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CWE Flow-Based Market Coupling: on the Eve of Implementation
Pieter Schavemaker and
Philippe Noury
European Market Coupling & Integration:
Day-ahead and Intraday Energy Markets 24-04-2012
Pieter Schavemaker
Pieter H. Schavemaker was born in Velsen, the Netherlands on November 30,
1970. He obtained his M.Sc. in Electrical Engineering from the Delft University of
Technology in 1994 and he obtained his Ph.D. in Electrical Engineering from the
Delft University of Technology in 2002. He worked for ABB, in the field of
substation control systems and as an assistant professor in the Electrical Power
Systems group of the Delft University of Technology. The past five years Pieter
worked for Tennet TSO B.V., the Dutch Transmission System Operator, where he
was actively involved in international capacity calculation and allocation
projects amongst others as convenor of the CWE inter-TSO working
group that is responsible for the design of the CWE coordinated ATC
and CWE flow-based methodologies, as convenor of the flow-based
Validation task force in the CWE joint project of the TSOs and PXs,
and as convenor of the multi-stakeholder Working Group Capacity
Calculation in the Market Integration Design Project. Currently,
Pieter works as senior manager Energy for Eurogroup Consulting.
He is author of the book “Electrical Power System Essentials”,
published by Wiley.
2
Philippe Noury
Philippe Noury was born in Poitiers, France, on the 10th of December 1979. He
obtained his “Diplôme d’Ingénieur” (French equivalent of a Master of Engineering)
at Ecole Centrale de Lyon end of 2002. Philippe Joined RTE in the beginning of
2003 as a Shift Engineer in the South-East regional Control Center in Marseille.
After 3 years in the control room, Philippe joined the South-East commercial team
of RTE, where he lead a team in charge of metering data analysis, customer
invoicing and electricity quality improvement. Since the beginning of 2010,
Philippe is project manager within the European Market Integration Department in
RTE’s headquarters, located at La Défense. Philippe’s current main activities are
linked to the implementation of market coupling, and especially within the CWE
initiative to lead the Flow Based Working Group, a TSO group of experts in charge
of designing and implementing the Flow based methodology.
3
Contents
• CWE FB: status update, where are we now?
• CWE FB: a short summary
• CWE FB: FB in CWE and ATCs outside; how?
• CWE FB: FB for Day Ahead; what about ID?
4
Contents
• CWE FB: status update, where are we now?
• CWE FB: a short summary
• CWE FB: FB in CWE and ATCs outside; how?
• CWE FB: FB for Day Ahead; what about ID?
5
CWE (Central Western Europe)
2010 2011 2012 2008 2009 2007 2013
CWE (Central Western Europe) where are we now?
Mid 2013: Go-live of the CWE FB MC!
June 2008, Decision to start with ATC MC and further study of FB MC
2008 FBMC simulations based on non-operational FB data issues detected were that seemed to be linked to the data quality
June 2007, MoU signed targeting FB MC for CWE region
Nov 9, 2010 CWE ATC MC go live ITVC CWE Nordic
Sept 2012: Start of the FB external parallel run
End 2012: Go-live of the NWE MC
2012
CWE (Central Western Europe) where are we now?
External parallel run Internal parallel run
Public consultation
September
Interaction with market participants:
• CWE FB User Group
• Public consultation
• External //run
• Operational ATCMC; FBMC, FBIMC simulated based on operational ATC order books and operational FB parameters
• Market participants to get acquainted to FB parameters and market impact
• To allow FB to establish a reference on its own
Contents
• CWE FB: status update, where are we now?
• CWE FB: a short summary
• CWE FB: FB in CWE and ATCs outside; how?
• CWE FB: FB for Day Ahead; what about ID?
9
What is congestion?
What is congestion?
• commercial: more capacity requested by the market than is available
• physical: overloaded transmission lines leading to outages
congestion management in the broadest sense
determination of available
transmission capacity
capacity allocation
congestion forecast
if needed: congestion relief
Bids / reservations
Generation schedules
Timeline
Assessment of the security of supply domain
13
determination of available
transmission capacity
capacity allocation
Bids / reservations
NTC/ATC or FB constraints respecting the Security
of Supply domain
How to approximate the security of supply domain
- example with 3 countries -
14
Country A
Country C
Country B
+100 MW
-100 MW
Monitored
lines
Outage
scenario
Margin left
(MW)
Influence of exchange
on lines (PTDF)
AB AC BC
Line 1 No
outage
…
…
Line 2 …
…
Line 3 …
…
150 10%
line 1
Outage1
120 Outage 1 20%
The security of supply domain
April 20, 2012 15
Monitored
Lines
Outage
scenario
Margin left
(MW)
Influence of exchange
on lines (PTDF)
AB AC BC
Line 1 No
outage 150 1% 10% 3%
Outage 1 120 5% 20% 1%
Outage 2 100 6% 25% 1%
Line 2 No
outage 150 -2% 0 5%
Outage 3 100 -12% 0 10%
Line 3 No
outage
Outage 4
- 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
Security of supply domain
Constraints
Exchange(A>C)
Exchange(A>B)
! Numbers are for illustration only
Assessment of the security domain
Determination of available
transmission capacity
capacity allocation
Bids / reservations
16 - 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
Exchange(A>C)
Exchange(A>B)
Capacity split
Between borders
step 1 step 2 output
NTC/ATC constraints
FB constraints
Security of
Supply domain
ATC & FB constraints – theory
17
• Security domain is obtained by taking into account all the relevant physical constraints of the grid
- 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
security domain constraints polyhedron
Exchange(A>C)
Exchange(A>B)
NTC/ATC
• Given the security domain, NTC/ATC constraints and the corresponding NTC/ATC domain are a choice made by the TSO
• The FB domain is the security domain itself
17 Flow-based
Determination of available
transmission capacity
ATC and FB domain
Determination of available
transmission capacity
capacity allocation
Bids / reservations
18 - 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
Exchange(A>C)
Exchange(A>B)
Capacity split
Between borders
step 1 step 2 output
ATC
FB
Security of
Supply domain
ATC vs FB constraints – theory
19
• FB offers more trading opportunities with the same level of security of supply
- 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
security domain constraints polyhedron
Exchange(A>C)
Exchange(A>B)
NTC/ATC Flow-based
• In FB capacity split is not a choice of the TSO, but is market driven (at the time of allocation)
FB experimental results
• CWE reported in Oct 2011 on their experimental findings with FBMC, based on 9 weeks of data (‘CWE Enhanced Flow-Based MC feasibility report’)
• FB offers more trading opportunities with the same level of SoS as the current coordinated ATC
• As such, FB market coupling results in higher welfare and better price convergence compared to the current ATC MC ones…
• Results included in the report are based on basic assumptions which have to be fine-tuned
FB domain: experimental results
FB offers more trading opportunities with the same level of SoS as the current coordinated ATC
FB market impact: experimental results
• FB market coupling results in higher welfare and better price convergence compared to the current ATC MC ones…
0
2
4
6
8
10
12
Intuit FB FB Infinite
soci
al w
elf
are
incr
eas
e
rela
tive
to
ATC
(in
Mil
lion
Eu
ro fo
r 9
we
eks
)
0%
20%
40%
60%
80%
100%
ATC Intuit FB FB Infinite
Full
pri
ce c
on
verg
en
ce(9
we
eks
dat
a)
Contents
• CWE FB: status update, where are we now?
• CWE FB: a short summary
• CWE FB: FB in CWE and ATCs outside; how?
• CWE FB: FB for Day Ahead; what about ID?
23
1. Standard: realized ATC transactions are not taken into account in the margin of the CBs TSOs need to reserve margins (worst-case) on their CBs for the possible usage by the ATC area
• Just like today
• No competition for the use of the scarce capacity in the allocation mechanism due to the ex-ante split
• Not optimal: scarce capacity not always fully used
FB in CWE and ATCs outside; how? Hybrid coupling, two variants
FB area ATC area
ATC
Price coupling
24
Total margin on the CB
Margin reserved for the ATC
Margin left for the FB
FB in CWE and ATCs outside; how?
25
1. Standard
2. Advanced: realized ATC transactions are taken into account in the margin of the CBs TSOs do not need to reserve margins on their CBs use of margin is market driven
• Competition for the use of the scarce capacity in the allocation mechanism
• Optimal use of scarce capacity
• Maximum social welfare
• ATC area is subject to FB price properties
Hybrid coupling, two variants
FB area ATC area
ATC
Price coupling
Total margin on the CB
Margin available for the FB and ATC trades
Contents
• CWE FB: status update, where are we now?
• CWE FB: a short summary
• CWE FB: FB in CWE and ATCs outside; how?
• CWE FB: FB for Day Ahead; what about ID?
26
FB domain before the DA FBMC • After the implementation of FB DA, the logical next step will be the development of FB ID
FB for Day-Ahead; what about ID?
27
• Till then, the same basic principle like today: capacity left after the DA stage ID stage
- 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
Exchange(A>C)
Exchange(A>B)
FB domain after the DA FBMC • After the implementation of FB DA, the logical next step will be the development of FB ID
FB for Day-Ahead; what about ID?
28
• Till then, the same basic principle like today: capacity left after the DA stage ID stage
- 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
Exchange(A>C)
Exchange(A>B)
- 400
- 300
- 200
- 100
0
100
200
300
400
- 400 - 300 - 200 100 200 300 400 - 100 0
Exchange(A>C)
Exchange(A>B)
ID ATC taken from the FB domain • After the implementation of FB DA, the logical next step will be the development of FB ID
FB for Day-Ahead; what about ID?
29
• Till then, the same basic principle like today: capacity left after the DA stage ID stage
Questions
Thank you for your attention! In case of questions, do not hesitate to contact us:
• Philippe Noury [email protected]
• Pieter Schavemaker [email protected]
31
Back-up slides
FB domain – how to get a grip? (1/2)
33
• From the constraints itself
• Figures obtained from the search space as defined by the constraints: – Maximum bilateral exchanges
( ) feasible, given the FB domain
– The vertices of the FB domain (all the corner points at the boundary of the domain)
– Maximum net positions feasible, given the FB domain
- 400
- 300
- 200
- 100
0
100
200
300
400
- 300 - 200 100 200 300 400 - 100 0
security domain constraints polyhedron
Exchange(A>C)
Exchange(A>B)
Flow-based
FB domain – how to get a grip? (2/2)
34
• NTC/ATC and FB can/will show different values for the maximum bilateral exchanges that are feasible
• FB – Maximum bilateral exchanges
feasible in the FB domain are non-simultaneous values
• NTC/ATC – NTCs/ATCs are by definition
simultaneous values that limit the bilateral exchanges
- 400
- 300
- 200
- 100
0
100
200
300
400
- 300 - 200 100 200 300 400 - 100 0
security domain constraints polyhedron
Exchange(A>C)
Exchange(A>B)
Flow-based NTC/ATC
External parallel run – Utility Tool snapshots
Interactive part
(non-simultaneous) indicators for the hour selected
Values entered by the user are checked on the FB constraints of all 24 hours
External parallel run – Utility Tool snapshots
CWE map showing the (non-simultaneous)
indicators for the selected hour
External parallel run – Utility Tool snapshots
24 hour overview graphs of the
(non-simultaneous) indicators
External parallel run – Utility Tool snapshots
24 hour overview graphs of the
(non-simultaneous) indicators