Cross-border market operations

Transcription

1 Cross-border market operations Inputs from Nord Pool Consulting okyo, September, 016

2 Nordic market summary

3 Utilizing the Value of Differences in a Region Complementary production Security of supply Cost synergies Climate challenge MARKE SOLUIONS FOR GCCIA

4 Day Ahead price formation in practice Factors affecting the supply for electricity: Factors affecting the demand for electricity: Fixed costs of production Variable costs of production Plant startup and shutdown costs CO allowance prices Weather ydro situation S U P P L Y Price [EUR/MWh] Market price D E M A N D Retail volumes and delivery obligations: - Weather - Open deliveries, etc. Industrial consumers: - Fixed costs - Variable costs - Startup and shutdown costs - Flexibility of processes urnover Volume [MWh] RANSMISSION CAPACIY Available ransmission Capacity (AC): Existing interconnectors Unavailability of interconnectors (faults, etc.) MARKE SOLUIONS FOR GCCIA 4

5 he Southern African Power Pool: A Nordic Model in Africa MARKE SOLUIONS FOR GCCIA 5

6 SAPP Market Area SAPP consists of the following members: DR Congo 1 SADC Member Countries anzania 16 SAPP Members 80 Million people Installed Generation Capacity - 6 Angola Zambia Malawi GW Available Generation Capacity - 47 GW Namibia Botswana Zimbabwe Mozambique Peak Demand - 55 GW Consumption - 400Wh Swaziland South Africa Lesotho MARKE SOLUIONS FOR GCCIA 6

7 Regional Power Market Preconditions he aim for SAPP was to enable national power capacity merging into regional market in order to further optimize social welfare and increase security of supply. More power resources will be more available in a large region than nationally he market will facilitate more efficient management of marginal available production and transmission resources A regional power market has proven to add value to the common interconnected power market he slogan for the market integration in SAPP can be summarized as National control regional cooperation MARKE SOLUIONS FOR GCCIA 7

8 Utilizing the Value of Differences in a Region Seasonally Situations Wet Less wind Dry igh Wind Reserves ydro hermal Complementary production Security of supply Cost synergies Climate challenge MARKE SOLUIONS FOR GCCIA 8

9 SAPP Market concept Southern African Power Pool National SOs FPM Forward Physical contracts Weekly and monthly - auction trading - Forwards Week peak load Week off-peak Week weekend DAM Market equilibrium one day ahead - auction trade - IDM Physical contracts hours ahead - cont. trade - Balancing Power Single buyer National markets System Operation Real-ime Operation Monthly baseload SAPP Settlement and financial management Settlement of all physical contracts Settlement of wheeling and losses Market monitoring and reporting Balancing generation and consumption in realtime Services during the Real- ime-operation: Controlling frequency and voltage etc. MARKE SOLUIONS FOR GCCIA 9

10 Role of Different Markets in Supply Balancing on the Day ourly Contracts Weekly Forward Contracts Monthly Forward Contracts Bilateral Contracts Own Supply IDM rading DAM rading Weekly Forward rading (OP) Weekly Forward rading (D) Weekly Forward rading (PK) Monthly Forward rading Bilateral Contracts Own Production Demand Forcast otal Supply MARKE SOLUIONS FOR GCCIA 10

11 SAPP Markets Balance Responsibility Market Participants need a DAM and IDM in order to be able to balance their expected generation/consumption with contracts transparency Market Information Distribution of all relevant information publicly that can have impact on the market prices available through the Market Operator SAPP Portfolio bidding & Self-dispatch he participants manages their own assets he auction market manage both trading and transport of traded power by the implicit auctioning of Available ransmission Capacity between the market areas MARKE SOLUIONS FOR GCCIA 11

12 SAPP Markets and Members Opportunity Use own infrastructure flexibility In the production assets In the consumption In the interconnections transmission capacity Buy in the market when prices is low and sell when price is high Utilize regional differences Save fuel for later production Reduce industrial consumption MARKE SOLUIONS FOR GCCIA 1

13 he importance of interconnections also for SAPP Gabon Congo Dem Rep of Congo Brazzaville Kinshasa Luanda Angola Rwanda Burundi Malawi Kenya Nairobi anzania Dar es Salaam Planned ransmission Interconnection Projects Namibia Botswana Zambia Lusaka arare Lilongwe Zimbabwe Mozambique DRC anzania 015: nd DRC Zambia 0 kv 018: ZIZABONA - 0 kv 018: Mozambique Malawi kv 9 Good x System Cape own Windhoek N South Africa P Gaborone Pretoria Johannesburg P Lesotho Maputo Mbabane Swaziland P ydro station Pumped storage scheme hermal Station SOUERN AFRICAN POWER POOL Angola Zambia Zimbabwe Malawi Namibia 00: RSA Botswana kv Mozambique Botswana 018: Zambia anzania-kenya 400 kv 018: Morupule Maun 400 kv 00: MOZISA 400 kv 00: Namibia Angola -400 kv Current South Africa Swaziland 00: Orapa Pandamatenga -400 kv Lesotho 0: Grand Inga ransmission VDC/AC 04: Mozambique SE VDC/AC SOUERN AFRICAN POWER POOL 1

14 he Nordic/EU market model has proven to be a flexible tool to integrate national markets in regional setups 14

15 Market Participants Bidding Bids National Market Operator 1 Bidding process Create NEC NEC NM1 DAM Overview National Control Regional Cooperation Results/Settlement Results Scheduling Prices all areas Flow all ICs Regional Implicit Price Calculation 1 SOs 1 AC all ICs National Market Operator n Single or central buyer (no national market) 1 SAPP CC = NEC NM + + AC all NEC NM1 AC all Flow all ICs Calculation of C for all interconnections Create NEC NEC NM Results/Settlement Prices all areas Flow all ICs

16 Market Participants Bidding Bids Power exchange 1 Bidding process Create NEC NEC NM1 DAM Overview National Control Regional Cooperation Results/Settlement Results Scheduling Prices all areas Flow all ICs Common Price Calculation 1 SOs 1 Market Participants Bidding Bids 1 AC all ICs Power exchange n Bidding process SAPP CC = NEC NM + + AC all NEC NM1 AC all Flow all ICs Calculation of AC for all interconnections Create NEC Results/Settlement Scheduling NEC NM Results Prices all areas Flow all ICs

17 P O W E R I N G A S E A N : C A N E N O hank you! ans-arild Bredesen CEO, Nord Pool Consulting ans-arild.bredesen@nordpoolgroup.com

18 Education and Experience Selected Project References Consultant Profile ans-arild Bredesen ans-arild has more than 0 years of experience from international projects in the energy sector based on his work with the Nord Pool model ans-arild Bredesen CEO, Nord Pool Consulting Mobile: hans-arild.bredesen@npspot.com BSc in Computer Science from øgskolen I Østfold, Norway Involved in the electricity deregulation process since 199. echnical project manager for the market systems at Nord Pool Product manager for wholesale energy market participant systems for the Nordic market. Wide international experience from key roles in the development of strategies for trading, scheduling and settlement systems for PXs and SOs in California, Ireland, India, Romania, urkey, Ukraine, Southern Africa and South-east Europe. Implementation of the Southern African Power Pool Start of service power exchanges in Croatia and Bulgaria Setting up a national power exchange in India Implementing a Wholesale Market Opening for SEE (South East Europe) igh level design for the Albanian Power Exchange Author of Power to the People 18 Nord Pool Consulting Confidential 18