the nordic capacity calculation methodology (ccm) project ... · 8/22/2019 · 9 aob 15:00...

The Nordic Capacity Calculation Methodology (CCM) project

Stakeholder Group

Copenhagen Towers

August 22, 2019

http://www.fingrid.fi/en/

15:00 – 15:30AOB9

14:30 – 15:00KPIs, Go-live criteria8

14:00 – 14:30Coffee break7

13:00 – 14:00Nordic RSC visit 6

12:00 – 13:00Lunch5

10:30 – 12:00FB, and FB intuitive simulation results 4


09:45 – 10:15Status update, and short walk-through of updated DA/ID CCM 2

09:30 – 09:45Introduction and welcome1

Table of Contents


Stakeholder involvement: reminder

❖Stakeholder Group (SHG)✓Group with nominated members from industry

and NRAs✓Detailed discussions and exchanges

❖Stakeholder Forum (SHF)✓Open for all stakeholders ✓Broader information forums

❖Stakeholder Newsletter

❖Stakeholder Information Platform (SHIP)✓Web platform, hosted by the Nordic RSC, for

information exchange and discussion✓Open for all stakeholders


CCM project and Nordic RSC: reminder

CCM project

-

CCM methodology development

-

CCM implementation

(amongst others)


Indicative timeline

2018 20222018 2019 2020 2021 2022

NRA: DA/IDCCM approval

Jul 16

NRA: RfA (DA/ID CCM)

Dec 20

NRA: amended DA/IDCCM approval

Aug 20

TSO: Amended DA/IDCCM submission

Jun 20

Earliest Nordic DA CCM and intermediateID CCM go-live

Jul 1

TSO: Submission of FCACCM proposal to NRAs

Jan 16

NRA: FCA CCMACER referal

May 8

ACER: FCA CCMdecision

Nov 8

Public //run quality criteria are

met (industrial tool), and all TSO

input data available

Jun 30

Go-live criteria are met

Jul 1


15:00 – 15:30AOB9




12:00 – 13:00Lunch5





Table of Contents


Amended DA/ID CCM

❖Nordic NRAs approved the Nordic DA/ID CCM in July 2018

❖The NRAs of the Nordic CCR issued an RfA in December 2018

✓The amendment applies for Energinet, Fingrid, and Svenska kraftnät

❖The TSOs of the Nordic CCR amended the DA/ID CCM; a public consultation was held from April 12 to May 20, 2019

❖TSOs submitted the amended DA/ID CCM to the NRAs of the Nordic CCR on June 20 2019

2018 20222018 2019 2020 2021 2022


Jul 16


Dec 20


Aug 20


Jun 20


Jul 1


Jan 16


May 8


Nov 8




Jun 30


Jul 1


Amended DA/ID CCMResults from the public consultation

❖6 responses have been received

❖EFET provided generic responses, not linked to the DSA / RfA

❖The response from Finnish Energy and Swedenergy is identical. They wonder a.o. what’s the legal status of the amendments on Statnett and Kraftnät Åland?

❖Energi Norge remarks that the FB implementation has become even more challenging

❖Statnett expresses concerns linked to compliancy, European processes, economic efficiency, and operational security

❖Statkraft hopes that a common approach by only 3 of the 4 Nordic TSO will not have any negative impact for the implementation of CCM

1 EFET

2 Finnish Energy

3 Energi Norge

4 Statnett

5 Statkraft

6 Swedenergy


Amended DA/ID CCMArticles amended

❖Whereas

❖Article 4 on methodology for determining operational security limits

❖Article 31 Capacity calculation process

❖Article 32 Publication and Implementation

AmendedDA/ID CCM


Amended DA/ID CCMArticle 32 - Implementation

CCC responsible for common dynamic grid model and dynamic security analysis

Each TSO responsible for dynamic grid model and dynamic security analysis


LT CCM

2018 20222018 2019 2020 2021 2022


Jul 16


Dec 20


Aug 20


Jun 20


Jul 1


Jan 16


May 8


Nov 8




Jun 30


Jul 1

❖Nordic TSOs submitted their LT CCM proposal to the NRAs on Jan 16, 2019

❖Nordic NRAs referred the LT CCM proposal to ACER on May 8

❖ACER has 6 months time to take a decision on the Nordic LT CCM


15:00 – 15:30AOB9




12:00 – 13:00Lunch5





Table of Contents


"Non-intuitive" flows

❖A non intuitive flow is a flow from a high price to a low price BZ

❖Non intuitive flows are a result of the FB market optimization

❖Non-intuitive flows occur to relieve congestions on constrained grid elements

❖Non-intuitive flows occur when the welfare economic cost of a non-intuitive flow is smaller than the welfare economic benefit of relieving a congestion

❖By relieving capacity on congested grid elements, non-intuitive flows contribute positively to the overall market efficiency, and thus generate a market wide efficiency gain

❖In equilibrium, the marginal value of all trades are equal

❖Non intuitive flows are applied in existing nodal price systems, and in the current Nordic market by enforcing the power to flow in a certain direction (NO1-NO3, and NO5-NO3)


Welfare optimum

❖𝑻𝒉𝒆 𝒇𝒊𝒓𝒔𝒕 𝒐𝒓𝒅𝒆𝒓 𝒄𝒐𝒏𝒅𝒊𝒕𝒊𝒐𝒏 𝒇𝒐𝒓 𝒂 𝒈𝒍𝒐𝒃𝒂𝒍 𝒘𝒆𝒍𝒇𝒂𝒓𝒆 𝒐𝒑𝒕𝒊𝒎𝒖𝒎 𝒊𝒔:

𝑃𝑖 = 𝜆 − σ𝑛 𝜌𝑛 𝑃𝑇𝐷𝐹𝑛𝑖 𝑃𝑖 = The price/marginal value of power in BZ i

𝜆 = The marginal value of power in the slack node (not the system price)

𝜌𝑛 = 𝑆ℎ𝑎𝑑𝑜𝑤 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑛𝑠𝑡𝑟𝑎𝑖𝑛𝑖𝑛𝑔 𝑔𝑟𝑖𝑑 𝑒𝑙𝑒𝑚𝑒𝑛𝑡 𝑛

𝑃𝑇𝐷𝐹𝑛𝑖 = 𝑇ℎ𝑒 𝑃𝑇𝐷𝐹 𝑡𝑜 𝑡ℎ𝑒 𝑠𝑙𝑎𝑐𝑘 𝑓𝑜𝑟 𝐵𝑍𝑖 𝑜𝑛 𝐶𝑁𝐸 𝑛

❖The 𝒎𝒂𝒓𝒈𝒊𝒏𝒂𝒍 𝒗𝒂𝒍𝒖𝒆 𝒐𝒇 𝒂 𝒃𝒊𝒍𝒂𝒕𝒆𝒓𝒂𝒍 𝒕𝒓𝒂𝒅𝒆 𝒇𝒓𝒐𝒎 𝑩𝒁𝒊 𝒕𝒐 𝑩𝒁𝒋can be derived from the f.o.c.:

𝜌𝑘 ≥ 0 𝑎𝑛𝑑 𝜌𝑘 σ𝑖𝑁𝑃𝑖 ∗ 𝑃𝑇𝐷𝐹𝑘𝑖 − 𝑅𝐴𝑀𝑘 = 0

𝑃𝑗−𝑃𝑖

σ𝑛 𝛼𝑛 𝑃𝑇𝐷𝐹𝑛𝑖−𝑃𝑇𝐷𝐹𝑛

𝑗 = σ𝑘 𝜌𝑘 𝛼𝑛 =𝜌𝑛

σ𝑘 𝜌𝑛

𝑘 = 𝑡ℎ𝑒 𝑠𝑒𝑡 𝑜𝑓 𝑎𝑙𝑙 𝑙𝑖𝑚𝑖𝑡𝑖𝑛𝑔 𝑔𝑟𝑖𝑑 𝑒𝑙𝑒𝑚𝑒𝑛𝑡𝑠, 𝑛 ∈ 𝑘

➢ Non-intuitive flows are non-intuitive, not non-efficient


Example - Non intuitive flow

A

B C

Line (CNE) Max flow Min flow PTDF A PTDF B PTDF C

A -> B (CNE 1) 800 MW -800 MW 33 % - 33 % 0

B -> C (CNE 2) 1400 MW -1400 MW 33 % 67 % 0

A -> C (CNE 3) 1000 MW -1000 MW 67 % 33 % 0

Line Max NTC Min NTC

A -> B 500 MW -500 MW

B -> C 1000 MW -1000 MW

A -> C 400 MW -400 MW


Example – The market


FB and CNTC market solution

FB: B-A congestedNon-intuitive flow A-CGlobal optimum

NTC: All lines congested

11448


Intuitive FB and CNTC market solution

FB: B-A congested

Intuitive flow solution

NTC: All lines congested

10836

5% lower benefit from FB due to the non-intuitive constraint


Non-intuitive flows – what and why?

❖Non-intuitive flows are flows from a high price area to a low price area

❖They occur because the non-intuitive flow relieve a congested grid element which limits a more beneficial trade

❖Hence the socio-economic cost of a non-intuitive trade is smaller than the gain


Simulations

❖We have simulated two cases:

✓ FB original: the proposed FB-method

✓ FB intuitive patch: a "soft patch", ensuring flows only from a group of low prices to a group of highprices. Within the low-price group, you still may find the non-intuitive flows from a high-price zone to a low-price zone

❖Both cases are compared to NTC-method


Data for the analysis

❖11 weeks of data

✓ 76 days

✓ 1 day excluded from the analysis


Results: Total welfare gain

❖FB original gave a welfare gain of approx. 1.5 MEUR more than FB using the intuitive-patch

❖The figure shows cumulated socioeconomic welfare gains with FB compared to NTC for both cases

This figure is reported in the newsletter, but we discovered that the congestion rent is not correctly computed.


The components in welfare gain

❖Consumer and producer surplus is reduced when non-intuitive flows are not allowed

❖Congestion rent values are wrong due to internal script in the CCM-project.✓ Data on consumer, producer surplus and prices come from Euphemia


Summary

❖The table below summarizes the results for the 11 weeks analyzed

❖ Consumers and producers both loose due to more congestions and lager price spread


Example from original simulations without patch

Flowbased NTC


15:00 – 15:30AOB9




12:00 – 13:00Lunch5





Table of Contents


Nordic RSC

Jens Møller BirkebækNordic RSC manager

CCM Stakeholder Group meeting August 22nd, 2019

Nordic Regional Security Coordination

Background

1. Enhancing Nordic Power System Cooperation

2. European Network Code implementation

Purpose

Support the Nordic TSO´s in two key focus areas:

1. Maintain Security of Supply in the Nordic Area

2. Optimize the availability of the Nordic Power Grid

Tasks

Regional Operational Planning and Coordination in time horizons from year to intraday.

Digitalization of the Power SystemThe Common Grid Model is the basis

Nordic RSC – a journey and continous development

Flow Based capacity calculation – an interlinked TSO/RSC procesTSO

sN

ord

ic R

SC

Nordic CGMAservice

D-2 CGM

1. TSO´s deliver

D-2 forecast

data

2. Nordic RSC calculate a

Nordic CGMA

(D-2 netpositions pr.

bidding zone)

3. TSOs develop the D-2

IGM based on Nordic CGMA

4.TSO´s provide

D-2 IGM and

additional data

to the Nordic

RSC

5. Nordic RSC create

the Nordic D-2 CGM

and security analysis

6. Nordic RSC

Flow Based

domain data

Flow Based

calculation

7. TSOs validate

the calculations

8. Nordic RSC provide

common Nordic data to

power exchanges

8/22/2019

37

Nordic RSC – one of five European RSC´s

IT Application from GE Grid Solutions

NorCap Project

NorCap project- Who is involved?

Project Management

IT ApplicationMethodology &

processes

NORDIC RSC

GE GRID SOLUTIONNORDIC TSOs

Coordinated GRID Model(CGM)

Flowbased and Coordinated NTC

(FB & CNTC)

Coordinated Security Analysis

(CSA)

Market information tool

Integration to NEMOs

NORCAP IT APPLICATION

NorCap project- What is scope?

Day ahead and

Intraday

NorCap project- The high-level process?

Intraday and Day ahead processes

IGM

CGM

Flowbased calculation Capacity/

domain validation

MIT

NEMOsIGM

IGM

CNTC calculation

FRM

TRMCSA

Out of scope

NorCap scope

IGM

Release

capacities

Procurement (Tender)

Proof of Concept

Design Development Installation

CGM & FLOWBASED

Design Development Installation

COORDINATED NTC

TODAY

Market information tool

Integration to NEMOs

NorCap project- What is the plan?

FRMNext release

Handled in parallel

Thank You

15:00 – 15:30AOB9




12:00 – 13:00Lunch5





Table of Contents


KPIs for FB Go-live, background

Background:• CACM enforces 6 months parallel run

• Nordic CCM has extended the period to 12 months, and stated that before the parallel run can start, the following has to be met:

• Parallel run is scheduled to start 2020-06-30

KPIs for a go-live of the FB approach have been specified, in dialogue with NRAs and stakeholders.


KPI dialogue

•Nordic CCM project have drafted an initial attempt to define KPIs, as a starting point for a dialogue with Stakeholders & NRAs


Draft KPI document – 3 categories

1. FB capacity calculation process‒ Timely data delivery and robust processes

‒ TSOs & CCC commited to new capacity calculation process

‒ Integrations implemented (TSOs, CCC, MIT, NEMOs)

2. FB capacity calculation results‒ Timely and robust delivery of FB domains, with additional quantities

‒ ”Correctness” of FB domain

3. FB capacity allocation results‒ Timely and robust delivery of market results using FB constraints

‒ Market welfare is increased, compared to NTC


Proposed GO/NOGO criteria

▪All KPIs must be met fully in the last month of parallel runs (month 12)

▪If not met, the parallel run is extended until all KPIs are met for 1 month duration

Question: Who decides whether all KPIs are met?- NRAs, TSOs, Stakeholders, jointly?


15:00 – 15:30AOB9




12:00 – 13:00Lunch5





Table of Contents


the nordic capacity calculation methodology (ccm) project ... · 8/22/2019 · 9 aob 15:00...

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