Info Session NWE Day-Ahead

Elias European Market Design Work
Group & Belpex Users Group
Info Session NWE Day-Ahead

Operational & contractual changes for
Belgian wholesale market organization
Agenda
Introduction
Pascale Fonck
General overview of NWE Price Coupling

Martine Verelst
Operational principles & possible scenarios

Amlie Gemers
Detailed operational procedures

Ghizlan Achkari
New Smart Order types & Automatic Order Submission Tool

Rob Loos
Changes to Market Rules (Belpex / Elia)

Rob Loos
Member Testing & Planning to go-live

Rob Loos
Conclusion
James Matthys-Donnadieu
General overview
NWE DAY-AHEAD PRICE

COUPLING
AS IS > TO BE
Two separate Market Couplings (CWE &
Nordic) linked by a volume coupling (ITVC
organised by EMCC)
Sequential calculation approach
No common algorithm applied
Full coupling with GB
One single price coupling based on a
single calculation
One single common algorithm to allow for a
sound and robust price formation
NWE
PCR : Price Coupling of

Regions
NWE Behind the scenes

Parties involved
13 Transmission System Operators
4 Power Exchanges
Systems & interfaces
Approx. 50 systems involved

Approx. 150 interfaces
40 serviced interconnectors
30 bidding zones
6
NWE Driving European

Market Integration
NWE is more than the sum of its parts
It promotes liquidity and
robustness of DA markets
It allows for
It establishes the
necessary
NWE DA
optimal usage
framework to
of cross-border
enable extensions
capacities
It encourages
the harmonization of market rules

7
Potential integration of losses

on DC cables
Activation of losses on a specific interconnector is subject to approval

of relevant national NRAs
Cable
Loss factor
foreseen
Comments
IFA (UK-FR)
yes
Application to Ofgem and CRE.

Foreseen for go-live
Britned (UK-NL)
yes
Application to Ofgem and ACM.

Foreseen for go-live
NorNed (NO-NL)
yes
Application to NVE and ACM. Pending

regulatory approval
88
NWE - Interconnectors
FerroSkan
EstLink
Skagerak
Kontiscan
NorNed DK1-DE Baltic
SwePol
BritNed
Kontek
IFA
General principles
OPERATIONAL PRINCIPLES
& POSSIBLE SCENARIOS
Price Coupling Process
General term for ATC and/or FB parameters used = CZCs : Cross Zonal Capacities
11
NWE Business Process
10:30
CZCs and allocation
constraints submitted
to PCR
12:00
Orderbooks closure
Global Preliminary PX
Confirmation
CZCs and allocation

constraints
submission and
integration
Final
Confirmation
of the results
12:55
Global Final Confirmation
Publication
Market Coupling
Results and
Scheduled Exchanges
transfer
12:55 14:00
Nominations
Trading
confirmation
and scheduled
exchanges
notification
PCR process:
CZCs and allocation constraints
process
Orderbook processing
PMB calculation
Preliminary confirmation process
Final
confirmation
process
12
PCR Process Timings for NWE

Normal process 55 minutes
12:00
OBK GCT
12:00 12:10
Check of OBK and sending to PMB
12:10 12:27
Calculation
12:28 12:41
Preliminary PX validation
12:42
Publication of preliminary results (incl. market clearing price) to

the market and in parallel sending of these preliminary results
for final confirmation/approval to the TSOs
12:42 12:54
Final TSO validation
12:55
Publication of Final Results (incl. market clearing price)

Start of Notification Process
13
Process is delayed
Target
Time
Partial
Coupling/Full
Decoupling
Deadline
Latest Time to
Start an IC
TIME
Normal Procedure
Normal procedures can still apply after

target time
Backup procedure
can apply before the
target time
Backup procedures
Fallback procedures can apply before fallback

time
Fallback procedures
Decoupling
preparation
decoupling
14
Process delayed assumptions

Pre-coupling
Deadline to solve incidents with Network Data (CZCs)
publication is 11:45 CET
Coupling
Time allowance for technical problem solving up to 55 min
Time allowance for special market procedures such as
handling of curtailment situations or price threshold reached
via a second auction used by CWE PXs or the NPS-applied
regulated routines that include peak load capacity
(production/load) reserves activation.
Deadline for final Market Results is 13:50 CET
Max. Time
/Flexibility to solve
technical problems
55min
2nd Auction
CWE/ GB
48 min
Post-coupling
Final notification deadline of 15:30 in CWE, CWE-GB and
CWE-Nordic interconnectors
15
Second Auction
2nd Auction
CWE/ GB
48 min
A Second Auction is triggered in case at least one of the CWE/GB

prices reach or exceed the predefined price thresholds
The routine consists in

Reopening the PXs order books for 10 minutes to give the Market Participants
the opportunity to modify their bids in order to improve the market situation
Execution of a second calculation with the new Order Data
The thresholds to trigger a 2nd auction in CWE remain the same:

+ 500 EUR/MWh and -150 EUR/MWh
In GB thresholds will be introduced:

+ 500 GBP/MWh and -150 GBP/MWh
In case the prices still reach the thresholds after the Second
Auction calculation, no additional Second Auction will be
triggered
16
PCR PROCESS TIMINGS for NWE
* This is the maximum time which could be used to solve a technical problem in order to avoid a decoupling. If the technical
problem is resolved in less than 55 min than the next processes will start earlier.
** the Second Auction in CWE / GB is a single process taking 48 minutes.
*** the Special Procedure for the Nordics is an iterative process which will run the number of times necessary taking into the
13.50 full decoupling deadline when NWE is coupled.
17
Fallback procedures
Target
Time
Partial
Coupling/Full
Decoupling
Deadline
Latest Time to
Start an IC
TIME
Normal Procedure

target time
Backup procedure
target time
Backup procedures

time
Fallback procedures
Decoupling
preparation
decoupling
18
Fallback procedures
Target
Time
Partial
Coupling/Full
Decoupling
Deadline
Latest Time to
Start an IC
TIME
Normal Procedure

target time
Backup procedure
target time
Backup procedures

time
Fallback procedures
Decoupling
preparation
decoupling
19
Full Decoupling of NWE

Internally in CWE and for the CWE Nordic interconnectors (except
Baltic Cable):
Shadow auctions organized by CASC will be held and results published
The 3 PXs within CWE will reopen the order books (20 min) and perform local DA spot
market calculations without using cross border capacities
The notification deadline of 15:30 is applicable for the notification by market parties of
utilization of Explicit Capacity bought in Shadow Auctions
Fallback for Baltic cable : capacity goes back to the cable owner
In GB
Shadow auctions organized by RTE/NGIC are applicable for FR/GB border only (IFA
interconnector), this consists of daily explicit auctions
Capacity of virtual interconnector set to zero
The 2 PXs will reopen the order books (APX UK 15 min) and perform local DA spot market
calculations without using cross border capacities
Fallback for BritNed : capacity goes to intraday
For the Nordic Baltic area including the link with Poland
Shadow auctions on 3 CWE-Nordic links
Re-opening of NPS order books
Price coupling will be performed by NPS utilizing the cross border capacities within this
region
20
Shadow Auctions
Bids submitted through the Shadow Auctions interface at CASC.EU
are default bids :
They are valid for every day of the year, for a specific border, direction
and an hourly period (Volume in MW and a Price in /MWh)
Participants can update their default bids at any time before the
freezing of the database when Shadow Auctions are run
Description in Harmonised Auction Rules for CWE, CSE and CH

Possibility to register only for Shadow Auctions, with a lighter
status: Participant to Shadow Auctions Only"
Market Participants need to submit a nomination towards the
respective TSOs by the notification deadline of 15:30
21
Full Decoupling scenario

CWE : 4 local PX auctions
Nordic-Baltic Market Splitting

Virtual Capacity is set to Zero
2 local PX auctions
Shadow Auctions
Local matching process
In case of full decoupling the processes are local

Communication in case of fallback is organized locally (different info,
different timings)
22
22
CWE TSO investigate flexibility

of notification deadline
The CWE TSOs and 50 Hertz have agreed upon a joint target
solution for the deadlines for submitting the different schedules
towards the TSOs available as of Go-Live of the Price Coupling in
the NWE region
Taken into account that it is important for the TSOs to receive data
of good quality, the TSOs agreed to extend the deadline for
submitting generation schedules in the very rare cases of specific
fallback situations to a later time than 15:30
In these extraordinary situations, all CWE TSOs and 50 Hertz will
extend the deadline for submitting generation schedules until at
least 15:45. Some TSOs can extend this deadline even beyond
15:45 depending on local market rules
This means that market participants have at least 60 minutes for
the submission of generation schedules
23
CWE TSO investigation on

flexibility of notification deadline
impact on procedures
Exceptional cases
Notification
Process
45 min
15:30
15:30
Crossborder
Notification
Process
45 min
15:30
15:45
Generation
Notification
Process
At least
60 min
24
25
Full Decoupling before OBK

GCT (12:00)
Case X10
Full decoupling
before 12.00
Case X11
X10 +
delay
OBK GCT = 12:00
Full decoupling
42 min
Notification
Process
60 min
Case X12
X10 +
2nd Auction
CWE
Full decoupling
42 min
Full decoupling
42 min
Max. Time
/Flexibility to
solve technical
problems
2nd Auction
CWE/ GB
55min*
Notification
Process
60 min
28 min**
Notification
Process
60 min
Final Notification deadline =15:30 which applies to:

Internal CWE, CWE-GB and CWE-Nordic interconnectors
26
Partial (De)coupling within NWE

Any scenario where one or more bidding areas and/or
interconnectors are temporary not participating in NWE Market
Coupling while the remaining bidding areas/interconnectors still
participate in NWE Market Coupling
The CZCs for the decoupled borders / interconnectors will be
allocated via the fallback solution for these temporary not
participating borders / interconnectors
NWE parties will try to couple as many borders / interconnectors as
possible
Partial Decoupling is triggered
during the pre-coupling process, at the latest at 11:45
during the coupling process, at the latest at 12:40
27
Partial Decoupling Scenario

Example : CWE+GB <> Nordic
PCR coupling
Nordic-Baltic: Market Splitting

Shadow Auctions
PCR matching process
28

Example : NorNed
PCR coupling
Shadow Auctions
29

Example : EPEX OBK missing
PCR coupling
Shadow Auctions
30

Example: APX NL/Belpex OBK
missing
PCR coupling
Shadow Auctions
31

Example : no CWE CZCs in PMB
PCR coupling
Shadow Auctions
32
Decoupling scenarios
Wheres the problem
What decouples?
Resulting configuration
APX/Belpex
CWE internal borders (FR-DE,

FR-BE, BE-NL, NL-DE) and
NorNed and BritNed and GB-GB
NL, BE and APX UK

markets isolated
EPEX
CWE internal borders and IFA,

DK-DE, DE-SE
DE, FR, and BE

markets isolated
NPS (Nordic)
Nordic area, NorNed, DE-DK,

DE-SE
Nordic markets
isolated (but internally
coupled)
N2EX
GB-GB, IFA
N2EX market isolated
CWE TSOs
CWE internal borders
BE market isolated
BritNed
BritNed
No market isolated
NorNed
NorNed
No market isolated
Any other individual

interconnector
That interconnector
No market isolated
PMB, or problem after

12:20
Entire region
All markets isolated

(but Nordic markets
internally coupled)
33
33
Partial Decoupling before OBK

GCT (12:00)
34
Partial Decoupling before OBK

GCT (12:00)
Partial coupling followed by Full
Decoupling
+ Special Routine Nordics
* In case X6b, the NPS special procedure, being an iterative process, may take the same timeframe as when all
markets are still coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a
nomination deadline, but instead NPS can take as long time as needed to finish the Price Calculation and
subsequent notifications can be submitted (updated) by NPS and market parties to relevant TSOs until about 1
hour before delivery hour.
35
Partial Decoupling after OBK

GCT (12:00)
Case X7
Case X8
Case X9a
Case X9b
Publication of
preliminary results
=12:42
36
36
Nomination Deadlines @ Elia

Cases
Number
Case Description
Normal
X1
X10
partial decoupling before OBK GCT

full decoupling before OBK GCT
1
X2
X11
X12
small delay
partial decoupling before OBK GCT + small delay
full decoupling before OBK GCT + small delay
full decoupling before GCT + 2nd auction
1
2a *
3a *
X2
X3a *
X4a *
X7
X11
Longer/maximum delay
2nd auction
delay + 2nd auction
partial decoupling before OBK GCT + longer/maximum delay
partial decoupling before OBK GCT + 2nd auction
partial decoupling before OBK GCT + delay + 2nd auction
partial decoupling after OBK GCT
full decoupling before OBK GCT + longer/maximum delay
4
X5
X8
full decoupling
partial decoupling before OBK GCT + full decoupling
partial decoupling after OBK GCT + full decoupling
5a
X6a
X9a
full decoupling + 2nd auction

partial decoupling before OBK GCT + full decoupling + 2nd auction
partial decoupling after OBK GCT + full decoupling + 2nd auction
* In case Market Results are published before 13:20, nomination deadlines from case 1 apply
NO market
results
before
HUB 1
Cross Border
HUB2
Off-Take
Injection
Generation
14:00
14:30
15:00
13:00
14:15
14:30
15:00
13:20
14:45
15:00
15:30
13:50
15:15
15:30
15:30
13:50
15:15
15:30
16:00
37
38
39
Timings and messages
DETAILED OPERATIONAL
PROCEDURES
NORMAL NWE/PCR PROCESS
Normal NWE/PCR process

Normal
timing
Final
results
PX GCT
10:30
12:00
12:42
12:55
15:00
CZC publication
MPs introduce orders
Preliminary result
publication
Coupling process
Notifications to Elia
* All timings are C.E.T
42
Normal process timeline

CZC published at 10:30 on CASC website
PX gate closure time at 12:00
Publication of preliminary market results 12:42
Publication of final market results 12:55
Notification
deadline
Belgium
France
Germany
The Netherlands
Cross-Border
14:30
14:30
14:30
14:00 (E-program)
Local/hub
Hub 1: 14:00
Hub 2: 14:30
Ex post
14:30
14:00 (E-program)
Consumption
14:30
n/a
14:30
14:45 (T-program)
Generation
15:00
16:30
14:30
14:45 (T-program)
43
CASE 1 PROCESS DELAYED

WITH MAX TIMING
Case 1 Process delayed with

max timing
Normal
timing
Final
results
PX GCT
10:30
12:00
12:42
12:55
13:00
13:20
Exceptional
timing
13:38
13:50
15:30
CZC publication
Preliminary result
publication
Coupling process / Backup procedures
Message to MP
Technical problem
45
Case 1 Process delayed with

max timing

Delay in Market Coupling results
Timing
Message
Additional actions
for MPs
12:42
[ExC_02]: Delay in Market

Coupling Results
publication
CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
13:00
TSO: Delay in Market

Coupling Results/ local
Market Results publication
and extension of Hub
Notification deadline
CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
13:20

Market
results
Publication
deadline
Local hub
Notification
Deadline
HUB1/HUB2
Cross
Border
Notification
Deadline
Generation
notification
deadline
13:50
14:15/14:30
14:30
15:00
13:50
14:45/15:00
15:00
15:30
13:50
46
Messages
PX : [ExC_02]
TSO
47
CASE 2A SECOND AUCTION
Case 2a second auction

Normal
timing
Final
results
PX GCT
10:30
12:00
12:30
Exceptional
timing
14:00
>12:42
>12:55
13:00
13:20 <13:50
15:30
CZC publication
Preliminary result
publication
Coupling process
Message to MP
49
Case 2a second auction

Threshold reached -150/MWh or 500/MWh (-150/MWh or + 500/MWh)
Second Auction triggered (re-opening of Order Books)
Timing
Message
Additional
actions for MPs
12:30
[ExC_01]: Thresholds
reached - Reopening of the
order books
PX: OBK open for

10 minutes after
message
13:00

CASC: invitation
to update bids in
the Shad ow
Auction system
before 13:40
13:20

Market
results
Publication
deadline
Local hub
Notification
Deadline
HUB1/HUB2
Cross Border
Notification
Deadline
Generation
notification
deadline
13:50
14:15/14:30
14:30
15:00
13:50
14:45/15:00
15:00
15:30
13:50
50
Messages
PX : [ExC_01]
CASC will add: Therefore, if relevant, we

advise you to update your shadow bids at
CASC EXAU platform before 13:40.
51
CASE 4 FULL DECOUPLING
Case 4 Full Decoupling

Normal
timing
Shadow
Auction
results
PX GCT
10:30
12:00
Final
results
12:55
Exceptional
timing
12:42
13:00
13:20
13:50
>14:30 15:30
CZC publication
MPs introduce bids
Process run
Full
decoupling
preparation*
Full
decoupling
MPs update orders**
Exceptional procedures
Message to MP
Note:
*Shadow auction will be triggered at CASC
** Reopening of order book for 20 min
53
Timing

Message
12:42

Coupling Results
publication
13:00

Additional actions
for MPs
Market
results
Publication
deadline
Local hub
Notification
Deadline
HUB1/HUB2
Cross Border
Notification
Deadline
Generation
notification
deadline
13:50
14:15/14:30
14:30
15:00
CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
54
Timing
Full decoupling announcement

Shadow auctions
Follow the local auction rules
Message
[ExC_03b]: Risk of Full

Decoupling
13:20
TSO: Extension of
Notification Deadlines due
to full decoupling
declared/delay in local
Market
results
Publication
deadline
Local hub
Notification
Deadline
HUB1/HUB2
Cross Border
Notification
Deadline
Generation
notification
deadline
13:50
14:45/15:00
15:00
15:30
15:15/15:30
15:30
15:30
CASC: invitation to
update bids in the
Shadow Auction
system before 13:40

[ExC_04b]: Full
Decoupling Reopening of
the order books
13:50
Additional actions
for MPs
PX: OBK open for 20

minutes after
message
55
Messages
PX : [ExC_02]
56
Messages
PX : [ExC_03b]
TSO

CASC EXAU platform before 13:40
57
Messages
PX : [ExC_04b]
TSO
58
CASE 5A FULL DECOUPLING

+ 2ND AUCTION
Case 5a Full Decoupling + 2nd

Auction
Normal
timing
Shadow
Auction
results
PX GCT
10:30
Exceptional
timing
12:00
Final****
results
12:55
12:42
13:00
13:20
13:50
14:00
14:25
14:45
16:00
CZC publication
MPs introduce bids
Coupling process
Full
decoupling
preparation*
Full
decoupling
MPs update orders**
MPs update orders***
Message to MP
Note:
*** Reopening of order book second auction 10 min
**** PX publish at best effort base at 14:45
60
Case 5a Full Decoupling + 2nd Auction
Timing

Message
Additional actions
for MPs
12:42

Coupling Results
publication
CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
13:00

CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
[ExC_03b]: Risk of Full

Decoupling
CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
Market
results
Publication
deadline
Local hub
Notification
Deadline
HUB1/HUB2
Cross Border
Notification
Deadline
Generation
notification
deadline
13:50
14:15/14:30
14:30
15:00
13:50
14:45/15:00
15:00
15:30
13:20
61
Case 5a Full Decoupling + 2nd Auction
Timing
Full decoupling announcement

Shadow auctions
Follow the local auction rules
Message
[ExC_04b]: Full
the order books
13:50
Additional actions
for MPs
Local hub
Notification
Deadline
HUB1/HUB2
Cross Border
Notification
Deadline
Generation
notification
deadline
15:15/15:30
15:30
15:30
15:15/15:30
15:30
16:00
PX: OBK open for 20

minutes after
message
TSO: Extension of
Notification Deadlines due
to full decoupling
declared/delay in local
[CWE_UMM_05]:
Thresholds reached during
local auction
Market
results
Publication
deadline
PX: OBK open for 10

minutes after
message
14:25
TSO: Extension of
Generation Notification
Deadlines due to Second
Auction Triggered after Full
Decoupling
62
Messages
PX : [ExC_02]
63
Messages
PX : [ExC_03b]
TSO

64
Messages
PX : [ExC_04b]
TSO
65
Messages
PX : [UMM_05]
TSO
66
CASE X3A PARTIAL

COUPLING BEFORE OBK GCT
+ SECOND AUCTION
Case X3a partial coupling before

OBK GCT + Second Auction
Shadow
Auction
results
Normal
timing
PX GCT
10:30
Exceptional
timing
11:15
Final
results
12:00
12:30
14:00
>12:42
11:45
>12:55
13:00
13:20 <13:50
15:30
CZC publication
Preliminary result
publication
Partial coupling
before OBK GCT
Coupling process
Message to MP
68
Case X3a partial coupling before

OBK GCT + Second Auction
Timing

Threshold reached -150/MWh or 500/MWh (-150/MWh or + 500/MWh)
Second Auction triggered (re-opening of Order Books)
Publication of final market results before 13:50
Message
Additional actions for

MPs
Market
results
Publication
deadline
Local hub
Notification
Deadline
HUB1/HUB2
Cross Border
Notification
Deadline
Generation
notification
deadline
CASC: invitation to
update bids in the
Shadow Auction
system before 11:35
11:15
[UMM_02]: Risk of partial

decoupling for one or more
interconnectors
11:45
[UMM_03]: One or more

interconnectors decoupled
12:30
[ExC_01]: Thresholds
reached - Reopening of the
order books
PX: OBK open for 10

minutes after message
13:50
13:00

CASC: invitation to
update bids in the
Shadow Auction
system before 13:40
13:50
14:15/14:30
14:30
15:00
13:20

13:50
14:45/15:00
15:00
15:30
69
Message
PX : [UMM_02]

70
Messages
PX : [ExC_01]
71
CASE X7 PARTIAL COUPLING

AFTER GCT
Case X7 partial coupling after GCT

Normal
timing
Shadow
Auction
results
PX GCT
10:30
Final
results
12:00
Exceptional
timing
12:20
12:30
12:40
13:00
13:20 13:38
13:50
15:30
CZC publication
Preliminary result
publication
Partial
coupling
preparation*
Partial
coupling
MPs update orders**
Coupling process / backup procedures

Note:
Message to MP

73
Case X7 partial coupling after GCT

Publication of preliminary market results at the latest 13:38
Publication of final market results at the latest 13:50
Timing
Message
Additional
actions for MPs
Market
results
Publication
deadline
Local hub
Notification
Deadline
HUB1/HUB2
Cross Border
Notification
Deadline
Generation
notification
deadline
12:20
[ExC_03a]: Risk of Partial

Decoupling
CASC: invitation
to update bids in
the Shadow
Auction system
before 12:30
12:40
[ExC_04a]: Partial
the PX order books
PX: OBK open for

10 minutes after
message
13:50
13:00

CASC: invitation
to update bids in
the Shadow
Auction system
before 13:40
13:50
14:15/14:30
14:30
15:00
13:50
14:45/15:00
15:00
15:30
13:20

74
74
Messages
PX : [ExC_03a]

CASC EXAU platform before 12:30.
75
Messages
PX : [ExC_04a]
TSO
76
NWE process overview

Normal
timing
PX GCT
10:30
Exceptional
timing
12:00
11:45
12:55
12:20
12:40
13:05
13:50
15:30
CZC publication
MPs introduce bids
Process run
Partial coupling due
to CZC reason
Partial coupling
preparation
Partial
coupling
Full
decoupling
preparation
Full
decoupling
77
Decoupling scenarios
Wheres the problem
What decouples?
Resulting configuration
APX/Belpex
CWE internal borders (FRDE, FR-BE, BE-NL, NL-DE)

and NorNed and BritNed
and GB-GB
NL, BE and APX UK

markets isolated
EPEX
CWE internal borders and

IFA, DK-DE, DE-SE
DE, FR, and BE

markets isolated
NPS (Nordic)
Nordic area, NorNed, DEDK, DE-SE
Nordic markets
isolated (but internally
coupled)
N2EX
GB-GB, IFA
N2EX market isolated
CWE TSOs
CWE internal borders
BE market isolated
BritNed
BritNed
No market isolated
NorNed
NorNed
No market isolated
Any other individual

interconnector
That interconnector
No market isolated
PMB, or problem after 12:20
Entire region
All markets isolated

(but Nordic markets
internally coupled)
78
78
Communication to the market summarized

Time/
Deadline
Communication
Message
number
Other messages
10:00
Risk of Partial/full Decoupling known in

advance
[ExC_03a/b]
10:30
Partial/full Decoupling known in advance
[ExC_05a/b]
11:15
Risk of partial decoupling for one or more

interconnectors
[UMM_02]
11:45
One or more interconnectors decoupled
[UMM_03]
12:20
Risk of Partial Decoupling in certain regions
[ExC_03a]
~ 12:30
Second Auction
[ExC_01]
12:40
Partial Decoupling Reopening of order books
[ExC_04a]
Regular publication time

(12:42)
Delay in Market Coupling Results publication
[ExC_02]
CASC
TSO
Local PX
NB 1. The fallback solutions and processes as well as their associated contents and timings are organized on local / regional level and not on NWE level. Timings are
therefore indicative and additional messages can be sent (e.g. IFA CMS will also sent messages in case of a fall back situation)
NB 2. The shift of notification deadlines only applies for CWE internally and CWE borders.
79

Time/
Deadline
Communication
Message
number
13:00
Delay in Market Coupling Results publication ->

Extension of notification deadlines
13:20
Risk of Full Decoupling

[EXC_03b]
13:50
Decision of Full decoupling

[EXC_04b]
14:25
Thresholds reached during local auction
[UMM_05]
Other messages
CASC
TSO
Local PX
80
81
Smarter Day-ahead
Smart bids project
New Block Order Types
LINKED & EXCLUSIVE BLOCK

ORDERS
Linked Block Orders

Definition:
The execution of (a set of) profile block(s) is subject to the
execution of another block
Other standard execution rule apply in full
Use:
Allows to explicitly consider technical and economical
constraints
For example, a first block may include the start-up costs of a
production facility, and additional blocks comprising fuel costs
may be linked to this block
Possibility to design complex linked structures (i.e. families)
Q
1
Hour
Block Order
11
13
15
Block Order 2
17
19
21
Block Order83
3
23
1
Hour
Block Order
11
13
15
Block Order 2
17
19
21
Block Order 3
23
83
Example
Technical plant data
Pmin
Pmax
Output
(MW)
Cost
(/MWh)
50
65
200
62
300
60
Production cost 50 MW = 65 /MWh

Production cost 300 MW = 60
/MWh
Marginal cost to increase production
from 50 MW to 300 MW = 59 /MWh
Marginal cost to increase from 50
MW to 200 MW = 61 /MWh
Bidding strategies
Possible bidding strategy 1:
Block 1: Sell 50 MW @ 65
linked to Block 1
Unit is fully accepted if P>60;

or 50 MW accepted if P>65
linked to Block 1

linked to Block 2

or 200 MW accepted if P>62;
84
Example
Technical plant data
Pmin
Output
(MW)
Cost
(/MWh)
50
65

linked to Block 1

orwellfare
50 MW accepted
if P>65
300Linked Block
Orders: global
considered
60
200
Pmax
Bidding strategies
62

Production cost 50 MW = 65 /MWh
The
unitMW
will=also
60 @
P65
Block 1:price
Sell 50isMW
Production
cost 300
60 clear if baseload
/MWh
65!
Marginal cost to increase production
linked to Block 1
from 50 MW to 300 MW = 59 /MWh
The
algorithm
is 50
not sequential,
buttoconsiders
the
Marginalcost
to increase
from
linked
Block 2
MW to 200 global
MW = 61
/MWh of both blocks.
wellfare
or 200 MW accepted if P>62;
85
Linked Block Orders use

cases
Optimise thermal power plants
Offer plant using multiple orders, allowing it to run at different
outputs, each reflected by their own cost level
Run one/several hour(s) earlier or later if power prices remain
interesting outside of the peak period
Optimise consumption processes

Only execute part B of consumption process if part A of
process was started earlier
Or only start A+B when combination does not exceed certain
costs
Optimise storage capacity

Sell only during peak period if off-peak purchase order has
been accepted and buy/sell combination is in the money
86
Exclusive Block Orders

Definition:
Within a set of profile blocks, at most one block can be
accepted
Other standard execution rule apply in full
Use:
Allows to propose for trading different production patterns
For example, a specific production plant can be offered
at a low price for baseload production,

at a medim price for peak load production
>at a high price for super peak load production
but can only be executed once
Low price order
11
13 15
Medium price order
17 19
21 23
11
13 15
High price order
17 19
21 23
11
13 15
17 19
21 23
Exclusive Block Orders

Optimise thermal power plants
Similar to using Linked Block Orders
Optimise combined heat & power installations

Heat demand with flexible timing, or some heat buffer
Flexibility might allow to produce heat & power when power
prices are highest, using several exclusive production profiles
Optimise demand side management

Case: End user can stop consumption, but only if DAM prices
> 500 /MWh and for max 2 hours/day
Program load shedding on the DAM on the most expensive
hours (and only of threshold is reached), using a combination
of exclusive blocks of 2 hours
Block 1: hours 1 & 2, Block 2: hours 2 & 3,
88
Benefits of Smart Orders

Smarter orders give more flexibility when
introducing orders for the auction
Better reflecting technical constraints of generation units
E.g. no partial clearing at non-cost reflective price levels, lower PRB
frequency (plant offered in smaller blocks),
Easier bidding, less operational work
Result: better asset optimization (generation +

consumption)
Better price formation
More robust against uncertainties faced when
making day-ahead price forecasts
89
Static Demo
Linked Family
90
Linked Family - Entry

Two options are available to submit a Linked family
Option 1
Option 2
91

A visual representation helps the trader to identify
mistakes: Red screen for Buy side (Green for Sell side)
Show the number of
Family group submitted
Indicate the parent of the

block
Give a representation of
the family
92

Linked family can combine Buy and Sell: the background
turns blue and the columns turn red or green to represent
Buy or Sell orders
Graph shows both sides
Indicates the side of the

block
Pressing this button shows

the family in a tree
93

A Tree View shows the hierarchical relationship between
orders
Block 4 can only be traded if
Bloc 2 and block 1 are trade
Pressing this button lead the

trader back to the entry screen
Color represents the side of

the order (Buy or Sell).
Colored squares make the
link with the graphs above.
94
Static Demo
Exclusive Group
95
Exclusive Group - Entry

Two options are available to submit an Exclusive Group
Option 1
Option 2
96

A visual representation helps the trader to identify
mistakes: Green screen for Sell side (Red for Buy side)
Number of exclusive group will be
limited limit to be defined
Out of all the order entered,

maximum one will be traded
97

Linked family can combine Buy and Sell: the background
turns blue and the columns turn red or green to represent
Buy or Sell orders
Graph shows both sides
Indicates the side of the

block
98
Smarter Day-ahead
Smart bids project
Submit Orders using XML files
AUTOMATIC ORDER
SUBMISSION TOOL
99
Automatic Order Submission

Intro
New tool to facilitate submitting orders in
automated way using XML files
Easier workflow
Eliminates operational risks involved with Paste
from Excel functionality
Planned to be available before launch of Smart
Orders
100

Details
Software to be installed alongside EuroLight client
Tool will monitor specific folder and
Process all xml files contained in folder
Give feedback via acknowledgement xml file
Orders introduced via tool will be visible in

EuroLight Order Book
Editing via EuroLight possible
101

XML Specifications & Testing
Draft manual & specifications of xml files available
on APX / Belpex websites
Scheduled to be available on the Member Testing

environment as of 23 October
102
Belpex Market Rules Elia ARP contract
CHANGE TO RULES
103
Belpex Market Rules

Market Rules
Execution conditions for Linked & Exclusive Block
Orders
Clarifications of procedures (with no impact on
members)
104
Belpex Market Procedures

Market Segment Specifications
Changes with respect to countries involved in
Market Coupling
Day-Ahead Market
Minimum price will become -500 /MWh

Via Communication
Maximum price will remain +3000/MWh
Availability Linked & Exclusive Block Orders confirmed
Changes to operational timings
Changes regarding rollback
User Procedure
Changes regarding Linked & Exclusive Block
Orders
105
Changes to Elia ARP contract

ARP Contract
No changes
Contains nomination deadlines for normal
procedures
106
Capacities Flows Prices
PUBLICATIONS
107
Publications
www.belpex.be
Market prices & auction volumes
www.elia.be
NTC values, ATC values, flows
www.casc.eu
ATC values, Shadow Auction results (if any)
Yearly, monthly capacity auction results
www.europeanpricecoupling.eu
Daily prices, ATC values & flows
108
Belpex Market Rules Elia ARP contract
PLANNING TO GO-LIVE &

MEMBER TESTING
109
NWE Target Go-live Date

The Target Go-live date has been set at 26
November 2013
for Delivery Date 27 November 2013
Go-live date is subject to
Successful completion of the Simulation Test phase;

Successful completion of the Member Test phase;
Signing of all contracts and agreements;
Regulatory approval
Final Go/No Go decision to launch will be taken

early November
Launch activities have been started
110
NWE Simulation Testing

Simulation Testing phase by NWE project parties
until 31/10/2013
Normal Day scenarios
Backup scenarios
Fallback scenarios (full decoupling and partial coupling)
Complexity due to
testing with 50+ systems and 150+ interfaces involved
New partial coupling procedures and system functionality
NWE Parties are working hard to meet the

acceptance criteria for simulation testing
111
Joint NWE Member Tests

NWE Member Test planned for 14/10 25/10
Timing delayed to afternoon, but same process time
On request of members, testing of nomination process has been added
to all test days
Smart Orders are available in NWE Member Testing

Date
Simulation
Settlement
i
Process
Yes
Yes
Yes
Monday, October 14
Normal Day
Tuesday, October 15
2nd auction triggering in CWE / GB
Wednesday, October 16 Full decoupling of NWE
Partial Coupling 1 (Nordic-Baltic area
Thursday, October 17
will be decoupled from the CWE. CWE
and GB remain coupled.)
No
Friday, October 18
No testing
N/A
Saturday, October 19
Sunday, October 20
Partial Coupling 2 (missing order books
Monday, October 21
EPEX)
Yes
Tuesday, October 22
Full decoupling of NWE
Yes
No test foreseen, but can still be used
Wednesday, October 23
as backup testing day
No
No test foreseen, but can still be used
Thursday, October 24
as backup testing day
No
Friday, October 25
No testing
N/A
Nomination Process
Yes
Yes
Yes
Yes
N/A
Yes
Yes
No
No
N/A
112
Local Member Tests

Smart Orders
Smart Orders are available on Member Test
environment already
Will remain available until (and after) NWE Go-live
From 28 October until 15 November, test auction

will be organized by APX / Belpex
Smart orders will be available to see how matching results are
presented
Details on these local tests will be communicated later
113
Local Member Tests

Automatic Order Submission Tool
Scheduled to be available on Member Testing
environment as of 23 October
Exact details will be communicated later
Will be available on Production environment prior to

the NWE go-live
Please note that the Smart Orders functionality will only be available
after NWE Go-live
114
Disclaimer: All messages and timings are subject to changes after final testing.
115
CONCLUSION
116
Annex
SUMMARY
117
PCR PROCESS TIMINGS for

NWE
118
119
Full decoupling before OBK GCT

(12:00) Case X10
Case X12
Case X11
Full decoupling
before 12.00
Idem +
delay
OBK GCT = 12:00
Publication of preliminary results =12:42
Idem +
2nd Auction
CWE
Full decoupling
42 min
Full decoupling
42 min
Full decoupling
42 min
Notification
Max. Time
/Flexibility to
solve technical
problems
2nd Auction
CWE/ GB
Process
60 min
55min*
Notification
Process
60 min
28 min**
Notification
Process
60 min
Final Notification deadline =15:30 which applies to:

Internal CWE, CWE-GB and CWE-Nordic interconnectors
120
Partial Coupling before OBK GCT

(12:00)
Case X1
Case X2
Case X3a
Case X3b
Case X4a
Case X4b
Publication of preliminary results =12:42
121
Partial Coupling before OBK GCT

(12:00)
* In case X6b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are still
coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but
instead NPS can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted
(updated) by NPS and market parties to relevant TSOs until about 1 hour before delivery hour.
122
Partial coupling after OBK GCT (12:00)

Case X7
Case X8
Case X9a
* In case X9b, the NPS special procedure, being an iterative process, may take the same timeframe as when all markets are
still coupled, but this is not relevant in a full decoupling since Nordic and Baltic TSOs do not impose a nomination deadline, but instead NPS
can take as long time as needed to finish the Price Calculation and subsequent notifications can be submitted (updated) by NPS and market
parties to relevant TSOs until about 1 hour before delivery hour.
Case X9b
123

Time/
Deadline
Communication
Message
number
Other messages
10:00
Risk of Partial/full Decoupling known in

advance
[ExC_03a/b]
10:30
Partial/full Decoupling known in advance
[ExC_05a/b]
11:15
Risk of partial decoupling for one or more

interconnectors
[UMM_02]
11:45
One or more interconnectors decoupled
[UMM_03]
12:20
Risk of Partial Decoupling in certain region
[ExC_03a]
~ 12:30
Second Auction
[ExC_01]
12:40
Partial Decoupling Reopening of order books
[ExC_04a]
Regular publication time

(12:42)
Delay in Market Coupling Results publication
[ExC_02]
CASC
TSO
Local PX
NB 1. The fallback solutions and processes as well as their associated contents and timings are organized on local / regional level and not on NWE level. Timings are
therefore indicative and additional messages can be sent (e.g. IFA CMS will also sent messages in case of a fall back situation)
NB 2. The shift of notification deadlines only applies for CWE internally and CWE borders.
124

Time/
Deadline
Communication
Message
number
13:00

13:20
Risk of Full Decoupling

[EXC_03b]
13:50
Decision of Full decoupling

[EXC_04b]
14:25
Thresholds reached during local auction
[UMM_05]
Other messages
CASC
TSO
Local PX
125
Nomination Deadlines @ Elia

Cases
Number
Case Description
Normal
X1
X10
partial decoupling before OBK GCT

full decoupling before OBK GCT
1
X2
X11
X12
small delay
partial decoupling before OBK GCT + small delay
full decoupling before OBK GCT + small delay
full decoupling before GCT + 2nd auction
1
2a *
3a *
X2
X3a *
X4a *
X7
X11
Longer/maximum delay
2nd auction
delay + 2nd auction
partial decoupling before OBK GCT + longer/maximum delay
partial decoupling before OBK GCT + 2nd auction
partial decoupling before OBK GCT + delay + 2nd auction
partial decoupling after OBK GCT
full decoupling before OBK GCT + longer/maximum delay
4
X5
X8
full decoupling
partial decoupling before OBK GCT + full decoupling
partial decoupling after OBK GCT + full decoupling
5a
X6a
X9a
full decoupling + 2nd auction

partial decoupling before OBK GCT + full decoupling + 2nd auction
partial decoupling after OBK GCT + full decoupling + 2nd auction
* In case Market Results are published before 13:20, nomination deadlines from case 1 apply
NO market
results
before
HUB 1
Cross Border
HUB2
Off-Take
Injection
Generation
14:00
14:30
15:00
13:00
14:15
14:30
15:00
13:20
14:45
15:00
15:30
13:50
15:15
15:30
15:30
13:50
15:15
15:30
16:00
126

Info Session NWE Day-Ahead

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Elias European Market Design Work

Group & Belpex Users Group

Info Session NWE Day-Ahead

General overview of NWE Price Coupling

Operational principles & possible scenarios

Detailed operational procedures

New Smart Order types & Automatic Order Submission Tool

Changes to Market Rules (Belpex / Elia)

Member Testing & Planning to go-live

NWE DAY-AHEAD PRICE

PCR : Price Coupling of

NWE Behind the scenes

13 Transmission System Operators

Systems & interfaces

Approx. 50 systems involved

NWE Driving European

It promotes liquidity and

the harmonization of market rules

Potential integration of losses

Activation of losses on a specific interconnector is subject to approval

Application to Ofgem and CRE.

Application to Ofgem and ACM.

Application to NVE and ACM. Pending

Price Coupling Process

NWE Business Process

CZCs and allocation

PCR Process Timings for NWE

Check of OBK and sending to PMB

Publication of preliminary results (incl. market clearing price) to

Final TSO validation

Publication of Final Results (incl. market clearing price)

Normal procedures can still apply after

Fallback procedures can apply before fallback

Process delayed assumptions

A Second Auction is triggered in case at least one of the CWE/GB

The routine consists in

The thresholds to trigger a 2nd auction in CWE remain the same:

In GB thresholds will be introduced:

PCR PROCESS TIMINGS for NWE

Normal procedures can still apply after

Fallback procedures can apply before fallback

Normal procedures can still apply after

Fallback procedures can apply before fallback

Full Decoupling of NWE

Description in Harmonised Auction Rules for CWE, CSE and CH

Full Decoupling scenario

Nordic-Baltic Market Splitting

Local matching process

In case of full decoupling the processes are local

CWE TSO investigate flexibility

CWE TSO investigation on

PCR PROCESS TIMINGS for NWE

Full Decoupling before OBK

OBK GCT = 12:00

Final Notification deadline =15:30 which applies to:

Partial (De)coupling within NWE

Partial Decoupling Scenario

Nordic-Baltic: Market Splitting

Partial Decoupling Scenario

Partial Decoupling Scenario

Partial Decoupling Scenario

Partial Decoupling Scenario

Local matching process

CWE internal borders (FR-DE,