nwe info session

NWE Info SessionOperational & contractual changes for Dutch wholesale market organization

Agenda• Introduction

• Matthijs Nijpels• General overview of NWE Price Coupling

• Thomas Donders• Operational principles & possible scenarios

• Catherine Fricot• Detailed operational procedures

• Matthijs Nijpels• New Smart Order types & Automatic Order Submission Tool

• Rob Loos• Changes to Market Rules (APX / TenneT)

• Rob Loos & Thomas Donders• Member Testing & Planning to go-live

• Rob Loos• Conclusion

• Gineke van Dijk

2

NWE DAY-AHEAD PRICE COUPLING

General overview

AS IS > TO BE

4

NWE

• Two separate Market Couplings (CWE & Nordic) linked by a volume coupling (ITVC organised by EMCC)

• Sequential calculation approach• No common algorithm applied

• Full coupling with GB• One single price coupling based on a single

calculation• One single common algorithm to allow for a

sound and robust price formation

NWE – Driving European Market Integration

5

NWE DA

It promotes liquidity and

robustness of DA markets

It allows for

optimal usage

of cross-border

capacitiesIt encourages

the harmonization of market rules

It establishes the

necessary

framework to

enable extensions

„NWE is more than the sum of its parts“

NWE – Behind the scenes

6

• 13 Transmission System Operators

• 4 Power Exchanges

• Approx. 50 systems involved

• Approx. 150 interfaces

• 40 serviced interconnectors

• 30 bidding zones

Parties involved

Systems & interfaces

NWE - Interconnectors

IFA

BritNed

NorNed

Kontek

Baltic SwePol

EstLink

FerroSkan

SkagerakKontiscan

DK1-DE

Price Coupling Process

General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities

8

PCR : Price Coupling of Regions

9

Potential integration of losses on DC cables

Activation of losses on a specific interconnector is subject to approval of relevant national NRAs

10

Cable Loss factor foreseen

Comments

IFA (UK-FR) yes Application to Ofgem and CRE. Foreseen for go-live

Britned (UK-NL) yes Application to Ofgem and ACM. Foreseen for go-live

NorNed (NO-NL) yes Application to NVE and ACM. Pending regulatory approval

OPERATIONAL PRINCIPLES & POSSIBLE SCENARIOS

General principles

Price Coupling Process

General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities

12

NWE Business Process

13

CZCs and allocation constraints

submission and integration

Final confirmation of the results

10:30CZCs and Allocation

constraints submitted to PCR

12:00Orderbooks closure

Global Preliminary PX confirmation

12:55Global final confirmationPublication

Trading confirmation

and scheduled exchanges notification

12:55 – 14:00Nominations

PCR process:• CZCs and allocation constraints

process• Orderbook processing• PMB calculation• Preliminary confirmation process

Price coupling results and scheduled

exchanges transfer

Final confirmation

process

PCR Process Timings for NWE Normal process – 55 minutes

14

12:00 OBK GCT

12:00 – 12:10 Check of OBK and sending to PMB

12:10 – 12:27 Calculation

12:28 – 12:41 Preliminary PX validation

12:42 Publication of preliminary results (incl. market clearing price) to the market and in parallel sending of these preliminary results for final confirmation/approval to the TSOs

12:42 – 12:54 Final TSO validation

12:55 Publication of Final Results (incl. market clearing price)Start of Notification Process

Process is delayed

15

Partial Coupling/Full Decoupling Deadline

Target Time

Latest Time to

Start an IC

TIME

Normal Procedure Normal procedures can still apply after target time

Backup procedure can apply before the

target time Backup procedures

Fallback procedures can apply before fallback time

Fallback procedures

Decoupling preparation decoupling

Process delayed – assumptions

Pre-coupling• Deadline to solve incidents with Network Data (CZCs) publication is

11:45 CET

Coupling• Time allowance for technical problem solving up to 55 min• Time allowance for special market procedures such as handling of

curtailment situations or price threshold reached via a second auction used by CWE PXs or the NPS-applied regulated routines that include peak load capacity (production/load) reserves activation.

• Deadline for final Market Results is 13:50 CET

Post-coupling• Final notification deadline of 15:30 in CWE, CWE-GB and CWE-

Nordic interconnectors

16

2nd Auction CWE/ GB48 min

Max. Time /Flexibility to solve technical problems

55min

Second Auction• A Second Auction is triggered in case at least one of the CWE/GB prices

reach or exceed the predefined price thresholds

• The routine consists in • Reopening the PXs order books for 10 minutes to give the Market Participants the

opportunity to modify their bids in order to improve the market situation• Execution of a second calculation with the new Order Data

• The thresholds to trigger a 2nd auction in CWE remain the same:• + 500 EUR/MWh and -150 EUR/MWh

• In GB thresholds will be introduced:• + 500 GBP/MWh and -150 GBP/MWh

• In case the prices still reach the thresholds after the Second Auction calculation, no additional Second Auction will be triggered

17

2nd Auction CWE/ GB48 min

PCR PROCESS TIMINGS for NWE

18

• * This is the maximum time which could be used to solve a technical problem in order to avoid a decoupling. If the technical problem is resolved in less than 55 min than the next processes will start earlier.

• ** the Second Auction in CWE / GB is a single process taking 48 minutes.• *** the Special Procedure for the Nordics is an iterative process which will run the number of times necessary taking into the

13.50 full decoupling deadline when NWE is coupled.

Fallback procedures

19


Target Time

Latest Time to

Start an IC

TIME





Fallback procedures


Fallback procedures

20


Target Time

Latest Time to

Start an IC

TIME





Fallback procedures


Full Decoupling of NWE (1)• Internally in CWE and for the CWE – Nordic interconnectors (except Baltic Cable):

• Shadow auctions organized by CASC will be held and results published• The 3 PXs within CWE will reopen the order books (20 min) and perform local DA spot market

calculations without using cross border capacities• The notification deadline of 15.30 is applicable for the notification by market parties of utilization of

Explicit Capacity bought in Shadow Auctions• Fallback for Baltic cable : capacity goes back to the cable owner

• In GB• Shadow auctions organized by RTE/NGIC are applicable for FR/GB border only (IFA interconnector),

this consists of daily explicit auctions • Capacity of virtual interconnector set to zero• The 2 PXs will reopen the order books (APX UK 15 min) and perform local DA spot market calculations

without using cross border capacities• Fallback for BritNed : capacity goes to intraday

• For the Nordic – Baltic area including the link with Poland• Shadow auctions on 3 CWE-Nordic links• Re-opening of NPS order books• Price coupling will be performed by NPS utilizing the cross border capacities within this region

21

Shadow Auctions • Bids submitted through the Shadow Auctions interface at CASC.EU

are default bids :• They are valid for every day of the year, for a specific border, direction and an

hourly period (Volume in MW and a Price in €/MWh)• Participants can update their default bids at any time before the freezing of

the database when Shadow Auctions are run

• Description in “Harmonised Auction Rules for CWE, CSE and CH”

• Possibility to register only for Shadow Auctions, with a ‘lighter’ status: “Participant to Shadow Auctions Only"

• Market Participants need to submit a nomination towards the respective TSOs by the notification deadline of 15.30

22

Full Decoupling scenario

23

CWE : 4 local PX auctions

Nordic-Baltic Market Splitting

Virtual Capacity is set to Zero2 local PX auctions

Shadow Auctions

“Local” matching process

In case of full decoupling the processes are local• Communication in case of fallback is organized locally (different info,

different timings)

CWE TSO investigate flexibility of notification deadline• The CWE TSOs and 50 Hertz have agreed upon a joint target solution for the

deadlines for submitting the different schedules towards the TSOs available as of Go-Live of the Price Coupling in the NWE region

• Taken into account that it is important for the TSOs to receive data of good quality, the TSOs agreed to extend the deadline for submitting generation schedules in the very rare cases of specific fallback situations to a later time than 15:30

• In these extraordinary situations, all CWE TSOs and 50 Hertz will extend the deadline for submitting generation schedules until at least 15:45. Some TSOs can extend this deadline even beyond 15:45 depending on local market rules

• This means that market participants have at least 60 minutes for the submission of generation schedules

24

CWE TSO investigation on flexibility of notification deadline – impact on procedures

25

NotificationProcess45 min

15:30

Crossborder Notification

Process45 min

15:45

Generation Notification

ProcessAt least 60 min

15:30

15:30

Exceptional cases


26

Full decoupling before OBK GCT (12:00)

27



Notification

Process60 min

OBK GCT = 12:00

Final Notification deadline =15:30 which applies to:Internal CWE, CWE-GB and CWE-Nordic interconnectors

Publication of prelimi-nary results =12:42




Case X10 Case X12Case X11Full decouplingbefore 12.00

X10 + delay

X10 +2nd Auction

CWE

Full decoupling42 min



Max. Time /Flexibility to

solve technical problems55min*

2nd Auction CWE/ GB

28 min**

Partial (De)coupling within NWE• Any scenario where one or more bidding areas and/or interconnectors are

temporary not participating in NWE Market Coupling while the remaining bidding areas/interconnectors still participate in NWE Market Coupling

• The CZCs for the decoupled borders / interconnectors will be allocated via the fall back solution for these temporary not participating borders / interconnectors

• NWE parties will try to couple as many borders / interconnectors as possible

• Partial coupling is triggered• during the pre-coupling process, at the latest at 11:45• during the coupling process, at the latest at 12:40

28

Partial Coupling ScenarioExample : CWE+GB <> Nordic

29

PCR coupling

Nordic-Baltic: Market Splitting

Shadow Auctions


PCR matching process

Adobe Acrobat Document

Partial Coupling ScenarioExample : NorNed

30

PCR coupling

Shadow Auctions


Partial Coupling ScenarioExample : EPEX OBK missing

31

PCR coupling

Shadow Auctions



Partial Coupling ScenarioExample: APX NL/Belpex OBK missing

32

PCR coupling

Shadow Auctions


33

PCR coupling

Shadow Auctions


Partial Coupling ScenarioExample : no CWE CZCs in PMB

Decoupling scenarios

34

Where’s the problem What decouples? Resulting configuration

APX/Belpex CWE internal borders (FR-DE, FR-BE, BE-NL, NL-DE) and NorNed and BritNed and GB-GB

NL, BE and APX UK markets isolated

EPEX CWE internal borders and IFA, DK-DE, DE-SE

DE, FR, and BE markets isolated

NPS (Nordic) Nordic area, NorNed, DE-DK, DE-SE

Nordic markets isolated (but internally coupled)

N2EX GB-GB, IFA N2EX market isolatedCWE TSOs CWE internal borders BE market isolatedBritNed BritNed No market isolatedNorNed NorNed No market isolatedAny other individual interconnector

That interconnector No market isolated

PMB, or problem after 12:20

Entire region All markets isolated (but Nordic markets internally coupled)

34




Partial Coupling before OBK GCT (12:00)

35

• * In case X6b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are still coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but instead NPS can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted (updated) by NPS and market parties to relevant TSOs until about 1 hour before delivery hour.


Partial coupling followed by Full Decoupling

+ Special Routine Nordics

Case X7

Publication of preliminary results =12:42

Case X9a

Partial coupling after OBK GCT (12:00)

37

Case X9bCase X8

DETAILED OPERATIONAL PROCEDURES

Timings and messages

NORMAL NWE/PCR PROCESS

Normal NWE/PCR process

42

10:30 12:00

CZC publication

MP’s introduce orders

12:55

Coupling process

PX GCTNormal timing 14:00

Notifications to TenneT

12:42

Preliminary result publication

Final results

* All timings are C.E.T

Normal process timeline• CZC published at 10:30 on CASC website• PX gate closure time at 12:00

• Publication of preliminary market results 12:42 • Publication of final market results 12:55

Notification deadline

Belgium France Germany The Netherlands

Cross-Border 14:30 14:30 14:30 14:00 (E-program)

Local/hub Hub 1: 14:00Hub 2: 14:30

Ex post 14:30 14:00 (E-program)

Consumption 14:30 n/a 14:30 14:45 (T-program)

Generation 15:00 16:30 14:30 14:45 (T-program)

CASE 1 PROCESS DELAYED WITH MAX TIMING

Case 1 Process delayed with max timing

10:30 12:00 12:55

Coupling process / Backup procedures

PX GCTNormal timing

15:00

12:42


Exceptional timing

13:38 13:50

Technical problem

Message to MP


CZC publication


13:00

Final results

45


13:20

Case 1 Process delayed with max timing

• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Delay in Market Coupling results

Timing Message Additional actions for

MPs

Market results

Publication deadline

Local hub Notification Cross border notification deadline

12:42 [ExC_02]: Delay in Market Coupling Results publication

CASC: invitation to update bids in the Shadow Auction system before 13:40

13:50 14:00 14:00

13:00

TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline


13:50 14:30 14:30

13:20



13:50 15:00 15:00

Messages

PX : [ExC_02] TSO

47

CASE 2A SECOND AUCTION

Case 2a second auction

10:30 12:00

CZC publication


Coupling process

PX GCTNormal timing




Exceptional timing

>12:42 >12:55 15:00

12:30

Message to MP

14:00

13:00 <13:50

Final results

Case 2a second auction

• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Threshold reached -€150 or €500 / -£150 or + £500• Second Auction triggered (re-opening of Order Books)

Timing* Message Additional actions for

MPs

Market results Publication

deadline

Local hub Notification

Cross border notification deadline

±12:30[ExC_01]: Thresholds reached - Reopening of the order books

PX: OBK open for 10 minutes after message 13:50 n/a n/a

13:00


CASC: invitation to update bids in the Shad ow Auction system before 13:40

13:50 15:00 15:00

Messages

CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 13:40.

PX : [ExC_01]

51

CASE 4 FULL DECOUPLING

Case 4 Full Decoupling 10:30 12:00

CZC publication

MP’s introduce bids

12:55

13:50

Process run

PX GCTNormal timing

Exceptional timing

15:3013:05

Full decoupling preparation*

Full decoupling

Exceptional procedures

13:2012:42


MP’s update orders**

Shadow Auction results

Note:*Shadow auction will be triggered at CASC** Reopening of order book for 20 min

Final results

>14:30

Message to MP

13:00

Case 4 Full Decoupling• CZC published at 10:30 on CASC website• PX gate closure time at 12:00

• Full decoupling announcement • Shadow auctions • Follow the local auction rules

Timing* Message Additional actions for MPs


deadline



12:42[ExC_02]: Delay in

Market Coupling Results publication

13:50 14:00 14:00

13:00

TSO: Delay in Market Coupling Results/ local

Market Results publication and

extension of Hub Notification deadline

CASC: invitation to update bids in the Shad ow Auction

system before 13:40

13:50 14:30 14:30

13:20[ExC_03b]: Risk of Full

DecouplingBids update in the Shadow Auction

system

n/a 15:00 15:00

13:50

[ExC_04b]: Full Decoupling – Reopening of the order books

OBK open for 20 minutes after

message

n/a 15:30 15:30

Messages

PX : [ExC_02]

55

Messages

CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 13:40

PX : [ExC_03b] TSO

56

MessagesPX : [ExC_04b] TSO

57

CASE 5A FULL DECOUPLING + 2ND AUCTION

Case 5a Full Decoupling + 2nd Auction

10:30 12:00

CZC publication


12:55

13:50

PX GCTNormal timing

Exceptional timing

15:3013:05

Full decoupling preparation* Full

decoupling


13:2012:42




Note:*Shadow auction will be triggered at CASC** Reopening of order book for 20 min*** Reopening of order book “second auction” 10 min**** PX publish at best effort base at 14:45

14:00

MP’s update orders***

14:25 14:45

Final**** results

Coupling process

Message to MP

13:00


• CZC published at 10:30 on CASC website• PX gate closure time at 12:00



deadline



12:42 [ExC_02]: Delay in Market Coupling Results publication


13:50 14:00 14:00

13:00TSO: Delay in Market Coupling Results/ local Market Results publication and extension of Hub Notification deadline


13:50 14:30 14:30

13:20 [ExC_03b]: Risk of Full Decoupling


13:50


13:50 15:00 15:00

Timing Message Additional actions for MPs


deadline


Cross border notification

deadline

13:50

[ExC_04b]: Full Decoupling – Reopening of the order books

PX: OBK open for 20 minutes after message

TSO: Extension of Notification Deadlines due to full decoupling declared/delay in local Market Results publication

15:30 15:30

14:25

[CWE_UMM_05]: Thresholds reached during local auction


TSO: Extension of Generation Notification Deadlines due to Second Auction Triggered after Full Decoupling

15:30 15:30


• Full decoupling announcement • Shadow auctions • Follow the local auction rules

Messages

PX : [ExC_02]

62



63


64

MessagesPX : [UMM_05] TSO

65

CASE X3A PARTIAL COUPLING BEFORE OBK GCT + SECOND AUCTION

Case X3a partial coupling before OBK GCT + Second Auction

10:3012:00

PX GCTNormal timing

Exceptional timing


CZC publication


Message to MP

11:15 11:45

Coupling process

14:00




>12:42 >12:55 15:30

12:30

13:00 <13:50

Final results

13:20

Partial coupling before OBK GCT

67

Timing Message Additional actions for MPs

Market results

Publication deadline


Deadline

Cross Border Notification

Deadline

11:15[UMM_02]: Risk of partial decoupling for one or more interconnectors


13:50

11:45 [UMM_03]: One or more interconnectors decoupled

13:50

±12:30 [ExC_01]: Thresholds reached - Reopening of the order books

PX: OBK open for 10 minutes after message 13:50

13:00



13:50 14:30 14:30

13:20


13:50 15:00 15:00

Case X3a partial coupling before OBK GCT + Second Auction

• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Threshold reached -150€/MWh or 500€/MWh (-150£/MWh or + 500£/MWh)• Second Auction triggered (re-opening of Order Books)• Publication of final market results before 13:50

68

Message


PX : [UMM_02]

69

MessagesPX : [ExC_01]

70

CASE X7 PARTIAL COUPLING AFTER GCT

Case X7 partial coupling after GCT

10:30 12:00

13:50

PX GCT

Partial coupling preparation* Partial

coupling

12:4012:20

Normal timing

Exceptional timing

Coupling process / backup procedures


12:30


Final results


13:38

CZC publication



15:00

Note:

*Shadow auction will be triggered at CASC

** Reopening of order book for 10 min

13:00

Message to MP

13:20

Case X7 partial coupling after GCT

• CZC published at 10:30 on CASC website• PX gate closure time at 12:00• Publication of preliminary market results at the latest 13:38 • Publication of final market results at the latest 13:50



deadline


Cross border notification

deadline

12:20 [ExC_03a]: Risk of Partial Decoupling


n/a n/a n/a

12:40[ExC_04a]: Partial Decoupling – Reopening of the PX order books


13:50 14:00 14:00

13:00



13:50 14:30 14:30

13:20



13:50 15:00 15:00

CASC will add: Therefore, if relevant, we advise you to update your shadow bids at CASC EXAU platform before 12:30.

MessagesPX : [ExC_03a]

74

MessagesPX : [ExC_04a] TSO

75

NWE process overview

10:30 12:00

15:30

CZC publication



12:55

13:50

Process run

Full decoupling preparation

Full decoupling

PX GCT

13:05

Partial coupling preparation

Partial coupling

12:4012:2011:45

Partial coupling due CZC reason

Normal timing

Exceptional timing


Decoupling scenarios

77

Where’s the problem What decouples? Resulting configuration

APX/Belpex CWE internal borders (FR-DE, FR-BE, BE-NL, NL-DE) and NorNed and BritNed and GB-GB

NL, BE and APX UK markets isolated

EPEX CWE internal borders and IFA, DK-DE, DE-SE

DE, FR, and BE markets isolated

NPS (Nordic) Nordic area, NorNed, DE-DK, DE-SE

Nordic markets isolated (but internally coupled)

N2EX GB-GB, IFA N2EX market isolatedCWE TSOs CWE internal borders BE market isolatedBritNed BritNed No market isolatedNorNed NorNed No market isolatedAny other individual interconnector

That interconnector No market isolated

PMB, or problem after 12:20 Entire region All markets isolated (but Nordic markets internally coupled)

Communication to the market - summarized

Time/Deadline

Communication Message number

Other messagesCASC TSO Local PX

10:00 Risk of Partial/full Decoupling known in advance

[ExC_03a/b] X

10:30 Partial/full Decoupling known in advance [ExC_05a/b]

11:15 Risk of partial decoupling for one or more interconnectors

[UMM_02] X

11:45 One or more interconnectors decoupled [UMM_03]

12:20 Risk of Partial Decoupling in certain regions [ExC_03a] X

~ 12:30 Second Auction [ExC_01] X

12:40 Partial Decoupling – Reopening of order books [ExC_04a] X

Regular publication time (12:42)

Delay in Market Coupling Results publication [ExC_02] X

NB 1. The fallback solutions and processes as well as their associated contents and timings are organized on local / regional level and not on NWE level. Timings are therefore indicative and additional messages can be sent (e.g. IFA CMS will also sent messages in case of a fall back situation) NB 2. The shift of notification deadlines only applies for CWE internally and CWE borders.

78


Time/Deadline


Other messages

CASC TSO Local PX

13:00 • Delay in Market Coupling Results publication -> Extension of notification deadlines

X

13:20 • Risk of Full Decoupling • Delay in Market Coupling Results publication ->

Extension of notification deadlines

[EXC_03b]X

13:50 • Decision of Full decoupling• Extension of notification deadlines

[EXC_04b]X

14:25 • Thresholds reached during local auction [UMM_05] X X

79

Smarter Day-aheadSmart bids project

LINKED & EXCLUSIVE BLOCK ORDERS

New Block Order Types

Linked Block OrdersDefinition:• The execution of (a set of) profile block(s) is subject to the execution of

another block• Other standard execution rule apply in full

Use:• Allows to explicitly consider technical and economical constraints• For example, a first block may include the start-up costs of a production

facility, and additional blocks comprising fuel costs may be linked to this block

• Possibility to design complex linked structures (i.e. families)

1 3 5 7 9 11 13 15 17 19 21 23

Hour

Q

Block Order Block Order 2 Block Order 3

1 3 5 7 9 11 13 15 17 19 21 23

Hour

Q

Block Order Block Order 2 Block Order 3

Technical plant data

• Production cost 50 MW = 65 €/MWh• Production cost 300 MW = 60 €/MWh• Marginal cost to increase production

from 50 MW to 300 MW = 59 €/MWh• Marginal cost to increase from 50 MW to

200 MW = 61 €/MWh• Marginal cost to increase from 200 MW

to 300 MW = 56 €/MWh

Bidding strategiesPossible bidding strategy 1:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 250 MW @ 59 €

• linked to Block 1→ Unit is fully accepted if P>60; → or 50 MW accepted if P>65

Possible bidding strategy 2:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 150 MW @ 61 €

• linked to Block 1• Block 3: Sell 100 MW @ 56 €

• linked to Block 2→ Unit is fully accepted if P>60; → or 200 MW accepted if P>62;→ or 50 MW accepted if P>65

Example

Output(MW)

Cost(€/MWh)

Pmin 50 65

200 62

Pmax 300 60

Technical plant data

• Production cost 50 MW = 65 €/MWh• Production cost 300 MW = 60 €/MWh• Marginal cost to increase production

from 50 MW to 300 MW = 59 €/MWh• Marginal cost to increase from 50 MW to

200 MW = 61 €/MWh• Marginal cost to increase from 200 MW

to 300 MW = 56 €/MWh

Bidding strategiesPossible bidding strategy 1:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 250 MW @ 59 €

• linked to Block 1→ Unit is fully accepted if P>60; → or 50 MW accepted if P>65

Possible bidding strategy 2:• Block 1: Sell 50 MW @ 65 €• Block 2: Sell 150 MW @ 61 €

• linked to Block 1• Block 3: Sell 100 MW @ 56 €

• linked to Block 2→ Unit is fully accepted if P>60; → or 200 MW accepted if P>62;→ or 50 MW accepted if P>65

Example

Output(MW)

Cost(€/MWh)

Pmin 50 65

200 62

Pmax 300 60• Linked Block Orders: global wellfare considered

• The unit will also clear if baseload price is 60 ≤ P ≤ 65!

• The algorithm is not sequential, but considers the global wellfare of both blocks.

Linked Block Orders – use cases

Optimise thermal power plants• Offer plant using multiple orders, allowing it to run at different outputs,

each reflected by their own cost level• Run one/several hour(s) earlier or later if power prices remain

interesting outside of the peak period

Optimise consumption processes• Only execute part B of consumption process if part A of process was

started earlier• Or only start A+B when combination does not exceed certain costs

Optimise storage capacity• Sell only during peak period if off-peak purchase order has been

accepted and buy/sell combination is in the money

Exclusive Block OrdersDefinition:• Within a set of profile blocks, at most one block can be accepted• Other standard execution rule apply in full

Use:• Allows to propose for trading different production patterns• For example, a specific production plant can be offered

• at a low price for baseload production, • at a medim price for peak load production• >at a high price for super peak load production• …but can only be executed once

High price order

1 3 5 7 9 11 13 15 17 19 21 23

Medium price order

1 3 5 7 9 11 13 15 17 19 21 23

Low price order

1 3 5 7 9 11 13 15 17 19 21 23

Exclusive Block OrdersOptimise thermal power plants• Similar to using Linked Block Orders

Optimise combined heat & power installations• Heat demand with flexible timing, or some heat buffer• Flexibility might allow to produce heat & power when power prices are

highest, using several exclusive production profiles

Optimise demand side management• Case: End user can stop consumption, but only if DAM prices > 500

€/MWh and for max 2 hours/day• “Program” load shedding on the DAM on the most expensive hours (and

only of threshold is reached), using a combination of exclusive blocks of 2 hours• Block 1: hours 1 & 2, Block 2: hours 2 & 3, …

Benefits of Smart Orders• ‘Smarter’ orders give more flexibility when

introducing orders for the auction• Better reflecting technical constraints of generation units• E.g. no partial clearing at non-cost reflective price levels, lower PRB

frequency (plant offered in smaller blocks), …• Easier bidding, less operational work

• Result: better asset optimization (generation + consumption)

• Better price formation• More robust against uncertainties faced when

making day-ahead price forecasts

Static Demo

Linked Family

Linked Family - EntryTwo options are available to submit a Linked family

Option 1 Option 2

Linked Family - EntryA visual representation helps the trader to identify mistakes: Red screen for Buy side (Green for Sell side)

Show the number of Family group

submitted

Give a representation of the family

Indicate the parent of the block

Linked Family - EntryLinked family can combine Buy and Sell: the background turns blue and the columns turn red or green to represent Buy or Sell orders

Graph shows both sides

Pressing this button shows the family in a tree

Indicates the side of the block

Linked Family - EntryA Tree View shows the hierarchical relationship between orders

Pressing this button lead the trader back to the entry

screen

Block 4 can only be traded if Bloc 2 and block 1 are trade

• Color represents the side of the order (Buy or Sell).

• Colored squares make the link with the graphs above.

Static Demo

Exclusive Group

Exclusive Group - EntryTwo options are available to submit an Exclusive Group

Option 1 Option 2

Exclusive Group - EntryA visual representation helps the trader to identify mistakes: Green screen for Sell side (Red for Buy side)

Number of exclusive group will be limited – limit to be defined

Out of all the order entered, maximum one will be traded

Exclusive Group - EntryLinked family can combine Buy and Sell: the background turns blue and the columns turn red or green to represent Buy or Sell orders

Graph shows both sides

Indicates the side of the block

Smarter Day-aheadSmart bids project

AUTOMATIC ORDER SUBMISSION TOOL

Submit Orders using XML files

Automatic Order Submission

Intro

• New tool to facilitate submitting orders in automated way using XML files

• Easier workflow• Eliminates operational risks involved with Paste

from Excel functionality• Planned to be available before launch of Smart

Orders


Details

• Software to be installed alongside EuroLight® client• Tool will monitor specific folder and

• Process all xml files contained in folder• Give feedback via « acknowledgement » xml file

• Orders introduced via tool will be visible in EuroLight® Order Book• Editing via EuroLight® possible


XML Specifications & Testing

• Draft manual & specifications of xml files available on APX website

• Scheduled to be available on the Member Testing environment as of 23 October

CHANGE TO RULESAPX Power Market Rules – NL allocation rules

102

APX Power NL Market Rules

Market Rules• Changes with respect to countries involved in

Market Coupling

• Execution conditions for Linked & Exclusive Block Orders

• Delisting Strips Market• Already delisted in practice by removing all eligible instruments

• Various clarifications (with no impact on members)103

APX Power NL Market Rules

Instrument Specifications• Day-Ahead Market

• Minimum price will become -500 €/MWh• Maximum price will remain +3000€/MWh• Availability Linked & Exclusive Block Orders confirmed• Changes to operational timings

• Strips Market• Chapter will be removed

• Changes regarding rollback

104

Changes to NL allocation rules

TenneT rules• No changes

Dutch grid code• Fallback timings and principles (also for NorNed)

brought in line with the NWE procedures • Rollback possibility to change back to CWE market

coupling for BE-NL and DE-NL borders and ITCV market coupling for NorNed

• Inclusion of the losses for the NorNed cable in the market coupling is pending regulatory approval

105

PUBLICATIONSCapacities – Flows – Prices – …

106

Publications• www.apxgroup.com

• Market prices & auction volumes• www.tennet.eu & energieinfo.tennet.org

• NTC values, ATC values, flows• www.casc.eu

• ATC values, Shadow Auction results (if any)• Yearly, monthly capacity auction results

• www.europeanpricecoupling.com• Daily prices, ATC values & flows

107

http://www.apxgroup.com/

http://www.tennet.eu/

http://energieinfo.tennet.org/

http://www.casc.eu/

http://www.europeanpricecoupling.com/

PLANNING TO GO-LIVE & MEMBER TESTING

108

109

NWE Target Go-live Date• The Target Go-live date has been set at 26

November 2013• for Delivery Date 27 November 2013

• Go-live date is subject to• Successful completion of the Simulation Test phase;• Successful completion of the Member Test phase;• Signing of all contracts and agreements;• Regulatory approval

• Final Go/No Go decision to launch will be taken early November

• Launch activities have been started

110

NWE Simulation Testing• Simulation Testing phase by NWE project parties

until 31/10/2013• Normal Day scenarios• Backup scenarios • Fallback scenarios (full decoupling and partial coupling)

• Complexity due to • testing with 50+ systems and 150+ interfaces involved• New partial coupling procedures and system functionality

• NWE Parties are working hard to meet the acceptance criteria for simulation testing

111

Joint NWE Member Tests• NWE Member Test planned for 14/10 – 25/10

• Timing delayed to afternoon, but same process time• On request of members, testing of nomination process has been added

to all test days• Smart Orders are available in NWE Member Testing

Date Simulation Settlement Process i Nomination Process

Monday, October 14 Normal Day Yes Yes Tuesday, October 15 2nd auction triggering in CWE / GB Yes Yes Wednesday, October 16 Full decoupling of NWE Yes Yes

Thursday, October 17 Partial Coupling 1 (Nordic-Baltic area will be decoupled from the CWE. CWE and GB remain coupled.) No Yes

Friday, October 18 No testing N/A N/A Saturday, October 19 Sunday, October 20

Monday, October 21 Partial Coupling 2 (missing order books EPEX) Yes Yes

Tuesday, October 22 Full decoupling of NWE Yes Yes

Wednesday, October 23 No test foreseen, but can still be used as backup testing day No No

Thursday, October 24 No test foreseen, but can still be used as backup testing day No No

Friday, October 25 No testing N/A N/A

Local Member Tests

Smart Orders• Smart Orders are available on Member Test

environment already• Will remain available until (and after) NWE Go-live

• From 28 October until 15 November, test auction will be organized by APX• Smart orders will be available to see how matching results are

presented• Details on these local tests will be communicated later

112

Local Member Tests

Automatic Order Submission Tool• Scheduled to be available on Member Testing

environment as of 23 October• Exact details will be communicated later

• Will be available on Production environment prior to the NWE go-live• Please note that the Smart Orders functionality will only be available

after NWE Go-live

113

114

Disclaimer: All messages and timings are subject to changes after final testing.

CONCLUSION

115

SUMMARYAnnex

116


117





118

Full decoupling before OBK GCT (12:00)

119



Notification

Process60 min

OBK GCT = 12:00

Final Notification deadline =15:30 which applies to:Internal CWE, CWE-GB and CWE-Nordic interconnectors





Case X10 Case X12Case X11Full decouplingbefore 12.00

Idem + delay

Idem +2nd Auction

CWE




Max. Time /Flexibility to

solve technical problems55min*

2nd Auction CWE/ GB

28 min**



120

Case X1 Case X2 Case X3a Case X3b Case X4a Case X4b

121• * In case X6b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are still

coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but • instead NPS can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted • (updated) by NPS and market parties to relevant TSOs until about 1 hour before delivery hour.


Partial coupling after OBK GCT (12:00)

122

• * In case X9b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are still coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but instead NPS can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted (updated) by NPS and market parties to relevant TSOs until about 1 hour before delivery hour.

Case X7 Case X8 Case X9a Case X9b


NB 1. The fallback solutions and processes as well as their associated contents and timings are organized on local / regional level and not on NWE level. Timings are therefore indicative and additional messages can be sent (e.g. IFA CMS will also sent messages in case of a fall back situation) NB 2. The shift of notification deadlines only applies for CWE internally and CWE borders.

123

Time/Deadline


12:20 • Increased risk for partial coupling in certain region• TSO message to MPs: Inform Market of fall back

processes (update of explicit shadow auction bids)

[EXC_03a]

~ 12:35 • Second Auction• PCR message to PXs and subsequently MPs and TSOs:

Second Auction is declared

[EXC_01]

Regular publication time (12:42)

• PCR message that process is delayed from PXs* to TSOs and MPs (timings to be confirmed).

• (TSO message to MPs: Inform Market of fall back processes)

Local PX msg

Communication to the market - summarizedTime/Deadline

Communication

13:20 • PCR message to PXs and subsequently MPs and TSOs: Inform Market about Incident and risk of decoupling.

• TSO message to MPs: Inform Market of fall back processes (update of explicit shadow auction bids) & shifting of notification deadline to 15h00

[EXC_03b]

13:40 • End of update shadow auction bids• Start of explicit shadow auction calculation

-

13:50 • Decision of Full decoupling• PCR message to PXs and subsequently MPs and TSOs:

Full decoupling is declared • (TSO message to MPs: notification deadline has been

extended to 15h30)

[EXC_04b]

13:50-14:00 • Publication of the explicit shadow auction fall back results (target is to publish immediately after 13.50 and at the latest at 14:00, feasibility of these timings must still be confirmed)

-

13:55-14:15 • Update of local auction bids according to shadow auction results

Local PX msg

nwe info session

Documents

gbone single price coupling

nwe normal process

robust price formation

volume coupling itvc

publication of final

nwe business process13czcs

nominationspcr process

preliminary px validation