Joint procurement of natural gas for grid operation Slide www.aggm.at 1 Joint procurement of natural gas for grid operation AGGM 19. November 2014
1. General information 2. Procurement Slide 2 Joint procurement of natural gas for grid operation AGGM 19 November 2014
1. General information 2. Procurement Slide 3 Joint procurement of natural gas for grid operation AGGM 19 November 2014
Objectives of the project Minimising procurement costs Acceptance of entire procedure by E Control Austria Providing this service to as many system operators as possible Minimising operative efforts of participating system operators Providing information to the public and for each system operator on AGGM s website Achieving transparency and non discrimination in the procurement process and in operative processes Slide 4 Joint procurement of natural gas for grid operation AGGM 19 November 2014
Participants Number of distribution system operators currently participating: 15 three (five) of which contribute natural gas already procured in 2015 (total amount 7.000 40.000 MWh) According to the latest forecasts of system operators, an annual amount of 220.000 MWh has to be procured This corresponds to 92% of overall consumption in Austria 50 40 30 20 10 0 Latest Forecast, MWh/h Slide 5 Joint procurement of natural gas for grid operation AGGM 19 November 2014
Project status at AGGM Agreements with MGM, CEGH, AGCS, A&B, Wiener Börse and a clearing bank Registration as BGR (in the Eastern and Western market area), as BKV (in the Net Connect Germany market area), as shipper (Open Grid Europe) and as a non clearing member (European Commodity Clearing AG) Procurement concept has been prepared Corresponding IT tools are being developed Determining daily trading volumes Reporting on procurement and settlement particulars Monitoring of forecast quality Slide 6 Joint procurement of natural gas for grid operation AGGM 19 November 2014
1. General information 2. Procurement 3. Balance group management and processes Slide 7 Joint procurement of natural gas for grid operation AGGM 19 November 2014
Procurement at the natural gas exchange Advantages Market based prices Increased probability of bidding below the benchmark price (industry gas price) Transparent and non discriminatory Flexibility Disadvantage: Price development unknown beforehand Slide 8 Joint procurement of natural gas for grid operation AGGM 19 November 2014
Procurement for system operators in the Western market area 2 options Transportation of required volumes from the Eastern market area via Net Connect Germany market area or Procurement at the EEX at the virtual trading point in the Net Connect Germany market area Slide 9 Joint procurement of natural gas for grid operation AGGM 19 November 2014
Best practice for short term provision of balancing energy bids in the CSA s merit order list (MOL) Slide www.aggm.at 10 Joint procurement of natural gas for grid operation AGGM 19. November 2014
Incident on 23 September 2014 Extraordinarily unbalanced withdrawal rates between the storage facilities in Upper Austria and Lower Austria As a consequence, regional congestion occurred in the primary distribution system Call for balancing energy bids in the MOL on 22 September at 11:30 p.m. It took 13 hours to make available an adequate quantity of localised balancing energy bids in the MOL Slide 11 Joint procurement of natural gas for grid operation AGGM 19 November 2014
Best practice Call for balancing energy bids in the MOL by CSA via email and phone upon request by AGGM Storage system operators offer their customers the option to register schedules for larger rates than those currently contracted, up to the technical limit, without contracting additional storage capacities The related terms and conditions are of course to be agreed between the storage system operators and their customers Providers of balancing energy provide calculation that enables bid prices and quantities for MOL bids (buying and selling) to be provided on short notice Balancing energy bids are available 7/24 within 3 hours after the call has been made in the MOL Slide 12 Joint procurement of natural gas for grid operation AGGM 19 November 2014