nwe info session - apx · pdf file12:42 publication of preliminary results (incl. market...
TRANSCRIPT
NWE Info Session Operational & contractual changes
for Dutch wholesale market
organization
Agenda
• Introduction • Matthijs Nijpels
• General overview of NWE Price Coupling • Thomas Donders
• Operational principles & possible scenarios • Catherine Fricot
• Detailed operational procedures • Matthijs Nijpels
• New Smart Order types & Automatic Order Submission Tool • Rob Loos
• Changes to Market Rules (APX / TenneT) • Rob Loos & Thomas Donders
• Member Testing & Planning to go-live • Rob Loos
• Conclusion • Gineke van Dijk
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
NWE – Driving European
Market Integration
5
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“
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 - Interconnectors
IFA
BritNed
NorNed
Kontek
Baltic SwePol
EstLink
FerroSkan
Skagerak Kontiscan
DK1-DE
Price Coupling Process
General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities
8
PCR : Price Coupling of
Regions
9
Potential integration of losses
on DC cables
Activation of losses on a specific interconnector is subject to approval
of relevant national NRAs
10
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
OPERATIONAL PRINCIPLES
& POSSIBLE SCENARIOS
General principles
Price Coupling Process
General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities
12
NWE Business Process
13
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
Price coupling results and scheduled
exchanges transfer
Final confirmation
process
PCR Process Timings for NWE
Normal process – 55 minutes
14
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
15
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
16
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
17
2nd Auction CWE/ GB
48 min
PCR PROCESS TIMINGS for NWE
18
• * 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
19
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
Fallback procedures
20
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
Full Decoupling of NWE (1)
• 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
21
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
22
Full Decoupling scenario
23
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
24
CWE TSO investigation on
flexibility of notification deadline –
impact on procedures
25
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
PCR PROCESS TIMINGS for NWE
26
Full decoupling before OBK
GCT (12:00)
27
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
• * 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.
Case X10 Case X12 Case X11 Full decoupling
before 12.00
X10 +
delay X10 +
2nd Auction
CWE
Full decoupling 42 min
Full decoupling 42 min
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 fall back solution for these temporary not participating borders / interconnectors
• NWE parties will try to couple as many borders / interconnectors as possible
• Partial coupling is triggered • during the pre-coupling process, at the latest at 11:45
• during the coupling process, at the latest at 12:40
28
Partial Coupling Scenario
Example : CWE+GB <> Nordic
29
PCR coupling
Nordic-Baltic: Market Splitting
Shadow Auctions
“Local” matching process
PCR matching process
Partial Coupling Scenario
Example : NorNed
30
PCR coupling
Shadow Auctions
PCR matching process
Partial Coupling Scenario
Example : EPEX OBK missing
31
PCR coupling
Shadow Auctions
PCR matching process
“Local” matching process
Partial Coupling Scenario
Example: APX NL/Belpex OBK
missing
32
PCR coupling
Shadow Auctions
“Local” matching process
33
PCR coupling
Shadow Auctions
PCR matching process
“Local” matching process
Partial Coupling Scenario
Example : no CWE CZCs in PMB
Decoupling scenarios
34
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)
34
• * 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.
Partial Coupling before OBK
GCT (12:00)
35
• * 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 followed by Full
Decoupling
+ Special Routine Nordics
Case X7
Publication of
preliminary results
=12:42
Case X9a
Partial coupling after OBK GCT
(12:00)
37
Case X9b Case X8
38
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 14:00
Notifications to TenneT
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)
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
15:00
12:42
Preliminary result
publication
Exceptional
timing
13:38 13:50
Technical problem
Message to MP
MP’s introduce orders
CZC publication
* All timings are C.E.T
13:00
Final
results
45
Notifications to TenneT
13:20
Case 1 Process delayed with
max timing
• CZC published at 10:30 on CASC website
• PX gate closure time at 12:00
• Delay in Market Coupling results
Timing Message Additional
actions for
MPs
Market
results
Publication
deadline
Local hub Notification Cross border
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
14:00 14:00
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 14:30
14:30
13:20
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 15:00 15:00
Messages
PX : [ExC_02] TSO
47
CASE 2A SECOND AUCTION
Case 2a second auction
10:30 12:00
CZC publication
MP’s introduce orders
Coupling process
PX GCT Normal
timing
Notifications to TenneT
Preliminary result
publication
* All timings are C.E.T
Exceptional
timing
>12:42 >12:55 15:00
12:30
Message to MP
14:00
13:00 <13:50
Final
results
Case 2a second auction
• CZC published at 10:30 on CASC website
• PX gate closure time at 12:00
• Threshold reached -€150 or €500 / -£150 or + £500
• Second Auction triggered (re-opening of Order Books)
Timing* Message Additional
actions for
MPs
Market results
Publication
deadline
Local hub
Notification
Cross border
notification deadline
±12:30
[ExC_01]: Thresholds
reached - Reopening of
the order books
PX: OBK open
for 10 minutes
after message
13:50
n/a
n/a
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 Shad ow
Auction system
before 13:40
13:50 15:00 15:00
Messages
CASC will add: Therefore, if relevant, we
advise you to update your shadow bids at
CASC EXAU platform before 13:40.
PX : [ExC_01]
51
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 13:05
Full
decoupling
preparation*
Full
decoupling
Exceptional procedures
13:20 12:42
Notifications to TenneT
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
13:00
Case 4 Full Decoupling
• CZC published at 10:30 on CASC website
• PX gate closure time at 12:00
• Full decoupling announcement
• Shadow auctions
• Follow the local auction rules
Timing* Message Additional actions
for MPs
Market results
Publication
deadline
Local hub
Notification
Cross border
notification deadline
12:42
[ExC_02]: Delay in
Market Coupling Results
publication
13:50
14:00 14:00
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
Shad ow Auction
system before
13:40
13:50 14:30 14:30
13:20
[ExC_03b]: Risk of Full
Decoupling
Bids update in the
Shadow Auction
system
n/a 15:00 15:00
13:50
[ExC_04b]: Full
Decoupling – Reopening
of the order books
OBK open for 20
minutes after
message
n/a 15:30
15:30
Messages
PX : [ExC_02]
55
Messages
CASC will add: Therefore, if relevant, we
advise you to update your shadow bids at
CASC EXAU platform before 13:40
PX : [ExC_03b] TSO
56
Messages
PX : [ExC_04b] TSO
57
CASE 5A FULL DECOUPLING
+ 2ND AUCTION
Case 5a Full Decoupling + 2nd
Auction
10:30 12:00
CZC publication
MP’s introduce bids
12:55
13:50
PX GCT Normal
timing
Exceptional
timing
15:30 13:05
Full
decoupling
preparation* Full
decoupling
Exceptional procedures
13:20 12:42
Notifications to TenneT
MP’s update orders**
Shadow
Auction
results
Note:
*Shadow auction will be triggered at CASC
** Reopening of order book for 20 min
*** 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
13:00
Case 5a Full Decoupling + 2nd
Auction
• CZC published at 10:30 on CASC website
• PX gate closure time at 12:00
Timing* Message Additional actions
for MPs
Market results
Publication
deadline
Local hub
Notification
Cross border
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 14:00 14:00
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 14:30 14:30
13:20 [ExC_03b]: Risk of Full
Decoupling
CASC: invitation to
update bids in the
Shadow Auction
system before
13:40
13:50
TSO: Delay in Market
Coupling Results/ local
Market Results publication
and extension of Hub
Notification deadline
13:50 15:00 15:00
Timing Message Additional actions for
MPs
Market results
Publication
deadline
Local hub
Notification
Cross border
notification
deadline
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 Market
Results publication
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
15:30 15:30
Case 5a Full Decoupling + 2nd
Auction
• Full decoupling announcement
• Shadow auctions
• Follow the local auction rules
Messages
PX : [ExC_02]
62
CASC will add: Therefore, if relevant, we
advise you to update your shadow bids at
CASC EXAU platform before 13:40
Messages
PX : [ExC_03b] TSO
63
Messages
PX : [ExC_04b] TSO
64
Messages
PX : [UMM_05] TSO
65
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
MP’s introduce orders
Message to MP
11:15 11:45
Coupling process
14:00
Notifications to TenneT
Preliminary result
publication
* All timings are C.E.T
>12:42 >12:55 15:30
12:30
13:00 <13:50
Final
results
13:20
Partial coupling
before OBK GCT
67
Timing Message Additional actions for
MPs
Market
results
Publication
deadline
Local hub
Notification
Deadline
Cross Border
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
13:50
11:45 [UMM_03]: One or more
interconnectors decoupled
13:50
±12:30 [ExC_01]: Thresholds reached -
Reopening of the order books
PX: OBK open for 10
minutes after message 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 14:30 14:30
13:20
TSO: Delay in Market Coupling
Results/ local Market Results
publication and extension of Hub
Notification deadline
13:50 15:00 15:00
Case X3a partial coupling before
OBK GCT + Second Auction • CZC published at 10:30 on CASC website
• PX gate closure time at 12:00
• 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
68
Message
CASC will add: Therefore, if relevant, we
advise you to update your shadow bids at
CASC EXAU platform before 13:40
PX : [UMM_02]
69
Messages
PX : [ExC_01]
70
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
Notifications to TenneT
12:30
Shadow
Auction
results Final
results
Preliminary result
publication
13:38
CZC publication
MP’s introduce orders
MP’s update orders**
15:00
Note:
*Shadow auction will be triggered at CASC
** Reopening of order book for 10 min
13:00
Message to MP
13:20
Case X7 partial coupling after
GCT
• CZC published at 10:30 on CASC website
• PX gate closure time at 12:00
• Publication of preliminary market results at the latest 13:38
• Publication of final market results at the latest 13:50
Timing* Message Additional
actions for MPs
Market results
Publication
deadline
Local hub
Notification
Cross border
notification
deadline
12:20 [ExC_03a]: Risk of Partial
Decoupling
CASC: invitation
to update bids in
the Shadow
Auction system
before 12:30
n/a n/a n/a
12:40
[ExC_04a]: Partial
Decoupling – Reopening of
the PX order books
PX: OBK open
for 10 minutes
after message
13:50
14:00
14:00
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
14:30
14:30
13:20
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 15:00 15:00
CASC will add: Therefore, if relevant, we
advise you to update your shadow bids at
CASC EXAU platform before 12:30.
Messages
PX : [ExC_03a]
74
Messages
PX : [ExC_04a] TSO
75
NWE process overview
10:30 12:00
15:30
CZC publication
MP’s introduce bids
Exceptional procedures
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
CZC reason
Normal
timing
Exceptional
timing
Notifications to TenneT
Decoupling scenarios
77
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)
Communication to the market -
summarized 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.
78
Communication to the market -
summarized Time/ Deadline
Communication Message number
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
79
80
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 3
Technical plant data
• Production cost 50 MW = 65 €/MWh
• Production cost 300 MW = 60 €/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
• Marginal cost to increase from 200 MW to 300 MW = 56 €/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 €
• Block 2: Sell 150 MW @ 61 € • linked to Block 1
• Block 3: Sell 100 MW @ 56 € • linked to Block 2
→ 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
Technical plant data
• Production cost 50 MW = 65 €/MWh
• Production cost 300 MW = 60 €/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
• Marginal cost to increase from 200 MW to 300 MW = 56 €/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 €
• Block 2: Sell 150 MW @ 61 € • linked to Block 1
• Block 3: Sell 100 MW @ 56 € • linked to Block 2
→ 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.
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
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
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, …
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
Static Demo
Linked Family
Linked Family - Entry Two options are available to submit a Linked family
Linked Family - Entry A visual representation helps the trader to identify
mistakes: Red screen for Buy side (Green for Sell side)
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
Linked Family - Entry A Tree View shows the hierarchical relationship between
orders
•
•
Static Demo
Exclusive Group
Exclusive Group - Entry Two options are available to submit an Exclusive Group
Exclusive Group - Entry A visual representation helps the trader to identify
mistakes: Green screen for Sell side (Red for Buy side)
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
AUTOMATIC ORDER
SUBMISSION TOOL
Submit Orders using XML files
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
Automatic Order Submission
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
Automatic Order Submission
XML Specifications & Testing
• Draft manual & specifications of xml files available
on APX website
• Scheduled to be available on the Member Testing
environment as of 23 October
CHANGE TO RULES
APX Power Market Rules – NL allocation rules
102
APX Power NL Market Rules
Market Rules
• Changes with respect to countries involved in
Market Coupling
• Execution conditions for Linked & Exclusive Block
Orders
• Delisting Strips Market • Already delisted in practice by removing all eligible instruments
• Various clarifications (with no impact on members)
103
APX Power NL Market Rules
Instrument Specifications
• 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
• Strips Market • Chapter will be removed
• Changes regarding rollback
104
Changes to NL allocation rules
TenneT rules • No changes
Dutch grid code • Fallback timings and principles (also for NorNed)
brought in line with the NWE procedures
• Rollback possibility to change back to CWE market coupling for BE-NL and DE-NL borders and ITCV market coupling for NorNed
• Inclusion of the losses for the NorNed cable in the market coupling is pending regulatory approval
105
PUBLICATIONS
Capacities – Flows – Prices – …
106
Publications
• www.apxgroup.com • Market prices & auction volumes
• www.tennet.eu & energieinfo.tennet.org • NTC values, ATC values, flows
• www.casc.eu • ATC values, Shadow Auction results (if any)
• Yearly, monthly capacity auction results
• www.europeanpricecoupling.com • Daily prices, ATC values & flows
107
PLANNING TO GO-LIVE &
MEMBER TESTING
108
109
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
110
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
111
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 • Smart orders will be available to see how matching results are
presented
• Details on these local tests will be communicated later
112
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
113
114
Disclaimer: All messages and timings are subject to changes after final testing.
CONCLUSION
115
SUMMARY
Annex
116
PCR PROCESS TIMINGS for
NWE
117
• * 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.
PCR PROCESS TIMINGS for NWE
118
Full decoupling before OBK GCT
(12:00)
119
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
• * 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.
Case X10 Case X12 Case X11 Full decoupling
before 12.00
Idem +
delay
Idem +
2nd Auction
CWE
Full decoupling 42 min
Full decoupling 42 min
Full decoupling 42 min
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)
120
Case X1 Case X2 Case X3a Case X3b Case X4a Case X4b
121
• * In case X6b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are sti ll
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)
122
• * 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
Communication to the market -
summarized
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.
123
Time/ Deadline
Communication Message number
12:20 • Increased risk for partial coupling in certain region • TSO message to MPs: Inform Market of fall back
processes (update of explicit shadow auction bids)
[EXC_03a]
~ 12:35 • Second Auction • PCR message to PXs and subsequently MPs and
TSOs: Second Auction is declared
[EXC_01]
Regular publication time (12:42)
• PCR message that process is delayed from PXs* to TSOs and MPs (timings to be confirmed).
• (TSO message to MPs: Inform Market of fall back processes)
Local PX msg
Communication to the market -
summarized
Time/ Deadline
Communication
13:20 • PCR message to PXs and subsequently MPs and TSOs: Inform Market about Incident and risk of decoupling.
• TSO message to MPs: Inform Market of fall back processes (update of explicit shadow auction bids) & shifting of notification deadline to 15h00
[EXC_03b]
13:40 • End of update shadow auction bids • Start of explicit shadow auction calculation
-
13:50 • Decision of Full decoupling • PCR message to PXs and subsequently MPs and
TSOs: Full decoupling is declared • (TSO message to MPs: notification deadline has been
extended to 15h30)
[EXC_04b]
13:50-14:00 • Publication of the explicit shadow auction fall back results (target is to publish immediately after 13.50 and at the latest at 14:00, feasibility of these timings must still be confirmed)
-
13:55-14:15 • Update of local auction bids according to shadow auction results
Local PX msg