Implementation of the NC Balancing in the Netherlands

Report
Implementation of the Network Code Balancing
in the Netherlands
Marcel Neef
28 November 2013
Programme
1.
2.
3.
4.
5.
6.
Introduction Network Code (NC) Balancing
Process steps in the Netherlands
Current balancing regime
Daily imbalance charges
Balancing actions on the gas exchange
Lessons learned
1. NC on Gas Balancing of Transmission Networks
Harmonization of EU-wide rules on balancing
 Goal: to enable network users throughout the EU to
manage balancing positions economically efficient and to be
able to do it in a non-discriminative manner
 EU timeline
2011
2012
2013
2014
2015
ACER Framework Guidelines
ENTSOG Network Code Balancing
NC approved in comitology process
NC expected to be in effect as of October 2014
Expected end of implementation period is October 2015
2. Process steps in the Netherlands
 GTS assessed the impact of the NC Balancing on the Dutch
market based balancing regime. Number of changes
needed and two choices to be made
 Implementation decisions made in close consultation with
network users, representative organizations and regulator
ACM
 Implementation as of June 2014
3. Current balancing regime




Continuous market based balancing
Network users have primary balancing responsibility
Maximal linepack flexibility available for network users
Near real time information provision
06:00
Shipper A
SBS
Shipper B
06:00
4. Daily imbalance charges
End of day settlement
 NC Balancing states two implementation options:
end of day settlement and Linepack Flexibility Service
06:00
Shipper A
SBS
Shipper B
06:00
4. Daily imbalance charges
Linepack Flexibility Service
 NC Balancing states two implementation options:
end of day settlement and Linepack Flexibility Service
06:00
06:00
Shipper A
Use of Linepack
Flexibility Service
Use of Linepack
Flexibility Service
SBS
Shipper B
Use of Linepack
Flexibility Service
Use of Linepack
Flexibility Service
5. Balancing actions on the gas exchange
 Current regime: balancing actions via dedicated bid price
ladder mechanism; our own initial balancing platform
 NC states two options
– Continue the balancing platform as an interim measure
– Use the within-day market of the gas exchange with NC product merit
order
 Use of the within-day market preferred by network users
and representative organizations
5. Balancing actions on the gas exchange
 Delivery on TTF
 Use of title products in line with NC merit order
 Two products: TTF Balance of day and TTF Next hour
hh:20
prognosis
06:00
SBS prognosis is in orange or
red zone:
TTF Next Hour product
SBS
SBS prognosis is in light
green zone:
TTF Balance of day product
6. Lessons learned
 Close and transparant consultation with stakeholders
contributes to a succesfull implementation process
 Network users prefer to have the lowest balancing costs
 Interpretation NC not always easy
 First step towards harmonization
 Alignment with gas exchange is a lot of work
Thank you for your attention

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