Interruptibility Service – Bidding instructions & Award Criteria 2017
Call for tender - Interruptibility Service
Delivery Period 2017
Bidding rules and obligations
Contents
1 Introduction ................................................................................ 2
1.1
1.2
1.3
1.4
How to submit offer ..........................................................................
Volumes ..........................................................................................
Bidding sheet assistance....................................................................
1.3.1 Part 1: Name Suppler & List of Access point(s) ..........................
1.3.2 Part 2: The offer: product, volume and price .............................
1.3.3 Part 3: Exclusivity of offers .....................................................
1.3.4 Part 4: Contractual data .........................................................
Auction rules and bidding obligations ..................................................
1.4.1 Combinability of Offers ...........................................................
1.4.2 Obligations regarding the volumes to be offered (obligation 1, 2
and 3) 6
1.4.3 Divisibility of offers ................................................................
1.4.4 Obligations regarding the Total Cost of offers ............................
2
3
3
3
3
5
5
5
5
6
6
2 Award Criteria ............................................................................. 8
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Interruptibility Service – Bidding instructions & Award Criteria 2017
1
Introduction
In attachment to the mail sent with the call for tender, you will find the
new Interruptibility - bidding sheet template for 2017, in which we kindly
ask you to make your different offers.
In order to be able to find a valid combination of offers, complying with
the volume Elia procures and in order to guarantee an optimal solution
which minimizes overall reservation procurement costs, Elia should
dispose of as many Capacity Bids as likely possible. Not only will this
improve Elia’s chances to find an optimal solution and possibly avoid
iteration & renegotiation, it will also improve the reserve provider’s
chances of being selected for a certain Capacity Bid.
Besides the guarantee for Elia to be able to find the optimal solution, it’s
important to assure a level playing field for all Suppliers.
To allow Elia to achieve the latter Elia introduced a new bidding sheet and
a set of bidding obligations to be respected and auction rules which are
further explained in this document.
Bidding obligations:
-
The smallest offered volume should not exceed 50MW
-
When increasing the offered volume, the maximum
increments should be 50MW.
-
The totals cost for a smaller volume should not exceed
the total cost for a larger volume1
Auction rules:
-
An offer is considered divisible between the offered
volume and an offer for a smaller volume.
You should submit 1 bidsheet per contract that you would like to conclude
with Elia.
In this document we provide you with all necessary information on how
exactly to fill in this bid sheet and how Elia proceeds to select the optimal
combination of offers.
Important: All offers made must remain valid & firm until 31 December
2016.
1.1
How to submit offer
The candidate supplier must provide the following documents to Elia:
-
-
1
a Signed Cover letter containing
o
The supplier agrees with the terms and conditions set
forth by Elia in the call for tender.
o
The offers are a firm commitment
contracted in case retained by Elia.
o
The mention that all offers are valid until 31/12/2016
and
will
be
a completed bidsheet, in respect with the conditions set forth in this
document.
Subject to divisibility, see further
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Interruptibility Service – Bidding instructions & Award Criteria 2017
A scanned copy of the cover letter and an .xls (or any other format that can
be opened in excel) should be sent to [email protected] and
[email protected].
A paper copy should be sent via registered post to:
Elia System Operator
Aimilios Orfanos
Boulevard de l'Empereur 20
B - 1000 Bruxelles
BELGIUM
1.2
Volumes
The volume to be procured is determined and fixed in the Dossier Volumes
approved by the CREG on the 19th of July 2016 in its decision (B)160719CDC-1526.
The total volume of ICH to be contracted on a yearly basis is maximum
200MW.
1.3
Bidding sheet assistance
1.3.1
Part 1: Name Suppler & List of Access point(s)
In this part of the bidding sheet, you should fill the name of the company
that submits the offers and that will conclude the contract with Elia and a
list of access point(s) on which the service will be delivered.
Depending on the results of the tender, if for example the maximum
offered volume is not retained, access points can be removed from the list.
When a bid is retained and the offering party is not the Grid User of the
access points concerned, the grid user declaration as defined in the annex
of the contract must be signed by both parties, before the signature of the
actual contract.
1.3.2
Part 2: The offer: product, volume and price
All information, the offered volume, price and product, in this part of the bidding
sheet is binding.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
Column 1: Offer number
Number of the offer, serving as a reference for the details inserted for
each horizontal line. Each of such horizontal lines will be treated as one
offer containing the reserve volumes in [MW] and price in [€/MW/year] for
the Interruptible Service.
The excel file is prepared for 50 offers, however there is no limit in the
number of offers. More lines can be created and the numbering continued.
Attention: all the offers are non-combinable. If you have 9MW of flexibility
that you would like to offer to Elia in blocks of 3MW, you should make 3
offers:
-
An offer for 3MW
-
An offer 6MW
-
An offer 9MW.
When one of the offers is retained, Elia cannot retain another offer from
the supplier.
Column 2: SLA
The type of the offered
Interruptibility contract.
interruptible
service
as
defined
in
the
Which type is offered makes no difference for Elia and will not be taken
into account when awarding volumes.
Columns 3, 4 and 5: Offered Volume
The volume a Supplier offers to Elia.
As Elia is looking to contract a volume for BASE (both Peak and long offpeak) hours, the supplier should make offers for BASE and indicate the
extra volume available during Peak or Long Off-peak hours.
Attention:

the offered volume in BASE is divisible until the next
offer with a smaller volume (see chapter 1.3.3 of this
document)
The minimum size of Rref is 1MW.
The granularity of Rref is 1MW. (No decimals)
Column 6 : RemSI [€/MW/year]
The corresponding unit price in [€/MW/year] for 1 MW per year should be
filled in here. In case the bid is awarded, this value will be completed in
Art.9.1.2 of the contract.
The offered price must be entered with maximum 2 decimals places.
In case one or more decimals are missing, these decimals will be set to 0.
In case of a third decimal which is smaller than 5, the price will be
rounded down. When the 3th decimal after the comma is equal to or
greater than 5, the number will be rounded up.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
1.3.3
Part 3: Exclusivity of offers
One access point or a pool of access points cannot provide all services
simultaneously to Elia. In particular, an access point offering ICH can only
provide at the same time the SDR DROP-TO and R1 services.
1.3.4
Part 4: Contractual data
All information in this part of the bidding sheet is obligatory, but indicative. The
data (Pref and SL) can still be modified upon signature of the contract on the
condition that the Pref and SL values correspond to the Rref volume retained in the
tender.
In this part of the bidding sheet, a supplier must complete for each month
of the year and for each tariff period (as defined in the contract proposal):
-
The Pref or the reference power: the estimated total offtake of the
access point(s) connected to the Elia grid, as defined in the contract
proposal.
-
The SL or shedding limit: the power level under which the total offtake
must drop in case of activation, as defined in the contract proposal.
The difference between the Pref and SL (hereinafter referred to as Rref)
should result in the offered volume in columns 4, 5, 6.
The Pref and SL can vary per month, but the offered control power (Rref=
Pref-SL) should be constant
1.4
o
Rref peak jan = Rref peak feb = Rref peak mar...
o
Rref Long off-peak jan = Rref Long off-peak feb = Rref Long
off-peak mar
Auction rules and bidding obligations
As the consequences of non-respect of the bidding obligations are quite
severe (exclusion), Elia invites every supplier to submit his capacity bids
for indicative purposes to Elia prior to the deadline to submit offer, so Elia
can check whether the capacity bids are in line with the auction rules and
bidding obligations.
1.4.1
Combinability of Offers
All Offers are considered as not combinable with other offer, meaning that
Elia can only retain one offer from a bidding sheet.
Example: A Supplier wishes to offer 2 blocks of 5MW to ELIA.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
ELIA expects an offer for 5MW and an offer for 10MW. (2 combinable
Capacity Bids for 5MW is not allowed)
1.4.2
Obligations regarding the volumes to be offered (obligation 1,
2 and 3)
The following obligations are the minimum obligations to be respected for
each product type. ELIA invites every Supplier to submit more offers in
order to increase the possibility to be retained in the optimal selection.
Obligation 1 – Smallest offered volume of 50MW: The smallest
offered volume BASE should not exceed a volume of 50MW.
Offers for a smaller volume are allowed and encouraged!
Obligation 2 – Maximum increments of 50MW: When sorting the
offers in terms of offered BASE volume, the difference in volume BASE
between 2 consecutive offers can be maximum 50MW.
Obligations 1 and 2 are only applicable on BASE volumes.
Obligation 3 – Base offer available: When offering volumes both in
Peak and Long Off-peak, the Supplier must also submit as a minimum a
BASE offer for a volume equal to the minimum of his Peak and Long Offpeak offers.
Examples can be found in Annex
Consequences of non-respect
In case a Supplier does not respect the obligations, all his Capacity Bids
for this product type will be rejected at gate closure time/deadline to
submit Capacity Bids.
1.4.3
Divisibility of offers
All volumes BASE offered are considered to be divisible between the
offered volume and the Capacity Bid with the next smaller volume at the
same unit price (in €/MW/year).
In case that there is no smaller Capacity Bid, the Capacity Bid is
considered divisible to 1MW.
Examples can be found in Annex.
1.4.4
Obligations regarding the Total Cost of offers
Obligation 4 – Total cost check:
The total cost2 of a volume should never exceed the total cost for a larger
volume.
This check is not performed on all volumes that Elia can retain, but only on
the smallest volume that Elia can retain after divisibility of the offer.
Due to the different values of Peak and Long Off-peak flexibility, it would
not be correct to compare the total costs of Peak with Long Off-peak.
Therefor only the total cost of offers with the same extra volumes offered
in Peak/Long Off-peak will be compared with each other.
2
Total cost= 12* the fixed monthly remuneration as calculated in Art 9.1.2. The considered number of
quarter hours for 2017 are 12.480 qh Peak and 22.560 qh Long Off-peak.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
Examples can be found in Annex.
Consequence of non-respect
In case of non-respect of obligation 4 - a smaller volume more expensive
in total cost only the applicable offer(s) will be rejected.
In case this leads to non-respect of obligations 1 and/or 2 regarding to the
volume as described in this annex, the entire set of offers will be rejected.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
2
Award Criteria
When retaining offers, ELIA will:
-
retain the combination of offers that lead to a minimal total reservation
procurement cost,
while
-
retaining the at least required ICH Volume as specified in the Dossier
Volumes,
-
respecting the auction rules set forth in this document,
-
Only considering non-rejected offers.
In case an alternative optimum exists the following criteria will
successively be applied to determine the solution: 1) maximizing the
retained volume 2) maximizing the number of retained bidders 3)
maximizing the equal distribution of the volume amongst all retained
bidders.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
ANNEX - Examples
Examples obligations 1 and 2 – max of smallest offer &
max increments
Situation 1: Total potential that will be offered is 120MW Peak and
120MW Long Off-peak
Example offers 1
o
Obligation 1: OK
Smallest Offer (50MW) < smallest expected offered
volume (50MW)
o
Obligation 2: OK
Largest difference between 2 Offers = 50MW
Example offers 2
o
Obligation 1: OK
Smallest Offer (25MW) < smallest expected offered
volume (50MW)
o
Obligation 2: OK
Largest difference between 2 Offers = 50MW
Example offers 3
o
Obligation 1: OK
Smallest Offer (25MW) < smallest expected offered
volume (50MW)
o
Obligation 2: NOK
largest difference
(>50MW)
between
2
Offers
=
55MW
 All offers will be rejected
Example offers 4
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Interruptibility Service – Bidding instructions & Award Criteria 2017
o
Obligation 1: OK
Smallest offers (10MW) < smallest expected offered
volume (50MW)
o
Obligation 2: OK
Largest difference
(>50MW)
between
2
offers
=
40MW
Situation 2: Total potential that will be offered is 80MW Peak and 120MW
Long Off-peak
Example offers 1
o
Obligation 1: OK
Smallest offer (50MW) < smallest expected offered
volume (50MW)
o
Obligation 2: OK
Largest difference between 2 offers = 30MW
Example offers 2
o
Obligation 1: OK
Smallest offer (50MW) < smallest expected offered
volume (50MW)
o
Obligation 2: OK
Largest difference between 2 offers = 50MW
> There are no obligations on the extra volumes offered during Peak and
Long off-peak.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
Examples obligation 3 – BASE offer
Situation: A supplier wishes to offer 6MW during Peak hours and 9MW
during Long Off-Peak hours.
This should be offered as 6MW Base and 3MW extra volume during Long
Off-peak hours:
It is not allowed to submit and offer for 6MW peak and 9MW Long Offpeak to avoid the other obligations. The offer will be considered as 6MW
Base + 3MW Long Off-peak.
Examples - Divisibility
An offer is divisible until the next smaller offered volume at the same unit
price.
Situation : Total potential that will be offered is 100MW Peak and 110MW
Long Off-peak
The offers listed above are in respect with the bidding obligations 1, 2 and
3.
As an offer is divisible until the next smaller offer or 1MW, Elia can retain:
-
Between 1 and
6.000€/MW/year
50MW
-
Between 51MW and
5.000€/MW/year
+
60MW
Long
Off-peak
@
100MW + 10MW Long Off-peak @
How to offer in case of fixed costs while still submitting the optimal prices:
In case of fixed costs linked to stopping an industrial process, a supplier
can assure to cover the fixed costs by submitting more offers, that even
after divisibility cover the fixed costs:
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Interruptibility Service – Bidding instructions & Award Criteria 2017
As an offer is divisible until the next smaller offer or 1MW, Elia can retain:
-
Between 1 and 49MW BASE + 60MW Long Off-peak @ 13.000
€/MW/year
-
50MW BASE + 60MW Long Off-peak @ 6.000 €/MW/year
-
Between 51MW and 99MW BASE + 10MW Long Off-peak @
9.260 €/MW/year
-
100MW BASE + 10MW Long Off-peak @ 5.000 €/MW/year
Examples obligation 4 – Total Cost
If we take the same example as above:
Elia can retain:
-
Resulting from offer 1: Between 1MW and 49MW. (+60MW LOP)
Elia will compare the total cost of 1MW (+60MW LOP).
-
Resulting from offer 2: 50MW (+60MW LOP)
Elia will compare the total cost of 50MW (+60MW LOP).
Total cost check Offers with 60MW LOP:
-
Total cost of 1MW (+60MW LOP) @ 13.000 €/MW/year =
515.192€
-
Total cost of 50MW (+60MW LOP) @ 6.000 €/MW/year =
531.780€
 While increasing the volume, the total cost increases as well so
the offers are in respect with bidding obligation 4.
-
Resulting from offer 3: Between 51MW and 99MW (+10MW
LOP)
Elia will compare the total cost of 51MW (+10MW LOP).
-
Resulting from offer 4: 100MW (+10MW LOP)
Elia will compare the total cost of 100MW (+10MW LOP).
Total cost check Offers with 10MW LOP:
-
Total cost of 51MW (+10MW LOP) @ 9.260 €/MW/year =
531.879€
-
Total cost of 100MW (+10MW LOP) @ 5.000 €/MW/year =
532.191€
 While increasing the volume, the totals cost increases as well
so the offers are in respect with bidding obligation 4.
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Interruptibility Service – Bidding instructions & Award Criteria 2017
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