France-UK-Ireland (FUI) Region
5th Stakeholder Group (SG)
26th November 2007, London
Interconnector Operator (ICO) Update
Simon McVeigh (NGIL)
Jean-Gabriel Valentin (RTE)
IFA Capacity Management System
User Interface
• The new system is proposed to be the sole commercial
interface for Users for all IFA activity, including:
– Conducting auctions
– Users’ Mid-Channel Nominations (MCNs)
– All general communications (results, ICEs, specifications,
curtailments, general queries/notices etc)
• IFA will require a single Mid-Channel Nomination
– unlike current practice of nominating identical MCNs to both TSOs
• Access to be via web-based format (secure, reliable, and
using ETSO ECAN protocols)
IFA Capacity Management System
Next Steps
•
•
•
•
Dec 07
March 08
*September 08
*October 08
Tenders invited
Contract award
Product testing
Commercial operation
*note – chosen Supplier capability will determine precise Go-Live date.
• In spring 08 a further User workshop will be held to update
Users on business process and interface issues.
IFA Capacity Management System
Project Timescales
Task
Duration
Prepare Supplier Pre-Qualification
1 week (25 - 29/6)
Arrange Regulators/ICOs meeting
to agree way forward (deferred)
4 weeks
(2 – 31/7)
Supplier Pre-Qualification
3 weeks (31/7 – 21/8)
Re-arrange Regulators/ICOs
meeting. Agree ICO response.
3 Weeks
(22/8 – 11/9)
Regulators additional request for
information and ‘go-ahead’.
4 Weeks
(12/9 – 9/10)
25 Jun 07 Plan Commencement
2 Jul 07 Plan Assumption – Regulatory ‘Go’
9 Oct 07 Actual – Regulatory ‘Go’
Prepare ITT & System Req’ments 6-8 weeks (10/10 – )
Issue ITT
-
ITT Period
5-6 weeks
Assess Tenders and Approve
6 weeks
Contract Award
-
System Delivery
21-29 weeks *
Users’ systems/interface mods.
21-29 weeks *
Industry testing
3-4 weeks
Go-Live
* Revised estimates based on
Supplier Pre-Qual responses
26 Nov
Dec 07
Mar 08
Oct 08
Plan
Progress
Plan Changes
Potential Harmonisation Aspects
• Losses
2000
2000
2700
1100
• Firmness
2400
2700
• Settlement
3000
1400
• Interconnector
Transfer Limits (ITLs)
• Use of I/C Fee
2400
870
1200
500
* Summer 2007 NTC values, as provided by RTE to ETSO
Losses
Potential Harmonisation Aspects
GB Market
Firm Connection
IFA Mid Channel
Nomination (MCN)
French Market
Firm Connection
e.g. 1976 MW
2000 MW Capacity
F2E & E2F
e.g. 2024 MW
1.17% Loss
NGIL Assets
1.17% Loss
4 x 500MW Circuits (Poles 1 – 4)
Operated as 2 pairs of 1000MW (Bipoles 1 & 2)
RTE Assets
Losses
Relevant Issues
• GB Market ≠ French Market
– GB: Market Participants responsible for losses
– Fr: RTE pass through all losses (except IFA) to consumers
• Direct Current ≠ Alternating Current
– AC: System line loss small in meshed network
– DC: System conversion losses notable
• NGET (TSO) ≠ NGIL (ICO)
– NGIL (Interconnector Licence) not permitted to trade
energy; cannot mitigate or pass through energy exposure
– NGET (Transmission Licence): to take on losses for
another BSC party is not resolving an imbalance issue in
GB Market; outside Licence
Losses
Potential Options
IFA Mid Channel
Nomination (MCN)
IFA Nomination?
F2E Only?
Both directions?
Capacity offered?
IFA Nomination?
E2F Only?
Both directions?
Capacity offered?
2000 MW Capacity
F2E & E2F
1.17% Loss
NGIL Assets
1.17% Loss
RTE Assets
Losses
Potential Options
• GB Market ≠ French Market
– Harmonise GB & French market arrangements?
• Direct Current ≠ Alternating Current
– Appropriate to consider harmonisation of IFA with other
French AC borders?
• NGET (TSO) ≠ NGIL (ICO)
– Consider varying NGIL’s Interconnector Licence /
NGET’s Transmission Licence?
• Users already factor losses into the value of IFA
capacity
– Purpose of harmonisation?
Losses
Conclusion
• No change proposed to current losses
arrangements on IFA
Firmness
Potential Harmonisation Aspects
IFA (Direct Current)
2000
2000
2700
1100
2400
2700
3000
1400
2400
870
1200
500
* Summer 2007 NTC values, as provided by RTE to ETSO
•
•
•
•
•
•
ATC = NTC = Rating
F2E = E2F Capacity
No Security Standards
No circuit redundancy
Reconcile at 100%
Force Majeure 100%
Other French AC Borders
•
•
•
•
•
•
ATC ≤ NTC < Rating
F2x ≠ x2F Capacity
Security Standards applied
Full circuit redundancy
Reconcile at 110%
Force Majeure 0%
Current Compensation Practices
ETSO Survey
N
Photo de l’Europe en juin 2006
NL
IR
B
U
K
L
L
S
DK
(W)
FI
R
COLOURS CODE
DK
(E)
110 % auction price
100 % auction price
D
Pl
No compensation
Other
compensation
CZ
F
CH
SK
A
H
No ex-ante
allocation
SL
P
E
I
MO
No curtailment / no
transmission rights
allocated
G
Compensation Force Majeure
ETSO Survey
N
Photo de l’Europe en juin 2006
NL
IR
B
U
K
L
L
S
DK
(W)
FI
R
COLOURS CODE
DK
(E)
No compensation
100 % auction price
D
Pl
No ex-ante
allocation
CZ
F
CH
SK
A
H
SL
P
E
I
MO
G
Firmness
Relevant Issues
• IFA Risk ≠ Risk on Other French AC Borders
– No European Grid Code to cover DC IFA
– UCTE Handbook covers Other French AC Borders
– Appropriate to consider harmonisation in FUI region?
• NGET (TSO) ≠ NGIL (ICO)
– Firm NGIL-NGET Connection to Firm GB Market
– NGIL (Interconnector Licence) not permitted to trade
energy; cannot mitigate or pass through energy exposure
– NGET (Transmission Licence): to take on risk for another
BSC party is not resolving an imbalance issue in GB
Market; outside Licence
Firmness
Options
• IFA Risk ≠ Risk on Other French AC Borders
– Consider harmonisation across ETSO
– Network Access & Congestion Management Task Force
• NGET (TSO) ≠ NGIL (ICO)
– Consider varying NGIL’s Interconnector Licence /
NGET’s Transmission Licence?
• Who is best placed to mitigate curtailment?
– Curtailment is typically in increments of 500MW
– Curtailment is proportioned across all User MCNs
NACM Task Force
Firmness
• Sub-group to Task Force led by E.On
• Several interconnections to be studied
– IFA, IFB, IFD, P-Cz, D-P, D-DW, B-NI, D-NI, D-CH
• Analyse curtailments for 2006 CY data
– Classified as caused by:
• Internal AC Network
• Interconnector assets
Firmness Study on Interconnectors
Draft Curtailment Data 2006
IFA Curtailment
Commentary*
30
AC Borders
25
20
Asset related maintenance/faults have not
curtailed cross-border capacity because of
Security Standards (UCTE Handbook) therefore
redundancy in interconnection capacity
Unplanned Trips/
Reductions
15
Short-Notice
Planned Outages
10
5
Annual Outages
0
B-NL D-DW D-NL D-CH
D-F
P-Cz P-SL P-VE SL-P
Interconnector
IFA
Network
* Discrete curtailment events shown (not duration)
Switching transitions 500MW / 1000MW not listed individually
Firmness
Summary
• CM Guideline
– Optimisation of firmness
– Combination of Firm & Non-Firm capacity allowed
• Medium-Term Harmonisation Potential
– ETSO NACM Task Force
• Short-Term Harmonisation Potential
– Firm & Non-Firm capacity
• Include as option for settlement functionality in CMS specification
• Consult IFA Users on combination of Firm/Non-Firm capacity
Settlement & Invoicing
Target Availability
Product
Quarter 2
(Apr-Jun)
Monthly
Products
April
May
June
Direction
Target
Availability (%)
Actual
Availability (%)
E2F
93
94.0
F2E
93
94.6
Direction
Target
Availability (%)
Actual
Availability (%)
E2F
95
94.5
F2E
95
95.0
E2F
95
98.6
F2E
95
98.5
E2F
90
89.8
F2E
90
90.2
Settlement & Invoicing
Current & Proposed
IFA Current
• Products invoiced
individually, with different
payment terms
• Products offered/invoiced
at Target Availability,
reconciled on last payment
• Considers Users’ cash flow
against IFA service delivery
• Equivalent to 100%
compensation
IFA User Proposal
• Consolidated monthly
invoices for all products,
harmonised payment terms
• Products offered at 100%
availability, reconciled
monthly for outturn
• Considers Users’ cash flow
against IFA service delivery
• Equivalent to 100%
compensation
Intraday Transfer Limits (ITLs)
Current & Proposed
IFA Current
• ITLs set after D-1
nomination
• ITLs do not impact Users’
Interconnector Entitlement
(ICE) at D-1
• ITLs can restrict Users’
ability to re-nominate
intraday if MCN < ICE
IFA Proposal
• ITLs set after D-1 nomination,
before Intraday allocation
• ITLs will not impact Users
Interconnector Entitlement
(ICE) at D-1
• CM Guideline (applying
UIoSI/ UIoLI) will ensure MCN
= ICE
• Clarification underway
regarding ITLs for intraday
capacity
Use of Interconnector Fee
SO-SO Trades
• NGET (TSO) ≠ NGIL (ICO)
– NGIL cannot subsidise NGET, or vice versa
– NGIL must levy a fee for ‘Use of Interconnector’
capability post gate closure
• Options for Fee basis
– Market-based
• Associate with retro-direction D-1/intraday auction clearing price?
• Associate with arbitrage value?
– Non-market-based
• Is there a market to participate in, post gate closure?
• Product (I/C capability) is variable by nature – how to value?
• No change proposed to current arrangements