TF Balancing 26/3/2015 - Elia System Operator/media/files/Elia/users-group/20150326_TF-balancing... · Agenda Status Contracting 2015 R3 2016 Planning International Developments Enhancements

TF Balancing 26/3/2015

Agenda

Status Contracting 2015

R3 2016

Planning

International Developments

Enhancements Balancing Publications

Solar Eclipse 20/3/2015

Task Force Balancing 26/3/2015

Contracting 2015 - Update


Hans Vandenbroucke

Elia organized a tender for 400 MW of tertiary control power

o Between 300-400MW R3 from generation

o Between 0-100MW R3 Dynamic Profile

The tender procedure resulted in allocation of 340MW R3PROD and 60MW R3DP.

One provider of R3PROD filed an appeal, resulting in a suspension of the tender results for both R3Prod and R3DP

(19/11/2015).

So that tertiary reserves could be available on 1/1/2015 to guarantee a secure operation of the grid, art. 12 quinquies of

the Electricity Law was used. Volumes and prices for R3Prod (split amongst the market parties who offered) were

imposed by a royal decree for R3Prod for a total of 340MW (19/12/2015).

The appeal was withdrawn, after which Elia contracted 60MW R3DP as resulting from the tender.

Contracting R3 2015 – Final results

Task Force Balancing 26/3/2015 4

Contracting R3DP & ICH Winter 2014 - 2015


Additional Volumes [MW] Nov - Dec 2014 Jan-Mar 2015

ICH 63.9 (peak)

120 (offpeak) 112.6 (weekend)

78.6 (peak)

141.9 (offpeak) 134.6 (weekend)

R3DP 68.9 (peak) 68.9 (offpeak)

95.4 (peak) 102.4 (offpeak)

Taken the potential situation of scarcity in the winter into account, Elia informed the CREG and the Minister of the extra

potential of R3DP and ICH offered to Elia.

On the Oct 8th, Elia received a letter from the Minister requesting Elia to procure a maximum extra volume of R3DP and

ICH for the winter 2014 – 2015, subject to approval of prices by CREG.

In total Elia contracted following extra volumes of R3DP and ICH:

6

Recap evolution from STAR 2014 to STAR 2015

STAR 2014 STAR 2015

R1/R2 –

VOLUME DEMAND 28% of R1/R2 volumes

o 27MW R1-100mHz

o 20MW R2-sym

100% of R1/R2 volumes

o 83MW R1-200mHz equivalent reaction

o 140MW R2-sym

R1/R2 - PRODUCTS R1-100mHz,

R2-up & R2-down

R1-100mHz, R1-200mHz, R1-up, R1-down

R2-up & R2-down

XB-procurement XB-procurement: none R1-200mHz from France – capped to 58MW with

XB-price-component 1,025€/MW/h.

Auction results Auction results ‘asap’ Auction results within 24h after final GCT

automatically on website

And further…

- new optimization algorithm : Artelys Xpress Solver

- consolidation of the internal Elia IT chain to increase operational excellence


7

R1 & R2 2015 - Auction results http://www.elia.be/en/suppliers/purchasing-categories/energy-purchases/Ancillary-Services-Volumes-Prices

#Since 1/1/2015: no operational issues incurred

Each auction triggered a 2nd auction (price trigger)

In February: GCT2 was delayed with 1 hr to solve a bug

detected in introduction of offers related to MNBCW-feature.

No impact on optimization nor selection.

In March: auction was delayed by a week due to Dossier

Volumes amendment

Average monthly price R1 & R2

100% ST


Volumes 2016 & R3 Evolutions


Sophie van Caloen

Volumes 2016

Agenda

1. Dossier Volumes

2. Dimensioning FCR (R1)

3. Dimensioning FRR (R2 + R3)

4. FRR (R2 + R3) results

10 Task Force Balancing 26/3/2015

The ‘Dossier Volumes’ deals with the dimensioning of R1, R2 and R3

• Application of the Technical Regulation Art 233

• The TSO evaluates and determines the volumes needed to ensure security, liability and efficiency of the network

• The TSO will send the methodology and results to the CREG for approval

• The CREG will consult stakeholders

Dossier Volumes

elia presentation template / City, 19.11.2013 / Firstname Lastname 11

Elia methodology and results for reserves

dimensioning

Elia submit ‘Dossier Volumes’

to CREG

CREG consult market (with draft

decision) CREG approval

Information in TF

Balancing 26/03

Frequency Containment Reserves (R1) is joint responsibility of all TSOs of RG Continental Europe.

• Joint action to stabilize frequency after occurrence of an imbalance in the Synchronous Area

Total volume of 3000 MW FCR within RG Continental Europe.

• Simultaneous outage of two of the largest power plants in RG CE.

• Split amongst TSOs is defined by ratio of net generation of Control Block / net generation of Synchroneous Area

Split of volumes is only determined end 2015 for next year

• The value of R1 to be contracted in 2016 is expected to be ~85MW

Dimensioning FCR (R1)


Dimensioning of Frequency Restoration Reserves (R2+R3) at TSO level

• TSO is responsible to restore the balance of its Control Block within 15’

• The volumes of FRR depends on the expected imbalances of the Control Block

Volume of FRR - requirements

• Deterministic methodology : FRR must cover N-1 outage of a nuclear power plant

• Probabilistic methodology : FRR must cover 99,9% of expected imbalances

Volume of FRR will be the minimum volume resulting of both methodologies

• Compliancy with required control quality (ACE)

Used in the dimensioning methodology for aFRR

Dimensioning FRR (R2 + R3)


Step 1 – System needs

• Calculation of the total expected imbalances in 2016

• Calculation of FRR volume needs required to cover 99,9% of these imbalances (R2+R3)

• Calculation of non socialised part of FRR volume to be delivered by the single Injection ARP

with nuclear units (Rn-1)

Step 2 – aFRR

• Calculation of expected variations of imbalances

• Determination of the aFRR (R2) volume required to have a good control quality

Step 3 – mFRR

• Determination of mFRR (R3) portfolio to be able to cover 99,9% of the system imbalances

Probabilistic dimensioning methodology FRR (R2+R3)


Calculation of expected imbalances in 2016

• Based on observed system imbalance in 2014

• Additional forecasting errors due to increase of

renewable capacity

• Outages and Storm events are simulated apart

From 2016, improvement of the dimensioning

methodology to take offshore storm behavior into

account.

Step 1 : System Needs – methodology (1/3)


Improvement of the dimensioning methodology to take offshore storm behavior into account

• Storm event = sudden decrease of offshore power production in case of storm

• Previously, the storm events were added to the time series of the reference year imbalances as other forecasting errors

of renewable production

• Due to the characteristics of these events and the high impact on the system, they will now be simulated apart

• Correlation between wind parks is very high due to their geographical concentration

• These events occurs a few times per year

• The loss of power could be very high as the total offshore production could decreases suddenly

The loss of power due to a storm event will be simulated similarly to outages of production units

Note that this methodology will probably evolve in the future

• More data on offshore wind parks will be available, knowledge of offshore and ARP behavior will increase, characteristic

of the each offshore wind park can be taken into account, etc.

The improvement of the methodology will Impact the calculation of non socialised part of R3 volume (Rn-1).



Calculation of non socialised part of FRR volume

to be delivered by the single Injection ARP with

nuclear units (Rn-1)

• The Rn-1 volume is the difference between the

volume needs of the ‘System Global’ and the

volume needs of the ‘System Standard’

• This principle will apply as long as one single ARP

is responsible of the larges imbalances

• For the calculation of the ‘System Standard’, the

nuclear units are capped to the installed amount

of offshore wind parks 833MW (≠ standard unit of

500MW)



Remark

• A reduction of the needs of the ‘System Global’ is observed

between 2016 and 2015 due to the reduction of the system

imbalances.

Step 1 : System Needs - results


2015 2016

Needs System Global 1240 1203

Needs System Standard 897 1031

Rn-1 343 172

172MW

Calculation of System imbalances variability

• Based on Qh-variations of expected system imbalances in

2016

• Based on historical observed quality and R2 deficit probability

aFRR volume for 2016:

• ACE quality in 2014 was good (ENTSO-E target respected)

• Based on historical values, a Pdef of 24% allows a good ACE

quality

aFRR (R2) volume in 2016 = 140MW

Step 2 : Determination aFRR (R2)

19

Pdef = 24%


R3 portfolio consists of several reserve products : R3 Production, R3 Dynamic Profile, ICH and Inter-TSO

• Products have different specifications and limitations

• Elia FRR portfolio must cover the expected residual imbalances in at least 99,9% of time

Applying volume dimensioning methodology & taking into account underlying product characteristics, Elia

proposes FRR portfolio for 2016

140MW R2

770MW* R3 Production + R3 DP + ICH

* : All R3 products will be in competition respecting constraints

Step 3 : Determination mFRR portfolio (R3)


Upward FRR needs of the standard system

Available upward FRR (FRRa & FRRm)

%

100%

The different product characteristics are taken into account when defining the constraints R3 portfolio.

• R3 Production is available 100% of time and will be used (in combination with R2) to cover imbalances, especially

forced outages of units (loss of max ~440MW)

• R3 DP will be used in addition to R3 Prod and R2 to cover most of imbalances due to outages but also forecasting

errors of renewables and load.

• ICH will be mainly used to cover imbalances resulting from outages of nuclear units

• Inter-TSO will be used as last resort activation in exceptional cases only

All products will be in competition respecting the following constraints

• Min 300MW R3 Production

• Min 470MW R3 Production + R3 DP (corresponding to max 300MW ICH)

The proposed limits for R3 products allows Elia to ensure a secure operation of the network.

Step 3 : Determination mFRR portfolio (R3)


R3 Evolutions

Agenda

1. Tendering yearly / monthly

2. R3 Design


As European trends is to move towards short term sourcing and this could increase liquidity in the balancing market, the

goal is to move to short term sourcing for balancing products in the next years.

However, after consultation of the market (cf. TF Balancing 20/11/2014), Elia proposes to move to a partial monthly

sourcing in 2016:

Volumes contracted in the yearly tendering = 700MW

• Minimum 300MW R3 Prod

• Minimum 400MW R3 Prod + DP

Volumes contracted in the monthly tendering = 70MW

• Full competition between R3 Production and R3 Dynamic Profile

Tendering yearly / monthly


R3 Production

• No changes

R3 Dynamic Profile

• Access points, prequalified, will be allowed to provide yearly and monthly volumes

• No changes in product design except the number of activations / month

• Max activation duration of 2 hours with at least 12 hours between 2 consecutive activations

• Max 40 activations per year + Max 8 activations per month

ICH Yearly

• No changes in product design except the tariffs periods alignment with R3DP and R3Prod required

R3 Product Design


Aligned hours:

P: 8-20h (Mon-Fri

LOP: rest

Planning


Hans Vandenbroucke

Planning R3 – R3DP – ICH


- to be confirmed

International Developments


Bob Hebb

Agenda

1. NC on Electricity Balancing: Status

2. Early implementation NC on EB

3. XB initiatives Elia


NC on Electricity Balancing: Status

•The core goal of the Network Code on Balancing is to establish an European wide integrated cross-border

balancing market where TSOs balance the system in a coordinated way in order to use the most efficient

balancing resources taking into account transmission capacities.

•Current way of balancing

R2 requested by RTE

R3 requested by RTE

• Future way of balancing

R2 requested by RTE

R3 requested by RTE

Introduction


• ACER have re-drafted significant the NC which was sent ENTSOe to ACER for qualified

recommendation.

• Fundamental changes regarding

• Implementation of so-called ‘Coordinated Balancing Areas (deadlines, configurations)

• Imbalance settlement (full harmonisation, single pricing, 15 min, single position, components)

• Full cost of balancing – procurement costs balancing capacity

• Points of attention for Belgium

• specific balancing capacity products (still possible but under discussion)

• Linking Coba for aFRR with Coba for netting

• NC inspired for re-active market design

• ACER is going to send their qualified opinion to EC early May

Status Network Code on Electricity Balancing (NC on EB)


Early implementation NC on balancing

• a platform for relevant stakeholders to discuss the objective of an integrated balancing market through early

implementation of the EB

• Representatives of ENTSOe, ACER, EC and European Associations

• Key topics:

• Follow up EU pilot projects

• Follow up Early Implementation Projects:

• Proposal Standard mFRR & RR products (Q2 2015)

• First draft proposal CoBAs (Q4 2015)

• Activation purposes of bids (Q4 2015)

• CBA imbalance settlement period (Q1 2016)

• Proposal Standard aFRR products (Q2 2016)

• Proposal for pricing methodology (Q2 2016)

• Proposals for algorithms (Q2 2016)

Stakeholder Group on Balancing


Proposal Standard products mFRR & RR: (target date: Q2 2015)

• First proposal ready by ENTSOe

• Scope BE: CIPU-bids, R3 prod, ICH, R3DP

• Discussions started with stakeholders (Balancing Stakeholder Group)

• 8 different Reserve Replacement and mFRR products proposed by ENTSOe

• 15 min scheduled Block product as proposed by BE-NL pilot project and Bid ladder project kept as an option

• Workshop to be organised in April (date to be confirmed)

Proposal Standard products aFRR (target date: Q2 2016)

• Study launched with consultant to assess impact of merit order activation & ramp rates on ACE and frequency quality

• Scope BE: R2

Proposal standard products mFRR and RR


Approach CBA

• First step: develop a methodology for the CBA

• Support by consultant: Frontier/Consentec

• Next step: execute a CBA on the harmonisation of the Imbalance Settlement Period (ISP)

Status/Next steps

• Methodology for CBA has been finished and public consultation has been launched

• (ENTSO-E Website >News & Events > ENTSO-e Consultations)

• Stakeholders comments expected before March 31st

• ACER announced to put 15 minutes ISP in their qualified opinion

• CBA need to be finished before Q1 2016 to change this opinion

Methodology Cost Benefit Analysis (CBA)


XB initiatives Elia

Context: Pilot Projects on XB Balancing

38

A. Imbalance Netting (IN)

B. Replacement Reserve (RR)

C. Manual Frequency Restoration

(mFRR/R3)

D. Automatic Frequency Restoration

(aFRR/R2)

E. Frequency Containment Reserve

(FCR/R1)

A B C

D E

Pilot iGCC

Pilot GCC Pilot AUT-CH

Pilot BENL

Pilot BENL

• Currently 8 different pilot projects investigate the implementation of the NC on EB

2

1 2

2 3

Pilot GCC

Pilot Nordic Pilot eGCC

Pilot UK-NL

Pilot Terre

DE-NL*


• Imbalance netting: International Grid Control Cooperation (iGCC)

• Exchanging opposing imbalances between German TSOs, Energinet (DK-W), TenneT TSO (NL), SwissGrid (CH),

Ceps (Czech Republic) and Elia

• Ongoing: Multilateral Agreement (MLA), aFRR as emergency assistance

• Reserve Replacement: Not applicable for Elia

• FCR (R1)

• Common procurement region DE-NL is going to be coupled with common procurement region AUT-CH (2015)

• Elia currently in discussion how to integrate BE-market with this common procurement area.

• aFRR (R2) & mFRR (CIPU, R3)

• New initiative (see next slide)

• Pilot project BE-NL (see next slide)

Current porfolio of XB projects by Elia


Following a common qualitative comparison study on the subject of a BE-NL-DE Coordinated Balancing Area (CoBA)

the German (50 Hertz, Amprion, TenneT and TransnetBW), Belgian (Elia), Dutch (TenneT) and Austrian (APG) TSOs

have decided to proceed with the analysis of the potential design of a common FRR Balancing Market.

A newly set-up expert group is currently studying into detail the technical and market aspects of such a cooperation.

More specifically, the involved TSOs will seek to reach a common view on:

• the products, technical implementation and processes (bidding, activation, selection, exchange) for the exchange of aFRR and

mFRR

• interaction with intraday markets

• the required level of harmonisation and the proposed design for the settlement of balancing energy and imbalance settlement

• the use of cross zonal capacity after intraday markets by different balancing processes

50Hertz, Amprion, APG, Elia, TenneT and TransnetBW consider this work as important in relation to the early

implementation of the Network Code on Electricity Balancing and the process of forming Coordinated Balancing

Areas (COBAs).

Study on Cross-zonal FRR Balancing Market


• The BE-NL pilot project is assessing the exchange of aFRR (R2) and mFRR (R3) between 2 different Bidding Zones &

LFC blocks.

• Is one of the 8 pilot projects on XB balancing in Europe. Also one of the best appreciated projects

• Pilot project consist of 3 steps:

• Step 1 comparison of processes and functionalities (finished 2013)

• Results were presented in a common workshop to stakeholders and published on the websites of both TSOs

• Step 2 Market design scenarios (finished 2014)

• Results were presented in a common workshop (13/06/2014) to stakeholders and published on the websites of both TSOs

• Step 3 cost benefit analysis and Go/No Go decision for implementation

Scope of new AUT-BE-DE-NL initiative is similar to the scope of step 2 of the BE-NL pilot project. Hence step 3 (CBA of

market design assumptions) of the BE-NL project is put temporary on hold in order to assess first the extendibility of the

market design assumptions taken between BE & NL in step 2.”

Pilot project BE-NL


• Future modifications of Belgian Balancing market shall be more and more driven by EU

developments

• Key drivers are Network Code on Electricity Balancing and early implementation projects

• The pilot project BE-NL and the common initiative with DE & AUT are important projects to shape

the implementation of the Network Code on Electricity Balancing

• Elia will keep stakeholders informed regarding EU Topics

Conclusions - Observations


Balancing Publications 2015


Hans Vandenbroucke

5 Projects presented in the TF Balancing of 20/11

1. Publication of minute values

• Separate NRV (R2, IGCC, R3)

• Graph with minute-values of the last hour

• Download of data

2. Frequency data

• Download of data (no real-time)

3. System Warnings

• Messages published by the TSO (IT system failures, information unavailability, problems with ACE calculations, …)

4. SMS services

• SMS service in addition to RSS Feed (request for regulation capacity, inter-TSO activation)

5. ID Wind forecasting

Survey organized in December 2014 to request feedback from stakeholders

• 7 participants

• Publication of minute value (project 1) is the priority for the market

Enhancement balancing publication - Survey

Minute

publication

Freq data Warning

signal

SMS ID wind

TOT 9 31 21 19 25


Publication of solar forecast at DSO level

In the scope of UMIG 6.0 (2017), DSOs are working on the development of SPP (Synthetic Production

Profile)

These profiles will be used in DSO’s settlement processes to estimate Solar production of photovoltaic

installations with no AMR metering.

Elia publishes since 2012 solar forecasts (DA+ ID) with the objective to improve the functioning of the market

To guarantee consistency between both models, Elia and DSOs are working together (coordination in

Synergrid) on the development of a single process for the acquisition and treatment of solar forecast data

On this occasion, ELIA and DSOs identified an opportunity to improve the current forecasting system offered

to the market by developing and additional level of aggregation, per DSO.

Strong correlation between solar publications and residu factor,

hence publication of forecasting per DSO will facilitate forecasting

of ARP’s position in distribution

end April 2015, ELIA will publish on its website a solar forecast per DSO


46

Publication of solar forecast at DSO level

An additional filter will be created

to filter solar forecasts per DSO,

similar to current filter per region


Solar Eclipse 20/3/2015


Sophie Van Caloen

Impact of the solar eclipse in Belgium

• The maximal reduction of photovoltaic infeed occurred around 10:30

• PV-output reduction between 300-400 MW

• Solar infeed was significantly lower than predicted in Day-Ahead

APRs adequately programmed their portfolio to follow the consequences of the Solar Eclipse.

• However due to the significantly lower solar infeed compared to the previsions, the ARPs were generally short

throughout the morning.

• Sufficient balancing means were available at Elia to compensate the residual system imbalance.

No impact on Total Load of a magnitude that is significantly different from normal variations was identified due to

the solar eclipse.

Solar Eclipse – 20/03/2015


Impact of the solar eclipse in Continental Europe

• The fast variations in solar generation were successfully managed by TSOs thanks to meticulous preparation, and

strong regional and European cooperation.

• Germany and Italy were facing the biggest challenges.

• German TSOs managed very smoothly the high and fast variations relying on power reserves.

• Italy decided in cooperation with DSOs and generators to take an equivalent of 5 GW PV out of the system,

• Frequencies always remained within the normal operational bounds

Solar Eclipse – 20/03/2015


Thank you !


Documents

TF Balancing 26/3/2015 - Elia System Operator/media/files/Elia/users-group/20150326_TF-balancing... · Agenda Status Contracting 2015 R3 2016 Planning International Developments Enhancements