New Local Implementation Project under SIDC

09.07.2020

European transmission system operators (TSOs) are committed to the European Energy Union by collectively working towards an integrated European electricity market. A key component for market integration is cross-border Single Intraday Coupling (SIDC), which was introduced as XBID in June 2018. SIDC is designed to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. Currently, the markets of 22 countries are coupled through SIDC: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Spain, and Sweden. With the inclusion of the Slovakian Nominated Electricity Market Operator (NEMO) OKTE and TSCNET shareholder SEPS, the TSO from Bratislava, the project also extends to Slovakia.

Within the framework structure of the SIDC, Local Implementation Projects (LIPs) provide for the expansion of the market coupling, and a new project has now been established as LIP 17. The NEMOs and TSOs from the Czech Republic, Hungary, Poland, and Slovakia – the TSCNET shareholders ČEPS, MAVIR, PSE, and SEPS – have proposed to implement SIDC across the borders between Slovakia-Czechia, Slovakia-Hungary, and Slovakia-Poland. The SIDC Steering Committee approved on 7 July and the LIP 17 roadmap will now be elaborated in more detail.

The SIDC solution comprises a common IT system with a shared order book, a capacity management module, and a shipping module. In addition to the TSOs mentioned above, the TSCNET shareholders 50Hertz, Amprion, APG, ELES, HOPS, TenneT, Transelectrica, and TransnetBW as well as the TSCNET customers Creos from Luxembourg and Energinet from Denmark are also part of SIDC.

A new LIP for the introduction of intraday trading across the borders of Czechia, Hungary, Poland, and Slovakia has been established under SIDC

Linkup
> See MAVIR press release (html)
> See PSE press release (html)
> See SEPS press release (html)

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Successful start of FCR auctions

01.07.2020

The cooperation on regional procurement and exchange of frequency containment reserve (FCR) is a voluntary initiative of eight transmission system operators (TSOs): the six TSCNET shareholders 50Hertz, Amprion, and TransnetBW from Germany, APG from Austria, Swissgrid from Switzerland, and the Dutch-German TSO TenneT, as well as Elia from Belgium and the French TSO RTE. The FCR project is the first regional cooperation for a common market based on the methodology for the exchange of control reserves set out in the EU Guideline on Electricity Balancing. Within the scope of a cooperation model with Amprion, the Luxembourg TSCNET customer Creos is also involved.

The next milestone in the development of the largest European market for primary balancing power reserve has now been reached, as the first D-1 auction for FCR with 4-hour products was successfully conducted on 30 June 2020. This means, the FCR cooperation reduces the product length from one day to four hours and thus the market for primary balancing power is brought closer to real time.

Due to stronger competition between service providers and technologies, the joint auction allows TSOs to procure FCRs at minimum cost to end-users while offering a large common market for all providers of balancing services. It also increases the market attractiveness for short-term flexibility, limits price volatility and improves the security of grid operation by executing cross zonal procurement of FCR. The FCR market, already the largest in Europe, will be extended to western Denmark and Slovenia in the first quarter of 2021, so that with Energinet and ELES two further TSCNET shareholders will broaden the project.

The FCR cooperation successfully conducted the first D-1 auction for FCR with 4-hour products 

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> See Swissgrid news release (html)

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Luxembourg integrated into FCR cooperation

01.06.2020

Eight central European transmission system operators (TSOs) cooperate in the regional procurement and exchange of Frequency Containment Reserve (FCR). Their joint FCR project is the first regional cooperation in Europe to implement market harmonisation in accordance with the EU Guideline on Electricity Balancing. The participating TSOs are APG, 50Hertz, Amprion, TransnetBW, and Swissgrid – the Austrian, German and Swiss TSCNET shareholders –, the Dutch-German shareholder TenneT as well as the Belgian TSO Elia and the French TSO RTE. It is intended to extend the joint FCR procurement towards western Denmark, so that the central European TSOs are supplemented by Energinet from Denmark as a non-active member.

Luxembourg was missing in the cooperation so far, but cross-border primary control reserve (PCR) between Germany and Luxembourg is now also possible: Since 1 June 2020, balancing service providers (BSPs) from Luxembourg are participating in the joint tender for FCR cooperation. For this purpose, the TSO Amprion, whose German control area is bordering the Grand-Duchy, and the Luxembourgian TSCNET customer Creos have developed a cooperation model. Under this model, Amprion assumes the role of the connecting TSO, carries out the prequalification of the BSPs, concludes the framework agreement for PCR, and takes over the settlement with the BSPs from the Creos control area.

Since Amprion and Creos operate a joint load-frequency-control area, a pooling of technical units within this common area is permissible. Thus, a pool can include Luxembourgian as well as German units that provide balancing services. This means that a BSP may combine generation units or controllable consumer loads from both countries and offer them collectively on the PCR market.

The central European FCR cooperation was extended to Luxembourg (picture: Cedric Letsch)

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> See Amprion press release, in German (html)

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Nordic Power Solutions Report

29.04.2020

The Nordic transmission system operator (TSOs) of Finland, Norway, Sweden, and the Danish TSCNET customer Energinet have updated their 2018 report “Solutions for a changing Nordic power system”. The Solutions Report 2020 provides an overview of the joint Nordic TSO projects that have been identified as crucial to address the challenges in the Nordic energy system.

As in the rest of Europe, the Nordic power system is undergoing the most significant changes since the liberalisation of the electricity markets, and here, too, these changes are mainly based on a new power generation mix with volatile generation and distributed resources. The Power Solutions Report 2020 draws a common picture of the progress of the new solutions in the Nordic power system that respond to these changes. In addition to reporting on the projects, the report also features comments from stakeholders on the tasks and the challenges they still see in the Nordic power grid.

Energinet and the other Nordic TSOs have published their joint Nordic Power Solutions Report 2020 (picture: Bo Kamstrup, Pixabay)

Linkup
> See Energinet press release (html)
> Open Nordic Power Solutions Report (pdf, 10.62MB)

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Launch of the Equigy balancing platform

25.04.2020

To ensure the stability of the grid frequency, transmission system operators (TSOs) all over Europe respond to the increasingly volatile generation of energy from renewable sources and to the loss of reactive power from large power plants. The challenge of keeping production and consumption in balance does not stop at national borders, for which reason the TSCNET shareholders Swissgrid, the TSO from Switzerland, and TenneT, the Dutch-German TSO, are cooperating with the Italian TSO Terna in the crowd balancing platform Equigy. The platform is based on blockchain technology and the internet of things. It is conceived as digital link between the so-called TSO ancillary service markets and the market players that deliver balancing services. TSCNET customer Energinet, the Danish TSO, has formally expressed its intention to join the consortium, which would extend Equigy’s roll-out to Denmark.

With their cross-border cooperation, the consortium of Swissgrid, TenneT, and Terna wants to set a new electricity-balancing standard, improve the integration of renewables, and provide more flexibility to reduce the renewables’ random impact on the grid. As with previous, regionally limited balancing projects, Equigy aims to unlock flexibility by actively involving small and distributed consumer-based generation and consumption units in grid stabilisation. This involvement enables owners of small-scale assets to play a key role in the transformation of the energy sector by optimising their interaction with the grid. Since Equigy processes multiple small transactions, it requires a secure and scalable solution that ensures trust and transparency between all parties involved. The common vision of the participating TSOs is clear: Millions of households will stabilise the electricity grid in the future.

Open and free of charge
Equigy is based on block chain technology to execute transactions from millions of individual systems securely, cost-effectively, and transparently. This creates a single, immutable, and secure data source from which all parties can benefit. Precise rules and regulations allow consumers, businesses, and manufacturers to easily market the flexible capacity of electric vehicles, household batteries, and heat pumps in all participating countries, regardless of location, thereby simplifying access to the electricity market. At the same time, all local or regional flexibility platforms can be connected to the Equigy platform so that as much flexibility as possible can be bundled. This means: Equigy is not exclusive and can be integrated into existing grid stabilisation processes. The technology and software are open-source and provided free of charge to promote the development of secondary applications in the energy value chain. Equigy has now been successfully launched, and the pilot project to test the technology will run until the end of 2020.

In Switzerland, the project has attracted a lot of interest. Numerous partners have expressed an interest in participating. Yves Zumwald, CEO of Swissgrid, comments: “We are proud to be a founding partner of Equigy. It’s only natural that this ambitious initiative is being driven by TSOs. We are not subject to commercial constraints and are able to operate the new platform adopting a neutral position.” Manon van Beek, CEO of TenneT, can also be pleased to have various Equigy partners in Germany and the Netherlands. She emphasises the European dimension of the project: “Equigy originated from European cooperation. In a common European market, we will have to develop solutions together. We already have the same sockets. It would be a shame and unnecessarily expensive to develop different systems.”

Expansion to the north
The Danish TSO Energinet recognises the potential of Equigy and is highly interested in participating. The consortium behind Equigy appreciates this interest. Swissgrid, TenneT, Terna, and Energinet have thus signed a Letter of Intent in which the parties confirm their common interest in including Energinet in Equigy. Energinet will now examine the possibilities of becoming part of the cooperation. All partners aim to take a decision on Energinet’s accession before the end of this year. Søren Dupont Kristensen, CEO of Energinet Electricity System Operator, explains: “We are now investigating the potential of this platform in the context of the Danish energy system. Based on our findings, we will decide on joining the collaboration regarding the platform.”

The blockchain based crowd balancing platform Equigy has been launched by Swissgrid, TenneT, and Terna

Linkup
> See Energinet news release (html)
> See Swissgrid news release (html)
> See TenneT news release (html)
> Visit Equigy website (html)

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SIDC: Massive growth in trading volume

02.04.2020

European cross-border Single Intraday Coupling (SIDC) was introduced in June 2018 (then called XBID) to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. The overarching objective is the integration of the European energy market. In November 2019, SIDC was extended in a second go-live, so that currently the markets of 22 countries are coupled through SIDC: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Luxembourg, Norway, the Netherlands, Portugal, Spain, Sweden (first go-live), and Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovenia (second go-live).

The Nominated Electricity Market Operators (NEMOs) from the seven countries of the second go-live report significant growth in trading volume in the coupled intraday market. The Hungarian NEMO HUPX, for example, recorded an average monthly trading volume of around 75,600MWh from December 2019 to February 2020 compared to 7,600MWh in the same period of the preceding year; in the Czech Republic, the volume has increased eightfold. The other NEMOs are also registering significant growth rates. A total of 36 million trades have been executed since SIDC first went live, and the system continues to operate reliably after the second wave.

The SIDC solution is based on a common IT system with a shared order book, a capacity management module and a shipping module. The TSOs cooperating in SIDC include the TSCNET shareholders 50Hertz, Amprion, APG, ČEPS, ELES, HOPS, MAVIR, PSE, TenneT, Transelectrica and TransnetBW, as well as the TSCNET customer Creos from Luxembourg and Energinet from Denmark. With the accession of the NEMO OKTE and further TSCNET shareholder SEPS, the TSO from Bratislava, the project has meanwhile been extended to Slovakia. A third go-live to expand continuous cross-border intraday trading to Greece and Italy is expected in the first quarter of 2021.

The seven new members of SIDC for a single integrated European intraday market are reporting enormous growth in trading volume

Linkup
> See Amprion press release (html)
> See PSE press release (html)

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Corona cuts consumption

26.03.2020

Electricity consumption in Europe has fallen significantly because of the restrictions imposed by the corona crisis. In particular, the drastic reduction in industrial production is likely to have a significant impact. The London-based think tank Ember has calculated that demand in the entire EU has fallen by 2 to 7% in the last week compared to the previous week. The analysts at Ember used data on electricity demand provided by the European Network of Transmission System Operators for Electricity (ENTSO-E), adjusted for the weather-related factor.

A survey of 22 individual countries shows that Italy, France, and Spain are the most affected countries. In these countries, the decline in demand was twice as strong as in other countries. In Italy, which is currently most afflicted by the corona pandemic, electricity consumption fell by 20% within two weeks. TSCNET shareholder APG, the transmission system operator (TSO) from Austria, also reports that consumption data in some specific Austrian grid areas are 10 to 20% below the previous year’s figures. The national average is 10%, which according to Gerhard Christiner, CTO of APG, reflects the pan-European development.

Like all European TSOs, APG is confronted with major challenges, but considers that it is well prepared for the crisis, both technically and in terms of personnel. Of course, each individual TSO has to adapt its operations and measures to the conditions under the pandemic. TSCNET customer Energinet, the Danish TSO, for instance, has introduced special guidelines to avoid physical contact on its construction sites. Notwithstanding that a functioning transmission system is essential for modern life at all times, Henrik Riis, CEO of Electricity Transmission at Energinet, calls it “an important social task to keep the wheels turning and do our part to support the Danish economy.” However, this task is performed with all due care: “We take the risk on spreading of infectious disease very seriously.”

While the specialists from the TSOs and from TSCNET Services are on duty around the clock, many shops and production sites in Europe have to remain closed due to the corona pandemic

Linkup
> See Ember research on reduced electricity demand (html)
> See APG news release, in German (html)
> See Energinet news release (html)

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COBRAcable proves to be a great success

06.03.2020

It is now half a year since TSCNET customer Energinet, the transmission system operator (TSO) from Denmark, and TSCNET shareholder TenneT, the Dutch-German TSO, made COBRAcable available to the market. The high-voltage DC cable with a length of about 325km and a capacity of 700MW is the first direct connection between the electricity markets of Denmark and the Netherlands. The basic idea behind COBRAcable is to compensate for the volatility of wind power. Consequently, the Netherlands imports electricity via the cable on days with large Danish wind power generation, while on days with little wind in Denmark the electricity is transported in the opposite direction.

This works perfectly, as the interconnector’s transmission data from the first six-month period prove: In total, Denmark has imported almost 700GWh via the COBRAcable and the Netherlands almost 1,400GWh. On average, COBRAcable was operated at full capacity 79% of the time during the last half year. The impressive traffic on this binational connection proves its adequacy through its operation. The new interconnector therefore substantially contributes to the energy transition by exchanging volatile renewable energy across borders and additionally creates a trading profit on the spot market for electricity – a multiple benefit for nature, society and the companies involved.

The transmission data from the COBRAcable of Energinet and TenneT confirm a high level of traffic on the line (picture: screenshot taken from Energinet-video “Constructing the green COBRAcable”, Vimeo)

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> See Energinet press release (html)

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Onshore converter for the Combined Grid Solution

31.01.2020

The Danish-German Combined Grid Solution (CGS) in the Baltic Sea is the world’s first offshore interconnector to use national grid connections of offshore wind farms to link the transmission systems of two countries. For this purpose, submarine cables were laid between the offshore transformer stations of the German wind farm Baltic 2 and the Kriegers Flak wind farm in the Danish part of the Baltic Sea. The CGS is a joint project of TSCNET shareholder 50Hertz, one of the four German transmission system operators (TSOs), and TSCNET customer Energinet, the TSO from Denmark.

The Bentwisch substation near the Baltic port city of Rostock houses the German onshore converters for the CGS. Here 50Hertz has installed a double converter system including a back-to-back converter. This is essential for balancing the asynchronous transmission systems of Germany and Eastern Denmark: The AC from the Nordic synchronous area is converted into DC and directly back into AC, now adapted to the European synchronous area.

50Hertz has now successively energised and commissioned all converter components in Bentwisch. The new equipment and further extensions of the substation had to be individually synchronised with the control technology in a series of individual testing and commissioning steps. The operational readiness of the double converter system in Bentwisch marks another important milestone on the way to the commissioning of the entire CGS.

The German onshore converter for the Danish-German offshore interconnector Combined Grid Solution has been commissioned by 50Hertz (picture: Jan Pauls / 50Hertz)

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> See 50Hertz project news (html)

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Single Intraday Coupling expanded

08.11.2019

Europe-wide intraday coupling is a key component for the completion of the European internal energy market. To help achieve this goal, the European cross-border Single Intraday Coupling (SIDC) solution was launched in June 2018 (then called XBID), standing for a significant step towards a single integrated continent-wide intraday market. A market of this kind increases the overall efficiency of intraday trading through effective competition, increased liquidity and more efficient use of generation resources across Europe. The SIDC solution is based on a common IT system with a common order book, a capacity management module and a shipping module.

The participating countries were initially Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain and Sweden. SDIC will now be expanded and continuous electricity trading will be possible across seven further countries: Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania and Slovenia. Nominated electricity market operators (NEMOs) and the participating transmission system operators (TSOs) have confirmed the go-live of the extended SIDC and two additional local implementation projects on 19 November with first deliveries on 20 November.

TSOs already collaborating in SIDC include the TSCNET shareholders 50Hertz, Amprion, APG, TenneT, TransnetBW and Energinet as well as the TSCNET client Creos from Luxembourg. With the second wave, six more shareholders follow, namely ČEPS, ELES, HOPS, MAVIR, PSE and Transelectrica.

The SIDC solution for a single integrated European intraday market is expanded by seven countries, including Croatia, Czechia, Hungary, Poland, Romania and Slovenia

Linkup
> See Energinet press release (html)
> See PSE press release (html)
> See APG press release, in German (html)

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