cwe flow-based market coupling: on the eve of ... · philippe noury was born in poitiers, france,...

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





5

CWE (Central Western Europe)

http://www.belpex.be/

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





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


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


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



ATC and FB domain



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


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





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





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


28


- 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


29


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

mailto:[email protected]




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


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


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


CWE map showing the (non-simultaneous)

indicators for the selected hour


24 hour overview graphs of the

(non-simultaneous) indicators

cwe flow-based market coupling: on the eve of ... · philippe noury was born in poitiers, france,...

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