Working Group Balancing

5 October 2016

Venue: Brussels, Elia Emperor, Keizerslaan 20, room 0.20, 1000 Brussels, Belgium

Date: Wednesday 5 October 2016

Time: 13:00 – 17:00 h

- Approval of the Minutes of the meeting on 15/06/2016

- Pilot BidLadder: Feedback consultation Public Design Note

- R3 2017:

• Prequalification process

• State of affairs

- Pilot project R2 non-CIPU

- R1 update

- Website Working Group Balancing

- Varia

Agenda

2

Approval of the Minutes of the meeting on 15/06/2016

R3 2017 – Special topics: Common settlement CIPU vs non-CIPU

The representative of EFET repeats that the scope of the secondary market is too limited, only CIPU and only in case of

outage. [MoM update]

Will be added.

R3 2017 – General design wrap-up

EFET states that there is no level playing field between CIPU and non-CIPU as [MoM update] there seems to be more

flexibility for a pool than for a CIPU unit, while in the CIPU system there are clear and high penalties.

Will be added.

The online report will be updated accordingly.

Feedback FEBEG – Requested additions to the MoM

4

Pilot BidLadder:

Feedback consultation Public Design Note

Input received from

Febeg Teamwise VREG

Febeliec Nextkraftwerke (confidential) DSOs

BDRA (Aggregators) RWE/Essent/Powerhouse Mipa frost

Main messages : Overall positive appreciation Bidladder pilot

Key messages in consultation on the Public Design Note

6

Combo R3/BL preferred

DSO participation wanted

Congestion mngt

Asymmetric imbalance

adjustment

Legal constraint at regional

level for ToE

Clarity on legal framework

needed

Market model (A3, A2, B2, opt-

out) Contractual framework

In absence of any amendment to E-Law (and hence no ToE) , ELIA will faciliate access to Bidladder

as of 1/7/2017 for delivery points connected to TSO-grid (incl. PVN/RTL) where

BSP = BRPbsp = BRPsource = Supplier

“opt out” = Bilateral agreement exists between BSP and Supplier (and their respective BRPs)

Feedback Consultation Public Design Note

7

Scope pilot project is in line with retained options (A2/A3) in Final Study CREG 1459 on DSM.

Extension to model with correction of metering data (B2) subject to future evaluation.

ELIA will develop and implement asap the combination of Bidladder and R3non-CIPU within the

scope of current pilot project. ELIA will provide more details on timing by end of December.

Combo SDR and Bidladder not allowed.

Multiple BSPs on a single delivery point is not allowed for reasons of complexity and “traceability”.

However, submetering within Bidladder will be facilitated as from the start.

Combo R3/BL preferred

Only BRPsource is allowed to perform reactive balancing. Therefore BRPbsp is subject to asymmetric

imbalance adjustment. Any delivered flexibility is capped by ELIA

@delivery point level at Rref and

@bid level at Erequested.

Feedback Consultation Public Design Note

8

Asymmetric imbalance

adjustment

Contractual framework In line with Final Study CREG 1459, ELIA will assume role of Flexibility Data Manager and

inform/exchange information on aggregated delivered volumes to BSP and Supplier.

To that extent, ELIA will provide a standard agreement to all Suppliers for organizing this data

exchange.

Congestion mngt In line with current congestion mngt rules and constraints (as applied within CIPU-contract), ELIA

wants to apply an equivalent treatment to CIPU-units (typically an installed power ≥ 25 MW) and

delivery points in Bidladder with a Rref ≥ 25MW. Therefore, ELIA will not activate any bid

containing a delivery point with a Rref ≥ 25MW in a red zone.

However, ELIA will further discuss with market parties the modalities of congestion mngt in a

separate track via WG System Operations and European Market Design (cf. as announcement UG

22/09/2016)

Current scope of Bidladder pilot project excludes DSO-connected delivery points.

ELIA will discuss with DSOs the modalities to facilitate access to DSO-connected delivery points.

Feedback Consultation Public Design Note

9

VREG refers to necessary change to Flemish legislation to accommodate Transfer of Energy at

Plaatselijk Vervoersnet

Ceteris paribus also applicable to other regions.

In line with current price thresholds in CIPU max/min prices for bid prices are

o I bid: 0 ≤ bid price ≤ 4499,99€/MWh

o D bid: unlimited

DSO participation

wanted

Legal constraint at

regional level for ToE

Other

ELIA confirms only the BSP has to be tested at the entry into force of the GFA BidLadder, not for

each pool change nor for determining any Rref. Possible upside via imbalance mechanism but

ELIA gives no guarantees on the moment of testing nor imbalance price level (or direction), but

makes a best effort.

Balancing Service Provider instead of Flexibility Service Provider

2016 mei jul sep nov jan 2017

mrt mei 2017

GO LIVE

30 jun

End Feb'17: Estimated approval Bal. Rules & BRP-contract

End Dec'16: Submission Bal. Rules & BRP-contract

Evaluation status legal framework

31 okt

WG Bal.

5 okt

Final design proposal to CREG

30 sep

End public

consultation design

proposal

8 sep

TF BL

2 sep

Launch public

consultation design

proposal

10 aug

TF BL

5 jul

TF BL

TF BL

25 mei

TF BL

10 mei

Public consultation BRP

contract 7 nov - 2 dec

Public consultation GFA

BidLadder 1 mrt - 31 mrt

Public consultation Elia-

Supplier contract 1 mrt - 31 mrt

Time for contracting 1 mei - 30 jun

Planning

overview

• Indicative timings

• Content subject to legal framework

WG Bal.

7 nov

R3 2017:

State of affairs

Prequalification process

• Harmonize and open our products to move toward our Medium Term model

2 generic products open to all and replacing R3 Prod / R3 DP

R3 2017 Objective

12

CIPU Non CIPU

Standard product R3 Prod (€) -

Specific products

(limited energy) -

R3DP

ICH (€)

CIPU Non CIPU

Standard product R3 Standard (€) R3 Standard

Specific products

(limited energy) R3 Flex (€)

R3 Flex

ICH (€) (1)

2017: product opening

(1) Last year of ICH

R3 2017 Auctions

13

ICH

R3

Prod

R3

DP

2016

R3 Prod

R3 DP

700 MW

70 MW

Yearly auction Monthly auctions

ICH

2017

Max 200 MW

580 MW

Yearly auction Monthly auctions

R3

Std

R3

Flex

Min 250 MW

Max 330 MW

Sourced:

302 MW base

Sourced:

209 MW base

+ 1 MW pk

Sourced:

178 MW base

+ 11 MW lop

+ 10 MW pk

R3 2017 Status

14

March April May June July August Sept. Oct. Nov. Dec.

t

Design freeze

Bal. Rules draft

decision CREG

Bal. Rules final

decision CREG

BAL TFs

Gate Opening

Auctions for

Jan 17

R3 GFAs

ready for sign.

Start R3 GFAs

consultation

TODAY

Consult Bal Rules

Consult

GFAs

• Proposal of Elia based on stakeholders feedback

o BSP to be able to valorize non contracted flexibility from R3 delivery points on Bid Ladder

o Practical modalities will depend on R3 and Bid Ladder product design evolution

• Impact 2017: update of “R3 non CIPU” GFA when Bid Ladder will go live

Combination R3 non CIPU and Free Bids (Bid Ladder)

15

1. Availability control

R3

2. Exclusion in case

of low performance

Update of existing formula to take volume offered on BL

into account

• Reduction of R3 prequalified volume in case of low

perf (already foreseen in R3 2017)

• Exclusion of Bid Ladder in case of missing R3 (in

availability and/or activation control)

• 1 pool

delivering R3 Standard / Flex

consisting of multiple delivery points

Non CIPU pool mgt

16

FSP A

DP 1

DP 2

DP 3

…

Pool attributes:

• R3 Max

• R3 Max Standard

• …

R3 Max

R3 Max Standard

DP attributes:

• EAN

• UM

• R3ref

• …

R3ref definition:

• TSO DPs = declared to Elia

• DSO DPs = PQP (1)

R3ref usage:

• BRP notification

• Remove DP from pool when FSP do no test

(1) PQP = prequalified power by DSOs during NFS

• Removing DPs from pool

Value (“R3 Max”) of the pool is decreased by the sum of “R3ref”

Alternatively, BSP can redo prequal. of whole pool

• Adding DPs to pool without impact on pool “R3 Max”

No test needed

• Adding DPs to pool with impact on pool “R3 Max”

Simulation test on this new sub-pool + Prequalified volume Std and Flex added to the existing ones (“R3 Max”)

Alternatively, BSP can redo prequal

• Change mix R3 Flex – Std of existing pool

Re-test of complete

Non CIPU pool mgt

17 (1) if no agreement with Elia on this matter, prequal to be redone

R3 2017 – Prequalification non CIPU

1st Auction

Key principle: pools already tested successfully for R3 DP are automatically prequalified for R3 Flex non CIPU

3 different cases for non CIPU :

1. New BSP(s) prequalify complete new pool

2. New DP(s) existing BSP prequalify sub-pool(s) (can also requalify complete pool)

3. Existing BSP participating to Std prequalify complete pool

1st auction

19

1st auction New FSP or modified pool

20

Oct Nov. Dec.

t

01/11 16/11 15/12

Auctions

R3 (GCT)

Track

FSP - DSO

Track

FSP - Elia

Deadline

sign. GFA

07/11

Start NFS Deadline

sign. contract

DSO-FSP

End PQ NFS + start sign

DSO-FSP contr.

Prerequisite before test (07/11 TSO or 17/11 DSO):

- Application form certif .suppl.

- Tech data SM1 + CDS

- IT comm. Test

- DP data

- Qual. info R3 Std

DSO-FSP

contract ready

Auctions

R3 (GOT)

01/12

(1) Pay attention to delay for SM order. Delay between order and commissioning (8 weeks).

(2) Only if Prequal. power NFS 2017 <= Prequal. power NFS 2016 and signed contract DSO-FSP for 2016

PQ test new & exist. TSO DPs

PQ test

new DSO DPs

GFA ready

for sign.

PQ test exist. DSO DPs(2)

Deadline

test request

(17/11)

31/11

R3 2017 – Prequalification non CIPU

Recurring process

• Two modifications

1. Update of “R3 Max” (or “R3 Max Standard”) for auctions Elia

2. Update of list of DPs for settlement Elia (TSO DPs) or DSOs (DSO DPs)

• Tests are required in most cases:

• Add / remove DP(s) with impact on “R3 Max” (or “R3 Max Standard”)

• Change mix Std – Flex of existing pool

• New FSP

• DP(s) switching between 2 FSPs

• Tests are not required only when:

• DP(s) subtracted and FSP chose that Rref(s) is / are subtracted from “R3 Max” (no new prequal test)

• DP(s) added without impact on “R3 Max” (or “R3 Max Standard”)

Recurring process

22

Data mgt

Deadline

• Test request

• Pool data 3

Recurring process Update of pool R3 Max (or R3 Max Std)

23

M : notif. and test M + 1 : auction M + 2 : delivery

t

01 15

Test planning &

execution (2)

Auctions

R3 (GOT)

Auctions

R3 (GCT)

15 wds before EoM (1)(2)

(1) EoM = end of month

(2) Elia needs 15 wds to execute test, manage results of tests and update pool. Test requested after deadline, done at best effort

(3) List of DPs + in case of new DSO DP(s) : FSP provides proof of NFS and contract DSO-FSP signed

+- 2 mths between notification and delivery of new vol.

New volume delivery by FSP

(depending on auctions)

Deadline

• Pool data 3

Data

Mgt

If Test

If No Test

New volume delivery by FSP

(depending on auctions)

5 wds before EoM (1)

Deadline

• Pool data 3

Data

Mgt

Test

Special case

no test

5 wds before EoM (1)

Elia takes into account new R3 Max for offers in auction

Notify DSO of

updated pool

• Different use cases (TSO and DSO):

Add a DP without impact on R3 Max

Add / remove DP with impact on R3 Max

Change mix R3 Standard – Flex (change R3 Max Standard)

DP switch from one BSP to another

New BSP

• Contact: Customer Relations

• Amandine Leroux: amandine.leroux@elia.be

• Aimilios Orfanos: aimilios.orfanos@elia.be

Recurring process Use cases and contact

24

Pilot project R2 non-CIPU

Start project

TECHNICAL PART

Timeline R2 non CIPU project

26

Q2 Q3 Q4 Q1 Q2 Q3 Q4

Ad hoc tests

+ data processing

participation stage

+ data processing

Conclusions +

drafting report

2016 2017

MARKET ANALYSIS

Market parties

interested in R2

load project +

workshop

Call for interest

launched by Elia

Selection and

Agreement

project partners

Challenging planning:

• Wind project: 2 years

• Complicated project with multiple partners

June 3rd: public workshop and call for candidates

July 26th: Call for proposal including:

• Questionnaire

• Selections and exclusion criteria

• Requirements for data exchange

• Control target March (10s. Values)

August 26th: deadline for proposal

August 29th – September 9th : Additional questions to providers

Next step: selection of candidates

Selection candidates: steps done so far

27

• 7 of the 5 candidates responded

• 4 of the 5 are eligible

Observations • Diversified technology (Biomass, CHP, Load, ….)

• Flexibility on TSO/DSO Grid

• Upwards/downwards Flex

• Relatively high costs

Selection candidates: status

28

Candidate Received Not Received/Not compliant

Candidate 1 X

Candidate 2 X

Candidate 3 X

Candidate 4 X

Candidate 5 X X

Candidate 6 X

Candidate 7 X

Ongoing work

• ToE/imbalance adjustment in case of BSP who is not a BRP

• Current working assumption: no imbalance adjustment for pilot project

• But investigate ToE solutions for enduring solution

• Budget

• Total amount/types of costs (in collaboration with CREG)

• Cooperation DSOs

• Role DSOs in project

• pre-conditions DSO flex participation

Objective

=> Final selection candidates before End October

Next Steps - ST

29

R1 update

31

mai juin juil Aug Sep

t Oct Nov Dec Jan Fev Mar Avril

today

Final publication R1

battery technical

note on 30/06

Consult.

Adapt. Freeze R1 market design

Adapt

GFAS Consult.

signature

Go

live 2017 2016

IT implementation at Elia’s side

R1 – timing and next steps

CLOSED

Technical stream

Contractual stream

22 dec

06 feb.

06 march

07 nov

1st dec

22 dec

Market design stream

31 mars

30 avril

design.

Workshop on 22/06

End market consultation & treat remarks

TF bal – high level design principles R1

Design note – publication & start consultation

10 nov Workshop on detailed R1 design note

Results of the study “Abandon of ARP perimeter correction – Results of financial simulations” were added to the

documents of the Working Group Balancing of March:

R1 – Addendum to WG Balancing 17/03/2016

32

Website Working Group Balancing

http://www.elia.be/en/users-group/Working-Group_Balancing/

New website structure online in October 2016

34

No changes

Specific documentation of past, current and future projects will

be made available via the following web pages:

Currently: the technical design note for FCR (R1)

published in June 2016.

Projects and publications: FCR (R1)

35

…

Currently,

- The study from 2015 on the delivery of downward aFRR by wind farm

- Information regarding the R2 non-CIPU Pilotproject (2016-2017)

Projects and publications: aFRR (R2)

36

Currently,

- The 2013 study on Cross border Balancing Belgium – Netherlands

- The 2014 study on Cross border Balancing Belgium – Netherlands – Germany

New: information will be available by the end of the year:

- Explore

- WGAS activities

Projects and publications: Cross border Balancing

37

New

New

Varia

7 November 2016 AM

[The earlier mentioned date of 25 October is cancelled!]

Next meeting

39

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