Transcript Update on Balancing

Balancing Update
Stakeholder Group Meeting - 4 November 2009
2
Experiences of Interim CBB Arrangements
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More discrete pricing (6 prices) has allowed more cost reflective pricing
Useful for offsetting longer runs on expensive GB BMUs particularly over
demand peaks
Cannot readily use for GB energy balancing as not fully integrated into
dispatch tools
Active constraints on GB system potentially exacerbated
Flexibility of product i.e. windows currently allow for longer duration product
and also for product shaping
NGET and RTE can indicate requirements ahead of gate closure through Early
Notification Process
Greater refinement could be delivered with more pricing periods e.g. across
current periods often selling and buying in different hours within the window
3
NGET and RTE Offer Prices £/MWhe
250.00
£/MWhe
200.00
150.00
100.00
50.00
0.00
1
2
3
4
5
IFA Gate
NGET Offer Price £/MWh
RTE Offer Price £/MWhe
6
NGET and RTE Bid Prices £/MWhe
35.00
30.00
25.00
£/MWhe
20.00
15.00
10.00
5.00
0.00
-5.00
1
2
3
4
IFA Gate
NGET Bid Price
RTE Bid Price
5
6
5
NGET Offer Price and Synchronised GB Offer Price
(GB gate closure)
500.00
£/MWhe
400.00
300.00
200.00
100.00
0.00
1
2
3
4
5
6
IFA Gate
GB Sync Offer 100th MW £/MWh
GB Sync Offer 250th MW £/MWh
STOR £/MWh (Contract)
NGET CBB Offer Price £/MWh
GB Sync Offer 500th MW £/MWh
6
NGET Cross Border Balancing Prices vs. GB Wholesale
(APX)
240.00
£/MWh
190.00
140.00
90.00
40.00
-10.00
1
2
3
4
5
IFA Gate
APX £/MWh
NGET Offer Price
NGET Bid Price
6
7
RTE Cross Border Balancing Prices vs. France Wholesale
(Powernext (EPEX))
130.00
110.00
£/MWhe
90.00
70.00
50.00
30.00
10.00
-10.00
1
2
3
4
5
IFA Gate
Powernext £/MWh
RTE Offer Price
RTE Bid Price
6
8
Accepted Offer Volumes by TSO by IFA Gate
03-Mar-09 to 23-Sep-09
60000
55000
50000
MWh
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
GATE 1
GATE 2
GATE 3
GATE 4
Date
NG Instigated BUY
RTE Instigated BUY
GATE 5
GATE 6
9
Accepted Bid Volumes by TSO by IFA Gate
03-Mar-09 to 23-Sep-09
0
-5000
-10000
MWh
-15000
-20000
-25000
-30000
-35000
-40000
GATE 1
GATE 2
GATE 3
GATE 4
Date
NG Instigated SELL
RTE Instigated SELL
GATE 5
GATE 6
10
Overview of Development of Enduring Solution
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Key concerns have been identified
 Ramp management – some manageable solutions identified
 Shaping flexibility – some manageable solutions identified
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Potential problems relating to 1-hour product
 UK demand/energy position can vary considerably across periods
 Demand triggers frequently occur on the hour: TV Pick-Ups; demand tele-
switching; price-sensitive demands; pumping deload etc
 Need to minimise concurrent generation deloads or IFA ramp deloads –
frequency control considerations
 Longer duration products could help avoid high cost or inappropriate actions
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IS issues
 The enduring solution have to be fully integrated to NGET BM Systems
 Twice yearly IS releases (Baselines)
11
NGET Proposes a 2-Hour Product
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In addition to 1-hour products
A 2-hour CBB product would mitigate many of the identified risks.
Overcomes the major risk of failing to secure a second hourly product
on demand peaks
Reduces uncertainty associated with potential system events and
secures additional time to put alternatives in place if required
Helps preserve critical STOR (short notice / short duration plant e.g.
OCGTs
Can also be used to resolve ‘ramp management’ issues as part of an
integral energy/system transaction
12
Common NGET / RTE Working Programme
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Revision of the target date for enduring solution to November 2010
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NGET and RTE work together to analyse in depth the possibility to
secure a 2-hour product
 Target : conclusion by February 2010
 Whether a solution is found, costs and planning re-evaluation will allow to
define a target date for implementation, as far as possible implemented
simultaneously with go-live
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Both Operators are today working towards the implementation of the
enduring solution for UK-FR CBB solution
 Target Go live : achieving go-live in November 2010
 On the basis of the one hour duration product and the already agreed
adaptations, augmented with the result of the study when available