Stakeholder Workshop on

Standard Product for Balancing Capacity

PT SPBC

ENTSO-E, 06.06.2019

Abbreviations

aFRR Frequency restoration reserve with automatic activation

BC Balancing Capacity

BSP Balancing Service Provider

CZC Cross Zonal Capacity

EBGL Guideline on Electricity Balancing

mFRR Frequency restoration reserve with manual activation

SPBC Standard Product for Balancing Capacity

SPBE Standard Product for Balancing Energy

PT SPBC Project Team Standard Product for Balancing Capacity

RR Replacement Reserves

SHW Stakeholder Workshop

TSO Transmission System Operator

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Objectives of the workshop

1. Prepare stakeholders to provide feedback on standard balancing capacity products for public consultation

2. Build a common understanding of the:

a. Legal framework: EBGL requirements

b. General introduction to:

• Difference between Balancing Energy and Balancing Capacity

• Usage of Standard Balancing Capacity Product

c. SPBC Proposal

Agenda

1. Introduction

2. Proposal of SPBC

3. Timeline

4. Conclusion and open discussion

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Overview of EB GL Articles

Article 25

Requirements for standard products

2. By two years after entry into force of this Regulation, all TSOs shall develop a proposal for a list of standardproducts for balancing capacity for frequency restoration reserves and replacement reserves.

5. The list of standard products for balancing energy and balancing capacity shall set out at least thefollowing variable characteristics of a standard product to be determined by the balancing serviceproviders during the prequalification or when submitting the standard product bid:

a) price of the bid;

b) divisibility;

c) location;

d) minimum duration between the end of deactivation period and the following activation.

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PT SPBC and deliverables

Project Team Standard Product for Balancing Standard Product Balancing Capacity (PT SPBC) is responsible for the allTSOs proposal of Art. 25(5) - a list of standard products of balancing capacity. Deliverables of the PT SPBC are:

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Public consultation (15th of May until 31st of July)

Stakeholder workshop (6th of June)

Consultation Report (Sept-Oct)

SPBC Proposal + explanatory document by 18thDec

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Usage of standard product for balancing capacity

EB GL article 19, 20 and 21 states that all TSOs shall develop a proposal for the implementation framework for European platforms for the exchange of balancing energy from:

• replacement reserves

• frequency restoration reserves with manual activation

• frequency restoration reserves with automatic activation

This implies that TSOs will use standard balancing energy products within TERRE, MARI, PICASSO

According to EBGL, standard products of balancing capacity only need to be used if TSOs voluntarily implement balancing capacity cooperation (Article 33.3).

Standard BC

bids to be

exchanged

Possible CZC

allocation

methodology to

be chosen

Co-optimisation

Market-based

Economic efficiency

MANDATORY

VOLUNTARY

Example

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Link between BC and BE

Standard Balancing

Capacity Product

Standard Balancing

Energy Product

Specific Balancing

Capacity Product

Standard Balancing

Energy Product

Specific Balancing

Energy Product

Shall

deliver

Local Procurement of

Balancing Capacity

Balancing

Cooperation

May

deliver

SPBC Proposal

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Content of SPBC Proposal

Whereas

Article 1 Subject matter and scope

Article 2 Definitions

Article 3 General Principles

Article 4 Characteristics of Standard Balancing Capacity Product

Article 5 General provision for Standard Balancing Capacity Product Bid

Article 6 Implementation Timeline

Article 7 Publication of the SPBC Proposal

Article 8 Language

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Content of article 4

Article 4 - Characteristics of standard balancing capacity products

(1) All standard balancing capacity products shall have at least the following characteristics:

(a) the balancing capacity validity period;

(b) the direction of the capacity: upward or downward.

(2) Each TSO may also have additional characteristics for standard balancing capacity product to be defined in the terms and conditions, such as:

(a) any restriction on the number of options for the minimum duration between the end of deactivation period and the following activation as defined in accordance with paragraph 2.c of Article 5;

(b) the possibility to define a maximum delivery duration.

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SPBC characteristics – Focus on validity period

Indicative timings

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Content of article 5

Article 5 - General provision for standard balancing capacity product bid

(1) Each standard balancing capacity product bid shall fulfil the following static characteristics:

(a) The standard balancing capacity product bid price shall be submitted in (EUR/MW)/h and has a resolution of 0.01 (EUR/MW)/h;

(b) The price of the bid shall be positive or zero and the payment shall be from TSO to BSP;

(c) The minimum bid quantity and granularity shall be 1 MW;

(d) The maximum bid quantity according to the terms and conditions;

(e) The location shall be at least the smallest of LFC Area or bidding zone in which the providing units and/or providing groups are connected to. Each TSO may require further locational information in its terms and conditions.

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Content of article 5

(2) Each standard balancing capacity product bid to be submitted by the BSPs shall contain at least:

(a) The volume of the bid in MW;

(b) The price of the bid;

(c) The minimum duration between the end of deactivation period and the following activation in accordance with paragraph 2.a of Article 4, if applicable;

(d) The maximum delivery duration in accordance with paragraph 2.b of Article 4, if applicable;

(e) Volume divisibility: divisible with a minimum granularity of 1 MW or indivisible bids;

(f) The location, according to the terms and conditions;

(3) Standard balancing capacity product bid may also have additional characteristics to be defined in the terms and conditions.

(4) In case of a central dispatching model, all characteristics of the standard balancing capacity product bid may be determined by the connecting TSO based on integrated scheduling process bids submitted by BSPs following the rules for converting bids in a central dispatching model into standard balancing capacity product bids pursuant to Article 27 of the EBGL.

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SPBC bid characteristics

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Static characteristics

Minimum quantity 1 MW

Bid granularity 1 MW

Maximum quantity According terms and conditions

Price (EUR/MW)/h

Price resolution 0.01 (EUR/MW)/h

Price value Positive or zero, payment from TSO to BSP

Location

at least the smallest of LFC Area or bidding

zone in which the providing units and/or

providing groups are connected to.

Each TSO may require further locational

information in its terms and conditions.

Variable characteristics, to be defined by BSP

Volume of bid MW

Volume divisibilitydivisible with a minimum granularity of 1 MW

or indivisible bids

Price of bid In (EUR/MW)/h

The minimum duration

between the end of

deactivation period

and the following

activation

According terms and conditions

The maximum delivery

duration

According terms and conditions

The maximum delivery duration which shall be

lower or equal to the balancing capacity validity

period. By default, the maximum delivery duration

be equal to the balancing capacity validity period;

Timeline for SPBC Proposal

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Milestones for SPBC Proposal (all TSOs)

2019

1 2 3 4 5 6 7 8 9 10 11 12

1st stakeholder workshop: SPBC Proposal

Public consultation

Consultation report, final amendments

Submission to NRAs

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Discussion

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Thank you!

Please do not hesitate to contact us in case of further questions!

Contact details:

Convener: Jerom de Haan (jerom.de.haan@tennet.eu)

Presenter: Didier Chim (Didier.Chim@elia.be)

ENTSO-E Secretariat: Kristine Marcina (kristine.marcina@sec.entsoe.eu)

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Back-up slides1. For discussion in WGAS

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SPBE and SPBC

➢ Balancing capacity means a volume of reserve capacity that a balancingservice provider has agreed to hold and in respect to which the balancingservice provider has agreed to submit bids for a corresponding volume ofbalancing energy to the TSO for the duration of the contract;

➢ Balancing energy means energy used by TSOs to perform balancing andprovided by a balancing service provider;

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Link between SPBE and SPBC

SPBC

insurance for TSO to activate RT BE

Auction/price D-1 or W-1 or Y-1

If selected, BSP shall submit

SPBE

Only activated if imbalanceoccurs or for other purposes

Price < h-1

Activation <h-1 >RT

BE bids with at least samevolume