Transcript ETSO road-map update

Flow-based Allocations
Mini Forum Central Western REM
June 20th, 2006
Pursuing the Optimum. Two Paths
When dealing regional capacity allocations,
a maximised social welfare can be reached
through two different paths:
 market coupling first (sharing energy bids)
 flow-based modelling first (optimal use of the system)
Sharing bids
Grid models
Unilateral
Auctions
Unilateral
ATC assess.
Coordinated
ATC assess.
Technical
Profiles
Flow-Based
Bilateral
Auctions
Multilateral
Auctions
path #1
path #2
Market
Coupling
ETSO Vision on Achieving the Optimum
Effective and timely use of available data
by TSOs, including
regulatory and market frameworks which
facilitate free and confidential data exchanges
access to relevant data from market
participants
efficient data exchanges between TSOs
Progressive development of the ETSO
regional flow-based transmission model
What is the Flow-Based Model?
An improvement of the NTC/profiles
concepts, supporting
regional auctions (explicit or implicit),
complying with new CM Guidelines
a highly meshed grid
Elaborated by TSOs, based on a
reference state of the power system
What is the Flow-Based Model?
cont.
Adding more accuracy (=security)
preserving the zonal/hub model
reducing the impact of wrong predictions
increased but moderate volume of data
to be exchanged by TSOs
Step-by-step implementation possible
technical dry-run implementation
decentralised / centralised
Theoretical Comparison of Models
Flow based modeling maximises the
security domain allowing for more
cross-border trade opportunities
C
A=>B
A
100
B
Security
domain
Coordinated
ATC
assessment
max(A=>B+A=>C)
A=>C
Coordinated
Technical
profiles
assessment
flow-based
Heading for Some Cultural Changes?
Reaching the limits of TSO subsidiarity
Political will and compatible regulatory
frameworks are both required
supporting free and confidential exchange of data between
TSOs
supporting a single set of regional capacity allocation Rules
Using a regional flow-based transmission
model means that…
 all capacity (explicit) or energy (implicit) bids are
simultaneously cleared
 the market will find its most efficient XB trades by itself
no more sub-optimal ex-ante sharing of fixed NTCs
 congestion income is shared on a regional basis
What Roadmap for the Region?
Integrating the national wholesale markets
in this region should be seen as the priority
 Central Western REM > 50 % of the IEM
 interconnected to all other REMs
Local initiatives should always be supported
 implementation of market based mechanisms since end
of 2005 on all interconnections
 implementation of Trilateral Market Coupling in 2006
What Roadmap for the Region? cont.
A common regional allocation of capacities
through the integration of all spot markets
as the natural next step in the region …and
beyond!
Aiming at the optimum thanks to the
development of an underlying flow-based
transmission model as the final target
ETSO ‘Flow-based’ Publications
‘List of data European TSOs need to pursue
optimal use of the existing transmission
infrastructure’, December 2005
‘FMC-Flow-based Market Coupling’, September
2004
‘Cross-Border Electricity Exchanges in Meshed
AC Power Systems’, April 2004
‘Coordinated Congestion Management, an
ETSO Vision’, April 2002
www.etso-net.org