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- Last Updated on Friday, 28 March 2014 10:53
Final Tuning of the CEE D-2 FB capacity calculation method to cope with the negative impact of unplanned flows
CAO Central Allocation Office GmbH1 in cooperation with the CEE TSOs deals with the adjusted FB capacity calculation methodology and the process that can decrease loop flows in the region.
After recognizing that an enhanced coordinated D-2 capacity calculation in the CEE region is needed and following the CEE NRAs letter from 08.03.2013, CEETSOs in April 20 took the decision 13 to reactivate the WG FBA with the task to elaborate an adjusted FB technical solution for the CEE region based on today´s bidding zones in order to take the influence arising from unplanned flows into account.
This development was driven by the recent findings2 that the underlying problem of amount of unplanned flows in such meshed and power-flow-control free device power transmission grid like CEE´s is rising and blocking any progress in the regional project for coordinated capacity calculation and allocation. Neither the currently existing bilateral ATC method nor the already developed and implemented FB method for coordinated capacity calculations is sufficient in addressing the above mentioned problem, therefore, the CEE TSOs and CAO achieved the necessary compromise and developed two general ideas how this could be successfully handled.
Experts from CEE TSOs and CAO defined two possible ways to, on the one hand, consider/mitigate the influence of loop flows and, on the other hand, to keep today´s bidding zone structure in the region unchanged. They are under deep investigation of the following two options:
- Security Oriented Option (SOO)
Introduction of a limitation (capping) of exchange schedules between DE and AT by re-dispatching/countertrading measures and considering this limitation in the FB capacity calculation mechanism. - Financial Compensation Oriented Option (FCOO)
Focusing on social welfare differences between situations with/without prioritized schedules for DE-AT, define a compensation mechanism.
CAO experts in synergy with CEE TSO´s WG FBA developed the necessary technical adjustments of CEE D-2 FB capacity calculation methodology which was accepted by the CEE TSOs. Namely, the enhanced flow-based mechanism should as much as possible be based on the former development of a flow-based mechanism for the CEE region. However, the parameters should be checked against the need of changes caused by the agreement of having the new mechanism based on existing bidding zones but considering the influence from unscheduled flows in the region.
CEE TSOs achieved consensus on how to continue the work on the two options in order to better consider the unscheduled flows in the FB methodology. Considerable progress was achieved on the SOO. On December 4th the CEE TSO HLM stated that the preparatory step was finalized and a stepwise assessment of DE→AT exchange cap based on 120 characteristic days can be started. The final draft results for the next phase are expected during the summer of this year.
1 CAO Central Allocation Office GmbH - the common regional transmission capacity allocation office – was established by the eight CEE transmission system operators (TSOs), 50Hertz Transmission GmbH, ČEPS, a.s., Electro-Slovenija d.o.o., TenneT TSO GmbH, MAVIR Hungarian TSO Company Ltd., PSE Operator S.A., SEPS, a.s. and Verbund – Austrian Power Grid AG, in July 2008 to implement a regional coordinated congestion management procedure in the Central Eastern Europe region (CEE).
2
• Joint study by ČEPS, MAVIR, PSE and SEPS regarding the issue of unplanned flows in the CEE region in relation to the common market area Germany – Austria, March 2012 and January 2013
• Relevance of established national bidding areas for European power market integration – an approach to welfare oriented evaluation. A report prepared for Bundesnetzagentur. – Frontier Economics and Consentec, October 2011
• Ongoing discussions connected to the Study on Loop Flows initiated by the European Commission