semo market overview - single electricity market operator market overview.pdf · shadow price...
TRANSCRIPT
SEM Market Overview
July 2013
SEM Drivers
SEM
Competition
Sustainability Security of
Supply
Copyright © EirGrid/SONI 2013 2
SEM Objectives
– to facilitate the efficient, economic and coordinated operation, administration and development of the Single Electricity Market in a financially secure manner;
– to facilitate the participation of electricity undertakings engaged in the generation, supply or sale of electricity in the trading arrangements under the Single Electricity Market;
– to promote competition in the single electricity wholesale market on the island of Ireland;
– to provide transparency in the operation of the Single Electricity Market;
– to ensure no undue discrimination between persons who are parties to the Code; and
– to promote the short-term and long-term interests of consumers of electricity on the island of Ireland with respect to price, quality, reliability, and security of supply of electricity.
Copyright © EirGrid/SONI 2013 3
Sell Volume (MWh)
Charges (€, £)
Buy Volume (MWh)
Payments (€, £)
Generation
Demand
Single Electricity Market
Copyright © EirGrid/SONI 2013 4
The SEM – Key Features
• Gross Mandatory Pool
• All Generators with MEC > 10MW must sell all their output through the SEM
• Wholesale market – Suppliers buy electricity from SEM and sell onto end user (retail)
• Unconstrained i.e. does not consider reserve, transmission constraints, etc.
• Ex-Post pricing i.e. Pricing occurs after the fact.
• Deviations between market and system captured by dispatch balancing costs
• Capacity Payment to reward available capacity and provide stability
Copyright © EirGrid/SONI 2013 5
Market Statistics
• Established November 2007
• € 3 Billion Annual Wholesale Market
• 33 TWh Annual Consumption
• 11 GW Registered Capacity
• 76 Participants (Invoiced Entities)
Copyright © EirGrid/SONI 2013 6
Registered SEM Capacity by Fuel Type
BIO 13MW
COAL 1331MW
DISTL 672MW
GAS 5556MW
HYDRO 222MW
OIL 793 MW
PEAT 346 MW
PUMP 292MW
WIND 1698MW
Copyright © EirGrid/SONI 2013 7
System Operations
Market Operations
Markets vs. System Operations
Interruption adv ice
Bills and Pay ments
f or Electricity and Serv ices
Energy f low s
Information/data f low s
Financial f low s
Distribution
Network
(for
Distribution
Customers)
DUoS
Settlements
Generator Of f ers
Market Schedules
Market Settlements
Market
Inf ormation
Bilateral Contract Settlements
Operations
Schedules
Public
Operational
Plans
Bilateral/OTC Contracts
Transmission
Network
(for Transmission
Customers)
Generators
Generators (incl.
Moyle I/C and
Pumped Storage)
Market Schedules
Market Settlements
Demand Side Bids Customers
Transmission Network Transmission
System Owners
• ESB Netw orks
• NIE
Distribution
Network
Operators
• ESB Netw orks
• NIE
Transmission
Network Transmission
Network
Demand &
wind
generation
f orecasts
Transmission
System
Operators
• EIRGRID
• SONI
Weather f orecasts, industry projections & economic f orecasts
Metering Providers • EIRGRID
• SONI
• MRSO
• Northgate
Market Operator
(SEMO)
Information
Providers
Suppliers
TUoS and Ancillary
Serv ice settlements
(EIRGRID and NIE)
Market
Schedule
Metering Data
Maintenance Plans (NIE only )
TUoS and Ancillary
Serv ice settlements
(EIRGRID and NIE)
Metering
Data
Dispatch
Instructions
8
SEM Market Process
Settlements Statements
Invoices
Credit Risk Mgmt Funds Transfer
Market Participants
Bid Technical
Meter Data Generator
Data
Pricing MSQ SMP
Meter Data Supplier Data TSO Data
Generator Data
9 Copyright © EirGrid/SONI 2013
SEM: Trading Interactions
Single Market Operator (SMO)
Transmission System Operator (TSOs)
Interconnector Administrator
Meter Data Providers (MDPs)
Banks
Public Prices
Exchange Rates
Including …. Dispatch Instructions Real-Time Availability Forecast Demand
MSQ
s &
SM
Ps
Capacity Bids
Capacity Holdings
Price Effecting Generation Non Price Effecting Generation Price Effecting Demand Non Price Effecting Demand
Generator Units
Demand Side Units
Interconnector Units
Supplier Units
Bid
s an
d O
ffe
rs (C
OD
/TO
D)
Volumes
Dispatch Schedule
Operations Schedule
MSQs
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Market Functions
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SEMO Organisation
Market Operations
Pricing and Scheduling
Settlement
Funds Transfer
Customer Care and support
Registration
Manage credit cover
SEMO IT
Functional Team Design and build CMS systems based on Modifications.
Infrastructure Team support Extensive
Hardware, Software and Telecommunications
infrastructure
Market Development
Strategic Development
Trading and Settlement Code
Regulatory Affairs
Market Modelling
Analyse the Market
SEMO Finance
Funds Transfer
Manage Budgets
Audits
Financial Reporting
Copyright © EirGrid/SONI 2013 12
Services provided by SEMO
Copyright © EirGrid/SONI 2013 13
SEMO Services to Customers Service Description Market Processes Registration Dedicated team to assist customer in the process of becoming part of the SEM, through out the registration
process. Prices and Schedules Determination of Market Prices and Schedules, including interconnector flows
Issuing P&S 5 times per day
Settlement Calculation and publication of settlement amounts for the market. For Energy, Capacity and Market Operator Charges
Payment Processing Receipt and monitoring of payments to the market. Processing of payments to Participants based on self billing invoices
Credit Cover Management of collateral to cover market exposures. Calculation of credit cover requirements and monitoring of compliance
Guarantees of Origin Determination of Guarantee of Origin Certificates for the SEM and management of transactions
Fuel Mix Determination of the Fuel Mix for Ireland Understanding the SEM and working within the SEM General Queries on the Market Answering questions and queries about the market. Through market helpdesk, website content (including FAQ
and training presentations) Education and Training on the Market
Includes market analysis e.g.. price events, how the pricing solver works, special topics etc; and Training sessions e.g.. W2TM, Market Overview etc.
Market Data Static and Dynamic reporting and Webservices functions on the website provide historical and real time data Market Participant Interface (MPI) for private information
Market Systems and Access Technical assistance with market systems, digital certs etc.
SEMO Services to Customers Service Description Market Change Facilitating Testing with the Market of system releases
Through SEMO IT e.g.. market test/trial: scope of change workshops, planning workshops for market trial scenarios, test environment, daily calls during testing period
Assistance with the development of modifications to the Code
Through Market Development
Administration of the modifications process
Modifications Secretariat, Analysts to assist with understanding implications of changes
Customer Services Market helpdesk Online Self Service, email, phone, fax Market Messages To update customers on real time activities and status of the market processes. Keep them informed of upcoming
events etc.. Market Operations Conference Calls (MOCC)
Bi-monthly calls to update on recent events and issues, inform of upcoming events and provide reminders. As well as a forum for asking questions.
Copyright © EirGrid/SONI 2013 14
Pricing & Scheduling
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Pricing
Key Outputs:
– Day Ahead and Within Day Interconnector
Flows
– Ex-Post Market Prices
– Ex-Post Market Schedules
Types of Generation Units
Thermal Generator (e.g.. gas, coal fired and biomass)
Hydro Generator (water powered)
Interconnector Units (e.g.. imported/exported energy)
Demand Side Unit (e.g.. curtailable load)
Wind Unit (e.g.. wind unit, wind farm)
Settlement Classes
PPMG
YES NO
Priority Dispatch
PPMG VPMG NO
Controllable
YES
APTG VPTG PPTG PPMG: Predictable Price Maker Generator
PPTG : Predictable Price Taker Generator
VPTG: Variable Price Taker Generator
APTG: Autonomous Price Taker Generator
Data Element I/C Unit
Pumped Storage Unit
Demand Side Unit
Unit Under Test
Energy Limited Unit
Other Predictable PPMG
Other Variable PPMG
Price Quantity Pairs Yes Yes Yes Yes Yes Yes
No Load Costs Yes Yes Yes Yes
Start Up Costs Yes Yes Yes Yes
Nomination Profile Yes
Decremental Price Yes
Max. I/C Unit Export Capacity
Yes
Max. I/C Unit Import Capacity
Yes
Priority Flag Yes
Target Res. Level Yes
Shut Down Cost Yes
Offer Data – Price Maker Generation
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Data Element Autonomous Generator Unit
I/C Residual Capacity Unit
Unit Under Test
Other Predictable PPTG Unit
Other Variable PPTG Unit
Price Quantity Pairs Yes
No Load Costs Yes
Start Up Costs Yes
Nomination Profile Yes Yes Yes
Decremental Price Yes Yes Yes
Max. I/C Unit Export Capacity
Max. I/C Unit Import Capacity
Priority Flag
Target Res. Level
Shut Down Cost
Offer Data – Price Taker Generation
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Data Element DSU
Price Quantity Pairs Yes
No Load Costs
Start Up Costs
Nomination Profile
Decremental Price Yes
Max Up Time/Max Down Time Yes
Ramp Up/Ramp Down
Priority Flag
Target Res. Level
Shut Down Cost Yes
Offer Data – Demand Side Units
Copyright © EirGrid/SONI 2013 21
Note: Demand Side Units are modelled as Generating Units (only the demand reduction is considered by the MSP software).
Supply Units
Supply units are non physical units created for the purpose of carrying out appropriate Settlement calculations
Types of Supply Units in the Market are:
• Trading Site Supply Units (TSSUs); means a Supplier Unit that contains only the Demand within a Trading Site, and is settled on a net basis against the Generator Units on that Trading Site under the rules specified in the Code.
• Associated Supply Unit (ASU); means a Supplier Unit which is both recorded to a Trading Site and which has its Demand settled on a gross basis with the Generator Unit(s) on that Trading Site under the rules specified in the Code.
• Supplier Unit (SU); means the Unit comprising of one or more Generators or Demand Sites which are not Generator Units (for which metered consumption may be positive or negative where such aggregated metered consumption is available). For the avoidance of doubt all Associated Supplier Units, Trading Site Supplier Units and Error Supplier Units shall be Supplier Units as well as other Supplier Units that do not fall into those classes.
Copyright © EirGrid/SONI 2013 23
Determining Market Schedule & Price
ON
ON
ON
OFF
ON
Price = € 50/MWh
Demand
Price Takers (Zero Price, mainly wind)
Copyright © EirGrid/SONI 2013 24
What is System Marginal Price (SMP) made of….
Shadow Price
Uplift SMP
• Single price for SEM per Trading Period (1/2 hour interval) • Price paid/received by both Suppliers/Generator • Determined using Market Scheduling and Pricing (MSP) Software
• Unconstrained Schedule • Scheduled based on optimising lowest Production Cost • Uplift applied to cover Start Up Costs and No Load Costs • SMP bounded by Market Price Cap (€1000/MWh and - €100/MWh)
Copyright © EirGrid/SONI 2013 25
System Marginal Price (SMP)
Copyright © EirGrid/SONI 2013 26
Influences on Market Price
• Demand
• Fuel Price
• Wind Penetration
• Interconnection Flows
• Availability of Generation
Copyright © EirGrid/SONI 2013 27
SMP Trends
Link to Original Data
0
20
40
60
80
100
120
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
44
-20
07
53
-20
07
9-2
00
8
18
-20
08
27
-20
08
36
-20
08
45
-20
08
1-2
00
9
10
-20
09
19
-20
09
28
-20
09
37
-20
09
46
-20
09
2-2
01
0
11
-20
10
20
-20
10
29
-20
10
38
-20
10
47
-20
10
3-2
01
1
12
-20
11
21
-20
11
30
-20
11
39
-20
11
48
-20
11
4-2
01
2
13
-20
12
22
-20
12
31
-20
12
40
-20
12
49
-20
12
5-2
01
3
14
-20
13
23
-20
13
Gas
Pri
ce (
Pe
nce
/Th
erm
) SM
P (
€/M
Wh
)
MSQ
(M
W)
Week No. & Year
MSQ
SMP
Gas Price
Big Snow - Demand Driven
Gas Crisis High Gas Prices
Unseasonal cold spell Day Ahead gas price increases Availability of plant
Increasing gas prices
Recession - decreasing demand
0
1000
2000
3000
4000
5000
6000
7000
0
50
100
150
200
250
300
06
:00
07
:00
08
:00
09
:00
10
:00
11
:00
12
:00
13
:00
14
:00
15
:00
16
:00
17
:00
18
:00
19
:00
20
:00
21
:00
22
:00
23
:00
00
:00
01
:00
02
:00
03
:00
04
:00
05
:00
De
man
d (M
Wh
)
Pri
ce (€
/MW
h)
9th Dec 2012 Ex Ante Market Schedule
SMP SYSTEM LOAD
Impact of Demand
Copyright © EirGrid/SONI 2013 29
Impact of Fuel Prices
BIO 13MW
COAL 1331MW
DISTL 672MW
GAS 5556MW
HYDRO 222MW
OIL 793 MW
PEAT 346 MW
PUMP 292MW
WIND 1698MW
SEM Registered Capacity
Copyright © EirGrid/SONI 2013 30
£0.00
£0.10
£0.20
£0.30
£0.40
£0.50
£0.60
£0.70
£0.80
£0.90
£1.00
€0
€10
€20
€30
€40
€50
€60
€70
€80
€90
Jan
-10
Feb
-10
Ma
r-1
0
Ap
r-1
0
Ma
y-1
0
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Ma
r-1
1
Ap
r-1
1
Ma
y-1
1
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan
-12
Feb
-12
Ma
r-1
2
Ap
r-1
2
Ma
y-1
2
Jun
-12
Jul-
12
Au
g-1
2
Sep
-12
Gas
Pri
ce (£
/Th
erm
)
Syst
em
Mar
gin
al P
rice
(€
/MW
h)
Volume Weighted Monthly Average SMP & Average Gas Price
SMP Gas Price
Impact of Fuel Prices
Copyright © EirGrid/SONI 2013 31
Demand
Impact of Low Wind
• Lower wind means less demand met by price takers
• Generation required by price making generation is greater
• Therefore units scheduled are more expensive
Higher Price = € 75/MWh
Copyright © EirGrid/SONI 2013 32
System Demand & Wind Penetration
Copyright © EirGrid/SONI 2013 33
• Wind Penetration Impacts on SMP
• High Wind Day versus Low Wind Day
Ex. Ante1
09:30
Ex. Ante2
11:30
Within Day
08:00
Ex. Post Indicative
14:00
Ex. Post Initial
14:00
Cycle per Trading Day
TD TD -1 TD +1 TD -1 TD +4
Modified Interconnector
Unit Nominations (MIUNs) for
Capacity Holders
Modified Interconnector
Unit Nominations (MIUNs) for non Capacity Holders
Provides input to RCUC (real time)
COD/TOD locked in
Modified Interconnector
Unit Nominations (MIUNs)
6pm to 6am
Provides Market with Indicative
Settlement values regarding Price & Schedule
Provides Market with Final Price &
Settlement values
Copyright © EirGrid/SONI 2013 34
TD
20th June
TD -1
21st June
19th June
21st June
GWC 08:00
GWC 09:30
GWC 11:30
EA1
WD1
EA2
EP1
EP2
08:00 07:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00
TD -1
TD +1
TD + 4 16th June
• Operational perspective, not Trading Day • 5 runs • 8am to 5pm • 365 days year
Operational Day – 20th June
Bid submissions must be made by Gate Window Close
Run Completed 11:00
Run Completed 13:00
Run Completed 09:30
Run Completed 16:00
Run Completed 17:00
Copyright © EirGrid/SONI 2013 35
System Operations (TSOs)
Market Operations (SMO)
Markets vs. System Operations
Bids / Offers
Forecasts
Determine Ex Ante
MS/Prices
Determine Operations Schedule
Determine Ex Post
MS/Prices
Review / revise Operations Schedule
Determine Dispatch
Instructions
Issue Instructions
& Log Monitor
Including … Real Time Availability
Group Constraints Reserve constraints
Instruction and Availability
Profiling
Indicative / Initial Metering
Including … Real Time Availability Dispatch compliance
SO-SO Trades
Copyright © EirGrid/SONI 2013 36
Interconnector Flows
RCUC Scheduling Tool
• RCUC: Reserve Constrained Unit Commitment
• ABB Software tool, used only by the TSOs, which utilises Linear
Programming to optimise Unit Commitment and Economic Dispatch
• RCUC considers constraints – UUC does not
Main Inputs: •Load Forecast •Wind Forecast •Expected Generator Availability •Generator Testing •Reserve Requirement •Transmission Constraint Groups(TCGs) •Hydro Targets •Market submitted prices and generator technical parameters •Interconnector Flows
Outputs: •Generation Schedule •Tie Line Flow Schedule •Reserve Schedule
RCUC
Copyright © EirGrid/SONI 2013 37
Settlement
Copyright © EirGrid/SONI 2013 38
Settlements Cycle
Settlement
Calculations
Payment
In and Out
Compile and Issue
Settlement Statements
Compile and Issue Invoices
Meter Data
(MDPs)
Market Data
(TSOs)
Data
Submitted
Copyright © EirGrid/SONI 2013 39
Wholesale Market €2.9 Billion
Capacity € 530 Million
Imperfections €176 Million
Market
Operation €24 Million
Energy €2120 Million
Copyright © EirGrid/SONI 2013 40
Capacity Payment Mechanism
Annual Capacity Payment Sum
€529,876,722 (2013)*
Capacity Charges = Recovery of Capacity Payment.
It is intended that in each month: Charges = Payments
CP1 CP2 CP3 CP4 CP5 CP6 CP7 CP8 CP9 CP10 CP11 CP12
* http://www.allislandproject.org/GetAttachment.aspx?id=4c23d8a5-c2a6-496b-8788-252d13b8ead2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Copyright © EirGrid/SONI 2013 41
Settlement Charges & Payments Supplier Charges Generator Payments (& Charges)
Energy Charges (weekly)
All Supplier units based on Metered Demand and System Marginal Price
Energy Payments (weekly)
To all Generator units based on Market Scheduled Quantity (MSQ) and System Marginal Price (SMP)
Imperfections Charge (weekly)
To recover constraint costs, MWP and Uninstructed imbalance payment
Constraint Payments (weekly)
Apply if Dispatch Quantity (DQ) does not equal MSQ
Uninstructed Imbalance Payments
If Actual Output (meter data) differs from DQ
Make Whole Payments (weekly)
Ensures that all Generator Unit Operating Costs are met
Testing Charges (weekly)
charge in respect of a Generator Unit Under Test in accordance with the Testing Tariff.
Capacity Charge (monthly)
Charge for recovery of payment
Capacity Payments (monthly)
A payment in relation to MW availability
Market Operator Operating Cost Charge (weekly & monthly)
Fixed (FMOC) and Variable (VMOC) Charges per Unit
Market Operator Operating Cost Charge (weekly & monthly)
Fixed Charge per Units
Currency Costs (weekly & monthly)
The cost of transacting across more than one jurisdiction
Copyright © EirGrid/SONI 2013 42
Timetabled Resettlement
When?
Settlement date plus 4 months (M+4)
Settlement date plus 13 months (M+13)
Why?
Trading & Settlement Code requirement
Updated Meter Data for Non Price Effecting Generation and Demand (NPEG/NPED)
Low Materiality upheld Formal Settlement Queries
Ad hoc Resettlement
When?
As and when a High Materiality Formal Query has been upheld or post Month 13 upheld Formal Query
Why?
High Materiality = above Settlement Threshold
Changes to DQs, Meter Data, Availability etc
Who is impacted?
Potentially all Participants
Resettlement Timings
Copyright © EirGrid/SONI 2013 43
Supporting Information for Invoices
Ex. Post Indicative
CD+1WD1
Statements only
Allows Market to review & query Settlement data
Ex. Post Initial
CD +5WD2
Settlement Statements &
Invoices
Resettlement
CD +Month 4
Statements & Invoices
Based on Settlement changes from Initial
Resettlement
CD + Month13
Statements & Invoices
Based on Settlement
changes from M+4
*1 Or 3 WD after end of the Capacity Period for Capacity
*2 Or 7 WD after end of Capacity Period for Capacity
Copyright © EirGrid/SONI 2013 44
Invoice Payment Terms
Payment IN by 3 Working Days 12:00
Payment IN by 5 Working Days 17:00
Payment OUT by 4 Working Days 17:00
Energy &
Capacity
VMOC/ FMOC
Note: Resettlement Invoicing (ENG, CAP, VMOC) follows same timelines, however, Generators can receive Invoices which require payment IN to SEM Bank.
Copyright © EirGrid/SONI 2013 45
• Onus on Participant to meet all payments • Obligation to pay and then dispute, not withhold payment • Can receive up to 28 invoices per month • Default Notice will be issued • Credit Call made straightaway
Credit Risk Management
Copyright © EirGrid/SONI 2013 46
Credit Cover • Why have Credit Cover?
• Reduces financial risk to SEM should Participants default on payment
• In the event of a payment default, this credit cover can be used to
satisfy outstanding financial obligations to the market
• Required Credit Cover
• Calculated and revised each working day
• Credit Cover Increase Notices responded to within two working days
• Suppliers – Approx 4 weeks Charges
• Generators – Fixed Credit Cover (to cover resettlement)
• Approx 90% Energy, 10% Capacity
• How to Provide Credit Cover
• Letter of Credit (Bank Guarantee) and/or Cash Collateral Reserve
Copyright © EirGrid/SONI 2013 47
Credit Cover Increase Notice
Credit Cover Report published containing CCIN value
17:00 17:00 14:30 17:00
1st Working Day 2nd Working Day
How to remedy a CCIN
At any stage within the 2 Working Days a Participant can: • Submit increased collateral (cash or increased Letter of Credit value) • Pay Invoice(s) (before due date if necessary) • Enter into Settlement Reallocation(s)
If CCIN is not remedied by 17:00 2WD, Participant in Default & subject to
Suspension from Market
Copyright © EirGrid/SONI 2013 48
Market Rules
Copyright © EirGrid/SONI 2013 49
Market Obligations in the SEM
• Trading and Settlement Code (T&SC) • Legal document
• Participants agree to abide by the T&SC
• The Code documents the rules and obligations
of all participants in the SEM
Trading & Settlement Code on website
• Agreed Procedures (APs) • Appended to the Code
• Explain in more detail certain procedures
• Easier reading
• The Code takes priority over APs
Agreed Procedures on the website
• Changes to the Trading & Settlement Code and Agreed Procedures • Changes to either document can only made through the Modifications process
• Any Party in the Market can raise a Modification for consideration
• Details of the Modifications process and Form are available here
Modifications Forms and current/approved Modifications on the website
Copyright © EirGrid/SONI 2013 50
Registering in the SEM
• Can take up to 60 days once full paperwork received;
• All fees and Credit Cover requirements must be fulfilled prior
to trading in the SEM.
• All relevant information to assist you in joining the SEM is
available here:
http://www.sem-o.com/joiningthemarket/Pages/home.aspx
Copyright © EirGrid/SONI 2013 51
www.sem-o.com
Copyright © EirGrid/SONI 2013 52
Website
• Market Status
• Market Data
• Reporting on Market Performance
• Market Change
• Joining the Market
• Training
www.sem-o.com
Copyright © EirGrid/SONI 2013 54
Dynamic Reporting Provides publically available Market data
Market Data
Copyright © EirGrid/SONI 2013 55
Further Information
• Helicopter Guide
• Trading & Settlement Code
• www.sem-o.com
• www.allislandproject.org/en/SEM_overview.aspx
• www.cer.ie
• www.uregni.gov.uk
Copyright © EirGrid/SONI 2013 56
DOCUMENT DISCLAIMER Every care and precaution is taken to ensure the accuracy of the information provided herein but such information is provided without warranties express, implied or otherwise howsoever arising and EirGrid plc and SONI Limited to the fullest extent permitted by law shall not be liable for any inaccuracies, errors, omissions or misleading information contained herein.
Copyright © EirGrid/SONI 2013 57
Copyright © EirGrid/SONI 2013 58