Ancillary Services Requirements in Poland

POLISH POWER GRID COMPANY S.A.

TRANSMISSION SYSTEM OPERATOR

INSTRUCTION OF TRANSMISSION SYSTEM OPERATION

AND MAINTENANCE (unofficial translation)

DETAILED PART No. 2: RULES OF ANCILLARY SERVICES

DISCLAIMER OF LIMITATION OF LIABILITIES. THIS DOCUMENT WAS PREPARED BY POLSKIE SIECI ELEKTROENERGETYCZNE SA (PSE SA) FOR INFORMATION PURPOSES ONLY. THE VALID DOCUMENT RELATING TO TRADE ACTIVITIES IS POLISH VERSION OF INSTRUCTION OF TRANSMISSION SYSTEM OPERATION AND MAINTENANCE. PSE SA DOES NOT ASSUME RESPONSIBILITY FOR ANY DAMAGES OR OTHER LIABILITY WHATSOEVER RESULTING FROM YOUR USE OF THIS DOCUMENT OR ANY INFORMATION DISCLOSED IN THIS DOCUMENT.

PSE S.A. – TRANSMISSION SYSTEM OPERATOR

IRiESP – Detailed Part: Rules of ancillary control services

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Table of contents:

1. INTRODUCTION .......................................................................................................................................... 3 1.1. Legal grounds of the Rules of ancillary control services ........................................................................ 3 1.2. Scope of the Rules of ancillary control services ..................................................................................... 3 1.3. Catalogue of the ancillary control services ............................................................................................. 3

2. CHARACTERIZATION OF THE ANCILLARY SERVICES...................................................................... 3 2.1. Power reserves at the thermal power plants ............................................................................................ 3

2.1.1. Second reserve (Rs) for the primary control .................................................................................... 3 2.1.2. Minute reserve (Rm) for the secondary control................................................................................ 3 2.1.3. Hourly Reserve (RG) within the Spinning Reserve (RW)................................................................. 3 2.1.4. Restoration reserve (RO).................................................................................................................. 3 2.1.5. Long -lasting reserve (RT) ............................................................................................................... 3

2.2. Power reserves of the hydro power stations ............................................................................................ 3 2.3. Operation of the thermal condensing power plant in underload / overload............................................. 3 2.4. Condensing operation of the combined heat and power plant................................................................. 3 2.5. Reactive power flow and voltage control services at generation nodes .................................................. 3 2.6. Readiness for restoration of the PPS power supply................................................................................. 3

3. ............TECHNICAL SPECIFICATIONS APPLICABLE TO THE ANCILLARY CONTROL SERVICES SYSTEMS....................................................................................................................................................... 3

3.1. Specifications of the primary control systems......................................................................................... 3 3.2. Technical requirements of the secondary control systems ...................................................................... 3 3.3. Technical requirements for the control system based on the Y0(i) signal................................................. 3 3.4. Technical requirements of generating unit control systems with the SOWE-EL system taken into

consideration .......................................................................................................................................... 3 3.5. Technical requirements concerning automatic voltage control systems in generating nodes (ARNE)... 3 3.6. Technical requirements for generating units taking part in reconstruction of the Polish power system . 3

4. . RULES GOVERNING CONDUCTING OF THE ACCEPTANCE TESTS AND THOSE THAT VERIFY OPERATION OF THE ANCILLARY SERVICES SYSTEMS..................................................................... 3

4.1. Acceptance tests and those that verify operation of the primary and secondary control systems, and the automatic voltage control systems that control voltages in generation nodes ......................................... 3

4.2. Acceptance tests and those that verify ability of the generating units to restore the PPS power supply. 3 5. SCHEDULING AND DISPATCHING OF THE ANCILLARY CONTROL SERVICES BY THE TSO .... 3 6. CONTRACTING OF THE ANCILLARY SERVICES BY THE TRANSMISSION SYSTEM OPERATOR................................................................................................................................... 3

6.1. Contracting procedure applicable to individual ancillary services.......................................................... 3 6.2. Ancillary services contracting schedule .................................................................................................. 3 6.3. Charges for rendering of ancillary services............................................................................................. 3 6.4. Bids evaluation rules ............................................................................................................................... 3

7. PENALTIES ................................................................................................................................................... 3 8. SETTLEMENT OF THE ANCILLARY SERVICES .................................................................................... 3

8.1. Rules of the payment for energy generated in rendering of the ancillary services.................................. 3 8.2. Rules of payment for rendering of the ancillary services........................................................................ 3 8.3. Value-based settlement of the ancillary services rendering .................................................................... 3

8.3.1. Settlement of the second reserves offered by the thermal power plants.......................................... 3 8.3.2. Settlement of the minute reserves offered by the thermal power plants.......................................... 3 8.3.3. Settlements concerning hourly reserves of the thermal power plants – spinning reserve ............... 3 8.3.4. Settlements concerning restoration reserves of the thermal power plants....................................... 3 8.3.5. Settlements concerning the long-lasting reserves of the thermal power stations ............................ 3 8.3.6. Settlements concerning minute reserves offered by the hydro power stations................................ 3 8.3.7. Settlements concerning hourly reserves offered by the hydro power stations................................. 3 8.3.8. Settlements concerning overloaded operation of the particular generating unit of the condensing

thermal power plant......................................................................................................................... 3 8.3.9. Settlements concerning underloaded operation of particular generating unit of the condensing

thermal power plant......................................................................................................................... 3 8.3.10. Settlements concerning condensing operation of the particular generating unit of the combined

heat and power plant ....................................................................................................................... 3



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8.3.11. Settlements concerning automatic voltage control (ARNE) ........................................................... 3 8.3.12. Settlements concerning compensatory operation of hydro-units..................................................... 3 8.3.13. Settlements concerning self-startup ability of the power plant ....................................................... 3 8.3.14. Settlements concerning isolated operation ability of the generating unit ........................................ 3

8.4. Invoicing and financial flows concerning rendering of the ancillary services ........................................ 3 9. ... DEFINITIONS, DESIGNATIONS AND ABBREVIATIONS USED IN THE RULES OF ANCILLARY

SERVICES...................................................................................................................................................... 3 9.1. Definitions............................................................................................................................................... 3 9.2. List of abbreviations and designations .................................................................................................... 3

Appendix No. 1 – RUS application form of a thermal power plant Appendix No. 1 – RUS application form of a hydro power station



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1. INTRODUCTION

1.1. Legal grounds of the Rules of ancillary control services

1.1.1. The principles that are to govern purchase of the ancillary control services by the TSO are defined by these Rules of Ancillary Services, called hereinafter the Rules.

1.1.2. The principles that are to govern purchase of the ancillary control services by the TSO, as presented in these Rules, are in effect in the transitory period: from July 2001 till the end of June 2002, when implementation of the hourly technical market is to take place.

1.1.3. These Rules were elaborated based on the stipulations found under Art. 29 of the Ordinance by the Minister of Economy on conditions of connection of the entities to the power networks, rendering of transmission service, network traffic, maintenance of the networks and qualitative standards applicable to the customer service, and the detailed part of Instruction of Transmission System Operation and Maintenance that is mentioned under said article.

1.1.4. The legal grounds of the Rules of ancillary control services (RRUS) are as follows:

(1) The Energy Law of April 10, 1997, hereinafter called also the Act, complete with its executive acts, including:

(1.1.) Ordinance by Minister of Economy on the detailed rules to govern shaping and calculation of tariffs and rules of settlement in trading of energy hereinafter also called the Tariff Ordinance.

(1.2.) Ordinance by Minister of Economy on detailed terms and conditions of connection to the power systems, trading of energy, rendering of ancillary services, grid operation and maintenance, and qualitative standards of the customer service, hereinafter called also the Connection Ordinance.

(1.3.) Ordinance by the Minister of Economy on obligatory purchase of energy from non-conventional sources and renewables, and co-generated with heat, on obligatory purchase of heat from non-conventional sources and renewables, and on the scope of the obligation..

(2) The license issued to the PSE SA for transmission and distribution of energy. 1.1.5 These Rules come in compliance with the general part of the Instruction of

Transmission System Operation and Maintenance, and its remaining detailed parts::

(1) Rules of Electricity Balancing Market in Poland. (2) Rules of Must-Run Generation.

1.1.6. These Rules define principles concerning purchase of ancillary control services by the Transmission System Operator (TSO) in its control and maintenance of reliability of the Polish Power system (PPS).

1.1.7. The Rules of the ancillary control services do not identify the rules that are to govern the purchase of the ancillary control services by the Distribution System Operators in their control of the distribution networks.



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1.1.8. The ancillary control services market functions according to the ancillary control services agreements executed by and between the PSE S.A. in capacity of the Transmission System Operator and the remaining energy market participants.

1.1.9. The ancillary control services agreement identifies among others the obligation of the parties to the agreement to comply fully with the stipulations of the IRiESP and thus these Rules as its component part.

1.1.10. The cost of purchase of the ancillary control services are the component item of the costs of maintenance of the system quality and reliability standards of the power supply – as construed by § 20 of the Tariff Ordinance – allocated to the PSE SA tariff as the qualitative component item of the system charge rate.

1.2. Scope of the Rules of ancillary control services

1.2.1. These Rules are an integral part of the IRiESP. The guidelines presented in these Rules are more detailed form of the stipulations found in the IRiESP and, according to the proper scopes, those found in the other Rules that constitute the component parts of the IRiESP.

1.2.2. These Rules identify the main conditions, guidelines and procedures applicable to the purchase and settlements of the ancillary control services by the TSO, and in particular:

(1) Legal conditions that govern purchase of the AS. (2) Catalogue and characterization of the ancillary control services. (3) Specifications of the systems that render the ancillary control services. (4) Rules of the acceptance tests and those that verify operation of the ancillary

control service systems. (5) Rules of purchase of the ancillary control services by the TSO. (6) Rules of scheduling and dispatch of the ancillary control services by the TSO. (7) Rules of settlements, invoicing and cash flows related to rendering of the

ancillary control services. 1.2.3. Updating of these Rules is carried out by the Transmission System Operator

according to the guidelines stipulated by the IRiESP.

1.3. Catalogue of the ancillary control services

1.3.1. The System Operator purchases, according to the guidelines stipulated by these Rules, the following ancillary control services:

(1) Power reserves of the thermal power plants: (1.1.) Second reserve (RS), within framework of the primary control. (1.2.) Minute reserve (RM), within framework of the secondary control. (1.3.) Hourly reserve (RG) only within framework of the spinning reserve (RG) (1.4.) Restoration reserve (RO).

(2) The remaining power reserves of the thermal power plants: (2.1.) Long-lasting reserve (RT)

(3) Power reserve of hydro power stations: (3.1.) Minute reserve EW (RmEW), within framework of the secondary control. (3.2.) Hourly reserve EW (RgEW), (access time < 15 min.)



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(4) Operation of the condensing thermal power plants (EK) in underload or overload.

(5) Condensing operation of the Combined Heat and Power Station. (6) Control of reactive power and voltage flows (in generation nodes):

(6.1.) Automatic voltage control system (ARNE). (6.2.) Compensatory operation of hydro-units.

(7) Services consisting in offering readiness to participate in restoration of the power supply in the PPS:

(7.1.) Self-startup ability. (7.2.) Isolated operation ability.

1.3.2. The Transmission System Operator buys the operating power reserves identified under para. 1.3.1, sub-para. (1), broken down into the readiness and actual utilization of the given service, and the long-lasting reserve.

1.3.3. The purchase concerning the required level of the operating power reserves, fixed by the TSO according to the requirements and understandings reached with the UCTE, and according to the system analyses, covers:

(1) The second reserve – range ± 200 ÷ 300 MW during each hour of a day. (2) The minute reserve – range ± 700 ÷ 1000 MW during each hour of a day. (3) The hourly reserve – bought within framework of the spinning reserve, fixed by

the TSO at some 4% of the demand in the Polish Power System, calculated as a mean value for a settlement day.

(4) The restoration reserve – as a supplement needed to reach the required level of the Polish Power System operating reserves fixed by the TSO at some 15% of the demand in the PPS.

1.3.4. The detailed ranges of the required power reserves in the Polish Power System and the technical standards applicable to the generating units that render the ancillary services are stipulated by the IRiESP (General Part).



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2. CHARACTERIZATION OF THE ANCILLARY SERVICES

2.1. Power reserves at the thermal power plants

2.1.1. Second reserve (Rs) for the primary control

2.1.1.1. The second reserve is activated at the generating units within framework of the primary control.

2.1.1.2. The level of the second reserve available at the individual generating units is determined by the positive range of the primary control off the operating range of the LFC.

2.1.1.3. The second reserve is started by the object automatic control (turbine control) in response to the frequency deviation within the control range scale, depending on set points of the control (insensitivity, droop). The result of the operation of the primary control is the restoration of the balance between generation and consumption of energy in the PPS, including other power systems – through affecting the turbine speed controllers and load frequency control systems.

2.1.1.4. An ability to render the second reserve service (RSG) means maintaining of the efficient control systems according to the standards stipulated by the IRiESP. It is obligatory for all Centrally Dispatched Generating Units and remains free of charge, with reservations found under para. 8.2.9 of these Rules taken into account.

2.1.1.5. The TSO will buy: (1) The readiness to render the second reserve service (RSG) within framework of

the primary control, understood as a physical ability to render this service, confirmed by the valid control systems technical acceptance protocol along with a declaration by the generator, found in the balancing bid trade part that provides for assignment of the proper free band for use in the primary control according to the data delivered by the TSO in the WPKD process.

(2) The utilization of the second reserve (RS) takes place according to an order by the TSO, concerning the primary control switching on/off – in the PKD and BPKD processes – using the SOWE system. The second reserve access time is specified in the control systems technical acceptance protocols.

2.1.1.6. The contracting of the readiness will cover about 70% of the second reserve of all the thermal Centrally Dispatched Generating Units.

2.1.2. Minute reserve (Rm) for the secondary control

2.1.2.1. The minute reserve is activated at the generating units by signal Y1, within framework of the secondary control.

2.1.2.2. The volume of the minute reserve available at the individual generating units is



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determined by the positive range of the secondary control. 2.1.2.3. The secondary control brings the frequency and the power of the intersystem

power exchange taking place between the PPS and its neighboring systems back to the set point level of before disturbance of the balance between generation and consumption of energy that took place in the PPS area, combined with simultaneous restoration of the second reserve (after its earlier utilization).

2.1.2.4. The operation of the secondary control should start after the primary control is activated, at or before time t = 30 seconds after appearance of the disturbance, and fully deployed up to 15 minutes, when the frequency and power of the power exchange is brought back to the former set point level. Thus the secondary control activates the minute reserve.

2.1.2.5. An ability to render the minute reserve service (RSG) means maintenance of the efficient control systems operated by Y1 and Y0 signals for their possible use according to the standards stipulated by the IRiESP. It is obligatory for all thermal Centrally Dispatched Generating Units and is free of charge, with reservation of found under para. 8.2.9 of these Rules taken into account.

2.1.2.6. The TSO will buy: (1) The readiness to render the minute reserve service (RSG) within framework of

the secondary control operated by Y1 signal, understood as a physical ability to render this service, confirmed by the valid control systems technical acceptance protocol, complete with a declaration by the generator that provides for assignment of the proper free spinning reserve band according to the data delivered by the TSO in the WPKD process.

(2) Utilization of minute reserve (RM) takes place at the generating units to the TSO order concerning switching on/off of the secondary control – in the PKD and BPKD processes – within framework of secondary control activated by the Y1 signal, according to the trade balancing bid presented on the next day. The access time of the minute reserve is specified in the control systems technical acceptance protocols.

2.1.2.7. The contracting of the readiness will cover about 80% of power range, accessible through the Y1 signal, of all the thermal Centrally Dispatched Generating Units. The requirements concerning maintenance of the appropriate volume of the minute reserve (energized secondary control by the Y1 signal) are specified for every power system. In case of the Polish Power System the range is ± 700 ÷ 1000 MW.

2.1.2.8. The minute reserve volume fixed for a given day or hour within framework of the WPKD and PKD will constitute the basis for the on-going contracting of the service in terms of its utilization.

2.1.3. Hourly Reserve (RG) within the Spinning Reserve (RW) 2.1.3.1. The hourly reserve is maintained to facilitate meeting of the varying demand for

energy with the changing conditions of the PPS operation, and to secure frequency control and power exchange balance in the intersystem power exchange taking place with the neighboring systems (through restoration of the required reserve



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levels: the second reserve within framework of the primary control and the minute reserve within framework of the secondary control).

2.1.3.2. It is required that the access time of the hourly reserve is not longer than 15 minutes. Of this reason the hourly reserve of the generating units operated at the thermal power plants is available only within the spinning reserve (RW).

2.1.3.3. The TSO fixes the total volume of the spinning reserve in the WPKD process. 2.1.3.4. The TSO uses the PKD process to specify the volume of the spinning reserve

required for the individual generating units. 2.1.3.5. The utilization of the spinning reserve takes place within the Current Daily Co-

ordination Schedule (BPKD) process. Said utilization concerns the spinning reserve specified in the PKD for the individual generating units and comes to an order of the TSO, in compliance with requirements that provide for covering of the variable demand for energy and securing of the required reliability and safety of the Polish Power System as well as in compliance with the rules found in Instruction.

2.1.3.6. An ability to render the spinning reserve service (RWZ) is understood as the power range declared in the bid, not covered by Electricity Sale Contract, remaining at disposal of the TSO, according to the standards stipulated by the IRiESP. Each individual generator connected to the transmission grid should remain able to render the spinning reserve service. To be able to render this service the generator should have the WIRE and SOWE information exchange systems. The ability is offered free of charge, with reservation stipulated under para. 8.2.9 of these Rules taken into account.

2.1.3.7. The TSO will buy: (1) The readiness to render the spinning reserve service (RWG) confirmed by the

balancing bids and by defining of the substitute bid. (2) The spinning reserve (RW) is understood as maintenance of the spinning reserve in

the bands fixed in the PKD → BPKD → BPKD-BPPZ processes, complete with the full readiness to start generation with the agreed ramping rate.

2.1.3.8. The balancing bids from generating units covered by the Ancillary Services Agreement concerning the spinning reserve should additionally meet the following requirements:

(1) Gross power offered in each band should not be lower than 5 MW. (2) The ramping rate should not be lower than 2 MW/min. within the control range of

the unit operation. 2.1.3.9. The contracting concerning readiness will cover about 60% of the thermal ability of

the Centrally Dispatched Generating Units to render the spinning reserve service. 2.1.3.10. The contracting concerning utilization will cover power resulting from the volumes

fixed in WPKD/PKD, i.e. about 4% of demand.

2.1.4. Restoration reserve (RO)

2.1.4.1. The restoration reserve is the power reserve scheduled in the WPKD → PKD → BPKD → BPKD-BPPZ co-ordination scheduling process for its possible utilization when it becomes necessary to restore or increase the required hourly reserve resources.

2.1.4.2. The TSO fixes the total volume of the restoration reserve in the WPKD process.



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2.1.4.3. The TSO uses the PKD process to specify the volume of the restoration reserve required of the individual generating units.

2.1.4.4. The utilization of the restoration reserve takes place within the Current Daily Co-ordination Schedule (BPKD) process. Said utilization concerns the restoration reserve specified in the PKD for the individual generating units and comes to an order of the TSO, in compliance with requirements that provide for covering of the variable demand for energy and securing of the required reliability and safety of the Polish Power System as well as in compliance with the rules found in Instruction.

2.1.4.5. The generating units that are scheduled for rendering of the restoration reserve service are chosen by the TSO on the basis of their operating and startup characteristics.

2.1.4.6. The service concerns the generating units that are not in operation but are kept for the starting of the startup process in 15 minutes after the TSO order, to become operating (arrival at the technical minimum (Pmin,t)) in up to 8 hours.

2.1.4.7. An ability to render the restoration reserve service (ROZ) is understood as the power range declared in the bid, not covered by Electricity Sale Contract, remaining at disposal of the TSO, according to standards stipulated by the IRiESP. Each individual generator connected to the transmission grid should remain able to render the restoration reserve service. To be able to render this service the generator should have the WIRE and SOWE information exchange systems. The ability is free of charge, with reservation stipulated under para. 8.2.9 of these Rules taken into account.

2.1.4.8. The TSO will buy: (1) The readiness to render the restoration reserve service (ROG) confirmed by the

balancing bids and by defining of the substitute bid. (2) The restoration reserve (RO) is understood as maintenance of the spinning reserve

in the bands fixed in the PKD → BPKD → BPKD-BPPZ processes, complete with the full readiness to start generation with the agreed ramping rate.

2.1.4.9. The gross power offered in each individual band of the balancing bid presented by the generating units covered by the ancillary services agreement concerning the restoration reserve should not be lower than 5 MW.

2.1.4.10. The contracting concerning readiness to utilize will cover power resulting from complementing the power level up to the one of PPS operating power reserves – amounting to about 15% of the demand for power in the PPS in the individual hours of its operation.

2.1.4.11. Figure 2.1. presents classification of the second, minute and hourly reserves of the condensing power plants according to the time of access to the reserve capacities.

2.1.4.12. Figure 2.2. presents illustration of the control ranges of the active power of the generating units.



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24 h 8 h 1 h15 min 4 h30 s 15 s

second reserve

minute reserve

hourly reserve

restor. reserve

Fig. 2.1. Classification of second, minute and hourly reserves of the condensing power plants according to the time of access to reserve capacities

Fig. 2.2. Illustration of the physical ranges of power control at the generating units

found in the thermal power plants a) for generating unit in operation (with reservation of para 3.4.3.(6) taken into account) b) for generating unit in outage

Overloads

Second reserve (primarycontrol range off the

ARCM operating band)

Minute reserve (positiverange of the Y1 signal

control)Declared

contract position

Minute reserve (positiverange of the Y1 signal

control)Second reserve (primary

control range off theARCM operating band)

Underloads

RS

RM

RS

RM Non-contractedspinning reserve

Contractedspinning reserve(bought as Rw

or Ro)

Pos - Installed capacityPmin tech - Minimum technical capacityPz - Underload capacityPP - Oveload capacity

Power bands contracted by the TSO:- in the WPKD and PKD in context ofthe RS and RM fixed- in the BPKD in context of theoverloads and underloads

The range the declared contractpositions must remain within

Power bands contracted by the TSO:- in the WPKD and PKD in context ofthe RS and RM fixed- in the BPKD in context of theoverloads and underloads P min tech

Pz Pz

Pos

Pp

Pos

Pp

PP

Res

tora

tion

rese

rve

P min tech



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2.1.5. Long -lasting reserve (RT)

2.1.5.1. The long-lasting reserve (RT) is understood as the reserve resulting from the long-lasting unit outage and its preservation for the period of time that was declared in the bid, combined with availability of said reserve to order by the TSO within the time period declared in the bid. The volume of the offered long-long-lasting may not be higher than the total installed capacities of the generating units reported for this particular reserve.

2.1.5.2. The generating unit in the long-lasting reserve should be able to start generation within the period of time that was defined in the ancillary services agreement. The period may not exceed 21 days from the moment when the decision on the generation starting is passed by the TSO to the power plants.

2.1.5.3. The long-lasting must cover the whole generating unit. It should be the unit with the worst technical-economic parameters (availability, efficiency, emission of pollutants, etc.)

2.1.5.4. The outage period of such the unit offered at in excess of one 1 year will be appraised higher in the process of the ancillary services contracting.

2.2. Power reserves of the hydro power stations

2.2.1. The power reserves of the hydro power stations, as bought by the TSO, come from the generating units installed at the pumped-storage stations and the river hydro power stations fitted with the pumping section.

2.2.2. The minute reserve of the hydro power stations is offered within framework of the load frequency control (LFC) at the level corresponding to the control power of the hydro-unit or power station; it is made available within framework of the secondary control by the Y1s signal.

2.2.3. The hourly reserve of the hydro power stations, with access time no longer than 15 min., is the available capacity of the hydro-unit in the generation mode of operation or in dispatched standstill

2.2.4. The reserve capacities of the hydro power stations are used by the TSO to control the daily variation of the load and to compensate the sudden power unbalances in the PPS.

2.3. Operation of the thermal condensing power plant in underload / overload

2.3.1. The ancillary service called underloading consists in operation of a generating unit of the thermal condensing power plant with a load at below its technical minimum or – for the specific generating units – at below their operating minimum.

2.3.2. The ancillary service called overloading consists in operation of the generating unit of the thermal condensing power plant with a load at above its installed capacity.

2.3.3. The bands of the power available at below the minimum technical capacity or at



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above the installed capacity should not be lower than 5 MW. 2.3.4. The contracting will include the bands of a competitive price. 2.3.5. The ancillary service of underload or overload operation is rendered only to the

TSO order issued via the SOWE system. 2.3.6. The remuneration for the underload and overload operation is paid when the

service is actually utilized according to the TSO order.

2.4. Condensing operation of the combined heat and power plant

2.4.1. The condensing operation of the combined heat and power plant is a form of the ancillary service that consists in condensing operation of the generating unit of the combined heat and power plant started to a dispatch order of the Transmission System Operator, resulting in an increase of the electric power generated by the particular unit (to the cost of the heat collected from said unit).

2.4.2. The contracting will cover the combined heat and power plants, chosen by the TSO, whose operation in condensing is required because of the network reasons.

2.5. Reactive power flow and voltage control services in generation nodes

2.5.1. The Transmission System Operator proceeds with voltage and reactive power control to secure at all the Grid Take-off Points (PWS) a reliable power supply of the proper qualitative specifications, and to secure at the nodes other than the PWS such the operating conditions which result from the specifications of the equipment installed there and from the power flows.

2.5.2. To facilitate the voltage and reactive power control at the generation nodes by the TSO the latter purchases the following ancillary control services:

(1) Voltage and reactive power control by groups of the automatic voltage control systems of the generating units.

(2) Compensatory operation of hydro-units. 2.5.3. The automatic voltage control system maintains the set point voltage at the

individual HV bus-bar systems of the power plant through control, in the first place, of the reactive load at all the generating units connected to said systems through the unit transformers while when this control avenue is exhausted – through the change of the transformer ratio of the coupling transformers found between the relevant bus-bar systems.

2.5.4. At the pumped-storage power plants the automatic voltage control system maintains the required voltage in the HV bus bars of the power plant through control of the reactive power of the hydro-units in all the modes of operation, i.e., turbine, pumping and compensatory ones.

2.5.5. The range of control of the reactive power is defined for each individual generating unit by the generator, acting to that end in agreement with the TSO and complying with the rules stipulated by the IRiESP.

2.5.6. The compensatory operation of the hydro-unit consists (depending on the voltage conditions found in the PPS) in generation or consumption of reactive energy by the hydro-unit synchronous generator that operates as a motor



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(spinning in the generator or motor direction together with the turbine runner in the chamber emptied from water), consuming active energy from the grid to cover the mechanical losses of the hydro-unit and the electrical ones of the generator.

2.5.7. The hydro-units are dispatched for the compensator operation depending on the grid voltage level, according to the signals developed by the automatic voltage control that inform about possible advisability of having the hydro-unit started.

2.6. Readiness for restoration of the PPS power supply

2.6.1. The sources of the PPS power supply restoration are as follows: (1) Power stations adapted to self-startup – hydro and thermal peaking-gas ones in

the first place. (2) Thermal power plants of the supported startup, first of all with the self-startup

gas turbine used among others for starting of the high-capacity generating units with steam turbines.

(3) Generating units of the power plant, able to proceed, after successful load shedding, with an isolated operation without connection to the main grid of the PPS, offering in such circumstances an efficient power supply required by the customers.

(4) Generating units of the power plant, able to proceed, after successful load shedding, with the supply of their auxiliaries without connection to main grid of the PPS, offering in such circumstances an efficient power supply required by their own and common power plant auxiliaries while being able at the same time to operate in an isolated system with the connected loads.

2.6.2. There are the following forms of the ancillary services concerning readiness to participation in defense and restoration of the PPS power supply, rendered by the generators:

(1) Self-startup ability of the generating unit – covers items Nos. (1) and (2) of para. 2.61.

(2) Ability of isolated operation of the generating unit – covers item Nos. (3) and (4) of para. 2.6.1.



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3. TECHNICAL SPECIFICATIONS APPLICABLE TO THE ANCILLARY CONTROL SERVICES SYSTEMS

3.1. Specifications of the primary control systems

3.1.1. Primary control automatically responds to the frequency change in the power system by providing (in under 30 seconds) the power obtained from every generating unit that is taking part in the said process. Thus the primary control automatically activates the second reserve.

3.1.2. All the generating units that are connected to the transmission grid or to the distribution network, featuring installed capacities of at least 100 MW, must be fitted with the primary control equipment.

3.1.3. It is required that primary control equipment installed in generating units of thermal power plants taking part in the primary control meets the following requirements:

(1) It must be able to trip a very quick change of primary power control ∆P(∆f) = 0 … ± 5% Pn available in the whole control power band of the generating unit PR (PRm … PRM), with the full response to the preset power step change ∆Pz(∆f) = 0 +5% Pn coming in 30 seconds i.e. ∆P(t<30 s) = ±5 % Pn, with the accuracy δp ≤ ±1% Pn attained in conditions that are brought about in 30 seconds.

(2) Insensibility of the frequency control systems must not be higher than ∆fi = ± 10 mHz.

(3) Frequency correction of the power control system can be adjusted in the range of at least ∆P(∆f) = 0 … ± 5% Pn, with the droop changes of s = 2…8% and the frequency dead band of ∆f0 = 0, ±10, ±20, ±50, ±100, ±200 and ±500 mHz.

(4) The structure of the rotational speed and power control systems with the frequency correction system facilitates a stable operation of the PPS in disturbed operating conditions by a proper joint operation of the quick-response turbine speed governor and the slow-response power regulator, with optimization of the fixed settings of amplification, differentiation and integration take into account.

3.2. Technical requirements of the secondary control systems

3.2.1. The secondary control is implemented by selected generating units of thermal power plants responding to the Y1 signal change, and by selected generating units of hydro power stations responding to the Y1s, signal change introduced by they the central LFC regulator.

3.2.2. Features of the control signals: (1) The Y1 signal is a quick-changing digital signal of the change range (–

31...0...+31). The Y1 signal change rate depends on the calculated system control error and on the Y1s. The highest change rate of this signal is limited to 1 degree per 10 seconds.



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(2) The Y1s signal is a quick-changing, digital signal with the change range of (–31...0...+31). The rate and scale of changes of this depends on the rate and scale of changes of the calculated system control error. The highest change rate of this signal is limited to 1 degree per 7 seconds.

(3) An intervention change of the Y1 signal by the dispatcher of the SP-KDM (Y1i signal) is also possible. It takes a form of the signal step change by a value that is preset by the dispatcher (range of 2 to 40 degrees), introduced when the total power generated in the PPS needs to be changed immediately in less than 1 minute.

3.2.3. It is required that secondary control equipment used in generating units of thermal power plants taking part in secondary control meets the following requirements:

(1) Ability to trip a quick change of the secondary control power ∆P(t) that follows uniformly the changes of the preset power ∆PY1(-31...0...+31) =(-5%...0… +5 % ) Pn.

(2) After an intervention step change (Y1i) of the signal ∆PY1 (0 +31 or 0 -31) a full response is required in time t < 30 seconds, i.e. ∆P (t < 30 s) = ± 5 % Pn, with the power control accuracy δp ≤ ±1% Pn attained in conditions that are brought about in 30 seconds.

(3) Availability to change the intervention signal Y1i in the whole control power band of a generating unit PR (PRm … PRM).

(4) With joint operation of the secondary and primary control systems the requirements fixed for the primary control must be met in context of the changes of power P(t) that follow the changes if the ∆PY1 signal (-31...0...+31).

3.2.4. It is required that secondary control equipment used in generating units of the hydro power stations taking part in secondary control meets the following requirements:

(1) Ability to trip a quick change of the secondary control power ∆P(t) that follows uniformly the changes of the preset power ∆PY1S = 0…> ± 5 % Pn with the power control accuracy δp < ± 1% Pn (t > 30 s) available in the whole control power band of the hydro-unit PR (PRm … PRM).

3.3. Technical requirements for the control system based on the Y0(i) signal

3.3.1. The control through the Y0(i) signal is performed by the selected generating units of thermal power plants that respond to the Y0(i) signal change preset by the central LFC regulator.

3.3.2. Features of the control signals: (1) The Y1 signal is a quick-changing, digital signal with the change range of

(0...+31). The rate of changes of this signal depends on the calculated system control error and on the Y0 signal value.

3.3.3. It is required that the control equipment which is controlled by the Y0(i) signal, as used in generating units of the thermal power plants taking part the in control through the Y0(i) signal, meets the following requirements:

(1) Generating units of the thermal power plants are adapted to remote control by



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the Y0(i) signal and local control by the TPC/RRC stages, with control power P(t) following the preset power changes ∆PY0(i) with the automatic control (remotely controlled from the central control regulator), or PZ with manual control, and changing at a mean rate of 2% PRM/min, with power control accuracy of δp < ± 1% PRM (t > 5 min) throughout the whole available unit control power band PR (PRm …PRM) = (40) 60 ÷ 100 % PRM.

3.3.4. The Y0(i) signal can be used when the power system security is threatened. 3.3.5. The generators must be able to switch ON and OFF the control system based on

the Y0(i) signal to an order of the TSO delivered through the SOWE system.

3.4. Technical requirements of generating unit control systems with the SOWE-EL system taken into consideration

3.4.1. The assumptions of the technical design that concerns utilization of the SOWE-EL system to control the unit automatics must be agreed with the TSO.

3.4.2. The implementation version (agreed with the contractor) of the design that concerns utilization of the SOWE-EL system in control of the unit automatics should be accepted by the TSO.

3.4.3. The following criteria must be met irrespective of the scope and method of use of the SOWE-EL system to control of the unit automatics:

(1) The use of the unit load set-point to automatically preset the unit base power must not preclude the presetting of the same using the automatic Y0(i) signal and/or RRC/TPC signal.

(2) The possibility of separate operation of the secondary and primary control using the Y1(i) signal and the control that uses the Y0(i) signal.

(3) The joint operation of the systems of primary control, secondary control using Y1(i) signal and control using Y0(i) signal must meet the current criteria.

(4) The assumed maximum gradient of power changes within the range of the base power changes controlled by the unit load set-point must not limit the required gradient of power changes within the power range controlled by the Y1(i) signal if the latter is expected to be used.

(5) Within the unit control range the gradient of power changes must not be lower than the gradient of power changes which results from the requirements applicable to operation with control that uses the Y0(i) signal.

(6) Admissible unit operation range with the activated primary and secondary control systems that use the Y1(i) signal must not bring about overloading or underloading of the generating unit.

(7) Current requirements applicable to the primary and secondary control systems that use the Y1(i) signal must be met, and in the event of any need to change and modify them a written TSO approval for said changes is required.

3.4.4. The commissioning of the implemented control system is preconditioned on: (1) acceptance tests according to the program fixed by the TSO that are conducted

by an independent contractor accepted by the TSO, (2) a formal protocol that confirms meeting of the technical requirements is drawn, (3) the generator or its representative request in writing that the system is accepted, (4) the TSO accepts in writing the system for operation.



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3.4.5. With changes of: (1) control algorithms, (2) control systems parameters, (3) installed capacity or minimum technical capacity of the unit, (4) procedure that presets the unit operating mode through the SOWE system,

conducting of the repeated acceptance tests is required according to the procedure described under para. 3.4.4.

3.5. Technical requirements concerning automatic voltage control systems in generating nodes (ARNE)

3.5.1. The ARNE system should facilitate adjustment of the voltage levels within the admissible voltage control range by the PSE SA in the given switching station.

3.5.2. The ARNE system should facilitate 0-to-3% adjustment of the voltage regulator droop seen as the ratio of the relative voltage change of the power system to the relative reactive power change in the given steady-state operating point (expressed as percentage).

3.5.3. The ARNE system should be adapted to local and remote voltage presetting (from superior dispatching centers).

3.5.4. The system voltage control error must not be higher than 0.5 %. 3.5.5. The dead zone εu understood as the range of system insensitivity to a change of

the controlled voltage should be adjustable within the range of 0.1 to 1 %. 3.5.6. The ARNE system should facilitate adjustment of the maximum and minimum

controlled voltage levels that bring about locking of the system. 3.5.7. The generator control the time required to bring the voltage deviation down to

the preset value should be shorter than 3 minutes. With the transformer control said time is not subject to standardizing.

3.5.8. The system should facilitate adjustment of the control pulse separation time: (1) of the generator voltage regulator control elements: tp > 5 s; (2) of the transformer tap changer controls: 3 min < tp < 30 min.

3.5.9. The available band of the reactive power control should match the area that results from the circular graph of the generating unit loads, with the adjustable safety margin of 2.5 - 10 % Qgmax. The system should not bring about a permanent operation of control limiters.

3.5.10. The system should provide for a uniform reactive power distribution among generating units of the same rated power, operating in reference to the given switching station bus system. With the generating units of different rated power the system should provide for reactive power distribution in proportion to their power.

3.5.11. The system should facilitate adjustment of the unit maximum voltage threshold level that brings about locking of the system. The setting should be equal to Ugmax < 1,1Ugn (Ugn – rated voltage).

3.5.12. The dead zone εu understood as the insensitivity range of the circuit that controls the coupling transformer ratio should be adjustable within the range of 0.5 to 5 %.



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3.5.13. The ARNE system should function in such a way that prevents a situation where the operation frequency of the transformer tap changer is in excess of the one that is allowed to the particular tap changer.

3.5.14. Operation of the ARNE system must not bring about reactive power and voltages oscillations found in switching stations .

3.5.15. The control of the transformer ratios should be performed within the range that is allowed in context of the admissible voltages and currents at the primary and secondary sides. With this adjustment range exceeded the operation of the control system should be locked in that direction which might bring about a further increase of the value that has been already exceeded.

3.6. Technical requirements for generating units taking part in reconstruction of the Polish power system

3.6.1. The generating units take part in reconstruction of the PPS are characterized by the following features:

(1) Capacity of the generating unit must be sufficient to cover necessary load in reconstruction of the power supply.

(2) Generating units must be connected to the main transmission grid. (3) Proper ramping rate that facilitates quick loading by the loads that are connected

by the competent dispatch services. (4) High operating reliability. (5) High availability. (6) Specific strategic location of the areas assigned within the limits or in vicinity of

main industrial and urban agglomerations, including vicinity of the border energy exchange stations without excessively complex access routes.

(7) Correct operation of the frequency and voltage controls during isolated operation with various connections and loads, facilitating acceptance of the step change of the load by ∆P = 0 ±0.1Pn with the frequency changing by no more than ∆f < ±1 Hz, and operation with low voltage and power levels, meant to meet the operating challenges formulated by the lines with low loads.

(8) Ability to control voltage in a chosen start-up route, in operation both with and without load.

(9) Organizational, technical and communication structure made properly match the process of the Polish power system defense and reconstruction, according to the requirements specified by the TSO.

3.6.2. Detailed technical requirements are specified by the TSO separately for each individual generating unit expected to take part in the power supply defense and reconstruction, according to its location in the PPS and its role in the Polish power system reconstruction.



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4. RULES GOVERNING CONDUCTING OF THE ACCEPTANCE TESTS AND THOSE THAT VERIFY OPERATION OF THE ANCILLARY SERVICES SYSTEMS

4.1. Acceptance tests and those that verify operation of the primary and secondary control systems, and the automatic voltage control systems that control voltages in generation nodes

4.1.1. The following cases oblige generators to conduct the acceptance tests of the systems that offer the primary and secondary control:

(1) Commissioning up of new electric facility control systems. (2) Modernization of existing control systems. (3) Changes of structure or algorithm of control systems. (4) Changes of the control system equipment. (5) Changes of the power range of a generating unit that is controlled by the primary

control, increasing the control range in reference to the one that was earlier subject to a formal acceptance of the control systems (change of installed capacity or minimum allowed technical load).

(6) Modernization of a generating unit that might affect the quality standard of its control.

4.1.2. The tests described under the para. 4.1.1. are conducted by the contractor agreed with the Transmission System Operator, according to the program fixed by the TSO.

4.1.3. The generator proceeds obligatorily with the metering tests of primary control concerning the control systems of the generating units after each major overhaul or every four years. The meterings are subjected to technical evaluation by the Transmission System Operator.

4.1.4. In order to secure their acceptance by the transmission system operator, the primary and secondary controls systems are reported for technical acceptance according to a one-week term of notice.

4.1.5. The Transmission System Operator organizes the formal technical acceptance with participation of the generator representatives, meant to verify the compliance of the generating unit with the control requirements of the Transmission System Operator, combined with maintaining of the remaining parameters at their levels of safe operation.

4.1.6. The Transmission System Operator confirms commissioning of the control system after the requirements described under para. 4.1.5 are meet.

4.1.7. The Transmission System Operator proceeds with an uninterrupted control of operation of the control system found at the individual generating units by comparing the power measured in the real-time system with the pre-set values.

4.1.8. On the basis of the performance of the individual generating units registered at the during the frequency or Y1 signal changes in the PPS the Transmission System Operator evaluates the control quality standard offered by the individual



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generating units. 4.1.9. If the TSO finds that the control systems function in the way that is not

consistent with the rules described in control acceptance protocols it becomes free to order conducting of the control meterings at a date that comes earlier than the one stipulated under para. 4.1.3.

4.1.10. If the TSO finds that the given generating unit is not ready for control operations the additional tests of the electric facility are required.

4.1.11. Control tests described under paras. 4.1.9. and 4.1.10. are conducted to the costs of the generator, with participation of the TSO representatives.

4.1.12. The generator covers the costs related to participation of the TSO representatives in the control tests described under paras. 4.1.9., 4.1.10. and 4.1.13..

4.1.13. The TSO is free to demand (not more often than twice a year) a control test of generating unit, to be conducted by the generator with participation of the TSO representatives. In such cases the TSO notifies generator about this intention according to at least 72-hour advance notice.

4.1.14. Responding to the generator request the TSO can agree to disconnection of the generator unit control system.

4.1.15. According to a written request of the generator the range or other parameters of the ancillary service that is rendered can be changed during the term of the ancillary control services agreement. In such a case the electric facility acceptance tests are required.

4.2. Acceptance tests and those that verify ability of the generating units to restore the PPS power supply

4.2.1. The Transmission System Operator reserves to itself the right to conduct the control test during the term of the ancillary services agreement, dealing with the self-startup ability and operation of the generating units in isolated systems; the test can be performed once a calendar year on a selected generating unit, according to the rules defined in these Rules.

4.2.2. The Transmission System Operator informs the generator according to a 72-hour term of notice about its intent to conduct the test.

4.2.3. If the test reveals that the power plant to render the services of PPS reconstruction the payments received by the generator for the last settlement period are refunded while further payments are discontinued pending positive results of the repeated test. The negative result of the test makes the generator pay costs.

4.2.4. The generator informs the Transmission System Operator about the date of the repeated test according to a 72-hour term of notice.



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5. SCHEDULING AND DISPATCHING OF THE ANCILLARY

CONTROL SERVICES BY THE TSO

5.1. The Transmission System Operator proceeds with scheduling and dispatching of the ancillary control services within framework of the co-ordination scheduling, in compliance with the rules stipulated in the IRiESP and the Rules of the Balancing Market, taking into account the terms and conditions stipulated by the connection agreement and the stipulations of the ancillary services agreement.

5.2. The detailed rules that govern elaboration, by the TSO, of the yearly and monthly co-ordination schedules are discussed in the IRiESP while the rules of the daily schedules are covered by the Rules of the Balancing Market.

5.3. The volumes of the power reserves required to secure a reliable and safe operation and compliance with the qualitative specifications and standards of the PPS energy, and also required to comply with the specifications of the synchronous operation of the PPS with other systems, scheduled by the TSO in the individual co-ordination schedules, result from:

(1) Demand forecasts of the PPS and the schedules of operation and overhauls of the grid.

(2) UCTE requirements. (3) The specific set and the operation schedule (resulting from realization of the

trade agreements) of the generating units subject to dispatching. 5.4. In context of the scheduled use, by the Transmission System Operator, of the

ancillary control services the yearly co-ordination schedule (PKD) identifies the required level of power reserves for individual calendar months, broken down as follows:

(1) Second reserve. (2) Minute reserve. (3) Hourly reserve. (4) Restoration reserve.

5.5. In context of the scheduled use, by the Transmission System Operator, of the ancillary control services the monthly co-ordination schedule (PKM) identifies the required level of power reserves for individual days of the month, broken down as follows:

(1) Second reserve. (2) Minute reserve. (3) Hourly reserve. (4) Restoration reserve. (5) Long-lasting.

5.6. In context of the scheduled use, by the Transmission System Operator, of the ancillary services the preliminary daily co-ordination schedule (WPKD) identifies the following elements for individual hours of the trading day n:

(1) Required level of power reserves, broken down as follows: (1.1.) Second reserve. (1.2.) Minute reserve. (1.3.) Spinning reserve.



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(1.4.) Restoration reserve. (2) The marker that identifies the intended use, by the TSO, of the second and

minute reserves of the particular generating unit. (3) The enforcement marker that marks the scheduled forced use of the particular

generating unit in a must-run operation system resulting from the reasons reported by the power plant.

5.7. In context of the scheduled use, by the Transmission System Operator, of the ancillary services the daily co-ordination schedule (PKD) identifies the following elements for individual hours of the trading day:

(1) Required level of power reserves, broken down as follows: (1.1.) Second reserve. (1.2.) Minute reserve. (1.3) Spinning reserve. (1.4.) Restoration reserve.

(2) The marker that identifies the intended use of the second and minute reserves of the particular generating unit.

(3) The enforcement marker that marks the scheduled forced use of the particular generating unit, reported by the power plant.

5.8. The generator, whose generating unit was scheduled in the WPKD as the one to be used in control, remains obligated to maintain availability of the control circuits (the primary and secondary control ones) and take properly into account, in its scheduling of the generation and sale of electric energy covered by the electricity sale contracts, the levels of reserves (the second and minute ones) activated with said modes of control.

5.9. The rules to govern presentation of the balancing bids and taking into account in them the rendering of the ancillary control services, applicable to the generating units scheduled in the preliminary daily co-ordination schedule by the Transmission System Operator are presented in the Rules of the Balancing Market.

5.10. If a contract for delivery of the spinning reserve is signed the generator remains obliged to present the balancing bid where the trade part of the same identifies the incremental bands that specify the offered volume of the spinning reserve.

5.11. The grounds for verification of the balancing bids (trade part) are the admissible values of the Unit Load Set-Points (BPP) that are determined individually for each individual generating unit as:

(1) BPPmin – the minimum admissible value of the changes of the Unit Load Set-Point applicable to the particular operating status of the generating unit.

(2) BPPmax – the maximum admissible value of the changes of the Unit Load Set-Point applicable to the particular operating status of the generating unit.

5.12. The admissible values of the Unit Load Set-Points (BPP) are determined for the following four cases:

(1) Control system OFF – marker 0. (2) Operation in the primary control system – marker 1. (3) Operation in the secondary control system – marker 2. (4) Operation in the primary and secondary control system – marker 3.

5.13. The admissible values of the Unit Load Set-Points (BPP) are determined based on:



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(1) Installed capacity POS. (2) Technical minimum Pmin tech. (3) Range of the primary control within the ARCM ∆P(∆f) [MW]. (4) Range of primary control off the ARCM ± ∆P(∆f) [MW]. (5) Range of secondary control ∆P(Y1), taking into account the operating specificity

of the control system for the particular generating unit. 5.14. The BPPmin, BPPmax will be eventually determined in the control systems

acceptance protocol for each individual generating unit involved in rendering of the second and minute reserves, and for each one of the control utilization markers. Said values will be determined in MW and registered by the Transmission System Operator in Power Objects Configuration System (KOE), and they will also be included in the ancillary services agreements.

5.15. The BPPmin and BPPmax registered in the KOE system and in the ancillary services agreements will constitute grounds for verification of the correct elaboration of the balancing bids that concern scheduling of the second and minute reserves utilization.

5.16. If a balancing bid is rejected resulting from the bids verification process the substitute bid will be accepted and the utilization marker identified in the WPKD will apply.

5.17. The control status marker, i.e. the one that identifies the operating condition of the individual forms of control, is determined for the particular generating unit in the WPKD according to the executed ancillary services agreements.

5.18. Given generating unit can be operated in a system of primary and/or secondary control only and exclusively when:

(1) The maximum „trade” power PMAX(h) is equal to the installed capacity POS. (2) The minimum „trade” power PMIN(h) is equal to the minimum technical

capacity Pmin tech. An exemption from this rule is allowed to an order by the Transmission System

Operator. 5.19. Assignment of the control marker in the WPKD determines finally the range of

the admissible changes of the BPP, save for the situation described under paras. 5.25. and 5.26.

5.20. If in spite of its scheduling for control operation in the WPKD the particular generating unit fails to operate in said system of reason of its failure to meet the requirements stipulated under para. 5.18. or of reason of the faulty primary and/or secondary control system the admissible range of changes of the BPP will result from the control operating status defined in the WPKD.

5.21. The faulty primary and/or secondary control systems do not result in a situation where the generator concerned becomes free to change the admissible range of the BPP for another one that fails to result from the status identified in the WPKD, save for the circumstances discussed under paras. 5.25. and 5.26.

5.22. Filing of the admissible values of the BPP will be feasible in context of the settlements and statistics; the values of the BPP can be corrected if capacity loss becomes the case while the governing rules in effect then will be the ones discussed under paras. 5.25. and 5.26.

5.23. The correction of the admissible values of the BPP will not affect the fixed values of the BPP for each individual generating unit, recorded in the database of



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the KOE system, being subject to technical acceptance, identified for each individual type of the control utilization marker.

5.24. The SOWE system will allow reporting of the capacity losses on day n-2, till 10.00 hrs.

5.25. In case the maximum „trade” power PMAX(h) identified in the balancing bid is lower than the BPPmax for the given control marker specified in the WPKD, the PMAX(h) is assumed as the upper range of the admissible changes of the BPP.

5.26. In case the minimum „trade” power PMIN(h) identified in the balancing bid is higher than the BPPmax for the given control marker specified in the WPKD, the PMIN(h) is assumed as the lower range of the admissible changes of the BPP.

5.27. The power volumes offered by the individual generating units in overloading (PP) and underloading (PZ) for each individual hour h of the trade day n must meet the following conditions:

(1) They are not negative. (2) They are specified as gross MW values with a precision of 1 MW. (3) The range of the offered overloads remains atop the installed capacity. (4) The range of the offered underloads remains blow the minimum technical

capacity. 5.28. If the presented balancing bids for the generating units scheduled for the control

operation in the WPKD fail to meet the required conditions the TSO uses the substitute bids concerning the particular generating units while complying in the process with the Rules of Balancing Market.

5.29. In context of its operation of system the TSO elaborates the Current Daily Co-ordination Schedule (BPKD) that identifies the unit load set-points of the individual generating units for each individual 15-minute interval of day n. The BPKD is elaborated based on the PKD and the information collected in operation of the Polish Power System, according to the varying conditions that affect demand in the PPS.

5.30. All the events recorded in the BPKD in relation to operation of the control systems, operation, starting, outages and operating discipline of the individual generating units, as well as the actual realization times of said events are subject to registration in the Registration of the Daily Co-ordination Schedule (RPKD). The RPKD facilitates determination of the causes of the appearing deviations and also an assessment of the dispatch order implementations.

5.31. The detailed list of the events registered by the RPKD is found in the Rules of Balancing Market.

5.32. If the control power reserve deficit, transmission network constraints or disturbances appear the TSO becomes free to order an emergency energizing of:

(1) The available primary and/or secondary control systems of also those generating units in operation or subject to a start-up, which are not covered by the ancillary services agreement.

(2) The secondary control using the activating Y1(i) signal at all the generating units in operation or subject to a start-up, found at the thermal power plants with available secondary control system adapted for inclusion in the emergency control.

(3) The automatic load control system (i.e. the hourly reserve dispatching one) of the generating units found at the thermal power plants (using the Y0 signal of



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the central regulator). This particular type of the service is seen as the one that supports the secondary control and is utilized by the TSO when the electricity balancing market is suspended.

5.33. The emergency procedures of the balancing market applied by the TSO in suspension of the electricity balancing market are defined in the Rules of Balancing Market.

BPPMAX

BPPMIN

Basic trade period [h]

±∆P (range of RSand/or RM – dependson control utilizationmarker)

15 min 15 min 15 min 15 min

POS

PMNI

TECHDetermination ofcontract positionfor given hour h

BPP1

BPP2 BPP3

BPP4

Definition of the corrected operational contract position (gross)

The corrected operating contract position is determined according to the sum of the operatingvolumes of electricity delivery during individual 15-minute periods



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Basic trade period [h]

15 min 15 min 15 min 15 min

Point 4 marks the update time limit of the BPP for the current trade perioit finally determines the corrected operational position for given hour h

BPP1BPP2 BPP3

BPP4

15 min 15 min

1 2 3 4

Process of establishment of the corrected operational contractposition



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6. CONTRACTING OF THE ANCILLARY SERVICES BY THE TRANSMISSION SYSTEM OPERATOR

6.1. Contracting procedure applicable to individual ancillary services

6.1.1. The required scope of the ancillary services bought by the Transmission System Operator results from the volumes of the individual types of service identified in the Yearly Co-ordination Schedule (PKR).

6.1.2. The Transmission System Operator contracts the ancillary services by way of the competition of bids and bilateral negotiations.

6.1.3. The list of the ancillary services contracted by the TSO by way of the competition of bids is as follows:

(1) Second reserve (RS). (2) Minute reserve (RM). (3) Spinning reserve (RW). (4) Restoration reserve (RO). (5) Long-lasting (RT). (6) Underloading or overloading. (7) Voltage and reactive power control (ARNE).

6.1.4. The technique of bilateral negotiations is used by the TSO to contract the ancillary services specified in the catalogue of the ancillary service under para. 1.3., save for the ancillary services mentioned under para. 6.1.3. of these Rules.

6.1.5. The bilateral negotiations are also used by the TSO in contracting of the ancillary services rendered by the hydro power stations.

6.2. Ancillary services contracting schedule

6.2.1. The process of the ancillary services contracting by the TSO is started after contracts are executed with the generators in reference to the reserves of the must-run generation – the applicable rules can be found in the Rules of must-run generation.

6.2.2. The ancillary services contracting process is preceded by delivery, by the TSO, of an inquiry addressed to those generators who hold technical ability to render the specific ancillary services. Said inquiry includes among others:

(1) The list of the contracted ancillary services, complete with identification of the types of service that are to be paid-for according to the rates determined by way of the competition of bids.

(2) The general information that includes the specification of the types of service that are subject to the competition.

(3) The definition of the individual types of service subject to the competition. (4) The detailed remarks concerning the competition of bids. (5) The subject matter of the tender process. (6) The prices, dues and settlement rules concerning the individual types of service



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covered by the competition. (7) The bids evaluation criteria. (8) The samples of the bid forms. (9) The dates of:

(9.1.) Presentation of bids. (9.2.) Opening of bids. (9.3.) Completion of the bids evaluation and selection process.

6.2.3. The generators should present their ancillary services bids using the relevant forms – their samples can be found in Appendices Nos. 1 and 2 of these Rules. The TSO reserves to itself the right to refuse examination of the bids presented in another form.

6.2.4. The Transmission System Operator identifies the best bids and starts negotiations concerning the services scheduled for purchase in negotiations.

6.2.5. The Transmission System Operator executes the 12-month ancillary services agreement with the individual generators.

6.3. Charges for rendering of ancillary services

6.3.1. The rates applicable to the charges for the ancillary services are fixed for a term of 12 months (from July 1 of the year of the ancillary services purchase through June 30 of the next year) by way of competition of bids and by way of negotiations.

6.3.2. With contracting of the ancillary services done by way of the competition of bids the rates applied in calculation of charges for the particular type of service rendered by the individual generators result from the bid prices offered by the particular generator.

6.3.3. If the rates determined that way exceed the admissible projected level resulting from the amount of the qualitative component of the system rate that matches the power reserves resulting from the tariff of the PSE SA, the competition of bids is seen as the one that failed to bring about positive results.

6.3.4. The competition of bids is also seen as the one that failed to bring about positive results when the presented bids fail to cover the demand for the particular service.

6.3.5. If the competition of bids fails to bring about positive results in reference to a specific service the TSO publishes its results (preserving in the process the anonymous standing of the bidders) and applies to the generators for their repeated presentation of bids concerning the particular service.

6.3.6. If the repeated competition of bids concerning the specific service fails to bring about the positive results either the remuneration paid to the given generator for its rendering of the particular service is calculated according to the prices and the charges found in the tariff elaborated by the particular generator and approved by the President of the Energy Regulatory Office.

6.3.7. If the rates of the ancillary service charges, determined by way of the competition of bids as the bid prices concerning the particular form of service offered by the individual generators, do not exceed the admissible projected level resulting from the qualitative component of the system rate matching the



Date: 2001-07-19 of 68

power reserves and resulting from the tariff of the PSE SA the TSO accepts all the bids of the generators and executes with them the ancillary services agreements.

6.3.8. The rates that govern the charges for those ancillary services that are not covered by the competition of bids are determined by way of negotiations that start with the price bids presented by the generators.

6.3.9. The negotiations concerning the rates applicable to the ancillary service charges are held according to the following rules:

(1) The TSO embarks on negotiations with the relevant generators that hold technical abilities to render the service, meant to attract the service at a cost that is acceptable in context of the projected level of the qualitative component of the system rate.

(2) If the negotiations fail to bring about the expected effect the payments for the given generator for its rendering of the particular form of the ancillary service are based on the prices and rates found in the tariff of the particular generator approved by the President of the Energy Regulatory Office.

6.4. Bids evaluation rules

6.4.1. The following bids evaluation rules are accepted: (1) Technical rules – 20 ÷ 30 points, depending on the presented parameters and the

acceptance tests results (applicable to the second and minute reserves). (2) Price rules – 30 ÷ 50 points, depending on how far the particular price deviates

from the average prices calculated according to all the bids. With the second, minute, spinning and restoration reserves the assessment will concern deviation of the price for readiness (CZ), the price for utilization (CW) and the total price (C). The general price will be determined according to the following weights: (CZ) – 20%, (CW) – 30%, (C) – 50%.

(3) System rules – depending on the location in the network (applicable to the second reserve) – 10 ÷ 20 points.



Date: 2001-07-19 of 68

7. PENALTIES

7.1. The Transmission System Operator is free to charge the following penalties to be paid by the generators whose generating units fail to comply with:

(1) The operating discipline. (2) The available capacity.

7.2. The obligations of the individual generating units towards the Transmission System Operator, concerning generation of energy in each individual hour of the trade day, are equal to the reference energy (EODN) that covers:

(1) Electricity (EBPP) resulting from the unit load set-points (BPP), determined as an average MWh value of the BPP for each individual hour.

(2) Electricity (∆EY1) generated in operation of the secondary control system resulting from the path of the Y1 signal.

tYEY ⋅⋅∆⋅

=∆ λ31

5,0 11

(7.1)

where: 1Y∆ [MW] – secondary control range;

λ – average value of the Y1 signal in given hour of the trade day; t – basic settlement period of 1 hour.

(3) Electricity (∆EP) resulting from operation of the primary control system caused by variation of frequency in the PPS.

tSf

PfEN

OSp ⋅

⋅⋅∆

=∆ (7.2)

where:

f∆ [Hz] - mean frequency deviation (∆f=f-fN) in given hour;

OSP [MW] – installed capacity of the given generating unit;

f [Hz] - momentary value of frequency;

Nf [Hz] – rated frequency (50 Hz);

S – ∆f / ∆P of the given generating unit; t – basic settlement period of 1 hour.

7.3. The failure to comply with the operating discipline is construed as a deviation of the energy generation by the given generating unit, referred to the reference energy defined by the following formula:

pYBPPODN EEEE ∆−∆+= 1 (7.3)7.4. If the deviation of the energy generation by the given generating unit, referred to

the reference energy, is lower than ±1,5% of the installed capacity (Pos) the generators are charged with no penalty.

7.5. If the deviation of the energy generation by the given generating unit, referred to the reference energy, remains within ±1,5% of the Pos – ±3% of the Pos the Transmission System Operator remains free to charge the penalty calculated as a product of the imbalance settlement price (CRO), determined for each individual



Date: 2001-07-19 of 68

trade period in the balancing market, and the volume of energy that constitutes the disparity between the actual generation and the reference energy.

7.6. If the energy generated by the particular generating unit deviates from the reference energy by more than ±3% of the Pos the Transmission System Operator becomes free to charge the penalty calculated at twice the product of the imbalance settlement price (CRO), determined for each individual trade period in the balancing market, and the volume of energy that constitutes the disparity between the actual generation and the reference energy.

7.7. The failure to comply with the maximum „trade” power in the given hour of the trade day is construed as a change of the maximum „trade” power of the given generating unit in reference to the maximum „trade” power resulting from the balancing bids reported for the given generating unit in hour 10.00 of day n-1, as accepted by the TSO in the daily co-ordination schedule.

7.8. If the given generating unit fails to comply with the maximum „trade” power the Transmission System Operator becomes free to charge a penalty calculated as the product of the rate applied to the restoration reserve offered by the given generating unit and the disparity between the available capacity accepted by the TSO in the PKD and the available capacity registered in the given hour in the BPKD.

7.9. Revenues generated by the penalties charged for non-compliance by the generating unit with the operating discipline reduce the costs incurred in offering the required quality standard and reliability of the power supply; they are allocated to the tariff of the PSE SA within framework of the transmission charge.

7.10. The penalties charged for the deviations of the energy generation discussed under paras. 7.5. and 7.6. are applicable exclusively to the energy generation deviations determined according to the rules stipulated under para. 7.2. – this means that the primary and/or secondary control system was energized without relevant order of the TSO or remained in operation in violation of the rules specified in the control systems acceptance protocols.



Date: 2001-07-19 of 68

8. SETTLEMENT OF THE ANCILLARY SERVICES

8.1. Rules of the payment for energy generated in rendering of the ancillary services

8.1.1. The energy that is related to rendering of the ancillary services is subject to the settlement in the balancing market according to the procedures stipulated by the Rules of Balancing Market.

8.1.2. The energy generated or not generated resulting form utilization of the second reserve (operation of the primary control) or minute reserve (operation of secondary control) according to an order delivered by the TSO through the SOWE system within the BPKD is subject to the settlement in the Balancing Market according to the imbalance settlement price (CRO) determined for each individual hour of the trade day n.

8.1.3. The energy that is generated resulting from utilization of the spinning reserve according to an order delivered by the TSO through the SOWE system within the BPKD will be settled in the Balancing Market according to the settlement prices of the corrected contract position (CRK), determined for each individual hour of the trade day n when the BPKD schedule is elaborated.

8.1.4. The energy that is generated resulting from utilization of the restoration reserve according to an order delivered by the TSO through the SOWE system within the BPKD will be settled in the Balancing Market according to the settlement prices of the corrected contract position (CRK), determined for each individual hour of the trade day n.

8.1.5. The energy generated or not generated in overloading or underloading according to an order delivered by the TSO through the SOWE system within the BPKD is subject to the settlement in the Balancing Market according to the imbalance settlement price (CRO) determined for each individual hour of the trade day n.

8.1.6. The energy generated by the given generating unit of the combined heat and power plant operated in the condensing system according to an order of the TSO, exclusively in the circumstances resulting from the network constraints, is subject to the settlement in the Balancing Market according to the imbalance settlement price (CRO) determined for each individual hour of the trade day n based on a separate agreement executed by and between the TSO and the generator.

8.1.7. The energy generated resulting from utilization of the hourly reserve of the hydro power stations will be settled in the Balancing market according to the rules identified in the ancillary services agreement executed by and between the TSO and the pumped-storage generator.

8.2. Rules of payment for rendering of the ancillary services

8.2.1. The payment for the ancillary services takes place according to the rates fixed with the individual generators in the competition of bids or negotiations, and



Date: 2001-07-19 of 68

identified in the ancillary services agreements. 8.2.2. The second reserve service rate is of a two-component character:

(1) CRSG – rate applied in context of the readiness for rendering of the second reserve service.

(2) CRSW – rate applied in context of the actual utilization of the second reserve. 8.2.3. The minute reserve service rate is of a two-component character:

(1) CRMG – rate applied in context of the readiness for rendering of the minute reserve service.

(2) CRMW – rate applied in context of the actual utilization of the minute reserve. 8.2.4. The spinning reserve service rate is of a two-component character:

(1) CRWG – rate applied in context of the readiness for rendering of the spinning reserve service.

(2) CRWW – rate applied in context of the actual utilization of the spinning reserve. 8.2.5. The bid rate applied in the restoration reserve service is of a two-component

character: (1) CROG – rate applied in context of the readiness for rendering of the restoration

reserve service. (2) CROW – rate applied in context of the actual utilization of the restoration reserve.

8.2.6. The dues for the services of readiness to offer the operating reserves remain the case during the term of availability of the particular generating unit construed as:

(1) The term of operation of the particular generating unit - in case of the second, minute and spinning reserves;

(2) The term of standstill in availability of the particular generating unit - in case of the restoration reserve,

assuming that said generating unit presented bid and signed agreement concerning rendering of the above-mentioned services.

8.2.7. The dues for the provision of the second and minute reserves remain with the generating units that were scheduled for operation in the co-ordination scheduling process BPKD → BPKD-BPPZ.

8.2.8. The generating unit that was scheduled in the BPKD for rendering of the service of the second and minute services readiness in day n, and was actually made operate in the Y0 signal control operation system according to the order of the Transmission System Operator, will receive the relevant payment for the actual time of its operation in the Y0 signal control according to the price applied in context of the minute reserve within secondary control by the Y1.

8.2.9. If the second or minute reserve is used in reference to the generating unit that fails to hold the agreements for rendering of said services the dues to be paid for the actual use of the above-mentioned services will be calculated according to the bid price presented by the generator or according to the maximum rates specified in all the ancillary services agreements, provided said prices are not lower than the bid one.

8.2.10. All the events that constitute the grounds for payment, related to the rendering of the ancillary services by the individual generating units, are subject to registration in the RPKD (Registration of the Daily Co-ordination Schedule). The RPKD facilitates at the same time identification of the causes of the appearing imbalance and also an evaluation of compliance with the dispatch orders.



Date: 2001-07-19 of 68

8.2.11. The detailed list of the events registered in the RPKD can be found in the Rules of Balancing Market.

8.2.12. If the primary or secondary control systems are switched on according to order of the TSO at the generating units which are not covered by the ancillary services agreement (when the Polish Power System suffers the control power deficit, network constrains or disturbance) the payment for rendering of said services will be calculated according to the maximum rate in effect in reference to the particular service during the current contracting period.

8.2.13. The power reserve services offered by the thermal power plants are remunerated according to the volume of the reserve that was actually accepted in the given settlement month (determined according to the performance records).

8.2.14. The hourly power reserve of the hydro power stations is remunerated according to the volume of the reserve accepted in the given settlement month when the given generating unit remains in operation or in a standstill that provides for its availability. But the minute power reserve of the hydro power station is remunerated according to the volume of reserve in the given month – credited during the periods of operation (to order of the TSO) of the secondary control system, during the term of generator-type of operation of the particular generating unit.

8.2.15. The services of underload and overload operation of the generating units found in the condensing thermal power plants and those of the condensing operation of the generating units found at the combined heat and power plants (taking place to a dispatch order) are remunerated according to the rates applicable to said services, as presented in the bids and finally fixed in negotiations, and recorded in the ancillary services agreements.

8.2.16. The reactive power and voltage control services (ARNE, compensatory operation of a hydro-unit) are remunerated for the time of operation of the ARNE system in the power plant or for the time of the compensatory operation of the hydro-unit (their activation and deactivation takes place according to the dispatch order) according to the payment rates applied to said forms of service, as fixed by way of negotiations and recorded in the ancillary services agreements.

8.2.17. The services of readiness to participate in protection and reconstruction of the PPS (self-startup, isolated operation) are remunerated in reference to availability of said services, according to the relevant rates fixed in negotiations and recorded in the ancillary services agreements.

8.2.18. Activation and deactivation of the generating unit control systems without consent of the TSO is inadmissible and results in renouncement of the payment for the time of unavailability of the particular system, starting from the moment of its deactivation till the moment of its restored service availability reported to the TSO.

8.2.19. If the situation discussed under para. 8.2.18. appears the generator will offer the TSO a discount amounting to the payment for the 12-hour operation of the relevant system.

8.2.20. If the TSO notices that the particular generating unit is not able to offer control or if its control quality is seen negatively by the TSO during a term of in excess of 5 hours the payment for the relevant service will be renounced. The continued



Date: 2001-07-19 of 68

payment will be conditioned on a positive results of the verification tests; the payment will start from the next trade day after the positive tests.

8.2.21. If the situation discussed under para. 8.2.20. appears the generator will offer the TSO a discount amounting to the payment for the 12-hour operation of the relevant system.

8.2.22. If a disturbance appears or if a scheduled disconnection of the telecommunication links takes place resulting in a situation where no Y1 control signal reaches the power plant the generator involved is paid the full amount of dues for its readiness to render the contracted minute reserve service.

8.2.23. Accumulation, during the term of one month, of the control systems operation times and the times of the confirmed volumes of the individual power reserves, recorded down to 1 minute, are rounded by the end of the months to full hours according to the general rules applied in rounding.

8.2.24. Recognized as the energizing and deenergizing times of the control systems are the times of performance of the relevant operation according to the order issued by the TSO, as confirmed by the power plant.

8.2.25. The gross/net ratio for the basic trade period is determined according to the declared gross and net volumes of energy during each trade period, as found in the balancing bids.

8.2.26. If a part of the band presented in the balancing bid is utilized the gross/net ratio is calculated according to the declared gross and net volumes of energy in the particular band, determined for the utilized part of the band.

8.2.27. Conversion of the gross volumes into the net ones takes place according to the formulas (8.11) or (8.12) presented under para. 8.3.3.4.

8.2.28. With the generating units started from the standstill the starting time of the charge for the second and minute reserve is the moment when the startup is completed, i.e. the moment when the generating unit arrives at its technical minimum.

8.2.29. If the generating unit is started from the restoration reserve or standstill the starting time of the charge for the spinning reserve is the moment when the generating unit becomes synchronized with the network.

8.2.30. The availability ratios are calculated down to the fourth place after decimal point.

8.2.31. All the settlement values (parameters) are recorded and calculated at one-hour intervals for each individual generating unit, for all days of the month.

8.3. Value-based settlement of the ancillary services rendering

8.3.1. Settlement of the second reserves offered by the thermal power plants

8.3.1.1. The dues relate to the second reserve offered by the particular generating unit in the given settlement month are paid provided the following conditions are met:

(1) The WPKD specifies the control utilization marker (1) or (3).



Date: 2001-07-19 of 68

(2) The primary control system is in a good operating condition as confirmed by the valid acceptance protocol.

8.3.1.2. The remuneration for the second reserve is calculated using the following formula:

RSWRSGRS NNN += (8.1) where: 8.3.1.3. Remuneration for readiness of the given generating unit to render the second

reserve service NRSG in the given settlement month is calculated according to the following formula provided the WPKD specifies the control utilization marker (1) or (3) or a substitute bid is accepted (specifying markers (1) or (3):

∑=

⋅⋅⋅=N

n

nsgSRSGRSG T

tPCN

1

)(

60

(8.2)

where: CRSG [PLN/MWh] - Rate applied in context of the readiness of the given generating unit

for rendering of the second reserve service, specified in the ancillary services agreement executed with the given generator;

N [-] - No. of hours in the given months; PS [MW] - Positive range of the power for primary control specified in the

agreement and confirmed by the acceptance protocol; tsg(n) [min] - Time of operation of the given generating unit in hour n, i.e. the time

of operation from the moment of completion of the startup procedure till the moment of disconnection from the network (according to the BPKD);

60 [min] - Number that identifies the time the generating unit is eligible to remuneration for in the given hour n (decimal values);

T [h] - Settlement interval (T = 1 h), 8.3.1.4. Remuneration for utilization of the second reserve NRSW offered by the given

generating unit in the given settlement month is calculated according to the following formula provided the WPKD specifies the control utilization marker (1) or a substitute bid is accepted (specifying marker (1)):

∑=

+ ⋅⋅⋅=N

n

nswSRSWRSW T

tPCN

1

)(

60

(8.3)

where: CRSW [PLN/MWh] - Rate applied in utilization of the second reserve offered by the

given generating unit (with reservations stipulated under para. 8.2.9 taken into account):

• identified in the agreement signed with the given Generator – when the TSO utilized the contracted service, or

• equal to the highest rate charged for the second reserve, in effect during the current contracting period – when the TSO



Date: 2001-07-19 of 68

utilized the service that was not contracted;

N [-] - No. of hours in the given month; PS+ [MW] - Positive range of the primary control within the range of the

installed capacity POS, defined in the agreement and confirmed by the acceptance protocol;

tsw(n) [min] - Time of operation of the given generating unit in hour n with the primary control system energized to order of the TSO, seen as the time from completion of the startup procedure till disconnection of the given generating unit from the network (according to the BPKD);


T [h] - Settlement period (T = 1 h). 8.3.1.5. Remuneration for utilization of the second reserve NRSW offered by the given

generating unit in the given settlement month is calculated according to the following formula provided the WPKD specifies the control utilization marker (3) or a substitute bid is accepted (specifying marker (3)):

∑=

+ ⋅⋅⋅=N

n

nswSPRSWRSW T

tPCN

1

)(

60

(8.3a)

where: CRSW [PLN/MWh] - Rate applied in utilization of the second reserve offered by the

given generating unit (with reservations stipulated under para. 8.2.9 taken into account):


• equal to the highest rate charged for the second reserve, in effect during the current contracting period – when the TSO utilized the service that was not contracted;

N [-] - No. of hours in the given month; PSP+ [MW] - Positive range of the primary control off the ARCM range and

within the range of the installed capacity POS, defined in the agreement and confirmed by the acceptance protocol;

tsw(n) [min] - Time of operation of the given generating unit in hour n with the primary control system energized to order of the TSO, seen as the time from completion of the startup procedure till disconnection of the given generating unit from the network (according to the WPKD);


T [h] - Settlement period (T = 1 h).



Date: 2001-07-19 of 68

8.3.2. Settlement of the minute reserves offered by the thermal power plants

8.3.2.1. The dues relate to the minute reserve offered by the particular generating unit in the given settlement month are paid provided the following conditions are met:

(1) The WPKD specifies the control utilization marker (2) or (3). (2) The secondary control system controlled by the Y1 signal is in a good operating

condition, as confirmed by the valid acceptance protocol. 8.3.2.2. The remuneration for the minute reserve is calculated using the following

formula: RMWRMGRM NNN += (8.4.)

where: 8.3.2.3. Remuneration for readiness of the given generating unit to render the minute

reserve service NRMG in the given settlement month is calculated according to the following formula provided the WPKD specifies the control utilization marker (2) or (3) or a substitute bid is accepted (specifying markers (2) or (3):

∑=

⋅⋅⋅=N

n

nmgMRMGRMG T

tPCN

1

)(

60

(8.5)

where: CRMG [PLN/MWh] - Rate applied in context of the readiness of the given generating unit

for rendering of the minute reserve service, specified in the ancillary services agreement executed with the given generator;

N [-] - No. of hours in the given months; PM [MW] - Positive range of the primary control specified in the agreement and

confirmed by the acceptance protocol; tmg(n) [min] - Time of operation of the given generating unit in hour n, i.e. the time

of operation from the moment of completion of the startup procedure till the moment of disconnection from the network (according to the WPKD);


T [h] - Settlement interval (T = 1 h), 8.3.2.4. Remuneration for utilization of the minute reserve NRMW offered by the given

generating unit in the given settlement month is calculated according to the following formula provided the WPKD specifies the control utilization marker (2) or (3) or a substitute bid is accepted (specifying marker (2) or (3)):

∑=

⋅⋅⋅=N

n

nmwMRMWRMW T

tPCN

1

)(

60

(8.6)

where: CRMW [PLN/MWh] - Rate applied in utilization of the minute reserve offered by the given

generating unit (with reservations stipulated under para. 8.2.9 taken



Date: 2001-07-19 of 68

into account):


• equal to the highest rate charged for the second reserve, in effect during the current contracting period – when the TSO utilized the service that was not contracted;

N [-] - No. of hours in the given month; PM [MW] - Positive range of the primary control defined in the agreement and

confirmed by the acceptance protocol; tmw(n) [min] - Time of operation of the given generating unit in hour n with the

primary control system energized to order of the TSO, seen as the time from completion of the startup procedure till disconnection of the given generating unit from the network (according to the WPKD);



8.3.3. Settlements concerning hourly reserves of the thermal power plants – spinning reserve

8.3.3.1. The dues relate to the spinning reserve offered by the particular generating unit in the given settlement month are paid provided the following conditions are met:

(1) The balancing bid of the given generating unit meets the requirements discussed under para. 2.1.3.7. of these Rules.

(2) The generating unit has the substitute bid. (3) The spinning reserve was scheduled in the PKD → BPKD → BPKD -BPPZ

process. (4) The generating unit the spinning reserve bid was presented for was scheduled for

operation in the PKD → BPKD → BPKD –BPPZ process. (5) The given spinning reserve was qualified by the TSO according to the price

ranking for inclusion in the range of the spinning reserve required for the PPS, guarantying a safe and stable supply of energy to all customers.

8.3.3.2. The remuneration for the spinning reserve is calculated according to the following formula:

where: RWWRWGRW NNN += (8.7) 8.3.3.3. Remuneration for readiness of the given generating unit to render the spinning

reserve service NRWG in the given settlement month is calculated according to the following formula:



Date: 2001-07-19 of 68

∑=

⋅⋅⋅⋅=N

n

nwghpwWRWGRWG T

tPCN

1

)()( 60

γ (8.8)

where: CRWG [PLN/MWh] - The rate applied to readiness of the given generating unit to render

the spinning reserve service, specified in the ancillary services agreement signed with the given Generator.

N [-] - No. of hours in the given month. PW [MW] - The volume of the spinning reserve, determined according to the

ranking of bands, scheduled in the PKD → BPKD → BPKD -BPPZ co-ordination scheduling process.

γpw(h) [-] - Gross-to-net-value conversion factor for the given generating unit in the hth hourly settlement period.

twg(n) [min] - The utilization time of the spinning reserve offered by the given generating unit, scheduled for hour n in the PKD → BPKD → BPKD -BPPZ co-ordination scheduling process.


T [h] - Settlement period (T = 1 h). 8.3.3.4. Remuneration for utilization of the spinning reserve NRWG offered by the given

generating unit in the given settlement month is calculated according to the following formula:

∑=

⋅=N

nnWRWWRWW PCN

1)(

(8.9)

where: CRWW [PLN/MWh] - Rate applied in utilization of the spinning reserve offered by the

given generating unit, specified in the agreement signed with the given Generator.

PW(n) [MW] - Accepted volume of the spinning reserve in hour n. N [h] - No. of hours in the month. Whereas: - the accepted volume of the spinning reserve in the given hour h if the TSO qualifies all the spinning reserve in the given hour h is:

)()()max()( 60 hhpwr

hnW ATtBPPP −⋅⋅⋅= γ (8.10)

where: BPPmax(h) [MW] - Maximum admissible value of changes of the Unit Load Set-Point

for each individual operating status of the generating unit in hour h, calculated as an average value of the four 15-minute Unit Load Set-Points determined for the given hour h.

tr [min] - Operation time of the given generating unit in the hth hourly



Date: 2001-07-19 of 68

settlement period.


T [h] - Settlement interval (T = 1 h),

γpw(h) [-] - Gross-to-net-value conversion factor for the given generating unit in the hth hourly settlement period.

A(h) [MWh] - Net volume of energy generated by the given generating unit in the hth hourly settlement period, metered at the Balancing Market Delivery Point,

while:

- if the PW(n) calculated according to formula (8.10) is < 0 the PW(n) = 0 is accepted;

- if all the bands are utilized in full:

∑

∑

=

==c

c

N

iBc

N

iNc

hpw

E

E

1

1)(γ

(8.11)

where:

ENc [MWh] - Net volume of energy in the utilized band, according to the accepted balancing bid.

EBc [MWh] - Gross volume of energy in the utilized band, according to the accepted balancing bid.

Nc - No. of bands included in the balancing bid;

- if a number of bands are utilized in part and in full:

Bw

N

iBc

NcBc

BwN

iNc

hpw

EE

EEEE

c

c

+

⋅+=

∑

∑

=

=

1

1)(γ

(8.12)

where:

EBw [MWh] - Gross volume of energy in the part of the utilized band, according to the accepted balancing bid.

8.3.3.5. If the TSO qualifies a part of the spinning reserve from the full range of the spinning reserve in the given hour h the remuneration for utilization of the spinning reserve will be paid for the accepted part of the spinning reserve in the given hour h.



Date: 2001-07-19 of 68

8.3.4. Settlements concerning restoration reserves of the thermal power plants

8.3.4.1. The dues related to the restoration reserve offered by the particular generating unit in the given settlement month are paid provided the following conditions are met:

(1) The balancing bid of the given generating unit meets the requirements discussed under para. 2.1.4.7. of these Rules.

(2) The generating unit has the substitute bid. (3) The restoration reserve was scheduled in the PKD → BPKD → BPKD -BPPZ

co-ordination scheduling process.. (4) The generating unit the restoration reserve bid was presented for was scheduled

for operation or standstill in availability in the PKD → BPKD → BPKD -BPPZ co-ordination scheduling process.

(5) The given restoration reserve was qualified by the TSO according to the price ranking for inclusion in the range of the restoration reserve required for the PPS, guarantying a safe and stable supply of energy to all customers.

8.3.4.2. The remuneration for the restoration reserve is calculated according to the following formula:

ROWROGRO NNN += (8.13)

where: 8.3.4.3. Remuneration for readiness of the given generating unit to render the restoration

reserve service NROG in the given settlement month is calculated according to the following formula:

∑=

⋅⋅⋅⋅=N

n

noghpwOROGROG T

tPCN

1

)()( 60

γ (8.14)

where: CROG [PLN/MWh] - The rate applied to readiness of the given generating unit to render

the restoration reserve service, specified in the ancillary services agreement signed with the given Generator.

N [-] - No. of hours in the given month. PO [MW] - The volume of the restoration reserve scheduled in PKD → BPKD

→ BPKD -BPPZ co-ordination scheduling process. γpw(h) [-] - Gross-to-net-value conversion factor for the given generating unit in

the hth hourly settlement period.

tog(n) [min] - The utilization time of the restoration reserve offered by the given generating unit, scheduled for hour n in PKD → BPKD → BPKD -BPPZ co-ordination scheduling process.





Date: 2001-07-19 of 68

8.3.4.4. No payment for readiness to render the restoration service is the case in reference to the power related to the generated energy.

8.3.4.5. The utilization of the restoration reserve should be construed as acceptance of the restoration reserve in operation (in particular during the low-load hours when the system features the surplus spinning reserve and thus sees a part of the spinning reserve as the restoration one) or in the standstill (when the Transmission System Operator identifies a part of the restoration reserve as the required range of power that is available any moment, to an order issued by the TSO, as the one required to secure the system safety – in particular during the peak-load hours).

8.3.4.6. Remuneration for utilization of the restoration reserve NROW offered by the given generating unit in the given settlement month is calculated according to the following formula:

∑=

⋅=N

nnOROWROW PCN

1)(

(8.15)

where: CROW [PLN/MWh] - Rate applied in utilization of the restoration reserve offered by the

given generating unit, specified in the agreement signed with the given Generator.

PO(n) [MWh] - Accepted volume of the spinning reserve in hour n. N [h] - No. of hours in the month. Whereas:

)()()( nOpnOrnO PPP += (8.16)

where: POr(n) [MWh] - spinning restoration reserve accepted in the given hour n;

POp(n) [MWh] - Restoration reserve in standstill accepted in the given hour n;

While:

- the spinning restoration reserve if all the spinning restoration reserve is qualified is:

)()()()max()( hnWhpwhnOr APTBPPP −−⋅⋅= γ (8.17)

where: BPPmax(h) [MW] - Maximum admissible value of changes of the Unit Load Set-Point

for each individual operating status of the generating unit in hour h, calculated as an average value of the four 15-minute Unit Load Set-Points determined for the given hour h.

PW(n) [MW] - Accepted volume of the spinning reserve of the given generating unit in hour n.

γpw(h) [-] Gross-to-net-value conversion factor for the given generating unit in the hth hourly settlement period.

T [h] - Settlement interval (T = 1 h),

A(h) [MWh] - Net volume of energy generated by the given generating unit in the



Date: 2001-07-19 of 68

hth hourly settlement period, metered at the Balancing Market Delivery Point.

8.3.4.6. If the TSO qualifies only a part of all the spinning restoration reserve in the given hour h the remuneration for utilization of the spinning restoration reserve will be paid for the accepted part of the spinning restoration reserve in hour h.

- restoration reserve in standstill:

)()()( 60 hpwp

hdyspnOp Tt

PP γ⋅⋅⋅= (8.18)

where: Pdysp(h) [MW] - gross available capacity of the given generating unit accepted in the hth

hour;

tp [min] - time of standstill combined with acceptance of the restoration reserve in standstill offered by the given generating unit in the hth hourly settlement period.

γpw(h) [-] gross-to-net-value conversion factor for the given generating unit in the hth hourly settlement period.

60 [min] - number that identifies the time the generating unit is eligible to remuneration for in the given hour n (decimal values).

T [h] - Settlement interval (T = 1 h). 8.3.4.7. If the TSO qualifies only a part of all the restoration reserve in standstill in the

given hour h the remuneration for utilization of the restoration reserve in standstill will be paid for the accepted part of the restoration reserve in standstill in hour h.

8.3.5. Settlements concerning the long-lasting reserves of the thermal power plants

8.3.5.1. The dues related to the long-lasting reserve offered by the particular generating unit in the given settlement month are paid provided that declared long-lasting reserve covers the whole generating unit.

8.3.5.2. The remuneration for the long-lasting reserve NRTj generated by the particular generating unit in the given settlement month is calculated using the following formula:

RTjRTj CN = (8.19)

where: CRTj [PLN/month] - Rate for long-lasting reserve offered by the particular generating

unit, specified in the agreement signed with the Generator. 8.3.5.3. If the long-lasting reserve service is rendered by the particular Generator to

benefit of the Transmission System Operator for a period of no less than one month, the remuneration for said service is paid for the days when the generating units remained in reserve, including the day when the boiler of the particular



Date: 2001-07-19 of 68

generating unit was fired up. In such a case the remuneration for the long-lasting reserve NRTj offered by the particular generating unit is calculated using the following formula:

mRTjRTj N

nCN ⋅= (8.20)

where: CRTj [PLN/month] - Rate for the long-lasting reserve offered by the particular

generating unit, specified in the agreement signed with the particular Generator.

n - Number of days for which the remuneration for the long-lasting reserve is paid.

N - Number of days in the given month.

8.3.6. Settlements concerning minute reserves offered by the hydro power stations

8.3.6.1. The remuneration NRmEW for the minute reserve offered by the particular hydro-unit in the given settlement month is calculated using the following formula:

∑=

⋅⋅=M

iiwwiwwRmEWRmEW tPCN

1,,

(8.21)

where: CRmEW [PLN

/MWh] - Rate applicable to the Y1s signal control operation, specified in the

agreement (calculated on the basis of the increased variable costs that are the case when the hydro-unit is operated in the secondary control system).

Pww,I [MW] - Minute reserve range (band of the secondary control by the Y1s signal) of the hydro-unit in the ith period of its generation operation with the secondary control system switched on, specified in the agreement, confirmed by the acceptance protocol (in hydro-units the secondary control band matches their range of the active power control Pww = PR).

tww,I [h] - Duration of the ith period of the hydro-unit generation operation with the secondary control system switched on to order issued by the TSO.

M [-] - Number of operating cycles (in the given settlement month) of the hydro-unit generation operation with the secondary control system switched on to order issued by the TSO.



Date: 2001-07-19 of 68

8.3.7. Settlements concerning hourly reserves offered by the hydro power stations

8.3.7.1. The remuneration NRgEW for the hourly reserve offered by the particular hydro-unit in the given settlement month is calculated using the following formula:

∑=

⋅=mT

hhgEWRgEWRgEW RCN

1)(

(8.22)

where: CRgEW [PLN/MWh] - Rate for the hourly reserve of the hydro power station, offered by

the particular hydro-unit, specified in the agreement (calculated on the basis of the justified fixed costs allocated to the particular hydro-unit).

Tm [h] - Number of hours in the month.

RRgEW(h) [MWh] - Hourly reserve of the hydro power station calculated for the particular hydro-unit in the hth hourly settlement period,

where the reserve accepted during the standstill in availability or operation of the particular hydro-unit is specified by the following relationship:

Tt

PR ghdysphRgew ⋅⋅=

60)()( (8.23)

where: Pdysp(h) [MW] - Available capacity of the hydro-unit operated as a generator,

accepted in the hth hour.


T [h] - Settlement interval (T = 1 h).

tg [min] - Period of the standstill in availability or operation of the hydro-unit in the hth hourly settlement interval when its generator availability was accepted.

8.3.8. Settlements concerning overloaded operation of the particular generating unit of the condensing thermal power plant

8.3.8.1. The remuneration NP for the overloaded operation of the particular generating unit of condensing thermal power plant in the given settlement month is calculated using the following formula:

iP

m

iiPPP tPCN ,

1, ⋅∆⋅= ∑

=

(8.24)



Date: 2001-07-19 of 68

where: ∆PP,i [MW] - Disparity between the installed capacity and actual load of the

generating unit in the ith period of the ordered overload.

CP [PLN/MWh] - Rate applicable to the overloaded operation of the generating unit, specified in the ancillary services agreement.

tP,i [h] - Duration of the ith period of the ordered overload.

M - Number of the overloaded operation periods in the particular month.

8.3.9. Settlements concerning underloaded operation of particular generating unit of the condensing thermal power plant

8.3.9.1. The remuneration NP for the underloaded operation of the particular generating unit of condensing thermal power plant in the given settlement month is calculated using the following formula:

jZ

n

jjZZZ tPCN ,

1, ⋅∆⋅= ∑

=

(8.25)

where:

CZ [PLN/MWh] - Rate applicable to the underloaded operation of the generating unit, specified in the ancillary services agreement.

∆PZ,i [MW] - Disparity between the technical minimum and actual load of the generating unit in the jth period of the ordered underload.

tZ,j [h] - Duration of the jth period of the ordered underload.

N - Number of the underloaded operation periods in the particular month.

8.3.10. Settlements concerning condensing operation of the particular generating unit of the combined heat and power plant

8.3.10.1. The remuneration NEC for the condensing operation of the particular generating unit of the combined heat and power plant in the given settlement month is calculated using the following formula:

≤

>⋅∆⋅−= ∑∑

=∈

gdy CROC

CCgdy ROtPCROCN

hkEC

p

kkh EC hkkECkEChkEC

EC

0

)(1

,, (8.26)

where:



Date: 2001-07-19 of 68

CEC [PLN/MWh] - Rate for operation of the CHP in the ordered condensing system, specified in the agreement.

CROhk [PLN/MWh] - Purchase price (in effect in the Balancing Market) of the additionally generated energy in the hth hourly settlement interval of the kth condensing operation period of the CHP.

∆PEC,k [MW] - Increase of the power of the CHP generating unit in its operation during the kth period of the ordered condensing.

tEC,k [h] - Duration of the kth operation period of the generating unit in the ordered condensing system, combined with the power increase ∆PEC,k,

p [-] - Number of the condensing operation periods of the CHP generating unit, as ordered by Transmission System Operator in the given month.

8.3.11. Settlements concerning automatic voltage control (ARNE)

8.3.11.1. The remuneration for the voltage and reactive power control (ARNE) NA of the particular generating unit in the given settlement month is calculated using the following formula:

AAA tCN ⋅= (8.27)

where:

CA [PLN/h] - Rate for operation of the ARNE control system at the power plant, specified in the ancillary services agreement.

tA [h] - Operating time of the particular generating unit with ARNE system switched on, in the given month.

8.3.12. Settlements concerning compensatory operation of hydro-units

8.3.12.1. The remuneration for the compensator operation Nk of the particular hydro-unit in the given settlement month is calculated using the following formula:

N C tK k k= ⋅ (8.28)

where:

Ck [PLN/h] - Rate for the compensatory operation of the hydro-unit, specified in the ancillary services agreement,

tk [h] - Operating time of the hydro-unit in compensation, in the given month.



Date: 2001-07-19 of 68

8.3.13. Settlements concerning self-startup ability of the power plant

8.3.13.1. The remuneration for the power plant ability to self-startup, Nb, in the given settlement month is calculated using the following formula:

N C kb b d= ⋅ (8.29)

where:

Cb [PLN/month] - Rate for the ability to self-startup of the particular power plant, specified in the ancillary services agreement,

kd - Self-startup availability factor of the particular power plant.

where:

m

dpd T

tk =

(8.30)

where: tdp [h] - Self-startup availability time of the particular power plant during

particular month (it is a period of time when at least one generating unit of the particular power plant (able to self-startup) remains in operation or in a standstill as an available reserve).

Tm [h] - Number of hours in the given month.

8.3.14. Settlements concerning isolated operation ability of the generating unit

8.3.14.1. The remuneration concerning ability of the generating unit to an isolated operation, NPW, in the given settlement month is calculated using the following formula:

dpPWPW kCN ⋅= (8.31)

where:

CPW [PLN/month] - Rate for the ability of the generating unit to isolated operation, specified in the ancillary services agreement.

kdp - Operating time factor of the generating unit. where:

m

jwdp T

tk =

(8.32)

where: tjw [h] - Time of operation of the generating unit in the given month.

Tm [h] - Number of hours in the given month.



Date: 2001-07-19 of 68

8.3.14.2. With hydro-units the acceptance of the dues for their ability to isolated operation is conditioned on their ability to self-startup.

8.4. Invoicing and financial flows concerning rendering of the ancillary services

8.4.1. The settlements that concern rendering of the ancillary services are carried out monthly.

8.4.2. The financial settlements between the TSO and the generators are carried out based on the VAT invoices issued by generators.

8.4.3. The generator issues its invoice for rendering of the ancillary services based on the report prepared by the TSO and agreed with the generator, specifying the parameters of the individual services and the dues for their rendering.

8.4.4. An agreement of the partial reports takes place at decade intervals or the shorter ones while the report that is discussed under para. 8.4.3. is agreed within 5 workdays after lapse of the calendar month.

8.4.5. The TSO will pay the dues to the generator for the received services as a one-time event concerning all the calendar month and all the generating units, acting to that end within 14 days of the invoicing, unless the ancillary services agreement stipulates otherwise.



Date: 2001-07-19 of 68

9. DEFINITIONS, DESIGNATIONS AND ABBREVIATIONS USED IN THE RULES OF ANCILLARY SERVICES

9.1. Definitions

Automatic load frequency control (ARCM)

- Automatic control system found in the connected power systems, taking into account at the same time the criteria that provide for maintenance of the power exchange balance and the frequency according to the specific algorithm.

Automatic voltage control system (ARNE)

- Voltage control system at the generation node.

System disturbance - An event that results in a loss of synchronism by such a part of the PPS that generates or receives energy amounting to at least 5% of the total ongoing generation.

Disturbance duration - Period of time from the moment when a disturbance appears till the moment when it is cleared, as announced by the Transmission System Operator.

Negotiated price - Price in effect for the generating unit when operation of said generating unit is enforced by the system constraints.

Substitute prices - Applied from the moment when market operation is suspended till the moment when the suspension is called off (to settle all the electricity sale contracts); the prices are applied to all the energy flowing through the transmission grid, generated or consumed when the market operation is suspended. The substitute prices for the particular Balancing Market Participant are also applied during periods of improper flow of the Balancing Bids and/or settlement data.

Declared energy supply volume (ED)

- Determined for each individual generating unit according to the trade transactions reported and accepted for realization in day n.

DIRE - Engineer on duty at the power plant. Settlement day - Period from 0:00 hrs. to 24:00 hrs., each day. Positive range of secondary control

- A part of the secondary power control range, from the set point prior to disturbance to the maximum value of the secondary control band.

Must-run generation - Generation of energy enforced by the quality and operating reliability of the PSE; this concerns in the first place the generating units generation of which is enforced by the technical constrains found in the power system or by the necessary securing of the required system reliability.

Scheduling Unit (JG) - The main object of the Balancing Market (RB), defined by the set of the balancing market delivery points (MB) that require a



Date: 2001-07-19 of 68

joint determination, for use by the balancing market, of the following trade data:

1. contract position; 2. volumes of delivered energy; 3. deviations from the contract position; 4. dues charged for deviations from the contract position.

Generating unit (JW) - A set of equipment belonging to the electric utility, designed for generation of energy and described by the technical and trade data. The generating unit includes also the generator transformers and lines to the switches installed in the grid switching stations of a bus-bar system

Centrally Dispatched Generating Unit (JWCD)

- Generating unit that is dispatched by the transmission system operator.

Hydro-unit - Generating unit of a hydro power station; KOE - Electric facilities configuration system that constitute a

database of TSO, which includes technical data of generating units

Static compensator - A set of power capacitors and shunt reactors with control systems that allows to make changes in the amount and type of delivered reactive power, designed to voltage control within the power network.

Synchronous compensator

- A synchronous machine that works without load of active power designed to produce or consume inductive reactive power.

Polish Power System (PPS)

- The power system within the Polish territory.

Balancing market delivery point (MB)

- This is an agreed point within the network covered by the balancing market operation area, where the settlement of the energy flow between the scheduling units and the network takes place. The MB can be defined as the physical or virtual point.

Base capacity / base load - Set point of the generating unit fixed through the dispatch order or through operation of the control system based on the valid optimization criterion.

Available capacity (Pdysp) - This is the maximum capacity of the given generating unit accepted in the hour h.

Minimum operating capacity / operating minimum

- Minimum capacity of the generating unit that brings about a collapse of its efficiency characteristics.

Minimum technical capacity / technical minimum

- Minimum capacity of the generating unit that facilitates permanent operation of the thermal power plant generating unit using the basic fuel. At hydro power stations this is the minimum admissible capacity of the hydro-unit stable operation.



Date: 2001-07-19 of 68

Installed capacity (Pos) - The highest long-lasting capacity of the generating unit or generator, confirmed by tests, delivered in the rated operating conditions, maintained: a) by the thermal generator for an uninterrupted period of at

least 15 hours; b) by the run-of-river hydro generator for an uninterrupted

period of at least 5 hours; c) by the pumped-storage generator for an uninterrupted

period that depends on capacity of the top reservoir. Power Station Common Auxiliaries Capacity

- Power consumed by set of drivers and electric equipment that are needed for power plant common needs and partly for needs of given individual generating units.

Auxiliaries Capacity (PPW)

- Power consumed by the equipment and installations that are necessary in the energy generation process by generating unit.

Peak power - The highest level of the electric capacity that is generated, transmitted or collected by the equipment, installations or networks in the given period of time.

Output power - Instantaneous power at the terminals of the generating unit or the sum of the instantaneous capacities of the generating units operated by the generator.

Nominal (gross) capacity - Rated capacity of generating unit or sum of rated capacities of generating units of a generator.

Rated capacity (Pn) - The highest long-lasting capacity that can be generated, transmitted or delivered by the given power equipment, defined by the manufacturer.

Rated (nominal) Voltage - Voltage level planned by the manufacturer in reference to operation of the particular equipment.

Balancing bid - bid presented by the specific balancing market participant to the transmission system operator in reference to the balancing market, presenting the precisely defined trade and technical data

Network constraints - Maximum admissible and minimum necessary generation of the power in the particular node or in the particular area, or the maximum admissible transmission of power through the given network section, including that concerning the power exchange with the foreign countries, taking into account the on-going operating conditions found in the PPS

Secondary control band - Area of setting the power variation at the generating units within secondary control, facilitating automatic operation of the secondary regulator in both directions from the current set point.

Dispatch Order - Order issued by the dispatcher, concerning performance of the specific operations in the given electric facility.

Isolated operation - Independent but stable operation of the generating unit that in some extraordinary circumstances is not receiving the power



Date: 2001-07-19 of 68

supply from the PPS but remains able to supply its own auxiliaries and the common power plant ones.

Islanding - Independent operation of a part of the PPS that is isolated after its emergency disconnection from the rest of the system, having at least one generating unit in operation while said generating unit is able to offer power supply to customers and other generating units.

Power Station Common Auxiliaries

- A set of drivers and electric equipment that are needed for power plant common needs and partly for needs of given individual generating units

Frequency Control - Control taking place in the power system, meant to maintain the stable value of frequency or reduce the deviation of the synchronous time from the astronomic one down to the limits allowed by the IRiESP. The synchronous time ts is defined by

the following formula: ∫= dttff

to

s )(1 , where f0 = 50 Hz.

Primary Control - Power control of the generating unit, done using an individual rotational speed governor, according to the grid frequency and depending on the governor setting.

Secondary Control - Load and frequency control in the power system carried out through the coordinated use of the individual governors of the selected generating units by the automatic load and frequency control system (ARCM).

Ancillary Services - Services provided by the entities to benefit of the transmission system operator, required in context of the proper operation of the Polish power system, facilitating maintenance of the specified reliability and qualitative parameters of the energy supply.

Central Controler - Central unit of the automatic load and frequency control system (ARCM).

Registration of the Daily Co-ordination Schedule (RPKD)

- Document that presents a quantitative settlement of the ancillary services. Drawn according to the data registered by the Dispatch Support System and the metering ones. The input data of the RPKD include all the pieces of information required in settlement of the energy generated in realization of the reported contract (realized corrected contract position) as well as the energy generated resulting from operation in primary and secondary control during the trade day.

Hourly reserve (Rg) - Mean hourly controlled power of the thermal power plant generating unit in operation, available in up to 30 minutes, scheduled for the particular generating unit in PKD, meant to restore the dispatched resources of the second and minute reserves with the varying operating circumstances found in



Date: 2001-07-19 of 68

the PPS. Hourly reserve of hydro power station (RgEW)

- Mean hourly available capacity of the hydro-unit in generator operation or in dispatched standstill scheduled in PKD

Minute reserve (Rm) - Controlled power of the thermal power plant generating unit, activated by the secondary control system using the Y1(i) signal, available in up to 15 minutes.

Minute reserve of hydro power station (RmEW)

- Controlled power of the hydro-unit activated by the secondary control system using the Y1s signal equal to secondary control band of that hydro-unit.

Power Reserve - Ability of the generating units to start generation and deliver energy to the grid, that is not utilized in the given moment.

Restoration reserve (RO) - Net available capacity of thermal power plant generating unit that is disconnected from the network and remains idle, available in no longer than 8 hours, or the remaining hourly controlled capacity of the thermal power plant generating unit in operation, equal to the difference between the net available capacity of said unit and the sum of the load and the second, minute and hourly reserves.

Second reserve (Rs) - Positive range of the power for primary control available at the given generating unit, available in up to 30 second.

Balancing Market - A part of market, where the transmission system operator proceeds with transactions to balance production of energy with actual demand

Actual volume of energy deliveries (ER)

- Determined for each individual scheduling unit according to meterings of the energy flows in delivery points;

Self start-up - Independent start of generating unit without supply from power system

Normal Network Operating Condition of the Power System

- Operating conditions of the power system where the values of the system parameters remain within the admissible limits.

Droop of Generating Unit Control

- Ratio of a relative change of the frequency to its matching relative change of generating power with the fixed setting of the generating unit regulator.

Droop of Voltage Control - Ratio of a relative change of voltage to relative change of reactive power in given node within power network in a steady state

Synchronization - Operation that consists in connection of the generating unit to the power system or connection of different power systems after their frequencies, phases and voltages are equalized to reduce the disparity of the vectors of connected voltages to a value close to zero.

Metering System - Set of equipment, installations and programs that facilitate automatic collection and processing of the metering data.

Telemechanics System - Set of equipment meant to facilitate collection and remote transmission of information in the power system, covering



Date: 2001-07-19 of 68

telemetry (transmission of measurements) telesignaling (transmission of discrete signals), telecontrol (transmission of orders) or other special information.

Generator transformer - Transformer that is supplied directly from generating unit and that increases the voltage to the power network level.

UCTE - Union of Electric Energy Transmission Co-ordination that organizes system operators of Western and Central Europe whose systems operate synchronously.

Metering equipment - Meters and other settlement metering equipment items, and also their interconnection circuits, designed for direct or indirect use in the settlement process.

Ancillary Services - Services required for the proper operation of the power system, facilitating maintenance of the specified reliability and qualitative parameters of the energy supply, provided by the entities to the Transmission System Operator.

Technical conditions - Technical parameters and operational constraints of generating units established in the ancillary services agreement.

Circular Graph of Generating Unit

- Graph that presents the theoretically admissible operation range of the generating unit – useful in particular when the reactive power is controlled at the generating unit

Generator - Electric utility that proceeds with business that consists in generation of energy

Pumped-storage generator

- Generator that uses the top and bottom water reservoir for a cyclic pumping of water and generation of energy first of all during peak hours of the power demand

Operational event - any change of: a) operating status of equipment; b) connection system; c) adjustment settings; d) control settings.

Ability of isolated operation

- Generating unit ability to maintain stable operation within isolated network with the supply of auxiliaries – in case of disconnecting from PPS, and to provide frequency control during islanding – in case of PPS restoration after system disturbance.



Date: 2001-07-19 of 68

9.2. List of abbreviations and designations

ARCM Automatic Load Frequency Control ARNE Automatic Voltage Control System at power plant BPKD Current Daily Co-ordination Schedule BPP Unit Load Set-Point BPPmax The maximum admissible value of the changes of the Unit Load Set-Point BPPmin The minimum admissible value of the changes of the Unit Load Set-Point CRK Corrected contract position settlement price CN Negotiated price CRO Imbalance settlement price CZ Substitute price EC Combined heat and power plant EK Thermal condensing plant IRiESP Instruction of Transmission System Operation and Maintenance JG Scheduling Unit JW Generating Unit KOE Power Objects Configuration System MB Balancing market delivery point OSP Transmission System Operator (also TSO) ∆PEC Increase of the power of the CHP generating unit in its condensing operation ±∆P(∆f) Change of primary controlled power ±∆P(∆f) Positive range of the power for primary control; second reserve amount ±∆PY1 Change of the secondary controlled power of the thermal Generating Unit

operated by Y1 signal, second reserve amount activated by primary control ±∆PY1(i) Positive range of the power for secondary control of the thermal Generating

Unit operated by Y1 signal; minute reserve amount activated by secondary control

∆PY1S Band (= range) of secondary control of hydro-unit activated by Y1s signal PKD Daily Co-ordination Schedule PKM Monthly Co-ordination Schedule PKR Yearly Co-ordination Schedule Pdysp Available capacity of a generating unit Pmax,P Maximum capacity in overloading of a generating unit Pmin tech Minimum technical capacity/ technical minimum of a generating unit Pmax,Z Minimum capacity in underloading of a generating unit Pn Rated capacity of a generating unit Pos Installed capacity of a generating unit PMAX(h) Maximum capacity of the given generating unit submitted in trade bid PMAX(h) Minimum capacity of the given generating unit submitted in trade bid PPS Polish Power System (also KSE) PRm Lower level of control power band of generating unit PRM Upper level of control power band of generating unit RB Balancing Market RRUS Ancillary services



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RG Hourly reserve RgEW Hourly reserve of hydro power station RM Minute reserve RmEW Minute reserve of hydro power station RO Restoration reserve RS Second reserve RT Long-lasting reserve RW Spinning reserve RPKD Registration of the Daily Co-ordination Schedule WPKD Preliminary Daily Co-ordination Schedule

Appendix No. 1

1

ANCILLARY SERVICES BID OF THERMAL POWER STATION

I. Basic identification data

Power station name Bid submission date Name and surname / telephone and fax number of the person authorized to proceed with on-going contacts

II. Technical characteristics for offered ancillary control services and their rates

Designation code of generating unit: Installed capacity (Pos) [MW] Minimum technical capacity (Pmin,t) [MW]

III. List of offered services

Name of service Y/N

1. Second reserve

2. Minute reserve

3. Spinning reserve

4. Restoration reserve

5. Long-lasting reserve

6. Underloading

7. Overloading

8. Automatic Voltage Control System (ARNE)

9. Self-startup ability

10. Ability of isolated operation

Appendix No. 1

2

1. Power reserves 1.1. Second reserve 1) Value of second reserve (positive range of primary control):

Pp+ = ...................MW; 2) Ability to operate in primary control without secondary control

YES NO . 3) Payment rate – second reserve:

a) CRSG = .............................. PLN/MWh. b) CRSW = .............................. PLN/MWh.

1.2. Minute reserve 1) Value of minute reserve (positive Y1 secondary control range):

Pw+ = ...................MW 2) Ability to operate in secondary control without primary control

YES NO . 3) Payment rate – minute reserve: a) CRMG = .............................. PLN/MWh. b) CRMW = .............................. PLN/MWh. 1.3. Spinning reserve 1) Payment rate – spinning reserve:

a) CRWG = .............................. PLN/MWh. b) CRWW = .............................. PLN/MWh

Month Spinning reserve [MW]

July

August

September October

November

December January February March April May June

Appendix No. 1

3

1.4. Restoration reserve 1) Payment rate – restoration reserve:

a) CROG = .............................. PLN/MWh. b) CROW = .............................. PLN/MWh

Month Reconstruction reserve [MW]

July

August

September

October

November

December

January

February

March

April

May

June 1.5. Long - lasting reserve 1.5.1. Payment rate – lasting reserve:

Price CRT PLN/MWmonth)

RT [MW] TP [mc] TR [mc]

TP – time of standstill in durable reserve TR – time from TSO order till startup

Appendix No. 1

4

2. Underloading (below minimum technical capacity)

2.1. Technical characteristics • Minimum load after underloading: .............. MW • Admissible time of continuous underloading in the 24-hour cycle:

.............. h/day • Admissible time of continuous underloading in the yearly cycle:

.............. h/year • Ability of underloading using the basic fuel only:

YES NO . 2.2. Payment rate – underloading

CZ = .............. PLN/MWh.

3. Overloading (above installed capacity)

3.1. Technical characteristics • Maximum capacity in overloading (Pmax,P): ........... MW; • Admissible time of continuous overloading in the 24-hour cycle:

...............h/day • Admissible time of continuous overloading in the yearly cycle:

...............h/year Ability of overloading using the basic fuel only: YES NO .

3.2. Payment rate – overloading:

CP = .............. PLN/MWh.

Appendix No. 1

5

4. Automatic voltage control system (ARNE) 4.1. Technical characteristics

Lagging reactive power control range: Q = .......... MVAr. Leading reactive power control range: Q = .......... MVAr. xxx

4.2. Payment rate – automatic voltage control system operation: CA = ..................... PLN/h

5. Consent to bid publishing I agree to publishing of this offer as a source of information for all bidders.

(YES NO ) I acknowledge hereby the correctness of data presented in this bid.

.......................................

Appendix No. 2

6

ANCILLARY SERVICES BID OF HYDRO POWER STATION

I. Basic identification data

Power station name Bid submission date Name and surname / telephone and fax number of the person authorized to proceed with on-going contacts

II. Technical characteristics for offered ancillary control services and their

rates

Code designation of generating unit:

Installed capacity – average head (Pos)

[MW]

Minimum operating capacity (Pmin,e)

[MW]

Minimum technical capacity (Pmin,t)

[MW]

Upper voltage of unit transformer

[kV]

III. List of offered services

Name of service Y/N

1. Minute reserve of hydro power station

2. Hourly reserve of hydro power station

3. Intervention reserve of hydro power station *)

4. Voltage and reactive power control (ARNE)

5. Compensator operation 6. Self-startup ability 7. Ability to control frequency in isolated operation *) – applies only to power plants that do not render the hourly reserve services EW

Appendix No. 2

7

1. Minute reserve of hydro power stations 1.1. Range (band) of secondary control using Y1s: Pww = .................... MW 1.2. Payment rate: CrmEW =................ PLN/MWh. 2. Hourly reserve and intervention reserve of hydro power stations 2.1. Characteristics of access to power reserve 1) generating unit operating condition switch times:

Initial condition Target condition Operating condition switch time [min; sec]

Standstill Generatingr operation Standstill Pumping operation Generating operation Standstill Pumping operation Standstill Compensation in generating direction

Generating operation

Compensation in pumping direction

Pumping operation

Standstill Compensation in generator direction

Compensation in generator direction

Standstill

Standstill Compensation in pump direction

Compensation in pump direction

Standstill

Pumping operation Compensation in pump direction

Generating operation Compensation in generator direction

Generating operation Pumping operation Pumping operation Generating operation 2) Installed capacity Pos (in generating operation) and consumed power Ppomp (in

pumping operation) depending on water level in the top reservoir (HZG): [characteristic presented in a form of table or formula]

3) Ramping rate of generating unit: • maximum acceptable ramping rate = ................... MW/min • maximum ramping rate within power control band, with the secondary control ON:

.................. MW/min.

Appendix No. 2

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2.2. Offered hourly reserve and intervention reserve operation of the hydro power stations

Month Hourly reserve of hydro

power station [MWh]

Intervention reserve of hydro power station

[MWh] January - February -

March - April - May June July

August September

October November December

*) – either hourly reserve or intervention reserve of hydro power station can be contracted

2.3. Payment rates 1) Payment rate – hourly reserve of hydro power station:

CrgEW =.......... PLN/MWh 2) Payment rate – intervention reserve of hydro power station:

CriEW =.......... PLN/MWh.

Appendix No. 2

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3. Automatic voltage control system (ARNE) 3.1. Technical characteristics

Reactive power control range (Q):

Reactive power Operating mode

Inductive [MVAr] Capacitive [MVAr] Compensator Generating Pumping 3.2. Payment rate – automatic voltage control system operation:

CA = ................... PLN/h

4. Compensatory operation – payment rate: Ck = ..................... PLN/h. 5. Self-startup ability 5.1. Time from voltage decay to voltage restoration on unit circuit breaker :

................... min

5.2. Payment rate: Cb = ................... PLN/month.

6. Ability of isolated operation 6.1. Frequency control range: .................... Hz 6.2. Payment rate: CPW = .................. PLN/MW/month.

Ancillary Services Requirements in Poland

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