Imbalance Settlement Spreadsheet Training

1. Imbalance Settlement Spreadsheet Training 16/12/2016

2. Welcome and Introduction; • Module 1. High level overview of Imbalance Settlement; • Module 2. Topic-by-Topic overview of Imbalance Settlement: • Module 2a. Imbalance Component; • Module 2b. Bid Offer Acceptance Quantities and Premium/Discount Component; • Module 2c. Non-Delivery; • Module 2d. Bias; • Module 2e. Non-Firm; • Module 2f. Trade Opposite TSO; • Module 2g. Undo; • Module 2h. Curtailment. • Lunch; • Module 3. Start-to-Finish Imbalance Settlement Spreadsheet Example; • Question and answer session on tool and code rules; • AOB and wrap up.

3. Welcome and Introduction; • Module 1. High level overview of Imbalance Settlement; • Module 2. Topic-by-Topic overview of Imbalance Settlement: • Module 2a. Imbalance Component; • Module 2b. Bid Offer Acceptance Quantities and Premium/Discount Component; • Module 2c. Non-Delivery; • Module 2d. Bias; • Module 2e. Non-Firm; • Module 2f. Trade Opposite TSO; • Module 2g. Undo; • Module 2h. Curtailment. • Lunch; • Module 3. Start-to-Finish Imbalance Settlement Spreadsheet Example; • Question and answer session on tool and code rules; • AOB and wrap up.

4. What this is… • Project team issued spreadsheet to allow participants develop “worked examples” of different settlement scenarios for generators • Spreadsheet contains “how to” instructions • Purpose of today is to provide participants with an active and hands on session to familiarise themselves with the workings of the spreadsheet • Today, we will present on • the theory – what the calculation is doing; and • the practice – how the spreadsheet does it; • And provide opportunity for attendees to use the spreadsheet and ask questions • This covers imbalance settlement calculations only

5. What this is not… • This is not an opportunity to assess the intent of the settlement equations • This is not an opportunity to re-open or re-examine design decisions • This session does not cover any settlement related to the capacity market • Settlement of supplier charges is not covered as part of this session • This is not I-SEM training. More detailed process and system training will be provided by the EirGrid/SONI project team at a later

6. What we hope you’ll get from today… • A clear understanding of the imbalance settlement rules in the draft TSC • Capability to make further use of the spreadsheet to develop further scenarios that are of interest to you • Be better informed for responding to the TSC consultation in January • Next steps… • Working on a capacity settlement spreadsheet for issue in the new year • If you find any bugs, tell us!

7. Welcome and Introduction; • Module 1. High level overview of Imbalance Settlement; • Module 2. Topic-by-Topic overview of Imbalance Settlement: • Module 2a. Imbalance Component; • Module 2b. Bid Offer Acceptance Quantities and Premium/Discount Component; • Module 2c. Non-Delivery; • Module 2d. Bias; • Module 2e. Non-Firm; • Module 2f. Trade Opposite TSO; • Module 2g. Undo; • Module 2h. Curtailment. • Lunch; • Module 3. Start-to-Finish Imbalance Settlement Spreadsheet Example; • Question and answer session on tool and code rules; • AOB and wrap up.

8. Imbalance Settlement implements Balance Responsibility: • Participants financially responsible for differences between trade volumes and actual load/generation; • Imbalance Settlement calculates the quantities and cash flows. • Balancing Market is mandatory for everyone: • Suppliers, generators, assetless, NEMOs, interconnectors… • Participants other than generators, just to calculate imbalances; • Generator participants, full output range available for balancing services. • Much of complexity driven by design of non-core elements: • Incentives for balance responsibility; • Special scenarios and cases, e.g. non-firm, curtailment, undo orders.

10. CIMBγ, the Imbalance Component Payment or Charge; • CPREMIUMuγ, the Premium Component Payment or Charge; • CDISCOUNTuγ, the Discount Component Payment or Charge; • CAOOPOuγ, the Offer Price Only Accepted Offer Payment or Charge; • CABBPOuγ, the Bid Price Only Accepted Bid Payment or Charge; • CCURLuγ, the Curtailment Payment or Charge; • CUNIMBuγ, the Uninstructed Imbalance Charge; • CIIuγ, the Information Imbalance Charge; • CFCub, the Fixed Cost Payment or Charge; • CTESTuγ, the Testing Charge; • CIMPuγ, the Imperfections Charge; • CREVvγ, the Residual Error Volume Charge; • CCAvγ, the Currency Adjustment Charge.

11. CIMBγ GU, SU, IC, AU All imbalances at imbalance price. • CPREMIUMuγ GU, IC Extra so TSO actions at better price. • CDISCOUNTuγ GU, IC Extra so TSO actions at better price. • CAOOPOuγ GU Undo. • CABBPOuγ GU Undo. • CCURLuγ Wind GU Turn down wind for system stability. • CUNIMBuγ GU, IC Follow your instructions. • CIIuγ GU Cost of info changing schedule. • CFCub GU Pay extra cost, pay back saved cost. • CTESTuγ GU, IC Extra risk = extra reserve = cost. • CIMPuγ SU Money in = Money out. • CREVvγ SU It was consumed somewhere. • CCAvγ SU Exchange rates.

12. CIMBγ GU, SU, IC, AU All imbalances at imbalance price. • CPREMIUMuγ GU, IC Extra so TSO actions at better price. • CDISCOUNTuγ GU, IC Extra so TSO actions at better price. • CAOOPOuγ GU Undo. • CABBPOuγ GU Undo. • CCURLuγ Wind GU Turn down wind for system stability. • CUNIMBuγ GU, IC Follow your instructions. • CIIuγ GU Cost of info changing schedule. • CFCub GU Pay extra cost, pay back saved cost. • CTESTuγ GU, IC Extra risk = extra reserve = cost. • CIMPuγ SU Money in = Money out. • CREVvγ SU It was consumed somewhere. • CCAvγ SU Exchange rates.

13. Welcome and Introduction; • Module 1. High level overview of Imbalance Settlement; • Module 2. Topic-by-Topic overview of Imbalance Settlement: • Module 2a. Imbalance Component; • Module 2b. Bid Offer Acceptance Quantities and Premium/Discount Component; • Module 2c. Non-Delivery; • Module 2d. Bias; • Module 2e. Non-Firm; • Module 2f. Trade Opposite TSO; • Module 2g. Undo; • Module 2h. Curtailment. • Lunch; • Module 3. Start-to-Finish Imbalance Settlement Spreadsheet Example; • Question and answer session on tool and code rules; • AOB and wrap up.

14. TSC F.5.3

15. TSC F.5.2 Calculating QEX: • Provision in code and systems to calculate imbalances for hourly products over an hour, will not be active for go-live (F.5.2.5 – F.5.2.9); • For go-live, even split of hourly products into each half hour (F.5.2.1 – F.5.2.4 and F.5.2.10).

16. Welcome and Introduction; • Module 1. High level overview of Imbalance Settlement; • Module 2. Topic-by-Topic overview of Imbalance Settlement: • Module 2a. Imbalance Component; • Module 2b. Bid Offer Acceptance Quantities and Premium/Discount Component; • Module 2c. Non-Delivery; • Module 2d. Bias; • Module 2e. Non-Firm; • Module 2f. Trade Opposite TSO; • Module 2g. Undo; • Module 2h. Curtailment. • Lunch; • Module 3. Start-to-Finish Imbalance Settlement Spreadsheet Example; • Question and answer session on tool and code rules; • AOB and wrap up.

17. TSC Appendix O • Today’s approach (high level): • Carry out functionality in settlement timeframe; • Inputs are all Physical Dispatch Instructions (DIs) recorded from EDIL; • Create a single instruction profile taking into account all DIs; • The instruction profile follows the DIs, joining the dots according to the TOD; • From this instruction profile, calculate DQ (half hour value representing final dispatch).

18. TSC Appendix O • Input Dispatch Instruction recorded and validated from EDIL;

19. TSC Appendix O • Input Dispatch Instruction recorded and validated from EDIL; • Create a Profile joining all the DI according to Technical Offer Data (TOD);

20. TSC Appendix O • I-SEM approach (high level): • Carry out functionality in pricing timeframe and settlement timeframe; • 2 types of Instructions are used: • Physical Dispatch Instructions (as currently understood, input from EDIL); and • Pseudo-Dispatch Instructions (created ex-post in Instruction Profiling, according to a ruleset, for settlement purposes only); • Create an instruction profile per Instruction: • For Physical Dispatch Instructions, take into account all Dispatch Instructions prior to and including the current instruction; • For Pseudo-Dispatch Instructions, take into account all Dispatch Instructions prior to and including the current instruction and take into account the next instruction to know when to end the profile. • The instruction profiles are created to reflect the following: • All Physical Dispatch Instruction profiles should follow TOD, representing the minimum technically feasible profile to reach the instructed level (and maintaining that level if required by the TOD, e.g. min on time, “until time t”), then ramp back to FPN and maintain FPN; • All Pseudo-Dispatch Instruction profiles should be to maintain the level intended by the instruction, until the next instruction, then ramp back to FPN and maintain FPN. • Use these profiles to calculate a qBOA for each instruction: • Each instruction closes the previous BOA and opens a new BOA, therefore need instruction profiles for each instruction; • The inputs to the qBOAuoih(t) calculation are the instruction profile for the current order (qDuoh(t)), and the instruction profile for the previous order (qDu(o-1)h(t)). • Also use the final profile, taking into account all DIs, to calculate QDuγ (equivalent to DQ today).

21. TSC Appendix O • Why need pseudo instructions? • To have open instructions in physical operation, with closed acceptances of order in settlement: • Orders are accepted considering “the minimum quantity given the relevant technical offer data, particularly ramp-rates and minimum on time, of a unit, and then subsequent acceptances minute-by-minute of the minimum additional quantity given the technical data”. • To reflect the fact that orders accepted at different times can have different prices applying: • E.g. an instruction to start issued hours in advance could use COD set 1, while keeping the unit on in that same period could need to use COD set 2. • Need to be able to close an order and open a new one to reflect the fact that output is still at the last instructed level; • Close order from Physical DI according to TOD; • Open order using Pseudo DI to reflect fact output level is being maintained at previously instructed level. • Need to keep continuously opening orders to reflect the fact that they are being accepted in real-time, rather than at the time of the previous physical instruction: • This ensures that the Simple Incs and Decs COD is used, and that the latest submitted Incs and Decs before gate closure for that period are used.

22. TSC Appendix O • Examples: Red Line is Previous Dispatch Instruction Profile, Green Line is Dispatch Instruction Profile to be created for DI being considered (Blue Line is FPN).

23. TSC Appendix O • PMWO MW FPN time

24. TSC Appendix O • PMWO MW MWOF FPN time

25. TSC Appendix O • PMWO PMWO MW Issue time and effective time MWOF FPN time

26. TSC Appendix O • PSYN MW FPN time

27. TSC Appendix O • PSYN MW SYNC Effective SYNC Issue FPN time Min On Time

28. TSC Appendix O • PSYN MW PSYN Issue time and effective time SYNC Effective SYNC Issue FPN time Min On Time

29. TSC Appendix O • PDES MW FPN time

30. TSC Appendix O • PDES MW DESY FPN time Min Off Time

31. TSC Appendix O • PDES MW DESY FPN PDES Issue time and effective time time Min Off Time

32. TSC Appendix O • POFF MW FPN time

33. TSC Appendix O • POFF MW DESY FPN PDES time Min Off Time

34. TSC Appendix O • POFF MW DESY FPN PDES POFF Issue time and effective time time Min Off Time

35. TSC Appendix O • PCOD MW FPN time

36. TSC Appendix O • PCOD Participant Changes COD PMWO MW MWOF FPN time

37. TSC Appendix O • PCOD PCOD PMWO MW Issue time and effective time MWOF FPN time

38. TSC Appendix O • PISP MW FPN time

39. TSC Appendix O • PISP ISP Boundary PMWO MW MWOF FPN time

40. TSC Appendix O • PISP PISP PMWO MW Issue time and effective time MWOF FPN time

41. TSC F.6.8 • Balancing actions paid/pay better of Imbalance Price and Bid Offer Price: • Already settled at Imbalance Price; • For Inc, if PBO > PIMB, additional payment (premium); • For Dec, if PBO < PIMB, additional payment (discount).

42. TSC F.6.2 and F.6.8 MW i = 5 i = 4 qFPN i = 3 • Calculate Bid Offer Acceptance Quantities: i = 2 i = 1 γ γ+ 1 qD

43. TSC F.6.2 and F.6.8 MW i = 5 i = 4 qFPN i = 3 • Calculate Bid Offer Acceptance Quantities: i = 2 i = 1 γ γ+ 1 qD

44. TSC F.6.2 • Take dispatch quantities (qD) and adjust them (qDA) for the different input scenarios (e.g. for incs or for decs, including FAQ for non-firm quantities, etc.); • In general, every instruction (pseudo and physical) is a Bid Offer Acceptance (o); • Run the calculation twice for each Bid Offer Acceptance: once with inputs for incs, once for inputs for decs: • The Adjusted Dispatch Quantity values, and a final max or min of the result and zero, ensures that incs don’t appear in the calculation for decs, and vice versa. • Need to do this because can have an inc and a dec arise for the same order in the same period, i.e. one dispatch quantity profile crosses the FPN profile so both negative and positive adjustments result. • The calculation is the “current curve” (the adjusted dispatch quantity curve for the instruction opening the order currently being calculated) minus the “previous curve” (the adjusted dispatch quantity curve for the previous instruction): • If it is the first order in the period, the previous curve is the FPN; • This allows for multiple acceptances in a single period to be at different prices.

45. TSC F.6.2 • Calculate qBOAusing the following equations: • For i > 0: • For i < 0: • For incs: • For decs:

46. TSC F.6.2 • Calculate qBOAusing the following equations: • For i > 0: • For i < 0: • For incs: • For decs: Calculation of Quantities (TSC F.6.2.1 and F.6.2.2 ) Preparation of Inputs (TSC F.6.2.3 and F.6.2.4)

47. TSC F.6.2 • Calculate qBOAusing the following equations: • For i > 0: • For i < 0: • For incs: • For decs: Inputs for “0th case” (e.g. considering a variable for a previous BOA, (o-1), when it is the first BOA, o = 1)

48. TSC F.6.2 • Calculate qBOAusing the following equations: • For i > 0: • For i < 0: • For incs: • For decs: Adjustments to current curve inputs (to ensure no positive values in dec and no negative values in dec) Adjustments to previous curve inputs (to ensure decs are not calculated if availability drops below FPN)

49. TSC F.6.2 • Calculate qBOAusing the following equations: • For i > 0: • For i < 0: • For incs: • For decs: For positive output range (i.e. majority of generator units) For negative output range (e.g. storage mode for Pumped Storage unit)

50. TSC F.6.2 • Calculate qBOAusing the following equations: • For i > 0: • For i < 0: • For incs: • For decs: Current curve… …minus previous curve Current curve… …minus previous curve