Amprion Market Report shows encouraging trends

27.05.2020

The intermeshed European electricity market today requires constructive cooperation between all actors and organisations. Amprion, one of the four German transmission system operators (TSOs), considers the efficiency of cooperation at European level a key prerequisite for continental security of supply and the success of the energy transition. For this reason, the TSCNET shareholder was and is involved in numerous regional and European initiatives on system operation, network planning, and market integration. Also, Amprion is an observant analyser of the European market development, especially in the Central Western Europe (CWE) region and annually provides the Market Report for the CWE countries. The 2020 edition for the period 2015 to 2019 has just been released.

The Market Report is based on data from Flow-Based Market Coupling (FBMC) introduced by the six CWE countries (Austria, Belgium, France, Germany, Luxembourg, the Netherlands, and Belgium) in May 2015. By involving the entire regional network in the coupling of electricity markets, FBMC allows TSOs to allocate cross-border capacity and maximise market efficiency without jeopardising grid stability. The Amprion report clearly indicates the progress of the CWE market integration, especially with the following figures: In 2019, price convergence on the day-ahead markets increased by a further 10%, reaching 42%. In other words, in almost every second hour, day-ahead prices in the CWE have been equal because the TSOs succeeded in making sufficient power transmission capacity available to meet the demand of the entire region at the same prices.

Dr. Hans-Jürgen Brick, CEO of Amprion, comments on the positive development: “The Market Report furnishes proof that trade barriers could be decreased during the course of 2019.” Dr Brick places particular emphasis on the efficient and highly interconnected power grids in the CWE region and their “key role in ensuring Europe’s stable and secure energy system”. As regards Amprion’s individual contribution, the TSO was able to further improve the efficiency of its grid and thus strengthen European electricity trading. Whereas in 2018 the share of all active trade constraints caused by Amprion internal elements was 13.7%, in 2019 it was only 7.8%. This is due not only to the ongoing grid expansion measures, but also to the monitoring of overhead lines, which allows more efficient utilisation of the most important power lines.

Amprion has published the Market Report 2020 for the CWE region (picture: Daniel Schumann / Amprion)

Linkup
> See Amprion press release, in German (html)
> Open Amprion market report (pdf, 6.97MB)
> Open Amprion market report summary, in German (pdf, 524.8kB)

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Paper on MRC extension

26.03.2020

The so-called 4M Market Coupling Countries (4M MC) – the Czech Republic, Hungary, Romania and Slovakia – are to be connected to the Europe-wide Multi Regional Coupling (MRC) of the electricity market. This will introduce Single Day-Ahead Coupling across 23 European countries. The initiative to implement the MRC expansion is the DE-AT-PL-4M MC Project, also known as “Interim Coupling Project”. The relevant transmission system operators (TSOs) from Austria, Czechia, Germany, Hungary, Poland, Romania and Slovakia – the TSCNET shareholders 50Hertz, APG, ČEPS, MAVIR, PSE, SEPS, TenneT, and Transelectrica – are part of the project consortium.

The AT-PL-4M MC Project establishes implicit capacity allocation based on Net Transfer Capacity (NTC) at six borders (PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, HU-AT). The Nominated Electricity Market Operators (NEMOs) and TSOs participating in the DE-AT-PL-4M MC Project now have published an information paper for market participants containing key information on the project in a question and answer format. This information includes the main expected changes for the market, the planned communication methods with market participants and a high-level technical description of the market design to be implemented by the project.

The partners of the AT-PL-4M MC Project for integrating Czechia, Hungary, Romania and Slovakia into MRC have published an information paper

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> Open AT-PL-4M MC information paper provided by MAVIR (pdf, 732.98kB)

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ACER consultations on balancing market

20.02.2020

A core component of the European Energy Union is the integration of the national balancing markets into a pan-European market. To promote this essential objective, the European Commission Regulation establishing a Guideline for Electricity Balancing became effective in December 2017. The European transmission system operator (TSOs) are expected to work proactively towards this goal and have since responded to this expectation with transnational cooperation, proposals, innovative concepts and their implementation.

The Agency for the Cooperation of Energy Regulators (ACER) launched two public consultations on methodologies in line with the respective EU regulation. The first consultation concerns the way for establishing a list of standard products for capacity balancing of frequency restoration reserves and replacement reserves. This methodology provides the rules for efficient cross-border exchange, sharing and procurement of reserves. The second deals with the methodology for establishing a co-optimised allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves. All interested parties are invited to submit their comments by 10 March 2020.

Before the results of the two consultations are published, ACER will organise a workshop in its premises in the Slovenian capital of Ljubljana on 26 February. This workshop will give stakeholders an insight into the procedures related to these consultations and into the discussions between ACER, the National Regulatory Authorities (NRAs) and the TSOs.

ACER has launched two public consultations on methodologies for the integration of balancing markets (picture of Europe from space by Alexander Gerst, ESA/NASA)

Linkup
> See ACER press release (html)
> Direct access to 1st consultation (html)
> Direct access to 2nd consultation (html)
> Visit ACER workshop webpage (html)

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Austro-German cooperation on control reserve

05.02.2020

The Austrian transmission system operator (TSO) APG and the four German TSOs 50Hertz, Amprion, TenneT, and TransnetBW are intensifying their cooperation in terms of balancing energy. Since December 2019, the five TSCNET shareholders have been exchanging minutes reserve, i.e. the provision of short-term power reserves to balance fluctuations in generation and consumption that affect frequency. Minutes reserve comes into play after primary control and secondary reserve, the two short-term effective balancing energies. Austria and Germany are thus the first countries in Europe to cooperate on all types of control reserve and make a significant contribution to secure electricity supply in Europe.

The cooperation with the project name “GAMMA” (German-Austrian Manual Merit Order Activation) is trendsetting, as it is the first collaboration in the field of minutes reserve to fulfil the objectives of the EU guideline for electricity balancing on a regional scale. Germany and Austria are testing a regional internal market for the joint utilisation of minutes reserve and will contribute their new experience with the integration of control energy markets to the European “MARI” (Manually Activated Reserves Initiative) project.

Beyond the requirements of the guideline, the Austro-German cooperation will be expanded in February 2020 to include the joint procurement of secondary reserves. It is intended that in an initial phase up to 80MW, later up to 280MW, can be procured across borders. The cost-benefit analysis for the allocation of cross-border transport capacities was jointly developed by the cooperating TSOs. It compares the market value of cross-border transmission capacity for the day-ahead market with that of the secondary reserve, thereby optimising procurement and determining the amount of cross-border transmission capacity allocated to the secondary reserve. This cooperation also represents a lighthouse project in Europe and anticipates the goals of the EU Clean Energy for All Europeans Package.

The Austrian TSO APG and the four German TSOs 50Hertz, Amprion, TenneT, and TransnetBW exchange minutes reserve in a regional internal market

Linkup
> See 50Hertz press release, in German (html)
> See Amprion press release, in German (html)
> See TransnetBW press release, in German (html)

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New RSC to be established in Thessaloniki

23.12.2019

As reported by the European Network of Transmission System Operators for Electricity (ENTSO-E), significant progress is being made on pan-European coverage with regional security coordinators (RSCs). The transmission system operators (TSOs) of the South-East Europe and Greece-Italy Capacity Calculation Regions (CCRs), namely ESO-EAD (Bulgaria), IPTO (Greece), Terna (Italy) and TSCNET shareholder Transelectrica, the TSO from Romania, have agreed to establish a new RSC in the northern Greek city of Thessaloniki.

The new company will provide all regional RSC services for both CCRs according to the requirements of the EU guideline on capacity allocation and congestion management (CACM). In line with the experience gained in other CCRs, the RSC in Thessaloniki will promote regional TSO cooperation and strengthen system and market operations. The further development of the plans will be reported in the course of 2020.

The TSOs from the South-East Europe and Greece-Italy CCRs will establish an RSC in Thessaloniki (picture showing Thessaloniki, Greece)

Linkup
> See ENTSO-E press release, html

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TSO proposals on capacity balancing submitted

20.12.2019

In December 2017, the European Commission Regulation establishing a guideline for electricity balancing came into force. The European transmission system operators (TSOs) were given two years to prepare two proposals aimed at promoting market integration through the procurement and use of standard products for capacity balancing in an efficient, economic and market-based manner. Considering feedback from stakeholders, public consultations and workshops, these two proposals have now been submitted by the European Network of Transmission System Operators for Electricity (ENTSO-E) to the Agency for the Cooperation of Energy Regulators (ACER).

The “Proposal for a methodology for co-optimised allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserve” specifies how cross-zonal capacity should be allocated in a single optimisation process to bids for energy exchange as well as for the exchange of balancing energy or the sharing of reserves. The process suggested involves contracting on a day-ahead basis and meets the requirements of the “Clean Energy for All Europeans Package”.

The “Proposal for a list of standard products for balancing capacity for frequency restoration reserves and replacement reserves” details the minimum harmonisation criteria for the exchange of balancing capacity set by all TSOs. To respect the specific conditions of each region, additional characteristics may be defined and harmonised by two or more TSOs deciding to jointly provide balancing capacity.

ENTSO-E stresses that substantial work still needs to be done on the implementation and application of these proposals. Close interaction between neighbouring TSOs is essential for the establishment of balancing capacity cooperation.

ENTSO-E has submitted two TSO proposals on capacity balancing to ACER (picture showing Ljubljana, capital of Slovenia and home of ACER)

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Multi Regional Coupling expanded by the end of 2020

17.12.2019

The Multi Regional Coupling (MRC) of the European electricity market is to be substantially enhanced by connecting the so-called 4M Market Coupling Countries (4M MC), i.e. the Czech Republic, Hungary, Romania and Slovakia, to the Europe-wide MRC. This will establish Single Day-Ahead Coupling across 23 European countries.

In preparation for this market integration, the so-called Interim Coupling Project (DE-AT-PL-4M MC Project) was launched. It has now completed the design phase and is entering the implementation phase. This provides the Nominated Electricity Market Operators (NEMOs) and transmission system operators (TSOs) from Austria (APG), Germany (50Hertz, Amprion, TenneT, and TransnetBW), Poland (PSE) and the 4M MC countries (ČEPS, MAVIR, Transelectrica and SEPS) with a sound basis for announcing the MRC inclusion for the third quarter of 2020.

The AT-PL-4M MC Project introduces implicit capacity allocation based on Net Transfer Capacity (NTC) at six borders (PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, HU-AT). The competent National Regulatory Authorities (NRAs) welcome the progress made and the synergies from the project, which will facilitate the introduction of Flow-Based Market Coupling in the Core Capacity Calculation Region (Core CCR), which is the ultimate target.

The AT-PL-4M MC project for integrating Czechia, Hungary, Romania and Slovakia into MRC has entered the implementation phase.

Linkup
> See PSE press release (html)
> See SEPS press release (html)
> Open joint press release (pdf, 216.14kB)

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ENTSO-E reports on implementation of market network codes

04.09.2019

The EU network codes are a concise set of rules to promote the harmonisation of national electricity markets and regulations on the way to the European Energy Union. A fully functioning and interconnected internal energy market will strengthen Europe’s competitiveness, contribute to the integration of more renewable energies and ensure security of supply.

The network codes are divided into three families: connection, operation and market. The guidelines for Capacity Allocation and Congestion Management (CACM) and for Forward Capacity Allocation (FCA) are an integral part of the market code family. The progress made by the European transmission system operators (TSOs) in implementing these regulations is documented in two reports which have now been published by the European Network of Transmission System Operators for Electricity (ENTSO-E).

The “ENTSO-E Market Report 2019” outlines the progress in day-ahead and intraday coupling as well as in FCA, and the “ENTSO-E Report on Capacity Calculation and Allocation 2019” covers the capacity calculation in the ten capacity calculation regions (CCRs). The latter report also assesses capacity calculation and allocation based on statistical and quality indicators.

ENTSO-E has released two reports on the TSO implementation of market network codes (picture: ENTSO-E)

Linkup
> See ENTSO-E press release (html)
> Open Market Report (pdf, 2.85MB)
> Open Report on Capacity Calculation and Allocation (pdf, 2.97MB)

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Swissgrid analyses critical situation

27.05.2019

On the critical situation in the Swiss transmission grid on Monday, 20 May 2019, when individual grid elements were considerably overloaded or threatened to be overloaded, TSCNET shareholder Swissgrid, the Swiss transmission grid operator (TSO), has already completed an initial analysis. On that day, with a high Swiss domestic electricity production of around 12 GW, a total of around 4.5 GW was exported, most of it to Germany. Since the load flows typically run in the opposite direction, this atypical situation led to security breaches in the grid.

For reasons unknown, the European grid forecasts did not anticipate that export volumes would increase in the short term from Sunday to Monday. Swissgrid had thus to resolve the grid security breaches in real-time operation in cooperation with colleagues from the European TSOs. This incident shows that the forecasts can deviate considerably from the actual load flows. It also indicates the crucial importance of integrating all transmission grids in Europe, including Switzerland, into the grid modelling, so that any threats to grid security can be identified in advance and coordinated measures can be taken.

However, since Switzerland is excluded from market coupling due to the lack of an electricity agreement with the EU, the deviations between forecasts and effective load flows are likely to increase. An agreement, on the other hand, would include Swissgrid in the models for load flow calculation and capacity allocation of the European partners and provide the TSO with better information on the load flows through Switzerland.

Swissgrid presents first analysis of the grid security breach from 20 May (picture: Swissgrid)

Linkup
> See Swissgrid news release, in German (html)

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Core CCR project meeting hosted by HOPS

20.05.2019

Sixteen transmission system operators (TSOs) from the heart of Europe are participating in the Core Capacity Calculation Region (CCR) project in order to implement a decision taken by the Agency for the Cooperation of Energy Regulators (ACER) in November 2016 to merge the existing regional initiatives of Central Eastern and Central Western Europe into the European core region. These TSOs – including the twelve TSCNET shareholders 50Hertz, Amprion, APG, ČEPS, ELES, HOPS, MAVIR, PSE, SEPS, TenneT, Transelectrica, and TransnetBW – are strongly committed to implementing all CCR-related obligations in accordance with the respective network codes and guidelines of the European Commission.

Last week, the Croatian TSO HOPS organised a two-day project team meeting with representatives of all 16 Core CCR TSOs to calculate long-term cross-border transmission capacities compliant with the specifications on Capacity Allocation and Congestion Management (CACM). As one of the two Regional Security Coordinators (RSCs) for Core CCR TSOs, TSCNET Services was also part of the meeting. The concrete objective of the meeting in the Croatian capital of Zagreb was to prepare a proposal for an appropriate calculation methodology. This proposal will be open for public consultation from 10 June 2019. During the meeting participants also visited the HOPS control centre.

HOPS hosted a Core CCR project meeting in Zagreb (picture: HOPS)

Linkup
> See HOPS press release, in Croatian (html)

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