Deliverable I.4 Balancing
-TERRE project(15th IG meeting, Paris, April 7th 2014)
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Context
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ACER’s recommendations to ENTSO-E
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Electricity Balancing Framework Guidelines (FWGL)
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Promotion of coordination between TSOs regarding cross-border balancing
mechanism as a necessary interim step towards the harmonization of the
balancing markets in Europe and the implementation of the Electricity
Balancing Network Code (NC)
ENTSO-E call of nomination for balancing pilot projects with the aim to
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Gain experience in terms of implementation of inter TSO regional balancing
mechanism
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Test the feasibility of the balancing target model identified in the FWGL
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Evaluate the associated implementation impact
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The experience gained with the pilot projects will be reflected in the future
developments of the NC
TERRE Pilot Project
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In this framework, National Grid, REN, RTE and TERNA proposed the TransEuropean Replacement Reserves Exchanges project (“TERRE Project”)
Scope of TERRE pilot project
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Scope:
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Design and test the feasibility of a multi-TSO coordinated exchange of
Replacement Reserve - Cross Border Balancing Energy
Participants
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Terna, RTE, National Grid Electricity Transmission Plc, National Grid
Interconnectors Limited, REN
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Swissgrid and REE expressed their interest to the project and could join the
project during the design phase
Project phases:
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Design phase (started in 2014) – Currently in progress
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Implementation phase (will be started between end of 2014 and beginning of
2015 – it depends on the progress of the whole aspects of the project)
TERRE design phase aims to design a solution compliant with the requirements
of:
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The ENTSO-E proposal of standard product
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The NC (1/centralized and automatic management of XB capacities, 2/in a first step, offers based on
cheapest internal bids, in a second step, all internal bids offered, 3/improved matching process)
3
Working axes
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Definition of the standard TERRE products (TERNA)
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Definition of RR offers and RR needs
Definition of matching process and settlement procedure (RTE)
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TSOs’ RR needs netting
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FCFS or Implicit Auction
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Marginal price or pay as bid
Financial issues (NGET)
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Definition of financial settlement between TSOs
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Study of the potential financial benefit
Timing and scheduling (REN)
ATC management (RTE & NGIC)
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Centralized ATC management
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Interaction between the ID market and TERRE process
Governance issues (All)
Updated status of the project – main achievements (1/2)
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MoU and NDA covering the design phase
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Signature process still in progress
Definition of the standard TERRE products
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Based on the requirements of the ENTSO-E ancillary services working group
(WG AS) in charge of the definition of Balancing Standard Products
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All TSOs expressed their proposals on the values and constraints that each
characteristic of TERRE product should respect
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TERNA is merging all the proposals in order to define a common set of
minimum requirements for TERRE products
1- Request time
2- Preparation period
Characteristics
defined by the
WG AS
3- Ramping period
1
4- Min & max bid size
5- Min & max delivery period
6- Deactivation period
5
4
2
3
5
Full
Activation
time
(from LFC-R)
Full Delivery Period
6
Updated status of the project – main achievements (2/2)
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6
Definition of matching process and settlement procedure
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A qualitative study has been initiated and is now under review by all TSOs:
both FCFS and Implicit Auction methods are compared according to criteria
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Data collection has been launched in order to assess the volumes and
characteristics of balancing offers available in each country
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The feasibility of a quantitative study is under investigation
Financial issues
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Data collection has been launched in order to assess the potential financial
benefit of TERRE
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RTE has developed a balancing simulation facility tool. This tool optimizes
(by applying balancing cost minimization) the selection and allocation of
balancing supply quantities to address a balancing demand, taking some
technical constraints into account
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RTE proposed to the TERRE project group to use this for processing
financial simulation. This point is under discussion.