Presentation

Transcrição

Presentation
User Group Meeting BGM 2015
Mövenpick-Hotel Zurich Airport, 11th November 2015
Agenda
10:00
Welcoming address
Dr. Jörg Spicker
Member of the Executive Board
10:20
Know your customer-Process
Tim Albersmann
10:50
Implementation of position limits, consumption forecast and 1 BG model
Oliver Haubensak
11:45
New balancing contract and consultation
Theodoros Sevdas
12:00
Lunch / opportunity to discuss with Swissgrid representatives
13:00
Further development of market design for Switzerland
Dr. Christian Kunze
14:00
Workshops to following topics
» Improvement of price signals
» Responsibility of balance groups for security of supply
» Improvement of cross-border trading
» Dr. Christian Kunze
» Dr. Arthur Janssen
» Urs Ziegler
15:00
Coffee break / opportunity to discuss with Swissgrid representatives
15:15
Nomination and schedule management operations & customer satisfaction
15:45
Feedback round and questions
16:00
End
11th November 2015 / User Group Meeting BGM 2015
Urs Ziegler, Marc Rüede
Nicolas Schledermann, Benito
Barberio
User Group Meeting BGM 2015
Dr. Jörg Spicker, Member of the Executive Board
Mövenpick-Hotel Zurich Airport, 11th November 2015
The electricity market is rapidly changing
» Different system
» Different market parties
» Different trading
11th November 2015 / User Group Meeting BGM 2015
The electricity system will be fundamentally different
» Energy efficiency
» Decentralised production
» Volatile generation
11th November 2015 / User Group Meeting BGM 2015
Balance Group portfolio is growing continuously
128
50
2009
11th November 2015 / User Group Meeting BGM 2015
2015
Trading patterns are changing
Example: Implicit Day-Ahead trade volumes have drastically increased
Source of data is EPEX Spot
11th November 2015 / User Group Meeting BGM 2015
Swiss market is increasingly instable and inappropriate
» Responsibility of Balance Groups?
» Efficiency of the “Energy Only Market”?
» Integration in EU-market?
11th November 2015 / User Group Meeting BGM 2015
Responsibility of Balance Groups is tested
» Balance Groups are responsible for
the functioning of the market.
» But what does it mean for each
Balance Group to ensure a balanced
portfolio?
» What is the role of the TSO in
ensuring grid stability?
11th November 2015 / User Group Meeting BGM 2015
Efficiency of the «Energy Only Market» is questioned
» Do today’s marginal prices reflect
the real value?
» Do we need a regulated capacity
mechanism, support payments?
» Is cross-border trading still efficient
or should it be adapted?
11th November 2015 / User Group Meeting BGM 2015
Situation with EU creates considerable uncertainty
» Cooperation with EU heavily
impacted by Bilateral
Negotiations
» Solution without EU and
neighbouring countries
problematic
11th November 2015 / User Group Meeting BGM 2015
We must face this together
» Swissgrid facilitates the
market, ensures grid
stability
» Market parties ensure the
functioning of the market
11th November 2015 / User Group Meeting BGM 2015
Two-step approach to develop the Swiss market design
We have engaged you in a
cooperation to
» Reduce risks
» Increase efficiency
11th November 2015 / User Group Meeting BGM 2015
Short-term: Reduce imminent risks with smaller changes
» Sharpen a common understanding of Balance
Group responsibility
» Main points: KYC-process, position limits,
contractual clarifications
» Discussed intensively with BG representatives
since last User Group Meeting
 Consultation starts tomorrow, 12th Nov 2015
 Implementation proposed by Mid 2016
11th November 2015 / User Group Meeting BGM 2015
Long-term: More fundamental changes
» Increase efficiency and innovation,
build on Swiss values and specifics
» Main points: Price signal, adequacy
responsibility, cross-border trading
» Worked on these topics with many
stakeholders in several projects
 Workshops today, start “informal consultation”
till end of this year
 Implementation decisions will follow in 2016
11th November 2015 / User Group Meeting BGM 2015
A common goal
With the development of the
market design, we try to
exploit potentials of the future
electricity system
11th November 2015 / User Group Meeting BGM 2015
Know your Customer-Process
Tim Albersmann, Project Manager Customer Affairs
Mövenpick-Hotel Zurich Airport, 11th November 2015
Virtualisation and internationalisation are growing
challenges for trustful business relationships
» Growing international
balance group portfolio
» Loss of relationships and
trust values due to
virtualization
» Take on responsibly is
essential for a working
Swiss market and network
stability as well
11th November 2015 / User Group Meeting BGM 2015
Balance Group portfolio is growing continuously
128
50
2009
11th November 2015 / User Group Meeting BGM 2015
2015
Companies with different business models and
characteristics participate in the Swiss market
» Established company ↔
Start-up
» Big ↔ Small
» Trading and/or supplying
customers
» Shared processes ↔ All inhouse
11th November 2015 / User Group Meeting BGM 2015
Relationships of trust shall not be lost due to ongoing
virtualisation and internationalisation
«Back in the days»
«Nowadays»
Collaboration
Daily telephone
coordination
Virtual, digital
Business
relationship
Bilateral (1:1)
Multilateral (1:N)
Business
model
Long run, stable
Flexibility, agility,
ongoing liberalisation
Location
Local and central
International and
decentral
11th November 2015 / User Group Meeting BGM 2015
Balance Group Management is of central importance for
the Swiss electricity market
» National and international
physical processing of trades
» Supplying end customers
» Power frequency control
» Control energy use
» Settlement of balance energy
11th November 2015 / User Group Meeting BGM 2015
Balance Group Management also provides input for grid
management and security analysis
» The set point for the system controller is thus determined from all cross-border
schedules
» Cross-border schedules and the power plants' production schedules provide an
important determining factor for the grid security analysis
11th November 2015 / User Group Meeting BGM 2015
Highest priority for Swissgrid is maintaining the security of
supply at all times
»
± 800-900 MW control
reserves are available for
this purpose, among other
measures within the Swiss
control area
» Control reserves are not
meant to be used for secure
trading
» Control reserves are meant
for short-term consumption
and production deviations
» Each balance group is
obliged to reach a zero
11th November 2015 / User Group Meeting BGM 2015
In order to provide network security and a functioning
Swiss market, it is essential to take on responsibilites
TSO
» Ensures network stability
» Provides a suitable BGM «framework»
and reliable market
» Low utilization of control energy
11th November 2015 / User Group Meeting BGM 2015
Market
» Capable to operate scheduling
processes in a professional manner
» Responsible for being zero balanced
» Handles the contractual commitment
The Swiss market relies on all participants to take on
their responsibilites
» A single imbalance is able to endanger the whole
Swiss electricity system
» The Swiss electricity system places its trust in all
participants
» This works only if we can rely on all participants to
assume their responsibility - without a single
exception!
11th November 2015 / User Group Meeting BGM 2015
Three major things we have learned from cases of
imbalances
» Capability to handle
complex products and
processes is key for each
market participant
» Risk processes can break
down the risks of complexity
to a manageable level
» Availability
11th November 2015 / User Group Meeting BGM 2015
How can we make sure that every entity
assumes its responsibility?
11th November 2015 / User Group Meeting BGM 2015
Create a shared understanding
of risks and solutions
Introduction of Limits
11th November 2015 / User Group Meeting BGM 2015
Build up trustful relationships
through
Know Your Customer (KYC)
approach
Review and clarification of BGM
contract
The «KYC» approach will enable us to mitigate risks and
provide a safe market environment
» We need to be able to trust that market participants are able to handle the
contractual commitment
» We will check that responsibilities can be taken on before activation and
during operations
» Focus on the current BG portfolio and future market participants
» To lift anonymity and to build strong business relations is essential to trust
» Knowledge about the portfolio will enable us to manage risks appropriately
11th November 2015 / User Group Meeting BGM 2015
The «KYC» approach is based on three key elements and
will complement the registration and activation process
Identity
Analysis and proof of
basic identity information
Context
Risks
Understanding the
context scheduling is
used for in the business
model
Evaluation of trading
positions, consumption
and risk mitigating
capabilities
BG registration and activation process
11th November 2015 / User Group Meeting BGM 2015
In order to track changes in the BG Portfolio, the «KYC»
approach is ongoing
Identity
Analysis and proof of
basic identity information
Context
Risks
Understanding the
context scheduling is
used for in the business
model
Evaluation of trading
positions, consumption
and risk mitigating
capabilities
BG registration and activation process
Operational processes
11th November 2015 / User Group Meeting BGM 2015
Before activation and during operation the Balance Group
needs to meet requirements and contractual commitments
» General requirements need
to be met for the activation
and ongoing operational
processes
» Obligation and compliance
for specific scheduling
processes are necessary to
provide a secure network
and Swiss market place
11th November 2015 / User Group Meeting BGM 2015
The Balance Groups should meet the following essential
requirements and contractual commitments
General requirements
Scheduling process-specific
requirements
» To pass the registration
process successfully
» Obligation to generally provide
a zero power balance
» To update or provide the
required information for the
registration
» Compliance with:
− the submitted schedule
− the limits*
− the plausibility values for
consumption and
production*
» To provide an operational
contact and the availability
thereof to the agreed extent
» Submission of the consumption
forecast for balance groups
with metering points
* will be introduced in the next presentation
11th November 2015 / User Group Meeting BGM 2015
Timeline to implement the «KYC» approach
Update the registration
form and process
Q4 2015 – Q2 2016
Sign contracts
From Mar 2016
Apply to new registrations
from Q2 2016
Review and analysis of existing portfolio
from Q2 2016
Q4 2015
Q1 2016
11th November 2015 / User Group Meeting BGM 2015
Q2 2016
Q3 2016
Q4 2016
2017
Introduction of todays present Swissgrid Team
Customer Affairs
Massimo
Lorreti
Tim
Albersmann
Trang
Nguyen
Capacity Allocation &
Scheduling
Urs
Ziegler
Marc
Rüede
Nicolas
Schledermann
Benito
Barberio
Market Development &
Design
Dr. Arthur
Janssen
Oliver
Haubensak
Holger
Liske
Theodoros
Sevdas
Monica
Talerico
Dr. Christian
Winzer
11th November 2015 / User Group Meeting BGM 2015
Dr. Christian
Kunze
Introduction of todays present Swissgrid Team
Clearing & Settlement
Markus
Schweizer
Marco
Pranjic
11th November 2015 / User Group Meeting BGM 2015
Strategy & Development
Stephan
Fretz
Corporate Services
Lea
Lindler
Introduction of Position Limits,
1-BG Model and Postponement of Post
Scheduling Adjustment
Oliver Haubensak, Specialist Market Design
Mövenpick-Hotel Zurich Airport, 11th November 2015
Switzerland is one of the EU’s major trading partners for
electricity
Germany
11.5
4.5
0.5
2.9
France
5.8
Austria
10.0
24.4
0.8
Italy
11th November 2015 / User Group Meeting BGM 2015
Electricity Import and Export
In (TWh) 2014
Open positions emerge by the optimization
of electricity flows
Germany
Austria
BG
BG
France
» 4000 MW of
open positions in
BG
intraday
» 1300 MW one hour
before delivery
Italy
11th November 2015 / User Group Meeting BGM 2015
Open positions are much higher than our control reserves
Maximum cumulative open position of all balance groups without metering points per
scheduling day (example 2015)
MW
5000
4000
3000
2000
control
reserves
1000
0
Month 1
11th November 2015 / User Group Meeting BGM 2015
Month 2
Month 3
Month 4
Example: Cumulative open position for one scheduling day
Delivery Hour
Observation Hour
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
16:30
17:00
18:00
19:00
20:00
21:00
22:00
23:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
1386
1386
1386
1407
1407
1407
1407
0
1455
1455
1455
1475
1476
1476
1476
20
0
1334
1334
1334
1355
1355
1355
1375
0
0
0
1525
1525
1525
1545
1545
1545
1545
0
0
0
0
1284
1284
1284
1427
1428
1428
1428
0
0
0
0
0
1513
1513
1513
1776
1777
1777
1777
31
31
31
31
1
1
1605
1605
1605
1746
1746
1746
1746
30
30
30
30
30
30
0
1608
1608
1608
2003
2003
2003
2003
30
30
30
30
30
30
30
0
1782
1782
1782
1977
1977
1977
1977
60
60
60
60
60
60
10
6
0
[absolute netted open position in MW]
11th November 2015 / User Group Meeting BGM 2015
1757
1757
1757
2116
2116
2116
2116
0
0
0
0
0
0
0
0
0
0
1967
1967
1967
2249
2249
2249
2249
38
38
38
38
38
38
38
38
38
11
59
1868
1868
1868
2368
2368
2368
2368
30
30
30
30
30
30
30
30
0
0
4
3
2031
2031
2031
2126
2126
2126
2126
60
60
60
60
60
60
60
60
25
25
25
6
43
2039
2039
2039
2224
2224
2224
2224
578
578
578
578
578
578
578
578
578
578
578
521
451
0
1836
1836
1836
2549
2549
2549
2549
439
439
439
457
457
457
439
439
439
439
439
415
409
91
0
1875
1875
1875
2486
2486
2486
2486
514
513
513
538
538
538
519
519
519
519
480
480
327
98
167
2
1883
1883
1883
2700
2700
2700
2700
360
360
360
385
400
400
360
360
360
360
360
360
373
370
63
135
16
1408
1408
1408
2384
2385
2385
2385
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1087
1102
992
993
6
15
1466
1466
1466
2417
2418
2418
2418
1530
1530
1530
1530
1530
1530
1530
1530
1530
1530
1530
1530
1515
1555
1555
1556
66
25
25
1376
1376
1376
2316
2316
2316
2316
1300
1300
1300
1300
1300
1300
1300
1300
1300
1300
1300
1300
1285
1325
1325
1326
25
25
25
25
1364
1364
1364
2254
2255
2255
2255
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
7
30
0
0
0
1739
1739
1739
1968
1968
1968
1968
33
33
33
33
33
33
33
33
33
33
33
33
33
33
33
33
11
33
0
0
0
0
1755
1755
1755
1813
1813
1813
1813
29
29
29
29
29
29
29
29
29
29
29
29
29
29
29
29
7
29
1
1
1
1
1
1786
1786
1786
1806
1806
1806
1806
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
25
25
1
1
1
1
1
31
1
Open positions are kept until shortly before the physical
delivery
Maximum cumulative open position of all balance groups without metering points
1 hour before delivery per scheduling day (example 2015):
MW
1500
1000
control reserves
0500
0000
Month 1
11th November 2015 / User Group Meeting BGM 2015
Month 2
Month 3
Month 4
Example: Cumulative open position for one scheduling day
Delivery Hour
Observation Hour
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
16:30
17:00
18:00
19:00
20:00
21:00
22:00
23:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
179
179
179
179
179
219
63
0
103
103
103
103
103
143
68
0
0
103
103
103
103
103
143
7
18
56
0
100
100
100
70
70
140
38
0
0
18
0
100
100
100
70
70
150
45
0
0
0
0
3
200
200
200
200
200
200
38
0
0
0
0
0
0
156
156
156
156
156
176
38
1
22
0
0
0
0
0
151
151
151
150
150
150
51
0
0
0
0
0
0
0
68
0
0
0
0
0
0
104
0
0
0
0
0
0
0
44
50
[absolute netted open position in MW]
11th November 2015 / User Group Meeting BGM 2015
1
1
1
0
0
0
129
0
0
0
0
0
0
0
6
0
612
20
20
20
20
20
0
102
0
0
0
0
0
0
0
0
0
2
151
0
0
0
0
0
0
343
0
0
0
0
0
0
0
0
0
0
55
436
0
0
0
0
0
0
532
0
0
0
0
0
0
0
0
0
0
0
338
341
0
0
0
0
0
0
563
0
0
0
0
0
0
0
0
0
0
0
145
56
503
22
22
22
0
0
0
563
0
0
0
0
0
0
0
0
0
0
0
305
80
438
223
53
53
53
0
0
0
543
0
0
0
0
0
0
0
0
0
0
0
0
3
0
363
75
82
82
82
22
22
22
154
0
0
0
0
0
0
0
0
0
45
0
0
3
15
33
87
104
62
62
62
0
0
0
108
0
0
0
0
0
0
0
0
0
0
0
0
0
0
40
5
118
151
51
51
51
0
0
0
58
0
0
0
0
0
0
0
0
0
5
5
0
0
3
47
0
20
30
60
0
0
0
0
0
0
58
0
0
0
0
0
0
0
0
0
0
17
0
3
3
1
0
39
30
30
30
3
3
3
3
3
3
124
3
3
3
3
3
3
3
3
3
3
3
3
3
5
3
3
61
75
50
50
50
38
38
38
25
25
25
116
0
0
0
0
0
0
0
0
0
12
26
0
1
0
31
0
53
68
65
58
58
14
50
50
50
0
0
0
319
0
0
0
0
0
0
0
0
0
12
64
0
0
0
40
0
30
30
172
30
30
30
30
33
33
33
17
17
17
525
0
0
0
0
0
0
0
0
0
45
0
0
1
25
5
0
20
31
112
30
30
27
30
76
While the number of imbalances decreased…
Reduction in number of imbalances after start of penalization mechanism:
18
16
17
14
14
12
11
10
11
12
9
8
8
7
6
8
5
4
3*
3
2
0
Dez 12
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
*until 7.11.2015
11th November 2015 / User Group Meeting BGM 2015
…the imbalances themselves increased!
Since July 2015, Swissgrid faced several high imbalances
Date
Imbalance Peak
03.07.2015
50 MW
28.07.2015
147 MW
25.08.2015
439 MW
25.10.2015
140 MW
01.11.2015
415 MW
11th November 2015 / User Group Meeting BGM 2015
Open positions which cannot be closed at physical
delivery endanger the network security
~
Severe endangerment of the
network security by
» an important imbalance of
a single balance group, or
» a number of middle-sized
imbalances of balance
groups.
Financial Risk: Large
imbalances lead to a
significant financial claim.
11th November 2015 / User Group Meeting BGM 2015
Control reserves
(800-900 MW) are limited
and are not a disposable
value for balance groups.
» PCP ± 71 MW
» SCP ~ ±400 MW
» TCP ~ +450 MW
-300 MW

A severe violation of the
network security due to an
imbalance from open
positions would put into
question our current market
framework.
Today: No instrument to
target open positions in the
intraday process
» Balance groups are
obliged to close their
positions latest at COT
Post Scheduling
Adjustment.
» Daily experience shows
that the closing of
positions in the Post
Scheduling Process is
difficult.
§
The market is yours!
» It is the responsibility of
each balance group to
operate the business in a
safe manner.
» Swissgrid operates the
market, but cannot take on
responsibility for balance
groups.
» Market participants carry the
responsibility together for a
well functioning and safe
market place.
Challenges are discussed in close collaboration with
market participants
2015
2014
2013/14
2009
Since its
establishment in
2009, Swissgrid
has been in close
collaboration with
market
participants.
Swissgrid started
open discussions
with balance
groups about
challenges faced
by the current
market design.
11th November 2015 / User Group Meeting BGM 2015
Further development
of concepts with the
help of the «Expert
Group BGM» .
Presentation at User
Group Meeting BGM
in November 2014.
Concepts have
been developed
further with the
help of the «Expert
Group BGM».
Presentation at
User Group
Meeting BGM in
November 2015.
Consultation of
Balance Group
Contract.
Swissgrid thanks to the following participants of the
«Expert Group BGM» for their valuable contributions
The « Expert Group BGM » is an open official committee of experts consisting of
balance groups and scheduling system suppliers.
» 4 Meetings were held in 2015
» Members:
Balance Groups:
AET
Alpiq
Axpo
BKW
EWB
EWZ
OMPEX
SBB
Statkraft
Swenex
11th November 2015 / User Group Meeting BGM 2015
System Suppliers:
Enoro
Powel
Soptim
The following measures were discussed and are proposed
to be implemented in 2016
1
Position Limits
Graduated position limits
of open positions in
intraday
Financial penalties
Consumption forecast
Plausibility values from
production and
consumption
11th November 2015 / User Group Meeting BGM 2015
1-BG Model
Postponement of
Post Scheduling
Adjustment by
one working day
Position Limits
COT ID
D
Long
Position
D-2h
Position limits are proposed to be implemented in order to
minimize the risk of imbalances
~
Short
Position
time >
» Minimal impact for market: Open positions are still possible in the intraday.
» Target: Closing of positions latest at COT ID.
» Post Scheduling Adjustment still possible for optimizing balancing energy due to
forecast deviations.
11th November 2015 / User Group Meeting BGM 2015
The Limits set the amount of collaterals to be provided
Limit 1: DA up to D-2h
Limit 2: D-2h up to
COT ID
Limit 3: COT ID and
PS*
[MW]
[MW]
[MW]
(long/short)
(long/short)
(long/short)
10
10
10
100’000
25
10
10
200’000
50
25
10
400’000
100
25
10
550’000
200
50
10
850’000
300
75
10
1’100’000
400
100
10
1’400’000
D = Delivery / date of physical delivery
COT = Cut-off time
Collateral
[EUR]
ID = Intraday
DA = Day-ahead
PS = Post-scheduling
* Schedules of balance groups without metering points consisting of an open position higher
than Limit 3 or the previous schedule can be fully rejected.
11th November 2015 / User Group Meeting BGM 2015
Position Limits illustrated with the intraday timeline
Time
21:46
22:01
22:16
22:31
22:46
23:01
23:16
23:31
23:46
00:01
00:16
L1
L2
L2
L2
L2
L2
L2
L2
L3
L3
L3
L1
L1
L2
L2
L2
L2
L2
L2
L2
L3
L3
L1
L1
L1
L2
L2
L2
L2
L2
L2
L2
L3
L1
L1
L1
L1
L2
L2
L2
L2
L2
L2
L2
L1:
D-2h
L1:DA
DAup
upto
to D-2h
11th November 2015 / User Group Meeting BGM 2015
L1
L1
L1
L1
L1
L2
L2
L2
L2
L2
L2
L1
L1
L1
L1
L1
L1
L2
L2
L2
L2
L2
L1
L1
L1
L1
L1
L1
L1
L2
L2
L2
L2
L1
L1
L1
L1
L1
L1
L1
L1
L2
L2
L2
L2: D-2h up to COT ID
L1
L1
L1
L1
L1
L1
L1
L1
L1
L2
L2
L1
L1
L1
L1
L1
L1
L1
L1
L1
L1
L2
L1
L1
L1
L1
L1
L1
L1
L1
L1
L1
L1
02:45
02:30
02:15
02:00
01:45
01:30
01:15
01:00
00:45
00:30
00:15
00:00
Trading Intervalls
L1
L1
L1
L1
L1
L1
L1
L1
L1
L1
L1
L3: COT ID and PS
Some balance groups will be affected by position limits
Limit 1 / Limit 2 / Limit 3
Number of balance groups
Collateral
[MW] (long/short)
[EUR]
10 / 10 / 10
92
100’000
25 / 10 / 10
1
200’000
50 / 25 / 10
5
400’000
100 / 25 / 10
3
550’000
200 / 50 / 10
0
850’000
300 / 75 / 10
1
1’100’000
400 / 100 / 10
7
1’400’000
Total: 109
0
20
40
60
80
100
120
» Analysis for all 109 balance groups without metering points (Trading-BG) is based
on the month of August 2015 and Limit 1.
» Open positions of the 19 balance groups with metering points are not known.
11th November 2015 / User Group Meeting BGM 2015
A revised penalization mechanism is proposed to replace
the existing mechanism
Penalty
𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance 𝑀𝑀𝑀𝑀𝑀 = 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 − 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 3
𝐵𝐵𝐵𝐵𝐵𝐵 = 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 [𝐸𝐸𝐸𝐸𝐸𝐸/𝑀𝑀𝑀𝑀𝑀]
Retention Time
Warning
6 Month
1 𝑥𝑥 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance ∗ 𝐵𝐵𝐵𝐵𝑃𝑃
6 Month
2 𝑥𝑥 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance ∗ 𝐵𝐵𝐵𝐵𝑃𝑃
5 𝑥𝑥 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance ∗ 𝐵𝐵𝐵𝐵𝑃𝑃
3 Month
1 Month
» The observation period consists of one scheduling day
» Penalties are based on ¼ h values
11th November 2015 / User Group Meeting BGM 2015
Penalties from exceeding Limit 3 can be waived
List of exceptions:
» Intervention in power plant deployment by Swissgrid (critical grid situation)
» Redispatch measures
» Delegation of activated tertiary control reserve
» Outage of the schedule systems on the part of the BG
» Production failure / power plant outage
» Outdated plausibility values leading to a penalty
» Deviation of control pooling delivery to control energy request
11th November 2015 / User Group Meeting BGM 2015
The open position is based on the received TPS Schedule
Document
Basic procedures:
» The open position is calculated from the received time series in the TPS Schedule
Document.
» In case a time series is rejected, the last accepted version will be used to
calculate the open position.
» In case a new time series is rejected, the time series counts as 0.
» Market rules, copy from counter-schedule or manual intervention always precede.
Open Position
Nominated TPS Schedule
Matched Status
» No dependency on schedule from
counterparty (until COT)
» Intention of market participant
» Dependency on schedule from
counterparty
Basis for position validation
11th November 2015 / User Group Meeting BGM 2015
More data is required for the validation of the position of
balance groups with metering points
Required data and information in order to validate open position:
BG without metering points
«Trading-BG»
BG with metering points
Time series from TPS Schedule
Document
Time series from TPS Schedule
Document
Consumption forecast (CONS)
Static plausibility values from production
and consumption:
𝑃𝑃𝑃𝑃𝑃𝑃𝐷𝐷𝑀𝑀𝑀𝑀𝑀𝑀
𝑃𝑃𝑃𝑃𝑃𝑃𝐷𝐷𝑀𝑀𝑀𝑀𝑀𝑀
𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀
𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀
» Note: Production forecast is not needed
» Algorithm for validation of the open position can be found in the consultation
document
11th November 2015 / User Group Meeting BGM 2015
The definition of the consumption forecasts is adapted to
the Swiss supply market
Definition of CONS:
» CONS shall be provided according «LPA/BG»
» Pump capacity, redispatch and control energy not to be included.
» Deviation of specified definition by up to a maximum of 20% of the daily
consumption volume in justified exceptional cases.
» Example: existing net forecast from clients of a balance group.
Basic guidelines:
» First nomination before 14:30 in the day-ahead process in the TPS Schedule
Document.
» Updates in the intraday process.
» No updates in the post scheduling adjustment.
» The CONS time series is checked against the 𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀 and 𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀 values.
LPA: load profile aggregate (DE: Lastgangsumme / LGS)
11th November 2015 / User Group Meeting BGM 2015
Plausibility values take into consideration power plant and
pump shares
IPT and LPA
of past 12
month
𝑷𝑷𝑷𝑷𝑷𝑷𝑫𝑫𝑴𝑴𝑴𝑴𝑴𝑴
𝑷𝑷𝑷𝑷𝑷𝑷𝑫𝑫𝑴𝑴𝑴𝑴𝑴𝑴
𝑪𝑪𝑪𝑪𝑪𝑪𝑺𝑺𝑴𝑴𝑴𝑴𝑴𝑴
𝑪𝑪𝑪𝑪𝑪𝑪𝑺𝑺𝑴𝑴𝑴𝑴𝑴𝑴
Pump and
Powerplant
shares
Own pump
capacity
IPT: input profile total (DE: Einspeisegangsumme / EGS)
LPA: load profile aggregate (DE: Lastgangsumme / LGS)
» Values will be calculated by Swissgrid and confirmed by the BG before becoming
valid
» Plausibility values will be reviewed periodically (planned: yearly).
» Formula for the calculation of plausibility values can be found in the consultation
document
11th November 2015 / User Group Meeting BGM 2015
1
1-BG Model
The 1-BG Model is ready for implementation
Main features:
» Elimination of BG-Types
» Standard BG
» Control BG
» CH-15 BG
» Schedules of Type CH-15 BG will be nominated with BusinessType A02, same as
«normal trade».
» Schedules of Control-BG will be nominated according to the product.
» Lead Times for internal schedules will be reduced to 15 Min.
Overview intraday lead times for schedule nomination
Internal
15 Minutes
External
45 Minutes
External ID-Balancing (FR)
15 Minutes
» Contract based nominations will be implemented in 2017.
11th November 2015 / User Group Meeting BGM 2015
The following coding for schedules is planned to be
implemented
Type of time series
BusinessType
CapacityContractType
Internal
Internal trade
Consumption forecast (CONS)
Secondary control
Tertiary control
Control pooling
Energy deficit
National redispatch
A02
A04
A12
A10
A14
A15
A85
-
External
External trade (DE, FR and AT)
A06
External trade (FR: balancing market) A03
External Trade (IT)
A03
11th November 2015 / User Group Meeting BGM 2015
A11
A05
For further simplification the process type «A17 / Schedule
Day» will be used
Simplification of ProcessType:
» ProcessType A17 (Schedule Day) will be used.
» Process will be determined according to the incoming time stamp.
Today:
A01 (Day-Ahead)
A02 (Intraday)
A13 (Post scheduling
adjustment)
Example:
Today:
From Q2/Q3 2016:
A17 (Schedule Day)
TPS Schedule Document arrived at 15:31 with ProcessType A01 is
rejected.
Tomorrow: TPS Schedule Document arrived at 15:31 with ProcessType A17 will be
processed in the intraday process.
11th November 2015 / User Group Meeting BGM 2015
Postponement of
Post Scheduling
Adjustment by
one working day
More time for Post-Scheduling Adjustment!
The Post Scheduling adjustment process will be extended to D+2 working
days 4 p.m.:
» extended period for the provision of data for the post-scheduling adjustment by
BGM
» workload is reduced on Monday
Weekday
Days to be accounted for
Monday
Thursday
Tuesday
Friday, Saturday, Sunday
Wednesday
Monday
Thursday
Tuesday
Friday
Wednesday
Saturday
--
Sunday
--
11th November 2015 / User Group Meeting BGM 2015
Publication: «Assessing distorted trading incentives of
balance responsible parties based on the example of the
Swiss power system»
» A paper has been published in the journal
«Energy Policy», analysing the arbitrage
potential of the former Swiss control
energy pricing mechanism (until Nov 2012)
against intraday prices.
» The article can be downloaded from the
link free of charge until the end of
November 2015:
http://authors.elsevier.com/a/1RrCd14YGgMDzZ
Reference:
Marc Scherer, Oliver Haubensak, Thorsten Staake,
Assessing distorted trading incentives of balance
responsible parties based on the example of the Swiss
power system, Energy Policy, Volume 86, November 2015,
Pages 792-801, ISSN 0301-421
11th November 2015 / User Group Meeting BGM 2015
The following next steps and time line are planned
Consultation
Feedback Signing Contracts
Nov 2015 – Dec 2015 Feb 2016
from Mar 2016
Positions Limits
Q2/Q3 2016
1-BG Model
Q2/Q3 2016
PSA D+2 WD
Q2/Q3 2016
Financial Penalties
Earliest Go-Live
Position Limits + 2 Month
Contract Based
Nomination
2017
Q4 2015
Q1 2016
11th November 2015 / User Group Meeting BGM 2015
Q2 2016
Q3 2016
Q4 2016
2017
New Balancing Contract and
Consultation
Theodoros Sevdas, Specialist Market Products and Analysis
Mövenpick-Hotel Zurich Airport, 11th November 2015
Swissgrid integrated the new concepts into the existing
contractual framework
KYC
1-BG Model
Financial
Guarantees
11th November 2015 / User Group Meeting BGM 2015
Position Limits
Suspension
Swissgrid can react quickly in cases of contract breach
Breaches of the contract can lead to risks for the security of
supply or to a financial risk for Swissgrid or other market
players.
Swissgrid has to react quickly to safeguard the functioning of
the system.
A balance group that violates essential contractual obligations may be excluded
in the short term from all scheduling activities.
Swissgrid will always first try to find solutions together with the balance group.
A suspension can be revoked as soon as the balance group can prove that it is
able to fulfil its contractual obligations.
11th November 2015 / User Group Meeting BGM 2015
The existing contractual framework and document
structure is maintained
Balace Group
Contract
Main legal provisions and contractual obligations of
the parties
General Balance
Group Regulations
Detailed description of registration and
contractual obligations for all aspects of balance
group management
Technical Balance
Group Regulations
Technical details regarding all related processes,
timings and formats
Registration Form
Contact details, production and load data, ….
11th November 2015 / User Group Meeting BGM 2015
Existing contracts are modified according to new concepts
1-BG Model
Position Limits
Financial
Securities
KYC
Suspension
• All provisions regarding the 3-BG Model have been
removed
• Art. 11 of Balance Group Contract
• Art. 2.2 of General Regulations provide detailed
information
• Collateral is precondition for registration
• Detailed information in Art. 2.4 of General Regulations
• Art. 3 of Balance Group Contract
• Art. 1 of General Regulations provide detailed
information
• Art. 14 of Balance Group Contract describes the
detailed conditions
11th November 2015 / User Group Meeting BGM 2015
The following next steps and time line is planned
Consultation
Nov 2015 – Dec 2015
Feedback
Feb 2016
Signing Contracts
from Mar 2016
Positions Limits
1-BG Model
KYC
Financial Securities
Suspension
Q2/Q3 2016
Q4 2015
Q1 2016
11th November 2015 / User Group Meeting BGM 2015
Q2 2016
Q3 2016
The consultation of the amended contractual framework
will start tomorrow
» Consultation will last four weeks from 12th November 2015 until 10th December
2015
» All market parties are welcome to contribute their views
» Consultation will be performed on a dedicated Swissgrid platform:
http://consultation.swissgrid.ch
» Login data have been distributed to market participants
» Login sent by email on 10th November 2015
» PIN sent by postal mail 10th November 2015
» A manual for using the consultation platform is provided on the website
11th November 2015 / User Group Meeting BGM 2015
Using the consultation platform
**********
11th November 2015 / User Group Meeting BGM 2015
Using the consultation platform
11th November 2015 / User Group Meeting BGM 2015
Using the consultation platform
11th November 2015 / User Group Meeting BGM 2015
Using the consultation platform
11th November 2015 / User Group Meeting BGM 2015
Using the consultation platform
11th November 2015 / User Group Meeting BGM 2015
Do not hesitate to contact us in case of questions
Questions regarding the access to the consultation:
[email protected]
Tel. +41 848 016 016
Questions regarding the consultation documents?
[email protected]
11th November 2015 / User Group Meeting BGM 2015
11th November 2015 / User Group Meeting BGM 2015
Further development of market
design for Switzerland
Dr. Christian Kunze, Senior Specialist Market Design
Mövenpick-Hotel Zurich Airport, 11th November 2015
Tomorrow’s electricity system will be fundamentally different
»
»
»
»
Distributed generation
More volatility
Lower marginal prices
More smart technologies
Future challenges require further development of the
market design
» Transformation process from a centralized towards a decentralized generation
system continues – how to integrate intermittent generation and the demand-side
into the market design?
» The European target model for electricity markets is nearly finished – which
additional elements requires a future-proof market design?
» National capacity market models in Europe are in place – how to harmonize them
with the further development of the Internal Energy Market?
11th November 2015 / User Group Meeting BGM 2015
Proposal: combine innovative, European concepts!
» Market design is to be adapted, while keeping the present advantages:
 Efficient EOM, European integration, …
» Build on innovative but existing concepts from within Europe and combine these to
a consistent, market-oriented concept:
 Create a strong real-time price signal, continuous across timeframes
 Create a true European approach for adequacy
 Enhance XB-optimization across all timeframes
11th November 2015 / User Group Meeting BGM 2015
Evolution process of the Flexibility Market Concept
Scoping Study
«Development of
Flexibility Markets
in Switzerland»
(Swisselectric/
Swissgrid/Pöyry)
09/14
12/14
Publication
«Markets for
Adequacy and
Flexibility»
(Swissgrid)
03/15
06/15
09/15
«Consultation
Document on
Future Market
Design»
(Swissgrid)
12/15
Numerous national and international presentations, discussions and workshops on
innovative market design with very positive feedback.
«Feasibility Study for
the Cross-Border
Trading of Swiss
Flexibility»
(Swisselectric/
Swissgrid/Pöyry)
11th November 2015 / User Group Meeting BGM 2015
«Multi-Client Study
End Customer
Flexibility»
(EnAdvice et al.; in
progress)
Publication
«Machbarkeitsstudie
für die grenzüberschreitende
Vermarktung von
Flexibilität»
(Swisselectric &
Swissgrid)
Creation of a strong real-time price signal
11th November 2015 / User Group Meeting BGM 2015
Creation of a strong real-time price signal, continuous
across timeframes (6/6)
= new elements
4
Reliability Options
(national vs. x-border)
Auction
1
Market Integration
of RES
Trading
Forward Prices
Day-Ahead
Prices
New Balancing
Energy prices
3
Integrated
TSO Market
2
3
5
Trading
Intraday
Prices
Demand-side
Response
Real-time
Prices
t
Delivery
» From a centralized generation system to a decentralized prosumer system
5
» Further development of pooling concept for flexible loads by supplying
customer flexibility on the balancing energy and wholesale market
11th November 2015 / User Group Meeting BGM 2015
A European and market-based approach for adequacy
11th November 2015 / User Group Meeting BGM 2015
Approaches of European countries to security of supply are
drifting apart
Europe is currently characterized by a
patchwork of national CRMs,
Hedging responsibility is placed on
different stakeholders.
Source: IHS presentation at Dauphine
11th November 2015 / User Group Meeting BGM 2015
Strengthen role of market players in adequacy
» In a liberalised market, market players have an implicit responsibility for their
balance groups: They are «Balancing Responsible Parties» (BRPs).
» In the Swiss balancing group contract, the BRPs are responsible for keeping their
own position balanced at all times. Many other countries have alike solutions.
» From our perspective, this balancing responsibility includes prognosis and, if
needed, forward hedging of sufficient resources for their end-customer supply.
We propose to further develop the market incentive in this respect
− Strengthen the price signal, as seen before
− Regional approach to security of supply
− Participation of foreign providers in national capacity mechanisms
11th November 2015 / User Group Meeting BGM 2015
Regional approach to Security of Supply
Swissgrid proposes main principles:
» Adequacy should be tradeable across
borders:
˗
participation of foreign providers in
national CRMs
˗
increasing harmonization of CRM
designs
» Adequacy should be assessed regionally,
or better, on European level
11th November 2015 / User Group Meeting BGM 2015
Example: Regional approach reveals efficiency
Swissgrid is actively working on regionalization of security of supply, with
neighbouring and CWE TSOs.
LOLE estimate
Exemplary analysis of «Loss of Load Events» in CWE+
[h]
3500
3000
P95
2500
Average
2000
1500
1000
500
AT
BE
11th November 2015 / User Group Meeting BGM 2015
CH
DE
FR
Regional
National
Regional
National
Regional
National
Regional
National
Regional
National
National
Regional
0
NL
Source: Swissgrid based on «PLEF
Generation Adequacy Assessment 2015»
Participation of foreign providers in national CRMs
Model 1
Model 2
Model 3
Model 4
Counterparty
TSO
TSO
Generators
Generators
Subcontracts
None
Production
capacity
(generators
Transmission
capacity (TSO)
None
» Exclusive remuneration of only generation (model 4) or only
transmission (model 2) distorts investment
» Foreign capacity mechanisms should thus remunerate both generation
and transmission (Models 2&3)
11th November 2015 / User Group Meeting BGM 2015
Optimization of cross-border trading
11th November 2015 / User Group Meeting BGM 2015
Optimization of cross-border trading
Swissgrid is an observer in the CWE Flow-Based project and plays an active role in
the European Cross-Border Intraday (XBID) project.
Swissgrid also developed the technical readiness for the participation in various
European market coupling initiatives.
Political circumstances create doubts whether Switzerland will soon be able to
participate in the aforementioned initiatives and to increase European social welfare
in the near future.
 What else can we do in order to increase the trans-national electricity system
efficiency with neighbouring countries?
11th November 2015 / User Group Meeting BGM 2015
Optimization of cross-border trading
Swissgrid proposes the following measures:
1. Convergence of National and Cross-Border Gate Closure Times
2. 15-Minute Intraday Call Auction Between Germany and Switzerland
3. Introduction of Intraday Border Auctions
11th November 2015 / User Group Meeting BGM 2015
Convergence of national and cross-border
gate closure times
Flexible generators (or the demand-side) have problems to support system
balancing on the intraday market in neighbouring countries:
» Relatively long cross-border nomination lead times
» Missing harmonization of national intraday products (e.g. granularity)
Social welfare generation based on intraday cross-border transactions is limited.
Swissgrid aims to reduce the lead-time for the nomination of cross-border intraday
trading transactions and to support the trading of products with a resolution of 15
minutes.
11th November 2015 / User Group Meeting BGM 2015
Convergence of national and cross-border
gate closure times
Prices and volatility usually strongly increases towards gate closure of intraday
markets; this is an indication of system balancing challenges.
Graph: Price Formation Hourly Contracts Peak Summer 2014
11th November 2015 / User Group Meeting BGM 2015
Source: Own graph based on data from EPEX Spot
Convergence of national and cross-border
gate closure times
Cross-border vs. country-internal nomination lead-times.
11th November 2015 / User Group Meeting BGM 2015
Source: EPEX SPOT and ECC successfully reduce lead time on all intraday
markets, Press Release, Paris / Leipzig / Bern / Vienna, 16 July 2015
Convergence of national and cross-border
gate closure times
Implicit
Schedule
Nomination by
ECC*
XB Schedule Nomination by ECC
ID Continuous
EPEX
XB Schedule
Nomination by
Market Parties
Explicit,
OTC
Germany
Current national and cross-border gate closure times
Internal Schedule
Nomination by
Market Parties
Implicit
XB & internal ECC Schedule Nomination
ID Continuous
EPEX
Internal Schedule
Nomination by MP
Explicit,
OTC
Switzerland
ID Capacity Allocation
by DBAG
XB Schedule
Nomination by MP
ID Capacity Allocation
by DBAG
75’
60’
45’
30’
15’
0’
Delivery
11th November 2015 / User Group Meeting BGM 2015
Swiss market cannot participate in liquid phases of
German market
Trading volume for delivery hour 15 in Sept. 2015
[MW]
120000
DE intraday: D-1@15:00 to -30min
CH intraday: D-1@15:00 to -60min
100000
Cross-Border Trade: D-1@18:00 to -60min
80000
60000
40000
20000
DE, Intraday (auction)
11th November 2015 / User Group Meeting BGM 2015
DE, Intraday (continous)
CH, Intraday
Day@23
Day@22
Day@21
Day@20
Day@19
Day@18
Day@17
Day@16
Day@15
Day@14
Day@13
Day@12
Day@11
Day@10
Day@09
Day@08
Day@07
Day@06
Day@05
Day@04
Day@03
Day@02
Day@01
Day@00
D-1@23
D-1@22
D-1@21
D-1@20
D-1@19
D-1@18
D-1@17
D-1@16
D-1@15
0
Trading with France limited to cross-border time-window
and hourly contracts
Trading volume for delivery hour 15 in Sept. 2015
[MW]
50000
FR intraday: D-1@15:00 to -30min
45000
CH intraday: D-1@15:00 to -60min
40000
Cross-Border: D-1@21:00 to -60min
35000
30000
25000
20000
15000
10000
5000
CH, Intraday
11th November 2015 / User Group Meeting BGM 2015
FR, Intraday
Day@23
Day@22
Day@21
Day@20
Day@19
Day@18
Day@17
Day@16
Day@15
Day@14
Day@13
Day@12
Day@11
Day@10
Day@09
Day@08
Day@07
Day@06
Day@05
Day@04
Day@03
Day@02
Day@01
Day@00
D-1@23
D-1@22
D-1@21
D-1@20
D-1@19
D-1@18
D-1@17
D-1@16
D-1@15
0
Evaluation of a 15-Minute intraday call auction
A 15-Minute Intraday Call Auction became introduced for the German market in
December 2014; it provides a simultaneous auction for the 96 quarters of the
following delivery day at 3pm of the present day.
4000000
450000
3500000
400000
350000
3000000
300000
2500000
250000
2000000
200000
1500000
150000
1000000
100000
500000
50000
0
0
Dec
14
Jan
15
Feb Mar
15
15
Intraday DE AT Total
Apr May Jun Jul 15 Aug Sep
15
15
15
15
15
15-min. Call Auction DE
Oct
15
Jun 15
Jul 15
Aug 15
Oct 15
15-min. Continuous Trading DE (MWh)
15-min. Call Auction DE (MWh)
Intraday Trading Volumes of EPEX Spot Dec 14 – Oct 15; Data Source: EPEX Spot Monthly Newsletters
11th November 2015 / User Group Meeting BGM 2015
Sep 15
Evaluation of a 15-Minute intraday call auction
» Due to the auction, the market benefits from a concentration of liquidity at
the beginning of the intraday process and a transparent reference price for
the 15-minute contracts of the continuous trading process could be given.
» Due to the aforementioned advantages, Swissgrid evaluates whether the
implementation of an Intraday call auction might also provide additional
value for the Swiss market.
11th November 2015 / User Group Meeting BGM 2015
Introduction of intraday border auctions
Intraday capacity is currently allocated on a «first come first served» basis
» «First come first served» is an administrative capacity allocation method
» Capacity rights are allocated free of charge according to the temporal order
of capacity requests
» There is an obligation to use the allocated capacity
Source: Smith, William H. (2014): Black Sea
11th November 2015 / User Group Meeting BGM 2015
Regulatory Initiative: Cross-Border principles and
guidelines, p. 17
Evaluation of intraday border auctions
«First come first served»
» Economic deficits
» Technical deficits
» Operational deficits
11th November 2015 / User Group Meeting BGM 2015
Evaluation of intraday border auctions
Proposals
• Implementation of an implicit intraday opening auction (in line with
guideline on capacity allocation and congestion management),
• Evaluation of the implementation of closing auctions,
• Evaluation of further, border-specific adjustment and optimization of
existing processes.
11th November 2015 / User Group Meeting BGM 2015
Next Steps: timeline flexibility market consultation
November 2015
December 2015
January 2016
February 2016
March 2016
April 2016
Announcement of the informal consultation
Formal opening of the consultation process
End of feedback period for stakeholders
Feedback evaluated and documented by Swissgrid
Optional stakeholder meeting
Finalisation of the document
Start of implementation measures
11th November 2015 / User Group Meeting BGM 2015
Improvement of Price
Signals
price signals
Christian
Kunze,
Dr.
Christian
Kunze, Senior Specialist Market Design, Swissgrid
Mövenpick AirportZurich
Hotel Airport,
Zurich, 11th
November 2015
2015
Mövenpick-Hotel
11th November
Current price signals are insufficient
Current prices are:
» Discontinuous: insufficient connection between day ahead and intraday
markets
» Intransparent: imbalance prices are published 2.5 months after delivery
» Biased: imbalance prices do not reflect true cost/value of imbalances
→ As a result, there are insufficient/distorted investment incentives
11th November 2015 / User Group Meeting BGM 2015
Swissgrid proposes five measures to improve price signals
4
Reliability Options
(national vs. x-border)
Auction
1
Market Integration
of RES
Trading
Forward Prices
Day-Ahead
Prices
= new elements
11th November 2015 / User Group Meeting BGM 2015
New Balancing
Energy prices
3
Integrated
TSO Market
2
3
5
Trading
Intraday
Prices
= discussed elsewhere
Demand-side
Response
Real-time
Prices
t
Delivery
What are your views on these measures?
•
Do the stakeholder support the Swissgrid proposal to implement a (near) realtime imbalance price?
•
Do the stakeholders consider the proposed hedging products to be appropriate
for the hedging of potentially volatile imbalance prices? Are there other
proposals?
•
Do the stakeholders see a necessity to formally integrate the role of an
independent aggregator that bundles and markets flexible resources into the
market design? Do stakeholders expect that this new role would increase social
welfare and support a beneficial demand-side response utilization in
Switzerland?
In general:
Are these the right measures? What other measures would be needed?
11th November 2015 / User Group Meeting BGM 2015
The
Responsibility
of Balance
Groups
Responsibility
of balance
groups
for
security
of supply
For
Security
of Supply
Arthur Janssen, Head of Market Development & Design
Mövenpick AirportZurich
Hotel Airport,
Zurich, 11th
November 2015
2015
Mövenpick-Hotel
11th November
Approaches of European countries to security of supply are
drifting apart
Europe is currently characterized by a
patchwork of national CRMs,
Hedging responsibility is placed on
different stakeholders.
Source: IHS presentation at Dauphine
11th November 2015 / User Group Meeting BGM 2015
Strengthen role of market players in adequacy
» In a liberalised market, market players have an implicit responsibility for their
balance groups: They are «Balancing Responsible Parties» (BRPs).
» In the Swiss balancing group contract, the BRPs are responsible for keeping their
own position balanced at all times. Many other countries have alike solutions.
» From our perspective, this balancing responsibility includes prognosis and, if
needed, forward hedging of sufficient resources for their end-customer supply.
We propose to further develop the market incentive in this respect
− Strengthen the price signal, as seen before
− Regional approach to security of supply
− Participation of foreign providers in national capacity mechanisms
11th November 2015 / User Group Meeting BGM 2015
Regional approach to Security of Supply
Swissgrid proposes main principles:
» Adequacy should be tradeable across
borders:
˗
participation of foreign providers in
national CRMs
˗
increasing harmonization of CRM
designs
» Adequacy should be assessed regionally,
or better, on European level
11th November 2015 / User Group Meeting BGM 2015
Unclear whether Swiss Investments to secure SoS will be
remunerated in present market design
» Will Swiss contribution to SoS in foreign countries be remunerated?
» Are there sufficient incentives to investment in Switzerland when needed?
11th November 2015 / User Group Meeting BGM 2015
What are your views on these measures?
» Do the stakeholders agree with the assumption that adequacy responsibility of
balancing groups in combination with a strengthened price signal will increase
market efficiency?
» Do the stakeholders agree that balancing responsibility should include the
prognosis and, if needed, forward hedging of sufficient resources for their endcustomer supply?
11th November 2015 / User Group Meeting BGM 2015
Improvement of Cross-border
Trading
cross-border trading
Operations
Urs Ziegler, Head of Market Services,
Swissgrid
th
Mövenpick AirportZurich
Hotel Airport,
Zurich, 11th
November 2015
2015
Mövenpick-Hotel
11 November
Switzerland is technically ready to join market coupling
Swissgrid is also participating in the XBID project, but unsure whether it will be
allowed to join the go-live.
11th November 2015 / User Group Meeting BGM 2015
During some of the most liquid periods in the German
market, there is currently no cross-border trading
Trading volume for delivery hour 15 in Sept. 2015
[MW]
120000
DE intraday: D-1@15:00 to -30min
CH intraday: D-1@15:00 to -60min
100000
Cross-Border Trade: D-1@18:00 to -60min
80000
60000
40000
20000
DE, Intraday (auction)
11th November 2015 / User Group Meeting BGM 2015
DE, Intraday (continous)
CH, Intraday
Day@23
Day@22
Day@21
Day@20
Day@19
Day@18
Day@17
Day@16
Day@15
Day@14
Day@13
Day@12
Day@11
Day@10
Day@09
Day@08
Day@07
Day@06
Day@05
Day@04
Day@03
Day@02
Day@01
Day@00
D-1@23
D-1@22
D-1@21
D-1@20
D-1@19
D-1@18
D-1@17
D-1@16
D-1@15
0
How can cross-border trading be improved apart from
market coupling?
» Market opening auction for transmission rights
» Convergence of cross-border trading times with national gate closures
» Evaluation of joint 15min auction with Germany
→ Do you agree with these proposals?
→ What other measures should be considered?
11th November 2015 / User Group Meeting BGM 2015
Nomination and Schedule
Management Operations & Customer
Satisfaction
Urs Ziegler, Head of Market Services
Benito Barberio, Nicolas Schledermann, Marc Rüede, Operators Capacity Allocation&Scheduling
Zurich, 11th November
Mövenpick-Hotel
Zurich2015
Airport, 11th November 2015
Capacity Allocation & Scheduling – the Team
Urs Ziegler
Tobias Schwarz
Jürgen Ganter
Marc Hugelshofer
Nicolas Schledermann
Marc Rüede
Thomas Eckert
Urs Heller
Christoph Rüfenacht
Benito Barberio
11th November 2015 / User Group Meeting BGM 2015
Our Tasks (1/2)
Preventive Congestion Management
» Front Office:
» Coordination of yearly-, monthly- and daily auctioned capacity
direction CH-IT
» Reduction of already allocated capacity in case of a NTC
reduction direction CH-IT
» Support of market participants
» Coordination and determination of monthly capacity products on all Swiss borders
11th November 2015 / User Group Meeting BGM 2015
Our Tasks (2/2)
Scheduling
» Front Office:
» Day-Ahead Scheduling for CH, neighbouring countries and the UCTE South
» Day-After Scheduling for CH (PostScheduling Adjustments)
» Counterscheduling of the LongTerm Contracts on the french Border
» Operational execution of the Balance Group Management process
» Periodic training of staff, also for Intraday Dispatcher
» Master Data Management in our Scheduling System
» Coordination of operational scheduling issues
11th November 2015 / User Group Meeting BGM 2015
Contact address & office hours
Auction Office
Day-Ahead /
Post –Scheduling
IntraDay-Scheduling
Phone +41 58 580 27 70
Fax
+41 58 580 27 27
[email protected]
Phone +41 58 580 27 01
Fax
+41 58 580 27 27
[email protected]
Phone +41 58 580 29 11
Fax
+41 58 580 29 10
Fax
+41 58 580 29 20
[email protected]
Monday to Friday
8 - 12 a.m., 1.30 - 5 p.m. CET
Monday to Friday
8 - 12 a.m., 1.30 - 5 p.m. CET
Monday to Sunday, 24 hours a day
(365 days a year)
Saturday and Sunday
8 - 12 a.m., 1.30 - 4.30 p.m. CET
Saturday and Sunday
8 - 12 a.m., 1.30 - 4.30 p.m. CET
11th November 2015 / User Group Meeting BGM 2015
Known issues regarding the new scheduling system (1/2)
» Message subjects and address:
The subject of messages distributed by email was changed. This created
problems for some market participants.
For ACKs → PSMS: *Message ID*
For CNFs/ANOs → PSMS: YYYYMMDD_BGXY_S_CNF
For ANOs → PSMS: YYYYMMDD_BGXY_S_ANO
The address is displayed differently. e.g.: PSMS [[email protected]]
» Technical BG provisions are applied more strictly:
The new system applies the technical market rules more strictly, i.e. after 14:30
once coordinated schedule time series can no longer be changed in the dayahead process.
Business Type A03 for CH-IT time series, along with Capacity Contract Type (i.e.
A05) and Capacity Agreement Identification
11th November 2015 / User Group Meeting BGM 2015
Known issues regarding the new scheduling system (2/2)
» Communication
We encountered some problems in the communication channels (i.e. erroneous
email addresses, FTP problems).
» Quantity format of system replies (CNF, ANO) has changed – always with
decimal point
Old format: <Qty v="105.394"/> or <Qty v=“90"/>
New format: <Qty v="105.394"/> or <Qty v=“90.000"/>
» At the moment replies are sent to only one email address
We are working on a way to implement two email addresses. We will inform you
when it is possible.
» The chosen migration date was not optimal for all the market participants
11th November 2015 / User Group Meeting BGM 2015
Survey: Customer Satisfaction
11th November 2015 / User Group Meeting BGM 2015
Questions
» How satisfied are you with our availability by phone?
» How do you experience our response time to e-mail requests?
» How do you rate our expertise when answering to your phone or e-mail requests?
» Do you think that our nomination system on the CH-IT border (SNS) is userfriendly?
» Is there enough information for scheduling and congestion management available
on our website?
11th November 2015 / User Group Meeting BGM 2015

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