NEDA WORKSHOP FOR BIDDING NEDA Click to edit Master … · 2017. 11. 8. · Click to edit Master...

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NEDA WORKSHOP FOR BIDDING NEDA PARTICIPANTS

9th May 2017

Empire Hotel, Subang Jaya

A RING-FENCED ENTITY PURSUANT TO ESA 1990

[email protected] www.singlebuyer.com.my



2NEDA Workshop for PPA/SLA, Expired PPA/SLA & Large Merchant Generators on 9 May 2017

Segment 1 | Segment 2

Workshop Program

TIME TOPICS

0800-0900 Workshop Registration

0900-0910 Opening Address

0910-1000Segment 1: Introduction to NEDANEDA Updates, Important Dates, and Introduction To NEDA

1000-1020 Tea break

1020-1200Segment 2: How to be a NEDA ParticipantRegistration Process, PSS, Metering, Fuel Arrangement, Grid Requirement, Licensing, Agreement,

1200-1300Segment 3 : How does NEDA WorkPre Bidding, Bidding, Scheduling, Dispatch, Settlement

1300-1400 Lunch break

1400-1500Segment 3 : How does NEDA Work (continue)Non-dispatch, Dispute Resolution, Rule Change

1500-1530Segment 4: Market Participant Interface (MPI)Training on MPI for offer submission and viewing of market data

1530- 1600Segment 5: One Stop Settlement Centre (OSSC)Training on OSSC for settlement process

1600-1620 Tea break

1620-1700 Segment 6: Q&A


Click to edit Master subtitle styleUPDATES|IMPORTANT DATES|INTRODUCTION TO NEDA


Introduction to NEDASegment 1


5

NEDA Milestones

NEDA Workshop for PPA/SLA, Expired PPA/SLA & Large Merchant Generators on 9 May 2017

24th Aug

201615th Sep

2016

10th & 11th

Oct 2016

13th Jan

2017

22nd Mar

2017

1st Apr

2017

17th Apr

2017

NEDA Phase 2 Workshop I

NEDA Phase 2 Workshop II

NEDA Phase 2 Trial Run commenced

SB submit amendment to proposed NEDA Rules

NEDA Workshop for Price Takers

NEDA Go Live for Price Takers

Guidelines for NEDA issued

9th May

2017

1st Jun

2017

Full NEDA Go Live

NEDA Workshop for Bidding Participants

28th Jul

2016

SB submit proposed NEDA Rules

9th Dec

2016

MPI launched

12th Jan

2017

Bidding activities commenced

6

NEDA Trial Run Highlights

16Total

participants in

Trial Run

Range of System Marginal Price (SMP) from January to April 201733sen/kWh

18sen/kWh

*Data in April measured until 25th April 2017

11PPA/SLA

4 Price Takers

1 Ex-PPA

150 148

Bidding activities January- April 2017

7

13

11

6

-1

1

3

5

7

9

11

13

15

0

20

40

60

80

100

120

140

160

Jan Feb Mar Apr

NO

OF

PLA

NTS

PA

RTI

CIP

ATE

D

NO

OF

BID

SU

BM

ISSI

ON

49

77


Enable energy-efficient options,

particularly the use of efficient

technology, such as Cogeneration

Plant to participate in the electricitymarket

Energy Efficiency

7

The New Enhanced Dispatch Arrangement (NEDA) is designed to enhance competition and cost

efficiency of the Single Buyer market, with the following objectives:

Improve cost efficiency in generation

through short-run competition

Cost Efficiency

Provide opportunity for non-PPA/SLA

Generators, such as Cogeneration

Plant, Small Renewable Plant,

Franchise Utilities and Ex-PPA/SLA

Generators to operate as Merchant

Generators to supply and sell energy

to the Single Buyer to enhance theirbusiness options.

Business Opportunity

Note:NEDA is about energy transaction. Other existing processes (e.g.Licensing, Grid Connection) is not part of NEDA and must be carriedout before applying for NEDA.


8

NEDA Mechanism

PPA & SLA holders will submit heat rate and/or VORlower than contracted levels; eligible participantswill submit bids

Single Buyer (SB) uses these submissions to producethe Day-Ahead schedule

Grid System Operator (GSO) reruns the schedulewhen required and issues real-time dispatchinstructions (except Price Taker)

SB/TNBD settles payment

Benefits: Introduces short term competition to make themarket more efficient and encourage greaterparticipation. Opportunities for merchant generators

NE

D

A

Requirements: Operational expertise, IT system and settlementmetering

PPA/SLA

Ex-PPA/SLALarge Merchant

Price Takers

Heat Rate and/or VOR

Generation Schedule & Settlements

Heat Rate and/or VORPrice Quantity

Generation Schedule & Settlements

Generation Plan

Settlements


9

Category of NEDA Participant

PPA/SLAGenerators

Ex-PPA/SLA Generators

(utilizing Power

Sector Gas)

Large Merchant Generators

Co-Gen Plant Renewable Plant Franchise Utility Part PPA/SLA Any generator approved

by ST to participate in NEDA

with export capacity ≥ 30 MW

Price Takers

Co-Gen Renewable Energy Small Franchise Utility Expired PPA/SLA on

own fuel Any generator

approved by ST

with export capacity

100kW – 29.9MW without PPA/SLA

Merchant Generators (Non-PPA)

NEDA


How NEDA Participants participate in NEDA

Participant types Bid Cap Paid at

1. PPA/SLA Generators Heat rate and/or VOR

Own PPA/SLA value for heat rate & VOR

Pay as bid

2. Ex- PPA/SLA Generators Heat rate and/or VOR

Heat rate capVOR cap

Pay as bid

3. Large Merchant Generators Price-quantity pair Price cap Pay as bid

4. Price Takers Price taker, no price bid required (subject to appropriate metering being installed)

Higher of Forecast or Actual System marginal price (SMP)


11

Monthly Caps (Heat Rate/VOR/Price Caps)

Bids by Ex-PPA/SLA and Large Merchant generators are subject to a cap.

SB will calculate and publish the monthly caps (i.e. Price/Heat Rate/VOR caps) for the upcoming month by the third week of the previous month.

How the Price/Heat Rate/VOR caps are derived

Heat Rate Cap

Identify the most expensive Heat Rate from PPA/SLA thermal generator (G) on primary fuel available for dispatch, using a simple stacking order.

VOR Cap

Identify the most expensive VOR from PPA/SLA thermal generator (H) available for the month, using a simple stacking order.

Price Cap

Heat Rate Cap X F + VOR Capwhere F is the most expensive primary fuel price for the month

Note: 1. Heat Rate Cap and VOR Cap may be from 2 different PPA/SLA Generators2. The most expensive fuel price now is the Quarterly LNG Price


12

System Marginal Price (SMP)

Price Takers will be paid the

higher of Forecast and

Actual SMPs capped at the

registered capacity.

Forecast SMP:

Based on Day-Ahead

Dispatch Schedule

produced at D-1

1200hr

Actual SMP:

Based on Actual

Dispatch by GSO

a Centrally Dispatched Generating Facility;

not ramping up or down at the Maximum Ramp Up Rate of

Generating Facility or Maximum Ramp Down Rate of Generating

Facility;

not generating at Minimum Stable Load or maximum load;

not a Hydro Plant;

not Renewable Plant;

not a testing unit;

running under normal industry conditions;

not a constrained generator due to transmission or fuel constraint;

not subject to gas curtailment; and

running on primary fuel (i.e. not running on back-up fuel).

A Marginal Generator is defined as a generator that is:

SMP is defined as the price of the most expensive Marginal Generator scheduled/dispatched to meet

demand in the half-hour period


13

Example of SMP derivation

9.64

10.72

11.91

12.03

13.23

0

10

20

30

40

50

60

70

80

90

100M

W D

em

an

d

hrs

G1 G2 G3 G4 G5• Highest energy cost at 14:30 hr is

13.23sen/kWh from G5.

• However, G5 is a solar generator, therefore G5 cannot set the SMP

• The next highest is 12.03sen/kWh from G4.

• G4 meets all the conditions to set the SMP, hence the SMP for 14:30 hris 12.03sen/kWh

sen/kWh

14:30


14

The process of determining the SMP is repeated for every 30-min interval to produce a 48-

SMP for a 24-hour Trading Day

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

000

0

003

0

010

0

013

0

020

0

023

0

030

0

033

0

040

0

043

0

050

0

053

0

060

0

063

0

070

0

073

0

080

0

083

0

090

0

093

0

100

0

103

0

110

0

113

0

120

0

123

0

130

0

133

0

140

0

143

0

150

0

153

0

160

0

163

0

170

0

173

0

180

0

183

0

190

0

193

0

200

0

203

0

210

0

213

0

220

0

223

0

230

0

233

0

Forecast System Marginal Price, RM/kWh

Tue,11-Apr-17 Sun,23-Apr-17


Click to edit Master subtitle styleTEA BREAK



17

To participate in NEDA, Applicants shall:

possess appropriate Generation Licenses issued by ST

register with the ST as NEDA Participants in accordance with the Registration

process set out in the NEDA Rules Appendix D ; and

have concluded the relevant NEDA Agreement(s)

Applicants shall be responsible for their own costs and expenses incurred

in relation to the Registration process

NEDA Registration Process


18

Applicant shall confirm that the relevant generating facility has met the following pre-requisites:

• Sufficient land rights for the ongoing operation of the Generation Facility over the site where the Generation Facility is situated

• Sufficient fuel arrangements in place at the Generation Facilities to enable participation in NEDA up to its full Export Capacity, including where an Ex-PPA/SLA Generator is not utilising Own Fuel that it is in receipt of Power Sector Gas;

• Accurate metering installed and operational, and confirmed as adequate for Settlement purposes in accordance with the Metering Guidelines;

• An interconnection point with capacity for export onto the Grid System or Distribution Network for its full Export Capacity;

• For Grid System connected Generation Facilities, submitted an endorsement from the Grid Owner that it has successfully completed a power system study and received a commissioning test certificate from the Energy Commission

• for Distribution Network connected Generation Facilities, submitted an endorsement from TNB Distribution that it has successfully completed a power system study;

• No material on-going disputes and is not in default under any material agreement required for the ongoing operation of the Generation Facility;

Remark: These pre-requisites are stated in Appendix D of NEDA Rules

NEDA Registration Process


19

Notes:

* Only for Transmission-Connected Generator

Starting

point

Gen

submits

registration

Gen

applies

license

Gen

executes

Agreeme

nt

1 -2

month

3 months

or LESS20 days

MPI/OSSC/related

account setupSB

SB verifies

registration

& notifies

ST

SB sends

NEDA

Agreem

ent

Gen Estimated

Participation

Date

PT to fulfil:

PSS

Facility

Requirement

GSO*

validation

process

ST issues

license

3 monthsAs

NEDA Registration Process- Estimated Processing Time

For a complete registration process, please refer to NEDA Rules and the MPI

reasonably

practicable


20

NEDA Registration Process for PPA/SLA Generators

Execution of Supplemental Agreement

Supplemental License Issuance by ST

Potential Applicant with interest to participate in NEDA

Applicant submits NEDA Registration Form to SB

SB issues Firm Participation Date notice to NEDA Participant

SB issues Verification Confirmation to ST

Verification by SB

SB issues Verification Rejection to ST

Return to Applicant

Response by Applicant

End of Registration Process

Start Operation as NEDA Participant

NO

YES

YES NO

Applicant submits License Application to ST



21

NEDA Registration Process for Ex-PPA/SLA Generators


As per existing process for Grid Connection (supporting documents to be submitted together with NEDA Registration Form)

Power System Study Facility Requirement Finance Fuel Arrangement




Verification by SB


Execution of NEDA Agreement


Return to Applicant




NO

YES


NEDA Registration Process starts here

NO YES

License issuance by ST


22

NEDA Registration Process for Large Merchant Generators


Appendix 1: NEDA Registration Process for Large Merchant Generator category

Execution of NEDA Agreement License issuance by ST

Appendix 2: NEDA Registration Process for Price Taker category

As per existing process for Grid Connection (supporting documents to be submitted together with NEDA Registration Form)


Verification by SB


Return to Applicant



NO YES


NEDA Registration Process starts here


Power System Study Facility Requirement Finance Fuel Arrangement MGC Tests

NO YES




Execution of NEDA Agreement

License issuance by ST


23

Power System Study (PSS)

for Transmission Connected Generatorby TNB Transmission Planning Department


24

• Three main objectives of PSS

i. To assess the impact to the grid system due to power injection from Generator

ii. Impact to the Generator due to disturbance in the grid system

iii. To identify mitigation options to ensure compliance

• PSS results will be used to consider whether grid connection is allowed

• Scope of the PSS includes

• Steady state analysis - Power flow

• To identify any violations on thermal limits of transmission elements

• To ensure voltage are within limits

• Fault Analysis – to ensure no equipment exceeds limits due to addition of Generator

• Transient Analysis

• Ability of Generator to remain connected to the grid system due to disturbance in the grid

• Identify mitigation options for compliance to MGC

• All associated cost related to mitigation is to be borne by the Generator

SEGMENT 6Power System Study (PSS) is to be carried out by participants at own cost


25

Step 1 Generator appoint Consultant for PSS

Step 2

Generator formally inform Grid Owner (GO) on the appointment of

Consultant

• To append company /consultant profile and team for PSS

• Past experience with regard to the PSS

Step 3 NDA between GO and Consultant for grid data exchange for PSS

Step 4

Consultant perform PSS (refer to Guideline)

• Inception report to be submitted and agreed upon prior to

proceeding with PSS

Step 5 Consultant present PSS findings to Approval Committee

Step 6 Grid Owner issue letter to Generator

SEGMENT 6Steps leading to PSS


26

NEDA Participants

Plant capacity: <50MW

Plant capacity : ≥ 50MW

STEADY-STATE ANALYSISi. Power flow studyii. Voltage assessmentiii. Short-circuit analysisiv. Contingencies analysis (N-1, N-2)

TRANSIENT ANALYSISi. Category A - No contingenciesii. Category B – Event resulting in the loss of a single elementiii. Category C – Event resulting in the loss of two / multiple elementsiv. Critical Fault Clearing Time

STEADY-STATE ANALYSISi. Power flow studyii. Voltage assessmentiii. Short-circuit analysisiv. Contingencies analysis (N-1, N-2)

Notes: All scopes are to meet with related criteria as stated in MGC / TSRS

Scopes of PSS


27

• Stage 1 – during PSS• Single line diagrams related to the grid connection with associated ratings

• Main parameters/data of generators

• Number of installed generators

• Generator ratings (MVA, impedances etc)

• Intended maximum capacity in NEDA participation

• Stage 2 – if grid connection is allowed/approved• All of the data in stage 1

• Simulation models of each generator (with associated parameters)

• Models will be used for planning studies (operation & long term)

SEGMENT 6NEDA Participants are to submit data and simulation models


28

Metering Requirementby Metering Department, TNB Distribution


29

SEGMENT 6Metering Installation Requirement


Meters (main and check) for measuring the import or export of electricity shall

be provided and maintained by TNB (subjected to existing meter installation).

NEDA participants shall ensure the point at which every supply line terminates in

their premise is visible and easy to access by TNB personnel.

NEDA participants shall provide the meter board or metering panel for the

installation of meters and their accessories. The diagrams for the meter board and metering panel are available in Electricity Supply Application Handbook

(ESAH) and shall also be referred to TNB for the latest specifications.

30



NEDA participants shall ensure that the Celcom General Packet Radio Service

(GPRS) signal strength or any other mode of communication approved by TNB in

the metering room / location is adequate or sufficient for effective GPRS

communication of Remote Meter Reading (RMR). The minimum GPRS signal

strength shall be -77 dBm and above.

For existing low voltage supply with metering CT, TNB shall provide low voltage CTs

for the metering installation.

For existing medium voltage installations, CTs and VTs are provided and installed

by TNB at TNB's outgoing switchgear. For situation whereby CTs and VTs could not

be provided by TNB, CTs and VTs shall be provided and installed by customer /

NEDA participant.

For high voltage installations, customer / NEDA participant shall provide the metering CTs and VTs according to TNB’s specifications in ESAH

31



Based on declared export capacity, TNB may request NEDA participants to

install separate metering system at their own cost.

Metering

CT Size

Declared Export Capacity At

Interconnection Voltage 11 kV

Declared Export Capacity At

Interconnection Voltage 33 kV

Minimum (kW) Maximum (kW) Minimum (kW) Maximum (kW)

50 / 5 A 401 800 1,210 2,430

100 / 5 A 801 1,600 2,431 4,850

200 / 5 A 1,601 3,240 4,851 9,700

300 / 5 A 3,241 4,853 N / A N / A

400 / 5 A N / A N / A 9,701 19,400

500 / 5 A N / A N / A 19,401 24,200

32



TNB shall conduct site visit to assess suitability of existing metering installation before

commencement of NEDA.

Depending on situation, TNB may request NEDA participants to conduct accuracy test

for existing metering CTs and VTs.

Customers participating in NEDA programme shall agree that all data declared in the

Market Participants Interface (MPI) web portal are final and binding for settlement purposes.

NEDA participants are required to submit following documents for metering installation

related matters:-

Schematic Drawings (signed by a Professional Engineer)

Metering Room Layout Borang Maklumat Awal Perjangkaan Besar

33



Further query can be forwarded to :-

Roslaini Hasan Basri [email protected]

Norly Farhan Binti Isa [email protected]

mailto:[email protected]

mailto:[email protected]

34



Borang Maklumat Awal

Perjangkaan Besar

35



Borang Pengesahan

Kesediaan Tapak untuk

Pemasangan Meter

Pengguna Kuasa Besar

(LPC)

36



Direct connection to

distribution grid

X

X

CD

CD

OCEF

M

RPR

~

Cable termination

TNB

TNB Grid

37

Fuel Arrangementby Petronas


38

Definition of Power Sector Gas

Power sector gas is that which is covered in the Gas Framework Agreement (GFA) between TNB and PETRONAS.

At power sector level, this provides gas at a regulated power sector gas price up to the regulated gas volume threshold and power sector gas price above regulated gas volume.

Generators entitled to power sector gas for their contracted/registered capacity:

All generators who receive power sector gas will bid heat rates and VOR. Their energy payment is calculated based on

Their metered output

Their heat rate & VOR bids

Regulated gas price

PPA/SLA holders

Expired PPA/SLA holders

SEGMENT 2Fuel management for expired PPA/SLA under Power Sector Gas


39

As the GFA gas volumes are forecasted by SB on an annual basis, the change in fuel arrangement will only take effect at the start of following year.

Changing between power sector fuel

and own fuel

• Should the generator change its fuel source, the generator will need to register this change with NEDA

Fuel switch registered

• This is treated as a registration amendment which will take circa 3 months to process

Bid under new fuel arrangement

• From the start of the new gas year

Fuel management Re-registration of fuel for expired PPA/SLA holders


40

Category of NEDA Participant

PPA/SLAGenerators

Ex-PPA/SLA Generators

(utilizing Power

Sector Gas)

Large Merchant Generators

Co-Gen Plant Renewable Plant Franchise Utility Part PPA/SLA Any generator approved

by ST to participate in NEDA

with export capacity ≥ 30 MW

Price Takers

Co-Gen Renewable Energy Small Franchise Utility Expired PPA/SLA on

own fuel Any generator

approved by ST

with export capacity

100kW – 29.9MW without PPA/SLA

Merchant Generators (Non-PPA)

NEDA


41

Fuel Arrangement Elements


• Facilities for gas supply• Transmission pipeline

• Distribution pipeline*

• Agreements with Transporter / Distributer• Grid Connection Agreement

• Validation Manual

• Operation Communication Manual

• Gas Sales Agreement (GSA)

42

Gas Sales Agreement (GSA) Principles for NEDA


• Non-firm arrangement for gas volume• Fixed Daily Quantity (DQ) subject to daily confirmation basis

• Seller’s gas availability

• Buyer’s nomination

• Excess gas for volume above DQ

• Gas delivery associated cost is pass through to buyer• Pipeline capacity booking

• Pipeline surcharges (if any)

43

Additional Provision for Existing and Expired PPA/SLA Generators


• Expired PPA/SLA Generator need to enter into new GSA for NEDA

• This GSA for NEDA will be part of Gas Framework Agreement (GFA)

44

Grid System Requirementby Grid System Operator


45

GSO requirements for Price Takers

132KV Grid Connected:

• IOM (Interconnection Operating Manual) as operation reference.

• Interconnection facilities information must be shared with GSO.

• Switching sequences and safety procedures need to be followed as per in IOM.

• The protection settings and requirements as per Grid Code and TNB.

• Operate according to Operational Voltage limits.

• Establishing Communication facilities with GSO.

• Authorized and operating personnel information must be shared with GSO.

• Outages planning and schedule need to be shared and discussed with GSO.


46


Interconnection Operation Manual (IOM)

• Facilitate the control and operation of the facility by TNB and respective interconnection

facilities.

• It applies prudent utility practice to ensure safe and reliable operation of the

interconnection facilities.

• The IOM sets out the duties and routine procedures to be carried out by those persons who

are directly control and operation of TNB and the interconnection facilities, to ensure the

coordination of inter related operation of the TNB power system and the interconnection

facilities.

• IOM need to be formulated with agreement of TNB and the co-gen facility Joint Operation

Committee (JOC), a body established by the parties to manage.

• Any changes in the interconnection facilities should be inform to each parties and

amendment need to be made in IOM.


47


Emergency Operation

• Co- Gen facilities shall co-operate with GSO during emergency condition.

• Co- Gen facilities need follow instruction from GSO to restore system back to normal

(load reduction, shutting down the generator).


48

Licensing Requirementby Suruhanjaya Tenaga


Tatacara Perlesenan di BawahProgram New Enhanced Dispatch

Arrangement (“NEDA”)

Pelaksanaan Program NEDA- bagi menggalakkan persaingan dalam

sektor penjanaan tenaga elektrik dan mengurangkan kos penjanaan di

Semenanjung Malaysia.

Carta Aliran Pemprosesan Lesen

di bawah Program NEDA

Carta Aliran Pemprosesan Lesen

License issuance after NEDA agreement

License application after verification confirmation

1• Mendapatkan kelulusan “Verification confirmation from SB”

2• Membayar fi pemprosesan atau pindaan lesen sebanyak RM100

3• Laporan kajian sistem kuasa ‘Power System Study’

4• Salinan perjanjian NEDA

5• Mematuhi garis panduan pelesenan yang ditetapkan oleh Suruhanjaya

Kriteria Utama Pemberian Lesen

• Penjana yang mempunyai lesen induk Pindaan Lesen

Jenis Pemberian Lesen

Jenis Pemberian Lesen

• Penjana tidak mempunyai lesen induk di bawah Seksyen 9 seperti penjana baru atau penjana yang telah tamat tempoh kontrak PPA/SLA Lesen Baru

Sekiranya penyertaan di bawah program NEDA dibatalkan, lesen baru atau pindaan terma dan syarat lesen tersebut secara langsung akan terbatal namun

tetapi tidak menjejaskan terma dan syarat lesen induk.

TURUTAN PERMOHONAN

Permohonan secara manual melalui borang

ST/JPIKSE/NEDA/2017/v1 beserta dokumen

sokongan:

i.‘Verification confirmation daripada SB’;

ii.Laporan ‘Power System Study’; dan

iii.salinan perjanjian NEDA.

PEMOHON

Menerima & memproses permohonan dengan fi

pemprosesan lesen atau pindaan lesen

sebanyak RM 100 dikenakan kepada pemohon

UNIT LESEN

• Pemohon akan dimaklumkan berkenaan status

kelulusan lesen melalui surat rasmi

• Lesen diserahkan selepas pemohon membayar

fi lesen bagi permohonan baru atau pindaan

daripada lesen pepasangan persendirian

kepada lesen pepasangan awam

UNIT LESEN

i.Permohonan lesen awam < 30MW oleh

Suruhanjaya

ii.Permohonan lesen awam ≥ 30MW =oleh YB

Menteri.

KELULUSAN

Loji janakuasa milik pemohon boleh beroperasi

mengikut Garis Panduan NEDA (GP/ST/No.

12/2017)

PEMOHON

57

NEDA Agreementby Single Buyer


58

Governing Rules

During “Go-Live”

NEDA Rules called “Guidelines for NEDA” will be applicable.

It has been registered under the ESA 1990 and effective from the date of registration i.e. 17 April 2017


59

Status of NEDA relative to SBRs and PPAs/SLAs

PPA/SLAs

Single Buyer Rules

NEDA Rules

Amended PPA/SLAs will

prevail over Single

Buyer Rules

Single Buyer Rules will

prevail over NEDA Rules

In the event of a conflict between provisions, the order of precedence

is as follows:


60

NEDA Contractual Framework

- There are 3 types of agreement to create NEDA contractual framework

NEDA FRAMEWORK AGREEMENT

NEDA DEED OF ACCESSION

PPA/SLA SUPPLEMENTAL AGREEMENTS

What it does: allows future parties to accede to NEDA Framework Agreement and

become a NEDA Party

Who signs: future parties

Who will be a party: the incoming party and TNB (on behalf of all existing NEDA Parties)

What it does: contractually binding signatories to the NEDA Rules and makes

effective the limitation of liability in the NEDA Rules for the benefit of all parties

Who will sign: TNB, Expired PPA/SLA & Large Merchant Generators participating at

“Go-Live” Date.

Who will be a party: multilateral NEDA parties including TNB in its capacity as Single

Buyer and GSO.

How do future parties accede: via NEDA Deed of Accession

What it does: (i) amends PPAs and SLAs to ensure NEDA participation does not affect

rights/obligations under PPA/SLA; (ii) allows PPA and SLA holders to accede to NEDA

Framework Agreement as original parties (to avoid signing two agreements); and (iii) to

allow PPA and SLA holders to declare a lower Heat Rate and/or VOR.

Who signs: PPA and SLA holders.

Who will be party: bilateral, between each PPA/SLA holder and Single Buyer.


61

NEDA Contractual Framework (Cont.)

How Merchant Generator cease to be a NEDA Party:

1. De-registration

• By Suruhanjaya Tenaga

• Will occur in specified circumstances, for example if a NEDA Participant is inactive for aperiod of one year

• Deregistration Notice will be published on MPI

2. Voluntary withdrawal

• will allow a Merchant Generator to elect to cease being a NEDA Participant pursuant to theprocedure set out in the NEDA Rules.

SB will maintain a list of NEDA Participants on its website.


62

End of Segment 1 & Segment 2

Thank You


NEDA WORKSHOP FOR BIDDING NEDA PARTICIPANTS

9th May 2017

Empire Hotel, Subang Jaya


[email protected] www.singlebuyer.com.my

Part 2




Segment 3 | Segment 4 | Segment 5



How does NEDA workSegment 3

PRE-BIDDING|BIDDING|SCHEDULING|DISPATCH|SETTLEMENT

NEDA Workshop for PPA/SLA, Expired PPA/SLA & Large Merchant Generators on 9 May 2017 65

Bidding Window

66

End of previous wkReceive demand profile for the upcoming week and 1 week in arrears of Actual SMP

3rd wk of previous monthReceive Monthly Cap

D-2 1000 hrs(gate opening)Start bidding for Day D

Day D (Trading Day)Generate following dispatch instruction (DI)

1st wk of the following monthSubmit actual invoice to SB based on metered output

30 days after receipt of actual invoiceReceive payments from TNB

D-1 1000 hrs(gate closure)End of bidding for Day D

Bid revisions (price, HR, VOR, MW)

allowed

Only availabilityrevision allowed

until one hr before DI issued

D-1 1700 hrsReceive forecast demand profile and Dispatch Schedule for Day D

NEDA Summary of Timeline for Bidding Participants


67

SEGMENT

3

Day-1 1200hrs

Day-1 1700hrs

Weekly

Every 3rd week of the month

When required

Forecast SMP based on indicative Day Ahead Dispatch Schedule

Day Ahead Load Forecast used for Day Ahead Dispatch Schedule

Specific dispatch schedules for centrally dispatched generators

Week Ahead Load Forecast for the following week

1 week in arrears of Actual SMP

Heat rate/VOR/Price caps for the following month

Generation and transmission constraints

Any suspension of NEDA

Price Taker to plan own schedule by

1400hrs on the same day.

To prepare plant for generation on Day D

For fuel and bid planning

To plan bids

To modify bids if affected

Pre-bidding information available in the MPI


68

SEGMENT

3

Gate opening & closure

• Gate opening :10 am Day-2

• Gate closure : 10 am Day-1

Bid periods

• 2 periods (peak and off-peak)

comprising 10 bids each* (i.e. 20 bids

in total)

– Off Peak:

00.00 hrs - 07.59 hrs and

22.00 hrs - 23.59 hrs

– Peak: 08.00 hrs- 21.59 hrs.

PeakOffPeak

OffPeak

Dispatch on Gate Opening on Gate Closure on

Monday from

00.00 hours

Thursday at 10.00

hoursFriday at 9.59 hours

Tuesday from

00.00 hours

Friday at 10.00 hours Monday at 9.59

hours

Wednesday from

00.00 hours

Monday at 10.00

hoursTuesday at 9.59

hours

Thursday from

00.00 hours

Tuesday at 10.00

hoursWednesday at 9.59

hours

Friday from 00.00

hours

Wednesday at 10.00

hours Thursday at 9.59

hours

Saturday from

00.00 hours

Thursday at 10.00


Sunday from

00.00 hours

Thursday at 10.00


* No. of bids for Expired PPA/SLA and Large Merchant

Bidding Window


69

PPA/SLA generators can offer heat rate and/or VOR offers that are lower than their PPA/SLA rates.

- Heat rate bids submitted must follow the format of the PPA/SLA

- VOR bid: 1 bid for each period

10,500

11,000

11,500

12,000

12,500

13,000

300 400 500 600 700 800 900

Hea

t ra

te (

kJ/k

Wh

)

Load (MW)

Example of PPA/SLA heat rate curve and reduced heat rate curve

PPA/SLA Heat Rate Reduced Heat Rate

SEGMENT 3Bidding Format for PPA/SLA Generators (Heat Rate and/or VOR)


70

Expired PPA/SLA holders bid heat rate and VOR:

Heat rate table can contain up to 10 points

VOR bid: 1 bid for each period

Bids are monotonically decreasing

Minimum block size is 10 MW

Bidding Period : Off Peak Bidding Period

VOR (RM/kWh): 0.11

Band Load (MW) Heat Rate

(kJ/kWh)

1 100.00 10,925.00

2 135.50 10,921.00

3 160.00 10,916.00

4 190.00 10,911.00

5 220.00 10,905.44

6 250.00 10,901.00

7 280.00 10,897.00

8 320.25 10,892.00

9 340.00 10,887.00

10 370.00 10,883.55

The last point corresponds to

the maximum MW offered

The 1st point corresponds to

the minimum MW offered

SEGMENT

3

10,850

10,860

10,870

10,880

10,890

10,900

10,910

10,920

10,930

0 50 100 150 200 250 300 350 400

He

at R

ate

(kJ

/kW

h)

Generation (MW)

Offer submission determines the END value for the band

range

Bidding Format for Ex-PPA/SLA Generators (Heat Rate and VOR)


71

What are price quantity pairs?

• Price-quantity pairs (up to a maximum of 10 bids for each bidding period) are submitted by eligible Merchant Generators

• Bids are monotonically increasing (i.e. always increasing).

• Minimum block size : 10 MW

SEGMENT

3Bidding Period : Peak Bidding Period

Band Quantity

(MW)

Price

(RM/kWh)

1 100.00 0.11

2 110.00 0.14

3 131.40 0.15

4 150.00 0.20

5 200.00 0.22

6 225.65 0.25

7 240.00 0.26

8 270.00 0.27

9 285.50 0.28

10 310.00 0.30

The last point corresponds to

the maximum MW offered

The 1st point corresponds to

the minimum MW offered

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0 25 50 75 100 125 150 175 200 225 250 275 300 325 350

Pri

ce (

RM

/kW

h)

Generation (MW)

Offer submission determines the END value for the band

range

Bidding Format for Large Merchant Generators (Price-Quantity Pair)


72

Bidding window:

New bid replaces previous one

• Participants may cancel bid orsubmit multiple bids, with eachnew bid overriding the previousone, up to gate closure at D-11000hrs.

• Bids remaining in the system at gate closure will be used in scheduling, dispatch and settlements.

After gate closure: Availability adjustment

upwards/ downwards only due to plant constraint

• Only be accepted where plant constraints require the available capacity be reduced.

• Subject to GSO’s approval

Any schedules produced by the GSO after gate closure will use the latest bids submitted by the generators, or PPA/SLA rates if no/invalid bids are received.

Merchant Generators will not be scheduled or dispatched if no/invalid bids are received

SEGMENT

3

Bid revision


73

Scheduling and Dispatch is based on the Least Cost Dispatching Methodology

For Large Merchant Generators & Expired PPA/SLA, start-up cost is considered only for scheduling and settlement of fast start plants.

Fast start plants are defined as plants capable of at least two-shifting.

SEGMENT 3

Plant configuration for merchant and Ex-PPA/SLA

holders

Plant owner decides what configuration to

use to deliver the offered electricity

Scheduling & Dispatch: Start up cost for Large Merchant Generators & Ex-PPA/SLA


OBJECTIVE

To operate the grid in a safe, secure

and economical (least cost operation).

As per Malaysian Grid Code and

NEDA rules.

SEGMENT 3

74

Dispatch


Things that causes major changes to the grid:

Weather ( deviation in demand)

Generation Availability ( tripping and forced outages) Gas allocation ( unscheduled outages)

Network Constraint (transmission network outages)

Interconnection ( Thailand and Singapore

Interconnection)

75

SEGMENT 3

PLEXOS optimization tool been used to assist us in better decision making on

generation dispatch in ensuring least cost operation.

Dispatch Deviation from Day Ahead Schedule


76

PPA/SLA holders

• Payment at the lower of PPA/SLA heat rate+VOR or bid heat rate+VOR

• EP =FP (VOR NEO)

Expired PPA holders

• Payment at heat rate+VOR as bid

• Start up cost as bid for fast start generator

• EP = FP (VOR MO)

Large Merchant generator

• Payment at bid price

• Start up cost as bid for fast start generator

• EP = PB MO

Settlement for all participants is carried out monthly in arrears following receipt of the participant’s actual invoice.

If there are unresolved disputes, settlement will be carried out according to SB’s assessment of the amount payable.

Settlement


77

Settlement based on submission of Bid (Heat Rate and/or VOR) for Expired PPA/SLA Generators

Example of Energy Payment:

Min MW = 100MW, Max MW = 370MW

Generation = 200MW

Fuel Price = RM15/GJ

358,27RM

000,11RM358,16RM

MWh100kWh

RM11.0

GJ

RM15

kWh

kJ44.905,10MWh100

)MOVOR(FP

10,850

10,860

10,870

10,880

10,890

10,900

10,910

10,920

10,930

0 100 200 300 400

He

at R

ate

(kJ

/kW

h)

Generation (MW)

Bidding Period : Off Peak Bidding Period

VOR (RM/kWh): 0.11

Band Load (MW) Heat Rate

(kJ/kWh)

1 100.00 10,925.00

2 135.50 10,921.00

3 160.00 10,916.00

4 190.00 10,911.00

5 220.00 10,905.44

6 250.00 10,901.00

7 280.00 10,897.00

8 320.25 10,892.00

9 340.00 10,887.00

10 370.00 10,883.55

ENERGY PAYMENT EP = FP (VOR MO)

• Metering is captured at half hourly interval

• 100MWh energy is equivalent to 200MW load


78

Settlement for submission of Bid (Price-Quantity pair) for Large Merchant Generators

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0 25 50 75 100 125 150 175 200 225 250 275 300 325 350

Pri

ce (

RM

/kW

h)

Generation (MW)

Example of Energy Payment:

• Min MW = 100MW, Max MW = 310MW

• Generation = 150MW

330,19

11000)4.131150(/20.04

11000)1104.131(/15.03

11000)100110(/14.02

11000)0100(/11.01

4321

RMyPaymentTotalEnerg

hrMWkWhRMBand

hrMWkWhRMBand

hrMWkWhRMBand

hrMWkWhRMBand

BandBandBandBandentEnergyPaym

ENERGY PAYMENT EP = PB X MO

• Metering is captured at half hourly interval

• For the purpose of illustrating the calculation, it is assumed at 1 hour interval

Bidding Period : Peak Bidding Period

Band Quantity

(MW)

Price

(RM/kWh)

1 100.00 0.11

2 110.00 0.14

3 131.40 0.15

4 150.00 0.20

5 200.00 0.22

6 225.65 0.25

7 240.00 0.26

8 270.00 0.27

9 285.50 0.28

10 310.00 0.30


Click to edit Master subtitle styleLUNCH BREAK





How does NEDA workSegment 3

80

NON-DISPATCH| DISPUTE RESOLUTION|RULE CHANGE



Non-Dispatch

Failure to meet Dispatch Instruction for Expired PPA/SLA and Large Merchant

• For PPA/SLA generators, the FDI consequences in PPA/SLA prevails

• GSO will issue a GSO Non-compliance Notice in FDI event

• NEDA Assessment Unit (NAU) in Single Buyer will investigate and impose conditions

• Eg: impose on the merchant generator an FDI payment of max RM150/MW x (the difference in MW between dispatch instruction and actual generated level as metered)

Cancelled start payment for Merchant fast start plants

• Generators that have a start cancelled by the GSO will be paid at registered start up cost.


Dispute Resolution

Suruhanjaya Tenaga (“ST”)

ST will hear the dispute itself

If there is NO conflict of interest

ST has the necessary expertise to determine

the dispute

ST will refer dispute to arbitration or mediation in accordance with KLRCA


Dispute Resolution (Cont.)

Disputes on application & interpretation of NEDA Rules

NEDA Participant’s view Single Buyer acted in manner inconsistent with Single Buyer Rules or NEDA Rules

Single Buyer’s view that NEDA Participants acted in a manner that prevents Single Buyer from achieving its objectives under NEDA Rules

NEDA Participants view that Single Buyer acted in an unreasonable discriminatory manner against NEDA Participant as prescribed in the Single Buyer Rules or NEDA Rules

Disputes

heard under

NEDA Rules.

Does NOT

cover

disputes

arising under

Generator

contracts


Dispute Resolution (Cont.)

NEDA Participant/SB has raised the dispute

with the other party and made

attempts to negotiate in good faith

without involvement of ST

If cannot resolve, NEDA

Participant/SB serves statement to ST setting out brief history &

cause of dispute, list of issues &

actions taken by parties for

resolution before raising it with ST

ST within 10 working days elect to hear

case or refer to arbitration/mediation

If arbitration, ST will issue notice to parties & rules of KLRCA will apply.

It will be in KL, conducted in

English under 1 arbitrator

If ST hears the case, ST will request for

meetings with parties (together or

separately)

ST will request for all information and

determine dispute after considering all

relevant matters

Cost in hearing dispute may be

recovered from one or both parties

ST in awarding cost to parties, ST shall

also consider conduct of parties in

the dispute


Rule Change to amend NEDA Rules

Rule Change can be done in 2 ways

ST’s own initiative

Rule Change Proposal from Participants

(NEDA Participants, SB, GSO, Grid Owner etc)

Assessed by ST for minor or urgent amendments

Assessed by Rule Change Panel for all other Rule Change

Proposals


ST will convene & chair Rule Change Panel.

at least 2 reps but no more than 3 from PPA/SLA Generators

1 rep from Ex-PPA/SLA on power sector gas

1 rep from Price Takers

1 rep from Large Merchant Generators

1 rep each from Single Buyer & GSO

1 rep each from Grid Owner, Distribution & ST

Other experts deemed necessary by ST

• Panel

may

consist of

the

following:

• All cost in

assessing

Rule

Change

Proposal

will be

borne by

ST


Rule Change Proposal (“RCP”)

Submission of RCP –nature, purpose,

detailed drafting of relevant NEDA Rules

ST within 5 working days of receipt

makes assessment on merit

If reject, ST will respond to Proposer with reasons

If accept, Rule Change Panel is convened, publish

RCP on SB Website & circulate RCP to

Participants


Rule Change Proposal Process

ST will determine in 10 Working Days to produce Final Rule Change Decision or refer to

Government

Government may direct ST to make Final Rule

Change Decision.

Any Rule Change decision made by ST will

be published

Panel will provide Draft Rule Change Recommendation to ST – consists of

details of RCP, summary of submissions, Panels’ recommended

change & justification

Draft Rule Change Recommendation

published on SB Website & MPI, circulated to

Participants for comments.

Participants have 15 Working Days to

provide response.

After review responses, Panel provides Final Rule Change Recommendation

to ST – consists of RCP details, summary of responses, recommended change, justification & proposed drafting. Final

Rule Change Recommendation published on SB Website & MPI


Other Rule Change Procedures

Minor Rule Change Procedures

• Where ST views change will not materially impact NEDA Participants

• Will be unilaterally amended by ST

• Will be published on SB Website & MPI

Urgent Rule Change Procedures

• When is Urgent Rule Change used:

• ST becomes aware of material error

• Occurrence of event which threatens security of supply

• Threatens viability of ESI

• Jeopardise ST’s objectives under Electricity Supply Act 1990

• Will be unilaterally amended by ST

• Will be published on SB Website & MPI

Click to edit Master subtitle styleDEMO


Market Participant Interface (MPI)Segment 4


91

Fees Amount (RM) Borne by

One time OSSC license fees 23,000 Single Buyer

Recurring annual OSSC fees 5,000 NEDA Participants

NEDA Participants will be using IT infrastructure for viewing of market data for submission of Planned

Generation Schedule (PGS) and settlement purposes

The cost associated with IT-infra is in the form of…

• MPI - to submit gen plan, view meter data and market information

• OSSC - for settlement purposes


92

• MPI is a platform for NEDA Participants to submit bid/gen plan, view market data and download metered data

• MPI is available online at https://mpi.singlebuyer.com.my

• User manual is available in the MPI website

Market Participant Interface (MPI)


https://mpi.singlebuyer.com.my/

Click to edit Master subtitle styleDEMO


One Stop Settlement CentreSegment 5


NEDA Workshop for Price Takers, 22nd March 2017, Cyberview Resort and Spa 94

One Stop Settlement Centre(OSSC) is used at our end toprocess the monthly invoicesubmitted by the NEDAParticipants.

On top of hardcopy submission,all the NEDA Participan also needto submit all the monthly billingdetails via OSSC in order for SB toprocess the invoice.

The details need to be submittedwithin 7 working days after end ofrelevant Billing Period. (Forexample: February Invoice, PriceTaker need to login to OSSC earlyof March to upload the billingdetails. )

https://ossc.singlebuyer.com.myWhat you should know about OSSC?

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Click to edit Master subtitle styleQ & A Session



97

Thank You

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