SWE Day-ahead market coupling

16th IG meeting (conference call), 17th June 2014

2

Agenda

Feedback after go-live of full market coupling

Feedback of 17th May incident

1

2

Successful go-live the 13th of May 2014

3

SWE and NWE now operate together : the Multi Regional Coupling (MRC) is in place

Full pre- and post-coupling solutions are applied for the France-Spain interconnection (after the “common synchronized” mode in place since February 2014)

Dec Jan Feb March April May June July August

Operational activities

Testing activities

Regulatory evolutions

High level planning – SWE Full coupling

4

2014

Operators training

Procedures refinement

Integration testing

NWE test for SWE Start up solution Successful testing

Auction rules evolution Final Regulatory approvals (RTE Import/Export

Rules + Spanish Operational procedures)

NWE / SWE tests

Go live

Prep

Today

REE Public consultation

NWE/SWE Task Force

Simulation tests

Member tests

SWE Full Coupling Go live window

Integration testing

Regulatory approval IFE rules

2013

High level Spanish regulation approval

French Public consultation

Signed contracts

CNMC Public consultation

GO LIVE 13th MAY

NWE project

MIBEL

Italy -Slovenia

Czech – Slovak / + Hungary

SWE Project = Portugal, Spain, France

Market coupling projects

NWE + SWE Project = MRC 2500 TWh/year (75% load of ENTSO-E)

5

Price convergence for the first weeks after full coupling

week 1

week 2 week3

Price ES = PT = FR = DE

Price ES = PT = FR <>DE

Price ES = FR <> PT

Price ES = PT <> FR

Price PT <> ES <> FR

Remark: margin of error 0,01 €/MWh

High Price convergence in MRC countries on the 15th May 2014 for 6:00-7:00 hourly product

Price in the MRC region, Thursday 15 May, 6:00–7:00

Price ( €/MWh) Spread Direction

Price > Price FR

Price < Price FR

Use of long term capacity rights (nominations / UIOSI)

Since the go-live of the SWE full market coupling, nominations of long term rights have decreased

-1500

-1000

-500

0

500

1000

1500

MW

Long Term Nominations D-1 nominations / bilateral exchange

Full coupling

Use of long term capacity rights (nominations / UIOSI)

9

Agenda

Feedback after go-live

Feedback of 17th May incident

1

2

Causes and impacts of the 17th May incident

Major IT issue at RTE • Hardware failure (electrical issue) • Malfunctioning of backup solutions Loss of IT tools for the real-time management of interconnections from 8:00 to

14:00

Loss of IT tool used for matching long term programs and capacities (PUMA) • Impacts for managing intra-day programs • Impacts for the finalization of the long term nominations and day-ahead capacities

matching processes Loss of the IT tool for auctioning and market parties nominations (MORGAN)

• Reception of LT nominations • Cancellation of intraday auctions on FR-BE border • Cancellation of explicit daily auction on FR-CH border

Impacts on France-Spanish interconnector from the 17th May incident

• France-Spain day-ahead capacity at zero partial decoupling of the SWE region

• No impacts on the timings and functioning of the Multi Regional Coupling

• The capacity non allocated through market coupling has been allocated through the first intraday auction (current fallback mode of market coupling for FR-ES interconnection)

• Shadow auctions (foreseen for March 2015) would not have allowed the allocation of capacity in D-1(as D-1 capacity was set at zero)

Results of intraday auction after the 17th May incident

Price of the explicit intraday auctions on the 18/05 vs. the d-1 spread

Price of Intraday ES -> FR Price of Intraday FR -> ES D-1 Spread (price ES – price FR)

Utilization of FR-ES capacity on the 18/05

Nominations Intraday Nominations Long Term NTC Net balance