Market Trial Participant Guide

Transcription

1 Market Trial Participant Guide I-SEM Market Trial Version 3.0 EirGrid Commercial In Confidence.

2 EirGrid Commercial In Confidence. Page 2

3 Table of Contents 1. Introduction Overview of I-SEM Purpose of this Document Overview of Market Trial Updates to Guide Participation Phases of the Trial Overview Establishment Phase Scripted Phase Unscripted Phase Cutover Between Trial and Live Operations Trial Calendar Introduction Market Trial Timeline Trial Monthly Summary Normal Daily Processing Scenarios Scenario Instructions Scenario 1 System Readiness Scenario 2 Day-Ahead Market Scenario 3 Balancing Market Scenario 4 Full Market Easy Function Scenario 5 Full Market Normal Function Scenario 6 Full Market Exceptional Conditions Scenario 7 Unscripted Parallel Operations Market Trial Coordination Clarifications on SEMOpx / ECC Activity in the Trial Systems and Environment Support and Execution Reports and Invoices EirGrid Commercial In Confidence.

4 5.2 Variance Reporting Metrics Overview Participant Survey List of Metrics Reporting Overview Weekly Report Trial Coordination, Communications and Logistics Introduction Trial Coordination and Communication Participant Market Trial Coordinators Meetings Market Trial Launch Workshop Market Trial Coordination Team Appendix A Market Reports Balancing Market Reports Annual Reports Monthly Reports Daily Reports Forecasts Daily Reports Commercial Offer Data and Technical Offer Data Daily Reports Results and Physical Notifications Daily Reports Operational Schedules Daily Reports Imbalances Daily Reports Other Daily Reports Ex Post Reports Event Driven Settlement Reports Capacity Market Reports Appendix B Change Log EirGrid Commercial In Confidence.

5 Glossary of Terms Acronym / Term Definition AoLR Agent of Last Resort AU Assetless Units (Assetless Traders) BM Balancing Market CCC Coordinated Capacity Calculation CCQT Communication Channel Quality Testing CM Capacity Market DAM Day-Ahead Market D-Gen Dispatchable Generation DSU Demand Side Unit ECC European Commodity Clearing EDIL Electronic Dispatch Instruction Logger FTR Financial Transmission Rights ICO Interconnector Owner IDA Intraday Auction IDAC Intraday Auction Coupled IDAL Intraday Auction Local IDC Intraday Continuous Trading IDM Intraday Market I-SEM Integrated Single Electricity Market JAO Joint Allocation Office MDP Meter Data Provider MO Market Operator NEMO Nominated Electricity Market Operator O-Gen Other Generating Units (including wind, Solar etc.) EirGrid Commercial In Confidence.

6 Acronym / Term PEMR Definition Participant Engagement and Market Readiness (TSOs I-SEM Project workstream) PIT Participant Interface Testing RAs Regulatory Authorities SEMO Single Electricity Market Operator SEMOpx Single Electricity Market Operator Power Exchange SO System Operator SUP Suppliers TSO Transmission System Operator Trial The I-SEM Market Trial WEF Wind Energy Forecast EirGrid Commercial In Confidence.

7 1. Introduction 1.1 Overview of I-SEM The Integrated Single Electricity Market (I-SEM) is a new wholesale electricity market arrangement for Ireland and Northern Ireland. The new market arrangements are designed to integrate the all-island electricity market with European electricity markets, enabling the free flow of energy across borders. In addition to integration with Europe, some of the key considerations in the design of the I-SEM included how energy is bought and sold; how generators are remunerated for Capacity; forward trading arrangements; market liquidity; market power controls; and the systems, policies and procedures that are required to operate the market. The increased complexity of the new market arrangements presents participants with many challenges, but it also offers participants many new opportunities. Broadly, the I-SEM arrangements are intended to: Enable broader participation in energy markets Increase the opportunities for participants to trade in different time frames Provide participant with a variety of arbitrage and hedging opportunities Maximise the efficient use of the interconnectors in system balancing Introduce cost drivers for system balancing Integrate balancing and system security actions with market operations 1.2 Purpose of this Document The Market Trial Participant Guide is a "how-to" reference guide to the I-SEM Market Trial, providing details of: How the Trial will be organised and managed. Timelines and calendars for the Trial. The scenarios to be trialled, including step-by-step instructions for processes exercised. Logistics and communications during the Trial. Details of metric measurement and tracking during the Trial. Details of reporting during the Trial. This Guide is not an operational guide to the I-SEM, or to the I-SEM rules and procedures. All information in this Guide relates only to the Market Trial. Material in this Guide relating to the I-SEM rules and how to operate in the Market Trial is not intended to be taken as advice. It should also be noted that this Guide does not cover the participant registration process, as this will have been substantially completed at the date of publication. 1.3 Overview of Market Trial The Trial is a full function pilot demonstration of Market and System Operations processes prior to market Go-Live. They provide an opportunity for Participants to fully vet their processes and systems, EirGrid Commercial In Confidence.

8 while experiencing the market in a risk-free environment prior to the opening of the market in May The overall objectives of the Trial are as follows: Provide a risk free environment where Participants can freely exercise their systems and processes and experience market operations and daily activities. Provide Participants with an opportunity to test their own new or modified internal systems and processes Provide a means by which to measure successful execution of market operations processes Facilitate a smooth transition into the live market. Identify required areas for improvement that can be addressed prior to launch For more details on the preparation and coordination of the Trial, it is recommended that Participants reference the Market Trial Plan and Market Trial Strategy. Both of these documents are available on the SEMO website. 1.4 Updates to Guide The Guide presents the current state of information regarding the Trial at the time of publication. If material changes occur during the Trial for example, to the calendars the Guide will be updated to reflect those changes and republished. Whenever the Guide is updated, the revised version will be sent to Market Trial Coordinators, together with a covering explaining the changes (Full details of all changes will also be documented within an Appendix to the guide). Updates to the Guide will also be highlighted during the daily conference calls with Market Trial Coordinators. The latest version of the Participant Guide will be available on the SEMO website. 1.5 Participation To take part in the Trial all Participants must have completed the I-SEM Programme Market Trial Registration process for the relevant markets and have successfully completed Communication Channel Qualification and Participant Interface testing. All Participants should have appointed a Market Trial Coordinator with whom the Market Trial Team will primarily interact throughout the course of the Trial. The Market Trial Coordinator will be responsible for disseminating all Trial information and material within their respective organisations and coordinating their organisations Trial activities. They will also be expected to participate in all scheduled teleconferences and meetings during the Trial and channel all required trial information from their organisation to the Market Trial Team. EirGrid Commercial In Confidence.

9 2. Phases of the Trial 2.1 Overview The Trial will encompass the core market and system operations procedures including: Process Day-Ahead Market (DAM) Intraday Market (IDM) Scheduling and Dispatch Balancing Market (BM) Settlements and Billing Credit Management Agent of Last Resort Administered Scarcity Pricing Market and System Data Publication Participant Helpdesk Description Allocation of cross-border capacity through a single centralised price coupling algorithm (EUPHEMIA). Determination of prices and positions for participants in coupled markets taking into account the cross-border capacity. Adjustment of physical positions closer to delivery time. Continuous SEM (withinzone) intraday trading. Two cross-border intraday auctions, allowing cross-border trades and one intraday local auction. Determination of the optimal secure and economic output of generation units to meet the system load, subject to transmission and operational constraints Imbalance settlement price for settlement of the TSOs balancing actions and any uninstructed deviations from a participant s notified ex ante position. Daily settlement of ex ante markets by ECC, settlement by SEMO reflecting balancing actions, imbalances and capacity market settlement. Collateral requirements and monitoring of credit exposure and defaults. For ex-ante markets this is managed by ECC and is managed by SEMO for the arrangements under the TSC Submission of offers on behalf of its users in the DAM and IDA (AoLR does not apply to the continuous Intraday trading market). Pricing of energy during critical grid events such as voltage reductions, planned or emergency manual disconnection or automatic load shedding. Publication of market information including auction results, outages, forecasts etc. Providing a single point of contact for Trial Participants to gain assistance in troubleshooting, get answers to questions, and solve issues. The execution of the Trial will be conducted in three phases: 2.2 Establishment Phase The Establishment Phase addresses the activities necessary to set up the configuration of systems and processes necessary to execute the Trial. By the end of this phase, the objective is for all Participants to have their systems and processes ready to assume the operational scenarios under the Trial. Activities during this phase include: establishing a connection to the environment being used for the Trial confirming access levels to applications and services submitting data files to confirm inbound connectivity receiving market data to confirm outbound connectivity EirGrid Commercial In Confidence.

10 . 2.3 Scripted Phase The Scripted Phase will form the major element of the Trial, providing stakeholders with the operational experience and confidence necessary to refine processes and move into the unscripted phase of the trial. This phase is designed to allow the Trial to move in controlled steps, from initially sending and receiving relatively simple transactions, through to replicating a range of exception conditions through pre-defined scenarios. The scenarios are a series of cycles starting with a simple Day-Ahead Market (DAM) and evolving to a series of full cycles that will contain the main procedural exceptions. The purpose is to provide a framework by which Participants can execute daily processes in a controlled environment and over an extended period of time. This approach allows all Participants to review progress and address any issues that may arise. The Scripted Phase is planned to commence on 15th January 2018 and run over 9 weeks until the start of the Unscripted Phase on 20th March Unscripted Phase In the Unscripted Phase, Participants will be free to submit data of their own choosing. Although the submission of data by Participants (including bids and offers) will not be subject to restrictions, there is an expectation that Participants will act as they would in live market operations. It is recommended, where practicable, Participants reflect their strategies in both the current market arrangements and the I-SEM market trial systems. The level of activity of Participants will not be specified. The operation of the I-SEM processes and systems for a consecutive 168 hours during the Unscripted Phase will form one of the key metrics for the successful completion of the market trial. The Unscripted Phase will run up until the smooth transition to the live market, scheduled to commence on the European Trading Day of 23rd May 2018 which commences at 23:00 on 22 nd May Cutover Between Trial and Live Operations The Cutover Participant Guide was published on Feb 16 th. EirGrid Commercial In Confidence.

11 3. Trial Calendar 3.1 Introduction To facilitate planning, the Trial is scheduled to operate against a published calendar and a daily activity run sheet. The run sheet is a check list that reflects the key daily activities and timings of market and system operations. As far as possible in Scenarios1 through 4, all market and system operations during the Trial will be in accordance with normal market timelines, as defined in the I-SEM rules and procedures. The Participant Guide provides four views of the calendar, each showing a different level of activity and detail: Market Trial Timeline Trial Monthly Summary Normal Daily Processing Scenario Weekly Calendar Provides a high level visual summary (infographic) of the Trial activities and dates. Provides a summary of daily trial activities in each month. It does not provide details and only key events on each day are shown. Runsheet of market activities by time, by Participant for a normal calendar day In combination with the scenario Runsheet, activities and events for each day during the Market Trial. Within the calendar views, phases and scenarios are colour coded for clarity and ease of reference. The key to the colour coding is as follows: Market Trial Phases Establishment Phase Scripted Phase Unscripted Phase Scenarios Scenario 1 System Readiness Scenario 2 Easy Day-Ahead Market Scenario 3 Balancing Market Scenario 4 Full Market Basic Functions Scenario 5 Full Market Normal Functions Scenario 6 Full Market Exceptional Conditions Scenario 7 Unscripted Parallel Operations EirGrid Commercial In Confidence.

12 3.2 Market Trial Timeline The chart below provides a visual summary of the Trial timeline. EirGrid Commercial In Confidence. Page 12

13 3.3 Trial Monthly Summary DECEMBER 2017 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY AM - Conference Call Market Trial Kickoff 1 No Activity 2 No Activity 3 Connection SEMOpx Connection SEMO Market Results- SEMOpx, ECC Market Results- SEMOpx, ECC Data download- BMI Data download- Market results No Activity 9 No Activity 10 Submission- Generation- Commercial Offer Data Market Results- SEMOpx, ECC Submission- Generation- Commercial Offer Data Scenario No Activity 16 No Activity 17 Market Results- SEMOpx, ECC Data download- BMI Data download- Market results Data download- BMI Data download- Market Scenario 1 results No Activity 23 No Activity 24 Market Results- SEMOpx, ECC Scenario 1 Data download- BMI Data download- Market results Submission- SEMOpx - DAM, IDM Data download- BMI Data download- Market results No Activity Submission- SEMOpx - DAM, IDM AM- Conference call Overview of week Review of issues AM- Conference call Overview of week Review of issues HOLIDAY PERIOD EirGrid Commercial In Confidence. Page 13

14 JANUARY 2018 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY HOLIDAY PERIOD Connection- Market Coupling Operator Submission- SEMOpx - DAM, IDM Submission- DAM Bids Submission- DAM Offers Run- DAM Validate- DAM Publish- DAM results Run DAM Submission- COD and PNs System Dispatch Calculate Imbalance price Calculate Imbalance settlement price Publish Market Results Run- DAM, IDA Trades- Intraday Continuous Trading Publish Market Results Market Results- SEMOpx, ECC No Activity 13 No Activity 14 Submission- DAM Bids Submission- DAM Offers Run- DAM Validate- DAM Publish- DAM results Scenario 4 Submission- Generation- Commercial Offer Data Scenario No Activity 20 No Activity 21 Run DAM Submission- COD and PNs System Dispatch Calculate Imbalance price Scenario 2 Publish- DAM results No Activity No Activity Calculate Imbalance settlement price Publish Market Results Run- DAM, IDA Trades- IDC Settlement- DAM and IDM Publish Market Results Submission- DAM Bids Submission- DAM Offers Run- DAM Validate- DAM Run DAM Submission- COD and PNs System Dispatch Scenario Calculate Imbalance price 3 Calculate Imbalance settlement price Publish Market Results Run- DAM, IDA Trades- IDC Settlement- DAM and IDM Publish Market Results Data download- BMI Data download- Market results Submission- DAM Bids Submission- DAM Offers Run- DAM Validate- DAM Publish- DAM results Run DAM Submission- COD and PNs System Dispatch Calculate Imbalance price Calculate Imbalance settlement price Publish Market Results AM- Weekly Overview Conference Call Progress Review of issues Decision- Start Scenario 2 AM- Weekly Overview Conference Call Progress Review of issues Decision- Start Scenario 3 AM- Weekly Overview Conference Call Progress Review of issues Run DAM Decision- Start Scenario 4 EirGrid Commercial In Confidence. Page 14

15 FEBRUARY 2018 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY Settlement- DAM & IDM Activate- Coupled Market Activate- Credit Risk Management Publish- Settlement documents Publish- Settlement documents Settlement- DAM & IDM Settlement- SEMO Scenario 5 Scenario 5 Publish- Settlement documents Scenario 5 Publish- Settlement documents No Activity No Activity Conference Call Progress Scenario 4 Review of issues Run DAM, IDM Publish- Settlement documents Publish- Settlement documents Run- DAM, IDA Trades- IDC Settlement- DAM and IDM Publish Market Results Publish- Settlement documents AM- Weekly Overview Decision- Start Scenario 5 AM- Weekly Overview Publish- Settlement documents Publish- Settlement documents Publish- Settlement documents Publish- Settlement documents Publish- Settlement documents Publish- Settlement documents EirGrid Commercial In Confidence. Page 15

16 MARCH 2018 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY Publish- Settlement documents Scenario 6 documents Publish- Settlement Publish- Settlement documents Publish- Settlement documents Publish- Settlement documents Publish- Settlement documents AM- Weekly Overview Publish- Settlement documents Decision- Start Scenario High Demand Bank Holiday (St Patrick s Day) Low Demand Scenario 6 Generation Constraint Generator Trip Preparation & Setup for Scenario 7 (Unscripted) Preparation & Setup for 7 Scenario 7 (Unscripted) Reserve Shortfall Preparation & Setup for Scenario 7 (Unscripted) AM- Conference call Overview of Scenario 6 Review of issues Run DAM, IDC, BM Fall Back Processes Decision- Start Scenario 7 Preparation & Setup for Scenario 7 (Unscripted) Trading- Unscripted Trading- Unscripted Scenario 7 Trading- Unscripted Trading- Unscripted Bank Holiday - NI (Good Friday) EirGrid Commercial In Confidence. Page 16

17 APRIL 2018 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 1 Bank Holiday (Easter Monday) Trading- Unscripted Scenario 7 Trading- Unscripted Trading- Unscripted Trading- Unscripted Status- 168 hour consecutive operations Trading- Unscripted Trading- Unscripted Trading- Unscripted Trading- Unscripted Trading- Unscripted Scenario 7 Trading- Unscripted Scenario 7 Trading- Unscripted Trading- Unscripted Scenario 7 Trading- Unscripted Trading- Unscripted Trading- Unscripted Trading- Unscripted Trading- Unscripted Status- 168 hour consecutive operations Trading- Unscripted Status- 168 hour consecutive operations Trading- Unscripted Status- 168 hour consecutive operations EirGrid Commercial In Confidence. Page 17

18 Scenario 7 Trading- Unscripted Scenario 7 Trading- Unscripted Trading- Unscripted Scenario 7 Go-Live Preparations MAY 2018 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY Trading- Unscripted Trading- Unscripted Trading- Unscripted Go-Live Preparations Trading- Unscripted Trading- Unscripted Trading- Unscripted Status- 168 hour consecutive operations Trading- Unscripted Trading- Unscripted Status- 168 hour consecutive operations Trading- Unscripted Trading- Unscripted Go-Live Preparations Trading- Unscripted Status- 168 hour consecutive operations Trading- Unscripted Go-Live Preparations Live Operations Live Operations Live Operations Live Operations Live Operations Live Operations Live Operations Live Operations Live Operations Live Operations Live Operations Live Operations EirGrid Commercial In Confidence. Page 18

19 3.4 Normal Daily Processing This calendar view presents a daily operational run sheet showing the activities which take place on a normal calendar day. Activities are listed by half hour and showing the participant to which they apply. Market Time Activity SEMO SEMOpx TSO European Comodity Clearing Interconnect Operator Meter Data Provicers Dispatchable Generation Other Generation Assetless Units Suppliers 08:00 Run- Intraday Auction 2 Publish- Forecast data Run- Funds Transfer for ex-ante trades Publish-Results Intraday Auction 2 Consume- Results Intraday Auction 2 Submission- Orders Intraday Auction 3 09:00 Conference Call- Planning Gate Opening- Balancing Market Gate Opening- Day-Ahead Market Gate Opening- Intraday Market Submission- Orders Intraday Auction 3 Submission- Orders Day-Ahead Market 10:00 Submission- Orders Day-Ahead Market Monitor- Order Submission Submission- Orders Intraday Auction 3 11:00 Cross Zonal Commitment- Day-Ahead Market Run- Day-Ahead Market Result Validation- Day-Ahead Market 12:00 Publish- Day-Ahead Market Submission- Orders Intraday Auction 3 Consume- Results Day-Ahead Market 13:00 Submission- Balancing Market Commercial Offer Submission- Balancing Market Technical Offer Submission- Orders Intraday Auction 3 13:30 Submission- Physical Notifications 13:30 Submission- Balancing Market Commercial Offer 14:00 Run- Longterm Schedule Publish- Forecast data Submission- Meter Data Day+1 Submission- Meter Data D+4 14:30 Publish- Results Intraday Auction 3 15:00 Settlement- SEMOpx (DAM, IDM) Day and Day-1 Submission- Orders Intraday Auction 1 16:00 Settlement- SEMO (Day+1) Submission- Orders Intraday Auction 1 Settlement- SEMO (Day+4) 17:00 Submission- Balancing Market Commercial Offer 17:30 18:00 19:00 20:00 21:00 22:00 Submission- Balancing Market Technical Offer Conference Call- Review Assessment Run- Intraday Auction 1 Consume- Results Intraday Auction 1 Publish-Results Intraday Auction 1 Submission- Orders Intraday Auction 2 Submission- Balancing Market Commercial Offer Submission- Balancing Market Technical Offer Submission- Balancing Market Commercial Offer Submission- Balancing Market Technical Offer Submission- Orders Intraday Auction 2 Submission- Balancing Market Commercial Offer Submission- Balancing Market Technical Offer Publish- Forecast data Submission- Orders Intraday Auction 2 Submission- Balancing Market Commercial Offer Submission- Balancing Market Technical Offer Submission- Orders Intraday Auction 2 Submission- Balancing Market Commercial Offer Submission- Balancing Market Technical Offer Submission- Orders Intraday Auction 2 EirGrid Commercial In Confidence. Page 19

20 4. Scenarios The Trial provides an opportunity for Participants to observe the operation of the market under a number of pre-defined scenarios, generally designed to mimic exceptional or extreme market conditions. Seven scenarios will be trialled - controls restricting the submission of transaction data will be kept to a minimum with Trial Participants requested to submit input data (e.g. bids, offers, Physical Notifications) consistent with a set of pre-defined conditions. The conditions will seek to replicate a range of normal and exception circumstances that might not ordinarily be expected to occur in the timeframe allowed by the Market Trial. This may have unusual consequences for certain Market Trial outcomes, such as settlement calculations, where deviations would likely be quite large on days when scenario outcomes are significantly different from actual outcomes. This document builds upon the scenarios outlined in the Market Trial Plan, setting out in more detail each of the scenarios and providing instructions to participants in the Trial. 4.1 Scenario Instructions For any given scenario, Participants will be required to enter input data consistent with that scenario. In Scenarios 1 through 4 the Market Operator will define the precise data to be entered for each scenario. For the remaining scenarios transactions and data to be entered will be at the discretion of the Participants. Details of the seven scenarios to be trialled, including instructions to all participants, are shown below: EirGrid Commercial In Confidence. Page 20

21 4.2 Scenario 1 System Readiness Purpose To ensure that there is a fit for purpose market trial environment and Trial Participants are established and connected and can successfully submit and receive data and interact with the market systems. Timeline December 4, January 12, 2018 Objectives Overview Participant Value Verify a feasible environment for Market Trial Confirm Participant connectivity Scenario 1, will center on the activities necessary to set up and configure the systems and processes necessary to execute the Trial. This scenario will focus on executing communication and data transfer processes such as connectivity, access arrangements and data feeds. The aim is that the IT environment used for the Trial will transition to Go-Live. Prior to the commencement of the Trial, the interfaces between Trial Participants and the Central Market Operators will have been tested as part of Participant Interface Testing. Before executing a series of complex scenarios involving multiple Trial Participants, in a new IT environment, it is prudent to ensure that all Trial Participants have established the basic capabilities necessary to take part in the Trial. The focus of Scenario 1 will be on making sure that individual transactions can be sent and received effectively between the Trial Participants and Central Market Participants. This approach allows issues relating to interfaces or validations to be resolved before more complex scenarios are performed. Scenario 1 will run for 4 weeks (6 weeks elapsed over the holidays) commencing December 4, During that time technical health checks will be conducted to ensure that the Market Trial environment and applications are robust and able to support later scenarios. These health checks include: Simulating the full market functions and processes on a daily basis using Trial Participants registered default values and fabricated offers, bid and Physical Notifications. Verifying output reports to assess the environment is set up and configured for market trial Identifying and resolving any potential environmental issues focus should be on ability of participants to test interfaces using the trial system in advance of actual submissions to practical scenarios offers the opportunity for a no-hard first try at putting actual data through the market systems EirGrid Commercial In Confidence. Page 21

22 Balancing Market Data Submission BMI and File Upload Duration of Scenario 1 Open New Browser Session / Initiate 3 rd Party Type 3 Software Log on to the BMI Application using Market Trial Credentials Submit provided Commercial Offer Data XML File via file upload facility Submit simple Demand Offer or Simple Generator Offer via the BMI Confirm Successful submission Log on to the BMI application Query the BMI to retrieve the Commercial Offer Data submitted via BMI and file up load Confirm that the BMI system has returned the queried data SEMOpx - Access and Data Submission to ETS and M7 Duration of Scenario 1 Open New Browser Session Log on to the ETS Application using Market Trial Credentials Submit simple Demand Bids or Simple Generator Offers via the ETS Order Management Confirm submission of Bids or Offers Log on to the M7 Application Query M7 to retrieve the Bids or Offers submitted Confirm that the M7 system has returned the queried data Confirm successful access to the M7 Application Physical Notification and Commercial Offer Data Submission Duration of Scenario 1 Open New Browser Session Log on to the BMI Application using Market Trial Credentials Submit provided COD Data XML File via file upload facility Confirm Successful submission Log on to the BMI application Query the BMI to retrieve the COD previously submitted via the BMI Confirm that the BMI system has returned the queried data Publish Receive Submit EirGrid Commercial In Confidence. Page 22

23 Retrieve Day-Ahead Market Results Duration of Scenario 1 Open New Browser Session Log on to the ETS Application using Market Trial Credentials Retrieve Market Results from the ETS Client Export Market Results to CSV Confirm Successful retrieval of Market Results Retrieve Market Information Duration of Scenario 1 Open New Browser Session Log on to the BMI application using Market Trial Credentials Query the MMS to retrieve the Market results Confirm that the BMI system has returned the queried data Publish Receive Submit EirGrid Commercial In Confidence. Page 23

24 4.3 Scenario 2 Day-Ahead Market Purpose To run a basic Day-Ahead Market. Confirm the stability of the Trial environment and application interfaces. Timeline January 15, January 19, 2018 Objectives Overview Participant Value Established Processes Run a basic Day-Ahead Market auction Publish Day-Ahead Market auction results Confirm the stability of the applications and interfaces Scenario 2, will trial the business functions and activities necessary to achieve a Day-Ahead position in the SEM. This is achieved by Trial Participants (Generators, Suppliers and Assetless Traders) submitting bids and offers to SEMOpx, who run an uncoupled DAM and publish the results. For Scenario 2, Participants may be provided with data packages containing bid/offer data for submission. This is to ensure that this scenario is executed under controlled conditions. For Scenario 2, EirGrid and SONI will operate as SEMOpx in their roles as NEMOs. The allocation of cross-border capacity will not be included in Scenario 2. The settlement services provided by European Commodity Clearing (ECC) will not be included in Scenario 2. Allow participants the opportunity to submit data through the Day-Ahead market interface Give participants the opportunity to download market result files Allow participants to consume market results into their internal settlement systems Week Commencing Jan 15, 2018 Mon Tue Wed Thurs Fri Sat Sun None None None None Weekly Overview No Activity EirGrid Commercial In Confidence. Page 24

25 Easy Day-Ahead Market. - Mon 15 Fri 19 Jan :00 Publish- wind forecast 06:00 Publish- demand forecast Conference Call Planning Open Order Book- Day-Ahead Market Submit- Day-Ahead Market bids provided - XML File via file upload facility Submit- Day-Ahead Market offers provided - XML File via file upload facility Confirm Successful submission of offers and bids data files Set Cross Border Capacity (interconnector capacity) to zero market is uncoupled Run Day-Ahead Market auction Validate Day-Ahead Market auction results Publish- Day-Ahead Market results Retrieve- Day-Ahead Market Auction results Conference Call Review Assessment 18:00 Publish- wind forecast 4 day outlook Publish Receive Submit EirGrid Commercial In Confidence. Page 25

26 4.4 Scenario 3 Balancing Market Purpose To run the Balancing Market, Day Ahead Auction and publish Long Term Schedule, Real-time Commitment and Real-time Dispatch. Timeline January 22, January 26, 2018 Objectives Overview Run a Day-Ahead Market Run the Balancing Market Publish Balancing Market results Confirm reliable operation of system interfaces Scenario 3 will focus on the business functions and activities necessary to determine the results of a Balancing Market and an imbalance settlement price. This is achieved by the application of a pre-defined set of Technical Offer Data (TOD) from all generating units and submission of Commercial Offer Data, (COD) and Physical Notifications (PNs) from dispatchable generators. The TSOs will run scheduling processes and issue Indicative Operations Schedules (IOS). Imbalance Price and Imbalance Settlement Prices. Commercial offer submissions to the DAM will be expanded beyond simple bids and offers Each dispatchable generator will only submit a single set of PNs and COD Re-submission of PNs and CODs is not included in Scenario 3 Settlement of the TSOs balancing actions is not included in Scenario 3. Dispatch Instructions will not be issued as part of Scenario 3. Interconnector Schedules are not included in Scenario 3 The allocation of cross-border capacity will not be included in Scenario 3. Participants may be provided with data packages contain bid/offer data for submission. This is to ensure that this scenario is executed under controlled conditions Participant Value Established Processes Provide participants the opportunity to interact with the TSO balancing systems through submission of PNs based on ex-ante market and inc/dec commercial offer data Consume results of TSO scheduling actions into their internal systems Week Commencing Jan 26, 2018 Mon Tue Wed Thurs Fri Sat Sun Day-Ahead Market Day-Ahead Market Day-Ahead Market Day-Ahead Market Day-Ahead Market No Activity (uncoupled) (uncoupled) (uncoupled) (uncoupled) (uncoupled) EirGrid Commercial In Confidence. Page 26

27 Balancing Market Mon 22 Fri 26 Jan :00 Publish- wind forecast 09:00 Publish- demand forecast Conference Call Planning Open Order Book- Day-Ahead Market Open Order Book- Balancing Market Submit- Day-Ahead Market bids provided - XML File via file upload facility Submit- Day-Ahead Market offers provided - XML File via file upload facility Confirm Successful submission of offers and bids data files Set Cross Border Capacity (interconnector capacity) to zero market is uncoupled Run Day-Ahead Market auction Validate Day-Ahead Market auction results 12:00 Publish- Day-Ahead Market results 13:00 Submit- Balancing Market Commercial Market Data (use default complex offers) 13:30 Submit- Physical Notifications (submitted by 13.30) 15:00 Publish- Indicative Operating Schedule based on Long-term Schedule 15:30 Retrieve the Day-Ahead Market Auction results 17:00 Conference Call Review Assessment Publish Receive Submit EirGrid Commercial In Confidence. Page 27

28 4.5 Scenario 4 Full Market Easy Function Purpose To execute Market Operations and System Operations for what can be considered a basic operating day. Timeline January 29, February 2, 2018 Objectives Overview Participant Value Established Processes Continue to run a Day-Ahead Market and Balancing Market Run a basic Intraday Auction Execute basic Continuous Intraday Trades Publish Balancing Market results Scenario 4 seeks to trial a basic operating day with no SEMO Settlement by including intraday market functions and AoLR Service. The cycle of Scenario 4 will step through the timeline of D-1 to D, (DAM, IDA, IDC, BM) and the publication of market results. Participants will adjust their physical positions through the intraday markets. Participants submit offers to SEMOpx, who run the IDM and publish the results. Participants will update their BM submissions in response to updated IDM positions as necessary. The first day of this scenario will utilize the outcomes from the DAM that was executed on the last day of Scenario 3 above SEMO Settlement is not included in Scenario 4 The allocation of cross-border capacity will not be included in Scenario 4. Participants may be provided with data relevant to Scenario 4. This is to ensure that this scenario is executed under controlled conditions. Opportunity to interact with SEMOpx intraday markets; Opportunity to revise intraday submissions to respond to market conditions from DAM and IOS data; Use of SEMOpx settlement procedures and systems; Ability to consume outputs of intraday market and SEMOpx settlement into their own internal systems; Week Commencing Jan 29, 2018 Mon Tue Wed Thurs Fri Sat Sun Day-Ahead Market (uncoupled) Balancing Market Day-Ahead Market (uncoupled) Balancing Market Day-Ahead Market (uncoupled) Balancing Market Day-Ahead Market (uncoupled) Balancing Market Day-Ahead Market (uncoupled) Balancing Market No Activity EirGrid Commercial In Confidence. Page 28

29 Full Market- Easy Function Mon 29 Jan Fri 2 Feb, 2018 Market Runsheet Mon Jan 29 00:00 Publish- wind forecast 06:00 Publish- demand forecast 09:00 Conference Call Planning 09:00 Open Order Book- Day-Ahead Market, Balancing Market Open Order Book- Intraday Auction 3 Submit- Day-Ahead Market bids provided - XML File via file upload facility Submit- Day-Ahead Market offers provided - XML File via file upload facility Confirm Successful submission of offers and bids data files Submit- Cross Border Capacity to Day-Ahead Market- market is uncoupled 11:00 Run Day-Ahead Market auction Validate Day-Ahead Market auction results 12:00 Publish- Day-Ahead Market results 13:00 Submit- Balancing Market Commercial Market Data (use default complex offers) 13:30 Submit- Physical Notifications (submitted by 13.30) 14:00 Run- Intraday Auction 3 14:40 Publish- Intraday Auction 3 results 15:00 Publish- Indicative Operating Schedule based on Long-term Schedule Open Order Book- Intraday Auction 1 15:30 Publish- Trade and Order Files (SEMOpx Settlement) 17:00 Conference Call Review Assessment 17:30 Run- Intraday Auction 1 1 Validate Intraday 1 Auction Results Publish- Intraday Auction 1 results Query Market Management System to retrieve the Day-Ahead Market Auction results Open Order Book- Intraday Auction 2 Publish Receive Submit EirGrid Commercial In Confidence. Page 29

30 Market Runsheet Tue Jan 30, 2018 through to Fri Feb 2, :00 Publish- wind forecast 06:00 Publish- demand forecast 08:00 Run- Intraday Auction 2 08:40 Publish- Intraday Auction 2 results 09:00 Conference Call Planning 09:00 Open Order Book- Day-Ahead Market, Balancing Market Open Order Book- Intraday Auction 3 and Intraday Continuous Trading Submit- Day-Ahead Market bids Submit- Day-Ahead Market offers Confirm Successful submission of offers and bids data files Submit- Cross Border Capacity to Day-Ahead Market- market is uncoupled 11:00 Run Day-Ahead Market auction Validate Day-Ahead Market auction results 12:00 Publish- Day-Ahead Market results 13:00 Submit- Balancing Market Commercial Market Data (use default complex offers) 13:30 Submit- Physical Notifications (submitted by 13.30) 14:00 Run- Intraday Auction 3 14:40 Publish- Intraday Auction 3 results 15:00 Publish- Indicative Operating Schedule based on Long-term Schedule Open Order Book- Intraday Auction 1 15:30 Publish- Trade and Order Files 17:00 Conference Call Review Assessment 17:30 Run- Intraday Auction 1 Query Market Management System to retrieve the Day-Ahead Market Auction results 18:00 Publish- Intraday Auction 3 results Open Order Book- Intraday Auction 2 Publish- wind forecast 4 day outlook Publish Receive Submit EirGrid Commercial In Confidence. Page 30

31 4.6 Scenario 5 Full Market Normal Function Purpose To execute market, System operations and settlement for what can be considered a normal day of operation. Timeline February 5, March 9, 2018 Objectives Overview Participant Value Established Processes Continue to run a Day-Ahead Market, Balancing Market, Intraday Auctions and Continuous Intraday Trades SEM coupled with European market Run SEMO Settlements Scenario 5 will trial all market and system operations procedures in a normal operating day, this will include SEMO Settlement, Resettlement, Credit Risk Management processes but not any exceptional market events such as Administrative Scarcity Pricing. The cycle of Scenario 5 will step through the timeline of consecutive D-1 to D+4, (DAM, IDA, IDC, BM and SEMO Settlement) and the publication of market results. The DAM and IDA (2 of the 3 IDAs) are coupled in Scenario 5 through the allocation of cross-border capacity. SEMO Settlement of the TSOs balancing actions and any uninstructed deviations from a participant s notified DAM and IDM positions are included in Scenario 5. Credit Risk Management processes are included in Scenario 5. Complex operating exceptions (e.g. Administrative Scarcity Pricing) are not included in Scenario 5. The expansion of the Trial to include full 7 day operations, including the interdependencies between functions (e.g., DAM, IDM and BM) commences with Scenario 5. Provide participants the opportunity to consume data from the SEMO settlement processes and systems; Provide participants the opportunity to assess their own shadow settlement systems; Demonstrate the operation of complex balancing market settlement following interaction of the different market timeframes; Provide the opportunity to consume credit cover reports into their own internal systems; Operate in a full 24/7 scenario; Week Commencing Feb 5, 2018 to Mar 9, 2018 Mon Tue Wed Thurs Fri Sat Sun Day-Ahead Market Balancing Market Intraday Market Day-Ahead Settlement Intraday Settlement Day-Ahead Market Balancing Market Intraday Market Day-Ahead Settlement Intraday Settlement Day-Ahead Market Balancing Market Intraday Market Day-Ahead Settlement Intraday Settlement Day-Ahead Market Balancing Market Intraday Market Day-Ahead Settlement Intraday Settlement Day-Ahead Market Balancing Market Intraday Market Day-Ahead Settlement Intraday Settlement Day-Ahead Market Balancing Market Intraday Market EirGrid Commercial In Confidence. Page 31

32 Full Market- Normal Function Mon 5 Feb Fri 9 Mar :00 Publish- wind forecast 06:00 Publish- demand forecast 08:00 Run- Intraday Auction 2 08:40 Publish- Intraday Auction 2 results 09:30 Conference Call Planning Open Order Book- Day-Ahead Market, Balancing Market Open Order Book- Intraday Auction 3 and Intraday Continuous Trading 10:00 Submit- Day-Ahead Market bids Submit- Day-Ahead Market offers provided - Confirm Successful submission of offers and bids data files Submit- Cross Border Capacity to Day-Ahead Market- market is coupled 13:00 Run Day-Ahead Market auction Validate Day-Ahead Market auction results 14:00 Publish- wind forecast Publish- Day-Ahead Market results 13:00 Submit- Balancing Market Commercial Market Data 13:30 Submit- Physical Notifications (submitted by 13.30) 14:00 Run- Intraday Auction 3 Submit - Meter Data for Day+1 and Day+4 Publish- Intraday Auction 3 results 15:00 Publish- Indicative Operating Schedule based on Long-term Schedule Open Order Book- Intraday Auction 1 15:30 Publish- Trade and Order Files Run- SEMO Settlement 16:00 Publish- Settlement Statements 17:00 Conference Call Review Assessment 17:30 Run- Intraday Auction :00 Publish- wind forecast Open Order Book- Intraday Auction 2 18:10 Publish- Intraday Auction 1 Publish Receive Submit EirGrid Commercial In Confidence. Page 32

33 4.7 Scenario 6 Full Market Exceptional Conditions Purpose To execute market, system operations and settlement for what can be considered exceptional operating conditions Timeline March 12, March 16, 2018 Objectives To trial the key market and system operations processes under the following exceptional conditions High Demand forecast with intraday demand increasing High Demand forecast with intraday demand decreasing. Generation Unit Trip Security Constraint Update Reserve Shortfall Event Unit Under Test Fall Back Processes Overview [Trade Day] (Morning) demand forecast is revised up (increase in demand for [Trade Day]) [Trade Day] (Morning) demand forecast is revised down (decrease in demand for Trade Day-1) Unplanned trip of a large generating unit Tripped generation unit remains unavailable for a number of hours before re-declaring available [Trade Day] system security constraint updated to reflect a change in power system conditions The constraint impacts unit commitment and dispatch A number of units are declared unavailable resulting in a shortfall in reserve provision for a number of hours Reserve shortfall results in the implementation of Administered Scarcity Pricing Participants submit Unit under Test PNs including test flags for varying lengths of tests. This condition is repeated for a number of units in the fleet Failure of the DAM, implementation of fall back arrangements and restoration of the DAM. Failure of the IDM (IDA, IDC), implementation of fall back arrangements and restoration of the IDM. Scenario 6 seeks to trial the key market and system operations exceptional conditions as outlined below. With limited exceptions, Trial Participants will not be asked to follow detailed scripts. Controls restricting the submission of transaction data will be kept to a minimum with Trial Participants requested to submit input data (e.g. bids, offers, PNs) consistent with pre-defined conditions. The conditions will seek to replicate a range of exception circumstances that might not ordinarily be expected to occur in the timeframe allowed by the Market Trial. The cycle of Scenario 6 will step through the timeline of D-1 to D+4, (DAM, IDA, IDC, BM and Settlement) and the publication of market results and settlements Units under Test. Owners of Generation Units will be asked to put Units under Test in line with submissions to the Live SEM Market during the period of Market Trial. If no such event occurs then the Market Trial team will consider forcing a Unit Under Test Scenario. Participant Value Provide participants the opportunity operate in the market under exceptional circumstances including options on - reacting to significant changes in demand forecast while intraday trading options are available allow opportunities to trade around a significant generator trip / outage take part in simulation aimed at driving scarcity prices consume settlement results from difference payment / charges scenarios Scenario 6 Week 1 Demand Fluctuations, Generation Constraint, Generator Trip, Reserve Shortfall & Fallback processes EirGrid Commercial In Confidence. Page 33

34 Run Sheet Notes The Demand Fluctuations seek to generate conditions where changes in demand will impact the trading positions previously taken by participants in the market. Participant input to the day-ahead market should be as normal On receipt of updated demand forecast information, this provides an opportunity for participants to revise their ex-ante trading using the intraday market Supplier Units who will potentially have short positions due to the revised demand forecast, can enter the IDA1 and later auctions to trade. Generators not cleared in the DAM can offer further energy in the IDA1 and later auctions to meet the increased demand forecast These scenarios should provide insights into the impact of TSO actions on the imbalance price where the TSO has taken action on the basis of updated data not available in time for participants to respond in the ex-ante timeframe. While the run sheet notes data submission at Gate Closure 1, Physical Notifications and Commercial Offer Data submissions can continue up to Gate Closure 2 (up to 1 hour ahead of the imbalance settlement period) Gate Opening will be for D-19 Rolling The Generator Trip event seeks to trial conditions where there is reduced supply impacting on the participants trading positions. This scenario will centre around a single generator tripping The generator selected to trip should participate in the DAM without foreknowledge of the impending trip event This will mean that this generator should be scheduled and will be exposed to imbalance risk if no counter trades are done in the intraday market The tripped generator will need to enter the intraday markets (auctions and IDC) to try close out its imbalance position and minimize its imbalance exposure This will be through the generator trying to execute buy trades in the IDM It is expected that generators not yet scheduled will attempt to execute sell trades to replace the power lost by the generator trip This scenario will also afford participants the opportunity to observe the impact of TSO actions during the trip event, particularly how the TSO seeks to cover the immediate energy shortfall and how this interacts with the tripped generator s counter trade actions. The New Generation Constraint, Reserve Shortfall events seek to simulate market volatility and provide the opportunity for participants to trade in reaction to these conditions. Participants are expected to trade as normal in the ex-ante markets As more information becomes available with respect to scarcity events, generators with awarded capacity should seek to get scheduled positions from the exante markets to avoid exposure to scarcity prices Assetless traders should be seeking to completely close out ex-ante positions to avoid exposure to scarcity prices The Fall Back Processes will demonstrate the capability to sustain market and system operations in the event of system component or process failure Participants should participant as normal in the available markets in the fall back scenarios Depending on the scenario, participants will interact with different market software as required This will allow participants to test strategies for getting market positions in the event the coupled auctions are not available This will demonstrate to participants the implementation and impact of the administered settlement rules EirGrid Commercial In Confidence. Page 34