Standard Product (Electricity Balancing Market)


 

'Standard Product' in the EU Internal Electricity Balancing Market means harmonised Balancing product defined by all Transmission System Operators (TSOs) for the Exchange of Balancing Services.

 

Framework Guidelines on Electricity Balancing adopted by the Agency for the Cooperation of Energy Regulators (ACER) require a standardisation of balancing products.

 

To this end, the ENTSO-E draft of the Electricity Balancing Network Code (NC EB) lists the standard characteristics as a minimum set of features which define Balancing Capacity and Balancing Energy products.

 

ACER recognises, however, that TSOs may need some transition time to move from the use of currently non-standardised products (Specific Products) to fully standardised ones (ACER's Recommendation No 03/2015 of 20 July 2015 on the Network Code on Electricity Balancing, p. 6).

 

Standard Products for Balancing Capacity and Standard Products for Balancing Energy pursuant to the NC EB consist of at least the following standard characteristics and information related to a bid defined by a fixed value or an appropriate range, depending on the requirements of the system and type of product:

(a) Preparation Period;

(b) Ramping Period;

(c) Full Activation Time;

(d) minimum and maximum quantity;

(e) Deactivation Period;

(f) price of the bid;

(g) Divisibility;

(h) minimum and maximum duration of Delivery Period;

(i) location; (j) Validity Period; (k) Mode of Activation; and

(l) minimum duration between the end of Deactivation Period and the following activation.

 

The initial pricing method for Standard Products will be based on marginal pricing (pay-as-cleared), unless detailed analysis demonstrates that a different pricing method is more efficient for EU-wide implementation.

This proposal shall be submitted to ACER and all national energy regulatory authorities no later than one year after the NC EB comes into force. 

 

The ENTSO-E Supporting Document for the Network Code on Electricity Balancing of 6 August 2014 brings also the following explanations: 

 

"All TSOs will prepare a common proposal for Standard Products for Balancing Capacity and Standard Products for Balancing Energy which includes specifications of their characteristics that may be more precise than the minimum laid out in NC EB.

 

The NC EB also outlines a process to define, review and update the list of Standard Products, which includes a public consultation with stakeholders. The process foresees that this proposal from all TSOs is submitted to all National Regulatory Authorities (NRAs) and to ACER no later than one year after the NC EB comes into force.

 

The standard characteristics are the minimum set of product attributes that would allow for its exchange through a Common Merit Order List. Standard characteristics should seek to minimise the number of Common Merit Order Lists so as to maximise the liquidity of Balancing Markets. In other words, it could be somehow possible to exchange, through a Common Merit Order List, products that are not fully harmonised provided these products are able to meet the minimum standard characteristics."

 

The following standard characteristics or additional characteristics are considered as a minimum set of characteristics to define the Standard Product:

 

(a) Minimum and maximum quantity – minimum and/or maximum quantity of single bids expressed in MW.

 

(b) Full Activation Time – the sum of Preparation Period and Ramping Period, where:

Preparation Period is time required prior to start of delivery the first MW and

Ramping Period is time when the bid starts the physical activation, delivers the first MW and approaches the requested power of the TSO; expressed in seconds if the bid is not divisible and expressed in MW/s if the bid is divisible.

 

(c) Full Delivery Period – the sum of Ramping Period; Minimum and maximum duration of Delivery Period; and Deactivation Period, where:

- Ramping Period (as described above)

- Minimum and maximum duration of Delivery Period – the time during which the BSP delivers the full requested power to the system - Deactivation Period – the time from the start of physical deactivation of the unit until the full instruction MW has been delivered; expressed in seconds if the bid is not divisible and MW/s if the bid is divisible

 

(d) Divisibility – the minimum divisible unit of Balancing Energy expressed in MW for the divisibility of volume and expressed in seconds for the divisibility of Delivery Period

 

(e) Validity period – the period defined by a beginning time (hh:mm) and an ending time (hh:mm), when the bid could be activated. The Validity Period is at least the Full Delivery Period.

 

(f) price of the bid – the price of Balancing Energy in €/MWh

 

(g) Mode of Activation – manual or automatic

 

(h) The minimal duration between the end of Deactivation Period and the following activation, which allows a time to recover the capacity to provide the service once again.

 

Links: 

ENTSO-E Network Code on Electricity Balancing, Version 3.0 06 August 2014

 

 

Last Updated on Thursday, 24 March 2016 12:58
 

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