.

In addition to the requirements for managing meter data, the Balance Settlement solution must also support commercial requirements. To yield financial settlement results, the meter data must be seamlessly combined with Master Data, which includes products, prices and contracts from surrounding systems.

The flexibility of the platform is the key for rapid and successful market adaptation. The product and pricing mechanisms will vary from market to market, and they will be more difficult to standardize than communication formats, as they also have a direct impact on the end customer.


About EnoroEnoro helps utility enterprises become more profitable and develop sustainable and agile business models. Enoro end-to-end solutions turn the challenges of reduced consumption, deregulation, and rapidly increasing volumes of data into opportunities by applying intelligence to business decisions. Our solutions specifically focus on leveraging the value to be found in the explosion of Smart Meter data and to enable commercial market processes.

With over 20 years’ experience in delivering energy data systems that enhance business value, we’ve come to understand the market and how recent changes will affect the utilities trade in the future. Our mission is to ensure that our customers are ready for these new challenges and positioned to benefit from the opportunities to come.

• 400 customers use Enoro software to enhance their operations

• 15 million energy consumers relies on data from Enoro

• 300 employees across Europe

• Corporation with several global SI`s

• Positioned by Gartner Inc. in Magic Quadrant for MDM


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new generation of balance settlement · new environmental protections, considerations and the...

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