Nordic Imbalance Settlement Model

Transcription

1 Nordic Imbalance Settlement Model

2 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting

3 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting p. 7 p. 17 p. 31 p. 38 p. 44 p. 56 p. 63 p. 72 p. 83 p. 86

4 Description of the Handbook Contents, Chapters 1-6 Chapter Contents 1 Introduction 2 3 Nordic Imbalance Settlement Model Settlement structure management 4 Metering Metering of settlement data 5 Settlement data reporting 6 Imbalance settlement Basic information about the Nordic Imbalance Settlement project Purpose of the handbook Essential changes compared to national models Information sources to national regulations Introduction of the imbalance settlement organization High level description of the model and functions Roles and responsibilities of each market participant Contents of the agreements between ISR and market participants Commissioning plan for the Imbalance Settlement Model Description of the settlement structure Responsibilities and time schedules for reporting settlement structure information Examples of the settlement structure changes Reporting requirements Responsibilities and schedules for reporting settlement data Instructions how reporting for production and consumption is done Principles of imbalance settlement Calculation of production and consumption imbalance Example of imbalance calculation National reconciliation procedures

5 Description of the Handbook Contents, Chapters 7-11 Chapter 7 Invoicing 8 Communication 9 Collateral management 10 Market behavior reporting 11 Appendices Contents Invoicing process and invoicing of imbalances and reserves Calculation of imbalance price components Fee structures Invoicing procedure and schedule Consideration of taxes Applied data communication standard Services provided by ISR; information service and online service Reports provided by ISR Collateral management model Calculation of collateral demands Monitoring of market behavior including published reports Key performance indicators Sanctions and controls from bad market behavior Instructions for becoming a new BRP Handling of balance errors after gate closure National changes compared to Imbalance Settlement Model Change log

6 Terminology 1/2 Term Abbreviation Explanation Balance Responsible Party Balancing Market Delivery Hour / Day Distribution System Operator Frequency Containment Reserves Frequency Restoration Reserves Imbalance Adjustment Imbalance Settlement Responsible Key Performance Indicator Market Balance Area BRP DSO FCR FRR ISR KPI MBA A Balance Responsible Party is a party that has a valid imbalance settlement contract proving financial security and identifying balance responsibility with ISR. Balance Responsibility means obligations to ensure that a balance exists between the supply and withdrawal and for the purchase and sale agreements it has entered into. The entirety of institutional, commercial and operational arrangements that establish market-based management of the function of Balancing within the framework of the European Network Codes. A time period of delivery during which the Market Participants delivers the power in-feed or withdrawals to the system A Distribution System Operator is the distribution grid owner with the responsibility to distribute electricity from producers to its customers. The DSOs have the responsibility to meter production, consumption, exchange and report the metered data to the involved stakeholders. This responsibility also includes closed distribution system operator. Frequency Containment Reserves means the Operational Reserves activated to contain System Frequency after the occurrence of an imbalance. Frequency Restoration Reserves means the Active Power Reserves activated to restore System Frequency to the Nominal Frequency and for Synchronous Area consisting of more than one LFC Area power balance to the scheduled value. An energy volume representing the Balancing Energy from a Balancing Service Provider and applied by the Connecting TSO for an Imbalance Settlement Period to the concerned Balance Responsible Parties, for the calculation of the Imbalance of these Balance Responsible Parties. A party that is responsible for settlement of the difference between the contracted quantities and the realised quantities of energy products for the Balance Responsible Parties in a Market Balance Area. KPIs are utilized to measure the performance of different market participants. KPIs are a transparent way to display how TSOs, DSOs, BRPs and REs carry out their respective responsibilities. A Market Balance Area is an area that provides (exchange) schedules that represent a basis for monitoring of imbalances. The Elspot price is always the same within a MBA. Market Entity ME A collective term for MBA, MGA, PU and RO. Market Entity Connection MEC Market Entity Connection is a collective term for different kinds of connections either between different MPs (e.g. bilateral trades between parties) or MPs and MEs (e.g. MP s metered consumption in MGA or MP s production plan per PU). The MEC s time series data is the core of the imbalance settlement.

7 Terminology 2/2 Term Abbreviation Explanation Market Participants MP Metered data - Metering Grid Area Nord Pool Spot MGA NPS Market Participants are the main stakeholders in the settlement: the TSOs, DSOs, BRPs and REs. These enter into transactions in one or more wholesale energy market. Metered (metering) data is, in this Handbook, used as a general term for all the data that the market participants meter, collect and report to ISR for imbalance settlement purpose. A Metering Grid Area is a physical area where consumption and / or production and exchange can be metered. A MGA can include both production and consumption but also only one of these. It is delimited by the placement of meters for period measurement for input to, and withdrawal from the area. It can be used to establish the sum of consumption and production with no period measurement and network losses. MGAs are decided on national level. One company is responsible for all metering points within one MGA. The Nordic energy exchange and the company that organizes the physical electricity market in the Nordic countries. Operates in Norway, Denmark, Sweden, Finland, Estonia, and Lithuania. Power Exchange PX A power exchange is a sales forum or marketplace used by energy producers. Production Unit PU A Production Unit is a generator or a set of generators within the same power plant in one MGA. Regulation Object Retailer Replacement Reserves Service Provider Transmission System Operator RO RE RR SP TSO A Regulation Object is a set of one or more generators and stations within a MBA decided by the respective Transmission System Operator (TSO) and the BRP. One RO can only include production of a certain technology (wind, hydro, nuclear, etc.). There can only be one BRP per RO. A Retailer sells electricity to an end user. It sells and buys electricity directly from a producer, another retailer or via NordPoolSpot. A RE has an agreement with a BRP. In Finland a RE may have an agreement with a BRP, or with another RE who has an agreement with a BRP (chain of open supplier). Replacement Reserves means the reserves used to restore/support the required level of FRR to be prepared for additional system imbalances. This category includes operating reserves with activation time from Time to Restore Frequency up to hours. A Service Provider is a party that provides operational balance management and settlement services for the market participants e.g. BRPs, REs and DSOs. According to what services the SP provides to the market participant, the SP performs the corresponding tasks towards ISR and the imbalance settlement system. A Transmission System Operator has the responsibility for both the security of supply and the high-voltage grid. They also carry the ultimate responsibility on the imbalance settlement according to the national laws. In this document TSO refers to following Nordic TSOs: Statnett, Fingrid, and Svenska Kraftnät.

8 Contents Executive Summary General Background Benefits Essential Changes Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting

9 The Purpose and Objectives of the Nordic Imbalance Settlement Purpose A common imbalance settlement solution is supported by the governments and regulators in the Nordic countries Harmonizing the imbalance settlement in Finland, Norway and Sweden is regarded as an important step towards a fully functional common end user market Common imbalance settlement is therefore a prerequisite for a common end user market Imbalance settlement is a natural monopoly and a necessary function in a commercial based electricity market Objectives Imbalance settlement between different MBAs with as similar principles as possible through one ISR Design and provide similar operational preconditions for BRPs regardless of an MBA Harmonize common rules and standards for information exchange Contribute to the implementation of a common Nordic retailer market Be a forerunner in imbalance settlement issues on the European level

10 General Background Planning Phase I 2010 Planning Phase II 2011 Implementation Phase Reference group: the countries' market participants Commentary of the design report Adjustment of the proposed model and updating of the design report Analysis of the required changes in the law from the TSO s point of view Discussion with NordREG Draft of production management Solution of how to handle balance settlement between bidding areas and TSOs Preparation for the SR`s balance agreement has begun SR s organization model has been selected Alternative for the implementation of SR s settlement system Changes in the laws and regulations Balance agreement Organization Cooperation with the actors Data system Model development Testing and verification of the models accuracy EN.DK resigned Decision on how to continue

11 Relations Between esett and the Market Participants Laws & Regulations Specifying national requirements on ISR, BRPs and DSOs ISR Licenses & Mandates National ISR responsible Imbalance settlement responsible Outsourcing agreements Nord Pool Spot ISR BRP BRP BRP Nordic ISR Imbalance settlement operations Balance Settlement Agreements Nordic BRP level BRP acting in several countries RE RE RE RE level National regulation requirements DSO DSO DSO DSO level

12 The Most Essential Changes in the Nordic Imbalance Settlement Model Centralized imbalance settlement with two balances Unified Reporting times Corrections after the final settlement done bilaterally Invoicing done on weekly basis Common data exchange standards and requirements RE may have one BRP for consumption and one for production per MGA One RE may have different BRP in different MGAs

13 The Most Essential Changes in the Settlement Model in Finland One RE may have different BRP per MGA for production and consumption, whereas currently only single BRP per MBA has been possible Imbalance settlement and related invoicing will both be performed on a weekly basis instead of the current 1 month cycle Reporting period for settlement data reporting (metered values) is adjusted to 13 days from current 14 days after delivery day The role of DSOs and their responsibility in settlement data reporting is increased BRP s access rights to the settlement data of REs within their balance responsibility is more limited The messaging format for settlement related reporting is changed to a combination of ENTSO-E and ebix

14 The Most Essential Changes in the Settlement Model in Sweden Reporting period for settlement data reporting (metered values) is adjusted to 13 days from current 5 days after delivery day Corrections after ISR invoicing of imbalances are done bilaterally between REs and BRPs, whereas in the current model settlement corrections are done 1,5 months after invoicing by ISR Imbalance settlement and related invoicing will both be performed on a weekly basis instead of the current half month cycle Reporting and publishing of settlement data on a RE-level from the current BRP-level RE can only choose one BRP for production and one for consumption within an MGA The messaging format for settlement related reporting is changed to a combination of ENTSO-E and ebix

15 The Most Essential Changes in the Settlement Model in Norway Metering Grid Areas (MGAs) are introduced Reporting and settlement cycle will be changed One RE may have different BRP per MGA for production and consumption, whereas currently only single BRP has been possible. Means of communication are harmonized The messaging format for settlement related reporting is changed to a combination of ENTSO-E and ebix The responsibilities of the DSOs grow

16 Benefits of the Model The Nordic Imbalance Settlement is the platform for a common imbalance settlement in Finland, Norway and Sweden - a single interface (the ISR) and single set of rules. Creation of a competitive end user market. Increased competition and reduced margins for the electricity providers will give a socioeconomic efficiency gain. Competition through a common Nordic retail market is considered to be essential in order to ensure high quality services at the lowest price, to stimulate innovation and maximize social welfare in the Nordic region. Lower threshold of being a BRP through one common access to all countries. An incentive for DSOs to improve the quality of the meter data as they are responsible for data errors after the imbalance settlement period is closed. A larger market with a common rule set will make it more attractive to invest in innovation. A common Nordic approach to imbalance settlement procedures will have more influence on the EU development than if there were several different Nordic solutions. NBS will, in the long run, lower the operational costs of imbalance settlement and make the related costs more transparent.

17 BRP Operation in Multiple Countries in the Nordic Imbalance Settlement Model A single BRP can operate in multiple countries in the Nordic Imbalance Settlement Model with similar practices and with ISR as the counter party for services, reporting and imbalance settlement (single point of contact). In addition to Nordic Imbalance Settlement Model practices which are harmonized to large extent between countries, some national differences remain due for example legislation and current state of the AMR. Settlement related invoicing is performed on country level, resulting to one invoice per each country of operation. BRP may select the currency of the invoice per each country, being either local currency (e.g. SEK) or the default currency (EUR). If another currency than EUR is selected a currency fee to cover ISR currency risk shall be applied. Based on the country of operation there may be country specific fees that are applied to invoicing of imbalances, in addition to general fees (for example peak load fee in Sweden).

18 Contents Executive Summary Nordic Imbalance Settlement Model Functions of the Imbalance Settlement Model Roles and Responsibilities Balance Responsibility and Agreements Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting

19 Functions of the Imbalance Settlement Model The Nordic Imbalance Settlement Model is based on the present harmonized model with separate balances for production and consumption which are calculated and settled separately IMBALANCE SETTLEMENT FINANCIAL RISK MGMT MARKET PERFORMANCE Settlement structure Revised settlement structure BRP collateral control and follow-up Market behavior monitoring Data metering and reporting Complete basis for settlement Sufficient collaterals set Sufficient market performance Settlement Volumes settled Invoicing Settled volumes invoiced Reporting Imbalance settled

20 Imbalance Settlement Settlement structure defines how the information about the imbalance settlement structure and hierarchy (relations) is collected and managed, e.g. information about a new Metering Grid Area (MGA) or the contact information of a market participant. Metering and reporting data handles the imbalance settlement data reception, validation, storing and reporting by ISR. Settlement structure IMBALANCE SETTLEMENT Data metering and reporting Revised settlement structure Complete basis for settlement Settlement handles the production and consumption imbalance settlement calculations, quality assurance and publishing of results. Invoicing handles the ISR s invoicing of BRPs, based on realized imbalances. Reporting includes the creation, distribution and publishing of various reports and files provided by the ISR. Reporting is also done through the Online Service and Information Service that are provided to market participants. Settlement Invoicing Reporting Volumes settled Settled volumes invoiced Imbalance settled

21 Financial Risk Management and Market Performance Collateral management includes control of the BRPs collateral demands, as defined and calculated by ISR, as well as follow-up of the placed collateral deposits in comparison to demands. Market behavior monitoring is based on the analysis of the BRPs' imbalances. These are analyzed by calculating a set of KPIs, which show the BRPs market performance (e.g. quality of reported data, reporting frequency, relative imbalances, absolute imbalances and imbalance costs per unit). The quality of DSOs reporting will also be monitored. FINANCIAL RISK MGMT BRP collateral control and follow-up Sufficient collaterals set MARKET PERFORMANCE Market behavior monitoring Sufficient market performance

22 Imbalance Settlement Roles and Responsibilities Transmission System Operator (TSO): responsibility to supervise the balance of the electricity system and take actions to rebalance the system Imbalance Settlement Responsible (ISR) : Responsible for the settlement of imbalances Market Operator: Power exchange Balance Responsible Party (BRP): market participant having a valid agreement with the ISR Nord Pool Spot ISR Distribution System Operator (DSO): the responsibility to connect producers and consumers to its grid. The DSOs have the responsibility to meter production, consumption and exchange with other grids in addition to report the metered data to the entitled parties. DSO BRP BRP BRP DSO DSO Retailer (RE): sells electricity to final consumers and balances the sales with purchases in bilateral and organized markets. RE RE RE

23 Imbalance Settlement Roles and Responsibilities - TSO Transmission System Operator (TSO) Responsibility to supervise the balance of the electricity system and take actions to rebalance the system. In the Nordic Imbalance Settlement Model a TSO has the same responsibilities as a BRP and in addition the following: o Balance the production/import with the consumption/export during the delivery hour to meet the overall demand of frequency at 50 Hz o Calculate imbalance adjustment prices per hour and determine imbalance prices o Submit necessary information per BRP to the ISR for the imbalance settlement of the BRPs; e.g. production plan and activated imbalance adjustment during the delivery hour o Act as the financial counterpart towards the BRP for all reservations of reserves (ISR is the financial counterpart for the corresponding reserves related to the imbalance settlement o Report to ISR into which MBA each MGA belongs to Nord Pool Spot ISR BRP DSO RE

24 Imbalance Settlement Roles and Responsibilities - NPS Nord Pool Spot (NPS) The responsibilities for Nord Pool Spot, in its role as power exchange and in regard to imbalance settlement are following: o Report trade data for Elspot- and Elbas trade per BRP/RE and MBA to ISR (and TSO where needed). o Report cross border trade with other power exchanges (market coupling) to TSOs. Nord Pool Spot ISR BRP DSO RE

25 Imbalance Settlement Roles and Responsibilities - ISR Imbalance Settlement Responsible (ISR) Perform the imbalance settlement and invoice/credit the BRPs for the balancing power. Set the collateral levels so that they cover the imbalance settlement related risk exposure. Collect and monitor the BRP s collaterals and take necessary actions to adjust collaterals when needed. Collect fees from BRPs to cover: o Balance management and settlement costs of the TSOs. o The reserve costs and related operational costs for the TSO. Monitor imbalances and assess whether they are in accordance with published guidelines and regulations. Publish a set of KPIs to provide statistics on reporting and settlement. Operate and provide an imbalance settlement IT system that the market participants can use to access and report settlement data. Report imbalance settlement data including statistics, KPIs and other market information. Nord Pool Spot ISR BRP DSO RE

26 Imbalance Settlement Roles and Responsibilities - BRP Balance Responsible Party (BRP) A BRP is a market participant having a valid agreement with the ISR. The BRP s responsibilities are the following: o Have a valid imbalance settlement agreement with the ISR and provide the required collaterals o Plan balanced schedules on an hourly basis o Submit production plans to the TSO which will forward them to the ISR o Submit bilateral trade information to ISR o Act as the financial counterpart for the settlement of imbalances, activated imbalance adjustment and reconciliation according to national guidelines o Verify all relevant data reported by the ISR, and notify deviations o Inform the imbalance settlement responsible of which REs that the BRP is responsible for Nord Pool Spot ISR BRP DSO RE

27 Imbalance Settlement Roles and Responsibilities - DSO Distribution System Operator (DSO) A grid operator with the responsibility to connect producers and consumers to its grid. The responsibility to meter production, consumption and exchange with other grids in addition to report the metered data to the entitled parties. This includes closed distribution system operators. The DSO has several obligations in relation to imbalance settlement: o Register REs metering points regarding production and consumption in the respective MGAs o Operate the metering system and submit required metering data to the REs, BRPs and ISR o Calculate and report load profile shares (according to national guidelines) o Calculate the final profiled consumption and the reconciled energy when all metering for a grid area is completed (according to national guidelines, see sub chapter 6.6. Reconciliation) o Imbalance corrections after the imbalance settlement reporting is closed shall be settled between the DSO and RE. Nord Pool Spot ISR BRP DSO RE

28 Imbalance Settlement Roles and Responsibilities - RE Retailer (RE) An RE sells electricity to final consumers and balances the sales with purchases in bilateral and organized markets. The RE s responsibility regarding imbalance settlement is: o Have an agreement with a BRP. In Finland, the chain of open supplier is applied. The model implies that a RE may have an agreement with a BRP, or with another RE who has an agreement with a BRP. o RE can use one BRP for consumption and one BRP for production in the same MGA and use different BRPs in different MGAs, this division is highlighted in the following figure where Finland is used as an example Nord Pool Spot ISR BRP DSO RE

29 Roles and Responsibilities Different BRPs per MGA for Production and Consumption In the Nordic Imbalance Settlement Model the RE has the possibility to select a different BRP on MGA level for production and consumption

30 Roles and Responsibilities Chain of Open Supplier in Finland In the Nordic Imbalance Settlement Model the RE has to have an agreement with a BRP in order to operate in the market In Finland a RE may have an agreement with a BRP, or with another RE who has an agreement with a BRP (i.e. the chain of open supplier ) The BRP will be responsible for and carry out the settlement of the REs under it s balance responsibility ISR ISR will carry out the BRP`s balance settlement based on the DSO`s delivery information. Imbalances will be calculated on BRP level BRP RE1 RE3 RE4 RE2 RE5 ISR BRP RE1 RE2 RE5 RE2 RE5 Balance Responsibility Delivery MGA MGA

31 Balance Responsibility and Agreements In order to act as a BRP, the market participant has to have a valid imbalance settlement agreement with the ISR. The scope of the imbalance settlement agreement will be limited to issues regarding the settlement and invoicing of activated imbalance adjustment. The purpose of the imbalance settlement agreement is to assure financial liability for and planning of imbalances between the generation and consumption of power: Liability of the ISR Collateral requirement Procedures when contract is breached by the BRP Law and place of court Local TSOs may require separate or joint balance management agreements with the BRPs. As before, a BRP shall have a valid agreement with the TSO if the BRP is providing reserves in the balancing markets. The agreement regulates the relations between the parties. Detailed agreement and related context will be published at a later stage

32 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Settlement Structure Market Participants Market Entities Reporting Roles and Responsibilities Reporting Schedules Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting

33 Settlement Structure Overview The settlement structure is one of the key elements in the Nordic Imbalance Settlement Model. Structural information is information about market participants and their relations to each other (e.g. the relationship between a BRP and an RE) and to the Market Entities and Market Entity Connections (e.g. the relationship between a BRP and a MGA). Each market participant is responsible for informing and updating structural information. ISR will maintain the structure information, based on the information provided by the DSOs and BRPs. DSOs are responsible for updating the structure of the MGA they are accountable for (e.g. MGA exchange per MGA per adjacent MGA). BRPs are responsible for updating the structure of their obligations (e.g. which RE in the different MGA they are responsible for). When the changes are entered into the imbalance settlement system of the ISR, the changes are validated and approved. Once the changes are approved they will be used in the imbalance settlement. The structure information is published in the Online Service where market participants can view the up to date settlement structure information.

34 Settlement Structure in Nordic Balance Settlement Market Participants (described in more detail in the following pages) Nord Pool Spot DSO RE ISR BRP BRP BRP DSO RE DSO RE MBA RO MGA PU Market Entities (described in more detail in the following pages)

35 Settlement Structure - Market Participants Market Entities Name Abbreviation Description Transmission System Operator Balance Responsible Party Distribution System Operator Retailer TSO BRP DSO RE Has the responsibility for both the security of supply and the high-voltage grid Also carry the ultimate responsibility on the imbalance settlement according to the national laws Has a valid imbalance settlement contract proving financial security and identifying balance responsibility with ISR Balance Responsibility means obligations to ensure that a balance exists between the supply and withdrawal and for the purchase and sale agreements it has entered into The distribution grid owner with the responsibility to distribute electricity from producers to its customers The DSOs have the responsibility to meter production, consumption, exchange and report the metered data to the involved stakeholders. This responsibility includes also closed distribution system operators. Sells electricity to an end user. Sells and buys electricity directly from a producer, another retailer or via NordPoolSpot Has an agreement with a BRP. o In Finland a RE may have an agreement with a BRP, or with another RE who has an agreement with a BRP (chain of open supplier).

36 Settlement Structure - Market Entities Market Entities Name Abbreviation Description Market Balance Area Regulation Object Metering Grid Area Production Unit MBA RO MGA PU Market Balance Area means an area that provides (exchange) schedules that represent a basis for monitoring of imbalances. It is always the same Elspot price within a MBA. A Regulation Object (RO) is a set of one or more generators and stations within a MBA decided by the respective Transmission System Operator (TSO) and the BRP. One RO can only include production of a certain technology (wind, hydro, nuclear, etc.). There can only be one BRP per RO. A Metering Grid Area is a physical area where consumption, production and exchange can be metered. A MGA can include both production and consumption but also only one of these. It is delimited by the placement of meters for period measurement for input to, and withdrawal from the area. It can be used to establish the sum of consumption and production with no period measurement and network losses. MGAs are decided on national level. Generator or a set of generators within same power plant.

37 Placeholder: What is an MEC Name Consumption Metered Consumption Profiled Production MGA Exchanges MGA Exchange Trade PX Market Trade PX Market Flows Bilateral Trade Description Consumption per MGA per RE on hourly basis used in imbalance settlement. Consumption is divided into the following consumption types: Grid losses, Interruptible consumption, Industry consumption over 50 MW, Pumps and Pumped Storage Consumption per MGA per RE on hourly basis used in imbalance settlement. Consumption is divided into the following consumption types:grid losses, Interruptible consumption, Industry consumption over 50 MW, Pumps and Pumped Storage Production per PU on hourly basis used in imbalance settlement. Production is divided into following production types hydro, wind, nuclear, gas turbine/diesel production, solar, wave, combined heat and power The exchange of energy sum that occurs between Metering Grid Areas adjacent to each other. Measured in the border points and reported hourly. The MGA Exchange Trade represents sold or bought MGA exchange between two REs in different MBAs PX Market Trade is the electricity trade concluded on the Nord Pool Spot Elspot (day-ahead) or Elbas (Intraday) PX Market Flows consists of two parts: Elspot- and Elbas flows. Elspot flow is the planned flow between two MBAs and resulting from day-ahead market trades. Elbas flow is net planned flow between the two MBAs resulting from intraday market trades. An electricity trade that has been agreed upon between two market participants on hourly basis. Production Plans Imbalance Adjustment MGA Imbalance BRPs reported plans for production, on RO basis. Imbalance Adjustment means the correction applied to the position of a Balancing Service Provider or a BRP by TSO for the calculation of the Imbalance Volume Sum of reported input to, and withdrawals (including network losses) from one MGA. The sum is zero when reported values are correct.

38 Reporting Roles, Responsibilities and Schedule - Overview Every participant in the electricity wholesale market will have to apply for acceptance into the settlement structure from the ISR. The participants themselves are responsible for registering and verifying that their information is up-to-date. Responsibilities regarding the settlement structure information management are explained in the following tables. The settlement structure information is required to be registered according to the defined gate closure times.

39 Structure Information Reporting RE DSO 1 1 MECs for consumption What is reported MECs for production 3 3 MECs for MGA exchange BRP ISR 8 Nord Pool Spot 4 4 MGA Structure 5 5 Bilateral Trade Structure Regulation Objects 10 TSO 7 7 RE - BRP Structure 8 8 MGA - MBA Structure N N N 3 days before the delivery day 14 days before the delivery day tbd 9 9 Regulation Objects Market Participant Validity

40 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Metered Data by Types Production Metering Consumption Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting

41 Metered Data by Types There are three different main types for metered data (or types of metering points) Exchange Metering Point to Other MGAs Production Metering Points Consumption Metering Points Hourly Metered Exchange with Adjacent MGAs Hourly Metered Input to the MGA from Production Hourly Metered Consumption from the MGA Hourly Metered Consumption from the MGA Hourly Metered Consumption from the MGA Metered consumption Pumped (only in Norway) Pumped storage (only in Norway) Interruptible (only in Sweden) Industry over 50 MW (only in Sweden) Profiled consumption Pumped (only in Norway) Metered grid losses Profiled grid losses

42 Production Metering All production metering in the Nordic Imbalance Settlement Model is based on netted metering Netted metering is defined as metered production after own consumption used for power generation has been subtracted The definition of own consumption has not been harmonized and the following information about the national principles has been provided In Finland the legislation for own consumption of the production plant can be found in the document "Kauppa - ja teollisuusministeriön asetus voimalaitosten omakäyttölaitteista". The document can be found at: In Sweden there is no legislation describing own consumption of the production plant. In Norway the definition of own consumption of the production plant can be found in the document "Forskrift om elsertifikater" in chapter 3 16 "Bestemmelser om måledata og korreksjonsfaktor". An industry site that also has its own production units are not allowed to net the production with their consumption Until legislation in Finland, Norway and Sweden have been harmonized, the Nordic Imbalance Settlement Model will handle both gross and net metered production, which can be metered, aggregated and reported in accordance to principles defined on the following slides Production and consumption should be metered and reported separately to the ISR's imbalance settlement

43 Net Metering for Production Net metering has been implemented so that both generator and own consumption of the production unit are metered by the same meter In the case in the picture, the meter is a so called two-way meter and it is possible to measure energy in both directions If production energy exceeds the own consumption, it is reported as production If there is no production during the hour the own consumption will be reported as consumption and handled in the consumption balance

44 Gross Metering for Production Gross generation is defined as the sum of the electrical energy production by all the generating sets concerned, measured at the output terminals of the main generator In the picture, meter 1 is for production metering and meter 2 is the metering of own consumption Meter 1 will be the reported production of the PU Metered values from Meter 2 will be aggregated together with other meters that the RE has in this MGA before it is reported to ISR

45 Households with both Production and Consumption Prosumers and Industry with Consumption Net metering of PUs with own consumption and an additional consumption (C) may be set up according to the picture on the right No meter 2 is required for sites with main fuse up to 3x63A in Finland The additional consumption (C) (e.g. a factory) may not be netted with the production Only netting behind meter 2 is allowed.

46 Consumption Metering The DSO should, in an hourly settled meter point, meter values at each shift of hour The DSO is recommended to perform data acquisition as soon as possible after the delivery day The handling of consumption metering will be done in accordance with existing national rules

47 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Reporting Requirements Reporting Responsibilities Schedules for Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting

48 Settlement Data Reporting Overview The settlement data shall be reported to ISR via market messages or via Online Service The reported data is further aggregated by ISR in order to establish the consumption and production imbalances Gate closure times differ depending on the data that is being reported ISR performs validations on received data and publishes it in the Online Service The verification of the bilateral trades and MGA exchanges is performed by verifying that values reported by the two counterparts are equal In the Nordic Imbalance Settlement Model, the hourly data is collected daily and within the stipulated 13 days, this data should be used in the imbalance settlement. Nordic Imbalance Settlement Model utilizes the Nordic calendar in all reporting schedule (CET), similar to Nord Pool Spot practices

49 Schedule for Reporting Balance Settlement Data (13 days) WEEK 1 WEEK 2 WEEK 3 Delivery day M T W T F S Delivery week 1 S Reporting D + 2 M T W T F S S Final reporting D + 13 Delivery week 2 M T W T F S S Meter data can be updated until 13 days after delivery day Continuous calculation of the balance settlement based on received meter data Delivery week 3

50 Reporting Before Delivery Hour Roles and Responsibilities RE DSO 2 Production plans What is reported 3 Imbalance adjustment bids and activated imbalance adjustments BRP ISR 5 Nord Pool Spot 4 5 Bilateral trades and confirmation of the bilateral trades Elspot and Elbas trades and trades between market balance areas 3 TSO 5

51 Reporting after delivery hour ( days) Roles and Responsibilities RE BRP 3 5 Online Service and/or Information Service DSO 9 ISR TSO 1 2 Nord Pool Spot 1 What is reported Imbalance adjustment volumes and amounts & Regulation prices 2 Binding production plans 3 Hourly metered consumption per metering point *) 4 Aggregated MGA exchanges between adjacent MGAs 5 Hourly metered production per production unit 6 7 Aggregated hourly metered consumption per MGA on RE level (per consumption type) Preliminary profiled consumption (PPC) per MGA on RE level (per consumption type) 8 The result of the preliminary imbalance calculation 9 Aggregated MGA exchanges results

52 Reporting after the imbalance settlement is closed (13 days) Roles and Responsibilities What is reported RE DSO 1 Result of the final imbalance calculation 3 2 Invoicing of imbalance settlement 3 MGA imbalance BRP ISR Nord Pool Spot 4 Other information regarding verification of the imbalance settlement 6 5 Invoicing of imbalance adjustments TSO 6 TSO-TSO settlement in cooperation with the TSOs

53 Reporting Requirements Unit and Accuracy Sign Status of reported values The unit of reported values shall be in kwh according to the BRS. Aggregated values shall have the same resolution as the original registered values in kwh. o Sweden: meter values shall be reported with up to three decimals, rounding is not permitted o Norway: meter values should be reported with whole numbers, no decimals o Finland: meter values are recommended to be reported with up to two decimals, rounding is not permitted Sign implies that aggregated consumption and input of power to the MGA from an adjacent MGA shall be reported with negative sign. Meter values from production units and power from the MGA to an adjacent MGA shall be reported with a positive sign. All reported meter values shall be marked with a status (Quantity Quality according to BRS) indicating the quality of the metered values. Following Quantity Quality statuses can be set: o Metered o Temporary o Does not exist o Estimated, approved for billing The default status for all values is Metered

54 Reporting Responsibilities and Schedule - BRP BRP s Responsibilities Responsibility Report bilateral trades Report production plans Report regulation bids for up and down regulation Update production plans (Sweden) Accept the counterparty's values Before gate closure (45 min) Short time after gate closure 1 In Finland 20 min before delivery hour Delivery Day +1 5 Counterpart TSO / ISR TSO

55 Reporting Responsibilities and Schedule - DSO DSO s Responsibilities Responsibility Report metered data per production unit Before Gate Closure Delivery Day Delivery Day +13 Counterpart Report final metered data per production unit Report aggregated metered data 2 3 ISR Report final aggregated metered data Report metered data per consumption metering point Report final metered data per consumption metering point RE

56 Reporting Responsibilities and Schedule - ISR ISR s Responsibilities Responsibility Provide preliminary aggregated data Provide final aggregated data Calculate preliminary imbalance settlement Calculate the result of the imbalance settlement Send invoice Provide preliminary aggregated data Provide final aggregated data Provide preliminary aggregated data Provide final aggregated data Before gate closure Short time after gate closure Report quality assurance Delivery Day +x Counterpart BRP RE DSO

57 Reporting Responsibilities and Schedule - NPS NPS s Responsibilities Responsibility Report Elspot trades Report Elbas trades Before gate closure 1 2 Short time after gate closure Delivery Day +x Counterpart TSO Report Elspot trades Report Elbas trades 1 2 ISR

58 Reporting Responsibilities and Schedule - TSO TSO s Responsibilities Responsibility Before gate closure Short time after gate closure Delivery Day +x Counterpart Report all balancing reserves 1 BRP Report all activated reserves Report binding production plans 1 2 ISR

59 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Production Imbalance Settlement Consumption Imbalance Settlement Imbalance Settlement with Missing Data Management of Imbalance Errors after Gate Closure Example(s) of Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting

60 Calculation of Production and Consumption Imbalance Power Volumes Production Imbalance Consumption Imbalance The production imbalance settlement volumes are calculated based on received settlement data. The calculation is performed per BRP and includes data from the parties in the BRP's balance hierarchy, using relations in the structure information (e.g. BRP s responsibility over REs). Production Production plans Production Production imbalance adjustment Production Imbalance Power Consumption Production plans Consumption Trades Consumption imbalance adjustment Consumption Imbalance Power 1-price model The consumption imbalance settlement volumes are calculated based on received settlement data. The calculation is performed per BRP and includes data from the parties in the BRP's balance hierarchy, using relations in the structure information (e.g. between MPs; BRP s responsibility over REs). 2-price model Volume fee Production fee Consumption fee

61 Calculation of Production Imbalance Settlement Source DSO Metered production per PU Metered production per BRP per MBA Input from market participants Calculation result Aggregated value BRP Balancing market Production plans per BRP per RO FCR per type and RO Planned production per BRP per MBA Production imbalance adjustment up per BRP per MBA Production imbalance per BRP per MBA Balancing market FRR per type and RO Balancing market RR per type and RO Production imbalance adjustment down per BRP per MBA

62 Consumption Imbalance Settlement Source BRP DSO DSO DSO DSO NPS Production plans per BRP per RO Metered consumption per RE per MGA Preliminary profiled consumption per RE per MGA Metered production per PU MGA exchange per MGA per adjacent MGA Elspot trade per RE per MBA Calculated MGA imbalance per BRP per MGA MGA exchange trade per MGA per adjacent MGA Planned production per BRP per MBA Consumption per BRP per MBA Preliminary profiled onsumption per BRP per MBA Calculated MGA imbalance per BRP per MBA MGA exchange trade per BRP per MBA Elspot trade per BRP per MBA Input from market participants Calculation result Aggregated value Consumption imbalance per BRP per MBA NPS BRP Balancing market Balancing market Balancing market Elbas trade per RE per MBA Bilateral trades per counterpart per MGA FCR per type and RO FRR per type and RO RR per type and RO Elbas trade per BRP per MBA Bilateral trades per BRP per MBA Consumption imbalance adjustment up per BRP per MBA Consumption imbalance adjustment down per BRP per MBA

63 Example of the Imbalance Settlement As a result of the BRP`s production imbalance calculation ( (-10)) there is a 5 MWh surplus in the BRP s production imbalance. The BRP sells 5 MWh imbalance power to the ISR. Production imbalance [MWh] Production plan 50 Metered production 65 Imbalance adjustment (up regulation, sale to TSO) -10 Production balance imbalance calculation Imbalance calculation Delivery hour Production Imbalance Metered production [MWh] Production plan [MWh] Imbalance adjustment [MWh] Imbalance [MWh] Consumption Imbalance As a result of the BRP s consumption imbalance calculation (50 + (-20) + (- 45)) there is a -15 MWh deficit in the BRP s consumption imbalance The BRP buys 15 MWh from the ISR Consumption imbalance Production plan 50 Bilateral trades (purchase) 5 Elspot trades (sale) -25 Metered Consumption -10 MGA imbalance -30 Profiled consumption -5 Imbalance calculation Delivery hour [MWh] Consumption balance imbalance calculation Production Plan [MWh] Bilater + Elspot Trades [MWh] Metered consumption MGA imbalance Profiled consumption [MWh] Imbalance [MWh]

64 Imbalance Settlement with Missing Data The calculation of imbalances is performed in the imbalance settlement IT system independent of whether all the settlement data has been received or not. For MECs from which data hasn t been received the value 0 is used in the calculation but empty settlement data is not changed from void to 0 in the database. If the values have not been received by the gate closure (13 days after the delivery day) the final calculations are to be performed with the value 0. If the calculation was done with not all settlement data available, the market participant in question is notified about this in the Online Service. The notification includes information on what settlement data was missing. This procedure applies for both consumption and production imbalance settlement.

65 Management of Imbalance Errors after Gate Closure There will be no corrections of the imbalance settlement made by the ISR after the invoice of a settlement period has been created and submitted. Exceptions are if the ISR has committed errors or due to extraordinary circumstances (force majeure or similar) Handling of imbalance errors after invoicing is done bilaterally between the contracting parties Subsequent bilateral correction of imbalance settlement is outside of the ISRs scope, but harmonized standards and procedures have been developed by the industry together with the regulators The proposal of the handling of balance errors from Finnish Energy Industries can be viewed in the handbook in Appendix 2

66 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Invoicing Process Production and Consumption Imbalance Price Components Fees Invoice Communication Collateral Management Market Behavior Reporting

67 Invoicing Process ISR is responsible for calculating and invoicing the production and consumption imbalances and settlement of activated reserves on weekly basis The three TSOs are legally responsible for the imbalance settlement, including setting the rules for the calculations and the applied fees and fee levels 1 3 ISR 2 BRP TSO 1 Process step 1 Invoice from Balance settlement 2 2 Payments of invoice 3 3 Disbursement of credit notes 4 4 Transfer of income from fees and 2-price settlement 5 5 Invoice costs related to regulation power 6 6 Invoice to TSO as a BRP 7 7 Invoice for ISR services 8 8 Payment of ISR invoice or Disbursement of credit note

68 Invoicing Schedule Week 1 Week 2 Week 3 Week 4 Delivery Day Possibility to update settlement data Continuous preliminary imbalance settlement based on updated settlement data M T W T F S Delivery week 1 S First Reporting (T+2) M T W T F S S Final Reporting (T+13) Delivery week 2 M T W T F S S Imbalance settlement for week 1 started Delivery week 3 Imbalance settlement for week 1 finished M Invoicing of week 1

69 Production and Consumption Imbalance Price Components Prices used in the imbalance calculations are received from the balancing market and NPS. Prices used in the imbalance calculations Consumption imbalance price (EUR/MWh) per MBA Production imbalance sale price (EUR/MWh) per MBA Production imbalance purchase price (EUR/MWh) per MBA Main direction of imbalance adjustment per MBA Up regulation price (EUR/MWh) per MBA Down regulation price (EUR/MWh) permba Spot price (EUR/MWh) per MBA Swedish Peak Power price (EUR/MWh) Consumption imbalance is always priced according to the regulation price in the main direction of regulation in the price area (one price model). It is calculated in the imbalance settlement system, using the following components: Consumption imbalance price per MBA = (up regulation price or down regulation price, decided by main direction of imbalance adjustment per MBA) If no direction (main direction = 0), then the Elspot price of market area shall be used Production imbalance is priced according to the spot price in the balancing area, but if the production imbalance contributes to the total system imbalance, the production balance power is priced with marginal regulation price in the main direction (two-price model). Production imbalance price is calculated in the imbalance settlement system, using the following components: The production imbalance sale price (ISR sales to BRPs) shall be the down-regulating price of the hour. If no down-regulation has been regulated or if the hour has been defined as an up-regulation hour, Elspot price shall be used as the production imbalance sales price. The production imbalance purchase price (ISR purchase from BRPs) shall be the up regulating price of the hour. If no up-regulation has been regulated or if the hour has been defined as a down-regulation hour, Elspot price shall be used as the production imbalance purchase price. If both up-regulation and down-regulation has been regulated during the delivery hour, the hour shall be defined as an up-regulation hour or down-regulation hour depending on which direction more energy has been regulated. If there has been no regulation or if there has been equally much regulation in both directions, the price of imbalance power is regulating market power main price.

70 Two-price and One-price System In the two-price system, separate prices are calculated for the purchase and sales of imbalance power The sales price of imbalance power in the production balance sold by TSO to the balance responsible party is the up-regulating price of the hour The purchase price of imbalance power in the production balance purchased by TSO from the balance responsible party is the down-regulating price of the hour If no regulation has been carried out or if the hour has been defined as a down or up-regulating hour, the spot price is used as the sales or purchase price, respectively In the one-price system, the purchase and sales prices of imbalance power are identical Up-regulating hour 2-price No regulations Down-regulating hour Up-regulating hour 1-price No regulations Down-regulating hour Up-regulating price /MWh Spot Price /MWh Down-regulating Price /MWh Balance provider s purchase price for balance power Balance provider s sales price for balance power /MWh /MWh

71 Fee Structure Overview The fees will cover the national cost base which encompasses costs for operating the ISR as well as costs for reserves The fees will be invoiced from the market participants depending on the market area they operate in The fees for production and consumption vary between the different countries as the cost bases are national The production and consumption fees are set by each TSO considering the national cost base The weekly fee will be harmonized but the imbalance fee might vary between the Nordic countries The fees can be changed with one months notice if necessary However, the goal is to keep the fees fixed for at least one calendar year at the time, if possible TSOs are responsible for calculating and setting the fees and notifying ISR to reduce or increase the fee levels All fees shall be published on the Online Service

72 Fee Structure Fees Fee Unit Description Weekly fee Peak power reserve fee Currency fee Consumption fee Production fee Consumption imbalance fee EUR/Week EUR/MWh (in Sweden) EUR EUR/MWh EUR/MWh EUR/MWh Contributes to financing the imbalance settlement performed by the ISR Applicable for all BRPs active in the week for which the invoice is sent Calculated per country (EUR/Week) Maximum fee for one BRP active in all market balance areas in the Nordics will be three times the weekly fee A supplementary fee for the Peak Power Reserve (EUR/MWh) will be charged on the BRP s metered consumption, excluding network losses for networks requiring licenses Charged on working days between CET, between 16th of November and 15th of March If the fee generates a surplus or trading profit for Svenska Kraftnät s compared to the costs for the Peak Power Reserve during the winter period, a settlement will be made subsequently, no later than 30th of June Possible for the BRPs to choose settlement in NOK or SEK for an additional fee, which is to cover ISR's currency risk For financing the national cost base for reserves Calculated per hour for BRP s consumption during the delivery hour as EUR/MWh (per MBA per country) For financing the national cost base for reserves Calculated per hour for BRP s production during the delivery hour as EUR/MWh (per MBA per country) Functions primarily as an incentive for the BRPs to plan their balance Contributes to the national financing of the cost base for balance regulation and settlement Levied on consumption imbalances in each MBA Calculated per hour based on the sum of consumption imbalance sold by ISR to BRP or bought by ISR from BRP (per MBA and country)

73 Invoice The BRP will receive one electronic invoice for each country it is active in from the ISR The invoice will contain the volumes (MWh) and amounts (EUR) per market balance area The invoice is a combination of fees and amounts Source Consumption imbalance settlement volumes Production imbalance settlement volumes Consumption imbalance amounts per BRP per MBA Input from market parties Volume Balancing market Balancing market NPS Down-regulating price per bidding area (EUR/MWh) Up-regulating price per bidding area (EUR/MWh) Elspot price per MBA (EUR/MWh) OR OR OR Consumption imbalance price (EUR/MWh) Production imbalance sales price (EUR/MWh)* * BRP sales to SR Production imbalance purchase price (EUR/MWh) Production imbalance amounts per BRP per MBA Amount Calculation result Consumption fee (total MWh consumed per country, EUR) Consumption fees per BRP per MBA Production fee (total MWh produced per country, EUR) Consumption imbalance fee (EUR/MWh) Production fees per BRP per MBA Consumption imbalance fees per BRP per MBA Weekly fee (EUR/week) Weekly fee per BRP per country Currency fee (EUR/MWh) Currency fee per BRP per country

74 Example of the Imbalance Amount Calculation and Invoicing Price Item or Fee Production Imbalance As a result of the BRP`s production imbalance calculation there is a 5 MWh production surplus in the BRP s production imbalance which the BRP sells to the ISR Invoicing is done from the BRP s point of view. In the invoicing a negative expense means compensation to the BRP Invoicing Information Production Balance Invoicing Information [MWh] Sale of imbalance power Purchase imbalance power 0 0 Sale of imbalance adjustment Purchase of imbalance adjustment 0 0 Production fee ,50 Purchase sum -136,50 Sale sum 550 Total 413,50 /MWh Up regulation price 40 Elspot price 30 Sales price for production imbalance 30 Purchase price for production imbalance 40 Production fee 2,10 Consumption Imbalance As a result of the BRP s consumption imbalance calculation there is a consumption deficit of -15 MWh which the BRP buys from the ISR The invoicing is done from the BRP s point of view In the invoicing a negative expense means compensation to the BRP Price Item or Fee Invoicing Information Consumption Balance Invoicing Information [MWh] Selling imbalance power 0 0 Purchase imbalance power Consumption Fee ,00 Consumption Imbalance Fee ,50 Purchase sum - 847,50 Sale sum - 0 Total -847,50 /MWh Up regulation price 40 Elspot price 30 Sales and purchase price for consumption imbalance 40 Consumption Fee 3,00 Consumption Imbalance Fee 7,50

75 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Data Communication Standards Information Services Online Services The NBS Model Impact on Information Access Rights ISR s Reporting Collateral Management Market Behavior Reporting

76 Communication Between Market Participants Overview The communication between market participants and ISR is enabled largely by the ISR s imbalance settlement IT system which is at the core of the ISR s activities The main communication channels to and from ISR are the market messaging service, Online Service and the Information Service Sharing settlement data between required stakeholders, but also of various reports with information on the imbalance settlement and the performance of the market A common data communication standard for the market messaging has been developed for the NBS Ensures that imbalance settlement information exchange of plans, trades, deliveries and meter readings is based on the same communication technology and formats in order to distribute the settlement information fluently between all market participants in the Nordic countries The Online Service is the primary interface towards BRPs and other market participants Settlement information from ISR is published in the service The Online Service consists of both a public part and a restricted part that requires login and contains settlement information that only the respective market participants can view

77 Data Communication Standards Market participants responsible for reporting data to ISR are obliged to use the common standard In Sweden and Norway all parties must sign an agreement for data communication with respective TSO in order to act on the market The common file format syntax will be based on ENTSO-E and ebix and the communication is done via e.g. SMTP, FTP, or web services Definition of the utilized file format is specified in the document A market model for data exchange, Business Requirement Specification (BRS) The User Guide prepared by the TSOs - for XML documents for NBS is a detailed User Guide for the ENTSO-E and ebix XML documents used in the Nordic Balancing System The latest versions of the documents can be found at

78 Information Services The ISR gives market participants the possibility to transfer settlement data (time series data) between the ISR s imbalance settlement IT system and their own IT systems through an Information Service The service is established as a web service, which provides the possibility for data requesting and transfer but also capabilities for information security; secure connection between two system and tools for market participant s authentication and authorization If the market participant wants to use the Information Service it needs to set up the connection with ISR After authorization a market participant can fetch time series data through the Information Service Market participant can only fetch data that the party is entitled to view, as instructed in the regulations

79 Information Services Information that can be sent or received Market participants (BRPs, DSOs, TSOs and NPS) can receive the settlement data than they re entitled to The Information Service provides the requested data to market participant s system if the requested data is available Available information is for example the following time series data: MEC data Detailed production plans Detailed reserves data Settlement calculation results Imbalance prices

80 Online Services The Online Service is the ISR s main communication tool and primary interface to market participants and other stakeholders. Consists of a public part, where public settlement information is published and viewed without login or authentication, and a restricted part that requires login and contains settlement information that only the respective market participants can view Settlement information from the imbalance settlement IT system is published at the Online Service, so that market participants and other stakeholders can view and download the information they are entitled to see. Also provides functionality for update of structure information and upload of settlement data. The user will also be able to monitor messaging related to the market participant

81 Online Services Public Part The public part of the online service contains the following information: List of active market participants and their roles Market participants contact information The BRPs of REs and DSOs in different MGAs List of MEC types and their respective description Approved Deposit Banks News and documentation Fees Public marked surveillance and KPI data

82 Online Services Restricted Part The restricted part will focus on the needs of the companies (and market participants) that are involved in the imbalance settlement and provide them with all the data that are included in their settlement Market Participant RE BRP DSO Online Service Features Task Manage contact information View current and historical structure information View and download settlement data (time series, balance report, production plans, reserves and) Register, update, close structure information View current and historical structure information Upload, change and view settlement data View invoice information (fees, prices, amounts) View and update collateral management information Report and update bilateral trade within given timeframe View imbalance, planned production & consumption data View and download settlement data (time series, balance report, production plans, reserves and MGA imbalances) View monitoring and KPI information Register, update, close structure information Upload, change and view and settlement data View current and historical structure information Report and update MGA exchange within given timeframe View MGA imbalances View and download settlement data (time series, balance report, production plans, reserves and MGA imbalances) View monitoring and KPI information

83 The Impact of the Nordic Imbalance Settlement Model on Information Access Rights The following slides show an example what settlement information regarding MGAs the BRPs, DSOs and REs can view and update in the proposal for the NBS model

84 The Impact of the Nordic Imbalance Settlement Model on Information Access Rights (Con d) S = Can see SU = Can see and update NBS model BRP1 BRP2 DSO1 DSO2 RE1 RE2 RE3 RE4 RE SU SU SU SU S SU S S SU S S SU S 7 S S S SU S S SU S S SU S 11 S SU 12 S S The example is based on the following assumptions BRP1 is a BPR for RE1 consumption in MGA1 RE2 production in MGA1 RE3 losses in MGA1 BRP1 imbalance in MGA1 RE2 consumption in MGA2 BRP1 (as a RE) consumption in MGA2 BRP2 is a BRP for RE4 production in MGA2 RE5 losses in MGA2 BRP2 imbalance in MGA2

85 ISR s Reporting ISR provides both public and restricted reports in accordance with the reporting responsibility The market participants can also order so called data packages from ISR The orders are managed through the online service The available data packages will be specified at a later stage There will probably be four different versions of each data package Preliminary (containing data from an open period) Final (containing data from a closed period) Invoiced (containing data from an invoice period) Corrected (with corrections done after invoicing) Reports available for market participants are statistics report to externals, KPI reports, transparency reports, reports to regulators, financial reports and settlement data packages The reports are either one-time reports or regularly compiled and distributed reports. Some of the reports are not stored in the system after they have been compiled; the distribution channel can be manual retrieval and/or distributed automatically (sent and/or published)

86 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Collateral Management Model Market Behavior Reporting

87 Collateral Management Model Overview Sufficient collaterals need to be put up as security by the BRPs to ensure that ISR can fulfil its obligations as the financial counterpart Collaterals are identified as economic security and it can be either a deposit on a pledged account or a bank guarantee The collateral model is agreed in the imbalance settlement agreement between the ISR and BRP The Nordic Imbalance Settlement Model uses a dynamic collateral model as it gives a correct collateral level related to the risk over time The collaterals will be recalculated weekly However, daily risk estimations and continuous monitoring will be performed and extraordinary collaterals are demanded when necessary Sufficient collaterals must at all times be posted in order to be granted access to the power market Failing to fulfil collateral requirements is considered as a breach of the imbalance settlement agreement and ISR will have the right to terminate the agreement with the BRP, i.e. exclude the BRP from the power market

88 Collateral Management Model Calculation The collateral demands are calculated with a predefined formula All BRPs will have their collateral demand calculated by the same formula ISR may, when required, deviate from the formula for calculating collaterals When this occurs a reason must be given and all BRPs affected by such circumstances will be treated the same way The formula for calculating collaterals will be published in the next version of the hand book

89 Contents Executive Summary Nordic Imbalance Settlement Model Settlement Structure Management Metering Settlement Data Reporting Imbalance Settlement Invoicing Communication Collateral Management Market Behavior Reporting Monitoring Key Performance Indicators Sanctions and Controls

90 Monitoring The ISR is responsible for monitoring BRPs' performance. In the monitoring process, data is gathered for calculating KPIs and evaluating the BRPs' and DSOs performance. ISR evaluates the outcome and identifies which market participants are underperforming, misusing the market power or conducting other unprofessional misbehavior e.g. in the regulation power market. If KPIs show that, for example, certain BRP s imbalance is constantly on an insufficient level, ISR can take action to terminate the imbalance settlement agreement of respected party. All KPIs are published at the Online Service for BRPs, DSOs and other market participants to review and compare their position anonymously with other participants.

91 Key Performance Indicators KPIs are utilized to measure the performance of different market participants ISR will develop KPI that are critical for TSO to follow up the market behavior ISR will develop in co-operation with Market Participants the KPIs that help the Market Participants to improve their performance and quality Examples of the KPIs that will be published DSO reporting behavior RE behavior BRP imbalances a comparison between required time series DSO should report and how many data series are missing (quality of reported metering data) a comparison of data improvement and accuracy inside the balance window follow-up of when retailer stops buying energy standard deviation to Spot trades and bilateral trades imbalance index for each BRP of the calculated imbalance volumes per interest period

92 Sanctions and Controls If a BRP has systematic imbalances sanctions can be imposed and finally terminate the contract if the situation is not corrected To ensure the prerequisites for BPRs to have minimum imbalance, the DSOs are being monitored by the ISR for data quality. As it is not legally possible for any of the involved TSOs or the ISR to impose sanctions on the DSOs, KPIs calculated by the ISR are used by the national regulators to issue economic sanctions for those DSOs which do not live up to predefined minimum levels. The control process has three steps: ISR evaluates the BRP performance This is done with the help of the market surveillance data and KPIs ISR initiates a dialogue to investigate reasons and possibilities to improve TSOs and/or regulators can place sanctions on the BRP or the DSO If the dialogue ends in a state where the BRP performance is still found too low, the process to terminate the imbalance settlement agreement is started

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