Elia Group Sa/nv · EURONEXT:ELI
Elia Group Sa/nv — Investor Presentation (February 2023)
66 slides from Elia Group Sa/nv's investor presentation, Feb 2, 2023
Slide 1: WG Balancing of 2nd February 2023
WG Balancing of 2nd February 2023 Hybrid meeting 02/02/2023
Slide 2: For a smooth teleconference with 30+ people
For a smooth teleconference with 30+ people … Some rules apply - Please put yourself on mute at any time that you are not speaking to avoid background noise. - If you receive a call, please ensure that you do not put this meeting on hold. - You can quit and reconnect later on. - You will be muted or
Slide 3: Agenda
Agenda • EU & BE Balancing Program Update • 14:00 – 14:20 Connection to PICASSO • 14:20 – 14:40 MARI & iCAROS phase 1 • 14:40 – 15:00 T&C BRP and imbalance tariffs next steps • 15:00 – 15:40 Consolidated roadmap 2023 • 15:40 – 15:50 Coming Stakeholder management interactions • 15:50 – 16:00 10’ BREA
Slide 4: Minutes of Meeting for approval
Minutes of Meeting for approval Minutes of Meeting of WG Balancing of 9th December 2022 • No comments or remarks from the stakeholders Suggestion to approve: • The MoM of 09/12/2022 4
Slide 5: EU Balancing Program Update
EU Balancing Program Update Cécile Pellegrin, Philippe Magnant, Anna Tsiokanos
Slide 6: Context - Reminder WG BAL 09/12/22 Status and next steps
Context - Reminder WG BAL 09/12/22 Status and next steps • Way forward was discussed during last WG BAL and Stakeholders provided complementary feedbacks to ELIA in the weeks following the meeting. The feedbacks focus mainly on planning. No new specific input were given concerning the conditions for
Slide 7: Agenda of today's presentation
Agenda of today’s presentation PICASSO • Connection to PICASSO Balancing Rules MARI • MARI & iCAROS phase 1 & T&C BRP & iCAROS phase 1 • T&C BRP and imbalance tariffs’ next steps • Other initiatives and High level consolidated roadmap Other initiatives • Coming Stakeholder management interactions 7
Slide 8: Connection to PICASSO
Connection to PICASSO Oo HE . aD)
Slide 9: Context and goal of the presentation
Context and goal of the presentation Context of the presentation ▪ The CREG has extended the derogation for the connection to the aFRR-Platform, thereby preferring an extension of the derogation over the introduction of a local temporary price cap on the aFRR energy bids ▪ Stakeholders have provided
Slide 10: Part 1: prices observed on the aFRR-Platform
– Part 1: prices observed on the aFRR- Platform
Slide 11: LMOLs of DE, AT and CZ
LMOLs of DE, AT and CZ • Bidding behaviour didn’t change significantly by introducing Marginal Pricing ➔ in line with Elia’s assumptions in the observation round • Germany has prices up to 15k€/MWh (price cap), but has a large merit-order ➔ price spikes only in case of significant aFRR demand • Aust
Slide 12: Prices on aFRR-Platform
Prices on aFRR-Platform • 4’’ CBMPs in July in DE, AT and CZ, in the range from -15.000€/MWh to +15.000€/MWh • Frequent price spikes (mainly short duration) • Similar trends for other months 12
Slide 13: Prices on aFRR-Platform
Prices on aFRR-Platform • The figure illustrates the occurrences of the uncongested area configurations when prices are beyond +-7.5k€/MWh (until 10/’22) No bids ≥ 7.5k€/MWh ➔ Marginal pricing applied in a small market-area is ➔ no occurrences of likely to cause high prices CBMP ≥ 7.5k€/MWh when all
Slide 14: Conclusions
Conclusions • The assumptions taken and the risks identified in the observation round are confirmed and reinforced by the first observations on the aFRR platform ✓ Bid prices assumed are below the observations in the 3 participating countries ✓ Marginal pricing, combined with high price caps, applie
Slide 15: Part 2: Proposed approach and planning for the connection to the aFRR-Platform
– Part 2: Proposed approach and planning for the connection to the aFRR-Platform
Slide 16: Introduction
Introduction • Following the decision of the CREG to extend the derogation, the way forward was discussed during last WG BAL and stakeholders provided complementary feedbacks to ELIA in the weeks following the meeting • The feedbacks focus mainly on planning; market parties emphasize the need for pl
Slide 17: Key elements to consider
Key elements to consider • A significant increase of costs for the final consumer, be it via the tariffs or via the imbalance price, is unacceptable (even with a local price cap there is a risk of (limited) cost increase due to the marginal pricing) • Liquidity in the aFRR energy market is not suffi
Slide 18: Proposed approach
Proposed approach • Keep looking at European level for alternative short term mitigations (market support is likely to be needed!) • Plan to connect close to the end of the derogation (24/07/2024), with a local price cap unless alternative mitigations have been agreed and implemented • The local pri
Slide 19: Proposed approach
Proposed approach • Should an observation round be performed after RTE’s connection, based on sufficient data, and should the outcome be positive even without the implementation of local price cap (very unlikely), the most optimistic planning would be the following, not taking into account any other
Slide 20: Resulting planning
Resulting planning • Based on these considerations, the resulting planning would be the following 2023 2024 2023 Nov Dec Jan Feb Mar Apr May Jun 2024 Mar 28 Jun 12 Amendment process T&C: approval CREG Go-live Nov 20 - Dec 22 Amendment process T&C: public consultation EU approval process, re-testing
Slide 21: MARI & iCAROS phase 1
MARI & iCAROS phase 1 Oo HE . aD)
Slide 22: MARI & iCAROS phase 1
MARI & iCAROS phase 1 • Stakeholders provided complementary feedbacks to ELIA after the negative decision on PICASSO connection and the discussion in the WG BAL of the 27/10/22. Feedbacks included, among others: • Worries towards the process, content and implementation of the balancing rules / Imbal
Slide 23: Reminder WG BAL 22/06/22 External testing with market parties
Reminder WG BAL 22/06/22 External testing with market parties • In order to be able to deliver the needed support to market parties, it’s recommended not to have to discuss the different subjects in parallel. Therefore, ELIA proposes the introduction of a phased testing. • It’s therefore proposed: •
Slide 24: External testing with market parties
External testing with market parties 2021 2022 2023 May Oct Mar Aug Jan Jun Nov Initial delivery of Training session Outage Planning Technical guide Training session Scheduling Develop Training session Bid submission Training session RD Bid advanced Training session RD activation Training session mF
Slide 25: Initial draft for follow-up of advancement of iCAROS phase 1 and mFRR local implementation
Initial draft for follow-up of advancement of iCAROS phase 1 and mFRR local implementation - to be further discussed with service providers All mentioned tests will be performed in demo environment May 22 - May 31 Start of common Test protocol Outage planning (OPA) Sep 11 - Sep 29 Start of common Te
Slide 26: External testing with market parties
External testing with market parties Focus Demo Training session Status of the testing period environment Initial training session took place. Ad hoc additional Outage information sessions are organized. Actual IT testing 01/10 - 03/10/22 Available from info planning seems quite limited. If blocking
Slide 27: Consolidated planning for MARI, iCAROS Phase 1 and PICASSO
Consolidated planning for MARI, iCAROS Phase 1 and PICASSO Roadmap as defined in June 2022 (Connection for PICASSO intended in 2022) Update of the Roadmap • BSP/OPA/SA Testing environment for mFRR and • Local go live of the new mFRR bidding and iCAROS iCAROS phase 1 deployed from Late Q3 2022 on pha
Slide 28: T&C BRP and imbalance tariffs next steps
T&C BRP and imbalance tariffs next steps Elia wishes to make it clear that following slides do not, in any way, call into question the relevance or the scope of the appeal that Elia has initiated against the procedure as currently conducted by CREG. On the contrary, those are described with all rese
Slide 29: Agenda
Agenda ➢ Context ➢ Elia’s proposed way forward included in consultation response as well as Elia’s main concerns ➢ Practical approach on T&C BRP, Tariff Proposal and Balancing Rules Presentation title 29
Slide 30: Context
Context ➢ CREG launched a public consultation of her Draft Decision (PRD)2497 for amendment of the T&C’s BRP ➢ This proposal contains: • Description of the Imbalance price components: Main modifications consist in: • Main component (= MIP/MDP) art. 29.2 & 29.3 1) Move the Imbalance price components
Slide 31: Elia's proposed way forward included in consultation response
Elia’s proposed way forward included in consultation response As indicated before, Elia agrees with moving the imbalance tariff components from the balancing rules to T&C BRP – Elia proposed to do so together with the next modifications (in casu: to prepare connection to MARI, see later) Elia strong
Slide 32: How will Elia address the modifications in T&C BRP / TP / Balancing Rules?
How will Elia address the modifications in T&C BRP / TP / Balancing Rules? ➢ As explained in previous slide, CREG links the EiF of it’s modifications to the amendment of the Balancing Rules by Elia ➢ Concretely the very next “package” of modifications that is foreseen is the one necessary for Mari •
Slide 33: Thank you
Thank you
Slide 34: Other initiatives and High level consolidated roadmap
Other initiatives and High level consolidated roadmap
Slide 35: Consolidated High level Roadmap
Consolidated High level Roadmap 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Month January February March April May June July Aug
Slide 36: Other initiatives – Incentives 2023
Other initiatives – Incentives 2023 Incentives Evaluation des modalités de préqualification, contrôle et pénalités des services mFRR Will be followed in Presented today et aFRR WG BAL Étude sur les possibilités et éventuelles évolutions de correction du périmètre du BRP Will be followed in Presented
Slide 37: Other initiatives – Product evolutions
Other initiatives – Product evolutions • aFRR Design evolutions • TCO Degradation price Cap • Other evolutions as aFRR RT Baseline, aFRR activation method, .. • FCR Design evolutions • Additional properties • Other evolutions as Amendment of Baseline and Activation Control Methodology, Combo FCR/aF
Slide 38: Consolidated High level Roadmap
Consolidated High level Roadmap Market consultations & implementation period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 Month January February March April May June July August Se
Slide 39: Coming Stakeholder management interactions
Coming Stakeholder management interactions
Slide 40: Coming stakeholder management interactions
Coming stakeholder management interactions - Next interactions - On the 08/02/23 - Training session SA/BSP : mFRR & RD bidding testing (basics) - Information session focusing on the overview of contractual principles relevant for the new Outage Planning Agent and Scheduling Agent contract coming int
Slide 41: Contact persons
Contact persons KAM Energy Amandine Leroux / Arno Motté Implementation ad hoc sessions (on request) • Q&A sessions dedicated to design and implementation questions • IT questions & Live debugging sessions with ELIA IT-team 42
Slide 42: Thank you
Thank you
Slide 43: 2022 Incentive on combo's for DPPG
2022 Incentive on combo’s for DPPG – Possibilities for combo’s behind the same Access Point and Delivery Point Kris Poncelet
Slide 44: Context & objectives
Context & objectives • In 2022, Elia performed a study on combo activations with following recommendations: Combo Study’s main recommendation FCR-aFRR Activation combo’s are allowed and further improvements to the current design have been proposed aFRR-mFRR Activation combo’s are currently not allow
Slide 45: Current possibilities for multiple DPs behind the same Access Point
Current possibilities for multiple DPs behind the same Access Point ✓ A delivery point is identified by a meter (mFRR, DA/ID) and/or a measurement device (FCR, aFRR) ✓ Submetering solutions are possible (incl. the possibility to use an equation based on the head meter and submeter(s)) ✓ Behind the s
Slide 46: Multiple FSPs active on the same DP
Multiple FSPs active on the same DP Continuous ex-ante and close-to-real time alignment would be needed between the involved FSPs: • Bidding phase FSPs should ensure that the sum of the offered volumes can be delivered • Activation phase & settlement one activation could have an impact on the se
Slide 47: Elia believes there are opportunities to foster competition between BSPs/FSPs
Elia believes there are opportunities to foster competition between BSPs/FSPs that would have more impact in the short term • Elia actively supports actions to foster competition between FSPs/BSPs and to avoid BSP/FSP lock-in effects. In this regard, Elia is undertaking several actions: • Proposal o
Slide 48: Balancing Incentive – BRP perimeter corrections
Balancing Incentive – BRP perimeter corrections Kris Poncelet
Slide 49: Context
Context • In case of the activation of mFRR and/or redispatch energy bids, the BRP Balancing Perimeter is currently corrected with the requested volume (correction of the type –Ereq). • Questions can be raised regarding the suitability of the current BRP perimeter corrections in the context of diffe
Slide 50: The objective is translated into a work plan of 4 steps
The objective is translated into a work plan of 4 steps: 1) Provide an overview of the different possibilities for BRP perimeter corrections and their impact on other design elements (if applicable) 2) Perform a holistic assessment of the possible perimeter corrections based on different criteria. T
Slide 51: Indicative planning and stakeholder interaction
Indicative planning and stakeholder interaction WG BAL - Feedback public consultation (date tbd) Oct 6 Workshop - preliminary results and Submission to CREG WG BAL - scope and objectives conclusions (date tbd) Feb 2 May 4 Oct 31 2023 Feb Mar Apr May Jun Jul Aug Sep Oct 2023 Today Public consultation
Slide 52: Evaluation of the Prequalification, Control and Penalties Modalities of the aFRR & mFRR Services
Evaluation of the Prequalification, Control and Penalties Modalities of the aFRR & mFRR Services Loup Vanderlinden
Slide 53: Objective & Scope
Objective & Scope The objective of the incentive is to evaluate, for aFRR and mFRR services, the control and penalty system as well as the prequalification conditions and the prequalification process and to propose revisions if necessary • For each of the topics listed, ✓ Identification and assessme
Slide 54: Planning & Deliverables
Planning & Deliverables WG Balancing Workshop Deliverable Launch PC Final September Report 2023 Bilateral exchanges PC 02/02 April/May November 23/12 Kick Off Bilateral exchanges Workshop 1 Final Report • Proposal & discussions of • Present objective, scope • Update of MPs positions & possible desig
Slide 55: Draft list of topics to be addressed in the incentive study
Draft list of topics to be addressed in the incentive study 1. Prequalification Process ➢ PQ is not designed for assets that do not have the possibility to be available on all CCTUs ➢ If a Grid User wishes to change BSP he has to redo a PQ 2. Control and Penalties ➢ Submission of aFRR/mFRR Energy Bi
Slide 56: DFD Incentive
DFD Incentive Arnaud Attanasi
Slide 57: CREG incentive
ia | Ela Group CREG incentive 4.7.3. Contexte et justification Uobjectif de cette étude est d’analyser en détail comment mettre en place un outil de prévision des DFDs et de la contribution d’Elia en lien avec le critere ENTSOe de manieére fiable, « cost-efficient »et qui permettrait aux dispatchers
Slide 58: What is a Deterministic Frequency Deviation (DFD)?
What is a Deterministic Frequency Deviation (DFD)? Deterministic Frequency Deviations (DFDs) are phenomena which occurs on a regular basis as a result of load and production difference during a change of Market Time Unit (MTU) and so, which generates a frequency deviation of more than 75mHz For Info
Slide 59: Milestones Incentive
Milestones Incentive • 3rd February 2023: Selection of most relevant datasets and most performant model • Analysis and comparison of the datasets and the models • 1st September 2023: Consultation of a draft report • Description of the method used to select the dataset and the final model • Results o
Slide 60: AOB - Communication on the go-live of aFRR for LV
AOB - Communication on the go- live of aFRR for LV Arno Motté
Slide 61: Opening aFRR on Low Voltage
Opening aFRR on Low Voltage ELIA, in cooperation with DSO’s, intents to open aFRR on Low Voltage in early Q2 2023 Scope for opening on low voltage: - Current BSP contract aFRR remains valid - Current FSP-DSO contract remains valid, at exception of Annex 1 which stipulates that only DP connected abov
Slide 62: AOB - MVAr service – Review and recommendations for design optimisations
AOB - MVAr service – Review and recommendations for design optimisations Carsten Bakker
Slide 63: MVAr service – Review and recommendations for design optimisations
MVAr service – Review and recommendations for design optimisations Context and goals of the incentive • Following entry into force of the new design in 2020, some return of experience is available • This study intends to analyze further possible design improvements for the voltage and reactive power
Slide 64: MVAr service – Review and recommendations for design optimisations
MVAr service – Review and recommendations for design optimisations Indicative timeline: Submission of Workshop with market parties on needs of the study to improvements 2nd workshop with market parties about the CREG March 15 proposal of improvements Dec 23 Jun 16 1. Identification of design Jan 1 –
Slide 65: AOB – Next WG Balancing
AOB – Next WG Balancing Loup Vanderlinden
Slide 66: Next WG Balancing
Next WG Balancing • WG Balancing 22/03/2023 09:00 – 13:00 • WG Balancing 16/05/2023 14:00 – 18:00 • WG Balancing 29/06/2023 14:00 – 18:00 • WG Balancing 27/09/2023 09:00 – 13:00 • WG Balancing 14/11/2023 14:00 – 18:00 67