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Session
Session 17: Interconnections
Time: Friday, 27/May/2011: 11:30am - 1:00pm
Session Chair: Tomislav Plavšić
Location: Casino

Presentations

Impact of German Wind Generation Forecasts on Net Transfer Capacities

Goulven Salic1, Yann Rebours2

1ENSAI, France; 2EDF R&D, France

Because of its localization and its variability, wind generation can rapidly change the pattern of physical electrical flows between AC interconnected countries and adds more uncertainty in power system operation. Therefore, the increasing installed wind generation capacities may hamper the commercial net transfer capacities made available between countries.

Through a statistical analysis using generalized additive models (GAM) on data from March 2008 to June 2010, this paper looks at the impact of the day-ahead hourly forecasts of German wind generation on the day-ahead net transfer capacities (NTCs) from Germany to France.

Results are five-fold. First, the analysis shows that wind generation forecasts have a significant impact on the NTC, by explaining around 14% of the deviance. Second, this effect is negative: more the wind blows, less NTC are available. Third, German wind generation areas have different impacts. The paper shows that 50Hz and Amprion have the greatest influence. Fourth, the German consumption forecast impacts the NTC, but to a lower extent than wind generation forecasts, while the French consumption exhibits no significant effect. Last, the modeling is still incomplete and several improvements are proposed.


Coordinated Development of the Power Systems

Wladyslaw Mielczarski

Technical University of Lodz, Poland

The paper discusses the decisions and policies of the European Commission aiming at the development of the electricity network infrastructure. The experience from the development of the power interconnections between Poland- Lithuania and Germany-Poland is presented


Optimisation of Costs and Benefits in Inter TSO Compensation Mechanism

Ivan Androcec1, Slavko Krajcar2, Ivar Wangensteen3

1Hrvatska elektroprivreda d.d., Croatia; 2Faculty of Electrical Engineering and Computing, Zagreb, Croatia; 3NTNU, Department of Electrical Power Engineering, Trondheim, Norway

Purpose of this paper is to specify the benefits in Inter TSO Compensation mechanism. The intension is to contribute to the future solution for transit in the European Power Market. Cross-border trading is influenced by several mechanisms (congestion management, transit, tariffs, investment) which need to be examined from technical and economical point of view. All mechanisms are interconnected and represent an extensive and complicated set of problems. Cross border exchange has direct economic benefits leading to increased competition, increased market liquidity, stabilized prices and increased security of supply.

In the Regulation 714/2009/EC and Guidelines 774/2010/EC (838/2010/EC) for ITC there is no clear definition of the benefitsconcept and elements that should be considered. We will discuss some of the principles that are suggested and/or applied and study possible consequences. Some illustrations and calculations were done in MATLAB based on full AC optimal power flow. The balance between benefits and costs are analyzed depending on inter-area conditions. In the end we have proposed general algorithm for compensation of losses which include calculation of benefits with detailed principles: real losses with transits minus estimated losses without transits minus estimated benefits with transits. These principles could be applied to any future solution for transit.


Analysis of the Impact of Cross-Border Balancing Arrangements for Northern Europe

Reinier Anne Christiaan van der Veen, Alireza Abbasy, Rudi Hakvoort

Delft University of Technology, Netherlands, The

This paper presents an agent-based analysis of the impact of different cross-border balancing arrangements on balancing market performance for the case of Northern Europe, i.e. the Netherlands, Germany and the Nordic region, taking into account the change in behaviour of Balance Responsible Parties (BRPs). The four compared arrangements are separate markets, Area Control Error (ACE) netting, balancing energy trading, and a common merit order list. It is found that ACE netting reduces the total Dutch imbalance costs by 25%, but that the more advanced arrangements have the potential to reduce those costs for the Netherlands and Germany by as much as 50%. However, in case of the common merit order list the imbalance risks for Nordic BRPs increase largely because of the regional marginal pricing, and the system balance states of Germany and the Nordic region are largely affected due to changes in BRP behaviour. The large imbalance costs reductions in Germany and the Netherlands are the result of the import of more than half of the balancing energy from the Nordic region, which is possible because of the high availability of cross-border capacity between the areas.


Are Flow-Based Capacity Allocation Systems Well Suited for European Integration?

Dmitri Perekhodtsev1, Guido Cervigni2

1LECG, France; 2LECG, Italy

The process of European electricity market integration seems to incline towards using Flow-Based systems to identify the cross-border transmission capacity that is available for market transactions between several interconnected markets. Such systems are believed to better capture the physical nature of power flows between national markets and thus, to allow a more efficient use of existing cross-border transmission capacity.

Regional initiatives that are under development in the Central Eastern Europe and Central Western Europe both plan to adopt the Flow-Based capacity allocation system for their market integration programs. The Target Model developed by the ERGEG’s Project Coordination Group to identify necessary steps towards full market integration by 2015 also indicates the Flow-Based capacity models as a preferred approach.

This paper discusses the main elements of the Flow-Based capacity systems and the mechanism of price formation in such systems when used for implicit or explicit transmission allocation. We also present the challenges faced by the System Operators when implementing such systems, especially when they are used with large national price zones.