Elia and TenneT, with support from DNV KEMA, publish a joint report on23/09/2013, as initial deliverable of the Elia-TenneT pilot project “Reactive balancing market design with cross-border optimisation of frequency restoration”
In July 2012 TenneT and Elia decided to start up a qualitative study with the objective to “analyse cross-border balancing market design that achieve maximum synergies between the Netherlands and Belgium, while keeping control areas, bid zones, and Regulatory oversight intact”.
The intermediate results of this study were presented on the 1st of February in a public workshop attended by representatives from market parties, regulators and authorities from the Netherlands and Belgium.
In February 2013 ENTSO-E launched a call for pilot projects on balancing in order to test the feasibility of the balancing target model as explained in the Framework Guidelines on Electricity Balancing (FGEB), to evaluate the implementation impact and to gather and report on the experience gained. In response to this call, TenneT and Elia applied on the 29th of March 2013 for a nomination for a cross border balancing pilot project called "Design and evaluation of a harmonised reactive balancing market with cross-border optimisation of frequency restoration while keeping control areas, bid zones, and regulatory oversight intact ". On the 25th of June 2013 ENTSO-E accepted and approved the nomination.
The final report of the initial study is now ready and is to be considered as a first deliverable of the pilot project. This report compares the present balancing arrangements in both countries. This comparison shows a large degree of similarity of high-level market design principles, in the procurement of operating reserves and real-time balancing in both countries. However a closer analysis reveals some important differences in the specification, remuneration and use of different products. Further synergies than those already achieved by TenneT and Elia (imbalance netting and pooling of tertiary reserves) will require some substantial changes to products, processes, rules and regulation. Such changes and their implications will be studied as part of the next stage of the pilot project.
In the 2nd part of this report a very initial qualitative assessment is made of potential cross-border collaboration between TenneT-Elia.
Elia and TenneT have published a report on the results of the second phase of the cross-border balancing pilot project investigating the possibilities for further cooperation between the Dutch and Belgian balancing markets.
The report of the first phase of the project provided an overview of the organisation of the balancing markets and products used in both countries. During the second phase, Elia and TenneT developed a number of scenarios relating to changes required in their balancing markets to enable the exchange of balancing energy. The difficulties and impact of these changes were explained in qualitative terms. The preliminary results were presented during a stakeholder workshop on 13 June.
The final report on this second phase elaborates in further detail the different scenarios previously presented at the workshop.
The next phase of the project consists of a cost-benefit analysis on the final market design. First the two TSOs will determine the scope and the most efficient way to proceed. Based on this, a new schedule will be drawn up.
The German, Belgian and Dutch TSOs have, together with E-Bridge and the Institute of Power Systems and Power Economics (IAEW) of RWTH Aachen University, completed a qualitative common comparison study on the subject of a BE-NL-DE Coordinated Balancing Area (CoBA).
The aim of this study was to look more into detail regarding the regulatory and legal framework, the product specifications in the Ancillary Services Markets, the overall market design, and to develop a view regarding the potential benefits of a cross border balancing market.
This present study is demonstrating that the less complex cooperation options are already partially established. The study also demonstrates that the currently applicable Frequency Restoration Reserves market designs diverge considerable between the three countries, which entails complex solutions for the establishment of a cross zonal balancing market as envisaged by the Network Code on Electricity Balancing.
Based on the results of this study it was decided to take further steps for the implementation of the relative “less complex” options for cooperation:
In parallel the involved TSOs shall further investigate cooperation possibilities for the more complex products (Frequency Restoration Reserves). This study contains updated data for Belgium and the Netherlands to the previous report published on X-Zonal balancing cooperation between Belgium and the Netherlands.