purchasing ancillary services on the market: the role of elia as … · 2017-01-23 · purchasing...
TRANSCRIPT
Purchasing ancillary services on the market:
The role of Elia as catalyst for new market developments
James Matthys-Donnadieu, Head Market Development
FEBEG conference, January 20th, 2017
Disclaimer: some elements of this presentation have, for the sake of easiness of understanding, been
represented in a more simplified way than what they are in reality
Elia Film: The evolution of the electricity market
Click to play: https://youtu.be/n7Chd2zi3qQ
Need for additional flexibility: a multi-dimensional approach
Context Impact for Grid Operators Necessary Answers
Flexibility needs
More important & more volatile
Flexibility sources
New technologies & players
… with challenges
& opportunities …
A rapidly changing
environment …
… requires an ambitious but
pragmatic approach
Keep “needs” under control
• Enforced Balancing Responsible Party (BRP) role
• Dynamic “needs” dimensioning
Cover “needs” efficiently
• Reserve sharing
• Cross border integration
• Shorter term procurement
• Open market to all
All technologies (batteries, load,..)
All players (independent BSP)
All voltage levels (TSO & DSO levels)The regionalisation
of the electricity
sector
RES
development
Decentralisation,
digitalisation &
new players
Year aFRR+ mFRR+ FRR- aFRR- mFRR-
2016 910 140 770 140 140 -
↓
2021 1240 175 1065 1000 175 825
2023 1240 175 1065 1000 175 825
2027 1240 175 1065 1000 175 825
NEEDS VOLUMES
FCR R1
aFRR R2
mFRR R3
Trend
NEW
Source: Adequacy study and assessment of the need for flexibility in the Belgian electricity system - April 2016, available on www.elia.be
Increased flexibility needs for balancing [MW]
Product opening
Open our products to all:
• Technologies• Market parties• Voltage levels
• Energy bidding rules• Generic prequalification rules• Generic activation controls• Generic Rx performance controls• Merit order activation
Market rules harmonization Contractual harmonization
Product development: A global roadmap with 3 major steps
Steps in function of regulation / EU discussions
1 standardised contract for all flexibility
2016 2020
7
+ Q3 2016: R1XB with DE
+ 05/2017: R1 new technologies (e.g. batteries)
FCR: Roadmap
+ 2018/19: Generic FCR contractual framework
R1 producttype
Technology
TSO GEN>25MW
TSO Non-conventional
DSO connected
Asym up / down
R1 down R1 down R1 down
R1 up R1 up R1 up
Sym 100 / 200 Mhz
R1 sym R1 Sym R1 sym
R1 producttype
Technology
TSO GEN>25MW
TSO Non-conventional
DSO connected
Asym up / down
R1 down R1 down R1 down
R1 up R1 up R1 up
Sym 100 / 200 Mhz
R1 sym R1 Sym R1 sym
Be
gin
nin
g2016
Sin
ce
Oct
2016
8
Product Detailed description Types Offered by
Secondary
reserves (R2)
• automatically and continually activated both upstream and downstream.
• It kicks in quickly (between 30 seconds and 15 minutes) and remains active
as long as it is needed.
R2-upTSO GEN>25MW
CIPU
R2-downTSO GEN>25MW
CIPU
aFRR roadmap
R2 is the most important balancing
product for Elia
• 85% of the balancing energy activated
• Setting the imbalance price for at least
80% of the time
• Together with R1 accounting for 60 -
70% of the AS budget
Challenges
• Needs for reserve volumes are slightly
increasing
• Future of historic providers
(conventional power plants) is uncertain
and expensive (must run)
Potential solutions
• Cross border integration: technically
very complex and requires Cross Border
capacity (= will take time)
• Diversification: Wind (pilot R2 wind),
CHP & Load
Elia has initiated a pilot project with willing industrial consumers or aggregators to develop an
R2 (aggregated) non-CIPU product
mFRR Target Model
9
R3 Prod Up
[CIPU units]
ICH Up
[TSO GUs]
R3 DP Up
[Aggregator]
Free bids
Up /Down
[CIPU units]
R3 Generic
Up/Down
[BSPs]
Free bids
Up/Down
[BSPs]
As Is (2016) To Be
Non contracted mFRR Contracted mFRRLegend:
R3 Prod Up
[CIPU units]
ICH Up
[TSO GUs]
R3 DP Up
[Aggregator]
Order of activation
MO: free prices MO: free prices No MO: no prices No MO: fixed prices
Order of activation
R3
Contingency
[BSPs]
Bid Ladder platform
R3 Generic
Up/Down
[BSPs]
R3
Contingency
[BSPs] *
Energy Bids
Reserve Bids
TBC *
TBC *
National MO
merged with XB
CMO
2018-
2019
STD [Up/Down] (€)(€) Ambition (3);
Tbd with DSO Ambition;Tbd with DSO (3)
Monthly / or Shorter
FLEX [Up/Down](€) (€) Ambition (3);
Tbd with DSO
FREE [Up/Down] (€) (€)(€) Ambition;
Tbd with DSO (4)Tbd with DSO (4)
NA
2017
STD [Up]* (€)
Monthly
FLEX [Up]* (€) + ICH
FREE [Up/Down] (€) (€) Tbd with DSO (4)Tbd with DSO (4)
NA
TechnologyAcc. Independent
BSPs ? => ToE(2)Sourcing MO activation
Year mFRR Type TSO GEN>25MWTSO non
conventionalDSO connected TSO DSO
2016
Prod [Up] (€) -Yearly / Monthly
DP/[Up] - +ICH (no ICH)
FREE [Up/Down] (€) - NA
2019-
2020
generic
[Up/Down] (€)Weekly or
Daily
FREE [Up/Down] NA
10
Pro
du
ct
op
en
ing
&
Bid
Lad
der
• pink indicates new elements compare to prev. year
• (€) indicates activation price
• PROD, DP, STD , FLEX & generic = contracted
mFRR
• FREE = uncontracted mFRR
Generic Bid Ladder Platform linked to
international CMO
Legend:
mFRR Roadmap(1)
Co
mm
on
Me
rit
Ord
er
Ge
ne
ric
mF
RR
&
XB
bala
nc
ing
(1) Non-binding - Roadmap reflects an ambition not a commitment from Elia to implement;
(2) The implementation of Trans of Energy is subject to law changes
(3) The implementation of an activation price requires the implementation of ToE both at TSO & DSO
level (as STD and FLEX may be composed of TSO & DSO delivery points
(4) Access for DSO points to Elia’s free bid market (‘Bidladder”) is subject to agreement from DSO ; this
holds also when this access takes place with the ToE mechanism; Elia will discuss this with DSOs
R3 100%
open to all
technologies
BidLadder
(+ with ToE?)
One
Common
Merit Order
mFRR down
Generic
Product and
Contract
Cross Border
integration
Monthly
Auctions
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017
Off
ere
d V
olu
me
in M
W
R3DP-R3 Flex Volume Offered in MW
Increase of offered volumes and suppliers
11
=> Offered volume of mFRR from Non
Conventional Units (including demand
response) has been growing over the
years, in line with product
opening/redesign
0
2
4
6
8
10
12
2012 2013 2014 2015 2016 2017
Number of R1 Belgian Suppliers
R1 CIPU Suppliers R1 Non-CIPU Suppliers
# suppliers increases
=> R1 diversification not only in
Belgium but also at EU level
Many thanks for your attention!
ELIA SYSTEM OPERATOR
Boulevard de l'Empereur 20
1000 Brussels
+32 2 546 70 11
info@ elia.be
www.elia.be
An Elia Group company