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User Group Meeting BGM 2015 Mövenpick-Hotel Zurich Airport, 11th November 2015 Agenda 10:00 Welcoming address Dr. Jörg Spicker Member of the Executive Board 10:20 Know your customer-Process Tim Albersmann 10:50 Implementation of position limits, consumption forecast and 1 BG model Oliver Haubensak 11:45 New balancing contract and consultation Theodoros Sevdas 12:00 Lunch / opportunity to discuss with Swissgrid representatives 13:00 Further development of market design for Switzerland Dr. Christian Kunze 14:00 Workshops to following topics » Improvement of price signals » Responsibility of balance groups for security of supply » Improvement of cross-border trading » Dr. Christian Kunze » Dr. Arthur Janssen » Urs Ziegler 15:00 Coffee break / opportunity to discuss with Swissgrid representatives 15:15 Nomination and schedule management operations & customer satisfaction 15:45 Feedback round and questions 16:00 End 11th November 2015 / User Group Meeting BGM 2015 Urs Ziegler, Marc Rüede Nicolas Schledermann, Benito Barberio User Group Meeting BGM 2015 Dr. Jörg Spicker, Member of the Executive Board Mövenpick-Hotel Zurich Airport, 11th November 2015 The electricity market is rapidly changing » Different system » Different market parties » Different trading 11th November 2015 / User Group Meeting BGM 2015 The electricity system will be fundamentally different » Energy efficiency » Decentralised production » Volatile generation 11th November 2015 / User Group Meeting BGM 2015 Balance Group portfolio is growing continuously 128 50 2009 11th November 2015 / User Group Meeting BGM 2015 2015 Trading patterns are changing Example: Implicit Day-Ahead trade volumes have drastically increased Source of data is EPEX Spot 11th November 2015 / User Group Meeting BGM 2015 Swiss market is increasingly instable and inappropriate » Responsibility of Balance Groups? » Efficiency of the “Energy Only Market”? » Integration in EU-market? 11th November 2015 / User Group Meeting BGM 2015 Responsibility of Balance Groups is tested » Balance Groups are responsible for the functioning of the market. » But what does it mean for each Balance Group to ensure a balanced portfolio? » What is the role of the TSO in ensuring grid stability? 11th November 2015 / User Group Meeting BGM 2015 Efficiency of the «Energy Only Market» is questioned » Do today’s marginal prices reflect the real value? » Do we need a regulated capacity mechanism, support payments? » Is cross-border trading still efficient or should it be adapted? 11th November 2015 / User Group Meeting BGM 2015 Situation with EU creates considerable uncertainty » Cooperation with EU heavily impacted by Bilateral Negotiations » Solution without EU and neighbouring countries problematic 11th November 2015 / User Group Meeting BGM 2015 We must face this together » Swissgrid facilitates the market, ensures grid stability » Market parties ensure the functioning of the market 11th November 2015 / User Group Meeting BGM 2015 Two-step approach to develop the Swiss market design We have engaged you in a cooperation to » Reduce risks » Increase efficiency 11th November 2015 / User Group Meeting BGM 2015 Short-term: Reduce imminent risks with smaller changes » Sharpen a common understanding of Balance Group responsibility » Main points: KYC-process, position limits, contractual clarifications » Discussed intensively with BG representatives since last User Group Meeting Consultation starts tomorrow, 12th Nov 2015 Implementation proposed by Mid 2016 11th November 2015 / User Group Meeting BGM 2015 Long-term: More fundamental changes » Increase efficiency and innovation, build on Swiss values and specifics » Main points: Price signal, adequacy responsibility, cross-border trading » Worked on these topics with many stakeholders in several projects Workshops today, start “informal consultation” till end of this year Implementation decisions will follow in 2016 11th November 2015 / User Group Meeting BGM 2015 A common goal With the development of the market design, we try to exploit potentials of the future electricity system 11th November 2015 / User Group Meeting BGM 2015 Know your Customer-Process Tim Albersmann, Project Manager Customer Affairs Mövenpick-Hotel Zurich Airport, 11th November 2015 Virtualisation and internationalisation are growing challenges for trustful business relationships » Growing international balance group portfolio » Loss of relationships and trust values due to virtualization » Take on responsibly is essential for a working Swiss market and network stability as well 11th November 2015 / User Group Meeting BGM 2015 Balance Group portfolio is growing continuously 128 50 2009 11th November 2015 / User Group Meeting BGM 2015 2015 Companies with different business models and characteristics participate in the Swiss market » Established company ↔ Start-up » Big ↔ Small » Trading and/or supplying customers » Shared processes ↔ All inhouse 11th November 2015 / User Group Meeting BGM 2015 Relationships of trust shall not be lost due to ongoing virtualisation and internationalisation «Back in the days» «Nowadays» Collaboration Daily telephone coordination Virtual, digital Business relationship Bilateral (1:1) Multilateral (1:N) Business model Long run, stable Flexibility, agility, ongoing liberalisation Location Local and central International and decentral 11th November 2015 / User Group Meeting BGM 2015 Balance Group Management is of central importance for the Swiss electricity market » National and international physical processing of trades » Supplying end customers » Power frequency control » Control energy use » Settlement of balance energy 11th November 2015 / User Group Meeting BGM 2015 Balance Group Management also provides input for grid management and security analysis » The set point for the system controller is thus determined from all cross-border schedules » Cross-border schedules and the power plants' production schedules provide an important determining factor for the grid security analysis 11th November 2015 / User Group Meeting BGM 2015 Highest priority for Swissgrid is maintaining the security of supply at all times » ± 800-900 MW control reserves are available for this purpose, among other measures within the Swiss control area » Control reserves are not meant to be used for secure trading » Control reserves are meant for short-term consumption and production deviations » Each balance group is obliged to reach a zero 11th November 2015 / User Group Meeting BGM 2015 In order to provide network security and a functioning Swiss market, it is essential to take on responsibilites TSO » Ensures network stability » Provides a suitable BGM «framework» and reliable market » Low utilization of control energy 11th November 2015 / User Group Meeting BGM 2015 Market » Capable to operate scheduling processes in a professional manner » Responsible for being zero balanced » Handles the contractual commitment The Swiss market relies on all participants to take on their responsibilites » A single imbalance is able to endanger the whole Swiss electricity system » The Swiss electricity system places its trust in all participants » This works only if we can rely on all participants to assume their responsibility - without a single exception! 11th November 2015 / User Group Meeting BGM 2015 Three major things we have learned from cases of imbalances » Capability to handle complex products and processes is key for each market participant » Risk processes can break down the risks of complexity to a manageable level » Availability 11th November 2015 / User Group Meeting BGM 2015 How can we make sure that every entity assumes its responsibility? 11th November 2015 / User Group Meeting BGM 2015 Create a shared understanding of risks and solutions Introduction of Limits 11th November 2015 / User Group Meeting BGM 2015 Build up trustful relationships through Know Your Customer (KYC) approach Review and clarification of BGM contract The «KYC» approach will enable us to mitigate risks and provide a safe market environment » We need to be able to trust that market participants are able to handle the contractual commitment » We will check that responsibilities can be taken on before activation and during operations » Focus on the current BG portfolio and future market participants » To lift anonymity and to build strong business relations is essential to trust » Knowledge about the portfolio will enable us to manage risks appropriately 11th November 2015 / User Group Meeting BGM 2015 The «KYC» approach is based on three key elements and will complement the registration and activation process Identity Analysis and proof of basic identity information Context Risks Understanding the context scheduling is used for in the business model Evaluation of trading positions, consumption and risk mitigating capabilities BG registration and activation process 11th November 2015 / User Group Meeting BGM 2015 In order to track changes in the BG Portfolio, the «KYC» approach is ongoing Identity Analysis and proof of basic identity information Context Risks Understanding the context scheduling is used for in the business model Evaluation of trading positions, consumption and risk mitigating capabilities BG registration and activation process Operational processes 11th November 2015 / User Group Meeting BGM 2015 Before activation and during operation the Balance Group needs to meet requirements and contractual commitments » General requirements need to be met for the activation and ongoing operational processes » Obligation and compliance for specific scheduling processes are necessary to provide a secure network and Swiss market place 11th November 2015 / User Group Meeting BGM 2015 The Balance Groups should meet the following essential requirements and contractual commitments General requirements Scheduling process-specific requirements » To pass the registration process successfully » Obligation to generally provide a zero power balance » To update or provide the required information for the registration » Compliance with: − the submitted schedule − the limits* − the plausibility values for consumption and production* » To provide an operational contact and the availability thereof to the agreed extent » Submission of the consumption forecast for balance groups with metering points * will be introduced in the next presentation 11th November 2015 / User Group Meeting BGM 2015 Timeline to implement the «KYC» approach Update the registration form and process Q4 2015 – Q2 2016 Sign contracts From Mar 2016 Apply to new registrations from Q2 2016 Review and analysis of existing portfolio from Q2 2016 Q4 2015 Q1 2016 11th November 2015 / User Group Meeting BGM 2015 Q2 2016 Q3 2016 Q4 2016 2017 Introduction of todays present Swissgrid Team Customer Affairs Massimo Lorreti Tim Albersmann Trang Nguyen Capacity Allocation & Scheduling Urs Ziegler Marc Rüede Nicolas Schledermann Benito Barberio Market Development & Design Dr. Arthur Janssen Oliver Haubensak Holger Liske Theodoros Sevdas Monica Talerico Dr. Christian Winzer 11th November 2015 / User Group Meeting BGM 2015 Dr. Christian Kunze Introduction of todays present Swissgrid Team Clearing & Settlement Markus Schweizer Marco Pranjic 11th November 2015 / User Group Meeting BGM 2015 Strategy & Development Stephan Fretz Corporate Services Lea Lindler Introduction of Position Limits, 1-BG Model and Postponement of Post Scheduling Adjustment Oliver Haubensak, Specialist Market Design Mövenpick-Hotel Zurich Airport, 11th November 2015 Switzerland is one of the EU’s major trading partners for electricity Germany 11.5 4.5 0.5 2.9 France 5.8 Austria 10.0 24.4 0.8 Italy 11th November 2015 / User Group Meeting BGM 2015 Electricity Import and Export In (TWh) 2014 Open positions emerge by the optimization of electricity flows Germany Austria BG BG France » 4000 MW of open positions in BG intraday » 1300 MW one hour before delivery Italy 11th November 2015 / User Group Meeting BGM 2015 Open positions are much higher than our control reserves Maximum cumulative open position of all balance groups without metering points per scheduling day (example 2015) MW 5000 4000 3000 2000 control reserves 1000 0 Month 1 11th November 2015 / User Group Meeting BGM 2015 Month 2 Month 3 Month 4 Example: Cumulative open position for one scheduling day Delivery Hour Observation Hour 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 16:30 17:00 18:00 19:00 20:00 21:00 22:00 23:00 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 1386 1386 1386 1407 1407 1407 1407 0 1455 1455 1455 1475 1476 1476 1476 20 0 1334 1334 1334 1355 1355 1355 1375 0 0 0 1525 1525 1525 1545 1545 1545 1545 0 0 0 0 1284 1284 1284 1427 1428 1428 1428 0 0 0 0 0 1513 1513 1513 1776 1777 1777 1777 31 31 31 31 1 1 1605 1605 1605 1746 1746 1746 1746 30 30 30 30 30 30 0 1608 1608 1608 2003 2003 2003 2003 30 30 30 30 30 30 30 0 1782 1782 1782 1977 1977 1977 1977 60 60 60 60 60 60 10 6 0 [absolute netted open position in MW] 11th November 2015 / User Group Meeting BGM 2015 1757 1757 1757 2116 2116 2116 2116 0 0 0 0 0 0 0 0 0 0 1967 1967 1967 2249 2249 2249 2249 38 38 38 38 38 38 38 38 38 11 59 1868 1868 1868 2368 2368 2368 2368 30 30 30 30 30 30 30 30 0 0 4 3 2031 2031 2031 2126 2126 2126 2126 60 60 60 60 60 60 60 60 25 25 25 6 43 2039 2039 2039 2224 2224 2224 2224 578 578 578 578 578 578 578 578 578 578 578 521 451 0 1836 1836 1836 2549 2549 2549 2549 439 439 439 457 457 457 439 439 439 439 439 415 409 91 0 1875 1875 1875 2486 2486 2486 2486 514 513 513 538 538 538 519 519 519 519 480 480 327 98 167 2 1883 1883 1883 2700 2700 2700 2700 360 360 360 385 400 400 360 360 360 360 360 360 373 370 63 135 16 1408 1408 1408 2384 2385 2385 2385 1100 1100 1100 1100 1100 1100 1100 1100 1100 1100 1100 1100 1087 1102 992 993 6 15 1466 1466 1466 2417 2418 2418 2418 1530 1530 1530 1530 1530 1530 1530 1530 1530 1530 1530 1530 1515 1555 1555 1556 66 25 25 1376 1376 1376 2316 2316 2316 2316 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1300 1285 1325 1325 1326 25 25 25 25 1364 1364 1364 2254 2255 2255 2255 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 7 30 0 0 0 1739 1739 1739 1968 1968 1968 1968 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 11 33 0 0 0 0 1755 1755 1755 1813 1813 1813 1813 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 7 29 1 1 1 1 1 1786 1786 1786 1806 1806 1806 1806 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 25 25 1 1 1 1 1 31 1 Open positions are kept until shortly before the physical delivery Maximum cumulative open position of all balance groups without metering points 1 hour before delivery per scheduling day (example 2015): MW 1500 1000 control reserves 0500 0000 Month 1 11th November 2015 / User Group Meeting BGM 2015 Month 2 Month 3 Month 4 Example: Cumulative open position for one scheduling day Delivery Hour Observation Hour 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 16:30 17:00 18:00 19:00 20:00 21:00 22:00 23:00 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 179 179 179 179 179 219 63 0 103 103 103 103 103 143 68 0 0 103 103 103 103 103 143 7 18 56 0 100 100 100 70 70 140 38 0 0 18 0 100 100 100 70 70 150 45 0 0 0 0 3 200 200 200 200 200 200 38 0 0 0 0 0 0 156 156 156 156 156 176 38 1 22 0 0 0 0 0 151 151 151 150 150 150 51 0 0 0 0 0 0 0 68 0 0 0 0 0 0 104 0 0 0 0 0 0 0 44 50 [absolute netted open position in MW] 11th November 2015 / User Group Meeting BGM 2015 1 1 1 0 0 0 129 0 0 0 0 0 0 0 6 0 612 20 20 20 20 20 0 102 0 0 0 0 0 0 0 0 0 2 151 0 0 0 0 0 0 343 0 0 0 0 0 0 0 0 0 0 55 436 0 0 0 0 0 0 532 0 0 0 0 0 0 0 0 0 0 0 338 341 0 0 0 0 0 0 563 0 0 0 0 0 0 0 0 0 0 0 145 56 503 22 22 22 0 0 0 563 0 0 0 0 0 0 0 0 0 0 0 305 80 438 223 53 53 53 0 0 0 543 0 0 0 0 0 0 0 0 0 0 0 0 3 0 363 75 82 82 82 22 22 22 154 0 0 0 0 0 0 0 0 0 45 0 0 3 15 33 87 104 62 62 62 0 0 0 108 0 0 0 0 0 0 0 0 0 0 0 0 0 0 40 5 118 151 51 51 51 0 0 0 58 0 0 0 0 0 0 0 0 0 5 5 0 0 3 47 0 20 30 60 0 0 0 0 0 0 58 0 0 0 0 0 0 0 0 0 0 17 0 3 3 1 0 39 30 30 30 3 3 3 3 3 3 124 3 3 3 3 3 3 3 3 3 3 3 3 3 5 3 3 61 75 50 50 50 38 38 38 25 25 25 116 0 0 0 0 0 0 0 0 0 12 26 0 1 0 31 0 53 68 65 58 58 14 50 50 50 0 0 0 319 0 0 0 0 0 0 0 0 0 12 64 0 0 0 40 0 30 30 172 30 30 30 30 33 33 33 17 17 17 525 0 0 0 0 0 0 0 0 0 45 0 0 1 25 5 0 20 31 112 30 30 27 30 76 While the number of imbalances decreased… Reduction in number of imbalances after start of penalization mechanism: 18 16 17 14 14 12 11 10 11 12 9 8 8 7 6 8 5 4 3* 3 2 0 Dez 12 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 *until 7.11.2015 11th November 2015 / User Group Meeting BGM 2015 …the imbalances themselves increased! Since July 2015, Swissgrid faced several high imbalances Date Imbalance Peak 03.07.2015 50 MW 28.07.2015 147 MW 25.08.2015 439 MW 25.10.2015 140 MW 01.11.2015 415 MW 11th November 2015 / User Group Meeting BGM 2015 Open positions which cannot be closed at physical delivery endanger the network security ~ Severe endangerment of the network security by » an important imbalance of a single balance group, or » a number of middle-sized imbalances of balance groups. Financial Risk: Large imbalances lead to a significant financial claim. 11th November 2015 / User Group Meeting BGM 2015 Control reserves (800-900 MW) are limited and are not a disposable value for balance groups. » PCP ± 71 MW » SCP ~ ±400 MW » TCP ~ +450 MW -300 MW A severe violation of the network security due to an imbalance from open positions would put into question our current market framework. Today: No instrument to target open positions in the intraday process » Balance groups are obliged to close their positions latest at COT Post Scheduling Adjustment. » Daily experience shows that the closing of positions in the Post Scheduling Process is difficult. § The market is yours! » It is the responsibility of each balance group to operate the business in a safe manner. » Swissgrid operates the market, but cannot take on responsibility for balance groups. » Market participants carry the responsibility together for a well functioning and safe market place. Challenges are discussed in close collaboration with market participants 2015 2014 2013/14 2009 Since its establishment in 2009, Swissgrid has been in close collaboration with market participants. Swissgrid started open discussions with balance groups about challenges faced by the current market design. 11th November 2015 / User Group Meeting BGM 2015 Further development of concepts with the help of the «Expert Group BGM» . Presentation at User Group Meeting BGM in November 2014. Concepts have been developed further with the help of the «Expert Group BGM». Presentation at User Group Meeting BGM in November 2015. Consultation of Balance Group Contract. Swissgrid thanks to the following participants of the «Expert Group BGM» for their valuable contributions The « Expert Group BGM » is an open official committee of experts consisting of balance groups and scheduling system suppliers. » 4 Meetings were held in 2015 » Members: Balance Groups: AET Alpiq Axpo BKW EWB EWZ OMPEX SBB Statkraft Swenex 11th November 2015 / User Group Meeting BGM 2015 System Suppliers: Enoro Powel Soptim The following measures were discussed and are proposed to be implemented in 2016 1 Position Limits Graduated position limits of open positions in intraday Financial penalties Consumption forecast Plausibility values from production and consumption 11th November 2015 / User Group Meeting BGM 2015 1-BG Model Postponement of Post Scheduling Adjustment by one working day Position Limits COT ID D Long Position D-2h Position limits are proposed to be implemented in order to minimize the risk of imbalances ~ Short Position time > » Minimal impact for market: Open positions are still possible in the intraday. » Target: Closing of positions latest at COT ID. » Post Scheduling Adjustment still possible for optimizing balancing energy due to forecast deviations. 11th November 2015 / User Group Meeting BGM 2015 The Limits set the amount of collaterals to be provided Limit 1: DA up to D-2h Limit 2: D-2h up to COT ID Limit 3: COT ID and PS* [MW] [MW] [MW] (long/short) (long/short) (long/short) 10 10 10 100’000 25 10 10 200’000 50 25 10 400’000 100 25 10 550’000 200 50 10 850’000 300 75 10 1’100’000 400 100 10 1’400’000 D = Delivery / date of physical delivery COT = Cut-off time Collateral [EUR] ID = Intraday DA = Day-ahead PS = Post-scheduling * Schedules of balance groups without metering points consisting of an open position higher than Limit 3 or the previous schedule can be fully rejected. 11th November 2015 / User Group Meeting BGM 2015 Position Limits illustrated with the intraday timeline Time 21:46 22:01 22:16 22:31 22:46 23:01 23:16 23:31 23:46 00:01 00:16 L1 L2 L2 L2 L2 L2 L2 L2 L3 L3 L3 L1 L1 L2 L2 L2 L2 L2 L2 L2 L3 L3 L1 L1 L1 L2 L2 L2 L2 L2 L2 L2 L3 L1 L1 L1 L1 L2 L2 L2 L2 L2 L2 L2 L1: D-2h L1:DA DAup upto to D-2h 11th November 2015 / User Group Meeting BGM 2015 L1 L1 L1 L1 L1 L2 L2 L2 L2 L2 L2 L1 L1 L1 L1 L1 L1 L2 L2 L2 L2 L2 L1 L1 L1 L1 L1 L1 L1 L2 L2 L2 L2 L1 L1 L1 L1 L1 L1 L1 L1 L2 L2 L2 L2: D-2h up to COT ID L1 L1 L1 L1 L1 L1 L1 L1 L1 L2 L2 L1 L1 L1 L1 L1 L1 L1 L1 L1 L1 L2 L1 L1 L1 L1 L1 L1 L1 L1 L1 L1 L1 02:45 02:30 02:15 02:00 01:45 01:30 01:15 01:00 00:45 00:30 00:15 00:00 Trading Intervalls L1 L1 L1 L1 L1 L1 L1 L1 L1 L1 L1 L3: COT ID and PS Some balance groups will be affected by position limits Limit 1 / Limit 2 / Limit 3 Number of balance groups Collateral [MW] (long/short) [EUR] 10 / 10 / 10 92 100’000 25 / 10 / 10 1 200’000 50 / 25 / 10 5 400’000 100 / 25 / 10 3 550’000 200 / 50 / 10 0 850’000 300 / 75 / 10 1 1’100’000 400 / 100 / 10 7 1’400’000 Total: 109 0 20 40 60 80 100 120 » Analysis for all 109 balance groups without metering points (Trading-BG) is based on the month of August 2015 and Limit 1. » Open positions of the 19 balance groups with metering points are not known. 11th November 2015 / User Group Meeting BGM 2015 A revised penalization mechanism is proposed to replace the existing mechanism Penalty 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance 𝑀𝑀𝑀𝑀𝑀 = 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 − 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 3 𝐵𝐵𝐵𝐵𝐵𝐵 = 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 [𝐸𝐸𝐸𝐸𝐸𝐸/𝑀𝑀𝑀𝑀𝑀] Retention Time Warning 6 Month 1 𝑥𝑥 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance ∗ 𝐵𝐵𝐵𝐵𝑃𝑃 6 Month 2 𝑥𝑥 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance ∗ 𝐵𝐵𝐵𝐵𝑃𝑃 5 𝑥𝑥 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿3exceedance ∗ 𝐵𝐵𝐵𝐵𝑃𝑃 3 Month 1 Month » The observation period consists of one scheduling day » Penalties are based on ¼ h values 11th November 2015 / User Group Meeting BGM 2015 Penalties from exceeding Limit 3 can be waived List of exceptions: » Intervention in power plant deployment by Swissgrid (critical grid situation) » Redispatch measures » Delegation of activated tertiary control reserve » Outage of the schedule systems on the part of the BG » Production failure / power plant outage » Outdated plausibility values leading to a penalty » Deviation of control pooling delivery to control energy request 11th November 2015 / User Group Meeting BGM 2015 The open position is based on the received TPS Schedule Document Basic procedures: » The open position is calculated from the received time series in the TPS Schedule Document. » In case a time series is rejected, the last accepted version will be used to calculate the open position. » In case a new time series is rejected, the time series counts as 0. » Market rules, copy from counter-schedule or manual intervention always precede. Open Position Nominated TPS Schedule Matched Status » No dependency on schedule from counterparty (until COT) » Intention of market participant » Dependency on schedule from counterparty Basis for position validation 11th November 2015 / User Group Meeting BGM 2015 More data is required for the validation of the position of balance groups with metering points Required data and information in order to validate open position: BG without metering points «Trading-BG» BG with metering points Time series from TPS Schedule Document Time series from TPS Schedule Document Consumption forecast (CONS) Static plausibility values from production and consumption: 𝑃𝑃𝑃𝑃𝑃𝑃𝐷𝐷𝑀𝑀𝑀𝑀𝑀𝑀 𝑃𝑃𝑃𝑃𝑃𝑃𝐷𝐷𝑀𝑀𝑀𝑀𝑀𝑀 𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀 𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀 » Note: Production forecast is not needed » Algorithm for validation of the open position can be found in the consultation document 11th November 2015 / User Group Meeting BGM 2015 The definition of the consumption forecasts is adapted to the Swiss supply market Definition of CONS: » CONS shall be provided according «LPA/BG» » Pump capacity, redispatch and control energy not to be included. » Deviation of specified definition by up to a maximum of 20% of the daily consumption volume in justified exceptional cases. » Example: existing net forecast from clients of a balance group. Basic guidelines: » First nomination before 14:30 in the day-ahead process in the TPS Schedule Document. » Updates in the intraday process. » No updates in the post scheduling adjustment. » The CONS time series is checked against the 𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀 and 𝐶𝐶𝐶𝐶𝐶𝐶𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀 values. LPA: load profile aggregate (DE: Lastgangsumme / LGS) 11th November 2015 / User Group Meeting BGM 2015 Plausibility values take into consideration power plant and pump shares IPT and LPA of past 12 month 𝑷𝑷𝑷𝑷𝑷𝑷𝑫𝑫𝑴𝑴𝑴𝑴𝑴𝑴 𝑷𝑷𝑷𝑷𝑷𝑷𝑫𝑫𝑴𝑴𝑴𝑴𝑴𝑴 𝑪𝑪𝑪𝑪𝑪𝑪𝑺𝑺𝑴𝑴𝑴𝑴𝑴𝑴 𝑪𝑪𝑪𝑪𝑪𝑪𝑺𝑺𝑴𝑴𝑴𝑴𝑴𝑴 Pump and Powerplant shares Own pump capacity IPT: input profile total (DE: Einspeisegangsumme / EGS) LPA: load profile aggregate (DE: Lastgangsumme / LGS) » Values will be calculated by Swissgrid and confirmed by the BG before becoming valid » Plausibility values will be reviewed periodically (planned: yearly). » Formula for the calculation of plausibility values can be found in the consultation document 11th November 2015 / User Group Meeting BGM 2015 1 1-BG Model The 1-BG Model is ready for implementation Main features: » Elimination of BG-Types » Standard BG » Control BG » CH-15 BG » Schedules of Type CH-15 BG will be nominated with BusinessType A02, same as «normal trade». » Schedules of Control-BG will be nominated according to the product. » Lead Times for internal schedules will be reduced to 15 Min. Overview intraday lead times for schedule nomination Internal 15 Minutes External 45 Minutes External ID-Balancing (FR) 15 Minutes » Contract based nominations will be implemented in 2017. 11th November 2015 / User Group Meeting BGM 2015 The following coding for schedules is planned to be implemented Type of time series BusinessType CapacityContractType Internal Internal trade Consumption forecast (CONS) Secondary control Tertiary control Control pooling Energy deficit National redispatch A02 A04 A12 A10 A14 A15 A85 - External External trade (DE, FR and AT) A06 External trade (FR: balancing market) A03 External Trade (IT) A03 11th November 2015 / User Group Meeting BGM 2015 A11 A05 For further simplification the process type «A17 / Schedule Day» will be used Simplification of ProcessType: » ProcessType A17 (Schedule Day) will be used. » Process will be determined according to the incoming time stamp. Today: A01 (Day-Ahead) A02 (Intraday) A13 (Post scheduling adjustment) Example: Today: From Q2/Q3 2016: A17 (Schedule Day) TPS Schedule Document arrived at 15:31 with ProcessType A01 is rejected. Tomorrow: TPS Schedule Document arrived at 15:31 with ProcessType A17 will be processed in the intraday process. 11th November 2015 / User Group Meeting BGM 2015 Postponement of Post Scheduling Adjustment by one working day More time for Post-Scheduling Adjustment! The Post Scheduling adjustment process will be extended to D+2 working days 4 p.m.: » extended period for the provision of data for the post-scheduling adjustment by BGM » workload is reduced on Monday Weekday Days to be accounted for Monday Thursday Tuesday Friday, Saturday, Sunday Wednesday Monday Thursday Tuesday Friday Wednesday Saturday -- Sunday -- 11th November 2015 / User Group Meeting BGM 2015 Publication: «Assessing distorted trading incentives of balance responsible parties based on the example of the Swiss power system» » A paper has been published in the journal «Energy Policy», analysing the arbitrage potential of the former Swiss control energy pricing mechanism (until Nov 2012) against intraday prices. » The article can be downloaded from the link free of charge until the end of November 2015: http://authors.elsevier.com/a/1RrCd14YGgMDzZ Reference: Marc Scherer, Oliver Haubensak, Thorsten Staake, Assessing distorted trading incentives of balance responsible parties based on the example of the Swiss power system, Energy Policy, Volume 86, November 2015, Pages 792-801, ISSN 0301-421 11th November 2015 / User Group Meeting BGM 2015 The following next steps and time line are planned Consultation Feedback Signing Contracts Nov 2015 – Dec 2015 Feb 2016 from Mar 2016 Positions Limits Q2/Q3 2016 1-BG Model Q2/Q3 2016 PSA D+2 WD Q2/Q3 2016 Financial Penalties Earliest Go-Live Position Limits + 2 Month Contract Based Nomination 2017 Q4 2015 Q1 2016 11th November 2015 / User Group Meeting BGM 2015 Q2 2016 Q3 2016 Q4 2016 2017 New Balancing Contract and Consultation Theodoros Sevdas, Specialist Market Products and Analysis Mövenpick-Hotel Zurich Airport, 11th November 2015 Swissgrid integrated the new concepts into the existing contractual framework KYC 1-BG Model Financial Guarantees 11th November 2015 / User Group Meeting BGM 2015 Position Limits Suspension Swissgrid can react quickly in cases of contract breach Breaches of the contract can lead to risks for the security of supply or to a financial risk for Swissgrid or other market players. Swissgrid has to react quickly to safeguard the functioning of the system. A balance group that violates essential contractual obligations may be excluded in the short term from all scheduling activities. Swissgrid will always first try to find solutions together with the balance group. A suspension can be revoked as soon as the balance group can prove that it is able to fulfil its contractual obligations. 11th November 2015 / User Group Meeting BGM 2015 The existing contractual framework and document structure is maintained Balace Group Contract Main legal provisions and contractual obligations of the parties General Balance Group Regulations Detailed description of registration and contractual obligations for all aspects of balance group management Technical Balance Group Regulations Technical details regarding all related processes, timings and formats Registration Form Contact details, production and load data, …. 11th November 2015 / User Group Meeting BGM 2015 Existing contracts are modified according to new concepts 1-BG Model Position Limits Financial Securities KYC Suspension • All provisions regarding the 3-BG Model have been removed • Art. 11 of Balance Group Contract • Art. 2.2 of General Regulations provide detailed information • Collateral is precondition for registration • Detailed information in Art. 2.4 of General Regulations • Art. 3 of Balance Group Contract • Art. 1 of General Regulations provide detailed information • Art. 14 of Balance Group Contract describes the detailed conditions 11th November 2015 / User Group Meeting BGM 2015 The following next steps and time line is planned Consultation Nov 2015 – Dec 2015 Feedback Feb 2016 Signing Contracts from Mar 2016 Positions Limits 1-BG Model KYC Financial Securities Suspension Q2/Q3 2016 Q4 2015 Q1 2016 11th November 2015 / User Group Meeting BGM 2015 Q2 2016 Q3 2016 The consultation of the amended contractual framework will start tomorrow » Consultation will last four weeks from 12th November 2015 until 10th December 2015 » All market parties are welcome to contribute their views » Consultation will be performed on a dedicated Swissgrid platform: http://consultation.swissgrid.ch » Login data have been distributed to market participants » Login sent by email on 10th November 2015 » PIN sent by postal mail 10th November 2015 » A manual for using the consultation platform is provided on the website 11th November 2015 / User Group Meeting BGM 2015 Using the consultation platform ********** 11th November 2015 / User Group Meeting BGM 2015 Using the consultation platform 11th November 2015 / User Group Meeting BGM 2015 Using the consultation platform 11th November 2015 / User Group Meeting BGM 2015 Using the consultation platform 11th November 2015 / User Group Meeting BGM 2015 Using the consultation platform 11th November 2015 / User Group Meeting BGM 2015 Do not hesitate to contact us in case of questions Questions regarding the access to the consultation: [email protected] Tel. +41 848 016 016 Questions regarding the consultation documents? [email protected] 11th November 2015 / User Group Meeting BGM 2015 11th November 2015 / User Group Meeting BGM 2015 Further development of market design for Switzerland Dr. Christian Kunze, Senior Specialist Market Design Mövenpick-Hotel Zurich Airport, 11th November 2015 Tomorrow’s electricity system will be fundamentally different » » » » Distributed generation More volatility Lower marginal prices More smart technologies Future challenges require further development of the market design » Transformation process from a centralized towards a decentralized generation system continues – how to integrate intermittent generation and the demand-side into the market design? » The European target model for electricity markets is nearly finished – which additional elements requires a future-proof market design? » National capacity market models in Europe are in place – how to harmonize them with the further development of the Internal Energy Market? 11th November 2015 / User Group Meeting BGM 2015 Proposal: combine innovative, European concepts! » Market design is to be adapted, while keeping the present advantages: Efficient EOM, European integration, … » Build on innovative but existing concepts from within Europe and combine these to a consistent, market-oriented concept: Create a strong real-time price signal, continuous across timeframes Create a true European approach for adequacy Enhance XB-optimization across all timeframes 11th November 2015 / User Group Meeting BGM 2015 Evolution process of the Flexibility Market Concept Scoping Study «Development of Flexibility Markets in Switzerland» (Swisselectric/ Swissgrid/Pöyry) 09/14 12/14 Publication «Markets for Adequacy and Flexibility» (Swissgrid) 03/15 06/15 09/15 «Consultation Document on Future Market Design» (Swissgrid) 12/15 Numerous national and international presentations, discussions and workshops on innovative market design with very positive feedback. «Feasibility Study for the Cross-Border Trading of Swiss Flexibility» (Swisselectric/ Swissgrid/Pöyry) 11th November 2015 / User Group Meeting BGM 2015 «Multi-Client Study End Customer Flexibility» (EnAdvice et al.; in progress) Publication «Machbarkeitsstudie für die grenzüberschreitende Vermarktung von Flexibilität» (Swisselectric & Swissgrid) Creation of a strong real-time price signal 11th November 2015 / User Group Meeting BGM 2015 Creation of a strong real-time price signal, continuous across timeframes (6/6) = new elements 4 Reliability Options (national vs. x-border) Auction 1 Market Integration of RES Trading Forward Prices Day-Ahead Prices New Balancing Energy prices 3 Integrated TSO Market 2 3 5 Trading Intraday Prices Demand-side Response Real-time Prices t Delivery » From a centralized generation system to a decentralized prosumer system 5 » Further development of pooling concept for flexible loads by supplying customer flexibility on the balancing energy and wholesale market 11th November 2015 / User Group Meeting BGM 2015 A European and market-based approach for adequacy 11th November 2015 / User Group Meeting BGM 2015 Approaches of European countries to security of supply are drifting apart Europe is currently characterized by a patchwork of national CRMs, Hedging responsibility is placed on different stakeholders. Source: IHS presentation at Dauphine 11th November 2015 / User Group Meeting BGM 2015 Strengthen role of market players in adequacy » In a liberalised market, market players have an implicit responsibility for their balance groups: They are «Balancing Responsible Parties» (BRPs). » In the Swiss balancing group contract, the BRPs are responsible for keeping their own position balanced at all times. Many other countries have alike solutions. » From our perspective, this balancing responsibility includes prognosis and, if needed, forward hedging of sufficient resources for their end-customer supply. We propose to further develop the market incentive in this respect − Strengthen the price signal, as seen before − Regional approach to security of supply − Participation of foreign providers in national capacity mechanisms 11th November 2015 / User Group Meeting BGM 2015 Regional approach to Security of Supply Swissgrid proposes main principles: » Adequacy should be tradeable across borders: ˗ participation of foreign providers in national CRMs ˗ increasing harmonization of CRM designs » Adequacy should be assessed regionally, or better, on European level 11th November 2015 / User Group Meeting BGM 2015 Example: Regional approach reveals efficiency Swissgrid is actively working on regionalization of security of supply, with neighbouring and CWE TSOs. LOLE estimate Exemplary analysis of «Loss of Load Events» in CWE+ [h] 3500 3000 P95 2500 Average 2000 1500 1000 500 AT BE 11th November 2015 / User Group Meeting BGM 2015 CH DE FR Regional National Regional National Regional National Regional National Regional National National Regional 0 NL Source: Swissgrid based on «PLEF Generation Adequacy Assessment 2015» Participation of foreign providers in national CRMs Model 1 Model 2 Model 3 Model 4 Counterparty TSO TSO Generators Generators Subcontracts None Production capacity (generators Transmission capacity (TSO) None » Exclusive remuneration of only generation (model 4) or only transmission (model 2) distorts investment » Foreign capacity mechanisms should thus remunerate both generation and transmission (Models 2&3) 11th November 2015 / User Group Meeting BGM 2015 Optimization of cross-border trading 11th November 2015 / User Group Meeting BGM 2015 Optimization of cross-border trading Swissgrid is an observer in the CWE Flow-Based project and plays an active role in the European Cross-Border Intraday (XBID) project. Swissgrid also developed the technical readiness for the participation in various European market coupling initiatives. Political circumstances create doubts whether Switzerland will soon be able to participate in the aforementioned initiatives and to increase European social welfare in the near future. What else can we do in order to increase the trans-national electricity system efficiency with neighbouring countries? 11th November 2015 / User Group Meeting BGM 2015 Optimization of cross-border trading Swissgrid proposes the following measures: 1. Convergence of National and Cross-Border Gate Closure Times 2. 15-Minute Intraday Call Auction Between Germany and Switzerland 3. Introduction of Intraday Border Auctions 11th November 2015 / User Group Meeting BGM 2015 Convergence of national and cross-border gate closure times Flexible generators (or the demand-side) have problems to support system balancing on the intraday market in neighbouring countries: » Relatively long cross-border nomination lead times » Missing harmonization of national intraday products (e.g. granularity) Social welfare generation based on intraday cross-border transactions is limited. Swissgrid aims to reduce the lead-time for the nomination of cross-border intraday trading transactions and to support the trading of products with a resolution of 15 minutes. 11th November 2015 / User Group Meeting BGM 2015 Convergence of national and cross-border gate closure times Prices and volatility usually strongly increases towards gate closure of intraday markets; this is an indication of system balancing challenges. Graph: Price Formation Hourly Contracts Peak Summer 2014 11th November 2015 / User Group Meeting BGM 2015 Source: Own graph based on data from EPEX Spot Convergence of national and cross-border gate closure times Cross-border vs. country-internal nomination lead-times. 11th November 2015 / User Group Meeting BGM 2015 Source: EPEX SPOT and ECC successfully reduce lead time on all intraday markets, Press Release, Paris / Leipzig / Bern / Vienna, 16 July 2015 Convergence of national and cross-border gate closure times Implicit Schedule Nomination by ECC* XB Schedule Nomination by ECC ID Continuous EPEX XB Schedule Nomination by Market Parties Explicit, OTC Germany Current national and cross-border gate closure times Internal Schedule Nomination by Market Parties Implicit XB & internal ECC Schedule Nomination ID Continuous EPEX Internal Schedule Nomination by MP Explicit, OTC Switzerland ID Capacity Allocation by DBAG XB Schedule Nomination by MP ID Capacity Allocation by DBAG 75’ 60’ 45’ 30’ 15’ 0’ Delivery 11th November 2015 / User Group Meeting BGM 2015 Swiss market cannot participate in liquid phases of German market Trading volume for delivery hour 15 in Sept. 2015 [MW] 120000 DE intraday: D-1@15:00 to -30min CH intraday: D-1@15:00 to -60min 100000 Cross-Border Trade: D-1@18:00 to -60min 80000 60000 40000 20000 DE, Intraday (auction) 11th November 2015 / User Group Meeting BGM 2015 DE, Intraday (continous) CH, Intraday Day@23 Day@22 Day@21 Day@20 Day@19 Day@18 Day@17 Day@16 Day@15 Day@14 Day@13 Day@12 Day@11 Day@10 Day@09 Day@08 Day@07 Day@06 Day@05 Day@04 Day@03 Day@02 Day@01 Day@00 D-1@23 D-1@22 D-1@21 D-1@20 D-1@19 D-1@18 D-1@17 D-1@16 D-1@15 0 Trading with France limited to cross-border time-window and hourly contracts Trading volume for delivery hour 15 in Sept. 2015 [MW] 50000 FR intraday: D-1@15:00 to -30min 45000 CH intraday: D-1@15:00 to -60min 40000 Cross-Border: D-1@21:00 to -60min 35000 30000 25000 20000 15000 10000 5000 CH, Intraday 11th November 2015 / User Group Meeting BGM 2015 FR, Intraday Day@23 Day@22 Day@21 Day@20 Day@19 Day@18 Day@17 Day@16 Day@15 Day@14 Day@13 Day@12 Day@11 Day@10 Day@09 Day@08 Day@07 Day@06 Day@05 Day@04 Day@03 Day@02 Day@01 Day@00 D-1@23 D-1@22 D-1@21 D-1@20 D-1@19 D-1@18 D-1@17 D-1@16 D-1@15 0 Evaluation of a 15-Minute intraday call auction A 15-Minute Intraday Call Auction became introduced for the German market in December 2014; it provides a simultaneous auction for the 96 quarters of the following delivery day at 3pm of the present day. 4000000 450000 3500000 400000 350000 3000000 300000 2500000 250000 2000000 200000 1500000 150000 1000000 100000 500000 50000 0 0 Dec 14 Jan 15 Feb Mar 15 15 Intraday DE AT Total Apr May Jun Jul 15 Aug Sep 15 15 15 15 15 15-min. Call Auction DE Oct 15 Jun 15 Jul 15 Aug 15 Oct 15 15-min. Continuous Trading DE (MWh) 15-min. Call Auction DE (MWh) Intraday Trading Volumes of EPEX Spot Dec 14 – Oct 15; Data Source: EPEX Spot Monthly Newsletters 11th November 2015 / User Group Meeting BGM 2015 Sep 15 Evaluation of a 15-Minute intraday call auction » Due to the auction, the market benefits from a concentration of liquidity at the beginning of the intraday process and a transparent reference price for the 15-minute contracts of the continuous trading process could be given. » Due to the aforementioned advantages, Swissgrid evaluates whether the implementation of an Intraday call auction might also provide additional value for the Swiss market. 11th November 2015 / User Group Meeting BGM 2015 Introduction of intraday border auctions Intraday capacity is currently allocated on a «first come first served» basis » «First come first served» is an administrative capacity allocation method » Capacity rights are allocated free of charge according to the temporal order of capacity requests » There is an obligation to use the allocated capacity Source: Smith, William H. (2014): Black Sea 11th November 2015 / User Group Meeting BGM 2015 Regulatory Initiative: Cross-Border principles and guidelines, p. 17 Evaluation of intraday border auctions «First come first served» » Economic deficits » Technical deficits » Operational deficits 11th November 2015 / User Group Meeting BGM 2015 Evaluation of intraday border auctions Proposals • Implementation of an implicit intraday opening auction (in line with guideline on capacity allocation and congestion management), • Evaluation of the implementation of closing auctions, • Evaluation of further, border-specific adjustment and optimization of existing processes. 11th November 2015 / User Group Meeting BGM 2015 Next Steps: timeline flexibility market consultation November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 Announcement of the informal consultation Formal opening of the consultation process End of feedback period for stakeholders Feedback evaluated and documented by Swissgrid Optional stakeholder meeting Finalisation of the document Start of implementation measures 11th November 2015 / User Group Meeting BGM 2015 Improvement of Price Signals price signals Christian Kunze, Dr. Christian Kunze, Senior Specialist Market Design, Swissgrid Mövenpick AirportZurich Hotel Airport, Zurich, 11th November 2015 2015 Mövenpick-Hotel 11th November Current price signals are insufficient Current prices are: » Discontinuous: insufficient connection between day ahead and intraday markets » Intransparent: imbalance prices are published 2.5 months after delivery » Biased: imbalance prices do not reflect true cost/value of imbalances → As a result, there are insufficient/distorted investment incentives 11th November 2015 / User Group Meeting BGM 2015 Swissgrid proposes five measures to improve price signals 4 Reliability Options (national vs. x-border) Auction 1 Market Integration of RES Trading Forward Prices Day-Ahead Prices = new elements 11th November 2015 / User Group Meeting BGM 2015 New Balancing Energy prices 3 Integrated TSO Market 2 3 5 Trading Intraday Prices = discussed elsewhere Demand-side Response Real-time Prices t Delivery What are your views on these measures? • Do the stakeholder support the Swissgrid proposal to implement a (near) realtime imbalance price? • Do the stakeholders consider the proposed hedging products to be appropriate for the hedging of potentially volatile imbalance prices? Are there other proposals? • Do the stakeholders see a necessity to formally integrate the role of an independent aggregator that bundles and markets flexible resources into the market design? Do stakeholders expect that this new role would increase social welfare and support a beneficial demand-side response utilization in Switzerland? In general: Are these the right measures? What other measures would be needed? 11th November 2015 / User Group Meeting BGM 2015 The Responsibility of Balance Groups Responsibility of balance groups for security of supply For Security of Supply Arthur Janssen, Head of Market Development & Design Mövenpick AirportZurich Hotel Airport, Zurich, 11th November 2015 2015 Mövenpick-Hotel 11th November Approaches of European countries to security of supply are drifting apart Europe is currently characterized by a patchwork of national CRMs, Hedging responsibility is placed on different stakeholders. Source: IHS presentation at Dauphine 11th November 2015 / User Group Meeting BGM 2015 Strengthen role of market players in adequacy » In a liberalised market, market players have an implicit responsibility for their balance groups: They are «Balancing Responsible Parties» (BRPs). » In the Swiss balancing group contract, the BRPs are responsible for keeping their own position balanced at all times. Many other countries have alike solutions. » From our perspective, this balancing responsibility includes prognosis and, if needed, forward hedging of sufficient resources for their end-customer supply. We propose to further develop the market incentive in this respect − Strengthen the price signal, as seen before − Regional approach to security of supply − Participation of foreign providers in national capacity mechanisms 11th November 2015 / User Group Meeting BGM 2015 Regional approach to Security of Supply Swissgrid proposes main principles: » Adequacy should be tradeable across borders: ˗ participation of foreign providers in national CRMs ˗ increasing harmonization of CRM designs » Adequacy should be assessed regionally, or better, on European level 11th November 2015 / User Group Meeting BGM 2015 Unclear whether Swiss Investments to secure SoS will be remunerated in present market design » Will Swiss contribution to SoS in foreign countries be remunerated? » Are there sufficient incentives to investment in Switzerland when needed? 11th November 2015 / User Group Meeting BGM 2015 What are your views on these measures? » Do the stakeholders agree with the assumption that adequacy responsibility of balancing groups in combination with a strengthened price signal will increase market efficiency? » Do the stakeholders agree that balancing responsibility should include the prognosis and, if needed, forward hedging of sufficient resources for their endcustomer supply? 11th November 2015 / User Group Meeting BGM 2015 Improvement of Cross-border Trading cross-border trading Operations Urs Ziegler, Head of Market Services, Swissgrid th Mövenpick AirportZurich Hotel Airport, Zurich, 11th November 2015 2015 Mövenpick-Hotel 11 November Switzerland is technically ready to join market coupling Swissgrid is also participating in the XBID project, but unsure whether it will be allowed to join the go-live. 11th November 2015 / User Group Meeting BGM 2015 During some of the most liquid periods in the German market, there is currently no cross-border trading Trading volume for delivery hour 15 in Sept. 2015 [MW] 120000 DE intraday: D-1@15:00 to -30min CH intraday: D-1@15:00 to -60min 100000 Cross-Border Trade: D-1@18:00 to -60min 80000 60000 40000 20000 DE, Intraday (auction) 11th November 2015 / User Group Meeting BGM 2015 DE, Intraday (continous) CH, Intraday Day@23 Day@22 Day@21 Day@20 Day@19 Day@18 Day@17 Day@16 Day@15 Day@14 Day@13 Day@12 Day@11 Day@10 Day@09 Day@08 Day@07 Day@06 Day@05 Day@04 Day@03 Day@02 Day@01 Day@00 D-1@23 D-1@22 D-1@21 D-1@20 D-1@19 D-1@18 D-1@17 D-1@16 D-1@15 0 How can cross-border trading be improved apart from market coupling? » Market opening auction for transmission rights » Convergence of cross-border trading times with national gate closures » Evaluation of joint 15min auction with Germany → Do you agree with these proposals? → What other measures should be considered? 11th November 2015 / User Group Meeting BGM 2015 Nomination and Schedule Management Operations & Customer Satisfaction Urs Ziegler, Head of Market Services Benito Barberio, Nicolas Schledermann, Marc Rüede, Operators Capacity Allocation&Scheduling Zurich, 11th November Mövenpick-Hotel Zurich2015 Airport, 11th November 2015 Capacity Allocation & Scheduling – the Team Urs Ziegler Tobias Schwarz Jürgen Ganter Marc Hugelshofer Nicolas Schledermann Marc Rüede Thomas Eckert Urs Heller Christoph Rüfenacht Benito Barberio 11th November 2015 / User Group Meeting BGM 2015 Our Tasks (1/2) Preventive Congestion Management » Front Office: » Coordination of yearly-, monthly- and daily auctioned capacity direction CH-IT » Reduction of already allocated capacity in case of a NTC reduction direction CH-IT » Support of market participants » Coordination and determination of monthly capacity products on all Swiss borders 11th November 2015 / User Group Meeting BGM 2015 Our Tasks (2/2) Scheduling » Front Office: » Day-Ahead Scheduling for CH, neighbouring countries and the UCTE South » Day-After Scheduling for CH (PostScheduling Adjustments) » Counterscheduling of the LongTerm Contracts on the french Border » Operational execution of the Balance Group Management process » Periodic training of staff, also for Intraday Dispatcher » Master Data Management in our Scheduling System » Coordination of operational scheduling issues 11th November 2015 / User Group Meeting BGM 2015 Contact address & office hours Auction Office Day-Ahead / Post –Scheduling IntraDay-Scheduling Phone +41 58 580 27 70 Fax +41 58 580 27 27 [email protected] Phone +41 58 580 27 01 Fax +41 58 580 27 27 [email protected] Phone +41 58 580 29 11 Fax +41 58 580 29 10 Fax +41 58 580 29 20 [email protected] Monday to Friday 8 - 12 a.m., 1.30 - 5 p.m. CET Monday to Friday 8 - 12 a.m., 1.30 - 5 p.m. CET Monday to Sunday, 24 hours a day (365 days a year) Saturday and Sunday 8 - 12 a.m., 1.30 - 4.30 p.m. CET Saturday and Sunday 8 - 12 a.m., 1.30 - 4.30 p.m. CET 11th November 2015 / User Group Meeting BGM 2015 Known issues regarding the new scheduling system (1/2) » Message subjects and address: The subject of messages distributed by email was changed. This created problems for some market participants. For ACKs → PSMS: *Message ID* For CNFs/ANOs → PSMS: YYYYMMDD_BGXY_S_CNF For ANOs → PSMS: YYYYMMDD_BGXY_S_ANO The address is displayed differently. e.g.: PSMS [[email protected]] » Technical BG provisions are applied more strictly: The new system applies the technical market rules more strictly, i.e. after 14:30 once coordinated schedule time series can no longer be changed in the dayahead process. Business Type A03 for CH-IT time series, along with Capacity Contract Type (i.e. A05) and Capacity Agreement Identification 11th November 2015 / User Group Meeting BGM 2015 Known issues regarding the new scheduling system (2/2) » Communication We encountered some problems in the communication channels (i.e. erroneous email addresses, FTP problems). » Quantity format of system replies (CNF, ANO) has changed – always with decimal point Old format: <Qty v="105.394"/> or <Qty v=“90"/> New format: <Qty v="105.394"/> or <Qty v=“90.000"/> » At the moment replies are sent to only one email address We are working on a way to implement two email addresses. We will inform you when it is possible. » The chosen migration date was not optimal for all the market participants 11th November 2015 / User Group Meeting BGM 2015 Survey: Customer Satisfaction 11th November 2015 / User Group Meeting BGM 2015 Questions » How satisfied are you with our availability by phone? » How do you experience our response time to e-mail requests? » How do you rate our expertise when answering to your phone or e-mail requests? » Do you think that our nomination system on the CH-IT border (SNS) is userfriendly? » Is there enough information for scheduling and congestion management available on our website? 11th November 2015 / User Group Meeting BGM 2015