Transcript 2016 07 27_28 - I-SEM - Rules Working Group Meeting IX

I-SEM – Market Rules Working Group
Meeting IX
27th & 28th July2016
1
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
2
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
3
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
4
Supplier Charging in CRM Settlement
 Publication of RA paper did not allow for updating of draft rules;
 Resolution of escalation requires changes to the calculation to account for
gross demand solution;
 Drafting will be based on assumptions around how this can be
implemented (e.g. – net demand provided with scaling factor or
adjustment quantity, etc.) post discussions with data providers;
 The new market rules will now need an “Interim” rules section to provide
for retaining an approach similar to current settlement;
 In a manner similar to Section 7 of the current T&SC, provisions will be
time limited (e.g., “Until the date that is 12 months after the Market Start
Date, paragraph x.xx shall be replaced with…”;
 Amended drafting will be included in the consolidated text;
5
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
6
Structure of TSC
I-SEM go live
X
New TSC effective
Y
Part A
Registration, provision of technical
data/standing data, availability
data, submission of bids in
readiness of I-SEM go live, credit
cover/collateral obligations,
MO/SO obligations to publish
market/system information.
Settlements, Meter data, Queries,
Settlement revisions, Data
retention, Disputes etc
Part B
Part A: Existing TSC - applies to obligations and requirements to be undertaken or
completed in relation to trading periods prior to X (xx.00 hours on aa/bb/cccc)
Part B: applies to all obligations and requirements to be undertaken or completed in
relation to trading periods after X.
Part C: Transitional Arrangements
7
TSC Parts A & B – Table of Contents
Part A (existing)
Part B
1. Introduction and Interpretation
A. Introduction and Interpretation
2. Legal and Governance
B. Legal and Governance
3. Data and Information Systems
C. Data and Information Systems
D. Balancing Market Data Submission
4. Pricing
E. Imbalance Pricing
5. Categorisation of Units & Rules for
Special Units
F. Calculation of Payments and Charges
•
Imbalance payments and
charges
•
CRM settlement
6. Financial and Settlement
G. Financial and Settlement
7. Interim Arrangements
H. Interim Arrangements
Glossary
Glossary
Appendices
Appendices
8
TSC – Appendices
A. Standard Letter of Credit
B. Dispute Resolution Agreement
C. Form of Authority
D. List of Agreed Procedures
E. Data Publication
F. Other Communications
G. Settlement Statements and Documents
H. Participant & Unit Registration &Deregistration
I. Offer Data
J. Market Operator & System Operator Data Transactions
K. Market Data Transactions
L. Meter Data Transactions
M. Capacity Market Data Transactions (replaces Determination of Capacity Payments)
N. Detailed Flagging Rules
(replaces Operation of the MSP Software)
O. Instruction Profiling
9
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
10
Chapter A – Introduction and Interpretation
1. Introduction
2. Code Scope and Objectives
3. Appendices and Agreed Procedures
4. Interpretation
• Terminology and editorial changes (eg replacement of references to “Pool”)
• Changes to explain the scope of the TSC in the context of the broader I-SEM
• Code Objectives unchanged
11
Chapter B – Legal and Governance
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Governing Law
Jurisdiction
Term
Priority
Parties and Accession Process
De Minimis Threshold
Participation and Registration of Units
Registration of Error Supplier Unit (Deleted)
Nominated Electricity Market Operator
Registration of Trading Site
Registration of an Interconnector
Intermediaries
Deregistration of Units
Market Operator
Obligations on Parties
Balancing Market Operations Timetable
Market Audit, Consultation and Information
Sharing
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
Modifications
Default, Suspension and Termination
Dispute Resolution
Supplier of Last Resort
Limitation of Liability
Force Majeure
Waiver
Severance
Third Party Beneficiaries
No Association
Assignment
Entire Agreement (Deleted)
Publication of the Code
Confidential Information
Freedom of Information Acts
Data Protection
Notices
12
Section B.7 Participation and Registration of Units
 No significant changes are being proposed to the registration
process;
 Current approach of –
 Application for registration as a Party;
 Application for registration of a unit under a Party;
 Registration of a Participant falls from this;
 Separate Participant required for units in different jurisdictions;
 Generator Units still registered to a Trading Site;
 Trading Sites still require associated or Trading Site Supplier
Unit;
13
Section B.7 Participation and Registration of Units
 Settlement approach to use single settlement document gives rise
to two significant changes to the entity model –
 No need for Netting Generator Units;
 No need for Accounts;
 Under new approach, no need to separate a participant’s supplier
units from their generator units for invoicing at Account level;
 Netting Generator function to move consumption from the supplier
Account to the generator Account becomes redundant;
14
Section B.7 Participation and Registration of Units
SEM model
I-SEM model
15
Section B.7 Participation and Registration of Units
 Settlement Classifications from the existing T&SC do not appear
relevant in the new market rules;
 Exception rules set out in section 5 are considered in main text;
 Therefore Price Maker / Price Taker classifications not being
continued;
 Generator units will be identified by their characteristics rather than
a set classification;
 This leads to removal of Variable Price Taker, Autonomous Price
Taker, etc. Managed through “dispatchable”, “controllable”
characteristic;
 References to Autonomous Generators will be removed from other
sections during creation of consolidated text
16
Section B.7 Participation and Registration of Units
Wind
Power
Unit
Controllable
Dispatchable
Y
Y
Y
Y
Y
N
Y
N
N
Mapping to SEM classification
Normal unit; can do anything a
thermal unit can do. VPMG in SEM.
Controllable wind unit; subject to
control instructions but can't follow
dispatch. VPTG in SEM.
Uncontrollable wind unit.
APTG in SEM
17
Section B.7 Participation and Registration of Units
 Additional data will be required in the registration process;
 Whether generator is dispatchable or controllable;
 Links to other codes –
 whether unit is a Capacity Providing Unit;
 the NEMO with which the unit is trading;
 whether the unit is availing of AoLR services;
 Specific registration data requirements from section 5 of current
T&SC now included in general registration sections;
 Includes Aggregated Generators and Autoproducer Sites;
18
Section B.7 Participation and Registration of Units
 Range of units is expanded from generator and supplier units;
 New entities are –
 Assetless Trading Unit – to account for imbalance settlement of
assetless traders in the ex-ante markets;
 Trading Unit – to allow Autoproducer Sites trade net positions in
the ex-ante markets;
 Capacity Providing Units are not a unit per se but a characteristic of
a unit;
19
Section B.8 Nominated Electricity Market Operator
 New section added to cover NEMO(s);
 Requires Participation in ex-ante markets only through NEMO(s) as
designated or approved by the RAs;
 Places obligations on the NEMO(s) themselves;
 This covers –
 obligations with respect to data provision (scheduling agent);
 registration of a unit for imbalance settlement;
 registration of a unit for shipping purposes;
 Current drafting may be refined as it is possible that not all clauses
are needed to cover compliance with T≻
20
Section B.9 Registration of Trading Site
 Relocation of provisions in existing TSC Section 5 (Special Units)
 Pumped Storage Unit
 Aggregated Generator Unit
 Interconnector Unit
 Autoproducer Sites
 Demand Sites
 Removal of Netting Generator Unit concept
21
Section B.10 Registration of an Interconnector
 No significant changes for Interconnectors;
 Current suite of entities is believed to be still relevant for I-SEM;
 SO/SO Trades settled through Interconnector Residual Capacity
Unit;
 Metering imbalances settled through Interconnector Error Unit;
 Interconnector Owner still relevant;
 Drafting attempts to define Interconnector Administrator more as a
function and less as a person;
 Interconnector Unit retained – expect that this will be used for
cross border shipping;
22
Section B.17 Modifications
 Largely editorial changes, except:
 B.17.25 possible interim arrangement for expedited Modification process to enable
RAs to direct modifications to the TSC or Agreed Procedures during first 6 months:
 Material error or inconsistency in the Code
 Material inconsistency between Codes
 Intended to cover issues that surface early in market operation with potentially
significant and unintended outcomes
 Included for consideration/feedback on
a) the need for such a provision – would the Urgent Modifications process
suffice?
b) the criteria for it being used; and
c) the process
23
Section B.18 Default, Suspension & Termination
 Revised text based on existing provisions of T≻
 Paragraphs re-ordered to provide more logical order than current
structure;
 Mapping document provided to demonstrate where paragraphs
were moved to and identify where paragraphs split;
 Added concept of “non financial” default;
 Party can be in default as a result of a material breach that may not
explicitly relate to payment or Credit Cover default;
 Given non-payment will automatically trigger a credit call which is
likely to trigger a credit cover increase requirement, provisions of
B.18.3.2 (Credit Default) will happen under this process
24
Section B.18 Default, Suspension & Termination
 Removed provision of 2.238A where default on multiple invoices
with same due date is classed as one default;
 Application of single settlement document means there will only be
one document to which a default can relate;
 Added references to defaults under the CMC and NEMO rules as
potential grounds for seeking a suspension;
 Removed consideration of a participant being “in breach of a
Suspension Order”;
 Suspension Order will set out remedy to default and what will apply
in the event that remedies are not applied.
25
Section B.19 Dispute Resolution
 Pricing Disputes = disputes over calculation of imbalance settlement prices
 to be raised within 5 WD; i.e. prior to Imbalance Settlement Statements
 provision for speedy resolution of Manifest Errors
 Otherwise, Imbalance Settlement Prices cannot be reopened without a Dispute
Resolution Board determination
 Settlement Query route to Dispute retained , but no separate “Settlement Dispute”
 Materiality thresholds to apply for reopening Price or Settlement Reruns
 To be approved by RAs
 Required Credit Cover Disputes
 Reasonable endeavours to resolve within 90 minutes
 Referred to Dispute Resolution Board if not resolved within 5WD (or 10WD if
parties agree to extend)
26
All other
disputes
Pricing Dispute
Price Calculation
MO corrects
and
republishes
price ASAP
No Settlement Query
raised, but issue
subsequently identified
Settlement Query
raised within 20 WD
of last scheduled
settlement
statement
Party Raises
Dispute
Within 5 WD
No response in 20WD
MO declares or
Agrees a
Manifest Error
has occurred
Credit Cover
Requirements that
affect
default/suspension
Settlement data
No Manifest Error
Reasonable
endeavours on
affected parties to
resolve within 5WD
of published price
Other matters
Party raises
dispute no more
than 20 WD
after becoming
aware of an
event, and in
any event within
2 years
Party raises
dispute
MO response
Party raises No
dispute within
5WD
Reasonable
Yes endeavours to resolve
Closed
within 90 minutes
No
Yes
Dispute Resolution
Board
Disputes need to clear
materiality threshold for
re-pricing or re-settlement*
No
After 5WD:
Party provides
MO with 5WD
extension
Yes
* Thresholds may be different for
re-pricing and re-settlement
Section B.22 Force Majeure
Drafting largely unchanged from previous circulated draft:
•
Clarify that FM would not relieve a participant of its
obligations to pay imbalance charges or difference payments;
•
Remove the obligation on the Market Operator to determine
whether a participant’s claim of an FM event is valid
•
We have reinstated provision regarding the unlikely event that
a FM event directly affects a Participant’s ability to make a
payment – interest payable.
28
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
29
Chapter 3: Data and Information Systems
 Initial Legal Draft following the approach suggested in the Plain and Revised Plain
English:
 Definitions of key terms finalised and included in the updated Glossary;
 Validation of Data Sets and Default data moved to section 5.2 of Chapter D
‘Data Submission’ ;
 Inclusion of additional definition of ‘Meter Data Operator’ and ‘Meter
Channel Communications’ as per Mod_04_15;
 Numerical rounding definitions still outstanding pending confirmation from
vendors.
30
Chapter 3: Data and Information Systems – REMIT form
 Changes to Remit Notification Form are limited to section ‘Important Information’:
“SEMO understands that there is an obligation to report ‘Standard Contract’ data for
the following unit types in the SEM: Predicatable Price Maker Generators, Variable
Price Taker Generators, Predictable Price Taker Generators, Demand Side Units and
Interconnectors. For further details please refer to the ‘SEM REMIT Reporting
Workshop QA’ published on the SEMO website on the 26th June 2015.”
This is to be replaced with:
“There is an obligation to report ‘Standard Contract’ for all units trading in wholesale
energy products in the SEM, as defined in ‘Commission Implementing Regulation (EU)
No 1348/2014’ and the ‘REMIT Regulation Regulation (EU) No 1227/2011’ .”
 Also references in inputs tables to ‘Applicable Units’ (GU/DSU) are to be removed.
31
Chapter 3: Updates on Reporting
 Feedback on reporting requirements has triggered the following actions:
 TSO to provide info on processes and source data for Load and Wind
Forecasts; in cases where third parties are involved, these may only be
completed by Market Trial;
 Although the Technical Specification (TS) volumes have been finalised, a
number of requests continue to be assessed, such as:
o provision of Curtailment information and System Warnings;
o closer to real time publications of Dispatch Instructions, Availability,
Schedules, SO-SO Trades, Transmission Outages and Operating Reserves;
 Anything not included in the above list or in the TS should be pursued through a
change request as per circulated process.
32
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
33
Balancing Market Data Submission
• Areas of note:
– Removed provisions no longer required:
• Energy Limit Factor;
• Relationships between Warmth States and Start Cost
submissions;
• Use of data in scheduling systems;
• Start and End Test Flags;
• Minimum Stable Generation Quantity from SOs.
– Added provisions relating to VTOD set selection;
– Edited provisions relating to PN submission;
– General wording changes.
34
Validation Technical Offer Data Set Selection
• Changes to TOD submitted in line with
timelines required for validation;
• Changes in VTOD set number accommodated
closer to Trading Day;
• Still under consideration:
– Validation rules for accepting/rejecting change in
VTOD set number;
– Gate Closure for VTOD set selection.
35
PN Submission
• Changed language on Physically Feasible PNs:
– Submitted “consistent with TOD”.
• Removed references to different formats:
– This detail to be moved to procedures /
appendices.
36
Wording Changes
• Gate Closures, e.g. Gate Closure 1:
– Instead of “13:30 on the day prior to the day on which the
Trading Day commences”;
– Changed to “13:30 two days prior to the Trading Day”.
• Inc and Dec prices:
– Removed indeces for Inc/Dec price submission (imposed by MO
as part of Calculation of Payments and Charges);
– Clarified drafting on Inc prices being greater than or equal to
Dec prices.
• Proposed for Consolidated Version:
– Remove reference to “Trading Period”, change all to “Imbalance
Settlement Period”.
• Welcome feedback on preferences for clarity.
37
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
38
Calculation of Payments and Charges – Energy
• Areas of note:
– Added functionality for refusal of Contracted
Quantities following Credit Assessment;
– Added functionality for unit representing
Scheduling Agent imbalances;
– Updated algebra for Contracted Quantities being
MW not MWh;
– Clarified supplier charge settlement of Trading Site
Supplier Units;
– Adjusted Residual Error Volume Charge algebra.
39
Refusal of Contracted Quantities
• Moves potential imbalance from participant (who
does not have sufficient Posted Credit Cover) to
Scheduling Agent;
• Process followed by MO on receipt of contracts:
1. Assess Required Credit Cover, including “Traded Not
Yet Delivered”;
2. If Required Credit Cover exceeds Posted Credit
Cover, refuse the smallest remaining Contracted
Quantity in its entirety, setting its value to zero for
all settlement functions;
3. Repeat Steps 1 and 2 until Required Credit Cover is
less than Posted Credit Cover.
40
Scheduling Agent Imbalances
• Each NEMO acting as Scheduling Agent registers unit for
imbalances in the Balancing Market;
• Imbalances can be due to:
– Incorrect notification of Contracted Quantities;
– Refusal of Contracts due to Credit Assessment.
• Ex-Ante Quantity calculated as sum of the final net
positions of all internal participants and cross-border flows:
– For participants, sum of all Contracted Quantities (positive and
negative) relevant to the ISP;
– For cross-border flows, sum of final market cross-border flow
results for that ISP.
• Deemed Metered Quantity is zero.
41
Scheduling Agent Imbalances
• Balanced:
-ve
+ve
+ve
+ve
+ve
Generation
and Supply
Positive
Trades
-ve
-ve
-ve
-ve
Generation
and Supply
Negative
Trades
CrossBorder
Imbalance
42
Scheduling Agent Imbalances
• Imbalance due to incorrect Contract Notification:
-ve
+ve
+ve
-ve
-ve
+ve
+ve
+ve
Generation
and Supply
Positive
Trades
-ve
-ve
Generation
and Supply
Negative
Trades
CrossBorder
Imbalance
43
Scheduling Agent Imbalances
• Imbalance due to Contract Refusal:
-ve
+ve
+ve
+ve
+ve
Generation
and Supply
Positive
Trades
-ve
-ve
-ve
-ve
-ve
Generation
and Supply
Negative
Trades
CrossBorder
Imbalance
44
Algebra in MW
• Clarity: contracts notified in MW, not MWh;
• Algebra changed to multiply quantity by time in hours:
– If period of trade greater than or equal to ISP, multiply by DISP (0.5hrs)
– means hourly product evenly divided into each half hour;
– If period of trade less than ISP, multiply by duration of trade (e.g. 15
minute product within a half hour ISP would be multiplied by 0.25).
𝑄𝐸𝑋𝛾
=
𝑞𝑇𝐷𝐴𝑥ℎ × 𝑀𝑖𝑛 𝐷𝑇𝐷𝐴𝑥 , 𝐷𝐼𝑆𝑃
𝑥
+
𝑞𝑇𝐼𝐷𝑥ℎ × 𝑀𝑖𝑛 𝐷𝑇𝐼𝐷𝑥 , 𝐷𝐼𝑆𝑃
𝑥
45
Trading Site Supplier Unit Supplier Charging
• Current approach is that TSSUs are charged when the site is net
importing;
• Made adjustments to Supplier charging sections to make this
explicit, e.g.:
𝐶𝐼𝑀𝑃𝑣𝛾 = 𝑀𝑖𝑛
𝑄𝑀𝐿𝐹𝑢𝛾 +
𝑢 ∈𝑠
𝑄𝑀𝐿𝐹𝑣𝛾 , 0
× 𝑃𝐼𝑀𝑃𝑦 × 𝐹𝐶𝐼𝑀𝑃𝛾
𝑣 ∈𝑠
• Propose TSSU not exposed to Residual Error Volume Charge (noninterval metering not relevant to TSSU) or Currency Adjustment
Charge (does not have retail customers for passing through costs).
46
Residual Error Volume Charge
• Adjustments to account for Residual Meter Volume Interval
Proportion (RMVIP) per Currency Zone:
𝐶𝑅𝐸𝑉𝑣𝛾
= 𝑅𝑀𝑉𝐼𝑃𝑒𝑦 × 𝑀𝑖𝑛
+
1 − 𝑅𝑀𝑉𝐼𝑃𝑒𝑦
Proportion applied to Interval Metering
𝑄𝑀𝐿𝐹𝑣𝛾 , 0 × 𝑃𝑅𝐸𝑉𝑦 × 𝐹𝑁𝐼𝐸𝑃𝑣𝛾
Proportion applied to Non-Interval Metering
47
Changes for Consolidated Version
• Tweak to qBOA algebra for considering Outturn Availability in decs:
– Applies in all areas of rules where the inputs for Dec calculations are
stated.
𝑞𝐷𝐴𝑢𝑜ℎ 𝑡 = 𝑀𝑖𝑛 𝑞𝐷𝑢𝑜ℎ 𝑡 , 𝑞𝐷𝐴𝑢(𝑜−1)ℎ 𝑡
𝑞𝐷𝐴𝑢
𝑜−1 ℎ
𝑡 = 𝑀𝑖𝑛 𝑞𝐷𝑢
𝑞𝐷𝑢
𝑜=0 ℎ
𝑡 = 𝑀𝑖𝑛 𝑞𝐹𝑃𝑁𝑢ℎ 𝑡 , 𝑞𝐴𝑉𝐴𝐼𝐿𝑂𝑢ℎ 𝑡
𝑜−1 ℎ
𝑡 , 𝑞𝐴𝑉𝐴𝐼𝐿𝑂𝑢ℎ 𝑡
𝑞𝐵𝑂𝑈𝑅𝑢
𝑖=0 ℎ
𝑡 =0
𝑞𝐵𝑂𝐿𝑅𝑢
𝑖=0 ℎ
𝑡 =0
48
Changes for Consolidated Version
• Removal of subscript beta when denoting BOA
opening time, e.g. PBOuβoiγ;
• If require separate unit for Scheduling Agent
Cross-Border Shipping Function;
• Remove references to “Autonomous”
generation.
49
Calculation of Payments and Charges – Energy
•
•
•
•
•
•
•
•
•
•
•
•
•
CIMBuγ, the Imbalance Component Payment or Charge;
CPREMIUMuγ, the Premium Component Payment or Charge;
CDISCOUNTuγ, the Discount Component Payment or Charge;
CAOOPOuγ, the Offer Price Only Accepted Offer Payment or Charge;
CABBPOuγ, the Bid Price Only Accepted Bid Payment or Charge;
CCURLuγ, the Curtailment Payment or Charge;
CUNIMBuγ, the Uninstructed Imbalance Charge;
CIIuγ, the Information Imbalance Charge;
CFCub, the Fixed Cost Payment or Charge;
CTESTuγ, the Testing Charge;
CIMPuγ, the Imperfections Charge;
CREVvγ, the Residual Error Volume Charge;
CCAvγ, the Currency Adjustment Payment or Charge.
50
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
51
Dispatch Quantity and Maximisation - T&SC 4.55 to 4.60
 As previously advised, provisions regarding MO requirements to produce Profiles
based on TSO’s Dispatch Instructions, including Maximisation, don’t change;
 The Maximisation formula has just been updated to take into account I-SEM
variables:
Under a Maximisation Instruction,

QMuγ 

QD' uγ  MaxQDuγ , MinSTMCut,

DISP



 References to Accepted Quantity, only used in MSP software, have been
removed.
 Provisions to be included in Chapter F ‘Payments and Charges’ at the
consolidated stage.
52
Appendix O: Instruction Profiling
 Appendix O Initial Legal draft expands the Plain English versions with the
inclusion of profiling details for qBOA quantities;
 These provisions have only recently been developed with the vendor and might
still be subject to minor adjustments;
 Profiling for qBOA is an additional process with a separate inputs and output
created at both Imbalance Pricing and Imbalance Settlement Periods (IPP & ISP);
 Current Profiling and calculation of Dispatch Quantities maintained for
Uninstructed Imbalance calculation at ISP;
 Removed references to Operational Modes as not yet finalised at this stage;
53
Appendix O: Current Requirements - 1/3
 Input Dispatch Instruction recorded and validated from EDIL;
MW
DI to DSYNC
DI SYNC to XMW
Time
54
Appendix O: Current Requirements - 2/3
 Input Dispatch Instruction recorded and validated from EDIL;
 Create a Profile joining all the DI according to Technical Offer Data (TOD);
MW
Unit reaches XMW
RUR3/4/5
Dwell 2/3
RUR2
RUR1
MINGEN
LUR3
Soak Time 2
LUR2
LUR1
Soak Time 1
Dwell 1
DI to DSYNC
RDR5
Dwell 1
RDR4
Dwell 2/3
RDR3/2/1
LUR2
DLUR1
Block Load
DI SYNC to XMW
Time
55
Appendix O: Current Requirements - 3/3
 Input Dispatch Instruction recorded and validated from EDIL;
 Create a Profile joining all the DI according to Technical Offer Data (TOD);
 Calculate Dispatch Quantity as the area under the curve.
MW
Unit reaches XMW
RUR3/4/5
Dwell 2/3
RUR2
RUR1
MINGEN
LUR3
Soak Time 2
LUR2
LUR1
Soak Time 1
Dwell 1
DI to DSYNC
RDR5
Dwell 1
RDR4
Dwell 2/3
RDR3/2/1
LUR2
DLUR1
Block Load
DI SYNC to XMW
Time
 This process is unchanged in I-SEM to calculate QDuh for Uninstructred Imbalance.
56
Appendix O: Additional I-SEM Requirements – 1/3
 In I-SEM additional profiles are needed for qBOA calculation at both IPP & ISP;
 Two types of Instructions are used:
 Regular physical Dispatch Instructions (DIs) recorded and validated from EDIL; and
 Pseudo Dispatch Instructions (PDIs) created by the MO according to set rules;
target Instruction level for these can only be either FPNs or target Instruction level
of previous instruction;
 Other new data inputs are required:
 Final Physical Notifications (FPNs);
 Commercial Offer Data (CODs);
 New field ‘Effective Until Time’ specific for MWOF DIs;
57
Appendix O: Additional I-SEM Requirements – 2/3
 The list of identified additional PDIs is the following:
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
EDIL
Instruction
Code or Instruction
Combination Code
Description
PSYN
n/a
SYNC
Continuous open acceptance after SYNC
PMWO
n/a
MWOF
Continuous open acceptance after MWOF
PDES
n/a
DSYN
Continuous open acceptance after DSYNC
GOOP
PPGE
PGEN
Continuous open acceptance after PGEN
PMXN
n/a
MXON
Continuous open acceptance after MXON
PMXF
n/a
MXOF
Continuous open acceptance after MXOF
POFF
n/a
n/a
Continuous open acceptance keeping unit off
PCOD
n/a
n/a
Continuous open acceptance after COD change
PISP
n/a
n/a
Continuous open acceptance after Imbalance Settlement Period boundary
58
Appendix O: Additional I-SEM Requirements – 3/3
 Based on all DIs and PDIs a subset of individual profiles are created according to
the following rules:
 DI profile: adjust to target instruction level and maintain that level as required by
TODS (e.g. ‘min on time’, ‘min off time’ etc.); the new step is: as soon as TODs
allows it, the profile is adjusted by ramping to and maintaining FPNs;
 PDI profile: maintain the target instruction level of the previous instruction, until
the next DI or PDI; then the profile is adjusted, according to TODs, by ramping to
and maintaining FPN;
 Each instruction (DI or PDI) opens a new order/BOA, therefore all instructions
need a dedicated profile used to calculate a qBOA;
 The inputs to the qBOAuoih(t) calculation are the instruction profile for the current
order (qDuoh(t)), and the instruction profile for the previous order (qDu(o-1)h(t)).
59
Appendix O: Summary of Instruction Profile in I-SEM
 Three different Instruction Profile types will be needed in I-SEM:
 Type 1: Instruction Profile for Uninstructed Imbalance only: no changes in inputs,
outputs or methodology from the current SEM;
 Type 2:
 Inputs: same as Type 1 plus FPNs;
 Methodology: as in Type 1 profile according to TODs until target instruction
level is reached; maintain level as required by TODs (e.g. ‘min on time’, ‘min
off time’ etc.); as soon as TODs allow it, adjust profile by ramping to and
maintaining FPNs;
 Output: PN adjusted Instruction Profile;
 Type 3:
 Inputs: same as Type 1 plus FPNs, CODs and Pseudo DIs;
 Methodology: maintain the target instruction level of the previous
instruction, until the next DI or PDI; then the profile is adjusted, according to
TODs, by ramping to and maintaining FPN;
 Output: Pseudo Instruction Profile;
 Each area delineated by FPNs, Type2 or Type3 represents a qBOA;
60
Appendix O: PSYN – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PSYN
n/a
SYNC
Continuous open acceptance after SYNC
MW
SYNC
Issue
SYNC
Effective
Min On Time
FPN
time
61
Appendix O: PSYN – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PSYN
n/a
SYNC
Continuous open acceptance after SYNC
MW
Ramp to FPN
SYNC
Issue
SYNC
Effective
Min On Time
FPN
time
62
Appendix O: PSYN – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PSYN
n/a
SYNC
Continuous open acceptance after SYNC
MW
PSYN
Issue time and effective time
SYNC
Issue
SYNC
Effective
qBOA1
Min On Time
qBOA2
FPN
time
63
Appendix O: PMWO – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMWO
n/a
MWOF
Continuous open acceptance after MWOF
MW
MWOF
FPN
time
64
Appendix O: PMWO – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMWO
n/a
MWOF
Continuous open acceptance after MWOF
Ramp to FPN
MW
MWOF
FPN
time
65
Appendix O: PMWO – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMWO
n/a
MWOF
Continuous open acceptance after MWOF
PMWO
Issue time and effective time
MW
MWOF
qBOA1
qBOA2
FPN
time
66
Appendix O: PDES – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PDES
n/a
DSYN
Continuous open acceptance after DSYNC
MW
DESY
FPN
Min Off Time
time
67
Appendix O: PDES – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PDES
n/a
DSYN
Continuous open acceptance after DSYNC
MW
DESY
FPN
Ramp to FPN
Min Off Time
time
68
Appendix O: PDES – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PDES
n/a
DSYN
Continuous open acceptance after DSYNC
MW
DESY
FPN
qBOA1
qBOA2
PDES
Min Off Time
time
69
Appendix O: PPGE – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
GOOP
PPGE
PGEN
Continuous open acceptance after PGEN
MW
PGEN
Min On Time
FPN
time
70
Appendix O: PPGE – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
GOOP
PPGE
PGEN
Continuous open acceptance after PGEN
MW
Ramp to FPN
PGEN
Min On Time
FPN
time
71
Appendix O: PPGE – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
GOOP
PPGE
PGEN
Continuous open acceptance after PGEN
MW
PPGE
Issue time and effective time
qBOA1
Min On Time
qBOA2
FPN
time
72
Appendix O: PMXN – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMXN
n/a
MXON
Continuous open acceptance after MXON
MW
MXON
FPN
time
73
Appendix O: PMXN – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMXN
n/a
MXON
Continuous open acceptance after MXON
Ramp to FPN
MW
MXON
FPN
time
74
Appendix O: PMXN – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMXN
n/a
MXON
Continuous open acceptance after MXON
PMXN
Issue time and effective time
MW
MXON
qBOA1
qBOA2
FPN
time
75
Appendix O: PMXF – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMXF
n/a
MAXOF
Continuous open acceptance after MXOF
MXOF
MW
MXON
MWOF
FPN
time
76
Appendix O: PMXF – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMXF
n/a
MAXOF
Continuous open acceptance after MXOF
MW
Ramp to FPN MXOF
Ramp to FPN MXON
Ramp to FPN
MWOF
FPN
time
77
Appendix O: PMXF – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PMXF
n/a
MAXOF
Continuous open acceptance after MXOF
PMXN MXOF
MW
MWOF
PMWO
MXON
qBOA1
qBOA2
PMXF
qBOA6
FPN
qBOA5=0
time
78
Appendix O: POFF – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
POFF
n/a
n/a
Continuous open acceptance keeping unit off
MW
DESY
FPN
Previous
qBOAs
Min Off Time
time
79
Appendix O: POFF – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
POFF
n/a
n/a
Continuous open acceptance keeping unit off
MW
DESY
FPN
Follow FPN
Previous
qBOAs
Min Off Time
time
80
Appendix O: POFF – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
POFF
n/a
n/a
Continuous open acceptance keeping unit off
MW
DESY
FPN
Previous
qBOAs
PDES
Min Off Time
POFF
qBOA1
time
81
Appendix O: PCOD – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PCOD
n/a
n/a
Continuous open acceptance after COD change
MW
Participant Changes COD
Stable MWOF
FPN
time
82
Appendix O: PCOD – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PCOD
n/a
n/a
Continuous open acceptance after COD change
MW
Participant Changes COD
Stable MWOF
Ramp to FPN
FPN
time
83
Appendix O: PCOD – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PCOD
n/a
n/a
Continuous open acceptance after COD change
MW
PCOD
Stable MWOF
qBOA1
qBOA2
FPN
time
84
Appendix O: PISP – 1/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PISP
n/a
n/a
Continuous open acceptance after Imbalance Settlement Period boundary
MW
ISP Boundary
Stable MWOF
FPN
time
85
Appendix O: PISP – 2/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PISP
n/a
n/a
Continuous open acceptance after Imbalance Settlement Period boundary
MW
ISP Boundary
Stable MWOF
Ramp to FPN
FPN
time
86
Appendix O: PISP – 3/3
Pseudo
Instruction
Code
Pseudo Instruction
Combination Code
Corresponding
Instruction Code or
Instruction
Combination Code
Description
PISP
n/a
n/a
Continuous open acceptance after Imbalance Settlement Period boundary
MW
PISP
Stable MWOF
qBOA1
qBOA2
FPN
time
87
Appendix O: Multiple DIs/PDIs with Same Effective Time
STEP 1:
 Duplicate MWOF (same level of the SYNC) issued at the end of Min On Time;
 Both PSYN and PMWO are triggered at the same time.
MW
Duplicate MWOF
Sync MWOF
SYNC
Min On Time
FPN
time
88
Appendix O: Multiple DIs/PDIs with Same Effective Time
STEP 2:
 Duplicate MWOF (same level of the SYNC) issued at the end of Min On Time;
 Both PSYN and PMWO are triggered at the same time.
MW
Duplicate MWOF
PSYN
PMWO
Sync MWOF
Ramp to FPN
SYNC
Min On Time
FPN
time
89
Appendix O: Multiple DIs/PDIs with Same Effective Time
STEP 3:
 Validations applied as per O.15 and O.17 to remove redundant DIs/PDIs
MW
Duplicate MWOF
PSYN
PMWO
Sync MWOF
Ramp to FPN
SYNC
Min On Time
FPN
time
90
Appendix O: Multiple DIs/PDIs with Same Effective Time
STEP 4:
 qBOAs created by remaining DIs/PDIs
MW
PMWO
Sync MWOF
Ramp to FPN
SYNC
qBOA1
Min On Time
qBOA2
FPN
time
91
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
92
Parameter Setting Process
 Paper sent to WG members proposed process to be followed for
parameter setting;
 Parameter assessment;
 Develop tools for studies;
 Carry out studies;
 Develop and publish recommendations and reports;
 Proposed to interact further with the WG members through
schedule of meetings up to December 2016;
 Depending on study approach, this could support a staged release
of reports;
93
Parameter Setting Process
94
Parameter Setting Process
 Parameter assessment –
 Identify parameters in the design documentations;
 This will look at decision papers, draft rules and current T≻
 Assessment of parameter list based on –
 Is it actually needed for I-SEM?
 How the parameter is to be determined;
 Timing of determination;
 Logical grouping;
 Assessment criteria for studies;
95
Parameter Setting Process
 Logical Groupings proposed –
 Imbalance Settlement;
 Pricing;
 Credit Cover;
 Operational parameters;
 General (governance based);
 CRM parameters
96
Parameter Setting Process
 Category Groupings for determination
 Category A – annual parameters for review;
 Category B – annual parameters based on consulted
methodology;
 Category C – parameters set “from time to time”;
 Category D – “parameters” that are in fact variables in the
market rules;
 At this time, all parameters are considered Category A;
 Later parameter consultation will propose enduring categorisation
for each;
97
Parameter Setting Process
 Study approach to be adopted for initial setting –
 Market Modelling
 Where there is no historical information, parameters will need
detailed modelling to be carried out;
 Historical Trend Analysis
 Existing market data can be used to provide insight on certain
parameter types, e.g. Credit Cover parameters;
 Heuristics
 Where the parameter is more policy based, a heuristic approach
can be applied;
98
Parameter Setting Process
 CRM parameters to be covered in separate consultation to be
issued in Q3 this year;
 Tariffs, including Imperfections Price, Residual Error Volume Price,
Currency Cost Price, etc. will be considered as part of price control
process separately;
 A number of other items identified as parameters are based on
current practices (Loss factors, forecasts, etc.);
 This leaves parameters relating to ETA only;
 Review identified 34 parameters that need to be considered as part
of this process.
99
Parameter Setting Process
 Considering the logical groupings proposed, the following is how
this is considered –
100
Parameter Setting Process
 Credit Cover
Parameter Name
Unit
SEM/I-SEM
Factor
SEM
Per year
Historical Trend Analysis
Credit Cover Adjustment Trigger
%
SEM
Per year
Historical Trend Analysis
Fixed Credit Requirement for
Generator Units and for Supplier Units
€
SEM
Per participant;
Per year
Historical Trend Analysis
Generator Suspension Delay Period
Days
SEM
Jurisdictional
Historical Assessment Period for the
Billing Period
Days
SEM
Per year
Historical Trend Analysis
%
SEM
Per year
Historical Trend Analysis
Supplier Suspension Delay Period
Days
SEM
Jurisdictional
Heuristics
Undefined Exposure Period for Energy
Days
SEM
Per year,
Jurisdictional
Historical Trend Analysis
Analysis Percentile Parameter
Level of the Warning Limit
Granularity
Analysis
Heuristics
101
Parameter Setting Process
 Imbalance Settlement
Parameter Name
Unit
SEM/I-SEM
Aggregated Settlement Period
N/A
I-SEM
Definition (hours)
Heuristics
%
I-SEM
Per ISP;
Per year
Heuristics
€
SEM
per billing period;
€
SEM
per query event
€/MWh
I-SEM
Information Imbalance
Quantity Weighting Factor
Factor
I-SEM
Information Imbalance
Tolerance
MWh
I-SEM
Discount for Over Generation
Factor
Factor
SEM
Engineering Tolerance
Factor
SEM
MW
SEM
Factor
SEM
Factor
SEM
Imbalance Weighting Factor
Materiality Threshold for
Recalculation
Settlement Recalculation
Threshold
Information Imbalance Price
MW Tolerance
Premium for Under
Generation Factor
System Per Unit Regulation
Factor
Granularity
Per unit;
Per year
Per unit;
Per PN submission period;
Per ISP; Per year
Per unit;
Per PN submission period;
Per ISP; Per year
Per unit;
Per ISP;
Per year
Per year
Per trading day;
Per year
Per unit;
Per ISP; Per year
Analysis
Historical Trend Analysis
Heuristics
Heuristics
Heuristics
Heuristics
Historical Trend Analysis
Historical Trend Analysis
Historical Trend Analysis
Historical Trend Analysis
Heuristics102
Parameter Setting Process
 Pricing
Parameter Name
Unit
SEM/I-SEM
%
SEM
Per year
Heuristics
Market Back Up Price
Average Reference Quantity
MWh
I-SEM
Per ISP
Heuristics
Curtailment Price Quantity
MWh
I-SEM
Per ISP
Heuristics
De Minimis Acceptance
Threshold
MWh
I-SEM
Single Value
Modelling
Price Averaging Reference
Quantity
MWh
I-SEM
Single Value
Modelling
Market Price Cap
€/MWh
SEM
Per year
Heuristics
Market Price Floor
€/MWh
SEM
Per year
Heuristics
Pricing Recalculation
Threshold
Granularity
Analysis
103
Parameter Setting Process
 Operations
Parameter Name
Unit
SEM/I-SEM
Granularity
Analysis
Daily time for fixing
SSII/SIFF for a Trading Day
Time
I-SEM
Long Notice Adjustment
Factor
Factor
I-SEM
Per Notification Time Interval;
Modelling
System Imbalance
Flattening Factor
Factor
I-SEM
Per trading day (corresponding
to the possible range of SSII)
Modelling
Heuristics
104
Parameter Setting Process
 NEXT STEPS
 Intend to make our parameter list available to members of the
Working Group immediately;
 Fuller assessment will be shared next month;
 Welcome comments from members on  Parameter list (did we miss any?);
 Logical Groupings;
 Proposed analysis approach;
 Also welcome input on process of engagement;
105
Agenda – Day 1
 Welcome and house-keeping;
 Structure of the T≻
 Legal and Governance (Chapters A & B);
 Data and Information Services (Chapter C);
 Data Submission(Chapter D);
 Payments and Charge (Chapter F – part 1);
 Instruction Profiling (Appendix O);
 Parameters Setting Process;
 AOB & Next Steps.
106
Agent of Last Resort
 AOLR role to be assigned through MO license
 Regulatory oversight will be maintained for:
 Scope of AOLR Functions
 Eligibility to participate
 Fee setting
 Detailed operating procedures will form a schedule to a
operating or service level agreement, subject to its own
change management process
 Development of detailed procedures not required with
TSC, and yet to be finalised
107
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
108
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
109
Grid Code Modifications Update
28 July 2016
110
Presentation Overview
•
•
•
•
Gap analysis summary
Main areas requiring amendment
Proposed timeline for mods
Questions
111
Gap Analysis Summary
• OC1 Demand Forecasting
– Ensure that timelines align (zero/low impact)
• OC2 Operational Planning
– Ensure that timelines align (zero/low impact)
• OC8 Operational Testing (OC10/11 in NI)
– Reflect the modified treatment of testing in ISEM
(low/med impact)
112
Gap Analysis Summary
• SDC1 and SDC2, Schedule and Dispatch Codes
– Changes required for ISEM (high impact)
• GC General Conditions
– Review only (zero/low impact)
• Glossary
– Review/amend to account for ISEM (medium
impact)
113
Main Sections Requiring Amendment
114
OC2 Operational Planning
• Committed Outage Programme
– Published end Sept for following calendar year;
– ENTSO-E Preliminary Plan by 01 Nov, then a Final
Plan by 01 Dec;
– OC2 permits TSO/User negotiation post-Sept;
115
OC2 Operational Planning
• COP - Options
– Leave “as is”, but there is a risk that a failure to
negotiate a change to the COP could impact
Interconnector capacity;
– Change OC2 to align more explicitly with ENTSO-E,
but this means a delay to publishing the COP for
the following calendar year.
116
OC8 Operational Testing (OC10/11 in NI)
• Clear notice requirements dependent on the
potential system impact of User tests;
– Minor and Significant Tests have different minimum
notice requirements;
– The current overarching obligations to submit test
proposals at the earliest opportunity unchanged;
– Significant Tests will require at least 5 Business Days’
notice, or a minimum of 2 with TSO agreement;
– Minor tests can be accommodated within day;
– Other specific notice requirements (e.g. for
commissioning) will remain unchanged;
117
OC8 Operational Testing (OC10/11 in NI)
• TSO will still need to approve or reject test
proposals submitted in advance;
• PNs replace the Nomination Profile;
– Users will submit a Unit Under Test PN as per their
their approved profile via the MPI;
– Restated in SDC1 to cover all testing requested by
Users.
118
SDC1 Scheduling
• Establish an obligation on the TSOs to
develop, maintain and publish:
– Methodology
– Parameters
used to discharge the TSO’s role in SDC1
and SDC2
• Obligation to consult with Users in the
development of the process document.
119
SDC1 Scheduling
• Additional objectives to address ISEM
principles:
– PNs as starting point of the scheduling process;
– Minimise the cost of TSO actions based on Merit
Order(s);
– Minimise TSO actions ahead of Gate Closure 3;
– Some data required D – 2 for CACM compliance.
120
SDC1 Scheduling
• Data Submissions to TSO:
– Some Operational Data required 13:30 D–2 to
comply with EU Reg 2015/1222 (CACM/CGM)
• Availability Declarations;
• Technical Parameters*;
– Commercial Offer Data, required by 13:30 D–1*;
– Physical Nominations required by 13:30 D–1*;
– *Redeclarations/revisions up to Gate Closure;
– Default data consolidated into each section;
121
SDC1 Scheduling
• Interconnector data submissions
– Availability & Technical Parameters – Owner;
– PNs submitted by the Shipping Agent;
• Merit Order term retained but redefined;
– Effectively two Merit Orders, one for Incs, one for
Decs.
– Merit Order – include bids/offers from NG.
122
SDC1 Scheduling
• Indicative Operations Schedules
– Optimisation Time Horizon redefined;
– Initial IOS by 16:00 for next Trading Day, no
change;
– Scheduling process rerun regularly and IOS
republished;
– IOS’s to include information on ST, MT and LT
horizons;
123
SDC1 Scheduling
• Additional issues accounted for in IOS
– PNs or FPNs;
– Factors used by the TSO to comply with SI’s, SR’s
and the Licence (covers Priority Dispatch);
– Factors used to minimise TSO actions before Gate
Closure (covers LNAFs, SIFFs, etc.);
– Reference to “Target Reservoir Levels” removed.
124
SDC2 Dispatch
• Objective
– match generation and demand by utilizing
“Physical Notifications and Merit Orders derived
pursuant to SDC1…..”
• Procedure
– Certain Operational Data can be changed up until
Gate Closure 3;
– But scheduling process continues up to RT.
125
SDC2 Dispatch
• Dispatch Instructions
– As far as is reasonably practicable, DIs normally
issued at any time following Gate Closure 3, but
TSO retains the right to issue DIs before GC3;
– New DI included in the form “Unit 1 to 205MW
effective until --:-- hours”;
– Test flags will still be applied to DIs for units under
test for the relevant portion of the DI.
126
Glossary
• Attempt to seek alignment between Grid Code
and TSC where feasible;
• Some new definitions (e.g. PNs);
• Some old ones will disappear (e.g. Nomination
Profile, Gate Window);
• Some amendments (e.g. Merit Order, Gate
Closure, etc.)
127
Proposed Timeline
• Mark-ups to be available for next MRWG meeting
– MRWG to review, consider and comment so they are
satisfied that the Grid Code correctly reflects the
operational regime in ISEM;
• Joint Grid Code Review Panel 11 Oct 2016 –
formal presentation of the modification proposal;
– Formal consideration of proposed changes
– But the JGCRP/GCRP may not consider changes to the
ISEM arrangements;
128
Proposed Timeline
• Followed by public consultation in NI (6 to 8
weeks);
• Consideration of all responses (Dec 16 – Jan 17);
• Modified drafts presentation to the following
JGCRP/GCRP meetings (around Jan 2017);
• Final drafts to RAs February 2017;
• Changes become effective at ISEM Go-Live.
129
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
130
Financial & Settlement
 Minor amendments  Updated text on exchange rates to reflect different rates that will apply with
respect to imbalance, RO and difference settlement;
 Removed distinction of SEM Trading and SEM Capacity Clearing Accounts to
line up with single Settlement Document approach;
 Reference to Settlement Recalculation Threshold removed. Now included in
section B;
 Removed calculation of CDAYd for generators and suppliers. No longer used
within rules;
 Amended calculation of Actual Exposure given that ESDpr can be replaced
with the value of the single Settlement Document;
 Removed references to “Historical Assessment for Billing Periods”;
 Corrected references;
131
Financial & Settlement
 Larger amendments: Settlement Reallocation Agreements –
 Added legal drafting for the SRA process;
 Based on the process steps from the Plain English document;
 As previously discussed, terminology is Principal Participant (the one taking all
financial liability) and the Secondary Participant;
 One Principal Participant can have many Secondary Participants;
 Each Secondary Participant can only have one Principal Participant;
 Further, a Principal Participant cannot be a Secondary Participant to another
agreement;
 SRAs to apply on any billing runs from the date of agreement;
 Agreements can be open-ended;
132
Financial & Settlement
 Larger amendments : Settlement Reallocation Agreements –
 Settlement will be in the currency of the Principal Participant;
 May change drafting of paragraph G.17.2.1(e);
 Trading Day Exchange Rate as on date of action is used (action either Credit
Assessment or billing calculation);
 Cancellation by Participants is facilitated by application of end-date to the
agreement;
 Cancellation is intended to be an orderly exit of the agreement;
 This allows the Secondary Participant time to put required Credit Cover in
place;
 Cancellations can also be tied to Suspension Orders;
133
Financial & Settlement
 Larger amendments: Settlement Document calculation –
 Amended the approach to reflect the issue of a single Settlement Document;
 First step is to calculate total liability for energy payments and charges
(including settlement of difference payments and charges);
 Then, calculation total liability for capacity payments and charges;
 These are calculated without Settlement Reallocation Agreements;
 The SRA amount for any Secondary Participant is the sum of their liabilities
calculated above;
 For the Principal Participant, each SRA amount is set to the corresponding SRA
of all its Secondary Participants;
134
Financial & Settlement
 Larger amendments: Settlement Document calculation –
 This gives the following formula –

 SRAPapbc is empty for the Secondary Participant
a in p
 SRASpbc is empty for the Primary Participant
 So, for the Secondary Participant SDApbc becomes zero as SRASpbc = (SLEpb +
SLCCpc)
 And for the Principal Participant, SDApbc becomes the total of its own
liabilities along with the liabilities of all other participants with which it has an
SRA
135
Financial & Settlement
 Larger amendments: Settlement Document calculation –
 This gives the following formula –
 Only on the monthly billing cycle will the SLEpb and SLCCpc both be
populated;
 For all other billing weeks of the year, the SLCCpc variable will be empty as
there is no weekly Capacity billing;
 In the event that there is an upheld query on Capacity settlement that
requires an ad-hoc resettlement, the same holds true with regard to SLEpb;
136
 Larger amendments: Market Operator Charging basis –
 Opted to retain the current approach of Fixed MO Charges on
suppliers and generators with Variable MO Charges on suppliers;
 If other approaches as put forward in the short paper last month are
desired, these can be addressed in the tariff setting process;
 This will have the capability to set VMOP to zero if that approach is
preferred;
 The application of Max() function in the CVMO calculation is
consistent with the current market rules;

 


VMOCpb  VMOPy  Max    SNDLFvh,0

 
v in p h in b

137
Financial & Settlement
 Larger amendments: Market Operator balancing cost –
 MO cash management still under discussion between RAs and TSOs;
 In the interests of having a complete baseline, the approach in the
current T&SC has been adopted;
 Formula used is simpler than the existing T&SC given the single
Settlement Document approach;
 This means that the MO balancing cost can be represented as the sum
of all SDApbc
 The detail of how this is to be funded will be explored through the
price control process;
138
Financial & Settlement
 Proposed amendment: Setting Administered Price to Back Up Price.
 Initially deferred to parameter setting process because of lack of
transparency on the methodology for calculation of Back Up Price;
 However, details are now available: Back Up Price is the weighted
average of the reference quantity of most recently traded Intraday and
Day-Ahead quantities applicable to that Imbalance Settlement Period;
 It is proposed to set Administered Price equal to Back Up Price in the
consolidated version unless negative feedback is received;
 The proposed alternative (average of BOA prior to the event) could
still be retained for future analysis; however considerations need to be
given to the level of prices close to an Electrical System Collapse event.
 This is to advance a baseline version of the Code as complete as
possible.
139
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
140
Administered Scarcity Price – Demand Control Triggers
Voltage Reduction:
 Customer Voltage Reduction in Northern Ireland,
•
in accordance with section OC4.4.5 of the Northern Ireland Grid Code,
 Emergency or Exceptional Voltage Control in Ireland,
•
in accordance with OC4.4.6 of the Ireland Grid Code,
Automatic Load Shedding:
 Automatic Load Shedding in Northern Ireland,
•
in accordance with section OC4.4.8 of the Northern Ireland Grid Code,
 Automatic Low Frequency Demand Disconnection in Ireland,
•
in accordance with section OC5.5 of the Ireland Grid Code,
Planned or Emergency Manual Disconnection:
 Planned or Emergency Manual Disconnection in Northern Ireland,
•
in accordance with section OC4.4.6 of the Northern Ireland Grid Code,
 Demand Control on the instructions of the TSO in Ireland,
•
in accordance with section OC5.4 of the Ireland Grid Code.
141
Administered Scarcity Price – Demand Control Quantity
142
Administered Scarcity Price – Other Comments
 Reserve Scarcity Price Curve:
 the exact form and values to be included in CRM
Parameters Consultation.
Systems State Alerts:
 likely to accompany Reserve Scarcity and Demand
Control but they are not a precondition.
Governance of CRM parameters:
 CRM parameters consultation.
143
Ex Ante Reference Price - Market Back Up Price
• Market Back Up Price
– volume-weighted average price of the QMBUPAR
of the most recently traded Intraday Trade
Quantities (qTDAxuh) and Day-Ahead Trade
Quantities (qTIDxuh) for the Imbalance Settlement
Period γ, where QMBUPAR is the Market Back Up
Price Average Reference Quantity.
• Fall back provisions in the instance that above
values not available
144
Ex Ante Reference Price - Curtailment Price
• Curtailment Price
– Curtailment Price (PCURLuγ) for each Generator
Unit u as the volume-weighted average price of
the Intraday Trade Quantities (qTIDxuh) and DayAhead Trade Quantities (qTDAxuh) for the
Generator Unit u for the Imbalance Settlement
Period γ
• Fall back provisions in the instance that above
values not available
145
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
146
Calculation of Payments and Charges – Capacity
• Areas of note:
– Adjustments to Stop-Loss Limit;
– Aligned treatment of Autoproducer Trading Sites with ETA
treatment for Difference Charges;
– Clarified Capacity Charge and Difference Payment settlement of
Trading Site Supplier Units;
– Included loss adjustments when considering Capacity Quantities
for Difference Charges;
– Updated algebra for Contracted Quantities being MW not MWh;
– Adjusted algebra for Capacity Payments for price being €/MWy;
– Edited provisions for Socialisation Fund to reflect CRM3
decision.
147
Stop-Loss Limit
• Factors used depend on what was active at time the contract
was awarded:
– Could be different for t-1 or t-4 auction awarded capacity,
primary vs secondary awarded capacity.
• Primary Trade SLL retained, and party buying extra capacity in
secondary trade has SLL increased:
– Consider positive revenues (actual and forecast) in Stop-Loss Limits.
𝐶𝑆𝑆𝐿𝐴𝛺𝑏
=
𝑀𝑎𝑥
𝛾 ∈ 𝑏′ ≤𝑏
𝑞𝐶𝛺𝑛 × 𝑃𝐶𝑃𝛺𝑛 ×
𝑛 ∈ 𝛾,𝑞𝐶𝐶𝑂𝑀𝑀𝐼𝑆𝑆 ≠0
1
𝐼𝑆𝑃𝐼𝑌𝑦
× 𝐹𝑆𝐿𝐿𝐴𝑛 , 0
148
Autoproducer Trading Sites
Trading Site (TS)
Generator Unit (GU)
Trading Site Supplier
Unit (TSSU)
Trading Unit (TU)
• Trading Unit represents net position of Trading Site in ex-ante
markets;
• Assess obligations being met on Trading Site level:
– Obligation on Generators – Trading Unit needs to have TSSU demand
added to get from net position to generation position.
• Approach needs to be kept under review following clarity on
Capacity Requirement consultation.
149
Trading Site Supplier Unit Charges and Difference Payments
Trading Site (TS)
Generator Unit (GU)
Trading Site Supplier
Unit (TSSU)
Trading Unit (TU)
• TSSU only receives Imbalance Difference Payments if site is net
importing:
– Only scenario when exposed to Imbalance Price, and therefore needs
hedge.
• TSSU pays Capacity Supplier Charge if site is net importing.
• Approach needs to be kept under review following clarity on
Capacity Requirement consultation.
150
Socialisation Fund
• CRM3 decision, fund is to cover:
– Shortfalls in Difference Payments (current
implementation);
– Seasonal variations in Capacity Payments and Supplier
Capacity Charges;
– Within-year surplus/shortfall in Supplier Capacity Charges.
• New section for fund to be used for all Capacity Market
settlement:
– Suspend and Accrue only applies to Difference Payments;
– Provision to allow for adjustments to the balance to
account for other means of funding shortfalls.
151
Losses on Capacity Quantity
• Capacity Requirement and Auctions:
– Expected to be “at the station gate” – losses not
included.
• Trades in Markets include losses:
– Day-ahead and intraday “at the trading boundary”,
balancing loss adjusted.
• To compare like-with-like in Difference
Charges, Capacity Quantities need to be loss
adjusted.
152
Capacity Payments
• Clarified price in capacity contracts is €/MWy:
– Previous draft assumed €/MW in each Imbalance
Settlement Period.
𝐶𝐶𝑃𝛺𝛾 =
𝑞𝐶𝛺𝑛 × 𝑃𝐶𝑃𝛺𝑛
𝑛 ∈ 𝛾,𝑞𝐶𝐶𝑂𝑀𝑀𝐼𝑆𝑆 ≠0
𝐼𝑆𝑃𝐼𝑌𝑛 1
×
𝐼𝑆𝑃𝐼𝑌𝑦
153
Algebra in MW
• Clarity: contracts notified in MW, not MWh;
• Algebra changed to multiply quantity by time in hours:
– If period of trade greater than or equal to ISP, multiply by DISP (0.5hrs)
– means hourly product evenly divided into each half hour;
– If period of trade less than ISP, multiply by duration of trade (e.g. 15
minute product within a half hour ISP would be multiplied by 0.25).
𝑄𝐸𝑋𝛾
=
𝑞𝑇𝐷𝐴𝑥ℎ × 𝑀𝑖𝑛 𝐷𝑇𝐷𝐴𝑥 , 𝐷𝐼𝑆𝑃
𝑥
+
𝑞𝑇𝐼𝐷𝑥ℎ × 𝑀𝑖𝑛 𝐷𝑇𝐼𝐷𝑥 , 𝐷𝐼𝑆𝑃
𝑥
154
Changes for Consolidated Version
• Adjustments to load following function (FSQCγ) if
required to align with Capacity Requirement:
– Current approach does not scale non-participating
capacity along with other capacity;
– Constant reduction assumes non-participating
capacity is constantly available, increasing hole-in-thehedge;
– Proposed adjustment:
• Scale adjustment due to non-participating capacity along
with other capacity.
155
Changes for Consolidated Version
Current
FSQCγ = 1
Proposed
FSQCγ = 1
Demand
Demand
Load-following Scaling Factor
Load-following Scaling Factor
156
Changes for Consolidated Version
• Prices to be used in stop-loss limits for secondary
traded quantities:
– Intention in CRM2 decision was that the primary auction
price for the volume would be used to set stop-loss limit:
• If based only on revenue, a unit could take on another’s obligation
without any exposure;
– Not possible to track primary prices with centralised
auction based secondary trading mechanism;
– Proposed adjustment:
• Base secondary trade stop-loss limits on maximum of secondary
trade price, or the price of the first primary auction for the
Capacity Year in question;
• Known in advance of year, can be taken into account in secondary
trading bids and offers.
157
Changes for Consolidated Version
• Adjustments to Difference Charge ratchet:
– Ensure unit is not exposed to Difference Charges multiple times
for the same volume (current implementation);
– Prevent units from meeting their capacity requirement but
trading out of their balancing requirements:
• Maintain direct link between capacity market exposure and balancing
market exposure:
• If trade ex-ante to increase balancing market exposure it decreases
capacity market exposure, and vice versa.
– Proposed adjustment:
• Limit the Day-ahead and Intraday Difference Charges, and Tracked
Difference Quantity for those charges, to the Ex-Ante Quantity
(QEXuγ);
• Track positive balancing market quantities separately, not limited by
QEXuγ.
158
Calculation of Payments and Charges – Capacity
•
•
•
•
CCCΩc, the Capacity Payment;
CDIFFCTOT Ωγ, the Total Difference Charge;
CCCvc, the Capacity Charge;
CSOCDIFFPvc, the Difference Payment
Socialisation Charge;
• CDIFFPACHIEVEvd, the Achievable Difference
Payment.
159
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
160
Capacity Market Code - Content
 Introduction and Background
 Pre-Auction Processes
 Capacity Auction
 Registries
 Secondary Trading
161
The Plain English Guide
 The Capacity Market Code Plain English guide is the first step to developing the code.
 This Meeting
 First Release of Plain English Guide
 Administrative + some other sections yet to be developed.
 For the 1st September meeting.
 Complete Plain English Guide
 For the 6th October meeting
 First draft of Capacity Market Code
 For the 10th Nov meeting
 Completed draft of Capacity Market Code
 This presentation is intended to provide a guide to the document.
162
SEM Committee Decisions
CRM1
T&SC
CMC
PLAIN
ENGLISH
(JULY)
CMC
PLAIN
ENGLISH
(SEPT)
CRM2
CRM3
Administrative Scarcity Pricing
Market Reference Price
Supplier Charges
Strike Price
Credit Cover
Socialisation
Participation
Mandatory Bidding
Security Standard
De-rating
Load following
Administrative Scarcity Pricing
Socialisation
Strike Price
Contract Duration
Cross-Border Participation
Interconnector De-Rating
Secondary Trading
Price Indexation
Stop Loss Limits
Transitional Auctions
Roles and Responsibilities
Implementation Agreement
Treatment of Exchange Rate
Commissioning Window
Implementation Agreement
Performance Bond
Roles and Responsibilities
Auction Frequency and Volume
Capacity Auction Offer Format
Demand Curve
Market Power
Capacity Auction Design
Auction Monitoring and Audit
Contract Duration
Governance
Modification Process
Conflict of interest
Disputes
Information/ Communication
163
Future Consultations & Decisions
 Consultations still to be conducted by RA’s:
 De-Rating & Capacity Requirement
 Expected release in August
 Locational issues and how managed through CRM
 Expected release in August
 CRM Parameters Consultation
 Expected release in September
 SEM Committee yet to decided on handling of lumpiness issue in Capacity Auction
164
Roles / Conventions
 CRM Delivery Body (a TSO Function)
 Runs Qualification, the Capacity Auction, Secondary Trading
 Monitors progress of development of new plant / new capacity (next version)
 Code development and administrative functions (next version)
 Note - Settlement is by SEMO under the Trading and Settlement Code
 Some conventions
 While CRM decisions refer to capacity auction “bids”, we use “offers”. This
maintains consistency with usage of both offers and bids for Secondary Trading.
 As with the T&SC, no distinction is made between Regulatory Authorities and the
SEM Committee. They are all “Regulatory Authorities”
 The Plain English guide has been written without implying the existence of a
separate “Reliability Option” on the grounds that there is no separate instrument
– the CMC and T&SC fully define them.
 We use Capacity Market Unit as a unit in the Capacity Market. Will align terms
with Trading and Settlement Code which uses Capacity Providing Unit.
165
Context of Capacity Auctions
 Capacity Year starts at 11 pm on 30th September and runs for 12 month (which is
midnight at the start of 1 October CET). This is the start of Trading Day.
 There can be multiple auctions for a Capacity Year
 There will be a T-4 auction for each Capacity Year starting from 2021.
 There will be a T-1 auction (and, if needs be, T-2, T-3) auctions for those
Capacity Years
 There will be T-1 auctions for the transitional Capacity Years from 2017 to 2020.
 The Plain English guide describes the steps leading up to a Capacity Auction.
 A key reference point in the Plain English guide is the Auction Timetable. This will be
published by the RA’s for each Capacity Auction.
166
Capacity Market Code - Content
 Introduction and Background
 Pre-Auction Processes
 Capacity Auction
 Registries
 Secondary Trading
167
Auction Timetable
 Deadline for Modification Proposals
 De-Rating Curves released
 The Auction Information Pack publication
 Qualification timings:
 The Final Auction Parameter
publication date
 Auction offer submission window
(start and end date/times)
 for providing qualification data.
 Window for conduct of the
Auction
 for opting out (may be same date as
above).
 RA approval of Auction results.
 for determining provisional
Qualification results
 for release of provisional Qualification
results
 for applying for review (and later for
completing review).
 for release of final Qualification results
 Auction Results Publication
 Date for submission of
Performance Bonds
The timetable is a good reference for
understanding the process. Some
items may be added or removed. A
challenge will be allowing adequate
time between steps while keeping the
overall time reasonable for a T-1
168
auction.
Participation
 A Capacity Market Unit (CMU) is the term we are using for a unit eligible to participate
in the Capacity Auction:
 This must be eligible to participate in the balancing market under the T&SC.
 A CMU can include
 Demand Side Units
 Interconnectors
 Aggregator Generator Units
 Other Generating Units
 Capacity Aggregator Units (a portfolio of units).
 Aggregation of variable and below de-minimis units under control of
one participant. [“Capacity Aggregator Unit” term may be dropped]
 “New Capacity” can participant. This can be from a unit that is yet to be
commissioned, or from an expansion of capacity of an existing unit.
 New Capacity only eligible for multi-year award of capacity if its per unit cost is
not less than the New Capacity Investment Rate Threshold
169
De-Rating Curves
 These are the subject of a separate consultation but the basic idea is to release the
following form of curves by Technology Class.
 These are applied to the “Initial Capacity”, a working term used in the Plain English
guide that reflects the capacity before de-rating that can be supplied to the grid.
 The aim is to base ”Initial Capacity” on Maximum Export Capacity (MEC) where this
measure is defined, though further work is required for multi-unit sites and where
MEC is not defined.
170
De-Rating and New Capacity and Existing Capacity
De-Rated
30 MW
20 MW
100 MW
New Capacity, never before
offered in Auction.
23.1 MW
New Capacity previously
awarded capacity for the
Capacity Year.
De-rating factor = 91%.
De-rated capacity = 18.2 MW
18.2 MW
Existing Capacity
120 MW unit.
De-rating factor = 0.92
De-rated
capacity = 110.4 MW
De-rated 100 MW of
existing capacity:
=110.4–18.2=92.2MW
150 MW unit.
De-rating factor = 0.89
De-rated
capacity = 133.5 MW
De-rated 30 MW of new
capacity:
=133.5–110.4=23.1MW
92.2 MW
Capacity in Auction: 92.2 + 23.1 = 115.3 MW
171
Auction Information Pack
Released by CRM Delivery Body and including:
 De-Rating Curves
 The Capacity Requirement for the Capacity Year
 How much capacity has already been procured for the relevant Capacity Year
 The Auction Price Cap
 The Existing Capacity Price Cap;
 The New Capacity Investment Rate Threshold;
 The Annual Capacity Payment Exchange Rate
 De-Rating Tolerance Rules.
 Performance Bond levels and schedule for providing.
 The Auction Timetable
 Details of what is required to participate in Auction
 Potentially, Annual and Billing Period Stop Loss Limits (not listed in document currently)
172
Qualification
 A Process which:
 Collects/verifies data applicable to participation in the auction.
 Determines de-rated capacity that can be offered into auction.
 Establishes implementation schedules for development of new capacity being
offered into auction for the first time
 Establishes eligibility of new capacity for multiple year (up to 10) duration
 Establishes applicable offer caps.
 Qualification is a “continuous” process
 Meaning that data provided for one Qualification is good for others (though must
be up to date prior to deadline for Qualification for a specific Capacity Auction).
 Opting out:
 Alternative to qualification (restrictions on opting out will be in next version)
 Must indicate intentions – e.g. closing down or continuing to operate
 Will not earn capacity revenue or have capacity obligations.
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Qualification
 “Information Required for Qualification” describes data, not how it is assessed.
 Identifies participant, unit, unit type, technology class and capacity zone.
 Whether the unit comprises Existing Capacity, New Capacity or a combination.
 Capacity already held by unit for Capacity Year [As check for consistency]
 De-rated capacity sought for Existing and New Capacity
 Unit capacity data (before de-rating)
 Information on firm transmission capacity.
 Details for New Capacity (to be included in next version of Plain English Guide),
including whether unit costs exceed the New Capacity Investment Rate Threshold
 Applications for a Unit Specific Price cap for Existing Capacity. [Where RA
approval required, may treat as processes separate from Qualification]
 For aggregated units, additional information required on contribution of
renewable energy and clean DSU’s and because de-rating is applied to:
 Each unit in a “Capacity Aggregator Unit” By technology class volume for
Aggregator Generator Units.
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Qualification
 “Requirements for Qualification” describes how data is assessed.
 Data must be complete and accurate
 Units must satisfy requirements to participate in the Balancing Market
 Requested de-rated capacity must be consistent with de-rating factor for physical
unit (with and without additional augmentation), any tolerances allowed, and
capacity already awarded in prior auctions.
 Outputs with respect to each of Existing Capacity or New Capacity (separately) are
 De-rated capacity
 Duration – 1 year or up to 10 years.
 Allowable offer cap (Existing Capacity / New Capacity or Unit Specific Offer Cap)
 Design allows for a simple Review process prior to raising a dispute.
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Capacity Market Code - Content
 Introduction and Background
 Pre-Auction Processes
 Capacity Auction
 Registries
 Secondary Trading
176
The Auction – Existing Capacity and New Capacity
Existing Capacity
New Capacity
No
Capacity
No Capacity
No Capacity Awarded,
Capacity Awarded Awarded, does not satisfies New Capacity
Awarded from Prior satisfy New Capacity
Investment Rate
Auction Minimum Threshold
Threshold
Capacity
Awarded
from Prior
Auction

Participates, Existing Capacity
Offer Cap, 1-year duration.
Does not participate in Auction








Read across this table from
the left. A row represents
the components of a single
physical unit

Participates, New Capacity Offer
Cap, 1-year duration
Participates, New Capacity Offer
Cap, Up to 10-year duration
Does not participate.
Different offer caps apply to each
component, otherwise as above.



Only existing capacity
participates. Participant to
manage the risk of not getting
cleared.
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Stylised Representation of a Capacity Auction Offer
Price (€/MW per year)
Auction
Price Cap
Existing Capacity
New Capacity
New Capacity
(Not Satisfying New Capacity
Investment Rate Threshold)
(Satisfying New Capacity
Investment Rate Threshold)
Qualification Process to
Apply for a Unit Specific
Price Cap
Flexible
Duration 10 Yrs
Existing
Capacity
Price Cap
Inflexible
Duration:1 Yr
Inflexible
Duration 10 Yrs
Inflexible
Duration:1 Yr
Inflexible
Duration:1 Yr
De-Rated Capacity (MW)
178
Demand Curve (for a T-4 Auction)
Price (€/MW per year)
Auction
Price Cap
Minimum
Acceptable
Capacity
Maximum
Acceptable
Capacity
Demand Curve
Adjusted Capacity
Requirement
De-Rated Capacity (MW)
179
Capacity Auction
CASE 1
Price (€/MW per year)
Auction
Price Cap
Maximum
Acceptable
Capacity
Minimum
Acceptable
Capacity
Demand Curve
A
Auction
Clearing
Price
B
C
Lumpiness Issue
 Accept all
Offer X
 Accept none
of Offer X
 Accept none
of Offer X
and replace
with other
offers from
other units.
Offer
Step X
Inflexible
Adjusted Capacity
Requirement
De-Rated Capacity (MW)
180
Capacity Auction
CASE 2
Minimum
Acceptable
Capacity
Price (€/MW per year)
Auction
Price Cap
Maximum
Acceptable
Capacity
Demand Curve
No
Lumpiness
Issue.
A
Auction
Clearing
Price
Offer
Step Y
Flexible
Adjusted Capacity
Requirement
De-Rated Capacity (MW)
181
Auction Results
 Auction results specific to a participant will be provided to them.
 Offers cleared
 Price applicable (clearing price, or pay as offer)
 Weighted average price for each of a unit’s New Capacity and Existing Capacity.
 Weighting proposed as some offers at clearing price, some pay as offer.
 Summary market results will be provided on total capacity awarded and clearing price.
 New Capacity has capacity awarded on a provisional basis until it posts a Performance
Bond (covered in next version).
 All confirmed capacity awards are recorded in the Capacity and Trade Register.
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Auction Monitoring and Audit
 The CRM Delivery Body will tender for a Capacity Auction Monitor and a Capacity
Market Auditor.
 The RA’s will set the terms of reference (based on consultation in case of auditor).
 The RA’s will approve the choice before selection.
 The Capacity Auction Monitor will
 Observe Qualification and the Auction and report to RAs on provisional results.
 Report potential non-compliance with the Code.
 Capacity Market Auditor
 Performs annual audits
 Makes recommendations to the Regulatory Authorities for changes.
183
Capacity Market Code - Content
 Introduction and Background
 Pre-Auction Processes
 Capacity Auction
 Registries
 Secondary Trading
184
Registries
 Qualification Capacity Register
 Maintains record of Qualified data
 Also records information provided with Opt Out notifications.
 Capacity and Trade Register
 Tracks primary and secondary trades.
 Feeds data to T&SC settlement
 Capacity payments based on registry information.
 Difference charges based on net obligation across all trades for a unit
 Includes a “Registry Modification” feature.
 Used to negate obligations if secondary trade platform not available.
 A known issue – we have secondary trades carrying the exchange rate from the
primary trade. Given capacity could be traded multiple times, this is probably
unworkable.
185
Capacity Market Code - Content
 Introduction and Background
 Pre-Auction Processes
 Capacity Auction
 Registries
 Secondary Trading
186
Secondary Trade
 Secondary Trade changes who needs to physically deliver on capacity
 E.g. to back primary auction capacity while it is on forced outage.
 Buyer is seeking to offset its existing obligations.
 Seller is taking up those obligations.
 Proposed design based on
 A central auction process.
 Standard products – e.g. for different time frames.
 A straightforward bid and offer process which determines a clearing price.
 Those trading would settle the trade at the clearing price.
 The Buyer continues to receive its original capacity payments.
 The Seller gains obligations in the Balancing Market.
187
Prices and Load Following in Secondary Trade
Prices
 Secondary Trades be priced on €/MW per year basis (as for primary trades).
Payments/charges will be scaled in settlement by the duration of the product.
 Thus a one-week product will be settled at (approx): price × 1/52 × quantity.
Load Following
 For Capacity Auction primary trades a settlement interval specific Capacity Quantity
Scaling Factor (FSQCγ) between 0 and 1 is applied to the awarded capacity to adjust
the capacity that must be delivered in each settlement period for load following.
 Capacity to back secondary trade is provided by:
 De-rated capacity above the load following (ie FSQCγ) adjusted capacity.
 Capacity above de-rated capacity. (Up to 70 days per year)
 Secondary traded capacity will be scaled down by FSQCγ in settlement.
 Thus spare capacity must be scaled up by an estimate of FSCQγ to know how
much can be traded.
188
The Three Types of Capacity
Capacity (MW)
Initial
Capacity
C = Initial Capacity –
De-Rated Capacity
De-Rated
Capacity
B = De-Rated Capacity
× (1 – FSQCγ)
A = De-Rated Capacity × FSQCγ
γ
Time
189
Secondary Trade Capacity
Transformed Capacity (MW)
Initial Capacity/FPFCQSF
C/ FPFCQSF
Initial
Capacity
B/ FPFCQSF
De-Rated
Capacity
Seller Limit if
trading above
de-rated
capacity.
De-Rated Capacity / FPFCQSF
Buyer and Seller
Limit if trading
within de-rated
capacity
A / FPFCQSF
γ
Time
FPFCQSF = Product Forecast Capacity Quantity Scaling Factor.
This scales up capacity, which in settlement is scaled down by FSCQ
190
Next Steps
 Provide us your comments and questions within 5 working days of this meeting.
 We will incorporate feedback into the next version of the Plain English Guide.
191
Agenda – Day 2
 Welcome and house-keeping;
 Grid Code changes;
 Financial Settlement (Chapter G);
 Ex Ante Reference Price and Administered Scarcity Price;
 CRM Settlement (Chapter F – part 2);
 Capacity Market Code;
 AOB & Next Steps.
192