Confidential 1
NWE/PCR Update
AESAG Meeting1 February 2012
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PCR PXs - common solution proposal• The objective is twofold:
– To deliver NWE for the end of 2012 (target date);– To secure the 2014 roadmap.
• The PCR PXs have agreed on the following solution:– Joint development of PMB (PCR Matcher/Broker) for the launch of NWE
target 2012;– Parallel development of PCS (current version of PCS upgraded with
Nordic requirements) as possible solution for the launch of NWE target 2012 until sufficiently clear whether needed or not.
• No later than May, it will be decided which system will be used for the NWE launch.
• In case PCS is used at the start of NWE, a second step will be needed to replace PCS by the PMB.
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Development activities
• Two blocks of development activities are needed to follow the parallel development. – Upgrade of PCS:• PCS remains centralised;• NWE requirements are supported;
– Implementation of PMB :• Decentralised PCR solution;• NWE /PCR requirements are supported;• Joint design/analysis phase involving all PXs during
February
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PX Technical PlanningFeb 201
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Mar 201
2
Apr 201
2
May 201
2
Jun 201
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Jul 201
2
Aug 201
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Sep 201
2
Oct 201
2
Nov 201
2
Dec 201
2
Q1 2013
Q2 2013
Design phase
Development PMB // PCS
Test preparation
Algo Sys. test
Integration & Procedural Tests **
PXs readinessDec 2012Procedures **
Contingency
* Pending planning validation of PX local system provider** Requires coordination with TSOs planning
+ In case the Implementation of PCS in NWE is decided due to delays in PMB development
PMB // PCS System Tests
Algorithm industrialisation
PX local systems adaptations *
PX local systemssystem Tests
PXs integr. tests
Market Validation
Algo interface frozen
Algo fully industrialised
Algo requirements & specs frozen
Go live system selection
Finalise Development PMB+
Tests PMB+
PXs ReadinessJun 2013
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NWE PX Budget
Confidential
PCR Common Costs 60% of PCR common costs (design and implementation)
2,430,000 €
60% PMB development 300,000 €NWE share of PCR Common Costs** 2,730,000 €
NWE Design phase (November 2011-February 2012)*
Local cost EPEX Spot 140,000 €
Local cost NPS 250,000 €
Local cost APX-ENDEX 190,000 €
Total Design Phase 580,000 €
* Cost of this phase are estimated and need to be evaluated at the end of the period** Remaining share (40%) paid by other PCR parties*** Open issue whether a PCR Common Cost
IT systems PMB Integration and support 1st year 200,000 €PCS*** 200,000 €IT (hosting, hardware, MPLS…) 150,000 €Adaptation Trading Systems 350,000 €Shipping Solution 150,000 €
Project staff and logistics
Project members NWE (15 FTE, 11 months) 2,970,000 €
Travel costs 156,000 €Contracts
Contracts adaptation 150,000 €Contingency
Staff contingency (15 FTE, 3 months) 810,000 €IT contingency (15%) 204,000 €
Total Implementation phase 5,340,000 €
Total cost NWE / PMB 8,650,000 €
Project members for NWE implementation of PMB, contract, travel and additional work 2,200,000 €
Total cost NWE / PCS + PMB 10,850,000 €
Step 2 - in case of sequential approach
NWE Implementation phase
PCR System Choice Update• At November AESAG, PXs described a parallel approach being taken to procure the
PCR matcher/broker (PMB) system– OMIE/GME/APX-ENDEX/Belpex to undertake a tender process with 5 preselected suppliers– EPEX/NPS to request quote for modification of existing system used in CWE
• Tender process completed on time: 3 high quality proposals received (9 Jan), one recommended (24 Jan)
• PXs informed NWE TSOs that they would prefer to select a single PMB system provider
• Exchange of EPEX/NPS proposal and the 3 shortlisted proposals from the tendering process; recommendation by APX/BPX/OMIE/GME
• In order not to delay the NWE implementation by end of 2012– APX-ENDEX/Belpex, OMIE and GME will proceed with selected service provider to start the analysis
phase (which we need anyway, no obligation for development yet) starting immediately. EPEX/NPS will participate in analysis phase
– EPEX/NPS will proceed with parallel analysis phase for a solution based on the existing system used in CWE with minimal changes to be triggered in May if needed. APX-ENDEX/Belpex will participate too
25/11/2011 6
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Next stepsTo start the NWE project in a proper way and to comply with the planning
presented, the following steps (including some PCR steps) have to be tackled:
1. Design of pre-coupling (ATC handling) and post-coupling (Shipping agent mechanism) NWE TSOs;
2. Clarification of the specification on Nordic flows calculation (for the algorithm) by end of January and Nordic functionalities for PMB//PCS during February PXs;
3. Clarification and agreement on fallback procedures Joint;4. Finalise PMB provider selection PXs;5. Finalisation of the PCR agreements (including governance and other terms) PXs;6. Interim agreement if needed (including governance and other terms for use the
system in the interim) PXs;7.Finalisation of the NWE APCA and the cost recovery mechanism Joint NWE;8.Start the NWE project organisation (i.e. appoint joint PMO) Joint NWE.
Heavy workload...
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Back-up slides
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HLFA – PMB (only NWE PXs shown for simplicity)
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HLFA - PCS
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