View
219
Download
1
Category
Preview:
Citation preview
National Grid Electricity Transmission Page 1
Electricity Market Reform
Capacity Market Operational Plan
This plan identifies the key milestones and activities required to operate the 2015 Capacity Mechanism
Version 1.0
Published 27th
March 2015
National Grid Electricity Transmission
Contents
Introduction............................................................................................................................. 3
Scope and Status .................................................................................................................. 3
Operational Approach .......................................................................................................... 3
Roles and Responsibilities ................................................................................................. 3
Government........................................................................................................................... 3
National Grid (Delivery Body) ............................................................................................ 4
Electricity Settlement Company (Settlement Body) ........................................................ 4
Elexon (including Capacity Market Settlement Agent) ................................................... 4
Ofgem..................................................................................................................................... 4
Key Activities and Milestones............................................................................................ 5
Capacity Market Operational Plan
National Grid Electricity Transmission Page 3
Introduction In 2013/14 the Government published the Capacity Market Implementation Plan in order to provide potential participants in the Capacity Market with details of the key
Capacity Market implementation activities and milestones from National Grid and other delivery partners. Following the successful implementation of the Capacity
Market in 2014, this “Operational” Plan sets out the activities and milestones required to operate the Capacity Market in 2015.
Scope and Status
The timeline for operation of the 2015 Capacity Market is based on the Capacity Market Regulations and Rules and covers both the T-4 and Demand Side Response (DSR) Transitional Auction (TA). The plan brings together milestones from
Government and each of its delivery partners and is intended to provide a high level overview of the steps involved in the operation of the Capacity Market, such that
industry participants have the clarity they require to plan and manage their own operational activities.
The operational plan is a summary plan and does not replace or replicate the detailed operational plans that Government, delivery partners and individual industry
participants may need to produce to manage their respective activities.
Operational Approach
Pre-qualification for the T-4 Auction and DSR Transitional Auction will run in parallel up to the completion of any pre-qualification appeals. The DSR TA process will then be paused until completion of the T-4 auction process. The T-4 auction will be held in
December 2015 and will award capacity agreements which will come into effect in October 2019. Following publication of the T-4 auction results, the DSR TA process
will re-start, with the auction being held in January 2016, awarding capacity agreements which will come into effect in October 2016.
Roles and Responsibilities
A number of organisations will work together to operate the Capacity Market, this section focuses on the roles of these organisations during the pre-qualification and
auction processes.
Government
Overall responsibility for policy and operation of the Capacity Market
Reporting to Ministers / communication of Ministers’ decisions
Finalising the design of new legislation and its implementation
Producing the EMR Delivery Plan and annual updates to it
Managing any future changes to regulations
Capacity Market Operational Plan
National Grid Electricity Transmission Page 4
National Grid (Delivery Body)
Producing an annual capacity report for Government, which will advise on capacity requirements to meet the published reliability standard
Operating core IT systems to support the running of capacity auctions, the pre-
qualification process and the Capacity Market Register
Operating business processes to support capacity auctions and pre-qualification, and producing supporting documentation/guides including the
auction guidelines
Operating business processes to support the management of each delivery year, e.g. contract management
Appointing the Auction Monitor
Electricity Settlements Company (Settlement Body)
Provide accountability, governance and control of the monies collected and
disbursed under the Capacity Market (Payment) Regulations.
Holding and monitoring credit cover from auction applicants;
Verifying meter arrangements for capacity providers that either have complex sites or are not party to the Balancing and Settlement Code (BSC);
Determining Capacity Market settlement disputes relating to the functions of the Settlement Services Provider; and
Monitoring and reviewing the regulations relating to the settlement functions of
the Capacity Market.
Elexon (including Capacity Market Settlement Services Provider)
Carrying out verification of credit cover on behalf of the Settlement Body
Procuring and managing settlement services and systems on behalf of the
Settlement Body
Managing changes to Balancing and Settlement Code (BSC) systems and
documentation
Ofgem
Monitoring the CM and enforcing the legislation
Overseeing NGET’s delivery of its CM roles
Making capacity market rules, while having regard to its principal objective,
general duties, and the CM objectives
Handling disputes which have been escalated following the Delivery Body
disputes process
National Grid Electricity Transmission
Activities and Milestones
T-4
ref TA
ref Deliverable Scope Date
requirement
from CM
Rules/Regs T-4 Auction
DSR
Transitional
Auction Dependencies Owner
1
Amended Electricity
Capacity Regulations
in force. DECC
publish proposed CM
Rule changes.
Amended CM Regulations
changes (Interconnectors,
metering, settlement) in force.
Near final draft of DECC CM
Rule changes published.
By Friday 27th
March 2015
By Friday
27th March
2015
DECC
2 Ofgem CM Rule
change consultation
opens
Consultation opens April 2015 April 2015 DECC CM
rule changes
in force
Ofgem
3
SoS provides Data
and assumptions to
the Delivery Body
The SoS provides final data
and assumptions to the
Delivery Body to enable
preparation of the Electricity
Capacity Report (ECR)
No later
than the
22nd April
Friday 17th
April 2015 n/a DECC
4 Ofgem CM Rule
change consultation
closes
Consultation closes May 2015 May 2015 DECC CM
rule changes
in force
Ofgem
5 Submit Electricity
Capacity Report to
SoS
Submit report to SoS including
a recommendation on the
target volume to procure.
Before the
1st June Friday 29th
May 2015 n/a Input
assumptions
from DECC.
NG
6 SoS publishes
determination on
auctions being held
The SoS determines whether
a T-4 auction and DSR TA are
to be held.
By the 15th
June Friday 12th
June 2015 Friday 12th
June 2015 Electricity
Capacity
Report
DECC
National Grid Electricity Transmission Page 6
T-4
ref TA
ref Deliverable Scope Date
requirement
from CM
Rules/Regs T-4 Auction
DSR
Transitional
Auction Dependencies Owner
7 Ofgem publish
final revised CM
Rules
Following consultation, Ofgem
publish final updated version of
CM Rules.
June 2015 June 2015 Ofgem
Consultation
process
Ofgem
8
Provide Auction
Parameters to NG Provide updated demand curve &
target volume based on NG ECR.
Also provide Net CONE, Auction
Price Cap, Min/Max capacity to
procure, Price Duration curves &
Price decrement schedule.
As soon as
practical after
15th June
Wednesday
24th June
2015
Wednesday
24th June
2015
Electricity
Capacity
Report
DECC
9 SoS publishes
Auction
Parameters
SoS publishes the final auction
parameters Friday 26th
June 2015 Friday 26th
June 2015 DECC
10 Publish "Formal"
Auction
Guidelines
NG publish final guidelines to
reflect auction parameters in SoS
publication
Prior to the
opening of the
pre-qual
window
Tuesday
30th June
2015
Tuesday
30th June
2015
SoS
Parameters
NG
11
Further
amendments to
Electricity
Capacity Regs
come into force
Provisional date that amendments
to Regulations relating to double
subsidy and period for posting
credit cover should come into
force
Late June
2015 Late June
2015 The date is
subject to the
will of
Parliament,
and securing
approval of
both Houses
DECC
12 Pre-qualification
window opens IT systems "active" and applicants
submit formal registration and
data submission
T – 20 weeks
Monday 20th
July 2015 Monday 20th
July 2015 NG/
Apps
National Grid Electricity Transmission Page 7
T-4
ref TA
ref Deliverable Scope Date
requirement
from CM
Rules/Regs T-4 Auction
DSR
Transitional
Auction Dependencies Owner
13 Pre-qualification
window closes Last date for applications to be submitted T – 16
weeks Friday 14th
August 2015 Friday 14th
August 2015 Window open
for 4 weeks NG/
App
14
Pre-qualification
Results Day Inform applicants of the outcome of
assessment and update the Capacity
Market Register
Provide SoS with aggregate de-rating
capacity for each category of applicant
(except Interconnectors) & any
recommendation for adjusting the
demand curve (from plant opting out &
still operational).
Send copies of completed applicant
metering assessments to ESC.
T – 10
weeks -
PQ
Friday 25th
September
2015
Friday 25th
September
2015
NG
15 Start of NG
Appeal
submission
window
Opening date for applicants to raise an
appeal with National Grid against the
pre-qualification outcome
Friday 25th
September
2015
Friday 25th
September
2015
App
16 NG Appeal
window closed Closing date for applicants to raise an
appeal with National Grid against the
pre-qualification outcome
Friday 2nd
October
2015
Friday 2nd
October
2015
App
17 Provide
updated
Auction
parameters
Provide the Delivery Body with an update
on target volume / demand curve to
reflect plant opting out but remaining
operational.
PQ + 5
working
days
Friday 2nd
October
2015
Friday 2nd
October
2015
NG update to
SoS on pre-
qualification
impacts
DECC
National Grid Electricity Transmission Page 8
T-4
ref TA
ref Deliverable Scope Date
requirement
from CM
Rules/Regs T-4 Auction
DSR
Transitional
Auction Dependencies Owner
18 NG Appeal
assessment
complete &
appellants notified
Applicant notified of appeal
outcome. Capacity register
updated. Notify SoS of appeals
outcome.
Friday 9th
October
2015
Friday 9th
October
2015
Any/All NG
appeals
assessed
NG
19 Start of Tier 2
Appeal submission
window
Opening date for applicants to
raise an appeal with Ofgem
against the pre-qualification
outcome
Friday 9th
October
2015
Friday 9th
October
2015
App
20
Latest possible date
for applicants to
provide Credit
Cover to the ESC
New build participants and DSR
providers must provide Credit
Cover
PQ + 15
working days
(dependent
on
amendment
to regulations
coming into
force)
Friday 16th
October
2015
Friday 16th
October
2015
Pre-
qualification
results day
App
21 Tier 2 Appeal
window closed Closing date for applicants to
raise an appeal with Ofgem
against the pre-qualification
outcome
Friday 16th
October
2015
Friday 16th
October
2015
App
22 Publish Updated
Auction Guidelines Notification of updated Auction
Parameters (as a result of opt
outs) T – 7 weeks
Monday 19th
October
2015
Monday 19th
October
2015
DECC
update to NG
on
parameters
NG
National Grid Electricity Transmission Page 9
T-4
ref TA
ref Deliverable Scope Date
requirement
from CM
Rules/Regs T-4 Auction
DSR
Transitional
Auction Dependencies Owner
23 Final Credit Cover
verification Latest date for ESC to provide a
Credit Cover approval notice if the
applicant used the full 15 days to
provide Credit Cover.
PQ + 30
working days
Friday 6th
November
2015
Friday 6th
November
2015
Credit Cover
provided ESC
24
Latest possible date
for applicants to
provide Credit Cover
approval notice to
the Delivery Body
Latest date for the applicant to
provide the Delivery Body with a
copy of the Credit Cover approval
notice.
PQ + 32
working days
Tuesday 10th
November
2015
Tuesday 10th
November
2015
App
25 B
Provide Final
Auction parameters
to NG
Provide final updates to Auction
Parameters.
Tuesday 17th
November
2015
Monday 4th
January
2016
For DSR TA,
this is where
the process
re-starts
after the T-4
results are
published.
DECC
26 C
Publish "Final"
Auction Guidelines
& Bidder details
Publish final guidelines inc. any
update to Auction Parameters &
details of Auction Monitor. Notify applicants of pre-qualification
status following completion of
Credit Cover process.
T – 3 weeks -
PQ + 37
working
days
Tuesday 17th
November
2015
Tuesday 5th
January
2016
Final T-4
auction
parameters
Credit Cover
verification
NG
27 D Auction Status
confirmation window
open
Start date for Applicants to submit
confirmations (Existing – Price
Maker/Taker; DSR – Size & In/Out;
New/Refurb – In/Out & length)
Tuesday 17th
November
2015
Tuesday 5th
January
2016
App
National Grid Electricity Transmission Page 10
T-4
ref TA
ref Deliverable Scope Date
requirement
from CM
Rules/Regs T-4 Auction
DSR
Transitional
Auction Dependencies Owner
28 A Tier 2 Appeal process
target completion
date
Following completion of Tier 2
appeal, applicant & NG
informed of outcome.
Friday 20th
November
2015
Friday 20th
November
2015
For DSR TA,
this is where
the process
halts.
Ofgem
29 E
Closing date for
Auction Status
confirmations
Last date for applicants to
submit confirmations T – 10
working
days
Tuesday 24th
November
2015
Tuesday 12th
January
2016
App
30 F
Run Mock Auction Run Mock Auction with all
applicants
Wednesday
25th
November
2015
Wednesday
13th January
2016
NG
31 G
NG provides results
of Auction Status
confirmations to SoS
NG to collate Auction status
confirmations and provide
results to SoS
T – 8
working
days
Thursday 26th
November
2015
Thursday
14th January
2016
NG
32 H
Auction Go/No Go
decision DECC/NG agree Go/No Go
Monday 7th
December
2015
Monday 25th
January
2016
Auction Status
Confirmations Delivery Body
readiness
DECC/NG
33 I
Start Auction Start the first round T
Tuesday 8th
December
2015
Tuesday 26th
January
2016
Go/No Go
decision NG
34 J
Complete Auction Auction closes C
Friday 11th
December
2015
Friday 29th
January
2016
Based on a 4
days auction NG
National Grid Electricity Transmission Page 11
T-4
ref TA
ref Deliverable Scope Date
requirement
from CM
Rules/Regs T-4 Auction
DSR
Transitional
Auction Dependencies Owner
35 K
Notification of
provisional
Auction results
Notify bidders whether they’ve been
provisionally awarded a Capacity
Agreement
Notify DECC and Ofgem of the
provisional results
C + 24
hours
Friday 11th
December
2015
Friday 29th
January
2016
Auction
completing NG
36 L
Auction monitor
sends report to
DECC
Auction Monitor prepares report on
Auction process and submits to SoS C + 2
working
days
Tuesday 15th
December
2015
Tuesday 2nd
February
2016
Auction
completing Auction
Monitor
37 M
Auction Results
Day Publish results of the auction to
Bidders, the Auction Monitor & other
administrative parties C + 8
working
days
Wednesday
23rd
December
2015
Wednesday
10th
February
2016
Auction
completing No counter
instruction
from SoS.
NG
38 N
Issue Capacity
Agreements Issue agreements to successful
bidders C + 20
working
days
No later than
Friday 22nd
January 2016
No later
than Friday
26th
February
2016
Auction
Results Day NG
Recommended