32 nd IG meeting 15 th July 2015 Enagás, GRTgaz, REN and TIGF.

32nd IG meeting

15th July 2015

Enagás, GRTgaz, REN and TIGF

II.1 Results of the last auctions

3

• Regarding the NC CAM and ENTSOG calendar from April to July 2015, Enagas, REN and TIGF are holding rolling monthly capacity auctions and the quarterly capacity auctions.

• All the auctions have been carried out with no incidents.

• There wasn’t enough demand in order to increase the price of the auctions. So every auction closed at starting prices.

• The flow from Spain to Portugal and France to Spain have seen some interest, meaning there have been few bids.

• The bundled flow from Spain to France and Portugal to Spain have seen no interest.

• Next slides: final result of the auctions where capacity has been allocated. No figures where any capacity has been allocated.

II 1. Results of the last auctions

4

II.1 Annual quarterly capacity auctions VIP. PIRINEOS

No bundled bids from Spain to France

5

II.1 Rolling monthly capacity auctions VIP. PIRINEOS

• Bundled capacities : TIGF and Enagas received no bids for April to July rolling monthly capacity auctions.

• Unbundled capacities : Enagas received no bids for April to June auctions.

6

April 2015 capacity auction results – VIP. IBERICO

Firm monthly Bundled capacity auction-VIP-ES-PT

kWh/h April 2015

Capacity offered 1.565.340

Capacity Allocated 118.081

Capacities at 25º C

Firm monthly Bundled capacity auction-VIP-PT-ES

kWh/h April 2015


Capacity Allocated -

Flow Spain-Portugal

Flow Portugal-Spain

Allocation per Shipper

Firm monthly Bundled capacity Flow Spain-Portugal

kWh/h April 2015


Shipper 1 20.833

Shipper 2 64.001

Shipper 3 33.247

8%

Flow Spain-Portugal

Firm monthly Unbundled capacity auctions-VIP-ES-PT

kWh/h April 2015

Capacity offered 232.727

Capacity Allocated (one shipper)

-

94% of the offered

capacity was

allocated in the annual yearly

auction

7


kWh/h May 2015





kWh/h May 2015



Flow Spain-Portugal

Flow Portugal-Spain



kWh/h May 2015


Shipper 1 162.500

Shipper 2 64.001

15%

Flow Spain-Portugal


kWh/h May 2015



-

94% of the offered

capacity was


auction

May 2015 capacity auction results – VIP. IBERICO

8


kWh/h June 2015





kWh/h June 2015



Flow Spain-Portugal

Flow Portugal-Spain



kWh/h June 2015


Shipper 1 125.000

Shipper 2 64.001

Shipper 3 20.833

Shipper 4 220.833

28%

Flow Spain-Portugal


kWh/h June 2015



-

94% of the offered

capacity was


auction

26-JUN

100% bundled capacity allocated

FCFS

June 2015 capacity auction results – VIP. IBERICO

9


kWh/h July 2015





kWh/h July 2015



Flow Spain-Portugal

Flow Portugal-Spain



kWh/h July 2015


Shipper 1 41.560

Shipper 2 187.500

15%

Flow Spain-Portugal


kWh/h July 2015



-

94% of the offered

capacity was


auction

July 2015 capacity auction results – VIP. IBERICO

10


kWh/h Aug. 2015





kWh/h Aug. 2015



Flow Spain-PortugalFlow Portugal-Spain



kWh/h Aug. 2015


Shipper 3 458.333

Shipper 4 41.560 32%


kWh/h Aug. 2015



94% of the offered

capacity was


auction

August 2015 capacity auction results – VIP. IBERICO

II.2 TSOs proposal of common

methodology to maximize technical

capacity

12

II.2 TSOs proposal of common methodology to maximize technical capacity

The joint method for optimization of the technical capacity established and applied for several years for all the interconnections between TIGF and Enagás, as well as between REN and ENAGAS:

Includes an in-depth analysis of the technical capacities

Solves discrepancies therein on both sides of an interconnection point

Establishes a detailed timetable in line with possible regulatory requirements and commercial needs.

Is consistent with National Investment Plans and Union-wide TYNDP assumptions.

Takes into consideration the best information provided by the market regarding future flows

Is regularly updated, especially when critical changes in demand or infrastructures are identified

The joint method for optimization of technical capacity has been included in the submission made by Enagás Transporte and REN Gasodutos.

13

II.2 TSOs proposal of common methodology to maximize technical capacity

2 different stages: Local technical capacity of the marginal infrastructures linking the networks at

both sides of the interconnection. :

• 2 CSs, one at each side of the interconnection single calculation and optimization commonly performed by establishing the operative conditions of inlet and discharge pressure on both CSs.

• No CSs or only one CS at one side of the Interconnection• Technical capacity calculation by each TSO• Maximization Applying lesser rule

Wide wide system simulation analysis, with the scope of guaranteeing the security and quality of supply of the whole gas system.

Process:

1. Agreement on the set of infrastructures that will be the basis of the calculations

2. Identification of climatic conditions Resultant demand figures, most conservative ones on each direction

3. Agreement on the operative conditions related to critical infrastructures

4. Agreement on simulation parameters

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II.2 TSOs proposal of common methodology to maximize technical capacity Maximization of the Capacity offered:

2 different stages: Calculation of the bundled capacity offered

Each TSO calculates maximum technical capacity and maximum booked capacity in the IP

TSOs consider capacities from CMP procedures in order to maximize the capacity offered

TSOs will take into account Chapter III of the NC CAM 984/2013 and analyze book capacity within the time period to be offered. TSOs consider the maximum value of book capacity, thereby ensuring the minimum available capacity.

The calculation of the bundled capacity to be offered starts with the available capacity for the annual yearly capacity auctions. The available capacity, which has not been allocated, will be offered in the upcoming auctions.

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II.2 TSOs proposal of common methodology to maximize technical capacity Maximization of the Capacity offered:

Offer of bundled capacity at PRISMA Platform and mismatching

TSO’s hold a meeting before uploading the products on PRISMA Platform in order to coordinate the capacities

Products are uploading according to the Auction Calendar 2015

Then PRISMA Platform itself creates bundled and unbundled products as a result of the mismatching

16

II.2 TSOs proposal of common methodology to maximize technical capacity ALREADY DONE:

30-June-2015: Submission to CNMC

14-July-2015: Submission to ERSE

13-February 2015: Questionnaire submitted to ENTSOG

4-February-2015: Technical note regarding VIP Pirineos calculation submitted to NRA’s

FOLLOWING STEPS:

Further details of the technical capacity calculation and optimisation can be found on TIGF, REN and Enagás websites:http://www.tigf.fr/en/what-we-can-offer/transport/capacity-trading/capacity-calculation.html

https://www.ign.ren.pt/web/guest/sub-regulamentacao (Procedure n.º 1)

http://www.enagas.es/stfls/EnagasImport/Ficheros/667/432/NGTS%20-actualizaci%C3%B3n%20dic-13,0.pdf (NGTS-02)http://www.enagas.es/stfls/EnagasImport/Ficheros/912/744/PD%20-actualizaci%C3%B3n%20may-13.pdf (PD-10)

http://www.tigf.fr/en/what-we-can-offer/transport/capacity-trading/capacity-calculation.html

https://www.ign.ren.pt/web/guest/sub-regulamentacao

http://www.enagas.es/stfls/EnagasImport/Ficheros/667/432/NGTS%20-actualizaci%C3%B3n%20dic-13,0.pdf



http://www.enagas.es/stfls/EnagasImport/Ficheros/912/744/PD%20-actualizaci%C3%B3n%20may-13.pdf

http://www.enagas.es/stfls/EnagasImport/Ficheros/912/744/PD%20-actualizaci%C3%B3n%20may-13.pdf

II.3 Bundling capacity at the IPs:

Update

18

II.3 Bundling capacity at the IPs: Update

Enagás:

• When transferring the existing contracts from the physical IPs to the VIPs, Enagás asked users whether they want to bundled their capacity.

• No user decided to bundled its capacity

• No regulation exists to force them to make bundled agreements

• Loss of flexibility contract: daily agreement and secondary market

REN:

• No bundling of capacity contracts occurred on the Portuguese side of the VIP Ibérico (no regulation imposes such bundling)

TIGF:

• No user decided to bundled its capacity

II.4 Status of TSO’s IT systems for

adaptation to daily auctions by 1st

November 2015.

20

II.4 Status of TSO’s IT systems for adaptation to daily auctions by 1st November 2015.

Enagás, REN and TIGF:

• No news regarding the material presented at previous meetings

III. CMP: common methodology of

OSBB for the Region

22

III. CNMC requirement

On 20th May 2015 Enagás was asked by CNMC to send the OSBB methodology before 1st July 2015.

Enagás, REN and TIGF developed a single document which contained the OSBB methodology to be applied in the S-GRI and sent it to CNMC on 30th June 2015.

23

III. Methodology: Additional capacity to be offered.Main principles

Main principles of the Methodology

1. The aim of the methodology is based on the difference between the nomination and renomination.

2. Additional capacity will be offered on daily basis, taking into account the maximum historical deviation between nomination and renomination.

3. There is a nomination value (Trigger Value) from which offered additional capacity is 0 GWh / day.

To make the best estimation of the last confirmed renomination for day D (objective variable) with the best information available of the nomination on

day (D-1) for day D (reference value)

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Additional Capacity Function

Where,

Trigger value:

Risk Index:

Maximum Deviation

Operational Margin (certain % of OBA)

𝑇 𝑉=𝐶𝑛−𝑅𝐼−𝑂𝑀

𝑀𝐷=𝑚𝑎𝑥|(𝑁 𝑖−𝑅 𝑖 )|𝑅𝐼=𝑀 𝐷× 𝑓

0

15

30

45

60

75

90

105

120

135

150

165

180

195

ene-14 feb-14 mar-14 abr-14 may-14 jun-14 jul-14 ago-14 sep-14

GWh/day Example Oversubscription 2014

Renomination+Oversubscription Nomination

Oversubscription Nominal capacity

Trigger value Physical flow

III. Methodology: Additional capacity to be offered.Additional Capacity Calculation

25

The variables that comprise the function of the additional capacity to be offered will be automatically recalculated daily:

Maximum Deviation MD

Risk Index RI

Trigger Value Tv

Additional capacity to be offered function D

The following values for the fixed parameters are proposed as default values: C (% of the OBA for the calculation of the operating margin) = 25%

f (safety factor) = 1.1 (equivalent to 10%)

A (Cap1 of the nominal capacity) = 0.1 (which equals 10% of the nominal capacity)

B (Cap2 of the nominal capacity) = 0.05 (which equals 5% of the nominal capacity)

Before the first practical application of this methodology, the relevant TSOs and NRAs shall agree upon a common set of parameters foreseen throughout the methodology, which shall be updated annually.

III. Methodology: Additional capacity to be offered.Update of the Calculation

26

III. Offer of additional capacity (I)

Additional capacity won’t be offered before April 2016 In order to maximise the offer of bundled capacity, all the additional capacity

will be offered always as bundled capacity Additional capacity will be offered:

1) As a daily standard capacity product through the rolling day ahead capacity auction which takes place at 15:30 UTC (D-1) in winter time or 14:30 UTC (D-1) (day light saving).

2) On a firm basis together with the available capacity Therefore, the capacity to be offered in the rolling day ahead capacity auction

shall be, each day, equal to:

A is the transmission system operator’s technical capacity for each of the standard capacity products;

C is the previous sold technical capacity, adjusted by the capacity which is re-offered in accordance with applicable congestion management procedure;

D is additional capacity, for such day, if any

Capacity to be offered = A – C + D

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III. Offer of additional capacity (II)

Each TSO will upload the capacity to be offered in the rolling day ahead capacity auction (one value each TSO); then, PRISMA will apply the lesser value to determine bundled capacities. The remaining capacity, if any, will be sold as unbundled.

Booked capacity

Technical capacity

Booked capacity

Technical capacity

OS capacity

OS capacity Bundled capacity

Unbundled capacity

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NO Additional capacity will be offered for the day D in case of:

Special programmed operations between both TSOs.

Emergency situations that might activate other processes or

agreements

Shippers or TSOs IT System failures

TOSs justified intervention

ANNUAL REPORT for relevant NRAs.

The additional capacity will not be offered under several circumstances

III. Offer of additional capacity (III)

29

III. Trigger of the buy-back procedure

If: Σ Net nominations in the VIP > technical capacity buy-back procedure

If: operational capacity < technical capacity due to exceptional events no buy-back procedure

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III. Technical and commercial measures

Once the buy-back procedure has been triggered and before applying a market based procedure, TSOs shall verify whether alternative technical and commercial measures can maintain the system’s integrity in a more cost-efficient manner.

Merit order of technical and commercial measures before buying back the capacity:

1. Management of the OBA

2. Interruption of the interruptible capacities under the following order:

a) Within day interruptible capacity (overnomination)

b) Daily interruptible capacity

c) Monthly interruptible capacity

d) Quarterly interruptible capacity

e) Yearly interruptible capacity

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III. Main principles of the market-based procedure

If: Σ Net nominations – OBA – Interruptible capacity > Technical capacity market based procedure

Restriction of renomination rights

• As soon as the TSOs have identified the need to trigger the market based mechanism, they will restrict network users renomination rights upwards and downwards in both flow directions until the end of the gas day.

Platform

• The market-based procedure will be performed at PRISMA platform through the secondary market functionality under the CFO (Call For Orders) mechanism

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III. Timeline

d-1

17:00h(16:00h daylight

saving)Deadline forshippers to renominate.


saving)Start of gas day

15:30h – 16:00h(14:30h-15:00h daylight saving)Daily auction.

Additionalcapacity offer.


saving)Confirmation of renominationsare sent to he

network users, at latest

19:30h- 20:00h(18:30h-19:00h daylight saving)OSBB market

based procedure


saving)Communication

of the results

The timeline shall apply for the oversubscription and buy-back procedure. All the times are marked as UTC.

33

III. Market-based procedure (II)

1 Request of buy-back• The TSO that needs to buy-back capacity will immediately communicate the

situation to the adjacent TSO.

• The TSO will create a “proposal to buy” procedure in the secondary market at PRISMA with the following information:

• The amount of capacity that needs to be bought back.

• The maximum price the TSOs are allowed to pay

• The updated list of allowed network users for participating in the buy-back procedure.

• The “proposal to buy” must:

• Be approved by the adjacent TSO at PRISMA platform.

• Be created and validated by the TSOs at 19:30 UTC at latest (or 18:30 UTC daylignt saving).

If no proposal has been created or no validation has been done, pro-rata rule to all firm capacity already sold shall apply

34

III. Market-based procedure (III)

• Network users are allowed to place “offers to sell” bundled capacity from 19:30 UTC until 20:00 UTC.

• From 20:00 UTC onwards (or 19:00 UTC daylignt saving) “offers to sell” may not be amended or withdrawn.

• After 20:00 UTC all “offers to sell” placed will be considered as binding

Each “offer to sell” shall contain at least: The “offer to sell” is valid if:

• The identity of the network user applying.• The IP and direction of flow.• The amount of capacity to sell.• The price, which shall not be higher than

the maximum price specified by the TSOs in the “proposal to buy”.

• It has been placed by a network user who has nominated his booked capacity,

• The amount of capacity included in the “offer to sell” is equal to or lower than the nominated capacity

2 CFO mechanism: “offers to sell”

No other market based procedure shall be performed afterwards; if the TSOs need to buy-back capacity after 20:00h, a pro-rata rule shall be applied and TSOs will reduce

firm bundled and unbundled capacities accordingly.

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III. Market-based procedure (III)

2 CFO mechanism: matching of “offers to sell” & “proposal to buy”

Rules for matching the “offers to sell” & “proposal to buy”• The TSO that has placed the “proposal to buy” will rank all “offers to sell” according to

the price, the lowest price ranking first.

• When the “offers to sell” from a network users exceeds the “proposal to buy”, TSOs shall buy back capacity up to the amount of capacity included in the “proposal to buy” (partial allocation).

• When two or more “offers to sell” contain the same price and the amount of capacity proposed to sell in aggregate under such “offers to sell” exceeds the remaining capacity to be bought-back, the remaining capacity to be bought back shall be allocated pro-rata between all successful bidders.

• TSOs shall pay all successful network users the clearing price.

If users do not offer enough capacity in the buy-back procedure (i.e. there are not enough “offers to sell” to satisfy the

“proposal to buy”), TSOs will reduce all firm bundled and unbundled capacities

according to pro-rata rule up to the amount of capacity that needs to be

bought back. TSO shall pay network users the regulated tariff for this capacity

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III. Maximum price TSOs are allowed to pay

C = A + B

• A is the maximum price that REN is allowed to pay: shall not exceed the reserve price for firm day-ahead capacity multiplied by a factor of 1.20 .

• B is the maximum price that Enagas is allowed to pay: the price is set as a multiplier of the tariffs to be applied; thus, the price is the reference price + 25% of the reference price .

• C is the maximum price that TSOs are allowed to pay.

• A is the maximum price that TIGF is allowed to pay: it is the average of the clearing prices of the quarterly, monthly, and day ahead auction weighted by the booked quantities during these auctions, plus 25%, for the type of capacity (bundled or unbundled).

• B is the maximum price that Enagas is allowed to pay: the price is set as a multiplier of the tariffs to be applied; thus, the price is the reference price + 25% of the reference price.

• C is the maximum price that TSOs are allowed to pay.

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III. Clearing price

D = final price to be paid by both TSOs = clearing price

Invoicing of capacity

• The TSOs will invoice all network users the regulated tariff, and, if applicable, the corresponding premium for the whole amount of booked capacity (without taking into consideration any capacity reduction).

• However, if the TSO has bought back capacity, then the TSOs will reimburse all successful network users the clearing price for the reduced capacity.

• If pro-rata is to be applied the TSOs will reimburse network users the regulated tariff.

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III. Split of costs

• The cost of the buy-back procedure needs to be split between TSOs, no matter who has placed the “proposal to buy”.

• Cost of the CFO shall be attributed to the TSOs on a pro-rata basis of the maximum price TSOs are allowed to pay:

Pro-rata max. price Split 6,24 23,96 30,2

Cover of costs by TSOs

TSO 1 TSO 2 TOTAL

25% 20%

Regulated tariff 5,0 20,0 25

Max. Price 6,2500 24,0000 30,25

CFO result 30,2

VI.1 Candidate projects of common

interests in the Region

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VI.1 Latest developments

• On 13th May TSO sent the PS-CBA to the EC, ACER, NRAs and Ministries (qualitative template, economic template and financial template)

• The simulation results have been analyzed by JRC who provided the EC a first ranking of projects in June. This first ranking will be discussed at the next regional group

• The EC has postponed the next Regional Group meeting scheduled for early July to September. This delay has been caused by the reopening of the TYNDP due to the cancellation of the South Stream project.

• As a result from the application for grants for studies under the CEF program, REN has been awarded with 50% funding for the engineering and environmental studies of the Celorico – Vale de Frades pipeline.

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VI.1 GR_25_WEST

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VI.1 GR_21_a_WEST

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VI.1 GR_21_c_WEST

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VI.1 GR_21_e_WEST

Thank you for your attention!

32 nd IG meeting 15 th July 2015 Enagás, GRTgaz, REN and TIGF.

Documents

Transcript of 32 nd IG meeting 15 th July 2015 Enagás, GRTgaz, REN and TIGF.