TERRE Trans European Replacement Reserves Exchange

Transcription

1 TERRE Trans European Replacement Reserves Exchange TERRE Stakeholders meeting 12 th July 2017

2 --- Registration and Coffee /10/2017 2

3 Agenda # TOPICS Timin g Registration & Coffee 9:30 Presenter 0 Welcome message 10:00 Mark Bygraves Leonardo Costa (OFGEM) 1 Introduction and Presentation of project 10:15 2 Consultation Paper presentation Topic 1: Structure Topic 2: TSO-TSO model 10:45 Robert Smith (NG) Amine Abada (RTE) Paula Junco (REE), Alina Zigkiri (Swissgrid) Sophie Tilley (NGET) Mathilde Bongrain (RTE) Marco Turchiano (TERNA) Lunch break 12:00 2 Consultation Paper presentation Paula Junco, Alina Zigkiri Topic 3: TSO-BSP & TSO-BRP Harmonised rules 12:45 Sophie Tilley, Mathilde Bongrain Topic 4: Marco Turchiano Topic 5: Governance and Costs sharing 3 TERRE consultation paper and GL EB 14:45 Amine Abada 4 Involvement of new TSOs 15:00 Amine Abada 5 Stakeholders presentation 15:15 Stakeholders 6 Conclusion and open discussion 15:45 All End of the meeting 16:00 23/10/2017 3

4 Welcome Message Mark Bygraves (Elexon CEO) 15 23/10/2017 4

5 23/10/2017 5

6 Introduction Leonardo Costa (OFGEM) Robert Smith (National Grid - Steering Committee member) 10 23/10/2017 6

7 Part 1: TERRE Introduction and progress TERRE introduction and progress Consultation Paper Consultation paper and GL EB Involvement new TSOs 20 23/10/2017 7

8 1. Introduction to TERRE project (Amine) The TERRE project Mission and Participants Introduction Progress & Planning LIBRA European Platform Develop a XB platform for RR products Potential participants to TERRE project TERRE project will involve the design, development, implementation and operation on a cross-border platform for the balancing products (RR) The first phase of the design finalized with a consultation proposal, and has been validated by the NRAs and the market participants (stakeholder) Toward efficient cooperation in balancing in Europe Following TSOs were included in the cooperation Full Participants: France (Rte) Italy (Terna) Portugal (REN) Spain (RED) Switzerland (Swissgrid) GB (National Grid) The proposed RR product together with the project governance should be aligned with Guidelines on Electricity Balancing. The established platform should support the future European balancing vision to assure the security of the energy supply The RR is not the only balancing product which is in development and should therefore be aligned with the ongoing projects (mfrr balancing regions), mainly to assure liquidity of balancing The TERRE platform is a suitable candidate for other balancing products such as mfrr. Candidates : Greece Norway Sweden Finland Denmark Czech Republic Romania Poland Hungary Croatia Full participants RR countries Candidate 23/10/2017 8

9 Design phase Implementation phase 1. Introduction to TERRE project TERRE governance and project scope Introduction Progress & Planning LIBRA European Platform Governance structure ENTSO-E (Market Committee) TERRE Steering Committee (TSOs) Implementation Group (TSOs + NRAs) Stakeholder Meeting Legend Decision group TSC: Monthly TERRE WORKING GROUPS IG: Every 2 months 2 or 3 a year External groups Expert groups Technical Legal & Governance IT Procurement Project scope The TERRE project composes 2 main steps: Design platform TSO-TSO LIBRA Implementation the TSO-TSO (Platform) design and RR balancing offers Contract notice on OJEU TSO Imbalance Need Candidates pre-selection the Local Features harmonization CMO and algorithmic RFP documentation prepared optimization Tendering phase launching Settlement Implementation, Integration and The TERRE project showed significant CBA Hosting of the Clearing Module progress in 2016 by closing the TSO-TSO Timing & Scheduling Implementation Accounting Design, going through the NRAs approval and Handling AC and DC borders Services entering the Implementation Phase with the NRAs Approval RR market Implementation current RFP (Request For Proposal) period as the major cornerstone. Public Consultation Harmonization of local features NRA approval process Discussions with the NRAs RFP preparation Consultation Implementation Framework 23/10/2017 9

10 Consultation PHASES 2. TERRE progress and planning Passed and future project milestones Introduction Progress & Planning LIBRA European Platform Libra platform development The RFP process is the corner stone to establish the algorithmic optimization solution and the technical design of the Libra Platform. The TERRE project will conclude the first phase of the main RFP Lots by end of summer, followed by functional design of the platform. Progress TENDER PHASES Vendors prepare bids Q&A TSO Evaluation Supplier presentations and Moderation Negotiation and contracting RFP Start RFP Close Supplier down-selection TERRE scope: RR market harmonization and consultation May -July Notification End Q Next to the technical implementation of the platform, the harmonization of the RR balancing market will be handled by a public consultation. The stakeholders will be involved to provide their feedback on the proposed design. Followed by the publication under the EBGL scope with participation of all European RR TSOs. Progress Harmonization issue 30 th June- 16 th August Mid Aug- Sep 15th End Sept Drafting and Validation period Validation period Stakeholders Period Assessment Approval package Validation 6 weeks Stakeholder meeting 3 weeks 4 weeks NRAs Submission TERRE stakeholder meeting: 12 th of July in London 23/10/

11 Implementation TERRE Platform Implementation Design Approval Legal 2. TERRE progress and planning High level planning Introduction Progress & Planning LIBRA European Platform Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Define future LIBRA operational framework Consultation on LIBRA design Consultation on harmonization and LIBRA Preparation of the implementation framework (GL EB requirements) RFP phase Functional design GO Live window Development //run July /10/

12 3. LIBRA European Platform Platform ambition Introduction Progress & Planning LIBRA European Platform TSOs involved in TERRE project are developing a modular solution that aims to be the reference for the optimisation RR products in Europe LIBRA will be composed of 3 independent lots Different zones using the same and/or different types of product can be optimised by the platform using different CMOL Clearing Algorithm RR Cooperation A Data management Settlement It is also possible to have one single Merged CMOL for the same type of product, for TSOs from different Cooperation LIBRA aimed to optimize balancing energy activation Other scheduled balancing product can be optimised by the platform in different processes and timelines RR TSO RR RR Coop B RR TERRE TSOs Optimisation Platform Clearing Set. ATC Other possible optimisation CMOL scheduled product 23/10/

13 3. LIBRA European Platform Platform ambition Introduction Progress & Planning LIBRA European Platform 1 - First Stage LIBRA Platform GB FR CH LIBRA Platform NM 1 NM 2 NM = New Member PT ES IT LIBRA Platform NM 3 NM 4 2 Potential second step LIBRA Platform GB FR CH NM 1 NM 2 PT ES IT NM 3 NM 4 23/10/

14 3. LIBRA European Platform Platform and main features Introduction Progress & Planning LIBRA European Platform Processing data from 50 countries Algorithmic performance 3min (for offers treated by clearing) 15min resolution LIBRA Common or local optimisation Allowing or blocking counter activation Allowing XB countertrading Treatment of UAB/URB (PAB/PRB) Intellectual propriety requested 23/10/

15 1. Structure of the consultation paper Content and structure Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Topic Content Introduction TSO-TSO model TSO-BSP & BRP model Governance Local implementation and Market rules Planning Next steps TERRE project status Purpose of the consultation document Definition of LIBRA platform and processes Complementary information first consultation phase RR BEGCT Complementary information first consultation phase GLEB requirements and common and national publication Governance of the TERRE project Description of the future implementation of the national market rules Implementation, harmonization and parallel run planning overview Evolutions regarding reduction of Market Time Unit or ID GCT and introduction of new balancing products. Consultation Link: CP 23/10/

16 2. TSO-TSO model (Marco) Marginal Price in TERRE Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Marginal Price Definition The Marginal Price shall be based on the prices of the activated balancing offers from BSPs and, if relevant, on the prices of the satisfied TSO imbalance need (in case of elastic needs). MP is identified by the intersection of the selling and buying curve Selling curve: Upwards offers and downward imbalance needs Buying Curve: Downwards offers and upward imbalance needs TERRE TSO-TSO considerations Single price for each bidding zone (even if 2 bidding zones correspond to same TSO) A set of non-congested bidding zones, have the same marginal price. In case of congestion on one border, different prices at both sides of the interconnector are possible A marginal Price will be generated every 15 min (or more in case there is congestion) 23/10/

17 2. TSO-TSO model Congestion rent Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing In case of congestion in one interconnector Results into different marginal prices at both sides Price in each zone determined by the activated bids at either side of the interconnector (i.e. either non- congested zone). Congestion rent generated Congestion rent example (ATC A B = 100MW) CONGESTION If ATC was ATC A B = 100MW 2 Marg. Prices Settlement Function (SF) B SF: 100 x PB SF A: 100 x PA Congestion Rent = A 100 MW B [Schedule A B] x (PB PA) B needs to activate some local offers 23/10/

18 2. TSO-TSO model Libra Process Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Libra platform development Following Libra process has been established: 1. TSOs receive offers from BSPs in local market balance area 2. Forward of coherent RR balancing products to Libra platform 3. TSOs communicate their imbalance needs and the available XB transmission capacities (ATC) 4. Optimization the clearing of imbalance needs against BSPs offers 5. Communication of the accepted offers, satisfied needs and prices 6. Calculation of the commercial flows between market balancing areas and settle the expenditure and revenues between TSOs 7. The resulting XB schedules and remaining ATC are sent to the TSOs National Balancing mechanism 3 XB Capacity Used XB Capacity 7 National Balancing mechanism BSP 1 Offers TSO 2 3 Bids Needs 4 LIBRA: Algorithm + CMO Selected Bids 5 Netted needs XB exchanges 6 TSO Activation Request Settlement BSP 23/10/

19 2. TSO-TSO model Libra Timings Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing ID GCT RR balancing GCT TSO Balancing GCT Results Activation request TERRE Timeline Intraday RR Balancing TSO balancing Clearing Output communication RR activation Delivery period H H+X TERRE Process Update of national bids Subissions of TSO Need, bids and ATC, Libra algorithm Calculation 3min Result Communication National Units Activation 5 process < 10min Full Activation Time 30 min The fallback solutions envisaged in terms of processes and tools for TERRE: Three situations could occur: Non availability of one TSO or communication infrastructure: the centralized platform/system will run with ATC=0 for the impacted borders. If the algorithm can t converge within 2 to 3 minutes, ATC=0 will be used for all borders. The algorithm will generate local results with only the local bids that can be used by each TSO. Failure on the centralized platform/system: the local arrangement and local It tools will be used by each TSO. XB scheduling step: depending on the TSO situations before a Go Live. First step expected = 60min with target of 15min 23/10/

20 2. TSO-TSO model (Alina) Counter-activations Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing What is a counter-activation? A counter-activation is the simultaneous activation of an upward and a downward offer in order to increase the social welfare. Price Buying curve Downward offers Positive needs Two offers can be activated simultaneously Selling curve Upward offers Negative needs Suggested approach by the TSOs Volume TERRE TSOs support the allowance of counter-activations Highest social welfare Non-distorted price signals Highest activation chances for BSPs No further constraints If the counter-activations are prevented, the marginal price will be affected The allowance of counter-activations must not affect the liquidity of the cross-border ID market: Specific RR product profile and prequalification are expected different product GCT not before the ID GCT 23/10/

21 2. TSO-TSO model Counter-activations Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing NRAs suggested approach Separation of acceptable and non-acceptable counter-activations If O2 was a block, then the simultaneous activation of O2 and O3 would be accepted Difficulties in the implementation are expected by the TSOs (especially with URB restriction) Project suggestion Counter-activations will be allowed during parallel run phase and at a first stage of the project, and TSOs will investigate the respective frequency and volumes. Based on this study, the NRAs will approve (or not) the allowance of counter-activations. 23/10/

22 2. TSO-TSO model UAB/URB Treatment Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing TERRE algorithm handles different complex formats (block, exclusive offers). A pricing method associated with those different formats is then difficult as UAB/URB appears.. Price p1 p2 D1 I D2 Volume D: divisible bid I: indivisible bid accepted part not accepted part a bid with a price lower than the marginal price is not accepted for example p(d1)< p1 a bid with a price higher than the marginal price is accepted For example p(i)>p2 Unforeseeably rejected bid Unforeseeably accepted bid In order to treat this problem, special constraints will be included in the clearing algorithm so as not to allow unforeseeably accepted bids For unforeseeably rejected bids, two possible options are possible: p1 1. Unforeseeably rejected bids will be allowed all type of bids 2. Unforeseeably rejected bids will be allowed only for complex bids and not for divisible bids with introduction of either extra constraints or iterations D1 I D2 23/10/

23 2. TSO-TSO model Need flexibility Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing The need flexibility represents the volume of extra need that can be accepted by a TSO in order to benefit from cheaper bids. Price Case 1: Need flexibility & divisible offer Case 2: No flexibility & block offer Case 3: Need flexibility & block offer EN UO1 FLX UO EN UO1 (block) FLX UO EN UO (block) FLX UO2 Volume Volume Acceptance ratio Volume Cases EN UO1 UO2 FLX Case 1 100% 75% 0% 0% Case 2 100% 0% 100% 0% Case 3 100% 100% 0% 75% The Need flexibility is only accepted if it leads to greater social welfare. It helps reducing number of UAB/URB. 23/10/

24 2. TSO-TSO model (Sophie) Interconnection Controllability Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing CONCEPT OF I/C CONTROLLABILITY IN TERRE: TSOs can define limits for minimum / maximum flow to allow for control in certain system conditions. Allows management of interconnectors as certainty increases TSOs can reduce available capacity or define minimal desired change in specific direction Focus on reversal flow A Current Exchange (500 MW) 23/10/ B Desired/needed Exchange (100 MW) Objective: Calculate allocated bids, marginal price and XB settlement flows when I/C controllability is applied constrained and unconstrained run used to determine final results and price I/C controllability will be incorporated in TERRE

25 2. TSO-TSO model Interconnection Controllability: Examples Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Algorithm run 1 (constrained run) TSO Offer direction Offer quantity (MW) Offer price ( /MWh) TSO1 Desired flow: MW TSO1 TSO3 +20MW +50MW +50MW 1 Upward Upward Upward Downward Upward Upward Downward 50-5 Optimization considers desire flow and gives the following results TSO Offer Offer quantity Offer price Activated 50 MW 30 MW 20 MW TSO1 TSO1 TSO3 +20MW +50MW +50MW 70 MW direction (MW) ( /MWh) quantity (MW) 1 Upward Upward Upward Downward Upward Upward Downward /10/

26 2. TSO-TSO model Interconnection Controllability: Examples Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Algorithm run 2 (unconstrained run) 50 MW TSO1 TSO1 TSO3 +20MW +50MW +50MW 20 MW TSO 1 50 / MWh TSO 2 40 / MWh TSO 3 40 / MWh 100 MW TSO Offer direction Offer quantity (MW) Offer price ( /MWh) Activated quantity (MW) 1 Upward Upward Upward Downward Upward Upward Downward Marginal Price is the result of the unconstrained run. Uplifts will be given to BSPs which were activated but had higher submitted TSO(s) requesting the Interconnection Controllability will bear the extra costs 23/10/

27 Lunch Break 45 23/10/

28 3. TSO-BSP & TSO-BRP harmonised rules (Paula) RR balancing product Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Accepted RR balancing product P 1MW local rules for blocks 15min min. delivery 60min max. delivery Scheduled activation FAT = Preparation + Ramping period Validity period is defined by BSP Recovery period is defined by BSP Local rules for caps and floors FAT = 30min 15min resolution t Incentivised RR balancing product Incentivised delivered product is described in slides 31 23/10/

29 3. TSO-BSP & TSO-BRP harmonised rules Objective and approach Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Goal and introduction Following articles 18 and 44 of the GL EB, the TSOs will set out terms and conditions for balancing activities to ensure adequate competition and a level playing field between market participants. Certain level of TSO-BSP settlement harmonization will be necessary Approach Define harmonized settlement rules Define harmonized incentives that should be given to market parties Identify deviations amongst TSOs Deviation Hamonized incentives Harmonized settlement rules 23/10/

30 3. TSO-BSP & TSO-BRP harmonised rules Objective and approach Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Goal and introduction Following articles 18 and 44 of the GL EB, the TSOs will set out terms and conditions for balancing activities to ensure adequate competition and a level playing field between market participants. Certain level of TSO-BSP settlement harmonization will be necessary Approach Define harmonized settlement rules Define harmonized incentives that should be given to market parties Identify deviations amongst TSOs Deviation Hamonized incentives Harmonized settlement rules 23/10/

31 3. TSO-BSP & TSO-BRP harmonised rules Set a common base of settlement rules Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Settlement rules to be harmonized by TERRE TSOs before the go live of the LIBRA platform: To ensure consistency between TSO-TSO and TSO-BSP settlement : Implementing TSOs BSPs should be settled with pay-as-clear (XBMP) BSPs will be settled for the requested balancing energy (instead of metered physical delivery) The BSP s remuneration basis is Requested Volume x XBMP 23/10/

32 3. TSO-BSP & TSO-BRP harmonised rules (Mathilde / Alina) Objective and approach Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Goal and introduction Following articles 18 and 44 of the GL EB, the TSOs will set out terms and conditions for balancing activities to ensure adequate competition and a level playing field between market participants. Certain level of TSO-BSP settlement harmonization will be necessary Approach Define harmonized settlement rules Define harmonized incentives that should be given to market parties Identify deviations amongst TSOs Deviation Hamonized incentives Harmonized settlement rules 23/10/

33 3. TSO-BSP & TSO-BRP harmonised rules Align market parties incentives Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Physical delivery as close as possible to the XB exchange schedule If the physical delivery of the BSP providing RR deviates from the cross-border exchange schedule, the RR exchange can result in a increased ACE within the area that this BSP is connected to BSPs should be incentivized to physically deliver as close as possible to the XB exchange schedule Implementing TSOs Incentive to deliver the requested volume BSPs should not be incentivized to deliberately provide an under or over delivery compared to the requested balancing energy 23/10/

34 3. TSO-BSP & TSO-BRP harmonised rules Align market parties incentives Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing These two incentives could be achieved by different settlement schemes : Model A Model B and C TSO TSO Remuneration basis Requested volume x XBMP Balancing energy deviation settlement Remuneration basis Requested volume x XBMP Balancing energy deviation settlement BSP BSP BRP Model A and B can provide the same incentives. The choice between these two models should be made at national level (depending on the roles of BSPs and BRPs). 23/10/

35 3. TSO-BSP & TSO-BRP harmonised rules Align market parties incentives: Example Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing The TSO asks for E5 (MWh) In all 3 models BSPs will receive E5 x MP For any deviations from the expected delivery: Model A will directly settle the BSPs Models B and C will settle the BRPs 23/10/

36 3. TSO-BSP & TSO-BRP harmonised rules Align market parties incentives Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Other harmonized incentives Activated offer volume should be delivered by the assets corresponding to the activated BSP offer for unit based and aggregate based systems. BSPs should be incentivized to report any defect as soon as it is known The settlement scheme should not favour larger nor smaller market participants over others 23/10/

37 3. TSO-BSP & TSO-BRP harmonised rules Summary Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Harmonized settlement rules The BSP s remuneration basis is Requested Volume x XBMP Harmonized BSP s incentives Provide a physical delivery consistent with the XB exchange Not to deliberately provide an under or over delivery Deliver the balancing energy with the assets corresponding to the offer (unit and aggregate based systems) Report any defect as soon as it is known Deviation Time step for the monitoring/control Relationship between the BSP and the BRP Balancing energy deviation settlement prices 23/10/

38 3. TSO-BSP & TSO-BRP harmonised rules (Sophie) BEGCT: Definition Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing The TSOs agreed to fix the BEGCT at H-60min H = Start of the Delivery period H-60min H-45min Results H-30 TERRE Timeline RR Balancing TSO balancing Clearing Output communication RR activation Delivery period H H+X TERRE Process Update of national bids Subissions of TSO Need, bids and ATC, Libra algorithm Calculation 3min Result Communication National Units Activation 5 process < 10min Full Activation Time 30 min 23/10/

39 4. GLEB requirements and transparency regulation Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Common Publication is a key concept of the of EBGL to ensuring non-discriminatory and efficient market. For example, marginal prices will be communicated no later than one hour after real time. Following article 12 Publication of information for RR products, the following data will be published on ENTSO-e transparency platform Common reporting to NRASs is not addressed in this consultation. Energy bids Offered and activated Up/ downward Type of reserves (RR, mfrr, etc.) Standard /specific Separated Aggregated Aggregated Separated Separated Aggregated Separated Separated Separated National Publication Unavailable Separated Separated Separated The elements that are not belonging to the common list of data can be published on a local level, through the current means of individual TSOs 23/10/

40 5. Governance & Costs sharing TERRE and GL EB Structure TSO-TSO Model TSO-BSP & BRP Harmonised rules Governance & Cost sharing Cooperation Agreement (CA): TERRE Unanimity (1 country = 1 vote) QMV (Art 4) EB GL: RR European Platform Equal cost sharing Cost sharing function of MS, consumption, TSO (Art 23) Allocation of historical costs (Art 23) Application TERRE project understands that relevant obligations from Art 4 and Art 23 of the EB GL (governance and cost sharing for RR) Will apply once TERRE is designated as RR European platform. Under the scope of the GL EB application, the RR Implementation Framework will be submitted with the new governance rules. 23/10/

41 Part 3: TERRE Consultation phase and GLEB TERRE introduction and progress Consultation Paper Consultation paper and GL EB Involvement new TSOs 15 23/10/

42 1. TERRE and GL EB (Marco) High level timelines TERRE timelines Sept 2017 Q Q TERRE TSOs scope: Finalisation of the platform design principles and submission of the approval package to the NRAs Adaptation of the TSOs proposal to the NRAs with the involvement of all TSOs using RR and submission of the Approval for Implementation framework Designation of TERRE as the European Balancing Platform by the NRA Q2/Q // RUN phase and Go Live of the RR Balancing European Platform Timelines after entry in force of the GL EB = December 2017 (assumption) June 2018 December 2018 December 2019 Finalisation of the platform design principles and submission of the approval package to the NRAs Designation as the European Balancing Platform by the NRA 1 year after the entry in force of the GL Go Live of the RR Balancing European Platform 23/10/

43 2. TERRE Consultation paper and GL EB Summary Aims Complete the pervious Consultation sent out last summer To answer to the stakeholders and NRAs expectations To request a comfort on TSO-BS & BRP design proposal Regulation Under the scope of the GL EB (Art 19.1 and 5.3), there is an obligation that all TSOs using RR must consulate the market together. TERRE TSOs will work with the new members on this purpose using the inputs and the experience which we will get from the current TERRE consultation phase. Target The Implementation Framework for RR European Platform will be submitted to the relevant NRAs by all TSOs using RR 23/10/

44 Part 4: Involvement of new TSOs TERRE introduction and progress Consultation Paper Consultation paper and GL EB Involvement new TSOs 15 23/10/

45 1. Involvement new TSOs Ongoing Who? All TSOs using or intend to use RR balancing product are invited to join the project as full members Today, additionally to the TERRE partners, the TSOs which use RR (current information): MAVIR HOPS TRANSELECTRICA PSE Full participants Countries using RR Candidate The final list of TSOs which will participate to the Implementation Framework will be completed and will be validated by ENTOS E Market Committee before end of /10/

46 Part 5: Stakeholder presentation 30 23/10/

47 Part 6: Conclusion and open discussion 15 23/10/

48 Thanks for your attention 23/10/

49 Appendix 23/10/

50 1. TSO-TSO model Definition of imbalance needs Imbalance Need Characteristics Anticipation Time Minimum size Minimum delivery period Max delivery period Location Maximum Size Divisible Volume Price Time Resolution Firmness Only needs anticipated 45 min or more before real time can be satisfied by TERRE 0 MW 15 min 60 min Bidding Zones The maximum size of the Imbalance Need should be less or equal to the sum of the shared offers made in the same direction. Under certain conditions, a TSO can apply exceptions Under the responsibility of TSO to a resolution of 1MW For inelastic needs TSOs will not price their needs. For elastic needs a price will be submitted, which will set a min/max price each TSO is willing to receive/pay to satisfy its needs. Its resolution is 0.01 /MWh. 15 min Yes Direction Positive (System short) / Negative (System long) 23/10/