New balancing products at PEGAS
Technical background, product setup,
readiness procedure and customer benefits
GASPOOL Shipper forum, Hamburg, 10. November 2015
PEGAS – A European success story
Since 1. January 2015 all PEGAS activities are bundled at Powernext
For external purposes (e.g. customer relation) only the brand “PEGAS” is used
78%
2
Agenda
Balancing trading at PEGAS – Roundup
Introduction of new balancing products
How to become member in new balancing products?
3
PEGAS – On the way to EU’s leading
balancing platform
Balancing products
GPN
TTF
NBP
GPL
ZEE
ZTP
VTP
Apr. 07
PEG’s
Jul. 07
GPL
Oct. 07
NCG
May 11
TTF
Jan. 12
TIGF
Sep. 13
NCG
VOB
PEG-N
CEGH
TRS
Launch
PSV
AOC
PEGAS enables balancing for
market participants
Physical
Locational
GPL, NCG
Mar. 15
NBP
Jul. 14
ZTP
Apr. 15
ZEE
Nov. 15
GPL, PEG-N, TRS
Mar. 16
NCG
PEGAS is approved as trading platform for TSO/MAM
and enables balancing for market participants*
* For the TTF gas market, PEGAS received the approval to act as trading platform for MAM NCG from German regulator BNetzA
4
Hourly
GPL, NCG, TTF
New
methodology
New
methodology
Control energy levy and conversion fee
Control energy levy account (Sep 2015): NCG + 232 Mio. €; GASPOOL + 200 Mio. €
Legally possible upper limit
Legally possible upper limit
0,906 0,906
0,882 0,882
0,453 0,453
0,441 0,441
0,000
Conversion fee account: NCG - 9,2 Mio. € (Jul. 15); GASPOOL + 1,4 Mio. € (Jun. 15)
5
0,000
Agenda
Balancing trading at PEGAS – Roundup
Introduction of new balancing products
How to become member in new balancing products?
6
New zonal balancing products
Zonal balancing products for the usage by Market Area Manager
Needed by Market Area Managers for zonal balancing purposes in addition
to existing gas balancing products at the VTP’s of GPL, NCG and TTF
Following balancing zones are planned for introduction:
GASPOOL – first markets will start on 17th of November
H-Gas Zones: Ontras, Gasunie Deutschland, Gascade
L-Gas Zones: Gasunie Deutschland, Gastransport Nord, Nowega
NetConnect Germany – start on 1st March 2016
H-Gas zones: NCG H Nord, NCG H Mid, NCG H South
L-Gas zones: NCG L West, NCG L East
Design, trading and settlement in line with existing PEGAS spot products
Physical delivery (nomination) has to be taken place on dedicated points inside a
zone to cause a physical effect in the market area in the gas quality to which the
trade relates
amendments therefore already made in new KoV VIII for GY 15
7
GPL – Delivery points locational products 1/2
GASPOOL
H-Gas
Delivery zone
Storage points
National cross border
points between
German market areas
International cross
border points with
neighbouring countries
Production points
8
Gascade
•
•
•
•
Sp. Rehden
Jemgum I
Jemgum III
Nüttermoor
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Kienbaum
Gernsheim
Lampertheim I
Lampertheim IV
Broichweiden Süd
Reckrod I
Mallnow
Brandov-STEGAL
Bunde
Eynatten
Olbernhau II
GREIFSWALD
Greifswald-NEL
Greifswald-OPAL
Brandov-REGULIERT
Greifswald - Entry
GUD
•
•
•
•
•
•
•
•
•
•
Etzel Gas Lager SAL
Etzel EGL
Etzel EKB
Etzel ESE
UGS Etzel
UGS Etzel ESE
UGS Harsefeld
UGS Jemgum EWE
UGS Nüttermoor
UGS Ülsen
•
•
•
•
Etzel OGE
Bunder-Tief
Emsbüren-Berge
Wardenburg
•
•
•
•
•
•
Dornum
Dornum
Ellund
Emden-EPT1
Emden-NPT
Oude Statenzijl H
Ontras
•
•
•
•
•
•
UGS Bad Lauchstädt
UGS Bernburg
UGS Katharina
UGS Kirchheiligen
UGS Kraak
UGS Staßfurt
• Deutschneudorf
• Lasow
GPL – Delivery points locational products 2/2
GASPOOL
L-Gas
Delivery zone
Storage points
GTG
• Zone UGS EWE L-Gas
National cross border
points between
German market areas
International cross
border points with
neighbouring countries
• Oude Statenzijl
Production points
• EZONE-SDS
9
GUD
Nowega
• UGS Lesum
• Empelde
• Zone OGE (L)
• Ahlten (Reverse)
• Ahlten
• Oude Statenzijl L
• Zone_Produktion
• Schneeren
• Gr. Giesen HHW
Description of new zonal products
Zonal products
Description
Delivery of Natural Gas for the respective delivery period
Delivery zones
For Market Area GASPOOL
Ontras H-Gas, GuD H-Gas, GuD L-Gas, Gascade H-Gas,
GTG Nord L-Gas, Nowega L-Gas
For Market Area NetConnect Germany
NCG H Nord, NCG H Mid, NCG H South, NCG L West, NCG L East
Trading platform
Continuous trading within the trading system Trayport® ETSSM
Trading hours
Nonstop, 24/7, Monday to Sunday
Order books
New order books are merged inside one per market area
One locational order book GASPOOL (covers 6 zones)
One locational order book NCG (covers 5 zones)
Delivery periods
Within-Day, Day-Ahead, Weekend, Saturday, Sunday, Individual Days
Price ticks
EUR 0.025 per MWh with three decimal digits
Volume ticks
1 MW
Contract size
1 MW x number of delivery hours inside contract
Min. lot size
1 MW
10
Setup of zonal products in Gas Direct Screen
Dynamic setup in order books for best visibility and easy trading
Further comments:
Inside Gas Direct Screen zonal products of
one market area will become tradable in an
own order book
Only products with an active order are
shown and are executable in the order book
Products without order entry will be hidden
until order is entered as illustrated below
11
New hourly balancing products
Hourly products simplifies hourly based asset management
Supportive also for gas & power asset manager and gas shipper
Minimize costs/penalties for shipper in balancing regimes with hourly incentives
Hedging/trading of volatilities resulting from renewables (wind, solar)
Increase flexibility/profitability for gas storage management according price signals
Hourly products on VTP GASPOOL, NCG and TTF are planned for 01.03.2016
Hourly imbalances !!!
Will be penalized starting on
the 1st of October 2016, if MAM
buy and sells control energy for
the same delivery day
Penalty = Within-day flexibility
charge x Σ hourly imbalances
Hedging with hourly products
avoids any risk of imbalances
Source: NCG information event for BGM, 28.01.2015 – Within-Day obligations (WDO’s) for RLMmT
12
Description of new hourly products
Hourly products
Description
Delivery of Natural Gas for each delivery hour
Delivery zones
Virtual trading point
TTF, GPL, GPL L, NCG, NCG L
Locational points in NCG-L
Elten, Vreden
Trading platform
Continuous trading within the trading system Trayport® ETSSM
Trading hours
Nonstop, 24/7, Monday to Sunday
Order books
TTF, GPL, GPL L, NCG, NCG L, Elten and Vreden
Delivery periods
12 individual hours from the next full hour after consideration of a lead time of
3 hours
Price ticks
EUR 0.025 per MWh with three decimal digits
Volume ticks
1 MW
Contract size
1 MW x 1 delivery hours = 1 MWh
Min. lot size
1 MW
13
Trading and clearing of hourly products
Tradability and delivery of individual hours at PEGAS
 14 June | 15 June
15.00
0.00
Trading of delivery hour 6-7
for 15th of June
(tradable on 12 hours in advance)
 15 June | 16 June
3.00
4.00
6.00
7.00
Minimum lead time
ECC
1 hours
TSO/MAM
2 hours
Delivery
15.00
16.00
18.00
19.00
23.00
0.00
5.00
Delivery hour is for a time period of
12 hours in advance tradable
12 hours
Figure above illustrates the area of use for hourly products at PEGAS
Each delivery hour is for 12 hours in advance tradable, under consideration of a
lead time of 3 hours
Lead time of 3 hours, due to existing standards inside internal processing
time for (re-) nomination on VTP and physical points:
ECC: 1 hour lead time
TSO/MAM: 2 hours lead time
14
6.00
Setup of hourly products in Gas Direct Screen
Innovative setup in order book to simplify usage
Help desk : +49 341 2156-222
Local time (CET):
Wednesday 29 July 2015
10:25
Time: 10:25 a.m.
+
NCG
+
GPL
REAL TIME INFO
Day
Qty
Bid
Ask
Qty
Last
Hour+3
33
18,000
19,000
40
18,775
Hour+4
33
18,000
19,000
40
18,775
Hour+5
100
18,000
19,000
40
+
Elten
REAL TIME INFO
Qty
Bid
Ask
Qty
Last
Dir
REAL TIME INFO
Move
TQty
Qty
Bid
Ask
Qty
Last
18,775
Paid
123
18,775
18,775
Paid
123
18,775
19,000
19,000
Given
124
19,000
Given
124
19,000
Given
125
24,700
29 July
…
Hour+14
100
18,000
19,000
40
19,000
19,000
Hour+15
80
17,000
20,000
50
24,700
24,700

Further comments:
Inside Gas Direct Screen hourly products will become tradable in an own workbook
Start of delivery: next full hour + number of hours named in the product
Hour+3: 11.00 a.m. + 3.00 hours = 14:00
delivery hour from 14.00 to 15.00 hour
Hour+12: 11.00 a.m. + 12.00 hours = 23:00
delivery hour from 23.00 to 24.00 hour
15
Agenda
Balancing trading at PEGAS – Roundup
Introduction of new balancing products
How to become member in new balancing products?
16
Member readiness – legal aspects
Smooth setup of new products for existing and new PEGAS member
a. Existing member in quality-specific gas products (H-Gas, L-Gas)
New balancing products becomes automatically tradable without signing any form
ECC will use existing members balancing agreement for nomination of new
balancing products
For hourly products on locational points, ECC uses two new ECC shipper codes
b. Existing member, but new in quality-specific gas products (H-Gas, L-Gas)
Have to sign ECC form TP_PWX_01... for trading new balancing products
Once TP form is signed and approved, zonal, local & all hourly products are tradable
Precondition: Existing H-Gas or L-Gas balancing agreement with NCG or GASPOOL
c. New PEGAS member
Need of H-Gas or L-Gas balancing agreement with GPL, NCG and TSO (TTF)
Have to sign ECC form TP_PWX_01… for trading quality-specific products
Have to apply for PEGAS membership under membership@powernext.com
17
Member readiness – clearing aspects
Clearing, settlement and delivery for new balancing products
ECC will use the same nomination procedures/processes as today
Single sided nomination on behalf of the customer with established procedures
For nomination of new zonal products for GASPOOL and NCG
ECC will use already existing shipper codes of members for quality-specific gas products
Common nomination of new zonal products with existing quality-specific products by
usage of one ECC shipper code
No separation of quality-specific deals from zonal or local deals inside ECC clearing files
and ECC reports – those information are available inside PEGAS trading system and
PEGAS back office tool, accessible via web browser
Nomination of hourly products as for Within-Day trading, but reduction of delivery
period to number of traded hours
Nomination of new hourly products on the VTP’s but also Elten and Vreden – ECC will
use already existing shipper codes of members for global and low-calorific gas products
Common nomination of new hourly products on the VTP’s with existing global and
quality-specific products by usage of one ECC shipper code
Nomination of new local quality-specific hourly products at Elten and Vreden with two
extra ECC shipper codes
18
Member readiness – technical aspects
Impact for Members using direct connection to Trayport Global Vision
New products are already displayed in the existing workbook
Users will need to disconnect and reconnect once to load the new workbook
Impact for Members using Trayport Trading Gateway
All new balancing products will have to be mapped prior to launch date
(mapping file was already sent as part of a customer information)
These products are included in the Gold Mapping service provided by Trayport
Simulation for new balancing products is possible since September 15 and
instructions therefore were given in the last Customer Information
Questions – Do not hesitate to contact the PEGAS Sales team:
Phone Leipzig +49 341 2156555; Email sales@eex.com
Phone London +44 207 8627555; Email sales@eex.com
Phone Paris
+33 1 73 03 76 09; Email sales@powernext.com
19
How easy is it to trade these new products?
Contact your PEGAS
sales manager
You’re ready!
If needed, complete
ECC forms for balancing
products
TP PWX 01a
If needed, request setup
of new PEGAS trader
20
Any more questions?
More information available under www.pegas-trading.com
Delivery points for local/hourly products to
cause a physical effect in the gas grid
VTP
TTF
VTP
TTF
Vreden
Elten
22
New: Average Price of Delivery Day (APDD)
GABi Gas 2.0 and NC Balancing requires new reference price
Daily Reference Price (DRP) for GPL, NCG and TTF with 01st of October
2015 no longer valid for charging imbalances between MAM and shipper
Considers no Within-Day trades and therefore no longer suited for MAM/TSO
New Average Price of Delivery Day (APDD) covers all regulatory demands
Volume weighted average price for PEGAS trades per delivery day, considers
Hourly, Within-Day, Day-Ahead and Individual Day products traded on the VTP as long
as they refer to the same delivery day
Weekend contracts, which cascade into several delivery days and therefore affect the
respective delivery day (e.g. Saturday, Sunday but also sometimes Monday or Friday)
Multiple day products (e.g. Christmas), which cascade into several delivery days and
therefore affect the respective delivery day
Global and quality-specific gas trades done by all member (not only by GPL and NCG)
Will be calculated and published separately as:
APDD GPL, APDD NCG, APDD TTF
23
Balancing zones inside market area NCG
Source: NCG
24
Contact list
Sales team Leipzig – Support in English and German
Sales team London – Support in English
Tobias Lucht
Tobias.lucht@eex.com
+49 341 2156 215
Ling-Lyn Thakker
Ling-lyn.thakker@eex.com
+44 207 862 7554
Roman Zyuzev
Roman.zyuzev@eex.com
+49 341 2156 211
Sales team Paris – Support in English and French
Richard Katz
r.katz@powernext.com
+33 (0)1 73 03 96 02
Sophie Asseo Mouquet
s.asseo@powernext.com
+33 (0)1 73 03 76 04
Jamel Hadaoui
j.hadaoui@powernext.com
+33 (0)1 73 03 76 09
Ruben Mamou
r.mamou@powernext.com
+33 (0)1 73 03 76 06
Membership – Support in German, English and French
Alexandra Philippe
+33 (0)1 73 03 76 88
Olatz Garcia
+33 (0)1 73 03 76 70
Susanne Döbel
+33 (0)1 73 03 76 71
Adrien Calvez
+33 (0)1 73 03 76 69
Clearing – Support in German and English
ECC is available for all clearing questions. Contact details can be found on www.ecc.de
25
NCG – Delivery points locational products 1/3
H-Gas
NCG
Delivery zone
Storage points
NCG H Nord
• Friedeburg-Etzel, Bitzenlander Weg 4
• Friedeburg-Etzel, Bitzenlander Weg 2
• Friedeburg-Etzel, Bitzenlander Weg 3,
Speicher
• Friedeburg-Etzel, Schienenstrang, EGL
• Speicher Epe H
• Speicher Gronau-Epe H1
• Speicher Krummhörn
• Emlichheim - Kalle - 1 (UGS-E)
•
•
•
•
•
•
•
Epe - (UGS-A) II
Epe - (UGS-E) I
Epe - III (UGS-E)
Epe - IV (UGS-A)
Gronau - Epe - 11 (UGS-E)
Gronau - Epe - 13 (UGS-E)
Kalle (UGS-A)
National cross border • Bunder Tief
points between
• Kienbaum
German market areas • Quarnstedt
• Steinitz
• Wardenburg
• Emsbüren
International cross
border points with
neighbouring
countries
•
•
•
•
• Oude Statenzijl
• Emden EMS/ EPT
• Emden PPC/ NPT
Production points
• Engerhafe
• Leybucht
• Rull
26
Dornum
Ellund
Emden EPT
Emden NPT
• Leer - Mooräcker - 1
(700096 Nüttermoor H UGS-E)
• Leer - Mooräcker - 2
(700096 Nüttermoor H UGS-A)
• Leer - Mooräcker - 3
(700096 Jemgum I UGS-E)
• Leer - Mooräcker - 4
(700096 Jemgum I UGS-A)
• Xanten - 1 (UGS-A)
• Xanten - 1 (UGS-E)
NCG – Delivery points locational products 2/3
H-Gas
NCG
Delivery zone
Storage points
NCG H Mid
• Speicher Hähnlein
• Speicher Stockstadt
National cross border • Lampertheim I
points between
• Reckrod I
German market areas • Broichweiden Süd
International cross
border points with
neighbouring
countries
Production points
27
•
•
•
•
•
•
Bocholtz
Eynatten
Bocholtz
Eynatten-Raeren
Bocholtz - Vetschau
Lichtenbusch
NCG H South
•
•
•
•
•
Haiming 2-7F
USP Haidach
Inzenham-West USP
Wolfersberg/USP
Haiming 2 7F
•
•
•
•
•
Speicher Bierwang
Speicher Breitbrunn
Speicher Eschenfelden
Fronhofen 1
RC Speicher Fronhofen
•
•
•
•
•
•
•
•
Oberkappel
Remich
Überackern
Waidhaus
Wallbach
RC Basel
RC Lindau
RC Thayngen-Fallentor
• Gernsheim
• Lampertheim IV
•
•
•
•
•
•
•
•
Überackern 2
Überackern
Wallbach
Medelsheim
Oberkappel
Waidhaus
Kiefersfelden-Kufstein
Medelsheim
NCG – Delivery points locational products 3/3
L-Gas
NCG
Delivery zone
NCG L West
NCG L East
Storage points
• Speicher Epe L
• Speicher Gronau-Epe L1
• Speicher Gronau-Epe
National cross border
points between
German market areas
• Ahlten
• Zone GUD (L)
International cross
border points with
neighbouring
countries
Production points
28
•
•
•
•
Elten
Tegelen
Haanrade
Zevenaar
• Vreden
• Bad Bentheim, Deilmannstraße 2
• Steinbrink Produktion