I-SEM Small Wind Information Session. 24 November 2016

Transcription

1 I-SEM Small Wind Information Session 24 November

2 Agenda 1. I-SEM Market Overview 2. I-SEM Registration Overview 3. Market Readiness Update 4. Market Trial Update 5. Systems Overview 6. AOB 2

3 Power market developments in Europe 2010s Markets included in PCR TWh Markets associate members of PCR Markets that could join next as part of an agreed European roadmap 3

4 Road to the I-SEM Work first began in July 2011 to consider options for change Initial work led to consultation in early 2012 SEMC decision paper in February 2013 setting out the criteria for changing the SEM RA led project with external consultants kicked off in September 2013 Project started the development of new SEM High Level Design RA Project team developed options for new trading arrangements Led to publication of High Level Design in

5 The I-SEM High Level Design The I-SEM comprises of: Forwards financial contract markets Forwards financial transmission rights for cross border transactions Firm day-ahead market integrated with EU market coupling Firm intraday market integrated with EU cross-border intraday (XBID) Balancing markets with balancing responsibility A market based capacity remuneration mechanism 5

6 The I-SEM High Level Design Forward Trading Forwards Dayahead Intraday Balancing Imbalance settlement Financial transmission rights for cross border Managed through central EU body Joint Allocation Office (JAO) Financial trading within the I-SEM Potential for centralised platform Consultation decision due from RAs Additional liquidity measures to be addressed No physical forward contracting 6

7 The I-SEM High Level Design - Day-ahead Forwards Dayahead Intraday Balancing Imbalance settlement Day-ahead market is the exclusive route to market for day-ahead physical positions Adopts EU market coupling as central platform Unit based participation (both generation and demand) Some portfolio participation allowed (including Agent of Last Resort) Trialing of day-ahead commercial structures carried out by SEMO with detailed report published earlier this year 7

8 The I-SEM High Level Design Day-ahead Forwards Dayahead Intraday Balancing Imbalance settlement Participants seeking to sell energy in ex-ante markets need to submit offers to NEMO; Participants seeking to buy submit bids; Many different order types available (simple, blocks, complex conditions, etc.) EirGrid/SONI NEMO working with EU partners to see what can be made available for I-SEM Commercial offers anonymised and sent to central EU algorithm where they are cleared Results provided back to NEMO and to Participants For generators, cleared positions represent starting point for the Physical Notifications to the TSOs 8

9 The I-SEM High Level Design Intraday Forwards Dayahead Intraday Balancing Imbalance settlement Envisaged as the market where participants adjust day-ahead positions based on improved forecasts and other technical information Still the exclusive route to market for intraday physical positions ahead of gate closure SEMC decision based on continuous EU solution (XBID) However, XBID project planning to go live around same timeframe as I-SEM Pre-requirements for SEM joining will not have been completed Interim intraday solution required and being developed Same granularity of participation as day-ahead 9

10 The I-SEM High Level Design Intraday Forwards Dayahead Intraday Balancing Interim Intraday Proposals by EirGrid/SONI NEMO: 3 x intraday cross border auctions; Continuous local intraday trading up until one hour before delivery hour; Products for auctions under development; Details being provided through I-SEM BLG meetings Imbalance settlement 10

11 The I-SEM High Level Design ex-ante Trading Forwards Dayahead Intraday Balancing Imbalance settlement All ex-ante trading must be done through a NEMO This involves trading through an exchange and settlement by central counterparty (clearing house / member) NEMOs will be designated by SEM RAs or allowed to offer passport services EirGrid & SONI designated as a NEMO for the I-SEM Details of EirGrid/SONI NEMO offering being presented at I-SEM BLG meetings 11

12 The I-SEM High Level Design Balancing Forwards Dayahead Intraday Balancing Imbalance settlement Day-ahead positions should be the starting point for physical notifications to the TSO Notifications should be technically feasible Commercial offers from participants based on Incremental and Decremental prices (Complex before gate closure and then Inc & Dec) EU approach is for Balancing actions to be only in the last hour In the I-SEM, TSOs will be able to take early actions to secure the system but should be minimised Actions classed as energy and non-energy actions Imbalance price determined from actions taken in real time 12

13 The I-SEM High Level Design Balancing Forwards Dayahead System balancing/scheduling & Dispatch Carried out by the TSOs Based on dispatch in real time Intraday Balancing Imbalance settlement 13

14 The I-SEM High Level Design Balancing Forwards Dayahead Intraday Balancing Imbalance settlement System balancing/scheduling & Dispatch The ex-ante markets match supply and demand but are not designed to meet the technical requirements of a power system The aim of the scheduling and dispatch process is to ensure that, in addition to matching supply and demand, other technical requirements are met For example: Operating reserves Inertia System Non-Synchronous Penetration Rate of Change of Frequency Regional voltage support Regional transmission constraints 14

15 The I-SEM High Level Design Balancing Forwards System balancing/scheduling & Dispatch Dayahead Intraday Balancing Imbalance settlement D-1: Units submit their Physical Notifications 15

16 The I-SEM High Level Design Balancing Forwards System balancing/scheduling & Dispatch Dayahead Intraday Balancing Imbalance settlement 16

17 The I-SEM High Level Level Design Design Balancing Forwards System balancing/scheduling & Dispatch Dayahead Intraday Balancing Imbalance settlement 17

18 The I-SEM High Level Design Imbalance Pricing Forwards Determining the imbalance price Dayahead Intraday Balancing Imbalance settlement 18

19 The I-SEM High Level Design Imbalance Settlement 2014 The I-SEM Forwards Dayahead Intraday Balancing Imbalance settlement Imbalance Settlement implements Balance Responsibility: Participants financially responsible for differences between trade volumes and actual load/generation Imbalance Settlement calculates the quantities and cash flows Balancing Market is mandatory for all above de minimis: Suppliers, generators, assetless, NEMOs, interconnectors If not dispatchable generator, just to calculate imbalances If dispatchable generator, full output range available for balancing services Complexity of settlement driven by: Incentives for balance responsibility Special scenarios and cases, e.g. non-firm, curtailment, undo orders 19

20 NEMO AoLR FORWARDS Differences Between SEM & I-SEM Forwards (OTC) I-SEM I-SEM Financial trading within zone Financial trading within zone Forwards (Within Zone) Physical Transmission Rights SEM - GB Cross-border physical rights I-SEM - GB Cross-border financial rights Financial Transmission Rights (Cross-Border) Ex-Post Energy Market Local day-ahead auction Generator only bids Single local intra-day auction Generator only bids Single ex-post energy market Not applicable (Ex-post perfect hindsight) & NG EU coupled day-ahead auction Supplier & Generator bidding Regional cross border auctions and continuous local* intra-day trading Supplier & Generator bidding I-SEM & NG Last hour balancing market INC & DEC pricing Balance responsibility of participants [ Imbalance = contract + balancing meter ] I-SEM Day-Ahead Intra-Day Balancing & Imbalance Settlement Capacity Settled with Energy Market Reliability Option I-SEM Capacity * Continuous cross border planned for a future date TBC

21 Inputs: How compare market and physical reality? Market World DAM Trade Quantities (qtda) IDM Trade Quantities (qtid) Imbalance Price (PIMB) Curtailment Price (PCURL) Market and Physical Physical Notification (PN) Commercial Offer Data (COD) Technical Offer Data (TOD) Physical World Dispatch Instructions (DIs) Dispatch Quantities (qd) Metered Quantities (QM) Outturn Availability (qavailo) Flags and Tags Frequency 21

22 Energy Settlements: Which do you care about? Term What Who CIMB uγ the Imbalance Component Payment or Charge; All CPREMIUM uγ the Premium Component Payment or Charge; GU, IC CDISCOUNT uγ the Discount Component Payment or Charge; GU, IC CAOOPO u the Offer Price Only Accepted Offer Payment or Charge; GU CABBPO uγ the Bid Price Only Accepted Bid Payment or Charge; GU CCURL uγ the Curtailment Payment or Charge; Wind GU CUNIMB uγ the Uninstructed Imbalance Charge; GU, IC CII uγ the Information Imbalance Charge; GU CFC ub the Fixed Cost Payment or Charge; GU CTEST uγ the Testing Charge; GU, IC CIMP uγ the Imperfections Charge; SU CREV vγ the Residual Error Volume Charge; SU CCA vγ the Currency Adjustment Charge. SU 22

23 The I-SEM Trading & Settlement Code Detailed Design finalised in SEMC decisions in 2015 Trading & Settlement Code and Agreed Procedures for the Balancing Market drafted through Rules Working Group throughout 2015/2016 Draft rules issued for consultation by SEM RAs on 15/11/2018 EirGrid/SONI NEMO to set out detailed market rules through I-SEM BLG process Schedule of work to be published in coming weeks and discussed at next BLG in Dec 2016 Finalised EirGrid/SONI NEMO rules to be issued early

24 What about Payments for Capacity? MW Generation/Interconnector Capacity Margin Expected Load System Load Years 24

25 Reliability Options Generator Paid for capacity ( Reliability Option ) Capacity Market Fund capacity payments for Reliability Options Suppliers (Retailers) Paid for generation Energy Market Pay for consumption Pays difference between energy price and strike price on reliability option capacity Exposed if not generating Administered Scarcity Price 3000/MWh If energy price above strike price 500/MWh Paid difference between energy price and strike price on consumption. Exposed if not enough ROs sold Secondary Trading Stop Loss Limits Reserve Socialisation Fund 25

26 Participation Options Under Capacity Market Code All registered to same participant (could be an intermediary) Capacity Market Unit Capacity Market Unit Capacity Market Unit Capacity Market Unit Aggregated Generator Unit Variable Unit Below De Minimis (10 MW) Unit Variable Unit Below De Minimis (10 MW) Unit Under Trading and Settlement Code 26

27 Participation in Auction Only units (intending to be) registered in Balancing Market (under Trading and Settlement Code) can participate Qualification required to participate in a Capacity Auction Mandatory for Interconnectors and above de minimis (10 MW) dispatchable generators and (existing) DSUs Optional for units below de minimis threshold and proposed DSU A variable unit can seek qualification for 0 MW Could not participate in Capacity Auction but could Secondary Trade Qualified capacity must participate in Capacity Market Auction up to the lesser of the Net De-Rated Capacity and its (de-rated) firm access 27

28 Timelines Capacity Market Auctions Additional Auctions Possible T-4 Auction T-1 Auction Year -4 Capacity Year (12 months long starting at 11 pm 30 th September) Year 0 Year 1 Time Secondary Trade Auctions 28

29 Qualification Unit 1 (Existing Capacity) Unit 2 (Existing Capacity + New Capacity) Unit 3 (New Capacity) Physical Unit Initial Capacity Physical Unit Gross De-Rated Capacity * * * Qualification Capacity Market Unit Gross De-Rated Capacity Capacity Market Unit Net De-Rated Capacity less Awarded Capacity (from prior auctions) This capacity can be offered into capacity auction * De-rating recognises that statistically some capacity will not be available less Awarded Capacity (from prior auctions) 29

30 Installed Wind (MW) Wind Capacity Factor De-Rating Factors for Wind 5600 Installed Wind Forecasts S10 - GCS High 34% Annual Wind Capacity Factors 5100 S1 - GCS Low 32% 30% % 26% 24% 30% 32% 31% 33% 29% 30% 30% % 20% 24% Left graph gives the wind build-out forecasts which coincide with those presented in the Generation Capacity Statement The wind capacity factors for are given on the right For a future year, a number of historic demand scenarios are scaled to the conditions of the year, with matching wind profiles scaled to reflected changes in installed wind capacity De-rating factors reflect the marginal contribution of a unit of a given size and technology in meeting system 8 hour LOLE per year standard. Actual value to be set through RA Decision due in December 30

31 Capacity Market Offers Price ( /MW per year) Auction Price Cap Existing Capacity Price Cap Existing Capacity Process to Apply for a Unit Specific Price Cap New Capacity (Not Satisfying New Capacity Investment Rate Threshold) Lowest price for new capacity must exceed highest price for existing capacity Inflexible Duration:1 Yr New Capacity (Satisfying New Capacity Investment Rate Threshold) Inflexible Duration 10 Yrs Flexible Duration 10 Yrs Inflexible Duration:1 Yr Must be same duration Inflexible Duration:1 Yr 31

32 Capacity Market Auction Clearing Price ( /MW per year) Set by RAs Auction Price Cap Demand Curve Complexities Auction Clearing Price (for capacity year) Locational Security of Supply Lumpiness Offer Step X Inflexible De-Rated Capacity (MW) 32

33 New Capacity Capacity that has not been built / commissioned at Qualification Must provide an implementation plan as part of Qualification If cleared in auction must post a Performance Bond Letter of credit or cash deposit that increases over time Maximum value not determine but might reflect value of capacity for a year Any awarded capacity that is terminated results in a termination fee which equals a pro-rata value of the performance bond Basic rules on payment and termination Only start being paid / secondary trading when 90% of capacity delivered May be terminated for (just) first year of contract if not ready Fully terminated if fail to deliver 50% of capacity within 18 months of first Capacity Year. Any capacity not delivered still terminated 33

34 Secondary Trade Secondary Trade allows those generators / interconnectors with surplus qualified capacity to use it to provide coverage for Reliability Option holders on outage Auction for Product Products and auction times can be set to suit the requirements of the market Product Traded Delivery Period Auction Three Years Out Auction One Years Out Auction One Month Out Auction One Week Out 34

35 Questions? 35

36 Agenda 1. I-SEM Market Overview 2. I-SEM Registration Overview 3. Market Readiness Update 4. Market Trial Update 5. Systems Overview 6. AOB 36

37 NEMO FORWARDS Who to Register with? Forwards (Within Zone) TBC Financial Transmission Rights (Cross-Border) Day-Ahead Intra-Day AoLR I-SEM Registration Team Exchange Clearing House Balancing & Imbalance Settlement I-SEM Registration Team Capacity I-SEM Registration Team 37

38 Key Contacts Market Organisation Contact Name Forwards (Within Zone) Jean-Pierre Miura (Policy Development) Phone: Web: Financial Transmission Rights (Cross-Border) JAO Helpdesk Phone: Web: DAM/IDM Exchange I-SEM Registration Team Claire Breslin Phone: Web: DAM/IDM Clearing House Anke Voigt anke.voigt@ecc.de Phone: Web: AoLR I-SEM Registration Team Claire Breslin I-SEMregistration@sem-o.com Phone: Web: Balancing & Imbalance Settlement I-SEM Registration Team Claire Breslin I-SEMregistration@sem-o.com Phone: Web: Capacity I-SEM Registration Team Claire Breslin I-SEMregistration@sem-o.com Phone: Web: 38

39 Registration Options (Balancing/Capacity) I-SEM similar options to the SEM for Balancing/Capacity Option 11 Option 2 2 Supplier Unit with Wind power Generation netted off (Not visible in Market) BAL/CMC Registered Wind power Generation Unit (Visible in Market) BAL/CMC Party Party Supplier Unit SU1 Wind Power Unit Wind Power Unit GU1 39

40 Registration Options (Balancing/Capacity) Attribute 1 2 <10 MW (De Minimis) Allowed Yes Yes >10MW Allowed No Yes Power Purchase Agreement (PPA) Yes Yes #2 Intermediary/Form of Authority N/A Possibly Needed DAM/IDM Bidding Yes #1 Yes Balancing Bidding No #3 Yes Capacity Market Bidding No Yes #4 AoLR Service No Yes #1 Supplier Unit can bid into DAM/IDM but not the Wind power unit explicitly. #2 In most cases an intermediary agreement will be needed. Only where the Party is the same legal entity as the Wind power unit will this not be needed. #3 Unit still involved in balancing market through imbalance settlement #4 Has the option of active participation in the capacity market but may not be obliged to take part 40

41 Ex-Ante Markets and Balancing Under Option 1 1 BAL & CAP #1 DAM & IDM SU trades in DAM/IDM accounting for wind power generation netted off demand SEMO Party Supplier Unit SU1 Equivalent #2 Equivalent Contracted Quantities for Balancing Settlement by Unit SEMOpx/ECC Company Supplier Unit SU1 Wind Power Unit Wind Power Unit #1 Participation in the Capacity Market is only through being a Supplier as part of Capacity settlement, it is not related to active bidding in the Capacity Auctions. #2 Company the same legal entity as Party, or Company 3 rd Party if agreement in place 41

42 Ex-Ante Markets and Balancing Under Option 2) 2 BAL & CAP #1 DAM & IDM Wind power Generation Unit bids into DAM/IDM (if chooses to participate in Ex-Ante Markets) SEMO Party Equivalent #2 SEMOpx/ECC Company Wind Power Unit GU1 Equivalent Wind Power Unit GU1 Contracted Quantities for Balancing Settlement by Unit #1 Capacity Market participation not compulsory for de minimis or non-dispatchable units (i.e. wind) #2 Company the same legal entity as Party, or Company 3rd Party if agreement in place 42

43 AoLR Service Relevant for DAM/IDM trading only Party must register with both NEMO Exchange and ECC directly Taking financial responsibility for DAM/IDM markets AoLR provides trading & Physical Notification submission service Party registers for AoLR service Party provides default parameters and updates parameters as needed e.g. availability AoLR submits bids using the Party s SEMOpx setup for DAM/IDM Auctions - based on parameters, wind forecasts, etc. 43

44 What is the Transitional Registration Plan? Defines the plan for the transition from the SEM to I-SEM arrangements in terms of the registration process How, When and What is needed to complete registration for I-SEM markets given the start point of SEM participation The Transitional Registration Plan is located here 44

45 Timelines and Key Dates 45

46 Submission Deadlines Deadline Date Market/ Service Submission 31/12/2016 NEMO KYC Registration of Interest 31/01/2017 Balancing BAL Registration Data 28/02/2017 NEMO NEMO Trading Application 28/02/2017 NEMO ECC New Member, Existing Member Doc Deadline (Market Trial) 17/03/2017 Balancing BAL Supporting Info 31/03/2017 Balancing Capacity 31/03/2017 Capacity CMC Unit Application 18/04/2017 AoLR AOLR Application TSC and CMC Framework Agreement Signed (Existing Parties) 30/06/2017 NEMO ECC KYC & New Member Doc Deadline (Go-Live) 31/08/2017 NEMO ECC Existing Member Doc Deadline (Go-Live) 46

47 Fee Determination Process Costs need determination first Rules, Implementation Design, contracts with vendors and service providers, and Operating Model needs finalising Tariffs can then be determined Fees will be subject to approval by RAs Will require public consultation and standard price control processes Likely to be finalised in Summer

48 References Transitional Registration Plan Registration BLG Presentation I-SEM Registration Website For other registration related information 48

49 Next Steps Review the references provided (on previous slide) Register your interest in the Ex-Ante markets by contacting before 31 st Dec 2016 Review Balancing Registration Data issued on 18 th Nov 2016 (if relevant) Attend the balancing Registration Data Information Session on 29 th Nov 2016 (if relevant) Talk to the I-SEM Registration Team if you have any questions or queries

50 Questions? 50

51 Agenda 1. I-SEM Market Overview 2. I-SEM Registration Overview 3. Market Readiness Update 4. Market Trial Update 5. Systems Overview 6. AOB 51

52 Why We Do It The aims of the Market Readiness Assessment process are to: Provide an overall picture of the status of preparations for I-SEM Help in identifying Risks and Issues Inform the Go-live decision making processes 52

53 Wherefrom We Collect Information 53

54 What We Do Information Collection Relies on self-assessment of status from Participants. A status assessed against their own programme plan Participants report on their programme s progress by answering an online survey that is structured by Market Each market is divided into metrics and the metrics into Criteria Each metric comes with Guidelines that are individually formulated for Market Participants, ICOs, MDPs, EirGrid/SONI (5 different roles), and the RAs 54

55 What We Do Information Collection Each question in the survey is divided into two parts. 1 Participants assess the current status of progress towards the achievement of each criterion / milestone in relation to their organisation s I-SEM plan. 2 Participants assess the current status of issues and risks of each criterion / milestone in relation to their organisation s I-SEM plan. 55

56 What We Do Information Collection The respondents report on current status of progress towards the achievement of each criterion / milestone. When doing this, the question that Participants answer is How much of the work is finished on? and they do it by filling in a so called Harvey Ball : Work not started 51-75% of work complete 0-25% of work complete 76-99% of work complete 26-50% of work complete Criterion/milestone achieved no further work is needed 56

57 What We Do Information Collection Participants are also asked to assess the severity of any issues and risks, either current or foreseen relating to the criterion Such issues might include, for example, concerns about the delivery schedule, or concerns about delivering the required functionality No issues/risks The criterion/milestone is at risk (for example, the work is behind schedule) The criterion/milestone will not be met without remedial action Together the work progress and risk and issues constitute the status 57

58 What We Do Information Collection 58

59 What We Do Information Collection 59

60 What We Do Analysis and Reporting For reporting, participant information is aggregated and kept anonymous Reports are published on the SEMO Website and are presented at the PMG as well as the Joint Project Board Overall comment 1-2 lines All Participants Market Participants Interconnector Owners Market Readiness Assessment Report DD-MM-YYYY Comment Readiness Status by Market and Participant Category Overall Readiness Balancing Market & Imbalance Settlement Day Ahead & Intraday Markets Capacity Market 1) FTR Market The RAs have the right to access the raw data Meter Data Providers EirGrid/SONI as System Operator (incl. its role as CM Delivery Body) EirGrid/SONI as Market Operator (incl. NEMO) EirGrid/SONI as AoLR Regulatory Authorities 60

61 Liaison Group Structure Rules Working Group Programme Management Group Business Liaison Group Technical Liaison Group Detailed rules codification Forum to coordinate plans and schedules Business, Functional and Process Readiness Technical Design, System Communications and Readiness Rotating Topic 61

62 Questions? 62

63 Agenda 1. I-SEM Market Overview 2. I-SEM Registration Overview 3. Market Readiness Update 4. Market Trial Update 5. Systems Overview 6. AOB 63

64 Today s Session Summarise proposed strategy for the Market Trial Invite discussion/comment During the presentation and at end Any obvious showstoppers Set out next steps 64

65 Critical Success Factors from Other Markets Based on experience gained from other markets, a successful Market Trial requires: Focus on end-to-end business processes Prioritisation of key risk areas Commitment from all parties to meet defined entry criteria A timescale and schedule which includes sufficient time for rectification of issues and defects Detailed planning and preparation with high-levels of participation and consultation from involved parties A collaborative approach effective open and transparent communications 65

66 Planning and Preparing for the Market Trial September 2016 October Market Trial Strategy Deliverable from TSOs I- SEM Project Market Trial Plan Deliverable from TSOs I- SEM Project Market Trial Preparation Joint activity with participants Led and facilitated by TSOs I- SEM Project Market Trial Execution Joint activity with participants Led and facilitated by TSOs I- SEM Project Documents high level approach and provides basis for the Market Trial Plan Defines the approach and schedule for the Market Trial preparation activities Prepares materials required for execution and establishes processes for managing, tracking and reporting Regular progress reports. Completion Report provided at end of Market Trial 66

67 Objectives Mitigate the operational risks associated with putting I-SEM live Demonstrate the successful end to end operation of the I- SEM central market arrangements in circumstances that are as close to live as is practicable To allow Participants to operate their own systems and processes in an environment that is as close to live as is practicable To allow operational staff to practice the roles they will be carrying out in live operation and to refine their procedures 67

68 Things which are Not Objectives To set expectations, the Market Trial will not be designed to: Prove the I-SEM design Validation of the detailed outcomes of the market rules is not included Test business processes and systems These should be tested before inclusion in trialling Facilitate Drastic Experimentation The aim is that the intended operational design will be set out before trialling starts Some changes/ refinements will occur during trialling 68

69 Context for Market Trial Individual readiness projects ICOs MDPs TSOs I-SEM Project (BM Operator, NEMO, AoLR ) Start of Trial Market Trial co-ordinated by TSOs I-SEM Project End of Trial Systems Design, Develop, Test Business processes People Develop, Validate, Test Train Market Trial Go Live 69

70 Context for Market Trial Decision making process Market readiness reporting 1 st trading day FTR Mock Auctions 1 st FTR Live Auction Live Coordinated Capacity Calculator Live Live CM Mock Auctions 1 st CM Live Auction Live Market Trial Registration for CM/ Market Trial Final transition/cutover Live I-SEM Operations Current arrangements 70

71 Principles Principles that will guide the development and execution of trialling: Operate I-SEM end to end Operate the central market arrangements Provide the operational context for Market Participants to trial their own processes and systems Operate for an extended period as live (that is as close to live as is practicable) Criteria will be set out to describe successful operation As live means in accordance with Agreed Procedures (and equivalents), adjusted as necessary Market Participants are expected, but not obliged, to participate in the Market Trial Criteria will describe expectations for entry to the Trial and for commencement of the Trial Reporting from trialling will feed readiness reporting and the Go-live decision making process 71

72 Principles Business Processes, Systems, Staff in trialling will be tested/prepared before hand The Go live configuration should be trialled But it is recognised that changes will be needed during the trialling period Operational staff from the enduring business should execute the trialling activities The Market Trial will be managed by the TSOs I-SEM Project A Market Trial Agreement will form the legal framework for the Market Trial 72

73 Trialling Scope Forwards Market Market Trial Coordinated Capacity Calculation Live Financial Transmission Rights Mock Auctions Capacity Market Mock Auctions FTR Live CM Live Day Ahead Market Intraday Market Agent of Last Resort Balancing Market Imbalance Settlement 73

74 Trialling Scope: Examples of Possible Restrictions DAM IDM Limited 24X7 operation Availability of cross-border partners Exercising of payment pathways BM Imbalance Settlement Limited 24X7 operation Issuance of dispatch instructions Resettlement timetable 74

75 Market Trial Structure Establishment (2-4 weeks) Set up trialling configuration Make connections Progressively add Market Participants Unscripted (approx. 6 weeks) Pre defined market circumstances Participants choose and execute own actions 1st trading day Start Registration Establishment Go-Live confirmation Scripted Unscripted Cut over End of Trial Registration Set up registration data Aim to also use for live operation Scripted (approx. 6 weeks) Pre defined market scenarios Pre defined Participant actions Progressively increasing complexity Cut over (approx 2-5 weeks) Transfer to live 75

76 Market Trial Scripted Phase Scripted Phase will Last approximately 6 weeks Allow for multiple attempts to successfully execute each Scenario Allow time for recovery from problems Be monitored using defined metrics for each Scenario Success will be defined in terms of expected results for these metrics 76

77 Market Trial Unscripted Phase Comprises an extended period of operation (about 6 weeks) The market circumstances are defined for each trading day Market Participants decide how they wish to act and then trade accordingly Metrics will be defined to monitor key features of market operation Success definition will include extended period of successful operation 77

78 Trialling Data Data used in the market Trial should be consistent across the I-SEM markets The task of producing trialling data for each Trading Day is considerable Data for use in the Market Trial may in principle be From Historical days live from current arrangements Synthesised For the Scripted phase Need to predefine scenarios indicates a mixture of Historical and Synthesised data will be used For the Unscripted Phase The possibility of using live data will be investigated 78

79 Trial Monitoring, Readiness Reporting & Decision Making Entry and commencement decisions Confirm go live date Confirm trial completion Summary criteria and readiness reporting Decision making process Market readiness reporting Status against criteria, trial metrics Trial management and detailed monitoring, reporting Establishment Scripted Unscripted Cut over 79

80 Criteria for Commencement and Completion Criteria for Market Trial Commencement Entry to the Market Trial Market Participants will be asked to confirm their readiness against defined criteria Readiness of the central market arrangements Central bodies will be asked to confirm their readiness against defined criteria Minimum number and type of Market Participants ready to participate Success Criteria for Market Trial Criteria for successful operation of the central market arrangements Criteria for successful participation of Market Participants 80

81 Market Trial Legal Framework Participants will be asked to sign a separate Market Trial Agreement (MTA) Provisions covered will include: Participants to each bear their own costs No liabilities between Participants Use of data in trialling Recognition of TSOs I-SEM Project role in managing trial Recognition of intent to follow market rules and Agreed Procedures with defined adjustments 81

82 Challenges for I-SEM Market Trial Planning I-SEM Challenge Proposed Approach for Market Trial The scope of I-SEM is broad - multiple new markets and processes I-SEM has multiple go-live dates/multiple markets Over 200 entities will participate with differing requirements (size, complexity, level of involvement) Service providers and third parties will have a significant role in I-SEM Prioritise scenarios for Market Trial based on risk and impact Ensure that the Market Trial Calendar focusses on high-priority scenarios Coordinate detailed planning of the Market Trial with Market Transitioning and Cutover planning Adopt a consultative and collaborative approach to Market Trial planning working group Define alternative Market Trial approaches and timescales for different categories of participants Implement multi-faceted communications approach. Engage with third parties at early stage of planning SEM is already in operation Identify resourcing and transitioning constraints in Market Trial planning. 82

83 Next Steps Market Trial Work Group Update the Market Trial Plan Commence Preparation Phase 83

84 Preparation Phase Market Trial Preparation Led by TSOs I-SEM Market Trial Team Scoping & Organisation Survey and classify participants: Markets? Size and complexity? Establish I-SEM Market Trial Team Establish Market Trial Working Group Governance & Decision Making Confirm Entry and Exit Criteria with RAs Define required contents and timing of reports Define Market Trial Registration Process Scenario Preparation Develop detailed Market Scenarios (based on points of interaction between entities not internal processes) Define scenarios to be used by each category of Participants Market Trial Calendar Define detailed Market Execution schedule Define day-by-day scenario execution calendar Separate schedules for different Participant Categories Data Preparation Monitoring & Reporting Approach Communications Legal Framework Identify sources of data to be used for each scenario Arrange provision of data Establish Market Trial Management Tool(s) Define reporting metrics Define reporting approach Develop Participant Guide Participant briefings Establish communications arrangements for Execution Phase (daily communications, help desk etc.) Prepare the Market Trial Agreement Individual Readiness Projects TSOs I-SEM Project (BM operator, NEMO, AoLR etc.), MDPs, ICOs, Market Participants Focus on internal readiness and.. Involvement in Market Trial preparation Preparation for internal trialling (detailed scripts/work instructions) Registration for Market Trial Scheduling resources for Market Trial

85 Questions? 85

86 Agenda 1. I-SEM Market Overview 2. I-SEM Registration Overview 3. Market Readiness Update 4. Market Trial Update 5. Systems Overview 6. AOB 86

87 Systems Overview Contents and Objective This section will cover the access methods, security processes and general system requirements for accessing the I-SEM solution from the perspective of market participants. This represents a high level overview. For detailed information, please consult the relevant ITS volumes as outlined on the final slide of this section System Overview Balancing Market NEMO Day Ahead / Intra Day (ETS) Platform NEMO Intraday Continuous Trading (M7) Platform NEMO Settlement & Clearing (SMSS) Platform Capacity Market Public Website, Customer Management System and JAO A summary of the systems to be deployed as part of the solution, and means of access Overview of the access methods specific to the Balancing Market, client requirements, and changes in approach to authentication between SEM and I-SEM, and summary of two-factor authentication. Client requirements for the Day Ahead / Intra Day ETS Platform, with screenshots Client requirements for the Intraday Continuous Trading (M7) Platform, with screenshots Client requirements for the Settlement & Clearing (SMSS) Platform, with screenshots Client requirements for the Capacity Market, with screenshots Summary of the Public Website, Customer Management System, locating information relating to JAO, and summary of the ITS Volumes 87

88 Systems Overview Summary Customer Service Management System Market Participant Public Website Public Internet FTR Balancing Market Nominated Electricity Market Operator Day Ahead / Intraday Auctions Platform (ETS) Intraday Continuous Trading Platform (M7) Settlement and Clearing Platform (SMSS) Capacity Market 88

89 Systems Overview Summary A public website will be hosted by EirGrid which will be accessible via a single URL over the public internet The Balancing Market solution is located across two physical data centres. This is accessible to participants via a single URL for each Communication Type. Connectivity is over the public internet. The NEMO solution is located at the data centres of our service providers EPEX/ECC. This is accessible to participants via different URLS Day Ahead / Intraday Auctions Platform (ETS) Intraday Continuous Trading Platform (M7) There will be 2 URLs for this market in order to have access to continues trading in case of Fail Over scenario s. This will have to be managed by the participant Settlement and Clearing Platform (SMSS) The Capacity Market (CRM) solution is accessible to participants via a single URL. Connectivity is over the public internet The FTR solution is offered as a service via JAO (Joint Allocation Office). Participants will directly engage with JAO 89

90 Systems Overview Access Methods Type 2 Portal connectivity Web portal available for market functions Markets include; Balancing Market Day Ahead Market Intra Day Market Capacity Market Type 3 Connectivity via web service Markets include; Balancing Market Day Ahead Market Intra Day Market 90

91 Balancing Market Communication Mechanisms Balancing Market Market Participants Management Market System Public Reports Customer Service Management System Public Website Public Reports 91

92 Balancing Market Client Requirements Client Requirements (Type 2) Operating System Windows 7-64 bit Windows 10 (by end 2017) Browsers Internet Explorer 11 or higher Other Software MS Excel 2007, 2010, 2013, Adobe Reader Java Version 1.8 _91 or higher Minimum Hardware Specifications CPU: Intel i5 over 2GHz 8 GB RAM 6 GB Hard drive for installations Client Security Requirements (Type 2) Digital Certificate and New Application Password (Prompt on Login) Digitally signed submissions System to System Security Requirements (Type 3) Remains unchanged - 1 Factor Authentication Digital Certificate Submit Data and Certificate Password (embedded in file) System Access - URL The Balancing Market solution is located across two physical data centres. This is accessible to participants via a single Balancing Market-specific URL for each Communication Type. Connectivity is over the public internet 92

93 Balancing Market SEM vs I-SEM Authentication Type 2: User to Computer Browser Type 3: Computer to Computer Current 1 Factor Authentication Digital Certificate Use Certificate Password for data submission 1 Factor Authentication Digital Certificate Use Certificate Password for data submission I-SEM 2 factor Authentication Digital Certificate New Application Password Prompt on Login Use Certificate Password for data submission Remains unchanged 93

94 Balancing Market Two Factor Authentication Context Threat from cyber crime has increased exponentially from original market Recent examples of security breaches in other markets Additional security applied elsewhere I-SEM Viewpoint Threat merits additional security measures Two factor authentication is appropriate mitigation Password Digital Certificate Additional: Two factor authentication requires the user to provide two independent forms of identification 94

95 NEMO Nominated Energy Market Operators 95

96 Day Ahead/Intraday Auctions (ETS Platform) PC/Client Requirements (Type 2) Operating System Windows 7-64 bit Windows 10 (by end 2017) Browsers Internet Explorer 11 or higher Other Software MS Excel 2007, 2010, 2013, Adobe Reader Java Version 1.8 _91 or higher The EPEX Spot Trader Client System Minimum Hardware Specifications CPU: Intel i5 over 2GHz 8 GB RAM 6 GB Hard drive for installations PC/Client Security Requirements (Type 2) Username & Password System to System Requirements (Type 3) Web service: SOAP over HTTPS System to System Security Requirements (Type 3) Certificates + Username & Password Certificates are issued by EPEX Spot System Access The ETS application is located at the data centres of our service providers EPEX. This is accessible to participants via a local installation of the EPEX Spot Trader Client System 96

97 Day Ahead/Intraday Auctions (ETS Platform) ETS Trading Client Type 2 The EPEX Spot Trader Client consists of all functionality needed to perform trading related actions. The systems are installed on your local machine. Market Participant Market Participant ETS Client (front end) Message interface client software Message interface (API) ETS (back end) NEMO Market Participant ETS API (server) Type 3 Web service utilising SOAP over HTTPS Member infrastructure NEMO infrastructure 97

98 Intraday Continuous Trading (M7 Platform) PC/Client Requirements (Type 2) Operating System Windows 7-64 bit Windows 10 (by end 2017) Browsers Internet Explorer 11 or higher Other Software MS Excel 2007, 2010, 2013, Adobe Reader Java Version 1.8 _91 or higher M7 Comtrader Client Platform Minimum Hardware Specifications CPU: Intel i5 over 2GHz 8 GB RAM 6 GB Hard drive for installations Client Security Requirements (Type 2) Username & Password System to System Requirements (Type 3) AMQP Messaging with RabbitMQ Server System to System Security Requirements (Type 3) Certificates + Username & Password Certificates are issued by EPEX Spot System Access The M7 is located at the data centres of our service providers EPEX. This is accessible to participants via the M7 Comtrader browser plugin 98

99 Intraday Continuous Trading (M7 Platform) M7 Trading Client Type 2 The M7 Comtrader Client can run locally Access is granted via Username & Password Client A Client B Client C Technical Architecture AMQP Server M7 System NEMO Market Participant M7 API Type 3 Utilises AMQP Messaging with RabbitMQ Server 99

100 Settlement and Clearing Platform (SMSS) PC/Client Requirements (Type 2) Operating System Windows 7-64 bit Windows 10 (by end 2017) Browsers Internet Explorer 11 or higher Other Software MS Excel 2007, 2010, 2013, Adobe Reader Java Version 1.8 _91 or higher Minimum Hardware Specifications CPU: Intel i5 over 2GHz 8 GB RAM 6 GB Hard drive for installations Client Security Requirements (Type 2 and 3) Access to the Members Area is granted via Username & Password. This Username & Password is valid for both the web browser and the SFTP server System to System Requirements (Type 3) STFP server System Access The Spot Market Settlement System (SMSS) is located at the data centres of our service providers ECC. This is accessible to participants via SMSS-specific URLS 100

101 Settlement and Clearing Platform (SMSS) Screenshot of SMSS interface Market participants have access to the same data using both the web browser (front end) and the SFTP server In the web browser all functionality will be available (Subscribe to Reports, Account balance overview, limit maintenance and administration). The SFTP server only allows retrieval of the report. Reports can also be received via 101

102 Capacity Market The Capacity Market system architecture supports market participants accessing the Capacity Market system via the public internet Participant access to the Capacity Market system will be via the Capacity Market Portal, which is a browser-based portal interface 102

103 Capacity Market Type 2 interface only Accessed through a web portal I-SEM Balancing Market certs will be used in combination with a username and application password Results will be visible via a web portal and downloadable as a csv file Two types of users exist: 1. Those with access to trading (read-write access) 2. Those with access to reports only 103

104 Capacity Market Client Requirements (Type 2) Operating System Windows 7-64 bit Windows 10 (by end 2017) Browsers Internet Explorer 11 or higher Other Software MS Excel 2007, 2010, 2013, Adobe Reader Java Version 1.8 _91 or higher Minimum Hardware Specifications CPU: Intel i5 over 2GHz 8 GB RAM 6 GB Hard drive for installations Client Security Requirements (Type 2) Participant accessing the Capacity Market Portal utilise x.509 certificates in combination with a Capacity Market-specific username and application password to control access to the system Web browser communications support HTTPS and TLS v1.2 Where a Participant already possesses an I-SEM Balancing Market certificate this certificate will also be valid for Capacity Market access System Access The Capacity Market (CRM) solution is accessible to participants via a single URL. Connectivity is over the public internet 104

105 Public Website A new public website will exist within I-SEM. A public website will be hosted by EirGrid/SONI which will be accessible via a single URL over the public internet Customer Service Management System A new web-based application that will exist within I-SEM The Customer Management system will function to facilitate Participant queries and issues JAO Requirements As JAO is a managed service, participants should engage JAO directly for more information relating to their requirements 105

106 PC / Client Requirements Summary For Type 2 access EirGrid recommends the following minimum client requirements across all markets Operating System Windows 7-64 bit Windows 10* Browsers Internet Explorer 11 or higher Other Software MS Excel 2007, 2010, 2013, Adobe Reader Java Version 1.8 _91 or higher The EPEX Spot Trader Client System Minimum Hardware Specifications CPU: Intel i5 over 2GHz 8 GB RAM 6 GB Hard drive for installations For more information on detailed specifications and requirements, please consult the appropriate ITS Volumes, as specified below Volume A B C D E F G Document ISEM TS (Overarching Volume) ISEM TS (Technical Volume) ISEM TS (Balancing Market Volume) ISEM TS (NEMO Ex-Ante Markets Volume) ISEM TS (Capacity Market Volume) Intentionally blank ISEM TS (Glossary) 106

107 Questions? 107

108 Agenda 1. I-SEM Market Overview 2. I-SEM Registration Overview 3. Market Readiness Update 4. Market Trial Update 5. Systems Overview 6. AOB 108

109 Questions? 109

110 Sources of Information I-SEM Website Market Overview Guide Registration BLG Presentation Liaison Groups Training and Workshops *All available on the I-SEM section of 110

111 Upcoming Events Balancing Registration Data Information Session Date: Tuesday the 29 th November Location: Lync Online Technical Liaison Group Date: Wednesday the 30 th November Location: Location: EirgGrid Offices, The Oval, Ballsbridge Project Managers Group Date: Wednesday the 30 th November Location: Location: EirgGrid Offices, The Oval, Ballsbridge 111

112 I-SEM Project Contact Details Web: I-SEMproject@sem-o.com THANK YOU! 112