Status quo: Network Codes and Guidelines from NRAs perspective. Dace Bite Public Utilities Commission of Latvia Deputy Director of Energy Department
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1 Status quo: Network Codes and Guidelines from NRAs perspective Dace Bite Public Utilities Commission of Latvia Deputy Director of Energy Department 25 th Baltic Electricity Market Forum Tartu 18 April 2018
2 Key milestones 2020 Q4 Day ahead market coupling fully implemented 2019 Q3 Connection codes, Common platform for balancing implemented 2019 Q1 Operational agreement 2018 Q4 Regional Security Coordinator (RSC) 2018 Q2 IDOA - Intraday coupling go - live 2018 Q3 CCM 2
3 Guideline on Capacity Allocation and Congestion Management (CACM) approved terms and conditions or methodologies All NRA Regional NRA National NRA Total Approved All NRA or ACER approved MCO plan Generation and load data provision methodology Common Grid Model Methodology Day-ahead firmness deadline CCR (ACER) and amendment to CCR Back-up methodology Products proposal Congestion income distribution methodology (ACER) Harmonized maximum and minimum clearing prices for day-ahead Harmonized maximum and minimum clearing prices for intraday Regional CCR NRA approved Fallback procedures 3
4 Guideline on Forward Capacity Allocation (FCA) approved terms and conditions or methodologies All NRA Regiona l NRA Total 6 4 Approved 3 2 All NRA or ACER approved requirements for the single allocation platform and costs (SAP) harmonised allocation rules (HAR) ACER decision 10/2017 generation and load data provision methodology (GLDPM) 10/2017 Regional NRA (PUC and ECA) approved HAR regional requirements 10/2017 regional design of LTTRs 3/2018 4
5 Guideline on electricity balancing (EB) terms and conditions or methodologies All NRA approval Regional NRA approval National NRA approval Total Approved EB date of entry into 18/12/2017 First proposals will be submitted to NRAs at the end of 2018 Public consultations were organized for: the exchange of balancing energy from RR (21 Feb 4 Apr 2018); a European platform for the imbalance netting process (15 Jan 15 Mar 2018); MARI mfrr Platform Design (21 Nov 20 Dec 2018); Next public consultations on: a European platform for the exchange of balancing energy from mfrr (Jun Jul 2018); a European platform for the exchange of balancing energy from afrr (Jun Jul 2018); 5
6 Guideline on electricity transmission system operation (SO) - terms and conditions or methodologies All NRA approval Regional NRA approval National NRA approval SO date of entry into force 14/09/2017 Proposals which have been submitted to NRAs: CGMM-v3 received by the PUC on NRAs decision till ; KORRR - received by the PUC on NRAs decision till Total: 3+RAOC = 4 1 (7) 1 (6) Public consultations were organized for: CSAM 26 Feb 6 Apr must be submitted to NRAs till ; RAOC 26 Feb 6 Apr 2018) - must be submitted to NRAs till Next public consultations on: common provisions for each CCR for regional operational security (Apr 2019); Approved: Each TSO proposal on the scope of data exchange with DSOs and significant grid users (A. 40(5)) must be submitted to NRAs till ; * Due to operating in a synchronous area where not all countries are bound by Union legislation, the TSOs of Lithuania, Latvia and Estonia have exemption from several provisions of the SO guideline
7 Network code on electricity emergency and restoration (ER) each TSO shall submit terms and conditions or methodologies ER date of EiF: 18/12/2017 National NRA approval Total: 7 Reports developed by TSOs Technical report on system defence plan and restoration plan (A. 6); Reports on disconnected transmission system elements (A.14, 15, 18); Report of suspended and restored market activities (A.37). ER lays down the requirements on the management and coordination of system operation across the Union in the emergency, blackout and restoration states. 6 of 7 proposals should be submitted to NRAs till Public consultations must be organized for the consistency assessment of the system defence plan and the restoration plan (A.7(1))
8 Requirements for Generators (RfG) and Demand Connection Code (DCC) Approved Classification as an emerging technology module evita in accordance with BDR Thermea Group B.V. application The criteria for granting derogations pursuant to Articles 62 and 63 of RfG and Articles 52 and 53 of DCC For national NRA approval requirements for grid connection of generators (in cooperation with Baltic TSOs and DSOs) - submitting time requirements for demand connection (in cooperation with Baltic TSOs and DSOs) - submitting time
9 CACM ongoing For all NRA approval - Intraday cross zonal gate opening and gate closure times and Algorithm proposal - ACER decisions under development Intraday capacity pricing the NRAs approval process are officialy posponed till August, 2018 For regional NRA approval - Common capacity calculation methodology - Baltic CCR NRAs asked TSOs for request for amendments Coordinated redispatching and countertrading proposal Calculation of scheduled exchange For national NRA approval - Multi NEMO arrangaments (MNA) agreed between Baltic NRAs 9
10 CACM next proposals For regional NRA approval Redispatching and countertrading cost sharing - relevant TSOs For national NRA approval- Costs related to the single day ahead and intraday coupling - relevant TSOs Cost sharing Cost sharing between NEMOs and TSOs in different Member States- relevant TSOs&NEMOs 10
11 MoU Baltic CCR NRAs common work arrangaments 1. Memorandum of understanding between NRAs signed on 16 October 2017 (MoU), the goals are: to give practical effect to the implementation of CACM and any other ENC possible in the future, that contains requirements for approval of proposals in the Baltic CCR; to settle the arrangements and principles for coordination and cooperation of NRAs when assessing and approving proposals and to facilitate agreement being reached between NRAs. 2. In accordance to MoU: EE NRA was leading the process and regional NRAs approved DA fallback procedures LV NRA leading Capacity Calvculation Methodology (CCM) LT NRA leading Methodology for Coordinated Redispatching and Countertrading (CRC) Methodology for Calculating Scheduled Exchanges (SEC) elaborated by all TSOs acceptance regional
12 Main issues and further work on the evaluation of the CCM On 12 March 2018 Baltic CCR NRAs agreed on the RfA - 19 May 2018 is the deadline for the CCM re-submission Main reasons for RfA: 1) definitions are not consistent with the network codes and guidelines, more detailed mathematical description is required 2) necessity for further elaboration of operational security limits, contingencies, allocation constraints and remedial actions. Justification of balancing constraint how this type of constraint will impact availability of cross-zonal capacities and will ensure non-discrimination 3) the CCM must prove that the capacity calculated with 3rd countries do not reduce capacities in the Baltic CCR 4) Baltic NRAs request from Baltic TSOs the CCM with the 3rd countries 5) other issues. Next steps: until ~19th July involved NRAs will evaluate and make common decision on the CCM. 12
13 FCA decisions under development and future proposals For all NRA approval common grid model methodology (CCM) RfA 02/2018 congestion income distribution methodology (CIDM) submitting time methodology for sharing costs incurred to ensure firmness and remuneration of long-term transmission rights - submitting time 6 months after approval of CIDM For regional NRA approval TSOs proposal for hedging opportunities - ongoing diiscussions on SE, LT, LV TSOs presented FCA hedging opportunities proposal by NRAs drafting RfA capacity calculation methodology and methodology for splitting cross-zonal capacity - submitting time 6 months after approval of CCM 13
14 EB current geographical scope Members Do not participate Observers/interested Information:ENTSO-E 14
15 Actualities 1. IDOA NRAs active assistance - NRAs want XBID to go live without undue and unnecessary delay. Challenges faced by the parties which are going to sign the IDOA should be solved as soon as possible. NRAs are committed to assist and fulfil their roles laid out in the applicable legislation, in order to ensure the timely golive of the XBID Project. 2. Cost sharing concerning 3rd countries - relevant for two regional methodologies (CCM, CRCM) 3. Hedging instruments according to FCA on LT-LV and LT-SE border 4. A yearly report in which the costs of establishing, amending and operating single day-ahead and intraday coupling are explained in detail. Costs directly related to single day-ahead and intraday coupling shall be clearly and separately identified and auditable. The report shall also provide full details of contributions made to NEMO costs by TSOs. 15
16 Cost sharing overview STEP1 European level Itemized total common costs NEMO costs Joint costs TSO costs sharing key MS bill MS 8 C x TC TV x TTV Share attributable to MS(x) MS= total number of Member States and third countries Cx = Consumption in MSx TC =Total Consumption in all MS and third countries TVx= traded volume in MSx (sum of volume traded by each NEMO participating in MSx) TTV=Total traded volume in all MS and third countries STEP2 Complementing sharing keys National level % % Share attributable to TSO Share attributable to NEMOs Share attributable to NEMO y Share attributable to NEMO z 16
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