NBM stakeholder reference group had a Teams meeting 21 September. The takeaways listed below reflect the key points at the meeting.
Presentations held at the Nordic Stakeholder Reference Group are found on the right hand side.
Status of the NBM roadmap
The status of the roadmap was reported. aFRR CM Nordic go-live achieved. Due to the delay of the flow-based and challenges of the local IT-development of the mFRR EAM solutions in Statnett and Svenska krafnät the roadmap will be updated in Q1 2023: Go-live of mFRR EAM will be delayed and 15min ISP is also challenged.
The NBM Program is currently assessing all possible measures on how to increase speed of the development, as well as decrease scope for the local mFRR EAM development. We expect to set a new target date for the Nordic EAM go-live by Q1 2023.
Questions were raised regarding MARI and PICASSO derogation dates of July 2024 and their roles. At the starting point those dates are firm and we aim to reach them.
There was also a question regarding if mFRR CM market (local) implementation plans would be impacted. It was explained that there is no direct dependency between mFRR EAM and mFRR CM local implementations.
aFRR CM, short status after go-live
Successful go-live for the Nordic aFRR Capacity Market on 7 December 2022. Statnett, Svenska Kraftnät and Fingrid already had national aFRR capacity markets using the same IT platform. Energinet joined at the time of the Nordic go-live. Optimal solution has been found for each auction run.
According to plan Fingrid will partially join the market 24 December. According to the terms and conditions for the Finnish market, this will allow the procurement of Nordic aFRR capacity without reservation of cross-zonal transmission capacity against the dominating direction.
Status 15min ISP
15 minutes ISP components and interdependencies were presented. Key elements are the possibility to set balance prior 15min to the delivery in the Cross-border Intraday Markets, price of the imbalance from the mFRR EAM 15min and validation of the actual deliveries in 15 min energy metering.
Timeline overview of the national implementations and eSett were also presented.
There was a question regarding when 15 minutes values for bilateral trades should be reported in Sweden and the starting was clarified as from 1 November 2023.
mFRR EAM, information on handle quarter issue with direct activation
The requirement on the BSP when contracted in the CM is to deliver direct activatable bids in the EAM. For the last quarter hour of the CM bid the direct activatable bid exceeds the delivery period of the CM bid - thus creating a risk of the same energy being sold twice and an imbalance. A practical solution is being developed by the TSOs.
There was an opinion that TSOs should solve the problem and not be moved to the BSPs. An additional bid parameter for the BSP as one possible solution was mentioned.
Design choices for future imbalance pricing in the Nordics with MARI and Picasso
Balancing energy activation prices and the imbalance price will be decoupled compared to current situation, and give changed incentives, which may be difficult to fully foresee the impact of (depends on actual prices)
The financial incentive to deliver balancing energy for the BSP through the cost of an imbalance may be weakened, and other measures necessary
Expectation of much more variation in the imbalance price between all bidding zones, both in and between the Nordic countries – especially when we are connected to both MARI and Picasso
It may be hard to justify using the Max price approach directly, due to how aFRR prices will be set in the future
Cases where we will need to apply the Value of Avoided Activation are likely limited – when we are connected to both MARI and Picasso
The Nordic TSOs are working on setting up the work plan for H1-2023 in more detail, and will provide information on the NBM webpage in January. A Q&A regarding the topic will be added to this summary shortly.
Next stakeholder reference group meeting will take place during February-March 2023. More information will follow in January.
For any further questions and/or comments, please get in contact with us here
Agenda NBM Stakeholder Reference Group 4_2022
Roadmap update - stakeholder reference meeting 14.12.2022
Nordic aFRR CM - stakeholder reference meeting 14.12.2022
ISP status - stakeholder reference meeting 14.12.2022
mFRR EAM - information on handling quarter issue with direct activation - stakeholder reference meeting 14.12.2022
Option space for future imbalance pricing continued - stakeholder reference meeting 14.12.2022
Questions and answers from Future imbalance price design with MARI and PICASSO 14.12.2022