Presentation on theme: "Deliverable I.4 Balancing (15th IG meeting, Paris, April 7th 2014)"— Presentation transcript:
1 Deliverable I.4 Balancing (15th IG meeting, Paris, April 7th 2014) -TERRE project-(15th IG meeting, Paris, April 7th 2014)
2 Context ACER’s recommendations to ENTSO-E Electricity Balancing Framework Guidelines (FWGL)Promotion of coordination between TSOs regarding cross-border balancing mechanism as a necessary interim step towards the harmonization of the balancing markets in Europe and the implementation of the Electricity Balancing Network Code (NC)ENTSO-E call of nomination for balancing pilot projects with the aim toGain experience in terms of implementation of inter TSO regional balancing mechanismTest the feasibility of the balancing target model identified in the FWGLEvaluate the associated implementation impactThe experience gained with the pilot projects will be reflected in the future developments of the NCTERRE Pilot ProjectIn this framework, National Grid, REN, RTE and TERNA proposed the Trans-European Replacement Reserves Exchanges project (“TERRE Project”)
3 Scope of TERRE pilot project Design and test the feasibility of a multi-TSO coordinated exchange of Replacement Reserve - Cross Border Balancing EnergyParticipantsTerna, RTE, National Grid Electricity Transmission Plc, National Grid Interconnectors Limited, RENSwissgrid and REE expressed their interest to the project and could join the project during the design phaseProject phases:Design phase (started in 2014) – Currently in progressImplementation phase (will be started between end of 2014 and beginning of – it depends on the progress of the whole aspects of the project)TERRE design phase aims to design a solution compliant with the requirements of:The ENTSO-E proposal of standard productThe NC (1/centralized and automatic management of XB capacities, 2/in a first step, offers based on cheapest internal bids, in a second step, all internal bids offered, 3/improved matching process)
4 Working axes Definition of the standard TERRE products (TERNA) Definition of RR offers and RR needsDefinition of matching process and settlement procedure (RTE)TSOs’ RR needs nettingFCFS or Implicit AuctionMarginal price or pay as bidFinancial issues (NGET)Definition of financial settlement between TSOsStudy of the potential financial benefitTiming and scheduling (REN)ATC management (RTE & NGIC)Centralized ATC managementInteraction between the ID market and TERRE processGovernance issues (All)
5 Characteristics defined by the WG AS Updated status of the project – main achievements (1/2)MoU and NDA covering the design phaseSignature process still in progressDefinition of the standard TERRE productsBased on the requirements of the ENTSO-E ancillary services working group (WG AS) in charge of the definition of Balancing Standard ProductsAll TSOs expressed their proposals on the values and constraints that each characteristic of TERRE product should respectTERNA is merging all the proposals in order to define a common set of minimum requirements for TERRE products123654Full Activation time(from LFC-R)Full Delivery Period1- Request time2- Preparation period3- Ramping periodCharacteristics defined by the WG AS4- Min & max bid size5- Min & max delivery period6- Deactivation period
6 Updated status of the project – main achievements (2/2) Definition of matching process and settlement procedureA qualitative study has been initiated and is now under review by all TSOs: both FCFS and Implicit Auction methods are compared according to criteriaData collection has been launched in order to assess the volumes and characteristics of balancing offers available in each countryThe feasibility of a quantitative study is under investigationFinancial issuesData collection has been launched in order to assess the potential financial benefit of TERRERTE has developed a balancing simulation facility tool. This tool optimizes (by applying balancing cost minimization) the selection and allocation of balancing supply quantities to address a balancing demand, taking some technical constraints into accountRTE proposed to the TERRE project group to use this for processing financial simulation. This point is under discussion.