Cross border redispatching

1
Cross border redispatching

• Central West Electricity Regional Energy Market
• Mini Forum
• Alain Marien
• 20th of June 2006

2
Plan

• Goal
• Regulatory context
• Experience
• Issues to be tackled

3
Goal

• Option 1 Guarantee the firmness of already
  allocated transmission rights?
• Option 2 Allocate more transmission rights?

4
Regulatory context

• Directive 2003/54/EC Article 11, related to
  dispatching and balancing, 2
• The dispatching of generating installations and
  the use of interconnectors shall take into
  account the economic precedence of electricity
  from available generating installations or
  interconnector transfers and the technical
  constraints on the system.

5
Regulatory Context (2)

• Regulation EC 1228/2003 article 6.2
• Article 6.2 Transaction curtailment procedures
  shall only be used in emergency situations where
  the transmission system operator must act in an
  expeditious manner and redispatching or
  countertrading is not possible.
• Article 6.3 The maximum capacity of the
  interconnections and/or the transmission networks
  affecting cross-border flows shall be made
  available to market participants, complying with
  safety standards of secure network operation.

6
Regulatory context (3)

• New Congestion Management Guidelines
• 1.3. Where scheduled commercial transactions are
  not compatible with secure network operation,
  Curative redispatching or countertrading shall be
  envisaged in case lower cost measures cannot be
  applied.
• 1.8. When balancing the network inside the
  control area through redispatching, the TSO
  shall take into account the effect of these
  measures on neighbouring control areas.
• 2.5. The access rights for long- and medium-term
  allocations shall be firm transmission capacity
  rights.
• 3.5. With a view to promoting fair and efficient
  competition and crossborder trade, coordination
  between TSOs within the regions shall
  include, in particular (h) Accounting and
  settlement of congestion management actions.

7
Experience

• In the Central West region
• Bilateral agreements between TSOs on the
  triggering of cross border redispatching case by
  case cost settlement
• TSOs of the region are working on an Inter TSO
  agreement
• Nordel
• Congestion management market splitting
  countertrade
• Proposal for a limited increase of (preventive)
  countertrade
• Objective increase capacity and reduce periods
  with price difference between zones
• Can be inefficient
• Increased risk of abuse of market power
• PJM
• Optimised bid based nodal real-time redispatch

8
Issues to be tackled

• Goal to guarantee or maximise the capacity?
• Criteria
• Non discrimination same mechanism for internal
  and cross border redispatching,
• Economic efficiency (regional)
• Mechanism
• Principle for the determination of the action to
  be taken ex. choice of the generation units to
  redispatch
• Remuneration of the service bid based system?
• Interaction with balancing?
• Costs allocation mechanism between TSOs or
  directly on market actors? Zonal or nodal
  approach?

9
Issues to be tackled (2)

• Harmonisation
• Dispatch nominations /re-dispatch sequence in
  the different countries
• Role of the TSO in real time
• Market power issues
• Risk of manipulation
• Legal issues
• Role of the TSOs?

10
Discussion

• Current regional initiative?
• Future development
• Priority given to this issue?
• Goal?
• Timing?

11
Cross border redispatching

• Thank you for your attention!