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19/09/2012

Regulators view on handling of losses or other algorithm requirements. NWE day-ahead pric coupling - CRCC. 19/09/2012. Background. Grid losses are a physical reality of HVDC (and AC) grids.

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19/09/2012

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  1. Regulators view on handling of losses or other algorithm requirements NWE day-ahead pric coupling - CRCC 19/09/2012

  2. Background • Grid losses are a physical reality of HVDC (and AC) grids. • In current Market Coupling settings, grid losses are not included in the social welfare maximization except for BritNed. • In 2011, Baltic Cable and NorNed asked EMCC to develop a grid loss compensation mechanism. • In July 2012 Baltic Cable approached EI and BNetzA to introduce a loss functionality in ITVC by October 2012. • EMCC has tested all systems and recommends introduction provided regulatory support. • EI and BNetzA allowed introduction on Baltic Cable for an interim period until common harmonized solution is achieved within the NWE region for the price coupling solution. • Discussion regarding NorNed between NMa, NVE, TenneT and Statnett is ongoing.

  3. Handling of losses in NWE • NRA meeting on handling of losses on HVDC cables in market coupling 22/08/2012 • Dera, BNetzA, EI, EMV, NVE, NMa and CRE • Main conclusion: • Grid losses are a social cost that should be taken into account in the social welfare maximization by market coupling. • A harmonized approach to take into account HVDC losses should be introduced in NWE price coupling. • An approach which ensures that the full capacity is offered to the market via the algorithm is in line with EU Regulation 714/2009, even though in some market situations the capacity may not be used as a result of the social welfare maximization by market coupling. • Approach should ensure that full ATC is imported in case the cable is fully used as a result of social welfare maximisation by market coupling. • Proposal from NWE TSOs requested for IG 19/09/2012

  4. Discussion • Harmonization • Frictions with other market segments (long-term, intraday)? • Any other issues

  5. Thank you for your attention! www.acer.europa.eu

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