BS/EN 62325-351-2016 pdf download.Framework for energy market communications Part 351: CIM European market model exchange profile.
• The development of interconnections was mainly made for security and synchronization reasons.
In a zonal model, transactions are commercially and physically cleared regardless of the location within a market or a bidding area. A reference energy price for a market area or a bidding area is defined usually by a power exchange or a market operator. Bilateral trade may however co-exist with exchange trading.
It should be pointed out that there are different implementations of the zonal model:
• A number of countries have a single price on their hub.
• Some countries have created bidding areas” within their market area, each bidding area could have a different price.
• Market splitting: Some countries have grouped their market areas managed through a single power exchange. It is only when congestion appears that the market area is split Into bidding areas with different prices.
• Market coupling: Some countries have grouped their market areas into a single area, but keeping a power exchange per area. It is only when congestion appears that the market area is split into bidding areas with different prices.
Network congestion within a bidding area is mainly managed by the system operator (SO) through redispatching. Congestion between bidding areas is managed by the system operator (s) and/or the market operator (s) and/or the power exchange (s) either through transmission capacity auctions or through market coupling or market splitting.
In particular. all network studies or network security assessments are carried out by the transmission system operators. Dedicated processes are defined between the transmission system operators in order to ensure a proper and transparent operation of the market. These processes are not intended to be described within this standard as they are related to a specific profile, i.e. IEC 61970-452, and the associated IEC 61970-552. It should be underlined that the results of these studies and assessment are taken into account as “external” constraints by the electricity market.
The energy prices are usually based on the transaction prices between the market participants in a market area or bidding area and are based on the transmission constraints between the bidding areas where market splitting or market coupling is implemented. The role of the market operator is generally carried out by a power exchange (PX).
The European electricity market is based on the concept of regulated third party access (rTPA). In order to permit effective competition the transmission system operators have to allow any electricity supplier non-discriminatory access to the transmission network to supply customers. The conditions of access to the transmission network are regulated by the national regulatory authority. In particular, the energy price on the wholesale market is independent of the price for grid access. The energy price is dependent upon the contract signed by the parties. The grid access price is regulated and is not dependent upon a km-stamp. i.e. the price paid by a party connected to the grid is mainly based on the type of end-user (consumer or producer), but not on the location (electrical path) within the bidding area or market area.
The business concepts. zonal model (single “hubs price) and regulated third party access on which the European style market is based, are thus very different from the nodal model. In the nodal model, a locational marginal price has to be defined for each electrical node used by the security constrained economic dispatch function.
Consequently, the following information is not of interest within the European style market for “exclusively market” operations (network modelling is used to assess the security of the power system and is the sole responsibility of the system operators):
• Detailed network modelling, and in particular data for the security constrained economic dispatch. In Europe, this process is carried out through the balancing process, i.e. activation of the least expensive bids for a reserve resource.
• Detailed generation modelling and all the technical constraints data In order to compute a set point value for a generator. In Europe, this process is carried out through the balancing process, i.e. activation of the least expensive bids for a reserve resource.
• Detailed information on location. In Europe the location information is limited to the hub connection, i.e. the bidding zone where the resource Is located.
Within the European style market, the following processes have been harmonized:
• The acknowledgement process, IEC 62325-451-1: This process deals with the technical and functional acknowledgment of electronic documents to be carried out within any European style market process.
• The scheduling system process (ESS), IEC 62325-451-2: This process deals mainly with the validation of the bilateral trades between market participants and the assessment of the balance of each market participant (how much energy Its resources will generate, how much energy its clients will consume, as well as the import and export of energy).
• The transmission capacity allocation and nomination process (ECAN). IEC 62325-451-3:
This process describes the explicit and implicit auctions of capacity for cross border trades. The secondary market of capacity rights is also described. i.e. once a capacity trader has acquired capacity in an auction, it could be resold in a bilateral transaction or on another auction.
• The settlement and reconciliation process (ESP), IEC 62325-451-4: This process describes how to exchange the information necessary to settle the electricity market. i.e. the comparison of the scheduled energy and the actual meters.BS/EN 62325-351-2016 pdf download.
BS/EN 62325-351-2016 pdf download
PS:Thank you for your support!
