Rules and Procedures during Disrupted Market Activities - TenneT
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DEPARTMENT SON CLASSIFICATION C1: Public Information
DATE 2 January 2020
VERSION v1
VERSION DATE 2 January 202
PAGE 1 of 17
Rules and Procedures during Disrupted Market
Activities
Framework DocumentTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 2 van 17
Disclaimer
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TenneT Liability and Copyright
This document is presented by TenneT TSO B.V. (‘TenneT’). Its content (all texts and images) is protected
by copyright. No part of the content of this document may be copied, unless explicitly permitted by TenneT,
and neither may the content be altered in any way. TenneT is committed to provide correct and up-to-date
information, but does not guarantee the correctness, accuracy and completeness of the content of this
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document. The possibility exists that there is a delay in updating the procedures referenced in this document.
For the most recent versions of the procedures referenced in this document, we refer you to the source of
the relevant procedure.
TenneT accepts no liability for (alleged) damage arising from this document, nor for the consequences of
activities undertaken on the basis of the data and information contained in this document. CONCEPT
No rights can be derived from this document.
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Versions
Version Date
V1.0 01-03-2020 CONCEPT
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CONCEPTTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 3 van 17
Introduction
This document provides details for Article 9.29, third paragraph of the Netcode Elektriciteit [Electricity Grid
1
Code] . It provides further clarification of the market’s role in a deviating system condition, the fallback
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procedures that apply in the event of an impairment of one or more IT and/or other systems, and what
2 3 4
happens if a NEMO or foreign TSO suspends a market activity .
5
The NC ER on the basis of Article 35, offers TSOs the possibility of suspending market activities. These are
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market activities carried out by a TSO to facilitate the market. Article 36 of the NC ER requires that the TSO
details the rules it intends to use concerning the suspension and restoration of market activities and to have
these approved by the regulatory authority, in this case the national regulatory authority. The rules stipulated
in Article 36 of the NC ER have been added to Article 9.29 of the Netcode Elektriciteit [Electricity Grid Code]
CONCEPT
in the chapter concerning ‘conditions relating to an emergency and restoration situation’. This section as
much as possible refers to already existing procedures that are included elsewhere in the regulations.
It was decided not to include detailed alternative market rules in the Netcode Elektriciteit [Electricity Grid
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Code], because detailed alternative rules could provoke arbitration. This, for example, is because situations
concerning the occurrence and restoration of problems with market activities not only can differ in type and
duration, but can also occur in numerous combinations of simultaneity and time sequence. In this respect
detailed rules suggest a certain degree of completeness, while there is a chance that in actual practice a
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situation can occur that is not foreseen in the detailed rules.
It is important that market parties can continue their market activities in order to be able to return to a normal
6
market situation after the restoration of an emergency situation . It can happen that market players are
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unable to participate in the market, or that they are unable to do so in the normal fashion. In these situations,
the fallback procedures for the relevant market process apply. A deviating system condition does not
immediately cause the fallback procedures to be invoked. On the other hand an emergency situation can
impact the operation of systems. Only in those instances where an emergency situation affects the ability to
adhere to the regular processes are the market parties required to make use of fallback procedures.
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1
From the Netcode Elektriciteit [Electricity Grid Code] Article 9.2, paragraph four: (Translated)“The fallback
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procedures specified in the first and second paragraph, as well as the interaction of the market processes
with the real-time restoration process shall be explained in further detail on the website of the grid operator of
the national high voltage grid.”
2
Nominated Electricity Market Operator
3
4
Transmission Service Operator
These are market activities carried out by the TSO or NEMO to facilitate the market
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5
Emergency and Restoration Network Code
6
The restoration of an emergency situation consists of the restoration of the ‘emergency’ & ‘blackout’ system
conditions.TenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 4 van 17
Document structure
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Part 1 describes the various system conditions of the transmission system, explains how the restoration of
the transmission system is effected during defence and restoration, and describes the interaction between
TenneT and the market while the defence & restorion Plan is executed. Part 2 provides insight into the
various existing fallback procedures that apply when an IT and/or other system is impaired. Part 3 describes
the settlement processes that apply to a disruption of the transmission system.
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CONCEPTTenneT TSO B.V.
DATUM 2 januari 2020
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Table of Contents
Disclaimer 2
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Versions 2
Introduction 3
Document structure
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1. Part 1: The market’s role during disruptions 6
2. Part 2 Fallback procedures & similar rules CONCEPT
10
3. Part 3: Settlement Processes 16
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CONCEPTTenneT TSO B.V.
DATUM 2 januari 2020
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1. Part 1: The market’s role during disruptions
1.1 System conditions & the defence and restoration process
CONCEPT 7
It is the market’s role to synchronise the supply and demand for electricity for each ISP . However, TenneT
and other TSOs are jointly responsible for providing a 50 Hz frequency in the European Continental
Synchronous Area. To implement this role, each TSO is responsible for monitoring, maintaining and
restoring the balance between supply and take-off of electrical power in its LFC zone. This is known as
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‘maintaining balance’. TenneT is responsible for monitoring the power balance in the Netherlands and
discharges its task by facilitating the market with balancing products.
Power imbalance is the temporary unintended power exchange between the TSO’s grid and the
8 CONCEPT
synchronous linked high voltage grid. The system state is affected if the deviation in the 50 Hz frequency or
the power imbalance is significant.Furthermore, all elements within the transmission system must be used
within operational safety limits. Deviations in these operational safety limits also affect the system’s
condition. The safety limits and the system conditions with the associated frequency deviations are
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contained in the SOGL .
9
When the system status of the high voltage grid or sub-grid is deviates from ‘Normal’, then TenneT has
additional authorities to bring the system back to 'Normal.. These additional authorities differ by system
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status and are increased as the severity of the situation increases . When the system status is ‘Alert’,
TenneT is authorizedto adjust production or load upwards or downwards. When the system status is
‘Emergency’, TenneT is also authorizedto disconnect a load. This means that a situation can arise in which a
market party is tasked by TenneT to adjust production upwards or downwards, or to disconnect or connect a
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load. In addition, situations in which there is a power outage of the grid or sub-grid are also possible. In the
most extreme situation, more than 50% of the grid experiences a power outage, which results in the
‘Blackout’ system status. If a system is in ‘Blackout’ status, TenneT assumes control in order to bring the
system back to a normal operating condition as quickly as possible. Restoring the system to the ‘Normal’
system status occurs during the ‘Restoration’ system status using the ‘load sequencing process’ whereby
CONCEPT 11
TenneT controls the designated dispatches . The ‘Normal’ system status is achieved when the grid has
12
been fully restructured and there is a sufficient disruption reserve . Figure 1 illustrates the system conditions
and the restoration to a normal system condition. The defence and restoration plan describes the defence
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7
Imbalance Settlement Period (ISP)
8
The system condition is the operational status of the transmission system in relation to the operational
safety limits. The statuses are: ‘Normal’, ‘Alert’, ‘Emergency’, ‘Blackout’, and ‘Restoration’.
9
10
System Operation Guideline. The SOGL is available at www.entsoe.eu. CONCEPT
Article 9.2, paragraph 11, Netcode Elektriciteit [Electricity Grid Code], available at www.wetten.overheid.nl.
11
Designated dispatch means that during periods in which the system status is ‘Restoration’, the
synchronisation of production and consumption is controlled by TenneT. The reason for this is to keep ?????
12
SOGL Article 18. Available at https://eur-lex.europa.eu/TenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 7 van 17
and restoration process in detail. This plan is shared with the relevant connected parties.
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Figure 1: System conditions and defence and restoration procedure
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1.2 The market’s role during abnormal system conditions
Article 35, first paragraph of the NC ER offers TSOs the option of suspending market activities under certain
conditions. This pertains to conditions in which:
(a) the transmission system of the TSO is in blackout state; or
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(b) the TSO has exhausted all options provided by the market and the continuation of market activities under the
emergency state would deteriorate one or more of the conditions referred to in Article 18(3) of Regulation (EU)
2017/1485; or
(c) the continuation of market activities would decrease significantly the effectiveness of the restoration process to the
normal or alert state; or CONCEPT
(d)tools and communication means necessary for the TSOs to facilitate market activities are not available
13
The market activities referred to are the processes carried out by the TSO and other parties in support of
the market. While part a) and d) refer to situations that unavoidably disrupt market activities, part b) and c)
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offer TSOs the option of actively stopping market activities that are still operating in order to limit anticipated
damage. In accordance with Article 36, paragraph one of the NC ER, national rules must exist for all of these
situations in which market activities are suspended and for restoring these activities.
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In accordance with the Netcode Elektriciteit [Electricity Grid Code], TenneT adheres to the basic principle
that it is important for the market as a whole that the system status ‘Normal’ is restored as soon as possible.
Where technically feasible, TenneT maintains market activities under all system conditions; on the one hand
to disrupt the market as little as possible and on the other hand because market processes make a
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13
There are processes that are performed by other parties in support of the market, or in support of
collective TSOs. For example the activities carried out by NEMOs. The TSOs participate in these processes.TenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 8 van 17
contribution to restoring or maintaining the ‘Normal’ system status. This is why no alternative rules apply to
market activities under different system conditions. 1.3.1 provides further information about the importance of
a continuous market. Under deviating system conditions, the market parties are expected to adhere to the
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normal processes.
However, the situation may be such that market players are unable to participate in the market, or that they
are unable to do so in the normal fashion. This can be caused by the following two situations, or a
combination thereof:
-
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An impairment of one or more IT systems.
- A NEMO or a foreign TSO suspends a market activity.
A deviating system situation does not immediately cause a market disruption. However, the consequences of
an emergency situation can affect the different systems in use, as a result of which participation in market
activities can be done through a fallback procedure. Fallback procedures only apply at the time of a CONCEPT
disruption in the relevant market activity, unless otherwise specified in a fallback procedure.
When market activities are disrupted, the fallback procedures relating to the relevant market activity apply.
For this purpose it is necessary for the market parties to inform themselves of the market rules that count in
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a deviating system status
14
, and that they, technically as well as organisationally, set up the fallback
procedures that apply in the event of an impairment of an IT and/or other system.
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14
Netcode Elektriciteit [Electricity Grid Code] Article 9.29, is available at www.wetten.overheid.nlTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 9 van 17
1.3 The interaction between market activities and the defence and restoration
process
1.3.1 The importance of a continuous market.
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In situations in which there is a disruption of the power supply system, it is important for the market to
actively cooperate in bringing the system back to the ‘Normal’ system status. Since market parties retain the
same rights and obligations concerning market activities, regardless of the system status, market data is
continues available. This way all normal processes can be restored as quickly as possible. The submission
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of E-programmes, T prognoses and measurement data, for example, is important so that TenneT continues
to be informed of the market’s plans. In addition, this data is required for the correct financial settlement of
the situation, for example, for the settlement of the designated dispatches in accordance with the defence
and restoration process. The continued submission of bids for balancing services is important so that a bid
can immediately be activated when necessary. CONCEPT
1.3.2 The defence and restoration Plan’s impact on the market
In deviating system situations, TenneT is given additional powers for restoring the system to the ‘Normal’
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system status (also see Section 1.1). As set out in the Netcode Elektriciteit [Electricity Grid Code]
15
, in the
16
event of threatening major disruptions , TenneT is authorized to disconnect loads, order connected parties
to produce more or less electricity and oblige connected regional grid operators to reduce transport demand.
TenneT is solely authorized to use this power to protect or to restore the system.
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Market activities never stop and market participants are expected to continue to participate. In a situation in
which the system status is ‘Restoration’, TenneT at all times has the option of assigning specific orders
relating to the dispatch of market parties. These parties are then obliged to respond to this and to act
accordingly. The request to adjust the power supply upwards or downwards is considered a redispatch
action that will be reimbursed. This is an example of why the continued submission of programmes by CONCEPT
market parties is important. In addition it is of importance that market parties keep sending in and updating
their T-prognoses so that TenneT stays up do date with the plans of the market parties in favour of the
success of defence and restoration. Specifically in the situation where TenneT proceeds from central
dispatch to the prognoses of market parties. As set out in 1.3.1 the market continues to operate in parallel
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during the defence and restoration process, as a result of which there is no switchover moment between
17
different market rules after the defence and restoration process is complete.
More information about the settlement of the imbalance and any costs incurred by market parties is available
in Chapter 3.
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15
16
‘Restoration’ system status
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Article 9.2, paragraph 11, Netcode Elektriciteit [Electricity Grid Code], available at www.wetten.overheid.nl.
17
For selected connections, market parties hereby could get instructions for their dispatch from TenneT up
until the system status ‘Normal’ has been achieved. The basic principle remains, provided that TenneT gives
central dispatch orders, that the market parties as much as possible continue their own dispatches.TenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 10 van 17
2. Part 2 Fallback procedures & similar rules
This chapter answers for each market process situations that may arise at the time of an IT and/or other
18
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systems disruption, or when a market activity in another country is suspended. This chapter also refers to
the fallback procedures or rules that apply when there is a fault in the relevant processes for participation in
the market, or when a process cannot be carried out for other reasons. Unless stated otherwise, fallback
procedures therefore do not automatically apply in an abnormal system situation.
2.1 Trade with foreign countries
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Situation Fallback procedure/action More information is
available at:
19
1 Auctions for long term The auction platform contacts and informs the Chapter 9 of the HAR .
transmission rights market party about the situation and the to be .www.jao.eu
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cannot take place followed fallback procedure.
20
2 There is a problem with JAO and the NEMO's shall inform the market "Shadow Auction Rules"
CONCEPTthe day-ahead market parties that there is a chance that the fallback www.jao.eu
coupling. procedure will be activated. In case the problem
results in a decoupling, the fallback procedure
will be activated.
3 One or more bidding This will result into a decoupling "Shadow Auction Rules"
zones suspends day-
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ahead market activities
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18
These are market activities carried out by the TSO or NEMO to facilitate the market
19
Harmonised allocation rules for long-term transmission rights
20
Joint Allocation OfficeTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 11 van 17
2.2 Generation & Load Scheduling (T-prognosis)
Situation Fallback procedure/action More information is
available at:
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4 Sending in the T- The connected party, respectively its BRP, has Emergency procedure
prognosis does not work to use the emergency procedure 'Offering 'Offering EDINE
due to a problem with EDINE messages'. messages'
the CPS connection. www.tennet.eu
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2.3 Energy Programme (E-programme)
Situation Fallback procedure/action More information is
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available at:
5 Sending in the E- The BRP has to use the emergency procedure Emergency procedure
program does not work 'Offering EDINE messages'. This fallback 'Offering EDINE
due to a problem with procedure is also valid when the E-programme messages'
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the CPS connection is send in via XML. www.tennet.eu
6 TenneT does not TenneT will use in his systems for the Article 10.14, fifth
receive the E-program in concerned BRP 0MWh values for every paragraph, Netcode
time. imbalance settlement period of the coming day Elektriciteit.
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in the internal commercial trade program. If the www.wetten.overheid.nl
E-program of the BRP contains an energy
transaction which does not match the same
transaction in the internal commercial trade
program of the other BRP, then TenneT uses CONCEPT
0MWh values for both BRPs for the concerned
21
imbalance settlement period.
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21 CONCEPT
This process will go into effect on a still to be determined date, when Article 10.14, paragraph five, has
been integrated into TenneT’s systems. Up until this time TenneT’s work planning department contacts the
Balance Responsible Party (BRP) if the BRP did not submit its E-programme prior to the gate closure time
(D-1, 14:00).TenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 12 van 17
2.4 Frequency Containment Reserve (FCR)
Situation Fallback procedure/action More information is
available at:
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7 There is a malfunction TenneT will notify the BSP about the malfunction "FCR Manual for BSPs"
in the data connection and if applicable, the fallback procedure, before www.tennet.eu
and/or the bidding the end of the award period.
platform
8 The notification of then an email will be sent to the contact on the "FCR Manual for BSPs"
award is not possible
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contact list in the framework agreement. www.tennet.eu
via the internet
platform due to
technical reasons.
9 There are no correct if due to a technical issue no FCR bids can be
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"FCR Manual for BSPs"
FCR auction results or awarded via the internet-platform the fallback www.tennet.eu
there no FCR bids can procedures of the biddingplatform. The BSP will
be awarded. be informed if the fallback procedures effect the
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10 The frequency than the installation must be able to continuously "FCR Manual for BSPs"
measured by the BSP supply the full quantity of FCR www.tennet.eu
falls outside the awarded/contracted for a period of not less than
bandwidth of the FCR CONCEPT
15 minutes.
product or the system
in in "alert" state
11 The BSP is not able to the BSP shall contact TenneT. "FCR Manual for BSPs"
send in measurement CONCEPT
www.tennet.eu
data via the
webservice and the ex-
post deadline cannot
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be met.
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CONCEPTTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 13 van 17
2.5 Automatic Frequency Restoration Reserve (aFRR)
Situation Fallback procedure/action More information is
available at:
CONCEPT
12 The BSP is not able to The BSP has to use the emergency procedure Emergency procedure
send in aFRR bids due 'Offering EDINE messages'. 'Offering EDINE
to a problem with the messages'
CPS connection. www.tennet.eu
13 The BSP cannot TenneT regards nominated bids as activated "Productinformation
receive the aFRR
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and the amount of activated energy will be aFRR" www.tennet.eu
activation signal or settled on the imbalance of the BRP.
TenneT is not able to If TenneT is not able to send the aFRR
send the aFRR activation signal, no aFRR will be activated
activation signal.
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14 The BSP cannot TenneT regards nominated bids as activated "Productinformation
activate aFRR. and the amount of activated energy will be aFRR" www.tennet.eu
settled on the imbalance of the BRP.
CONCEPT In case a BSP has structural problems, the BSP
has to call TenneT.
15 The load frequency TenneT will give the BSP instructions to "Productinformation
control (LFC) is deactivate activated aFRR via telephone. aFRR" www.tennet.eu
inactive.
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2.6 Manual Frequency Restoration Reserve scheduled activated (mFRRsa)
Situation Fallback procedure/action CONCEPT
More information is
available at:
16 The BSP cannot send The BSP has to use the emergency procedure Emergency procedure
in mFRRsa bids due to 'Offering EDINE messages'. 'Offering EDINE
CONCEPT
a problem with the messages'
CPS connection. www.tennet.eu
17 TenneT cannot send TenneT will call the supplier by telephone. "product specification
an activation mail or mFRRsa"
cannot receive an CONCEPT www.tennet.eu
mFRRsa
conformation.
18 De BSP levert geen TenneT regards nominated bids as activated "product specification
mFRRsa na activatie. and the amount of activated energy will be mFRRsa" CONCEPT
The BSP does not settled on the imbalance of the BRP. www.tennet.eu
deliver mFRRsa after In case a BSP has structural problems, the BSP
activation has to call TenneT.TenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 14 van 17
2.7 Manual Frequency Restoration Reserve directly activated (mFRRda)
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Situation Fallback procedure/action More information is
available at:
19 The mFRRda tender TenneT will shift the tender to a later moment in "FRR Tender rules"
cannot take place and time. www.tennet.eu
after the issue is CONCEPT
solved there is
sufficient time before
the contract period to
organize a new tender. CONCEPT
20 The tender cannot take If the webportal for sending in mFRRda bids is "FRR Tender rules"
place and after the not available, market parties will be asked tos www.tennet.eu
issue is solved there is end in bids via email.
CONCEPT
no sufficient time In case the issue persists for a long time period,
before the contract TenneT will contact market parties to make
period to organize a bilateral agreements.
new tender
21 The BSP is not able to
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mFRRda is activated by telephone. If the BSP is "Product information
receive the activation not able to respond to the call of TenneT than no mFRRda"
signal for mFRRda. activation of mFRRda can take place. www.tennet.eu
In case a BSP has structural problems, the BSP
has to call TenneT.
If mFRRda is activated via an automatic
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activation procedure, than the connection is
monitored by a heartbeat signal. If the signal is
disrupted, then TenneT will contact the BSP.
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22 The BSP is not able to If the BSP does not respond with the full power "Product information
deliver mFRRda called for, or does nor respond within the agreed mFRRda"
full activation time to a call or does not supply or www.tennet.eu
withdraw mFRRda for the time desired by
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TenneT, will be considered to be a case of poor
response.
CONCEPTTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 15 van 17
2.8 Reserve Power Other Purposes (ROD)
Situation Fallback procedure/action More information is
available at:
CONCEPT
23 The provider ROD The provider ROD has to use the emergency Emergency procedure
is not able to send procedure 'Offering EDINE messages'. 'Offering EDINE
in bids duet o a messages'
problem with the www.tennet.eu
CPS connection
24 The provider ROD
CONCEPT
TenneT regards nominated bids as activated and "Product specifications
is not able to the amount of activated energy will be settled on Reserve Power Other
activate bids. the imbalance of the BRP. purposes" www.tennet.eu
In case a BSP has structural problems, the BSP
has to call TenneT.
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2.9 V-programmes
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Situation Fallback procedure/action More information is
available at:
25 Market parties are If a market party did not recieve a V-program after the expected period than
not able to receive they can call TenneT. If TenneT is experiencing issues with IT-systems than
a V-program or CONCEPT
they will contact the market parties via e-mail. This email will inform the BRP
TenneT is not able about the situation and if needed, the fallback procedure.
to send out V-
programmes
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CONCEPTTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 16 van 17
3. Part 3: Settlement Processes
The basic principle that applies is that the normal system market rules will continue to apply during a
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disruption. This means that the same rules will also continue to apply to the settlement process.
3.1 Imbalance (Pricing) Provision
The imbalance provision will always continue to apply regardless of the system status. A BRP at all times
remains responsible for the imbalance it caused. It is therefore the BRP’s responsibility to minimise its
CONCEPT
imbalance (in the undesirable direction). A BRP has the option of adjusting its E-programme for foreign trade
till4 ISPs prior to the moment of execution, while domestic trade can be adjusted up to the ex-post gate
closing time.
Situation answer More information is
available at:
CONCEPT
26 On the day to which the E- The ex-post gate-closure-time will Article 9.29, paragraph 2,
program relates there was an be adjusted to a later time to give Netcode Elektriciteit
error in one of the systems of BRPs room to send in their adjusted [Electricity Grid Code]
CONCEPT
TenneT or the transmission e-programmes. (ex-post gate- www.wetten.overheid.nl
system was in an emergency closure-time plus x hours)
state or blackout state. As a
result, market parties need
extra time to send in E- CONCEPT
programmes.
27 TenneT is not able to send The imbalance settlement will be send on a later moment. In case
out the imbalance settlement. of a long term disturbance, alternative options for sending the
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imbalance settlement will be explored to assure that the imbalance
settlement will be delivered to the BRP before the deadline
28 A BRP did everything in his If the imbalances is caused due to a culpable act of TenneT , than
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means to reduce its the BRP can submit a claim to TenneT. All claims will be handled
imbalance position and still and reviewed individually to judge its (un)lawfulness.
has an imbalanced position
over his overall portfolio
29 A market party got a dispatch The dispatch order will be reimbursed/settled in the same way as a
order from TenneT
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redispatch order
30 TenneT is not able to The imbalance price can always be Article 10.1, paragraph 3,
determine an imbalance price. determined. This price is always Netcode Elektriciteit
determined in the same way, [Electricity Grid Code]
regardless of the system state
CONCEPT
www.wetten.overheid.nl
&
Imbalance Pricing System
www.tennet.euTenneT TSO B.V.
DATUM 2 januari 2020
PAGINA 17 van 17
3.2 Damage Claims
It is important that market parties provide active support in the protection of and restoration to the a normal
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operating condition. During defence and restoration, central dispatch actions of TenneT will be
reimbursed/settled.
If costs arises from a market party’s active participation in TenneT’s protect & restore assignments, and it is
suspected that the costs arose due to imputable acts on the part of TenneT, then the affected parties can
submit a claim for the incurred costs to TenneT. Every claim will be processed and evaluated separately in
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order to be able to establish the justified/unjustified character of the claim. If TenneT determines that the
claim is justified, the claim will be awarded.
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