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 adjusts export capacities to Germany

03.09.2019

All participants in the integrated European electricity market have agreed on common definitions of the transmission capacity for international electricity exchanges, including the Net Transfer Capacity (NTC). The NTC is an important basis to anticipate and plan cross-border transactions. Thus, the establishment of NTCs is one of the essential tasks of the transmission system operators (TSOs) to enable market participants to carry out energy trading without jeopardising grid stability. TSCNET shareholder Swissgrid, the Swiss TSO, along with the neighbouring TSOs, determines the NTC values on all four Swiss borders on an annual, monthly and daily basis.

In the summer of 2019, Swissgrid had to reduce the NTC on the national northern border to Germany to ensure reliable grid operation. Originally, a static NTC value of 4,000 MW for exports from Switzerland to Germany had been defined with the neighbouring German TSOs. However, the load flows between the two countries have changed in the last two years. Situations in which Germany is dependent on imports, especially from Switzerland, occurred increasingly in the summer months. As a result, the previously typical north-south flow towards Italy reversed to a south-north flow towards Germany.

Other simultaneous factors also affected the Swiss grid load, such as the high level of Swiss hydropower production, the inspection times of the Swiss nuclear power plants and the seasonal decommissioning and construction work on the grid. In combination with the growth in exports to Germany, this led to significantly higher load flows in the Swiss 220kV grid, which were additionally reinforced by increased export opportunities from France to Germany through Flow-Based Market Coupling (FMBC) in the Central Western Europe (CWE) region and transit through Switzerland.

In fact, exports of up to 8,000MW were recorded on several days this summer. For this reason, Swissgrid, together with its neighbouring TSOs, has limited the NTC values for a secure grid operation. Swissgrid continues to cooperate closely with these TSOs to optimise cross-border capacity. The current static value of 4,000MW is expected to be substituted by seasonally adjusted dynamic NTC values. However, due to the implementation of the “Clean Energy for All Europeans Package” (CEP) of the European Commission, it is not yet possible to predict exactly how the NTC values at Switzerland’s northern border will develop.

Swissgrid adjusts the NTC values for electricity flows at the Swiss-German border

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> See Swissgrid news release (html)

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Second go-live wave of XBID

13.06.2019

The successful go-live of XBID, the European cross-border Single Intraday Coupling (SIDC) solution, on 12/13 June 2018 was a significant step towards a single integrated continent-wide intraday market. Such an integrated market increases the overall efficiency of intraday trade through effective competition, increased liquidity and more efficient utilisation of generation resources across Europe. Today the first anniversary of XBID is celebrated and over 16 million trades have been executed since its launch.

The SIDC partners look back on a successful first year of operation with a stable and robust system performance as well as a high and growing number of trades across Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain, and Sweden. The integration of seven additional countries into the SIDC region is expected in the fourth quarter of 2019. A pre-launch event for the second wave is planned for the beginning of October 2019 and a trial period will also be arranged with the market parties. The countries for this second go-live wave are Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovenia.

The TSOs already cooperating in XBID include the TSCNET shareholders 50Hertz, Amprion, APG, TenneT, and TransnetBW as well as the TSCNET client Creos from Luxembourg. Further shareholders are to follow with the second wave, namely ČEPS, ELES, HOPS, MAVIR, PSE, and Transelectrica.

XBID, the SIDC solution for a single integrated European intraday market, celebrates its first anniversary

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> See ENTSO-E press release (html)

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Amprion presents CWE market report

03.06.2019

Amprion, one of the four German transmission system operators (TSOs), has published its market report for the period 2015 to 2018. In this comprehensive document, the TSCNET shareholder investigates the development of the electricity market in the Central Western Europe (CWE) region using data from Flow-Based Market Coupling (FBMC). The CWE countries (Austria, Belgium, France, Germany, Luxembourg, and the Netherlands) implemented FBMC in May 2015, which allows TSOs to allocate cross-border capacity and maximise market efficiency without compromising grid stability. This is due to the inclusion of the entire regional network in the coupling of electricity markets.

The control area of Amprion is a central hub for cross-border electricity trading in the CWE region. With its transmission capacities, the TSO can export up to eight GW of electricity at peak times and thus generate more than half of Germany’s total export performance. Transmission via the Amprion grid thus also supports security of supply in neighbouring countries, especially in critical situations such as winter 2016/2017.

Amprion’s analysis shows that the integration of the CWE markets is already well advanced and continues to progress. At the same time, the growing difference between positive and negative price peaks on the electricity exchanges also highlights the challenge of the highly volatile supply of renewable energies. Dr. Hans-Jürgen Brick, Chief Commercial Officer and CFO of Amprion, comments: “The mutual dependency in Europe on system security will continue to rise. We are therefore doing everything physically possible to connect the national markets and networks even better.”

Amprion has published a comprehensive market report for the CWE region

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> See Amprion press release (html)
> Open Amprion market report (pdf, 3,43MB)

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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)

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> See Swissgrid news release, in German (html)

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Kick-off for Croatian-Serbian-Bulgarian market integration

28.02.2019

A first group meeting in the Serbian capital of Belgrade was the initiation of the trilateral market coupling between Croatia, Serbia, and Bulgaria. The successful event was attended by representatives of the three national transmission system operators (TSOs), including the Croatian TSCNET shareholder HOPS, and the three respective electricity exchanges as well as regulatory authorities.

Together, the parties involved have committed themselves to make every effort and providing the necessary resources to ensure the feasibility of the project and its timely implementation. The final objective is to establish a trilateral market coupling according to the European Multi-Regional Coupling (MRC) specifications.

The Croatian-Serbian-Bulgarian market coupling was initiated by a first meeting of the main stakeholders (photo of Belgrade: falco/Pixabay)

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

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Croatian-Slovenian market coupling in June

30.04.2018

A significant step towards an integrated European power market is expected to be taken on 19 June 2018, the scheduled launch date for the Croatian-Slovenian market coupling project. Since spring 2017, the TSCNET shareholders ELES, the Slovenian transmission system operator (TSO), and HOPS from Croatia have been preparing the market integration to establish day-ahead capacity allocation and congestion management at the Slovenian-Croatian border in accordance with the respective specifications of the European Commission.

In May and June, the partner TSOs will be performing trial runs on the market coupling processes and procedures. From the launch date onwards, capacity for the Croatian-Slovenian border will be implicitly allocated through the Price Coupling of Regions (PCR) solution for the day-ahead markets. This makes the border a part of the Multi-Regional Coupling (MRC) and for the first time, the Croatian bidding zone will be included in the internal European market via the Slovenian bidding zone.

> See ELES press release (html)
> See HOPS press release, in Croatian (html)
> Open joint press release (pdf, 505kb)

Picture: Croatian-Slovenian boundary river Kupa/Kolpa by Miroslav Vajdic (CC BY-SA 2.0)

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Croatian-Slovenian market coupling

30.06.2017

The TSC members ELES, the Slovenian transmission system operator (TSO), and HOPS from Croatia are making a substantial move towards the pan-European power market integration. In collaboration with power exchanges BSP and CROPEX and with support from the respective national regulatory authorities, the two TSOs have initiated an ambitious cross-border project.

The main objective of the TSO cooperation is to establish day-ahead capacity allocation and congestion management at the Slovenian-Croatian border in accordance with the specifications of the European Commission on this matter. A design project phase started in April 2017 and the definite implementation of the market coupling is scheduled for the second quarter of 2018.

> See ELES press release (html)
> See HOPS press release, in Croatian (html)
> Open joint press release (pdf, 447 kb)

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Austrian-Slovenian Market Coupling

29.02.2016

In a joint press release together with power exchanges BSP and EPEX SPOT, the two TSC members APG, the Austrian transmission system operator (TSO), and ELES, the Slovenian TSO, informed about progress in the coupling of the power markets from Austria and Slovenia. The project following the European target model for day-ahead Capacity Allocation and Congestion Management is scheduled to go live in mid-2016.

> Open press release (pdf, 198kb)

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Operating at full capacity

24.07.2015

A conceptual task force (CTF) consisting of dedicated experts at TSC has developed a coordinated intraday capacity calculation (IDCC) concept. It proposes an advanced hybrid-coupling model and takes account of the requirements set by the capacity allocation and congestion management (CACM) guideline for the implementation of a single energy market across Europe. Although the concept is based on flow-based (FB) capacity calculation, it allows the use of available transfer capacities (ATCs) as well.

The concept describes two high-level business processes for IDCC, one based on a day-ahead common grid model (CGM), and the other based on intraday CGMs. A key element in the IDCC concept is the availability of information close or at least closer to real-time. In this context, the task force developed a new GSK methodology (generation shift key/s). The conceptual work is to be followed by a proof-of-principle stage. The concept serves as a starting point for a coordinated IDCC concept supported by the European transmissions system operators (TSOs).

> Open IDCC concept (pdf, 3.1mb)

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