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Today there was a very much welcomed @ENTSO_E webinar on the electricity market design of the future (2030 and beyond). Thanks @KPurchala, @gerardd77 & others.
Discussion was split up in:
- (Wholesale) markets
- Congestion mgmt
- Adequacy & investment signals
My notes below
Discussion was split up in:
- (Wholesale) markets
- Congestion mgmt
- Adequacy & investment signals
My notes below
1.a/ Day-ahead & intraday:
- Need for more ID auctions, line btwn DA & ID will blur (thumbs up, also considering controversy around 3 IDAs).
- Shorter & simpler products
- Shorter XB GCTs (stakeholder: align w national GCT)
- Thinking about non-uniform (uplift) payments (!)
- Need for more ID auctions, line btwn DA & ID will blur (thumbs up, also considering controversy around 3 IDAs).
- Shorter & simpler products
- Shorter XB GCTs (stakeholder: align w national GCT)
- Thinking about non-uniform (uplift) payments (!)
1.b/ Balancing:
- shorter time horizon for reserve procurement + level-playing field
- start thinking about co-optimisation. Q1: if DA & ID merge into a series of auctions, is DA still the right time to do the co-optimisation? Q2: Computation burden? Need for uplifts?
- shorter time horizon for reserve procurement + level-playing field
- start thinking about co-optimisation. Q1: if DA & ID merge into a series of auctions, is DA still the right time to do the co-optimisation? Q2: Computation burden? Need for uplifts?
1.c (transmission capacity) forward markets:
- Their importance not enough emphasised
- Need to be complete (liquidity in all timeframes + ACER: longer contracts & maybe creation of hubs)
- Innovation by thinking about FB allocation!
- Their importance not enough emphasised
- Need to be complete (liquidity in all timeframes + ACER: longer contracts & maybe creation of hubs)
- Innovation by thinking about FB allocation!
2.a/ Congestion mgmt (most controversial!)
- No black & white zonal vs nodal but intermediate options (slide)
Opinion: advanced zonal, good idea! Other 2 intermediate options require changes to CACM (implementation as slow as changing bidding zones?) + incentives & pricing issues
- No black & white zonal vs nodal but intermediate options (slide)
Opinion: advanced zonal, good idea! Other 2 intermediate options require changes to CACM (implementation as slow as changing bidding zones?) + incentives & pricing issues
2.b/ Congestion mgmt (most controversial!)
- Nodal not happening before 2030 (most stakeholders agree)
- Not very convinced about the listed arguments, except the first :D. See also https://fsr.eui.eu/bidding-zones-configuration-liquidity-and-competition-in-the-electricity-market/ Isnt the last argument rather a reason to go in the ''nodal direction''?
- Nodal not happening before 2030 (most stakeholders agree)
- Not very convinced about the listed arguments, except the first :D. See also https://fsr.eui.eu/bidding-zones-configuration-liquidity-and-competition-in-the-electricity-market/ Isnt the last argument rather a reason to go in the ''nodal direction''?
3/ Adequacy and investment signals:
- Scarcity pricing is seriously considered but yet unclear whether it is a complement or a substitute for a CRM
- Legal issue raised by DG ENER: a thin line between CRMs and pricing schemes for some ancillary services
- Scarcity pricing is seriously considered but yet unclear whether it is a complement or a substitute for a CRM
- Legal issue raised by DG ENER: a thin line between CRMs and pricing schemes for some ancillary services
Extra: Flexibility markets
- Some stakeholders are pro & wonder why not considered today (see flexibility webinar tmrrw)
- Others say focus on improving existing rather than creating new markets
* Opinion: flexibility markets have flaws but what is the (short-term) alternative?
- Some stakeholders are pro & wonder why not considered today (see flexibility webinar tmrrw)
- Others say focus on improving existing rather than creating new markets
* Opinion: flexibility markets have flaws but what is the (short-term) alternative?
