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Cross Border Balancing - 2Hr Product. NGET and RTE Paper. Overview. NGET & RTE action at 22 nd March FUI IG meeting to provide a summary paper on 2hr product addressing – NGET requirement for a 2hr product Assessment of the impact of BALIT solution without a 2hr product
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Cross Border Balancing - 2Hr Product NGET and RTE Paper
Overview • NGET & RTE action at 22nd March FUI IG meeting to provide a summary paper on 2hr product addressing – • NGET requirement for a 2hr product • Assessment of the impact of BALIT solution without a 2hr product • RTE’s concerns with a 2hr CBB product • Propose Alternative Solution
NGET Requirements for Long Duration (> 1hr) Products • The current CBB Interim arrangements are utilised for Energy, Margin, Contingency and Constraint management considerations • Provisions allow agreement of ‘non-rigid’ transactions which may be > 1hr - • Avoids commitment of alternative high cost actions e.g. additional generation synchs • Allows peak demand points to be efficiently managed • CBB transactions play an important role in managing Southern Network constraints, including London security, due to the strategic location of IFA • Dayahead exchange of data allows CBB to be ‘firmly’ assumed in Operating Plans to offset other contingent actions e.g. warming
NGET Proposal for a 2Hr CBB Product • The BALIT 1 hr arrangements would allow CBB to be utilised against other in-gate BM actions but not against long notice actions or longer duration requirements. • NGET proposed inclusion of a 2 Hr product with a 2 hrs lead time to increase the opportunities for BALIT to be utilised for broader system balancing purposes - • 2 hrs duration being generally sufficient to cover most operational requirements • 2 hrs Lead time would allow opportunity to avoid commitment of alternative actions
NGET Assessment if no 2hr Provisions Available • Lack of 2Hr Provisions could be managed through reliance on alternative actions but would result in increased costs – • Increased Operating Plan Contingency costs in the form of generation warming • Assessment of 09/10 Plans has highlighted a £6.98m saving through inclusion of CCB as contingency in SOPs • Increased BMU commitment for margin and/or constraint reasons • Assessment of 09/10 Plans substituting CBB with replacement generation, allowing for a typical minimum run time of 3.5, would have increased the full year operating costs by £27m
Concerns of RTE • 2hr product in parallel with standard 1hr product would • Jeopardize further extension of standard mechanism to other borders • Lead to over-inflated prices and make standard product offered to other TSOs more scarce • Could lead to sub-optimal operation of Balancing Management in France and, in some particular cases, to endanger the Security of Supply of the French Transmission System
Alternative Solution – ‘BALIT Extension’ • New proposal to achieve 2 hr delivery through enhanced obligations around the BALIT arrangements - • TSO to inform as soon as possible if the ‘BALIT Extension’ service is to be withdrawn in keeping with the existing good practices • Acquiring TSO gives notice of intent by no later than 2 hours ahead • Acquiring TSO activates BALIT volume in the first hour • Ifno BALIT volume in 2nd hour then Delivering TSO will deliver energy through the ‘BALIT Extension’ service and settle at a pre-agreed Excess Energy price • With these enhanced obligations CBB can be assumed in Operating Plans unless rejected at the requesting stage. • It is proposed to maintain this ‘BALIT Extension’ service until 1st April 2012 • This will allow a detailed review to be undertaken after 1 year • It is proposed that the service will terminate on 1st April 2012 such that any extension of these arrangements beyond this date would require common agreement between Ofgem, CRE, NGET and RTE