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Overview of Make Whole PaymentsModifications Committee Meeting 59
12 February 2015
• Definition of Make Whole Payments (MWP);
• Why do MWP occur?;
• MWP through the years;
• Sample cases of Interconnector (IC) Users;
• SEMO’s comments on the four proposed Modifications;
• Further considerations.
Content
4.139 The purpose of Make Whole Payments is to make up any difference between the total Energy Payments to a Generator Unit in a Billing Period, and the Schedule Production Cost within that Billing Period (where the difference is arithmetically positive calculated over the Billing Period)…
• This is to guarantee recovery of all submitted costs (Incremental Cost, No Load costs, Start Up costs);
• SEM is designed to normally recover costs through Energy Payments, due to Uplift;
• The intent of the T&SC was for MWPs to be occasional and only limited to exceptional circumstances;
MWPs – what are they?
• Is the Unit’s revenue (SMP*MSQ)* sufficient to cover the Production Cost (MSQ*MOP+NLC+SUC)* of the unit in each TP?
• YES = MWP will be a negative value
• NO = MWP will be a positive value
• MWPs paid on the total at the end of the Energy Market Billing Period (week) only if the total aggregation is positive for each unit;
• Equivalent of Generator Units are IC Users (PT_XXXXX) not IC Gate Units (PT_XXXXX_EA/EA2/WD1).
*TPD applied as appropriate
MWPs – what are they? cont.
MWPs – what are they? cont.
€0
€5,000
€10,000
€15,000
€20,000
€25,000
00:0
0:00
00:3
0:00
01:0
0:00
01:3
0:00
02:0
0:00
02:3
0:00
03:0
0:00
03:3
0:00
04:0
0:00
04:3
0:00
05:0
0:00
05:3
0:00
06:0
0:00
06:3
0:00
07:0
0:00
07:3
0:00
08:0
0:00
08:3
0:00
09:0
0:00
09:3
0:00
10:0
0:00
10:3
0:00
11:0
0:00
11:3
0:00
12:0
0:00
12:3
0:00
13:0
0:00
13:3
0:00
14:0
0:00
14:3
0:00
15:0
0:00
15:3
0:00
16:0
0:00
16:3
0:00
17:0
0:00
17:3
0:00
18:0
0:00
18:3
0:00
19:0
0:00
19:3
0:00
20:0
0:00
20:3
0:00
21:0
0:00
21:3
0:00
22:0
0:00
22:3
0:00
23:0
0:00
23:3
0:00
Sum of Prod cost Sum of ENP
Over recovery
Under recovery
MWPs – what are they? cont.
If at the end of the week the unit is over recovering, no MWPs applies;
If at the end of the week the unit is under recovering, MWPs applies for the under recovered amount.
The main reasons behind MWPs are:
• Costs are determined on a Trading Day basis while MWPs are calculated on a Settlement Day basis; if unit is scheduled at the end of a Billing Period MWPs could occur;
• Recovery of SUC is spread over the Optimization Horizon – schedule might change when TD+1 is run leading to under-recovery;
• Re-price runs changing the schedule of a unit recovering costs over two Trading Days;
• SMP is zero or negative for a number of periods;
• Technical characteristics when baseload are not marginal;
MWPs – Why?
• When negative schedules are exposed to Uplift;
• Uplift represent a benefit for Generators with positive schedules; however it is a cost for those with prominent negative schedules;
• This could happen for units pumping or exporting*;
• Pumping is limited in capacity and will generally balance out with generation across the Billing Period;
• IC Users can export an unlimited amount due to superpositioning exposing them to Uplift;
• This exposure has always been a feature of the SEM;
• IC Gate Units created to respond to the design challenges of scheduling firm amounts.
*DSU not affected as their schedule is set as positive;
MWPs – Why? cont.
MWPs through the years – Standard Units
€0
€50,000
€100,000
€150,000
€200,000
€250,000
€300,000
1 6 111621263136414651 3 8 131823283338434853 5 101520253035404550 2 7 121722273237424752 4 9 1419242934394449 1 6 111621263136414651 3 8 131823283338434853
2008 2009 2010 2011 2012 2013 2014
DSU1 DSU2 DSU3 DSU4 DSU5 DSU6 DSU7 DSU8 DSU9_NI G100 G101 G102 G103 G104 G105 G106G107 G108 G109 G110 G111 G112 G113 G114 G115 G116 G117 G118 G119 G120 G121 G122G123 G124 G125 G126 G127 G128 G129 G130 G131 G132 G133 G134 G135 G136 G137 G138G139 G140 G141 G142 G143 G144 G145 G146 G147 G148 G149 G150 G151 G152 G153 G154G155 G156 G157 G158 G159 G160 G161 G162 G163 G164 G165 G166 G167 G168_NI G169_NI G170_NIG171_NI G172_NI G173_NI G174_NI G175_NI G176_NI G177_NI G178_NI G179_NI G180_NI G181_NI G182_NI G183_NI G184_NI G185_NI G186_NIG187_NI G188_NI G189_NI G190_NI G191_NI G192_NI G193_NI G194_NI G195_NI G196_NI G197_NI G198_NI G199_NI G200_NI
MWPs through the years – IC Units
€0
€50,000
€100,000
€150,000
€200,000
€250,000
€300,000
1 6 11 16 21 26 31 36 41 46 51 3 8 13 18 23 28 33 38 43 48 53 5 10 15 20 25 30 35 40 45 50 2 7 12 17 22 27 32 37 42 47 52 4 9 14 19 24 29 34 39 44 49 1 6 11 16 21 26 31 36 41 46 51 3 8 13 18 23 28 33 38 43 48 53
2008 2009 2010 2011 2012 2013 2014
IC100_EA IC100_EA2 IC100_WD1 IC101_EA IC101_EA2 IC101_WD1 IC102_EA IC102_EA2 IC102_WD1 IC103_EA IC104_EA IC105_EA
IC105_EA2 IC105_WD1 IC106_EA IC106_EA2 IC106_WD1 IC107_EA IC107_EA2 IC108_EA IC109_EA IC110_EA IC110_EA2 IC110_WD1
IC111_EA_NI IC111_EA2_NI IC111_WD1_NI IC112_EA_NI IC112_EA2_NI IC112_WD1_NI IC113_EA_NI IC114_EA_NI IC114_EA2_NI IC114_WD1_NI IC115_EA_NI IC115_EA2_NI
IC116_EA_NI IC117_EA_NI IC118_EA_NI IC118_EA2_NI IC118_WD1_NI IC119_EA_NI IC119_EA2_NI IC120_EA_NI IC120_EA2_NI IC120_WD1_NI IC121_EA_NI IC121_EA2_NI
IC121_WD1_NI IC122_EA_NI IC122_EA2_NI IC122_WD1_NI IC123_EA_NI IC123_EA2_NI IC123_WD1_NI IC124_EA_NI IC124_EA2_NI IC124_WD1_NI
IDT
-10000
-5000
0
5000
10000
15000
20000
25000
1 14291225 8 21 4 183116291226 8 22 5 18 3 16301326 9 22 5 18 3 17301326 9 23 5 20 3 16301226 9 22 7 20 3 17301326 9 22 7 21 4 17301327
1 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 9101112
2008 2009 2010 2011 2012 2013 2014
I_NIMOYLE I_ROIEWIC
Interconnector Flow* through the years IDT MWP
*Interconnector Users only – no SO-SO trades
Imp/Exp 2013/2014 – MSQs IC123
-6000
-4000
-2000
0
2000
4000
12/0
5/20
1321
/05/
2013
30/0
5/20
1308
/06/
2013
17/0
6/20
1326
/06/
2013
05/0
7/20
1314
/07/
2013
23/0
7/20
1301
/08/
2013
10/0
8/20
1326
/09/
2013
05/1
0/20
1314
/10/
2013
23/1
0/20
1301
/11/
2013
10/1
1/20
1319
/11/
2013
28/1
1/20
1307
/12/
2013
16/1
2/20
1325
/12/
2013
03/0
1/20
1412
/01/
2014
21/0
1/20
1430
/01/
2014
08/0
2/20
1417
/02/
2014
26/0
2/20
1407
/03/
2014
16/0
3/20
1425
/03/
2014
09/0
4/20
1418
/04/
2014
27/0
4/20
1406
/05/
2014
15/0
5/20
1424
/05/
2014
02/0
6/20
1411
/06/
2014
20/0
6/20
1429
/06/
2014
30/0
8/20
1408
/09/
2014
17/0
9/20
1426
/09/
2014
05/1
0/20
1414
/10/
2014
23/1
0/20
1401
/11/
2014
10/1
1/20
1419
/11/
2014
28/1
1/20
1407
/12/
2014
16/1
2/20
1425
/12/
2014
EA EA2 WD1
Imp/Exp 2013/2014 – Net MSQs IC123
-6000
-4000
-2000
0
2000
4000
12/0
5/20
1321
/05/
2013
30/0
5/20
1308
/06/
2013
17/0
6/20
1326
/06/
2013
05/0
7/20
1314
/07/
2013
23/0
7/20
1301
/08/
2013
10/0
8/20
1326
/09/
2013
05/1
0/20
1314
/10/
2013
23/1
0/20
1301
/11/
2013
10/1
1/20
1319
/11/
2013
28/1
1/20
1307
/12/
2013
16/1
2/20
1325
/12/
2013
03/0
1/20
1412
/01/
2014
21/0
1/20
1430
/01/
2014
08/0
2/20
1417
/02/
2014
26/0
2/20
1407
/03/
2014
16/0
3/20
1425
/03/
2014
09/0
4/20
1418
/04/
2014
27/0
4/20
1406
/05/
2014
15/0
5/20
1424
/05/
2014
02/0
6/20
1411
/06/
2014
20/0
6/20
1429
/06/
2014
30/0
8/20
1408
/09/
2014
17/0
9/20
1426
/09/
2014
05/1
0/20
1414
/10/
2014
23/1
0/20
1401
/11/
2014
10/1
1/20
1419
/11/
2014
28/1
1/20
1407
/12/
2014
16/1
2/20
1425
/12/
2014
EA EA2 WD1 Net
Paid MWPs by Gate – IC123
€0Grand Total
Grand Total
Grand Total
Imp/Exp 2013/2014 – MSQ for IC102
-6000
-4000
-2000
0
2000
4000
30/0
9/20
1226
/12/
2012
07/0
1/20
1319
/01/
2013
31/0
1/20
1312
/02/
2013
24/0
2/20
1303
/05/
2013
15/0
5/20
1327
/05/
2013
08/0
6/20
1320
/06/
2013
02/0
7/20
1314
/07/
2013
26/0
7/20
1307
/08/
2013
19/0
8/20
1331
/08/
2013
12/0
9/20
1324
/09/
2013
06/1
0/20
1318
/10/
2013
30/1
0/20
1311
/11/
2013
25/1
1/20
1313
/12/
2013
25/1
2/20
1306
/01/
2014
18/0
1/20
1430
/01/
2014
11/0
2/20
1423
/02/
2014
07/0
3/20
1419
/03/
2014
31/0
3/20
1412
/04/
2014
24/0
4/20
1406
/05/
2014
18/0
5/20
1430
/05/
2014
11/0
6/20
1423
/06/
2014
05/0
7/20
1417
/07/
2014
29/0
7/20
1410
/08/
2014
22/0
8/20
1403
/09/
2014
17/0
9/20
1429
/09/
2014
11/1
0/20
1423
/10/
2014
04/1
1/20
1416
/11/
2014
28/1
1/20
1410
/12/
2014
22/1
2/20
14
EA EA2 WD1
Imp/Exp 2013/2014 – Net MSQs IC102
-6000
-4000
-2000
0
2000
4000
30/0
9/20
1226
/12/
2012
07/0
1/20
1319
/01/
2013
31/0
1/20
1312
/02/
2013
24/0
2/20
1303
/05/
2013
15/0
5/20
1327
/05/
2013
08/0
6/20
1320
/06/
2013
02/0
7/20
1314
/07/
2013
26/0
7/20
1307
/08/
2013
19/0
8/20
1331
/08/
2013
12/0
9/20
1324
/09/
2013
06/1
0/20
1318
/10/
2013
30/1
0/20
1311
/11/
2013
25/1
1/20
1313
/12/
2013
25/1
2/20
1306
/01/
2014
18/0
1/20
1430
/01/
2014
11/0
2/20
1423
/02/
2014
07/0
3/20
1419
/03/
2014
31/0
3/20
1412
/04/
2014
24/0
4/20
1406
/05/
2014
18/0
5/20
1430
/05/
2014
11/0
6/20
1423
/06/
2014
05/0
7/20
1417
/07/
2014
29/0
7/20
1410
/08/
2014
22/0
8/20
1403
/09/
2014
17/0
9/20
1429
/09/
2014
11/1
0/20
1423
/10/
2014
04/1
1/20
1416
/11/
2014
28/1
1/20
1410
/12/
2014
22/1
2/20
14
EA EA2 WD1 Net
Paid MWPs by Gate – IC102
€0
€50,000
€100,000
€150,000
€200,000
€250,000
€300,000
40 51 53 2 4 6 8 10 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52
2012 2013 2014
IC102_EA IC102_EA2 IC102_WD1
All MWPs calculated by Gate – IC102
-€700,000
-€600,000
-€500,000
-€400,000
-€300,000
-€200,000
-€100,000
€0
€100,000
€200,000
€300,000
40 51 53 2 4 6 8 10 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52
2012 2013 2014
IC102_EA IC102_EA2 IC102_WD1
All MWPs by Gate – IC102
-€700,000
-€600,000
-€500,000
-€400,000
-€300,000
-€200,000
-€100,000
€0
€100,000
€200,000
€300,000
40 51 53 2 4 6 8 10 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52
2012 2013 2014
IC102_EA IC102_EA2 IC102_WD1 IC102_Net
Imp/Exp by TP 20130715 – MSQs IC102
-80
-60
-40
-20
0
20
40
60
80
100
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
EA EA2 WD1
Imp/Exp by TP – MSQs IC102
-150
-100
-50
0
50
100
150
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
5th Aug 2013
EA EA2 WD1 -120
-100
-80
-60
-40
-20
0
20
40
60
80
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
10th Aug 2013
EA EA2 WD1
-150
-100
-50
0
50
100
150
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
05th Sep 2013
EA EA2 WD1 -120
-100
-80
-60
-40
-20
0
20
40
60
80
100
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
09th Oct 2013
EA EA2 WD1
-150
-100
-50
0
50
100
150
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
25th Nov 2013
EA EA2 WD1
-100
-80
-60
-40
-20
0
20
40
60
80
100
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
15th Dec 2013
EA EA2 WD1-150
-100
-50
0
50
100
150
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
2nd Jan 2014
EA EA2 WD1
-150
-100
-50
0
50
100
150
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
22nd Feb 2014
EA EA2 WD1 -150
-100
-50
0
50
100
150
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
22nd Mar 2014
EA EA2 WD1
-60
-40
-20
0
20
40
60
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
21st May 2014
EA EA2 WD1 -200
-150
-100
-50
0
50
100
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
21st Jul 2014
EA EA2 WD1-150
-100
-50
0
50
100
150
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
21st Oct 2014
EA EA2 WD1
-100
-80
-60
-40
-20
0
20
40
60
80
100
120
1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
21st Dec 2014
EA EA2 WD1
Pumped Storage – MSQs 2013/2014
-4000
-3000
-2000
-1000
0
1000
2000
3000
01/0
1/20
1316
/01/
2013
31/0
1/20
1315
/02/
2013
02/0
3/20
1317
/03/
2013
01/0
4/20
1316
/04/
2013
01/0
5/20
1316
/05/
2013
31/0
5/20
1315
/06/
2013
30/0
6/20
1315
/07/
2013
30/0
7/20
1314
/08/
2013
29/0
8/20
1313
/09/
2013
28/0
9/20
1313
/10/
2013
28/1
0/20
1312
/11/
2013
27/1
1/20
1312
/12/
2013
27/1
2/20
1311
/01/
2014
26/0
1/20
1410
/02/
2014
25/0
2/20
1412
/03/
2014
27/0
3/20
1411
/04/
2014
26/0
4/20
1411
/05/
2014
26/0
5/20
1410
/06/
2014
25/0
6/20
1410
/07/
2014
25/0
7/20
1409
/08/
2014
24/0
8/20
1408
/09/
2014
23/0
9/20
1408
/10/
2014
23/1
0/20
1407
/11/
2014
22/1
1/20
1407
/12/
2014
22/1
2/20
14
Total
Pumped Storage – MWP 2013/2014
€0
€50,000
€100,000
€150,000
€200,000
€250,000
€300,000
05/0
1/20
13
19/0
1/20
13
02/0
2/20
13
16/0
2/20
13
02/0
3/20
13
16/0
3/20
13
30/0
3/20
13
13/0
4/20
13
27/0
4/20
13
11/0
5/20
13
25/0
5/20
13
08/0
6/20
13
22/0
6/20
13
06/0
7/20
13
20/0
7/20
13
03/0
8/20
13
17/0
8/20
13
31/0
8/20
13
14/0
9/20
13
28/0
9/20
13
12/1
0/20
13
26/1
0/20
13
09/1
1/20
13
23/1
1/20
13
07/1
2/20
13
21/1
2/20
13
04/0
1/20
14
18/0
1/20
14
01/0
2/20
14
15/0
2/20
14
01/0
3/20
14
15/0
3/20
14
29/0
3/20
14
12/0
4/20
14
26/0
4/20
14
10/0
5/20
14
24/0
5/20
14
07/0
6/20
14
21/0
6/20
14
05/0
7/20
14
19/0
7/20
14
02/0
8/20
14
16/0
8/20
14
30/0
8/20
14
13/0
9/20
14
27/0
9/20
14
11/1
0/20
14
25/1
0/20
14
08/1
1/20
14
22/1
1/20
14
06/1
2/20
14
20/1
2/20
14
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• Mod_09_14: ‘Amendment to Make Whole Payments for Interconnector Units’:• Remove ability to isolate losses/gains between Gates for MWP;• Eliminates unintended consequences of IDT;• Traders exposure still mitigated for their net position;• Exports are not impacted and still viable;• MWPs could still happen for cross Interconnector trading;
• Mod_10_14 ‘Remove Make Whole Payments for Interconnector Units’:• Traders exposure not mitigated in the Market;• This is the only Mod that eliminates both risks on MWPs due to
cross trading between Gates and/or between Interconnectors;• Exports are not incentivised but are not impaired either;• Radical solution to the observed issue;
Comments on the four Modifications
• Mod_11_14 ‘Pay-As-Bid / Paid-As-Bid for Interconnector Units’:• Inconsistent with current Energy Balancing mechanism;• SEMO does not consider this as a viable option for this Market;
• Mod_12_14 ‘Amendment to Make Whole Mechanism to remove Settlement Periods of simultaneous import and export flows’:• Partially remove ability to isolate losses/gains between Gates for
MWP;• Inadequate balancing of MWP for IC Users where:
• Trading exposure unmitigated if large exports happens at times of small imports;
• MWP overstated if over recovery, due to large imports, is negated by small exports;
• MWP could still happen via cross Interconnector trading;• Principles of IDT compromised;• Exports could either increase or decrease substantially;
Comments on the four Modifications – Cont.
• SEMO wishes to propose the following points for further discussion:
• Curtailment affected by net Interconnector flow; individual Gates or
individual Users trades are irrelevant;
• Curtailment or Constraints in each jurisdiction might be badly
affected if cross trading between Interconnectors will push large
imports on one Interconnector while large export on the other;
• Principles of Cross Border Trades and price signals for exports
have been in place since the start of the SEM; should they change
now?
• Dispatch down of wind efficiently managed notwithstanding
‘increased wind factor, increased Imports, 300MW new installed
wind capacity and stable demand’*;
* Eirgrid ‘Annual Wind Constraint and Curtailment Report 2013’ – dispatch down 3.2% in 2013 vs 2.1% in 2012
Further Considerations
• Exports effects on SMP;
• Consumer interests impacted by current behaviours;
• Exposure to Uplift when Exporting, is common to units with
comparable behaviour: Pumped Storage and Suppliers;
• Interconnector Users not subject to BCoP and to date have
been able to represent their exposure adequately;
• Discrimination? APTG, VPTG and PPTG don’t receive MWP;
• The nature of costs to be recovered;
• EA prices currently over-estimated due to large Imports
countertraded by Exports at the EA2;
• To calculate exposure, EA prices good estimate of EP2 SMP in
many TPs as per following graphs:
Further Considerations – cont.
SMP comparison: EA vs EP2
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2013 2014
SMP variation 2013/2014: EP2 - EA
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1 2 3 4 5 6 7 8 9 101112131415161718192021222324 1 2 3 4 5 6 7 8 9 101112131415161718192021222324
2013 2014
EA and EP2 SMP Average by TP - 2013/2014
EA EP2
Questions
