Different types of electricity markets modelled using PLEXOS Integrated Energy Model The UK Balancing Market example

Size: px
Start display at page:

Download "Different types of electricity markets modelled using PLEXOS Integrated Energy Model The UK Balancing Market example"

Transcription

1 Different types of electricity markets modelled using PLEXOS Integrated Energy Model The UK Balancing Market example Peny Panagiotakopoulou, Senior Power Systems Consultant, Energy Exemplar Europe Overview of different electricity markets Electricity is a commodity that cannot be stored economically in large quantities. Therefore, generation must equal demand plus energy lost as heat when electricity is transported (transmission / grid losses) on an instantaneous basis. Otherwise the grid frequency starts deviating from its reference value, which can result in a system collapse. The design of electricity markets is adapted to deal with this particular property of electricity. Different types of electricity markets are arranged in a sequential order, starting years before the actual delivery and ending after the actual delivery. Figure 1: Temporal ordering of the different electricity markets (source: KU Leuven Energy Institute) It is the Transmission System Operator (TSO) who needs to ensure that the instantaneous demandsupply balance is maintained. Before the actual delivery, the balance responsibility is passed on to Balance Responsible Parties (BRPs). A BRP is a private legal entity that takes up the responsibility to compose a balanced portfolio. Forward and Future Market The Forward & Future Markets operate from a year or more ahead down until the market closes at a time defined as Gate Closure when the System Operator takes on the role of residual balancer. Forwards and futures are contracts for firm delivery of electricity at a certain time in the future for a price agreed upon today. Futures are standardized contracts that can be further traded on power exchanges. Forwards are mainly traded bilaterally over-the-counter and are not standardized, giving more flexibility to the involved parties, and they are usually not further traded. 1 P a g e

2 Day Ahead Market The Day-Ahead Energy Market (DAM) is a financial market where market participants purchase and sell energy at financially binding day-ahead prices for the following day. The DAM market is usually based on the bid (Buy) and offer (Sell) data submitted to the DAM by the market participants. Day-Ahead markets provide a forward market to hedge against the spot price volatility. The buyers and sellers can be large energy users (buyers), distribution retailers/utilities (buyers), power plant owners (sellers), or financial traders (buyers and sellers). Day-Ahead markets are generally used in conjunction with real-time (spot) markets to balance how market participants deviate from their dayahead energy positions. In the UK electricity is mostly traded through exchanges (APX and N2EX) to match offers and bids of participants. APX Power UK (established in 2000) offers a market place for integrated trading, clearing and notification for spot and prompt power contracts and a trading platform for cleared forwards contracts. Intra Day Market In the Intra-Day Market, electricity is traded on the delivery day itself. The intra-day market enables market participants to optimise their position and correct their day-ahead nominations due to better wind forecasts, unexpected power plant outages, etc. The GB Balancing Market In the GB Wholesale electricity market, organisations that require electricity for their customers (Suppliers), enter into contracts with organisations that produce electricity (Generators), sometimes through intermediaries called Non Physical Traders. These types of organisations are called BSC Parties. A BSC Party is any company that has signed the Balancing and Settlement Code Framework Agreement. This includes all licensed electricity companies in Great Britain who are required by their license obligations to sign the BSC. Suppliers will calculate the estimated electricity requirements for their portfolio of customers for each Settlement Period, and they will then enter into contracts with generators in order that their customers receive the correct quantity of electricity for each Settlement Period. This forms Forward bilateral contracts & power exchange markets for firm delivery of electricity, which operate from a year or more ahead down until the market closes at a time defined as Gate Closure when the System Operator takes on the role of residual balancer. Due to the fact that electricity cannot be stored, generation must always equal demand plus energy lost in the form of transmission losses. But, there are several challenges in achieving this, since the contracts between generators and suppliers do not always completely balance the Transmission System (i.e. suppliers may not always accurately predict demand; generators may not always be able to tightly control their generation - intermittent generation or plant tripping off the transmission system; problems may arise with transmission lines; the market trades in half hour Settlement Periods, but the Transmission System must balance at every instant). Where the Transmission System is not balanced it is called Imbalance. The transmission system should be always balanced, a job that is known as system operation, and is managed by the System Operator (SO), National Grid in the UK. In order to balance the Transmission System, the SO needs to know what generators intend to generate and what suppliers intend to consume for each Settlement Period. The SO needs this information before the start of the Settlement Period so that it can understand the Transmission 2 P a g e

3 System imbalance, plan how to balance it and take balancing actions. Therefore, generators and suppliers submit Physical Notifications (PNs) for each Balancing Mechanism Unit (BMU) to the SO for each Settlement Period. 1 hour before each Settlement Period the PNs of Parties are frozen. This is called Gate Closure. At this point the PNs become Final Physical Notifications (FPNs). After Gate Closure, Parties must try to adhere to the FPNs submitted to the SO. They should only deviate from their FPN at the instruction of the SO. Following Gate Closure, the SO is able to evaluate the net imbalance of the Transmission System; also called the Transmission System length. A Long' Transmission System is the one where there is more generation than demand, whereas a Short' Transmission System is the one where there is more demand than generation. Parties submit notices, called Bids and Offers, telling the SO how much it would cost for them to deviate from their Final Physical Notification. The SO assesses all the Bids and Offers for each Settlement Period and chooses the ones that best satisfy the balancing requirements of the Transmission System. The SO is trying to balance the Transmission System as efficiently as possible. So ideally the SO would choose the cheapest balancing action, one after the other. Nevertheless, this is not always possible since the SO should also consider any technical limitations of the Power Station (ability to increase or decrease generation/demand quickly enough to meet the requirement), and any technical limitations of the Transmission System (ability of the generation/demand to be transmitted to the part of the Transmission System where it is needed). Balancing Markets modelled in PLEXOS In a Balancing Market in PLEXOS, generators define their dispatch level from a day-ahead market using the properties Generator Offer Base/ Price. The goal of the balancing process is then to select optimal increments ( incr ) and decrements ( decr ) around these day-ahead positions to meet deviations in the real-time load. The input pairs Generator [Offer Quantity] and [Offer Price] are used to define the incr and decr offers. Positive quantities are interpreted as offers to increment the generator's dispatch above the base quantity, while negative quantities are interpreted as offers to decrement the generator's dispatch. The impact on the system is the product of the incr / decr and the offer price, thus an incr with a positive price increases cost accordingly and a decr with a positive offer price, decreases system cost. PLEXOS Methodology Balancing Market modelling in PLEXOS is usually undertaken in two stages. At Stage 1 the Day-ahead market is modelled using hourly time intervals, while the results for generation, un-dispatched capacity, available capacity, SRMC, etc. of the generating units are saved in Data Files. Stage 2 then follows, which is considering the Real-time market, and uses finer resolution, i.e. time intervals of 30 or 15mins. In addition, the previously saved results of Stage 1, as well as a new forecast of demand and/ or renewables are used by PLEXOS, in order to optimise the balancing of units. The solution of stage 1 model (i.e. Base DA in this case study) can act as input for the subsequent stage 2 model. The data are passed between simulations simply be enabling the option to Write Flat Files in the Report object. In the Day-ahead model the user can select all the outputs that will act as inputs to the Real-time 3 P a g e

4 model to be written in flat files, and these will then be written into a folder structure. These files can then be referenced in order to be used as inputs for the subsequent stage 2 model (i.e. Base RT in this case study). Figure 2: Data File objects used in the PLEXOS RT model The Day-ahead GB market model can be defined in PLEXOS as a common unit commitment and economic dispatch problem, where the objective function would be to minimize the total system cost in order to find the optimal on/ off decisions for the generating plants. Therefore, the Generator objects that participate in the GB market, are modelled using parameters such as their Max Capacity, Min stable level, Heat Rate, Fuel prices, VO&M Charge, FO&M Charge, Run Up/ Down rates, as well as random outages and maintenance events. Other system constraints (i.e. fuel or emission limits) as well as reserve requirements can be taken into account. For the Real -time GB market model (or the Balancing model) the Generator input properties are slightly modified, so as to consider the dispatch level from the Day-ahead market and create a bidding strategy around these day ahead positions in order to meet deviations in the Real-time demand and/ or changes in the renewables forecast. Figure 3: Generator properties used in the PLEXOS RT model The Day-ahead and Real-time models can then be run in batch mode: once the stage 1 model completes, the selected results will be passed as inputs to the stage 2 model. A potential inaccuracy though with the sequential setup is that the day-ahead decisions do not reflect the outcome of the real-time in that the initial conditions for generation and storage (in particular) for 4 P a g e

5 each day of the "day-ahead" model are based on the previous day-ahead solution not those from the real-time. PLEXOS deals with this issue through a more sophisticated way to link the solutions from one model to another. The Interleaved run mode addresses this by running both "DA" and "RT" Models interleaved, with initial conditions being passed back automatically from "RT" to "DA". Figure 4: PLEXOS Interleaved run mode The Day-ahead model can pass unit commitment and any other required information to the Real-time model so as to cover the first day of the simulation. Once the Real-time model has completed the first day it will pass initial conditions for Generator and Storage objects back to the Day-ahead model. The resolution of the models does not need to be the same e.g. Day-ahead model might run with hourly resolution, whereas Real-time model might be at a 30-minute resolution. PLEXOS Results For the purpose of this study the GB market model, defined with all GB generators capacities, fuel prices and GB demand for 2013, was used in order to setup the DA model. For simplicity purposes in this example, the Wind generators profile was kept the same between the day-ahead and real-time models. However, a deviation between the day-ahead (DA) demand and realtime (RT) demand was used. So, the GB Load 2013 data were used in order to form the DA demand scenario, whereas the RT demand scenario was formulated using samples created from these data acting as an expected profile with an error standard deviation of 5% (Figure 5). Figure 5: GB Load 2013, DA vs RT markets 5 P a g e

6 The Interleaved Collection is used in order to link the DA and RT models (Figure 6). Multi-level interleaved runs, of 3+ models, are also possible with PLEXOS. The user can setup for example 3 models to run in interleaved mode by linking the Day-ahead (DA) with Intra-day (ID), and Intra-day with Real-time (RT) models accordingly. The DA run will request the initial conditions from ID, but that will then request the information from RT, and therefore the data is essentially passed down, all the way from RT to DA. Figure 6: Models Setup in Interleaved Mode Real-time market clearing prices, also known as balancing energy prices, represent energy prices that reflect deviations of forecasted versus actual load and generation. By their nature, real-time prices are generally much more volatile than day-ahead prices. Typically, wind influenced negative prices are reported based on Real-time market outcomes. However, Real-time power prices can impact both Day-ahead clearing prices and bilateral power purchase agreements, as they can influence pricing expectations for contract negotiations. Figure 7: GB Daily Prices, DA vs RT markets run in Interleaved Mode (2013) 6 P a g e

7 Running the models in batch mode; where the DA model is followed by the RT model, results in a Cost to Load value for the RT model, higher than the one received when in Interleaved Mode. Parent Name Collection Child Name Category Datetime RT Batch RT Interleaved Cost to Load ($000) Cost to Load ($000) System Region GB - 01/01/ System Region GB - 01/02/ System Region GB - 01/03/ System Region GB - 01/04/ System Region GB - 01/05/ System Region GB - 01/06/ System Region GB - 01/07/ System Region GB - 01/08/ System Region GB - 01/09/ System Region GB - 01/10/ System Region GB - 01/11/ System Region GB - 01/12/ Sum Figure 8: RT GB Monthly Cost to Load, Batch vs Interleaved Mode (2013) The Region Cleared Offered Cost would represent the cost of Generation as seen by the Market Operator, and is calculated as: Cleared Offer Cost = ( b ) ( Offer Price b Offer Cleared b ) + Offer No Load Cost Units Generating Figure 9: GB Cleared Offer Cost (half-hourly results) 7 P a g e

Convergence Bidding Tutorial & Panel Discussion

Convergence Bidding Tutorial & Panel Discussion Convergence Bidding Tutorial & Panel Discussion CAISO June 13, 2006 Joe Bowring PJM Market Monitor www.pjm.com Convergence Basics Day-Ahead Market basics Day-Ahead and Real-Time Market interactions Increment

More information

Two Settlement - Virtual Bidding and Transactions

Two Settlement - Virtual Bidding and Transactions Two Settlement - Virtual Bidding and Transactions (Fall 2009) PJM 2009 2009 PJM 1 Agenda Two-Settlement Overview Two-Settlement Features & System Two-Settlement Business Rules Two-Settlement Data Requirements

More information

Suppliers to buy electricity to meet the demands of their customers from the generator(s) of their choice; and

Suppliers to buy electricity to meet the demands of their customers from the generator(s) of their choice; and The Beginner s Guide Have you ever asked yourself one, or all, of the following? How is electricity traded? What s Imbalance Settlement? What are Bids and Offers? How do Generators and Suppliers fit into

More information

A new electricity market for Northern Ireland and Ireland from 2016 - Integrated Single Electricity Market (I-SEM)

A new electricity market for Northern Ireland and Ireland from 2016 - Integrated Single Electricity Market (I-SEM) A new electricity market for Northern Ireland and Ireland from 2016 - Integrated Single Electricity Market (I-SEM) Non-technical summary High level design Draft Decision Paper SEM -14-047 June 2014 1 INTRODUCTION

More information

THE STRUCTURE OF AN ELECTRICITY MARKET

THE STRUCTURE OF AN ELECTRICITY MARKET THE STRUCTURE OF AN ELECTRICITY MARKET Lectures 1-2 in EG2200 Power Generation Operation and Planning Mikael Amelin 1 COURSE OBJECTIVE To pass the course, the students should show that they are able to

More information

Where more information on a topic is available, we ve added links to documents that can provide more details.

Where more information on a topic is available, we ve added links to documents that can provide more details. Guidance The Electricity Trading Arrangements A Beginner s Guide Have you ever asked yourself one, or all, of the following? How is electricity traded? What s Imbalance Settlement? What are Bids and Offers?

More information

Managing Risks and Optimising an Energy Portfolio with PLEXOS

Managing Risks and Optimising an Energy Portfolio with PLEXOS Managing Risks and Optimising an Energy Portfolio with PLEXOS Tom Forrest, B.Com. (Hons) Senior Power Market Consultant - Europe 1 Introduction Energy markets inherently exhibit far greater risk compared

More information

CAPACITY MECHANISMS IN EU POWER MARKETS

CAPACITY MECHANISMS IN EU POWER MARKETS CAPACITY MECHANISMS IN EU POWER MARKETS Can we progress to bilateral energy options? Simon Bradbury Ultimately, European renewable targets mean that prices and dispatch patterns will be dictated by wind

More information

The Power Market: E-Commerce for All Electricity Products By Edward G. Cazalet, Ph.D., and Ralph D. Samuelson, Ph.D.

The Power Market: E-Commerce for All Electricity Products By Edward G. Cazalet, Ph.D., and Ralph D. Samuelson, Ph.D. The Power Market: E-Commerce for All Electricity Products By Edward G. Cazalet, Ph.D., and Ralph D. Samuelson, Ph.D. Why not use the Web to buy and sell transmission rights at prices derived from bids

More information

An Introduction to Variable-Energy-Resource Integration Analysis Energy Exemplar October 2011

An Introduction to Variable-Energy-Resource Integration Analysis Energy Exemplar October 2011 An Introduction to Variable-Energy-Resource Integration Analysis Energy Exemplar October 2011 1. Introduction Increased Renewable Portfolio Standards (RPS) are being enacted at the state, provincial, and

More information

Enabling 24/7 Automated Demand Response and the Smart Grid using Dynamic Forward Price Offers

Enabling 24/7 Automated Demand Response and the Smart Grid using Dynamic Forward Price Offers Enabling 24/7 Automated Demand Response and the Smart Grid using Dynamic Forward Price Offers Presented to ISO/RTO Council by Edward G. Cazalet, PhD The Cazalet Group ed@cazalet.com www.cazalet.com 650-949-0560

More information

FACT SHEET. NEM fast facts:

FACT SHEET. NEM fast facts: (NEM) operates on one of the world s longest interconnected power systems, stretching from Port Douglas in Queensland to Port Lincoln in South Australia and across the Bass Strait to Tasmania a distance

More information

ESB NATIONAL GRID RESPONSE TO CER/03/266 INTERCONNECTOR TRADING PRINCIPLES IN THE MAE

ESB NATIONAL GRID RESPONSE TO CER/03/266 INTERCONNECTOR TRADING PRINCIPLES IN THE MAE ESB NATIONAL GRID RESPONSE TO CER/03/266 INTERCONNECTOR TRADING PRINCIPLES IN THE MAE ESB NATIONAL GRID PAGE 1 EXECUTIVE SUMMARY There are a number of considerations to be made in relation to interconnector

More information

ANCILLARY SERVICES. A Paper for PPC. Establishment Organisation and Pilot Operation of the HTSO. 21 September 2000

ANCILLARY SERVICES. A Paper for PPC. Establishment Organisation and Pilot Operation of the HTSO. 21 September 2000 ANCILLARY SERVICES A Paper for PPC Establishment Organisation and Pilot Operation of the HTSO 21 September 2000 TABLE OF CONTENTS 1. INTRODUCTION 1 2. SYSTEM TRADING ARRANGEMENTS 2 3. OPTIONS FOR PROCUREMENT

More information

Power Generation Industry Economic Dispatch Optimization (EDO)

Power Generation Industry Economic Dispatch Optimization (EDO) An Industry White Paper Executive Summary The power industry faces an unprecedented challenge. At a time of unstable fuel costs, historic environmental challenges, and industry structural changes, the

More information

ABOUT ELECTRICITY MARKETS. Power Markets and Trade in South Asia: Opportunities for Nepal

ABOUT ELECTRICITY MARKETS. Power Markets and Trade in South Asia: Opportunities for Nepal ABOUT ELECTRICITY MARKETS Power Markets and Trade in South Asia: Opportunities for Nepal February 14-15, 2011 Models can be classified based on different structural characteristics. Model 1 Model 2 Model

More information

Introduction to the Integrated Marketplace

Introduction to the Integrated Marketplace The information, practices, processes and procedures outlined and contained in this publication are the intellectual property of Southwest Power Pool, Inc. and are protected by law. This publication or

More information

Western Australia and the Northern Territory are not connected to the NEM, primarily due to the distance between networks.

Western Australia and the Northern Territory are not connected to the NEM, primarily due to the distance between networks. Australia has one of the world s longest alternating current (AC) systems, stretching from Port Douglas in Queensland to Port Lincoln in South Australia and across the Bass Strait to Tasmania a distance

More information

Version 2.0. 7 October 2013 SEM-13-067

Version 2.0. 7 October 2013 SEM-13-067 TRADING & SETTLEMENT CODE HELICOPTER GUIDE TRADING & SETTLEMENT CODE HELICOPTER GUIDE Version 2.0 7 October 2013 SEM-13-067 TABLE OF CONTENTS 1. INTRODUCTION 1 1.1 Purpose 1 1.2 Disclaimer 1 1.3 The TSC

More information

Multi-Faceted Solution for Managing Flexibility with High Penetration of Renewable Resources

Multi-Faceted Solution for Managing Flexibility with High Penetration of Renewable Resources Multi-Faceted Solution for Managing Flexibility with High Penetration of Renewable Resources FERC Technical Conference Increasing RT & DA Market Efficiency Through Improved Software June 24 26, 2013 Nivad

More information

Power Trading and Retail System. empowering. smarter trading. across the energy value chain. Smart energy. Powering progress

Power Trading and Retail System. empowering. smarter trading. across the energy value chain. Smart energy. Powering progress Power Trading and Retail System empowering smarter trading across the energy value chain Smart energy. Powering progress In today s turbulent and increasingly complex energy markets, Atos Worldgrid PTRS

More information

Ancillary Services and Flexible Generation

Ancillary Services and Flexible Generation Ancillary Services and Flexible Generation Contents Ancillary Services Overview Types of Ancillary Services Market Impact Benefits of Medium Speed Solution Contact Information What are Ancillary Services?

More information

Forward Risk-Hedging Products PC_2012_E_13

Forward Risk-Hedging Products PC_2012_E_13 Answer to public consultation Petteri Haveri 26.10.2012 1(5) Agency for the cooperation of energy regulators consultation2012r08@acer.europa.eu Forward Risk-Hedging Products PC_2012_E_13 The Finnish Energy

More information

How To Settle Day Ahead Energy, Loss, And Loss For A Day Ahead Market

How To Settle Day Ahead Energy, Loss, And Loss For A Day Ahead Market Settling the Day-Ahead Market Charge Codes included in this training: 6011, 6800, 6700, 6301. EXTERNAL Customer Services Page 1 of 45 Disclaimer All information contained in this document is provided for

More information

The Liberalized Electricity Market

The Liberalized Electricity Market 1. The market When the electricity market is liberalized, electricity becomes a commodity like, for instance, grain or oil. At the outset, there is as in all other markets a wholesale market and a retail

More information

A market design to support climate policy

A market design to support climate policy A market design to support climate policy Karsten Neuhoff, karsten.neuhoff@cpiberlin.org David Newbery, Christian von Hirschhausen, Benjamin Hobbs, Christoph Weber, Janusz Bialek, Frieder Borggrefe, Julian

More information

Role of Power Traders in enhancing market dynamics

Role of Power Traders in enhancing market dynamics Role of Power Traders in enhancing market dynamics Date: 08 th March 2011 Sunil Agrawal (Head GMR Energy Trading) & Tanmay Pramanik (Assoc. Mgr GMR Energy Trading) Evolution of Power Trading business Internationally

More information

SMART GRIDS PLUS INITIATIVE

SMART GRIDS PLUS INITIATIVE Demand Response for residential customers -business opportunity for utilities ERA-NET SMART GRIDS PLUS INITIATIVE Sami Sailo, There Corporation Energy markets in Finland Supplier A Supplier B Settlement

More information

PI.'s"'1-SlttlllIl. bstili

PI.'s'1-SlttlllIl. bstili PI.'s"'1-SlttlllIl. bstili Market Implementation linda J. Clarke Strategist PJM Market Design y Supports many options for energy traders. balanced bilateral transactions (Le. scheduling coordinator) with

More information

Mark Pearce National Grid Interconnectors Business National Grid House Warwick Technology Park Gallows Hill Warwick CV34 6DA 23 June 2006

Mark Pearce National Grid Interconnectors Business National Grid House Warwick Technology Park Gallows Hill Warwick CV34 6DA 23 June 2006 Mark Pearce National Grid Interconnectors Business National Grid House Warwick Technology Park Gallows Hill Warwick CV34 6DA 23 June 2006 Dear Mark, Re: Proposal for the implementation of revised use it

More information

Electricity Terminology. Simplifying energy management

Electricity Terminology. Simplifying energy management Simplifying energy management AMR Automated Meter Reading - automatic collection of data from meters which is transferred to a central database for billing and/or analysis. Balancing Mechanism The mechanism

More information

The Materials Contained Are Property of GP Renewables & Trading, LLC and are considered proprietary. This is not for distribution.

The Materials Contained Are Property of GP Renewables & Trading, LLC and are considered proprietary. This is not for distribution. The Materials Contained Are Property of GP Renewables & Trading, LLC and are considered proprietary. This is not for distribution. 1 Wholesale Power 101 Maximizing Asset Value & Minimizing Risk 2 Facts

More information

Measuring Unilateral Market Power in Wholesale Electricity Markets: The California Market, 1998 2000

Measuring Unilateral Market Power in Wholesale Electricity Markets: The California Market, 1998 2000 Measuring Unilateral Market Power in Wholesale Electricity Markets: The California Market, 1998 2000 By FRANK A. WOLAK* * Department of Economics, Stanford University, Stanford, CA 94305-6072, and NBER

More information

FI/RU electricity exchange area setup

FI/RU electricity exchange area setup FI/RU electricity exchange area setup Daily routines at Nord Pool Spot Time (CET) Action 9:30 Transmission capacities published on NPS web Daily at 9:30 CET the relevant TSOs submit the available transmission

More information

How To Read The Unitholders Of The Kukon Island Power Station

How To Read The Unitholders Of The Kukon Island Power Station E.ON s UK Consolidated Segmental Report for the year ended 31 December 2012 Introduction In accordance with the Electricity Generation Licence Condition 16 - Financial Information Reporting, and the Electricity

More information

ECCO International, Inc. 268 Bush Street, Suite 3633 San Francisco, CA 94104

ECCO International, Inc. 268 Bush Street, Suite 3633 San Francisco, CA 94104 PROMAX SHORT-TERM ENERGY & TRANSMISSION MARKET SIMULATION SOFTWARE PACKAGE ECCO International, Inc. 268 Bush Street, Suite 3633 San Francisco, CA 94104 ECCO International, Inc. Copyright 2009 EXECUTIVE

More information

USBR PLEXOS Demo November 8, 2012

USBR PLEXOS Demo November 8, 2012 PLEXOS for Power Systems Electricity Market Simulation USBR PLEXOS Demo November 8, 2012 Who We Are PLEXOS Solutions is founded in 2005 Acquired by Energy Exemplar in 2011 Goal People To solve the challenge

More information

TRADING PLATFORM CLEARING AND SETTLEMENT MEMBERSHIP

TRADING PLATFORM CLEARING AND SETTLEMENT MEMBERSHIP TRADING PLATFORM CLEARING AND SETTLEMENT MEMBERSHIP TRADING PLATFORM Wilhelm Söderström, Nord Pool Spot Ante Mikulić, CROPEX European day ahead market A fair and transparent calculation of dayahead power

More information

Introduction to Ontario's Physical Markets

Introduction to Ontario's Physical Markets Introduction to Ontario's Physical Markets Introduction to Ontario s Physical Markets AN IESO MARKETPLACE TRAINING PUBLICATION This document has been prepared to assist in the IESO training of market

More information

CALIFORNIA ISO. Pre-dispatch and Scheduling of RMR Energy in the Day Ahead Market

CALIFORNIA ISO. Pre-dispatch and Scheduling of RMR Energy in the Day Ahead Market CALIFORNIA ISO Pre-dispatch and Scheduling of RMR Energy in the Day Ahead Market Prepared by the Department of Market Analysis California Independent System Operator September 1999 Table of Contents Executive

More information

CHAPTER 1 INTRODUCTION

CHAPTER 1 INTRODUCTION CHAPTER 1 INTRODUCTION Power systems form the largest man made complex system. It basically consists of generating sources, transmission network and distribution centers. Secure and economic operation

More information

Regional intraday trade model for the Central West region

Regional intraday trade model for the Central West region ERI CWE Regional intraday trade model for the Central West region Regulators Position 1 /6 Regulators have come to a common position on the way to introduce a regional intraday trading system in the CWE-region.

More information

The Impact of Wind Power on Day-ahead Electricity Prices in the Netherlands

The Impact of Wind Power on Day-ahead Electricity Prices in the Netherlands The Impact of Wind Power on Day-ahead Electricity Prices in the Netherlands Frans Nieuwenhout #1, Arno Brand #2 # Energy research Centre of the Netherlands Westerduinweg 3, Petten, the Netherlands 1 nieuwenhout@ecn.nl

More information

ERCOT Monthly Operational Overview (March 2014) ERCOT Public April 15, 2014

ERCOT Monthly Operational Overview (March 2014) ERCOT Public April 15, 2014 ERCOT Monthly Operational Overview (March 2014) ERCOT Public April 15, 2014 Grid Operations & Planning Summary March 2014 Operations The peak demand of 54,549 MW on March 3 rd was greater than the mid-term

More information

Techno-Economics of Distributed Generation and Storage of Solar Hydrogen

Techno-Economics of Distributed Generation and Storage of Solar Hydrogen Techno-Economics of Distributed Generation and Storage of Solar Hydrogen Philipp Grünewald, Tim Cockerill, Marcello Contestabile, Imperial College London, UK Abstract For hydrogen to become a truly sustainable

More information

A report to the Commission for Energy Regulation and the Utility Regulator. February 2011 DAY-AHEAD MARKET COUPLING OPTIONS FOR THE SEM

A report to the Commission for Energy Regulation and the Utility Regulator. February 2011 DAY-AHEAD MARKET COUPLING OPTIONS FOR THE SEM DAY-AHEAD MARKET COUPLING OPTIONS FOR THE SEM A report to the Commission for Energy Regulation and the Utility Regulator DAY-AHEAD MARKET COUPLING OPTIONS FOR THE SEM Contact details Name Email Telephone

More information

Overview of the IESO-Administered Markets. IESO Training. Updated: January, 2014. Public

Overview of the IESO-Administered Markets. IESO Training. Updated: January, 2014. Public Overview of the IESO-Administered Markets IESO Training Updated: January, 2014 Public Overview of the IESO-Administered Markets AN IESO TRAINING PUBLICATION This guide has been prepared to assist in the

More information

Reliability Options in Ireland and Northern Ireland Obligations and Penalties

Reliability Options in Ireland and Northern Ireland Obligations and Penalties Reliability Options in Ireland and Northern Ireland Obligations and Penalties European Commission Technical Working Group on Energy: Subgroup on generation adequacy 14 April, Brussels Background Single

More information

Methodology for Merit Order Dispatch. Version 1.0

Methodology for Merit Order Dispatch. Version 1.0 Methodology for Merit Order Dispatch Version 1.0 25 th April 2011 TABLE OF CONTENTS 1. OBJECTIVES... 1 2. ROADMAP FOR IMPLEMENTATION... 1 3. DEFINITIONS... 3 4. OPERATIONS PLANNING... 3 4.1. General Considerations...

More information

Electricity Balancing Services

Electricity Balancing Services Briefing for the House of Commons Energy and Climate Change Select Committee Electricity Balancing Services MAY 2014 Our vision is to help the nation spend wisely. Our public audit perspective helps Parliament

More information

N2EX Product overview. Day Ahead Auction Spot Market. Issued by Nord Pool Spot AS - 24/02/2015

N2EX Product overview. Day Ahead Auction Spot Market. Issued by Nord Pool Spot AS - 24/02/2015 Issued by Nord Pool Spot AS - 24/02/2015 N2EX Product overview Day Ahead Auction Spot Market Nord Pool Spot AS Tel +47 6710 9100 Fax +47 6710 9101 PO Box 121, NO-1325 Lysaker, Norway Org nr. NO 984 058

More information

UNIT COMMITMENT AND ECONOMIC DISPATCH SOFTWARE TO OPTIMISE THE SHORT-TERM SCHEDULING OF ELECTRICAL POWER GENERATION

UNIT COMMITMENT AND ECONOMIC DISPATCH SOFTWARE TO OPTIMISE THE SHORT-TERM SCHEDULING OF ELECTRICAL POWER GENERATION UNIT COMMITMENT AND ECONOMIC DISPATCH SOFTWARE TO OPTIMISE THE SHORT-TERM SCHEDULING OF ELECTRICAL POWER GENERATION INTRODUCTION Electricity generating companies and power systems have the problem of deciding

More information

NERA Analysis of Energy Supplier Margins

NERA Analysis of Energy Supplier Margins 7 December 2009 NERA Analysis of Energy Supplier Margins By Graham Shuttleworth Even though wholesale energy prices have fallen recently, gas and electricity suppliers are earning very little margin on

More information

Generator Optional. Timeline including the next steps. A practical example. Potential benefits of OFA? Key implications. How might OFA work?

Generator Optional. Timeline including the next steps. A practical example. Potential benefits of OFA? Key implications. How might OFA work? Generator Optional Firm Access Rights Australian Energy Market Commission announces terms of reference for detailed design work On the 6 March 2014, the Australian Energy Market Commission (AEMC) released

More information

Table of Contents. Real-Time Reliability Must Run Unit Commitment and Dispatch (Formerly G-203) Operating Procedure

Table of Contents. Real-Time Reliability Must Run Unit Commitment and Dispatch (Formerly G-203) Operating Procedure No. 2310 Table of Contents Purpose... 2 1. Responsibilities... 2 2. Scope/Applicability... 2 2.1 Background... 2 2.2 Scope / Applicability... 2 3. Detail... 3 3.1 Energy Dispatching... 3 3.1.2 Real-Time

More information

BUSINESS RULES FOR CHAPTER VII DAILY IMBALANCE CHARGES

BUSINESS RULES FOR CHAPTER VII DAILY IMBALANCE CHARGES BUSINESS RULES FOR CHAPTER VII DAILY IMBALANCE CHARGES 1. General 1.1. The TSO shall publish its imbalance charge methodology and update it accordingly as any changes are made. This methodology must contain:

More information

Technical Overview N2EX

Technical Overview N2EX 25.09.2014 Espen Døvle Technical Overview N2EX Nord Pool Spot AS Tel +47 6710 9100 Fax +47 6710 9101 PO Box 121, NO-1325 Lysaker, Norway Org nr. NO 984 058 098 MVA norway@npspot.com www.nordpoolspot.com

More information

Making CfDs work for renewable generators

Making CfDs work for renewable generators Making CfDs work for renewable generators This is in two parts. 1 st a brief introduction to the Green Power Auction Market. 2 nd gives more detail on the structure and follows on. We consider this a critical

More information

2013 Ventyx, an ABB company

2013 Ventyx, an ABB company Co-optimization of Congestion Revenue Rights in ERCOT Day-Ahead Market Chien-Ning Yu, Vladimir Brandwajn, Show Chang ABB/Ventyx Sainath M. Moorty ERCOT FERC Conference on increasing real-time and day-ahead

More information

The Nordic Electricity Exchange and The Nordic Model for a Liberalized Electricity Market

The Nordic Electricity Exchange and The Nordic Model for a Liberalized Electricity Market The Nordic Electricity Exchange and The Nordic Model for a Liberalized Electricity Market 1 The market When the electricity market is liberalized, electricity becomes a commodity like, for instance, grain

More information

Presentation for The National Commission for Energy State Regulation of Ukraine

Presentation for The National Commission for Energy State Regulation of Ukraine Presentation for The National Commission for Energy State Regulation of Ukraine Todd Keech Laura Walter PJM Interconnection June 17, 2014 What is PJM? 1 What is PJM? ISO RTO Map Part of Eastern Interconnection

More information

Nordic Imbalance Settlement Model

Nordic Imbalance Settlement Model Nordic Imbalance Settlement Model Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication

More information

Market reference prices

Market reference prices Market reference prices CfD Expert Group workshop 27 September 2013 Agenda Introduction / aims of the session Quick overview (10.00 11.30) Setting the intermittent reference price Setting the baseload

More information

Hydro Cascade & Storage Optimisation utilising PLEXOS

Hydro Cascade & Storage Optimisation utilising PLEXOS Hydro Cascade & Storage Optimisation utilising PLEXOS 2 nd Annual Electricity Price Modelling and Forecasting Forum Tom Forrest Senior Power Market Consultant Energy Exemplar - Europe Contents Overview

More information

TRADING APPENDIX 1. Trading Appendix 1. Definitions. Nord Pool Spot Market. Issued by Nord Pool Spot AS COPYRIGHT NORD POOL SPOT AS 1(11)

TRADING APPENDIX 1. Trading Appendix 1. Definitions. Nord Pool Spot Market. Issued by Nord Pool Spot AS COPYRIGHT NORD POOL SPOT AS 1(11) Trading Appendix 1 Definitions Nord Pool Spot Market Issued by Nord Pool Spot AS COPYRIGHT NORD POOL SPOT AS 1(11) Version 1 Effective from: NWE/PCR go-live 2014 DEFINITIONS This document sets out the

More information

An Agent-Based Computational Laboratory for Wholesale Power Market Design

An Agent-Based Computational Laboratory for Wholesale Power Market Design An Agent-Based Computational Laboratory for Wholesale Power Market Design Project Director: Leigh Tesfatsion (Professor of Econ & Math, ISU) Research Associate: Junjie Sun (Fin. Econ, OCC, U.S. Treasury,

More information

Winter Impacts of Energy Efficiency In New England

Winter Impacts of Energy Efficiency In New England Winter Impacts of Energy Efficiency In New England April 2015 Investments in electric efficiency since 2000 reduced electric demand in New England by over 2 gigawatts. 1 These savings provide significant

More information

An Overview of the Midwest ISO Market Design. Michael Robinson 31 March 2009

An Overview of the Midwest ISO Market Design. Michael Robinson 31 March 2009 An Overview of the Midwest ISO Market Design Michael Robinson 31 March 2009 The Role of RTOs Monitor flow of power over the grid Schedule transmission service Perform transmission security analysis for

More information

Market Rules Notice - Market Specification for Spot Power Market. Issue Date: 20 January 2015. Effective Date: 03 February 2015

Market Rules Notice - Market Specification for Spot Power Market. Issue Date: 20 January 2015. Effective Date: 03 February 2015 Market Rules Notice - Market Specification for Spot Power Market Issue Date: 20 January 2015 Effective Date: 03 February 2015 This notice is issued by APX as a Market Rules Notice pursuant to paragraph

More information

Implementation Date: 5 working days after Authority Decision. Background to the modification proposal

Implementation Date: 5 working days after Authority Decision. Background to the modification proposal Promoting choice and value for all gas and electricity customers Modification proposal: Balancing and Settlement Code (BSC) P236: Compensation Claims for MVRN Parties arising from an Outage Decision: The

More information

Consultation on Forward Risk-Hedging Products and Harmonisation of Long-Term Capacity Allocation Rules

Consultation on Forward Risk-Hedging Products and Harmonisation of Long-Term Capacity Allocation Rules Deres referanse Vår referanse Dato PC_2012_E_13 N 26.10.2012 ACER Trg Republike 3 1000 Ljubljana, Slovenia Consultation on Forward Risk-Hedging Products and Harmonisation of Long-Term Capacity Allocation

More information

Annex B: Strike price methodology July 2013

Annex B: Strike price methodology July 2013 July 2013 URN 13D/189 Contents Introduction... 3 Overview of methodology for deriving a CfD strike price... 3 Strike Prices during the cross-over period with the RO (2014/15 2016/17)... 4 Comparison of

More information

Concepts and Experiences with Capacity Mechanisms

Concepts and Experiences with Capacity Mechanisms Concepts and Experiences with Capacity Mechanisms Manuel Baritaud, International Energy Agency Conference Capacity Mechanisms: Experiences in Various European Countries Bundesministerium fur Wirtschaft

More information

Section 4: Scheduling Philosophy & Tools

Section 4: Scheduling Philosophy & Tools Welcome to the Scheduling Philosophy & Tools section of the PJM Manual for Scheduling Operations. In this section you will find the following information: A description of the PJM OI s scheduling philosophy

More information

Transmission Pricing. Donald Hertzmark July 2008

Transmission Pricing. Donald Hertzmark July 2008 Transmission Pricing Donald Hertzmark July 2008 Topics 1. Key Issues in Transmission Pricing 2. Experiences in Other Systems 3. Pricing Alternatives 4. Electricity Market Structure and Transmission Services

More information

Cost Benefit Analysis for Electricity Balancing ISP harmonisation scoping paper

Cost Benefit Analysis for Electricity Balancing ISP harmonisation scoping paper Cost Benefit Analysis for Electricity Balancing ISP harmonisation scoping paper A paper for consultation Prepared by Frontier Economics and Consentec 20 February 2015 1. Contents 1. Contents... 2 2. Introduction...

More information

Ubiquitous Computing in Business Processes Part V

Ubiquitous Computing in Business Processes Part V Ubiquitous Computing in Business Processes Part V Prof. Dr. Lutz Heuser AGT Germany Prof. Dr. Zoltán Nochta SAP AG Darmstadt January 16, 2015 Outline 1. Smart Grids and Energy Management Overview Common

More information

SCHEDULE 1. Scheduling, System Control and Dispatch Service

SCHEDULE 1. Scheduling, System Control and Dispatch Service Seventh Revised Volume No. 5 (MT) Original Sheet No. 71 SCHEDULE 1 Scheduling, System Control and Dispatch Service This service is required to schedule the movement of power through, out of, within, or

More information

Business Area Markets

Business Area Markets Business Area Markets Stefan Dohler Head of Business Area Markets Vattenfall Capital Markets Day, Solna, 27 May 2015 Facts and figures Business Area Markets Our Mission We commercially optimise Vattenfall

More information

Electricity Market Management: The Nordic and California Experiences

Electricity Market Management: The Nordic and California Experiences Electricity Market Management: The Nordic and California Experiences Thomas F. Rutherford Energy Economics and Policy Lecture 11 May 2011 This talk is based in part on material pepared by Einar Hope, Norwegian

More information

Value of storage in providing balancing services for electricity generation systems with high wind penetration

Value of storage in providing balancing services for electricity generation systems with high wind penetration Journal of Power Sources 162 (2006) 949 953 Short communication Value of storage in providing balancing services for electricity generation systems with high wind penetration Mary Black, Goran Strbac 1

More information

How To Integrate Renewable Energy With Smart Grids

How To Integrate Renewable Energy With Smart Grids Challenges for the Market Integration of Renewables with Smart Grids IEEE PES ISGT 2012 Europe Conference Session: Economics of Smart Grids With Renewables 16.10.2012 Anke Weidlich 16 Oktober 2012 Economics

More information

R. A. C. van der Veen, A. Abbasy, and R. A. Hakvoort

R. A. C. van der Veen, A. Abbasy, and R. A. Hakvoort 1 A comparison of imbalance settlement designs and results of Germany and the Netherlands R. A. C. van der Veen, A. Abbasy, and R. A. Hakvoort Abstract Imbalance settlement is a vital part of the balancing

More information

Operating Hydroelectric and Pumped Storage Units In A Competitive Environment

Operating Hydroelectric and Pumped Storage Units In A Competitive Environment Operating electric and Pumped Storage Units In A Competitive Environment By Rajat Deb, PhD 1 LCG Consulting In recent years as restructuring has gained momentum, both new generation investment and efficient

More information

2. Executive Summary. Emissions Trading Systems in Europe and Elsewhere

2. Executive Summary. Emissions Trading Systems in Europe and Elsewhere 2. Executive Summary With the introduction of CO 2 emission constraints on power generators in the European Union, climate policy is starting to have notable effects on energy markets. This paper sheds

More information

ina Crisis - Italy's Electricity Market Regulation

ina Crisis - Italy's Electricity Market Regulation Electricity Regulation in the United Kingdom AIIFL Working Paper No. 10 April 2013 Asian Institute of International Financial Law Faculty of Law The University of Hong Kong www.aiifl.com April 2013 the

More information

Nordic Balance Settlement (NBS)

Nordic Balance Settlement (NBS) Nordic Balance Settlement (NBS) Common Balance & Reconciliation Settlement Design December 22 nd, 2011 Content Terminology...4 Executive Summary...6 1 Introduction... 8 1.1 Scope of the Nordic Balance

More information

Is It Possible to Charge Market-Based Pricing for Ancillary Services in a Non-ISO Market?

Is It Possible to Charge Market-Based Pricing for Ancillary Services in a Non-ISO Market? Is It Possible to Charge Market-Based Pricing for Ancillary Services in a Non-ISO Market? Regulation and Operating Reserves 33 rd Eastern Conference Center for Research in Regulated Industry Romkaew P.

More information

ICAP Execution Policy

ICAP Execution Policy ICAP Execution Policy August 2013 This Execution Policy is applicable to broker services provided to you by ICAP Group and/or any of its relevant group companies, as notified to you from time to time (

More information

Acknowledgement: This material is based upon work supported by the United States Department of Energy under Smart Grid Investment Grant Award Number

Acknowledgement: This material is based upon work supported by the United States Department of Energy under Smart Grid Investment Grant Award Number Integrated Automatic Dispatch System IADS Burbank Water& Power Bruce Hamer BWP Heber Weller SAIC Acknowledgement: This material is based upon work supported by the United States Department of Energy under

More information

Nordic Balance Settlement

Nordic Balance Settlement Nordic Balance Settlement Handbook for Market Participants (DRAFT) 17.12.2013 Business process: Nordic Balance settlement Version: 0 Status: For review and comments Date: December 17st, 2013 Nordic Balance

More information

Optimizing Wind Generation in ERCOT Nodal Market Resmi Surendran ERCOT Chien-Ning Yu ABB/Ventyx Hailong Hui ERCOT

Optimizing Wind Generation in ERCOT Nodal Market Resmi Surendran ERCOT Chien-Ning Yu ABB/Ventyx Hailong Hui ERCOT Optimizing Wind Generation in ERCOT Nodal Market Resmi Surendran ERCOT Chien-Ning Yu ABB/Ventyx Hailong Hui ERCOT FERC Conference on Increasing Real-Time and Day-Ahead Market Efficiency through Improved

More information

DISCLOSURE NOTES. How the accounts are presented. Generation

DISCLOSURE NOTES. How the accounts are presented. Generation DISCLOSURE NOTES As a result of changes in SSE s management and reporting structure in 2011/12 and in the interests of improved transparency, SSE s financial statements for the year ending March 2012 were

More information

Which Is Better: Fixed or Floating Electricity Prices?

Which Is Better: Fixed or Floating Electricity Prices? Which Is Better: Fixed or Floating Electricity Prices? Which Is Better: Fixed or Floating Electricity Prices? We tend to disparage monopoly power. But if utility distribution systems were not subject to

More information

Negative pricing in the GB wholesale electricity market

Negative pricing in the GB wholesale electricity market Negative pricing in the GB wholesale electricity market CLIENT: DECC DATE: 01/07/2015 Version History Version Date Description Prepared by Approved by 3.0 06/06/2015 Revised draft version for client Mark

More information

Industry Informational Report. Exchange for Physicals (EFP)

Industry Informational Report. Exchange for Physicals (EFP) Industry Informational Report Exchange for Physicals (EFP) Background information on transaction structure, industry practice and applications prepared by RISK LIMITED CORPORATION All information contained

More information

Electricity prices explained

Electricity prices explained e-guide Electricity prices explained For large business customers 2/5 Electricity prices explained Information for business customers Electricity suppliers are the public face of the electricity industry.

More information

Operational Security Network Code

Operational Security Network Code Amstelveenseweg 998 1081 JS Amsterdam Phone: + 31 20 520 7970 Fax: + 31 346 283 258 Email: secretariat@efet.org Website: www.efet.org Operational Security Network Code Public consultation 3 November 2012

More information

Assessment of Price Risk of Power under Indian Electricity Market

Assessment of Price Risk of Power under Indian Electricity Market Assessment of Price Risk of Power under Indian Electricity Market Sandeep Chawda Assistant Profesor JSPM s BSIOTR (W) Wagholi, Pune (INDIA) S. Deshmukh, PhD. Associate Professor PVG s COET Parvati, Pune

More information

The UK Electricity Market Reform and the Capacity Market

The UK Electricity Market Reform and the Capacity Market The UK Electricity Market Reform and the Capacity Market Neil Bush, Head Energy Economist University Paris-Dauphine Tuesday 16 th April, 2013 Overview 1 Rationale for Electricity Market Reform 2 Why have

More information