What are your thoughts or simulation results of the balancing costs in a regime of 15 min ISP and one price settlement?
We think the balancing costs will mainly depend on other fundamental drivers in the Nordic energy market. With that said, the introduction of aFRR will mean that the TSOs are increasing the total volume of reserves, and this may lead to a short term increase in balancing costs.
Are all Nordic countries implementing 15 min ISP at the same time?
Yes. It is most efficient to implement 15 minutes ISP in the Nordic countries at the same date. If countries implement 15 minutes ISP at different dates, cost will rise for the common settlement system of eSett and we will have a less efficient Nordic balancing market. Market parties operating in several Nordic countries will have to relate to different ISPs, which will increase costs.
The datahubs in Finland and Sweden are expected to go live in 2021. Will the change to 15 minutes ISP come after the go live of these hubs?
The Finnish datahub is expected to go live before the change to 15 minutes ISP. Though the current planning of the Swedish datahub indicates go live in Q4 2022, an updated project plan is expected due to delays in the legal process. Thus, even though the implementation of 15 min ISP is now delayed, the Nordic TSOs would like to avoid any dependency between the datahubs and 15 minutes ISP, while avoiding potential extra costs for market parties, in particular DSOs, if 15 minutes ISP comes before the go live of the datahubs.
Will the new 15 min settlement be implemented across both DK1 and DK2 at the same time?
Current working assumption is that it will be implemented at the same time in DK1 and DK2.
Will all meters have to be reconfigured or replaced when we move to 15 minutes ISP?
Which meters to be reconfigured or replaced to have a 15 minutes granularity is a national decision taken by each NRA or ministry dependent of national legislation. In general, production meters with the potential exception of micro production, exchange points between meter grid areas and consumption above a certain treshold will be reconfigured or replaced.
Is there more clarity how it will be ensured that ID time unit will be 15 minutes after implementing ISP 15?
According to the Clean Energy Package, market participants have the right to be able to trade in the same time intervals in both DA and ID as the ISP. The XBID system is already now ready to support trading on 15 minutes interval and the Nordic TSOs have sent a change request to have 15 min ID market time unit implemented simultaneously as 15 minutes ISP.
How about DA time unit, as also requested by electricity regulation entering into force 1.1.2020?
To our knowledge there is not yet a common position among NEMO’s on how to solve the 15 min DA trade requirement from Clean Energy Package. The main challenge is to cross-match 15 minutes and 60 minutes products in the auction Euphemia.
Is there analysis on how HVDC ramping will be increased as ISP 15 is introduced?
Preliminary analysis by TSOs shows 15 min ISP in the Nordics will open the possibility to increase energy trading opportunities as a result of new HVDC ramping restrictions. Nordic TSOs will look deeper into this topic during 2020, and we intend to have a proposal for future restrictions ready before summer 2021.
What will be the method for profiling consumers not measured at 15 minutes? Will it differ from country to country?
There is no plan for a common Nordic profiling method for meters with lower granularity than 15 minutes. Each Nordic country will apply their own method for profiling, but there will be similarities.
In DK the plan is to apply the profile generated from those consumers from where 15 min data are available and apply that to those meters that are hourly based. By this, the hourly profiling will get more and more precise, the more meters that are converted into 15 min resolution.
When applying for a derogation from 15 min ISP, TSOs must make an assessment of the consequences of requested derogation on adjacent markets and of the possible risks for the integration of balancing markets across Europe. According to EBGL article 62(5)(d-e). What is the timetable for conducting the assessment and will it undergo public consultation?
The Nordic TSOs will apply for a derogation according to EBGL article 62(5). The requests for derogation will be submitted to the national regulators and include the necessary assessment.
In addition to Norway, is there analysis available on how long the legal processes are expected to take and much before implementing ISP 15 the legislation should be ready?
The legal process differs somewhat from one country to the other, e.g. to what extent regulations are amended and agreed by regulators or ministries. The Nordic TSOs in dialogue with the regulators and stakeholders will ensure sufficient time for implementation between the regulation is finalized and it enters into force.