Mod_18_10 :
Intra Day Trading in the SEM
Working Group 4
August 19th 2010
SEMO High-Level Impact Assessment
1
Actions from Working Group 3
●
At WG3 SEMO took an action to document the options below and obtain a high-level impact
assessment following compliance check by RAs:
●
Group options A:

Option 1A – Unused I/C Capacity Reassignment;

Option 1B – I/C updated bids;
●
●
Group options B

Participant Option 2 – Split SEM Day; and

Option SEMO – Split SEM Day for Interconnector Trading.

Option TSO1 – Additional Interconnector Trading Opportunities; and

Option TSO2 – Additional Interconnector Trading Opportunities allowing System Security
Actions.
“Light” IA for Participant Option 3 Alignment with EFAs
2
Actions from Working Group 3
●
The Options were documented in the paper: “Intra-Day Trading Options for Impact
Assessment”
●
SEMO then commenced Impact Assessment of all options
●
On 4th August, RAs issued a note: “Compliance with the Congestion Management Guidelines
and Impact Assessment of Intra Day Options”, which ruled Group options A as being noncompliant
●
On receipt of this note, SEMO directed the vendor to discontinue assessment of the Group A
options
●
In the paper “Intra-Day Trading Options for Impact Assessment”, Group B options were
designated as Option Group 1 – with two variants for analysis


●
●
IU participation only and
All Generator User participation
Participant Option 3 was designated as Option Group 2 – again with two variants for analysis

IU participation only and

All Generator User participation
Impact assessment was continued with the vendor for Option Group 1 and Option Group 2
and SEMO considered its operational impact
3
Overview of Options Assessed
● Option Group 1
 One Gate Closure on TD-1 (TD-1 AM : EA1)
 Additional Gate Closure on TD-1 (TD-1 PM : EA2)
 Additional Gate Closure on TD (TD AM : WD1)
● Variant 1: Interconnector Unit Participation Only
● Variant 2: All Generator Unit Participation
4
Overview of Options Assessed (cont’d)
● Option Group 2
 One Gate Closure on TD-1 (TD-1 AM : EA1)
 Additional six Gate Closures on TD, covering an appropriate
Optimisation Time Horizon (which could be 30 hours or less,
depending on the impacts on the optimisation), starting in four
hours time (TD AM : WD1 to WD6)
● Variant 1: Interconnector Unit Participation Only
● Variant 2: All Generator Unit Participation
5
Impact Assessments
● Caveat:
 The following is a high-level impact
assessment based on available information
and is subject to change based on detailed
design
6
Impact Assessments
● Option Group 1
Central Market System Impacts
7
Option Group 1 – Areas of Central
Market System affected
(both IUs only and All Users)
Interface
Affects
MP-SMO Interface
(Submissions)
SEMO, MPs
MI Applications
SEMO
MI Database
SEMO
TSO-SMO interface
TSOs, IA & SEMO
IA-SMO interface
IA, SEMO
MA DSI - MI Interface
SEMO
MA DSP - MI Interface
SEMO
MI_MOI interface
SEMO
MI-Settlement interface
SEMO
MI-MP Interface (Report
publication)
MPs
SMO-TSO Interface
TSOs, SEMO
SMO-IA Interface
IA, SEMO
8
Option Group 1 (IUs only) : MP-SMO
Interface (MPs & SEMO)
● MP-SMO Interface:
 Provision for 3 gate-windows : GW1 (existing gate window), GW2 (EA2 gate
window) and GW3 (WD gate window)
 Enhance Interconnector Unit (IU) submissions to include an indicator which
specifies the gate-window in to which MPs are submitting IU data
 Enhance the IU submission to include provision for an extra flag to indicate
whether the MP wants to protect schedules from the previous runs
 Change XML Schema, MPI displays, validations and underlying data structures
to allow IUs to be resubmitted in the two new GWs
 Ensure consistency between Type II and Type III communication
 Possible validation on changes in Price between gates
 Unresolved Issue: Max number of (P, Q) pairs for IUs in (P,Q) curve
reconstruction?
9
Option Group 1(IUs only) : MI
Applications (SEMO)
● MI Applications:
●
Add additional and/or modify existing events in the Event Manager to manage the
market timelines to allow IU re-submissions
●
Possible modification of market status display with “Open/Close” status
●
Possible additional validations on (P,Q) pairs in subsequent submissions that
correlate to a certain percentage
10
Option Group 1(IUs only) : MI Database
(SEMO)
● MI Database:
● IU tables changes to support gate-window indicator and schedule
protection flag
 Each set of MP IU Offer submissions will be preserved in the database
with an indicator field
● New tables – both operational and audit – to store the (P,Q) pairs
computed by MA Ex-post applications
● Possible new mapping table to map the incoming gate-window
numbers to run_types in MA
11
Option Group 1(IUs only) : TSO-SMO
interface (TSOs & SEMO)
● TSO-SMO interface:
● Support new submissions for load forecast and wind forecast during the
additional Ex-Ante and WD1 gate window (gate-window indicator fields
etc.)
12
Option Group 1(IUs only): IA-SMO
interface (IA & SEMO)
● IA-SMO interface:
● Timeline changes to IA submissions for Ex-Ante runs: Support new IA
submissions for Modified Interconnector User Nominations (MIUN)
datasets for Ex-Ante Sequence and WD1 runs
13
Option Group 1 (IUs only):
MA DSI - MI Interface (SEMO)
MA DSI - MI Interface:
● Creation of amended curves for Ex-Post UUC
14
Option Group 1 (IUs only):
MA DSP - MI Interface (SEMO)
MA DSP - MI Interface:
● For IUs, DSP will populate the (P, Q) pairs used for Ex-post runs at
Trading Period resolution
● New tables will be created to store this data
15
Option Group 1 (IUs only): MI_MOI
interface: (SEMO)
● MI_MOI interface:
● Change the existing MI-MOI displays to show additional IU COD
parameters and data sets – “Trading Day”, “Operational Day” and “Audit”
tabs will be impacted
● Change the existing set of MI-MOI displays to render new set of TSO
and IA inbound data to the MO via the MOI
● Create new of MI-MOI displays to display the (P, Q) pairs published by
MA-DSP in the Ex-Post run
16
Option Group 1 (IUs only): MI-Settlement
interface (SEMO)
● MI-Settlement interface:
● All TOD and COD pushed to Settlement
17
Option Group 1 (IUs only): MI-MP
Interface (Report publication):
(Significant MP impact)
● MI-MP Interface (Report publication):
●
Publication of new COD sets for multiple gate-windows for Interconnector Units.
●
Multiple new reports to publish additional load and wind forecasts
●
New reports to include Market Schedule summary, System Marginal Price and
Shadow Prices from both the EA2 and WD1 reports to General Public
●
New reports to include Market Schedule detail, Interconnector user nominations,
and Modified Interconnector Unit Nominations from both the EA2 and WD1
reports to MPs
●
Create new reports or update existing reports to include Modified Interconnector
Unit Nominations received from the IA subsequent to both the EA2 and WD1
runs to MPs and General Public
●
Create new reports to publish the (P, Q) pairs at the Trading Period level for
Interconnector Units computed by MA Ex-post application to MPs
18
Option Group 1 (IUs only): SMO-TSO
Interface (TSOs & SEMO)
● SMO-TSO Interface:
● Publish a new set of data for IU bids and offers with gate-windows
submitted for the EA2 run to TSOs
● Publish a new set of data for IU bids and offers with gate-windows
submitted for the WD1 run to TSOs -- TSO will need to exclude the (P,Q)
curves not utilized by the SEM systems
● Publish new sets of data for MIUNs received from the IA subsequent to
the EA2 and WD1 runs to the TSOs
● Publish a new set of Market schedules from the EA2 and WD1 runs to
the TSOs
19
Option Group 1 (IUs only): SMO-IA
Interface (IA & SEMO)
● SMO-IA Interface:
● Publish new sets of outbound data i.e., IUNs from the EA2 and
WD1 runs to the IAs
● MI-IA Interface:
● Publish a new set of EA2 reports to IAs
● Publish a new set of WD1 reports to IAs
20
Option Group 1 (All Generator
Participation):
● All Changes as for Option Group 1 IU Users only
 plus additional changes to:
•
MP-SMO Interface:
(changes to Gen Offer submissions, MPI displays)
•
MI Database:
(GW indicator for Gens, additional (P,Q) storage)
•
MA DSI – MI Interface:
( (P,Q) curves for Ex-Post UUC)
•
MA DSP - MI Interface:
(different MA logic to compute (P,Q) curves for Gens
new tables for (P,Q) pairs)
•
MI_MOI interface:
(new displays for Gen Offer parameters)
•
MI-Settlement interface:
(additional Gen (P,Q) pairs included in settlement
push)
•
MI-MP Interface :
(additional report publication)
21
Outstanding Issues
● Number of (P,Q) points in reconstructed curves/implementation of this
● Performance impact on existing environments – hardware refresh has
been recommended
● Further consideration required for Settlements, particularly in the
determination of constraints and the implementation of the
reconstruction of PQ Pairs
22
Impact Assessments
● Option Group 1
Operational Impacts
23
SEMO Operational Impacts
Below is a high-level impact assessment of the impact of Option
Group 1 on SEMO Operations: Pricing and Scheduling/Settlement
●
Additional Resources and changes in shift pattern
●
New business processes and work procedures for additional runs
●
Accommodation requirements may need to be considered
●
Staff Training
●
Market Participant training



●
Multiple bid submission
Interpretation of new reports
Querying of data
Increased workload to process and check the EA and WD inputs to settlement and resolve
queries from additional runs
●
User Acceptance Testing (in addition to normal testing)
●
Parallel running of old and new systems for over 14 months (Repricing / Re-settlement)
●
Project readiness impacts
●
The cancellation of SRAs will need to be automated
●
Credit Cover review
24
SEMO Operational Impacts
Below is a high-level impact assessment of the impact of Option
Group 1 on SEMO IT:
● Resources – previous projects of this scale had consultant resources
● Finite capacity of vendor to deliver both scheduled releases and IntraDay Trading
● Hardware refresh has been recommended
● Operational / Market IT Support to be extended to cover a longer
operational window for Market Operations
25
Impact Assessments
● Option Group 2
Central Market System Impacts
26
As for Option Group 1, Option Group 2
will affect the following areas of the CMS
Interface
Affects
MP-SMO Interface
(Submissions)
SEMO, MPs
MI Applications
SEMO
MI Database
SEMO
TSO-SMO interface
TSOs, IA & SEMO
IA-SMO interface
IA, SEMO
MA DSI - MI Interface
SEMO
MA DSP - MI Interface
SEMO
MI_MOI interface
SEMO
MI-Settlement interface
SEMO
MI-MP Interface (Report
publication)
MPs
SMO-TSO Interface
TSOs, SEMO
SMO-IA Interface
IA, SEMO
27
Option Group 2 Additional Issues
● The vendor has concerns regarding scalability vis-a-vis (P,Q)
points
● The maximum number of PQ pairs currently allowed in MA is 10
 With the COD reconstruction logic, the number of PQ pairs can
be as many as n * 10, where n is the number of runs
 For Option Group 2, this becomes 70 (P,Q) pairs
28
Impact Assessments
● Option Group 2
Operational Impacts
29
SEMO Operational Impacts
Below is a high-level impact assessment of the impact of Option
Group 2 on SEMO Operations:
●
Significant additional resources and 24 hour operations 365 days a year
●
Accommodation requirements may need to be considered
●
Complete redesign of business processes and work procedures for additional runs
●
Dual Processing of Pricing runs ( Ex-Post and EA1 will be parallel)
●
Staff Training
●
Market Participant training
●
 Multiple bid submission
 Interpretation of new reports
 Querying of data
Increased workload to process and check outputs and outputs in Pricing and settlement and
resolve queries from additional runs
●
User Acceptance Testing (in addition to normal testing)
●
Parallel running of old and New systems for over 14 months
●
Project readiness impacts
●
The cancellation of SRAs will need to be automated
●
Credit Cover review
●
Significant changes to the TSC which will need to incorporated into the Operational processes
30
Other Operational Impacts for both Options
● Credit cover requirements will need to be revisited
● The impact on the choice of MSP solver (MIP & LR)
● Edge effects - in particular for Option Group 2 (6 WD gates)
● Additional criteria – solution time and gates - in particular for Option
Group 2 (6 WD gates)
Summary – Option Group 1
● Option 1 (both Variants)
 Is compliant with CMG
 Less change than Option Group 2 (both CMS and operational)
therefore less expensive
 Less change than Option Group 2 for Market Participants
 Offers less risk
 Lower Impact on the SEM
 Can be delivered in a shorter time frame
 European markets in a state of flux – least expensive option that
delivers compliance with minimal change to the SEM would be
preferable pending outcomes of European Regional Developments
Summary – Option Group 2
● Option 2 (both Variants)
 Is compliant with CMG
 More change than Option Group 1 (both CMS and operational)
therefore more expensive
 More change than Option Group 1 for Market Participants
 Incurs more risk
 Significant Impact on the SEM (24*7, Operational considerations)
 Will take longer to deliver
 More complex
 Outstanding scalability concerns from vendors
 European markets in a state of flux – implementing a more
expensive option with significant change to the SEM may not be
prudent at this point pending outcomes of European Regional
Developments
Proposed Next Steps
● To ensure compliant Intra-Day Trading is delivered, the following
are required:
 Imminent industry agreement and decision on the Option to implement
 Timely Regulatory Approval
 Early agreement on Central Market System development as Intra-Day
Trading is developed and implemented (future release planning)
•
SEMO to proceed to full impact assessment of preferred option
and initiate design with vendors
•
Early communication of final design with Industry to progress MP
impact assessments