Elia Group Sa/nv · EURONEXT:ELI

Elia Group Sa/nv — Technical Presentation (January 2016)

63 slides from Elia Group Sa/nv's technical presentation, Jan 29, 2016

  1. Slide 1: Taskforce Balancing

    Taskforce Balancing 29 January 2016

  2. Slide 2: Agenda

    Agenda Time: 13:00 – 16:00 h 1. New organisation Market Development 2. R1 XB 3. R1 Road map 4. XB Balancing info 1. Feedback Explore 2. Status NC on Electricity Balancing & Early implementation 5. Transparency & Publications Balancing info 1. Balancing info 2. Billable margin 3. Transparency Auction

  3. Slide 3: New organisation Market Development

    New organisation Market Development

  4. Slide 4: Market Development

    Market Development Head of MD Admin. Assistant J.Matthys-Donnadieu R. Lannau Program Architecture – Implementation Management Ancillary Services EU Balancing EU Market, Capacity BE Market Adequacy & Alloc. & Congestion Model Economic Studies Man. FRC, aFRR, mFRR, SR, CRM, storage, balancing market,

  5. Slide 5: XB R1

    XB R1

  6. Slide 6: 2. Stakeholders' feedback

    0. R1XB - Overview 1. Recap 2. Stakeholders’ feedback 3. Status & Timing 4. 2nd call for tender R1XBGE / Brussels, 29.01.2016 / Pieter-Jan Marsboom 6

  7. Slide 7: 1.1 R1XB – Summary

    1.1 R1XB – Summary Previous topic-discussions:  TF balancing on 12/10 with request for stakeholders’ feedback  Informative pdf-document provided after 12/10 – describing Belgian & XB FCR-auctions Project recap:  Current R1 procurement  1 Monthly auction  Local combined tender via STAR platform

  8. Slide 8: 1.2 R1XB – Motivation

    1.2 R1XB – Motivation  XB-FCR-cooperation allows to foster an increase of overall competition & volume liquidity so as to further reduce total procurement costs. The overall FCR-market size for both Belgian & PRL-DACHNL bidders will increase.  Alignment can be obtained with best practices in EU si

  9. Slide 9: 1.3 R1XB – FCR-prices

    1.3 R1XB – FCR-prices 2014 2015 2016 R1XBGE / Brussels, 29.01.2016 / Pieter-Jan Marsboom 9 9 9

  10. Slide 10: 1.4 R1XB – Price Forecast

    1.4 R1XB – Price Forecast  A divisible bid of 70% of FCR-demand (51MW in 2016) will be inserted in local STAR auction @ price forecast [€/MW/h]  the retained volumes from this bid will be procured subsequently via the second XB-FCR-auction  The price forecast should be:  Ex-ante approved via BR

  11. Slide 11: 1.5 R1XB – Local & XB Tendering Design

    1.5 R1XB – Local & XB Tendering Design Timeline Local STAR FCR-aFRR XB-FCR Auction Process R1XBGE / Brussels, 29.01.2016 / Pieter-Jan Marsboom 11

  12. Slide 12: 2. R1XB – Stakeholders' feedback

    2. R1XB – Stakeholders’ feedback After TF Balancing on 12/10, Elia requested feedback from R1/R2-providers and provided informative pdf-document. Elia obtained following feedback (formally and informally) from providers:  With generation assets  With load assets  With – future – storage assets PR

  13. Slide 13: 3. R1XB – Status & Timing

    3. R1XB – Status & Timing Timing Performer Topic 12/10/’15 BE TSO BE Stakeholders’ consultation via TF balancing 17/12/’15 XB TSOs SC-agreement on Elia joining Q1 2016 BE TSO Business implementation (GFA & BR) Q2 2016 BE NRA Formal regulatory approval via BR Q1-Q2 2016 BE & XB TSOs IT implementation

  14. Slide 14: 4. R1XB – 2nd call for tender

    4. R1XB – 2nd call for tender  Current STAR-auction rules foresee a 2nd call for tender if: (1) Insufficient volume (2) Volume overshoot (110%) (3) Price overshoot (150%)  Quid usefulness in new local & XB tender design?  Potential big operational impact  Minimum requirement = in case of insuffi

  15. Slide 15: R1 Road Map

    R1 Road Map

  16. Slide 16: Existing R1 mix in Belgium in 2015

    Reminder- Existing R1 mix in Belgium in 2015 R1 down R1 100 mHz R1 up Plev Plev Plev F<Fs F>Fs F<Fs F>Fs F<Fs F>Fs -200mHz -100mHz +100mHz +200mHz -200mHz -100mHz +100mHz +200mHz -200mHz -100mHz +200mHz -100MW Conventional power Nuclear power plants Industrial load (e.g. plants (e.g. CCGT) electroly

  17. Slide 17: R1 Future developments – What are Elia's objectives?

    R1 Future developments – What are Elia’s objectives? BE Flexibility from Non CIPU main challenges for Open all R1 products to BSPs Elia 1 GFA harmonized with Integrate new technologies in R1 mix (ex: neighboring countries batteries) applicable to all market players (BRP, BSP,…) for all technologies

  18. Slide 18: Identified R1 potential on BE market

    Identified R1 potential on BE market WKK @ TSO can deliver R1 down & R1 100 mHz R1 product type CIPU Non CIPU Potential for R1 TSO DSO TSO DSO down from biogas Asym up / R1 down R1 down (NA)* R1 down R1 down & biomass units down R1 up (NA)* R1 up (NA)* R1 up R1 up Sym 100 / 200 R1 sym R1 sym (NA)* R

  19. Slide 19: What actions must be taken to reach these objectives?

    What actions must be taken to reach these objectives? Decoupling from Partial opening Full opening Ex: batteries CIPU Integrate new Flexibility from non CIPU Open R1 products to BSP Generic R1 GFA technologies R1 Asymmetric (DSO R1 symmetric (TSO grid) R1 symmetric R1 symmetric grid) - FSP contract

  20. Slide 20: How does Elia correct BRP perimeter for R1 delivered by BSP?

    How does Elia correct BRP perimeter for R1 delivered by BSP? AS IS principle  Only concerns symmetrical products (R1 100 & 200 mHz) GFA R1 prod  Formula to calculate volume to be corrected for one QH:  K = parameter * volume of R1 made available for this QH  R1 made available = comparison betwee

  21. Slide 21: What solution for ARP perimeter correction?

    What solution for ARP perimeter correction ? R  Possible solutions are:  option 1: Abandon the ARP perimeter correction  Option 2: Use measurements to approximate R1 activated energy (via R1 made available formula)  Option 3: Implement nomination processes to approximate R1 activated energy (via

  22. Slide 22: Conclusions

    Conclusions Elia’s objectives for development of its R1 product are:  R1 BE market must be accessible to all market players (BSP, BRP,…)  All R1 BE market players need to get access to R1 cross-border platform  R1 BE design must make possible participation of new sources (renewable ; batteries ;…

  23. Slide 23: XB Balancing info

    XB Balancing info Explore NC On EB

  24. Slide 24: EXPLORE Status Update

    EXPLORE Status Update Balancing Stakeholder Group November 27th Brussels

  25. Slide 25: Explore

    Explore European X-border NL GERMAN Project for TSOs LOng term Real-time balancing Electricity market design

  26. Slide 26: Background: Analysis common FRR market

    Background: Analysis common FRR market Common qualitative FRR market comparison on subject of BE-NL-GE Coba 1 • Results of study published on TSOs website Austrian, German, Dutch and Belgian TSO decided to proceed with the analysis of a 2 potential common FRR Balancing Market design • Work ongoing i

  27. Slide 27: BE-NL-DE-AT: natural partners for balancing

    BE-NL-DE-AT: natural partners for balancing No use of replacement reserves:  (Mostly) reactive balancing;  EXPLORE TSOs rely on ID markets with short GCT Harmonized ISP of 15 minutes:  Important for settlement, pricing, product design,…;  Important for balancing incentives. No economic optimizat

  28. Slide 28: Objective and starting assumptions

    Objective and starting assumptions Objective EXPLORE: • Develop technical and market concepts for cross-border exchange of Frequency Restoration Reserve (aFRR & mFRR) Starting points: • No economic optimization between use of aFRR and mFRR balancing energy: – Activation trigger based on technical co

  29. Slide 29: Ongoing work in EXPLORE

    Ongoing work in EXPLORE Discussions on pricing and settlement fundamentals: • Local or cross-border pricing; • Per product or cross-product pricing; • Pay-as-bid or pay-marginal; • Function of imbalance pricing and desired balancing incentives; • Balancing energy gate closure times; • Relationship t

  30. Slide 30: mFRR product design discussions

    mFRR product design discussions Current reflections / first ideas of EXPLORE TSOs on the mFRR product design discussions go in following direction (might still change): Short minimum delivery period Direct activated product with (0 minutes) option for scheduled activation mFRR product design Block s

  31. Slide 31: Status NC on EB

    Status NC on EB • Status NC: ongoing trilateral discussions between ACER/EC/ENTSOe on open topics • Early implementation projects presented at the last Balancing Stakeholder Group • Definition standard products • First proposal CoBAs • CBA harmonisation ISP • All slides & info regarding the Balancin

  32. Slide 32: Status NC on EB: standard products mFRR & RR

    Status NC on EB: standard products mFRR & RR P-DA-15-15/30 P-DA-10-10/25 P-DA-5-5/20 P-Sch-15-0/15 P-Sch-30-15 P-Sch-15-15 (mFRR) (mFRR) (mFRR) (mFRR) (RR) (RR) FAT 15 10 5 15 30 15 Min delivery 15 10 5 0 15 15 Max delivery 30 25 20 15 15 / 60 15 Temporal Mandatory yes. Mandatory yes. Mandatory yes.

  33. Slide 33: Status NC on EB: standard products aFRR

    Status NC on EB: standard products aFRR Study performed by E bridge/ Aachen University to asses: - aFRR capability in EU LFC Blocks - Impact pro-rata vs. merit order Pressure from stakeholders to develop one EU aFRR standard product This EU Work will define the future Belgian Balancing product for a

  34. Slide 34: Status NC on EB: Coordinated Balancing areas

    Status NC on EB: Coordinated Balancing areas Discussion/proposals on the geographical configuration of the future regional balancing markets for : - Imbalance netting - Automatic FRR (R2) - Manual FRR (R3) Imbalance netting: ENTSOe & ACER propose to start with one region for Continental Europe Autom

  35. Slide 35: Status NC on EB: Harmonisation ISP

    Status NC on EB: Harmonisation ISP • External Consultant Frontier Economics • Survey launched to identify costs/benefits of ISP harmonisation • So far 93 replies received • Many details on costs • Some details on benefits • Some answers contained only general feedback, logical chains and an overall

  36. Slide 36: Billable margin, Transparency & Balancing publication

    Billable margin Transparency & Balancing publication

  37. Slide 37: Improvements Wind Forecasting Tool

    Improvements Wind Forecasting Tool: Intraday windforecasting - Until end 2015: update frequency is 1 time per day at 11h00 for the next day. - From beginning 2016: „most recent forecast“ is updated 4 times per day at 06h00,11h00, 16h00 and 21h00. EXPORT FUNCTION Until 14th of Feb 2016 From 15th of F

  38. Slide 38: Publications – R1 & Minute publication

    Publications – R1 & Minute publication • Frequency / R1 data • Where? Grid Data > Data download > Balancing > Frequency R1 Data Live • What? Frequency [Hz], Contracted R1 [MW], Requested R1 [MW] (monthly update) • Minute publication • Where ? Grid Data > Balancing > Current system imbalance • What?

  39. Slide 39: Billable margin

    Billable margin • Block bid approach entering into force on 1st of march 2016 Requested Impact on system volume • Requested volume put in NRV • Pimb = Price of requested volume Impact on ARP • Requested volume put in ARP perimeter • Requested volume x price paid to ARP  realized - requested volume

  40. Slide 40: Transparency auctions

    Kia Transparency auctions

  41. Slide 41: Publication of total offered volume (BASE) on the Elia website

    Publication of total offered volume (BASE) on the Elia website Total offered volume considers the maximum offered by a supplier: • Offer 1: 10MW R1 + 0MW R2 Total offered volume • Offer 2: 0MW R1 + 25MW R2 • R1 = 10MW • Offer 3: 5MW R1 + 20MW R2 • R2 = 25MW Timing: august

  42. Slide 42: Publication of a price indicator

    Publication of a price indicator 1. “Price indicator” Price indicator: a percentage indicating with how much the cost of the offer should be reduced in order to be retained with the existing bids. Example: Volume demand is 15 MW Offers Supplier A: Offers Supplier B: # Volume Price Total cost # Volum

  43. Slide 43: Publication of a price indicator

    Publication of a price indicator Price indicators: # Volume Price Total cost Price ind # Volume Price Total cost Price ind 1 10 1,2 12 12,5% 1 1 0,8 0,8 100% 2 15 1,0 15 0% 2 5 0,9 4,5 33% 3 15 2 30 50% Supplier A - Offer 1: In order to be retained, we need offer 1 from Supplier A and offer 2 from s

  44. Slide 44: Conclusion

    Conclusion • Elia will publish the offered volume for R1 and R2 • Elia requests feedback on publication of the price indicator. 44

  45. Slide 45: Black start

    Black start

  46. Slide 46: Agenda

    Agenda • General introduction in the Black Start Service • Results Tender 2016-2020 • New Tender NOV2017 • Conclusion 46

  47. Slide 47: General introduction in the Black Start Service

    General introduction in the Black Start Service

  48. Slide 48: Black Start Service

    Black Start Service The Black Start Service places production units at Elia’s disposal in order to swiftly restore the power supply from the grid in case of a Black-Out. The production units must be able to start up without any input from the high-voltage network. The Black Start Service can be offe

  49. Slide 49: Technical requirements

    Technical requirements - Ability to (within 3h if not in service; within 1.5h if in service at the time of the Black Out): - Bring a part of the grid under voltage - Supply auxiliaries of other production units - Supply load (fluctuations up to 10 MW) - Rules for Minimal absorption capacity (30 Mvar

  50. Slide 50: Results Tender 2016-2020

    CRTia Results Tender 2016-2020

  51. Slide 51: Results tender 2016 – 2020

    Results tender 2016 – 2020 Facts • 3 Candidate suppliers • 5 powerplants requested, 5 powerplants offered • 2 Powerplants contracted for a period 2016 – 2020 • 3 Powerplants contracted for a period 2016 – October 2017. New tender required for 3 power plants starting 11/2017.

  52. Slide 52: Lessons learned from Tender for 2016-2020

    Lessons learned from Tender for 2016-2020 Feedback from interested candidates who decided not to present an offer, included: • Not enough time to create a firm bid (e.g. permits) • Not enough time for the implementation when retained • No transparency regarding the prices Elia will take this feedbac

  53. Slide 53: New Tender Black Start

    CRTia New Tender Black Start

  54. Slide 54: Black Start – new tender

    Black Start – new tender • Need as from 01/11/2017: 3 Powerplants to be contracted • Who: all CIPU powerplants OR combination of CIPU powerplants behind one connection, that comply with the conditions set forth in the tender. • Contract design: Concepts of the contract design are similar to those ap

  55. Slide 55: Planning Tender

    Planning Tender Elia requests feedback on the timing: deadline to submit offer might still move based on feedback after TF balancing. 55

  56. Slide 56: Conclusion

    Conclusion Sia

  57. Slide 57: Conclusion – new tender

    Conclusion – new tender • Existing contract design allows for flexibility in terms of the configuration of Black Start sites/aggregation of multiple unit/assets. • Elia invites potential suppliers to contact Matthias Masschelin and/or Sofie Van den waeyenberg for bilateral discussions on the possibi

  58. Slide 58: Future evolution R3

    Future evolution R3

  59. Slide 59: Future Evolution R3

    Future Evolution R3 Current set of products used for the mFRR-reserves Types Sourcing Aangeboden door MW (yearly) MWh R3-PROD Yearly/monthly Generation 302 MW 4 GWh Load + Generation 209 MW BASE R3-DP Yearly/monthly 1 GWh (TSO and DSO connected) 1 MW PK 178 MW BASE ICH Yearly Afschakelbare klanten (

  60. Slide 60: R3 - ICH monthly

    R3 - ICH monthly Objective was to increase ICH market liquidity, however the picture has changed…. 2015 2016 (new nuclear situation) • SDR volume: some ICH migrated to SDR that • Driver disappeared due to SDR = 0 could be offered in summer as ICH monthly PRO’S • Industrial have better visibility on

  61. Slide 61: R3 – Future sourcing 2017

    R3 – Future sourcing 2017 • Introduction of monthly sourcing in 2016 R3 Prod R3 DP ICH 700 MW yearly 70 MW monthly (R3 Prod + R3 DP + ICH) (R3 Prod + R3 DP) • Experience with monthly sourcing: 2 auctions Delivery Period Total Contracted Vol. [MW] Avg Price[€/Mw/h] Total Offered Vol. [MW] Jan 2016 70

  62. Slide 62: R3 – GL on Electricity Balancing

    R3 – GL on Electricity Balancing Objectives of the code • Foster effective competition and transparency in Balancing markets • Promote the exchange of balancing services • Facilitate the participation of Demand Side Response including aggregation facilities and energy storage • Facilitate the partic

  63. Slide 63: Many thanks for your attention!

    Many thanks for your attention! ELIA SYSTEM OPERATOR Boulevard de l'Empereur 20 1000 Brussels +32 2 546 70 11 info@ elia.be www.elia.be An Elia Group company

Elia — Technical Presentation (January 2016) on 6ix