WORKSHOP ON THE DANISH- GERMAN BORDER (DK1-DE)

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WORKSHOP ON THE DANISH- GERMAN BORDER (DK1-DE)

TenneT and Energinet

8/11/2017

Workshop on the Danish-German border (DK1-DE) 1

8th November 2017

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AGENDA

8/11/2017

1 Welcome

2 Presentation of purpose of the day and process for the workshop 3 4x rounds of panel discussions of countertrade models

4 Recap of inputs to the countertrade models 5 Presentation of next steps

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AGENDA

8/11/2017

1 Welcome

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EXPORT CAPACITY FROM DK1 TO GERMANY

16/14054-11

2017-10-11 4

0 10 20 30 40 50 60 70

jan-2016 mar-2016 maj-2016 jul-2016 sep-2016 nov-2016 jan-2017 mar-2017 maj-2017 jul-2017 sep-2017 nov-2017 jan-2018 mar-2018 maj-2018 jul-2018 sep-2018 nov-2018 jan-2019 mar-2019 maj-2019 jul-2019 sep-2019 nov-2019 jan-2020 mar-2020 maj-2020 jul-2020 sep-2020 nov-2020

% of NTC (1780 MW)

Export capacity Minimum capacities

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IMPORT CAPACITY TO DK1 FROM GERMANY

16/14054-11

2017-10-11 5

0 20 40 60 80 100

jan-2016 mar-2016 maj-2016 jul-2016 sep-2016 nov-2016 jan-2017 mar-2017 maj-2017 jul-2017 sep-2017 nov-2017 jan-2018 mar-2018 maj-2018 jul-2018 sep-2018 nov-2018 jan-2019 mar-2019 maj-2019 jul-2019 sep-2019 nov-2019 jan-2020 mar-2020 maj-2020 jul-2020 sep-2020 nov-2020

% of NTC (1500MW)

Import kapacitet Minimum capacities

(6)

Joint Declaration

IS A POLITICAL AGREEMENT

Which will secure more capacity for the electricity market

Joint Declaration

IS A POLITICAL AGREEMENT

Which will secure more capacity for the electricity market

Joint Declaration

IS A POLITICAL AGREEMENT

Which will secure more

capacity for the electricity

market

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PROCESS FOR SELECTING A COUNTERTRADE MODEL

7

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PURPOSE OF THE DAY AND NEXT STEPS

8/11/2017

Methodology for a countertrade model Impact assessments

Inputs and new suggestions for

countertrade models Stakeholder workshop

7^th of September

Consultation 8^th November

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INPUT TO WEIGHTED SCORING MODEL

9

Criterion System

Security Cost-

effectiveness Market access Possibility of

arbitrage Transparency Total

Weighted X % X % X % X % X % 100 %

CoCA Model Intraday Auction Trading on the intraday market Special regulation

The purpose of today is also to get your view on the:

• Scoring of the fulfillment of the criteria for each model

• Weight distribution between the 5 criteria

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EVALUATION CRITERIA

8/11/2017

System security Cost-effectiveness

Market access

Effect of arbitrage

Transparency

The criteria includes both the cost of the purchased MWh and a

consideration of the

implementation cost and time

Secure acces to a larger market and a open and non-discriminating

model.

Model fulfills requirements for transparency, non-discrimination

and non-distortion of competition.

The risk that day-ahead market price will not reflect the increased

capacity.

The criteria includes both the potential non-availability of up-

and downward regulation and lead time to operational hour.

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AGENDA

8/11/2017

1 Welcome

(12)

TIMEFRAME FOR THE COUNTERTRADE

7/9/2017

Day-ahead Markedet Intraday Markedet Regulating Power

Market

Countertrade Minimum capacities

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PARTICIPANTS IN THE PANELS

8/11/2017

Marcel Steinbach (BDEW)

Henrik Møller Jørgensen (Fjernvarme Fyn)

Linette Linnemann Nielsen (Energinet)

Hubert Audorff (TenneT)

Randi Skytte (Ørsted) Jonas Holmgren

(Vattenfall)

Halvor Bakke (Statnett)

Katja Birr-Pedersen (Energinet)

Mikkel Hesselbæk (Aalborg Energikoncern)

Randi Skytte (Ørsted)

Randi Kristensen (Energinet)

Anne Fritsche (TenneT)

Jonas Holmgreen (Vattenfall)

Linette Linnemann (Energinet)

CoCA Model Intraday Auction Trading on the intraday market Special regulation

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PROCESS FOR PANEL DISCUSSIONS

Workshop on the Danish-German border (DK1-DE)

1) Moderated discussions based on questions from the moderator and all workshop participants (directly or via Slido)

2) Input from participants to weighted scoring model using voting tool Slido to evaluate each criteria

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JOIN THE

DEBATE AND VOTE USING Slido

www.sli.do

Code: DK1DE

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EVALUATION CRITERIA FOR EACH MODEL

Code: DK1DE

www.sli.do

Market access Effect of arbitrage

Transparency

1-2 Poor Fulfilment

6-8 Good Fulfilment 3-5

Medium Fulfilment

9 Very good Fulfilment

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LET’S SEE IF IT IS WORKING

How was your journey to the workshop?

Please rate the pleasantness of your journey to this workshop on a 10 star scale, with

- One star being equal to very poor and - Ten stars being equal to excellent

Code: DK1DE

www.sli.do

(18)

PARTICIPANTS IN THE PANELS

Workshop on the Danish-German border (DK1-DE)

Linette Linnemann Nielsen (Energinet)

Hubert Audorff (TenneT)

CoCA Model

(19)

COUNTER CAPACITY ALLOCATION (COCA)

7/9/2017

CoCA

Energinet and Tennet auction explicit capacity through a Physical-Transmission-Obligations (PTO).

PTOs are not subject to Use-It-Or-Sell-It, cannot be used as balance products, and are nominated automatically Market participants with at PTO, can trade bilateral or use the intraday market

(20)

Rating poll

CoCA (1/5)

Please evaluate the CoCA model according to System Security (1 star equals high

risk, 10 stars equal low risk)

0 2 4

Score: 4.9

17%

1

4%

2

17%

3

8%

4

8%

5

0%

6

33%

7

4%

8

8%

9

0%

10

(21)

Rating poll

CoCA (2/5)

Please evaluate the CoCA model according to Cost-effectiveness (1 star equals low

cost-effectiveness, 10 star equal high cost-effectiveness)

0 2 6

Score: 4.5

12%

1

8%

2

27%

3

12%

4

12%

5

4%

6

8%

7

15%

8

0%

9

4%

10

(22)

Rating poll

CoCA (3/5)

Please evaluate the CoCA model according to Market Access (1 star equals low

access, 10 stars equal high access)

0 2 6

Score: 4.0

19%

1

15%

2

15%

3

12%

4

12%

5

4%

6

8%

7

12%

8

4%

9

0%

10

(23)

Rating poll

CoCA (4/5)

Please evaluate the CoCA model according to Effect of arbitrage (1 star equals high risk of arbitrage, 10 stars equal low risk of arbitrage)

0 2 5

Score: 4.3

12%

1

12%

2

20%

3

12%

4

8%

5

12%

6

16%

7

8%

8

0%

9

0%

10

(24)

Rating poll

CoCA (5/5)

Please evaluate the CoCA model according to Transparency (1 star equals low

transparency, 10 stars equal high transparency)

0 2 6

Score: 5.3

8%

1

15%

2

8%

3

12%

4

12%

5

8%

6

15%

7

8%

8

8%

9

8%

10

(25)

PARTICIPANTS IN THE PANELS

8/11/2017

Randi Skytte (Ørsted) Jonas Holmgren

(Vattenfall)

Katja Birr-Pedersen (Energinet)

Intraday Auction

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INTRADAY AUCTION

7/9/2017

Intraday auction

Euphemia (day-ahead ) algorithm is used to launch an intraday auction with negative capacities on DK1-DE border

The auction will then move production from a low price area to a high price area creating negative congestion rents

All market participants in participating bidding zones can provide up- and downward regulation in the

auction

Needs to be facilitated by NEMO(s), ensuring equal access of all bids

(27)

Rating poll

Intraday Auction (1/5)

Please evaluate the Intraday Auction model according to System Security (1 star equals high risk, 10 stars equal low risk)

0 2 6

Score: 5.5

0%

1

8%

2

8%

3

23%

4

8%

5

19%

6

19%

7

8%

8

4%

9

4%

10

(28)

Rating poll

Please evaluate the Intraday Auction

model according to Cost-effectiveness (1 star equals low cost-effectiveness, 10 star equal high cost-effectiveness)

0 2 6

Score: 6.1

0%

1

4%

2

27%

3

0%

4

12%

5

12%

6

8%

7

19%

8

4%

9

15%

10

(29)

Rating poll

model according to Market Access (1 star equals low access, 10 stars equal high

access)

0 2 6

Score: 5.8

8%

1

4%

2

12%

3

12%

4

12%

5

4%

6

15%

7

19%

8

8%

9

8%

10

(30)

Rating poll

model according to Effect of arbitrage (1 star equals high risk of arbitrage, 10 stars equal low risk of arbitrage)

0 2 6

Score: 4.3

15%

1

12%

2

23%

3

15%

4

4%

5

8%

6

8%

7

4%

8

8%

9

4%

10

(31)

Rating poll

model according to Transparency (1 star equals low transparency, 10 stars equal high transparency)

0 2 6

Score: 6.4

8%

1

0%

2

4%

3

15%

4

12%

5

8%

6

12%

7

15%

8

15%

9

12%

10

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PARTICIPANTS IN THE PANELS

8/11/2017

Randi Skytte (Ørsted)

Randi Kristensen (Energinet)

Anne Fritsche (TenneT)

Trading on the intraday market

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ENERGINET ON THE INTRADAY MARKET

7/9/2017

Energinet buys up- or downward regulation on the intraday market

Either on its own or through a service provider

Transparency needs to be ensured through market messages

Intraday

market

(34)

Rating poll

Intraday Market (1/5)

Please evaluate the Intraday Market model according to System Security (1 star

equals high risk, 10 stars equal low risk)

0 2 7

Score: 5.7

7%

1

4%

2

15%

3

7%

4

15%

5

7%

6

15%

7

19%

8

4%

9

7%

10

(35)

Rating poll

Please evaluate the Intraday Market model according to Cost-effectiveness (1 star

equals low cost-effectiveness, 10 star equal high cost-effectiveness)

0 2 7

Score: 5.3

7%

1

7%

2

11%

3

19%

4

11%

5

11%

6

15%

7

4%

8

7%

9

7%

10

(36)

Rating poll

Please evaluate the Intraday Market model according to Market Access (1 star equals low access, 10 stars equal high access)

0 2 7

Score: 5.9

7%

1

4%

2

4%

3

19%

4

11%

5

15%

6

4%

7

19%

8

11%

9

7%

10

(37)

Rating poll

Please evaluate the Intraday Market model according to Effect of arbitrage (1 star

equals high risk of arbitrage, 10 stars equal low risk of arbitrage)

0 2 5

Score: 3.5

20%

1

24%

2

16%

3

12%

4

8%

5

8%

6

4%

7

4%

8

4%

9

0%

10

(38)

Rating poll

Please evaluate the Intraday Market model according to Transparency (1 star equals low transparency, 10 stars equal high

transparency)

0 2 6

Score: 4.5

15%

1

15%

2

15%

3

12%

4

8%

5

8%

6

8%

7

4%

8

8%

9

8%

10

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PARTICIPANTS IN THE PANELS

8/11/2017

Jonas Holmgreen (Vattenfall)

Linette Linnemann (Energinet)

Special regulation

(40)

SPECIAL REGULATION

7/9/2017

Special

Regulation

Energinet selects bids from Nordic regulating power market according to pay-as-bid.

Only bids in DK1 and DK2 can participate.

Energinet can purchase the capacity in the morning.

(41)

Rating poll

Special regulation (1/5)

Please evaluate the Special regulation model according to System Security (1 star equals high risk, 10 stars equal low risk)

0 2 7

Score: 5.7

7%

1

7%

2

11%

3

11%

4

0%

5

22%

6

7%

7

22%

8

4%

9

7%

10

(42)

Rating poll

Please evaluate the Special regulation

model according to Cost-effectiveness (1 star equals low cost-effectiveness, 10 star equal high cost-effectiveness)

0 2 7

Score: 4.5

15%

1

15%

2

19%

3

7%

4

11%

5

11%

6

4%

7

4%

8

4%

9

11%

10

(43)

Rating poll

model according to Market Access (1 star equals low access, 10 stars equal high

access)

0 2 7

Score: 4.1

26%

1

19%

2

15%

3

0%

4

4%

5

11%

6

7%

7

11%

8

0%

9

7%

10

(44)

Rating poll

model according to Effect of arbitrage (1 star equals high risk of arbitrage, 10 stars equal low risk of arbitrage)

0 2 6

Score: 6.5

4%

1

4%

2

8%

3

4%

4

8%

5

15%

6

19%

7

15%

8

15%

9

8%

10

(45)

Rating poll

Please evaluate the Special regulation model according to Transparency (1 star equals low transparency, 10 stars equal high transparency)

0 2 7

Score: 3.9

22%

1

7%

2

11%

3

19%

4

15%

5

19%

6

4%

7

4%

8

0%

9

0%

10

(46)

AGENDA

8/11/2017

1 Welcome

(47)

INPUT TO WEIGHTED SCORING MODEL

27

Criterion System

Security Cost-

Weighted X % X % X % X % X % 100 %

CoCA Model 5 5 5 5 5 5

Intraday Auction 5 5 5 5 5 5

Trading on the

intraday market 5 5 5 5 5 5

Special regulation 5 5 5 5 5 5

Results of the previous ratings on the different criteria

=> Next step: weights attached to each criteria

To be filled in with results from each voting on criteria

(48)

WEIGHT OF THE CRITERIA

Code: DK1DE

www.sli.do

Market access Effect of arbitrage

Transparency

1-20 % Little Weight

51-80 % Hard Weight 21-50 %

Medium Weight

81-100 % Most Weight

(49)

WEIGHT OF THE CRITERIA

Code: DK1DE

www.sli.do

Please be aware only to submit a total of 10 stars

- 1 star representing 10 % weight.

(50)

INPUT TO WEIGHTED SCORING MODEL

31

Criterion System

Security Cost-

Weighted 19 % 15 % 16 % 26 % 24 % 100 %

CoCA Model 4,92 4,50 4,04 4,32 5,27 4,64

Intraday Auction 5,54 6,12 5,85 4,27 6,42 5,56

Trading on the

intraday market 5,67 5,26 5,93 3,48 4,54 4,82

Special regulation 5,70 4,52 4,07 6,54 3,85 5,04

Results of the poll with market participants

(51)

AGENDA

8/11/2017

1 Welcome

(52)

PROCESS FOR SELECTING A COUNTERTRADE MODEL

33

(53)

THANK YOU

If you have any further comments or questions, please feel free to contact us:

Anne Fritsche

anne.fritsche@tennet.eu Linette Linnemann lin@energinet.dk

WORKSHOP ON THE DANISH- GERMAN BORDER (DK1-DE)