Transcript User Group on balancing

User Group on balancing
12 September 2013
Energinet.dk
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Agenda
• The balancing network code (Energinet.dk) 30 min
• Status of the balancing network code
• Balancing network code – system design rules
• Future system examples
• Data provisions
• Discussion on questions (all) 50 min
• Discussion on questions sent out before the User Group
• Opinions round-the-table
• Conclusions (Energinet.dk) 10 min
• Short break before shipper meeting
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Status of the Balancing
network code
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Status of BAL NC
• The balancing network code is right now in the hands of the Member States
• Expected to be finalised at meeting in October
• Hereafter follows 3 months of comitology
• The balancing code will ”rest” for 3 months
• Thereby formally approved by the European Parliament
• Expected to be implemented into Regulation 715/2009 on 1 April 2014
• Only minor changes expected from ENTSOGs version
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Implementation timeline in BAL NC
3 possible implementation timelines:
• Fast track
• 1 year after rules have been adopted into Regulation
• Energinet.dk will primerely follow this path, implementing most
requirements towards 1 October 2014
• ”Semi” fast track
• 2 years after rules have been adopted into Regulation
• Requires NRA approval
• Some requirements (eg nDMS data) will be implemented
towards 1 October 2015
• Implementation with interim steps
• Stepwise implementation over 5 years
• Requires NRA approval
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Implementation time schedule for balancing in DK
Market
Market involvement
DSO
DSO coporation
1.
DERA
DERA dialogue
ENDK
1.5.2013
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Analysis
1.10.2013
The different
topics will be
discussed in one
step
DSO coporation – 2.
DSO cop.
-3.
Implementation step 1
Implement.
step 2
1.1. 2014
1.10.2014
1.10.2015
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BAL NC system design rules
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Overall principles for BAL NC
Framework Guidelines on balancing are based on 3 core principles:
1.
Balancing must primerely be carried out by the shippers
2.
The shippers must have the right market tools to fulfill its role as balancing
responsible party
3.
Shippers must have the right data, to fulfill its role as balancing responsible
party
Rationale:
A competitive market will be able to
balance the system in a more cost
efficient matter, than a TSO is capable of!
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Operational balancing
• There must be developed a number
of short term standardised products,
for the market and the TSO to undertake
operational balancing actions
• Products could be developed at eg. an
exchange
• Title products (day-ahead and within-day) are first priority
• Title products exist at Gaspoint Nordic today, but must be designed differently
(eg longer trading hours, more dynamic within-day products ect.)
• As a fifth option, TSOs can also develop a balancing platform, where public
tenders with the market are performed
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When is a shipper imbalanced?
The TSO shall calculate a Daily Imbalance Quantity for each network user in
accordance with the following basic formula
Daily Imbalance Quantity = Inputs – Off-takes
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Calculation of daily imbalance charge
Marginal
sell or
Buy Price
Daily
Imbalance
Charge
• The marginal Sell Price =
• the lower of either the lowest price of any trades of Title Products in which the TSO is
involved, or
• the Weighted Average Price of gas minus a small adjustment (max 10 %)
• The marginal Buy Price =
• the higher of the highest price of any trades in Title Products, or
• the Weighted Average Price of gas plus a small adjustment (max 10 %)
• The small adjustment = payment that shall incentivise network users to
balance their inputs and off-takes
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Daily imbalance charge - example
Highest TSO trade on STSPs
Weighted Average Price plus
small adjustment
Price development over the gas day
(on day-ahead and/or within-day)
Weighted Average Price
Weighted Avereage Price minus small
adjustment
06:00 Gas day starts
06:00 Gas day ends
Lowest TSO trading price on STSPs
In this example
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
TSO charges the end of day imbalance of shippers being
long with: lowest TSO trading price on STSPs

TSO charges the end of day imbalance of shippers being
short with: WAP + small adjustment
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Possibility of providing a Linepack Flexibility
Service
The TSO can choose to provide a Linepack Flexibility Service, but only
• if there are the needed flexibility and TSO not need to enter into any
contracts with any other infrastructure provider (eg. storages)
• if within-day obligations are not applied
• if it is offered on a transparent and non-discriminatory manner to the
market
• Today linepack is offered as BSA, but in the future system:
Linepack Flexibility Service can
be compared with a system
wide balance margin
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Future system examples
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Basic model
Upper physical limit
Upper TSO reaction zone
No TSO interference
Lower TSO reaction zone
Lower physical limit
Gas day

Energinet.dk envisage a model with different ”zones”

Green zone = market balance with no TSO interference

Yellow zone = TSO reaction, through e.g. commercial products

Red zone = physical limits of the system

TSO reaction based on total system balance
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Commercial balancing - with cash-out (Belgian
model)
20
15
Linepack imbalance
10
5
TK_1
TK_2
0
1
4
7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94
Kom_bal
Fys_bal
TSO
-5
-10
-15
-20

Shippers (and TSO) are cashed out end-of-day

The physical balance continues (grey line)

TSO takes (trading) action within-day, when commercial balance crosses green limit

Shipper 2 trades himself into an imbalance on day 2, which ”forces” him to renominate

TSO can also trade the physical position
Hours
16
Commercial balancing - Linepack flexibility service
(envisaged Dutch model)
20
15
10
Linepack imbalance
5
TK_1
0
1
4
7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94
TK_2
TSO
-5
Kom_bal
Fys_bal
-10
 Shippers balancing position continues across gas days
-15
 TSO takes (trading) action within-day, when commercial balance crosses green limit
 In this example: TSO buys gas off shipper 1 on day 2 and sells it back to the market on
day 3; could also be handled by ”moving” imbalance instantly from ”helper” to ”causer”
(envisaged Dutch solution)
-20
 Shippers pay tariff for linepack, depending on position end of day
-25
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Timer
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Data provisions
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Information Provision
Base Case
Measurements
& Prediction D
Not Provided
Provided
• Twice a day per network
user.
• The measured quantity.
Daily Metered
Not Provided
Not provided
No readings available
Non Daily Metered
Prediction Provided
• End of day value
• Prediction based on profiles
and their variables (temp, …)
Prediction Provided
• End of day value
• More precise prediction of
profile variables (temp, …)
Allocation
D+..
.
End of day input measurement
Intra Day Metered
Forecast
D-..
Measured
Measured
Estimated
• Based on profiles and their
variables (temp, …)
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Information Provision
Variant 1
Non Daily Metered
Not Provided
Provided
Not Provided
Not Provided
• At least twice a day per
network user.
• The measured quantity.
Prediction Provided
• Based on diurnal profiles or
nominations.
• Estimated consumed qty.
Prediction Provided
• Estimated consumed
quantity (diurnal profiles).
• Prediction based on profiles
and their variables (temp, …)
Allocation
D+..
.
End of day input measurement
Daily Metered
Measurements
& Prediction D
During the day input measurements
Intra Day Metered
Forecast
D-..
Measured
Measured
Estimated
• Based on profiles and their
variables (temp, …)
Status update of
consumed quantity.
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Information Provision
Variant 2
Measurements
& Prediction D
Not Provided
Provided
• Twice a day per network
user.
• The measured quantity
Daily Metered
Not Provided
Not provided
No readings available
Non Daily Metered
Prediction Provided
• Prediction based on profiles
and their variables (temp, …)
Not provided
(Fixed)
Allocation
D+..
.
End of day input measurement
Intra Day Metered
Forecast
D-..
Measured
Measured
Fixed
• Based on the forecast
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User Group on balancing
Questions for preparation
12 September 2013
09:00-10:30
Energinet.dk, Pederstrupvej 76
Initial questions
• The Dutch balancing regime is often referred to as the most well-
functioning balance system in the EU, and is based on a form of ”trust”
between shippers and TSO
• Do you agree with these statements, and why?
• Could a smaller scale copy of the Dutch, or the Belgian system
work in Denmark (both models will be presented at the User
Group)
• Are there balancing experienses from other countries
(good/bad) that Energinet.dk should be aware of?
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Trading products
According to the balancing network code (article 12 to 15), there are 4 types of
standardised short-term products which can be offered on the market, for the
TSO to balance
• Besides day-ahead and within day products, which are
mandatory, could you see yourself trading locational and/or
temporal products during the gas day?
• What are the necessary trading windows, in order for you to
react within-day?
• Please explain why?
The balancing network code also allows for balancing platform where the TSO
can hold tenders, if balancing actions cannot be fulfilled by the short term
products (article 16)
• Do you see that short term products will fulfill the market’s (and
TSO) need to balance, or should a balancing platform also be
established? Please explain why?
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End of day settlement
Different balancing models are possible towards the end of day settlement
(models will be presented at the user group), eg:
• Daily cash out to zero every day, at the daily imbalance charge (market
price + small adjustment or TSO trading price)
• No cash out end of day, but usage of linepack flexibility service (with a
fee) where balancing positions are continued
• Given af system, where both the daily imbalance charge and the
linepack flexibility service price is linked to market prices, which
model do you as shipper prefer?
• Please argument why?
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Within-day data – DMS and BNG portfolios - 2013
Daily energy
balance to all
shippers
6
6
Gas day (D)
12
13:45
Gas day (D+1)
20
Within-day data
to shippers with
DMS and BNG
portfolios.
First 6 hours of
current gas day
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21:45
Within-day data
to shippers with
DMS and BNG
portfolios.
Within-day data:
First 14 hours of
current gas day
• XML
• SDV file
• Energinet.dk Online
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Data provisions - questions
• When 2 updates are applied, are these timings suitable for you?
• If more updates are possible in the future, when are the most
critical times?
• When no balancing margin is available, what is the critical
number of updates for you to manage your balance?
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Data provisions – data model questions
Based on BAL NC text and todays presentation
• Which of the 3 data models would you as shipper prefer?
• Please explain why?
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Conclusions
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