SAPP BALANCING MARKET

Traders and Controllers training – day 1

Hans-Arild Bredesen
Nord Pool Consulting

Kobus van Tonder

NEXTEC/Enerweb

Day 1 of the training

April 2021
Web-meeting
Agenda (1)

General program:
The generic program for both days is from 0900-1400 with a break in the middle.

The main focus areas are:

} Allowing the participants to familiarize themselves with the upgraded version of the SAPP Market Trading Platform in general focusing on
the new functions in the existing markets;
} Detailed training on the new Balancing Market;
} Focused presentation and training for Controllers of their role in the use of the MTP.

The training be using the MTP to present the new features, but most importantly allow both Traders and Controllers to have hands-on access to
the system and have interactive training sessions.

The goal is to allow all participants to understand the use of the new functions connected to the Balancing Market to ensure a secure startup of
this.
The reason for splitting the training in groups is due to the Covid-situation where we are unable to meet in person. By having smaller groups it
is possible to provide better support for all participants.

These sessions was preceded by a general presentation of the new Balancing market design to SAPP MSC, OSC and PSC on April 7th.

In addition, there will be a concluding common session after all the training has been concluded to summarize the feedback from the training.
This will be scheduled in May.
Agenda (2)
Day 1

Start End Agenda topic Responsible

09:00 09:20 Introduction of participants and the agenda HAB/all

09:20 10:30 Presentation of the new SAPP Market Trading Platform – main difference and motivation; KvT

10:30 10:40 Coffee break

10:40 11:00 Changes to the Book of Rules and the effect on members; HAB

11:00 11:45 Specific training for Controllers on the management of Transmission capacity and bilateral contracts; KvT

11:45 12:00 Technical test of accessability for all participants All

12:00 12:30 Lunch break

12:30 13:45 Detailed presentation and demonstration of the new features in the IDM; KvT

13:45 14:00 Summary, Q&A All

Agenda (2)
Day 2

Start End Agenda topic Responsible

09:00 09:10 Recap from yesterday HAB/all
09:10 09:30 Short recap of Balancing Market background HAB
09:30 10:20 Demonstration of the SAPP Balancing Market (using the MTP) HAB (KvT)
10:20 10:30 Technical test of accessability for all participants All
10:30 10:40 Coffee break
Structured hands-on training on the Balancing market focusing on the two different roles (Trader
10:40 12:00 and Controller) using the system in “test”-mode HAB (KvT )
12:00 12:30 Lunch break
Full operational training where the system will be running “live” to experience how the system is
12:30 13:15 operation where a lot of functions are dependent on the time HAB (KvT)
13:15 13:30 Verifiying reports and settlement statement (also in the system) HAB (KvT)
13:30 14:00 Summary, Q&A All
Brief Background
• Quick Overview of Market Concepts
• Different types of Markets
• SAPP Market Framework
• Different SAPP Markets
• The role of the different markets

Presentation of the new SAPP Market Trading Platform

Brief Background
Key Objective of Power Markets

Optimise resources on a regional bases instead of a

national bases in order to balance the demand and
supply of electricity in the region as a whole at the
lowest cost possible.

6
Overview of Different Markets Supported by the MTP
Different Types of Markets

Auction Markets: Continuous Markets:

• FPM-Monthly, FPM-Weekly, DAM • Intraday, Balancing

• Buyers and sellers need to submit their bids and • Buyers and sellers need to submit their bids and
offers before a specific time. offers before a specific time.
• All bids and offers are cleared at the same time. • The moment there is the a willing buyer willing seller
(i.e. buyer willing to pay the seller price) a trade is
• Market price is set at the interception between the
concluded.
sellers willingness to produce and the buyers
willingness to consume. • IDM: The trade is concluded at the seller’s asking
price.
• The Market price algorithm determines the
unconstrained system marginal price and the • BM: Trade (currently) is concluded at the area
constrained area marginal price for a defined market marginal price.
area.
• Buyer who were willing to pay the marginal price or
more will be successful (<= bid price).
• Seller who were willing to sell at the marginal price will
be successful (>= offer price).
SAPP Market Framework

Southern African Power Pool TSOs

FPM DAM IDM Balancing System

Physical
Power Operation
Forward Physical Contracts
contracts @SAPP Real-Time
Market equilibrium Operation
Up to hour ahead Regional market
Weekly and monthly one day ahead
- auction trading - - auction trading - Continious Trading
Forwards
Week – Peak
Week – Standard
Week – Off-Peak

Monthly – Off-Peak
Monthly – Non-Off-Peak Balancing
generation Services
SAPP Settlement and financial management and consumption during the Real-
in realtime Time-Operation:
Settlement of all physical contracts Settlement of wheeling and losses
Controlling
frequency and
Market monitoring and reporting
voltage etc.

9
Forward Physical Market

Auction based market

} Based on the principles where market price is set at the interception between the seller's
willingness to produce and the buyer's willingness to consume.

FPM-Monthly
} Open to trade monthly products as an alternative to bilateral contracts
– Off-Peak
– Non Off-Peak
} All months of the year
} Trading apply to all hours included in the monthly product

FPM – Weekly
} Open to trade weekly products
– Peak
– Standard
– Off-Peak
} All weeks of the year
} Trading apply to all hours included in the weekly product
The Day-Ahead Market

p Open to trade individual hours for every day of the year.

p The participants main opportunity for short term trading of power.
p Called the Cornerstone of the market concept.
p Used to balance the total portfolio before next delivery day.
p Can be used as the reference price for other markets like the financial
market, intraday market and the balancing market.
The Intraday Market - IDM

IDM
} Continuous trading
} To adjust balance ahead of operating hour
} Utilizes the Available Transmission Capacity (ATC) after DAM
trades have been allocated.
} Hours for the next day is opened for trading at 14:00 provided
that DAM for that day has been concluded.
The Balancing Market - BM

BM
} Continuous trading
} To respond to short term imbalances primarily to respond to
system events
} Utilizes the Available Transmission Capacity (ATC) after IDM
trades have been allocated.
} Orders are submitted of the entire hour.
} Hours are opened for trading 45 minutes before the hour starts.
} It is allowed to trade only a portion of the hour.
} Trading continues until 10 minutes before the end of the hour.
Role of Different Markets in Supply

Balancing on the Day – Hourly Contracts

250

200

IDM Trading

150 DAM Trading

Weekly Forward Contracts Weekly Forward Trading (OP)

Weekly Forward Trading (TD)

100 Monthly Forward Contracts Weekly Forward Trading (PK)

Monthly Forward Trading

Bilateral Contracts Bilateral Contracts

Own Production
50 Demand Forcast

Own Supply Total Supply

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

-50
Key Roles/Business Function
In the context of this training session

Traders • Submitting orders (Bids and Offers) in the different markets.

• Verifying the Market Results

Transmission System • Providing information regarding the planned state of transmission interconnectors
• Total Available Transmission Capacity (TTC).

Operators (TSO) • Providing information regarding the operational state of transmission interconnectors
• “Actual” Available Transmission Capacities (ATC)

• Bilateral Contract Reservations: Energy scheduled for delivery (transfer) on all bilateral contracts.

Bilateral Nominators • Required for Transmission Capacity Allocation Management

• Final Bilateral Contract Nominations: After the fact agreed energy delivered on bilateral contracts.
• Required for the Settlement of Imbalances

• Ensuring the smooth operation of all markets including:

Market Operator • Pre Market Clearing Activities

• Market Clearing Activities
• Post Market Clearing Activities

15
Introduction to the New MTP
• Overview of the MTP Modules
• Scope of the Upgrade Project
• The new MTP at a Glance

Presentation of the new SAPP Market Trading Platform

Introduction to the New MTP
 Overview of MTP Modules
Market Operations

Web
Internet E-mail
Browser HTTPS SMTP

SECURITY ACCESS LAYER

INTEGRATION INTERFACE
Settlement & Forward
Transmission Messaging & Day-ahead Intra-day Balancing
Application Master Data Reporting Physical Market
Allocation Document Market User Market User Market User
Framework Configuration User Market User Surveillance
Management Distribution Interfaces Interfaces Interfaces
Interfaces Interfaces
Public
Website
Continuous
Settlement Balancing
MDD Auction Market Market
& Reporting Market
Back-end Clearing Engine Matching
Engine Back-end
Engine

DATA ACCESS LAYER

Existing Supporting Modules Existing Market Modules

Oracle
Relational
Database New Supporting Modules New Market Modules
Scope of the Upgrade Project
Design and Technology

Technology • Based on New Web Application Framework (ABP)

• .Net 5
Enhancement
Improved • Domain Driven Design Layering Model.
• Standardised integration layer based on Web API
Architecture services.

Improved • Complete redesign of the data model to better enforce

the modular design architecture.
Design • More standardised consistent UI experience.

18
Scope of the Upgrade Project
User Perspective

Existing • Familiar Functionality Implemented with new UI Technology.

Modules
• Improved Usability

Enhanced • Additional Functionality Requested by Members

• Partial Matich of Sell Bids

Module (IDM)
• Additional functionality due to introduction of Balancing Market
• Transfer of untraded orders to the Balancing Market.

• Based on and consistent approach to ensure a quick and easy introduction.

New Modules • The BM was specifically designed to be similar to the IDM (other continuous market).
• The way instruments are defined
• Orders are entered, etc

19
The New MTP at a Glance
(Separate Presentation)
Technical test of accessibility for all participants
Verify that you can log into the system
These are the login credentials
Generic logins

} Use Google Crome web-browser

} Address: https://training.sappmtp.com/

} Users: Company Trader Users TSO Users TraderTso User Password

Eswatini
Electricity trader@eec tso@eec Sapp-2021
Company

ESKOM trader@eskom tso@eskom tradertso@eskom Sapp-2021

Lesotho
Electricity trader@lec tso@lec Sapp-2021
Corporation

22
Short coffee break
10 minutes
Changes to the Book of Rules and the effect on members
Briefly go through the main changes
Some more details on status of the Book of Rules
ü Discussed with SAPP MSC
ü Updates to the SAPP Market Book of Rules has been finalised and accepted by MANCO in March-2’ – this includes the
MTP upgrade changes (“IDM partial Sell Bid” rule change)
ü The plan was also to introduce the changes for Market Surveillance, but this is still subject to approval by the Members.

SAPP Book of Rules SAPP Book of Rules – Emergency procedure,

– main text NEW addendum on SAPP Energy Imbalance
BM Rules procedure

•Add new and update

definitions
•Add Balancing to the
following sections: 2.1,
2.4.4, 3.4, 3.9, 7.5
•NEW chapter between 6
and 7 to define the BM
•This will contain the main
detailed rules for the
Balancing market –
similar to what is there for
the current markets
(FPM, DAM and IDM)
•These needs to be
updated with the use of
the Balancing Market as
a tool for these two
topics.

Go through the actual Book of Rules provisions

BM Flow reporting and timings – some clarifications
Operationally, the Control Areas needs to schedule the interties and thereby needs this information as soon as
possible from the MTP (ideally a long-term solution is an integration with Scada-systems)

Current provision: Suggested change:

CHAPTER 7 BM TRADING RULES CHAPTER 7 BM TRADING RULES
SECTION 7.1 BM BALANCING ENERGY CONTRACTS
7.1.1 Hourly/Half-Hourly Contracts SECTION 7.1 BM BALANCING ENERGY CONTRACTS
(vi) Ex-post reports (flows) for BM shall be issued at 30 minutes 7.1.1 Hourly/Half-Hourly Contracts
into the hour as well as in the hour shift after the Balancing Hour
has been concluded as per SECTION 3.9 TRADING TIMELINES of (vi) Ex-post reports (flows) for BM shall be issued after each
these rules; acceptance of a Balancing Order to all affected TSOs and Control
Areas;

Currently, the Control Areas has 10 minute activation time for AS products – therefore we should have a gate closure
in BM to not have activations coming from BM ”interfering” with these timelines.

Current provision: Suggested change:

Addendum 4: BM TRADING RULES (Trading procedure) Addendum 4: BM TRADING RULES (Trading procedure)
• General activation and deactivation time is 15 minutes (defined as a • General activation and deactivation time is 15 minutes (defined as a
system parameter), but can be agreed by both parties to be shorter; system parameter), but can be agreed by both parties to be shorter;
• The Minimum Activation Time is set to 10 minutes;
Management of Transmission Capacity
Specific training for Controllers on this functionality
Management of Transmission Capacity

The effective management of Transmission Capacities is a critical

success factor for the operation of all markets.
In the case that we have several different markets, it is crucial that
this is done based on some sound principles
Management of transmission capacity - markets
The SAPP electricity market comprises of the following trading opportunities

} Bilateral Market - defined in SAPP as long term contracts of more than one month
duration that are negotiated between two parties
} OTC Market - defined in SAPP as short term contracts of not more than one month
duration that are negotiated between two parties
} Month Ahead Market - a competitive forward physical auction market where participants
trade predefined products (e.g. Off-Peak, Non-Off-Peak) on a month ahead basis.
} Week Ahead Market - a competitive forward physical auction market where participants
trade predefined products (e.g. Peak, Standard, Off-Peak) on a week ahead basis.
} Day Ahead Market - a competitive forward physical auction market where participants
trade hourly products on a day ahead basis.
} Intra Day Ahead Market - a competitive continuous market where participants trade
hourly products up to an hour ahead of the time when delivery starts
} Balancing Market – a competitive continuous market where participants can “activate”
hourly orders that are available in the market for any duration within the hour up to 10
minutes before delivery starts.
Management of Transmission Capacity

This is a key issue when introducing new markets on top of today’s.

An illustration of the allocation:

Future Market Bilateral FPM DAM Intraday/

Security margin
reservation contracts trading utilisation Balancing
(X% margin)
(D% reserved) (Y% available) (Z% available) (TCDAM) Mechanism

The management of this is part of the Book of Rules

Management of transmission capacity - principles
General guiding principles

} Encourages trade among SAPP members;

} Transmission asset owners are required to make available their transmission facilities
for trading by other SAPP members;

} Transmission capacities are maintained by SAPP, but each individual TSO is allowed
to adjust according to some guiding principles;

} Transmission asset owners shall have the full financial and physical rights to their
respective transmission facilities;

} Firm and non-firm power shall have the same meaning as in the SAPP governance
documents;

} Bilateral and OTC contracts are either Firm or Non-Firm;

} All competitive market transactions are Firm;

Management of transmission capacity (FPM Monthly)
Calculation rules for the Forward Physical Market - Monthly

} Managed on a per Product Basis

– E.g. Non Off-Peak, Off-Peak
– The calculated ATCFPMM should be based on the worst case hour.

} Total Transmission Capacity (TTCFPMM)

– This will be based on the minimum value for TTC per interconnector (in both directions) and will be
entered as one value per interconnection, product and direction.
– TSO’s are responsible to capture the values for interconnectors that originate from their area.

} Bilateral Contract Transmissions Capacity Reservation (BTCRFPMM)

– This will be based on the maximum value required for individual bilateral contracts and it will be entered
as one value per bilateral contract and product. This reservation will be using the path of the bilateral
contract.

} Future Market Transmissions Capacity Reservation (FMRFPMM)

– This will allow the market operator to reserve interconnection capacity (in both directions) for later market
timeframes (i.e. FPM-Weekly, DAM, IDM, BM) and will be entered as one value per interconnection and
product and direction.

} The ATC for the Monthly products will be calculated as (in both directions resulting in one
value for each of the monthly product(s)):
ATCFPMM = TTCFPMM – BTCRFPMM - FMRFPMM
Management of transmission capacity (FPM Weekly)
Calculation rules for the Forward Physical Market - Weekly

} Managed on a per Product Basis

– E.g. Non Off-Peak, Off-Peak
– The calculated ATCFPMM should be based on the worst case hour.

} Total Transmission Capacity (TTCFPMW)

– This will be based on the minimum value for TTC per interconnector (in both directions) and will be entered as
one value per interconnection, product and direction. The TTC from the monthly market will be used as the default
for the weekly market.

} Bilateral Contract Transmissions Capacity Reservation (BTCRFPMW)

– This will be based on the maximum value required for individual bilateral contracts and it will be entered as one
value per bilateral contract and product. This reservation will be using the path of the bilateral contract.

} Future Market Transmissions Capacity Reservation (FMRFPMW)

– This will allow the market operator to reserve interconnection capacity (in both directions) for later market
timeframes (meaning DAM and IDM) and will be entered as one value per interconnection and product and
direction.

} Monthly Market Allocated Product Flow (APFFPMM)

– This is the market flow from the Monthly market taken from the system.

} The ATC for the weekly products will be calculated as (in both directions resulting in one value for
each of the weekly product(s)):
ATCFPMW = TTCFPMW – BTCRFPMW – FMRFPMW – APFFPMM
Management of transmission capacity (DAM)
Calculation rules for the DAM

} Total Transmission Capacity (TTCDAM)

– This will be based on hourly values for TTC per interconnector (in both directions) and will be entered as
one value per interconnection, hour and direction. The TTC from the weekly market will be used as the
default for the day ahead market.

} Bilateral Contract Nominations (BCDAM)

– This will be the nominated value required for individual bilateral contracts and it will be entered as hourly
values per bilateral contract and product for the given delivery day. To resolve the use of the required of the
transmission capacities, it will be using the path of the bilateral contract.

} Future Market Transmissions Capacity Reservation (FMRDAM)

– This will allow the market operator to reserve interconnection capacity (in both directions) for later market
timeframes (meaning IDM) and will be entered as hourly values per interconnection and product and
direction.

} Allocated Monthly Market Flow (APFFPMM ) and Weekly Market Flow (APFFPMW)
– This is the market flow from the FPM Monthly and FPM Weekly market taken from the system.

} The ATC for the DAM will be calculated as (in both directions, hourly values for each
interconnection):
ATCDAM = TTCDAM – BCDAM – FMRDAM – APFFPMM – APFFPMW
Management of transmission capacity (IDM and BM)
Calculation rules for the IDM (and Balancing)

} ATCDAM
– This will the ATC that was given to the DAM based on the previous calculated values.

} DAM Flows
– This is the market flow from DAM taken from the system.

} The ATC for the IDM will initially be calculated as (in both directions, hourly values for each
interconnection):
ATCIDM = ATCDAM – DAM Flows

The ATC for the IDM can be maintained by the SAPP CC (on behalf of the TSO) in three main
situations:

Ø Any change to firm and non-firm bilateral contracts needs to adjust the IDM ATC
Ø Emergency situations – where the interconnection capacity on one or more interconnections needs to be
reduced - can be done at any time when the emergency happens
Ø Adding of transmission capacity for one or more interconnections – this can only be done during the
hourly shift to give all members equal access to the new capacity.
Example of what we mean by this
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100

80

60
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Market FPM-M FPM-W DAM IDM
Date March March-W2 March-W2-Mon
Total Transmission Capacity 50 75 100
BC reservation/nomination 10 10 10
Future Market Reservation 25 35 0
Allocated Market Flow 0 10 25
Available Transmission Capacity 15 20 65 15
Trade in market 10 15 50
36
SAPP Market area model

DRC
TAN
SNEL
Tanesco

ANG
ENE
ZAMZ ZAMC MAL
ZESCO ZESCO ESCOM

SAPP Area Model

ZIM MOZN MOZN
Power line for open for DAM
ZESA HCB EDM
Power line not built
Eskom internal power line

NAM
ZIMA MOZS
NamPower
EDM

BOT
BPC

RSAS RSAN SWA

Eskom Eskom SEC

LES 37
LEC
SAPP MTP Simplified Data Model – TX Network Model

INTER
COUNTRY AREA
CONNECTIONS

TSO
Capturing of Total Transmission Capacity (TTC) and Bilateral
Contract Reservations (BCR)
Capturing of TTC & BCR in the context of the Auction Market
Clearing Process Action Market Clearing Process Steps

} The Auction Market Clearing Process is dependent on the

TTC, FMR and BCR to be captured before the respective
“Closing Time”
} Checks are performed to ensure that all values has been
captured before the process can proceed to calculate the
Available Transmission Capacity.
} Users with the following roles are responsible for the
respective capacities:
– TTC: Transmission System Operator (TSO)
Responsible for the Area.
– FMR: Market Operator (TPA)
– BCR: Bilateral Contract Nominator (BN) from the sellers
company.

40
SAPP MTP Screens – Capturing TTC’s

Go through the system showing the following “TTC” screens:

} FPM Monthly

} FPM Weekly

} DAM
Capturing of TTC (FPM - Monthly)

This is the screen where the Total

Transmission capacity is entered
(TTC).
A number of options are provided
for copying and pasting data.

42
Capturing of TTC (FPM - Weekly)

This is the screen where the Total

Transmission capacity is entered
(TTC).
A number of options are provided
for copying and pasting data.

43
Capturing of TTC (DAM)

This is the screen where the Total

Transmission capacity is entered
(TTC).
A number of options are provided
for copying and pasting data.

44
SAPP MTP Simplified Data Model – Bilateral Contracts

BILATERAL BUYER
CONTRACT COMPANY

SELLER
USERS
COMPANY
SUPPLYPATH

BILATERAL
NOMINATOR
INTER ROLE
CONNECTIONS
Edit bilateral contract (THIS IS ONLY FOR SAPP TO REGISTER)

This is the detailed contract

definition. You will have to ensure
that you have the correct supply
path defined before. It is also
important to note the user of the
“active” flag which which can be
used to define a contract into the
future without it showing up in all
drop-downs
SAPP MTP Screens – Capturing BCR’s

Go through the system showing the following “BCR” screens:

} FPM Monthly

} FPM Weekly

} DAM
Capturing of BCR (FPM - Monthly)

This screen allows you to enter the

values for the bilateral contract. It
has several options for copying.

48
Capturing of BCR (FPM - Weekly)

This screen allows you to enter the

values for the bilateral contract. It
has several options for copying.

49
Capturing of BCR (DAM)

This screen allows you to enter the

values for the bilateral contract. It
has several options for copying.

50
Lunch break
30 minutes
Detailed presentation & demonstration of new features in IDM
Partial
Matching of
Sell Orders
Partial Matching of Sell Orders
Requirement

NEXTEC ESA was requested by the SAPP CC to investigate the feasibility of allowing partial matches on
IDM sell bids, similarly to what is currently allowed for buy bids.

The reason why partial matching of a sell bid is not currently allowed is because it is assumed that sellers
may have generation constraints and when they offer a sell quantity to the IDM market, they need to be
guaranteed of selling the full quantity.

This is currently enforced by the matching rules.

Partial Matching of Sell Orders
Implementation

From an implementation perspective the following will be required:

• When adding a bid, the seller need to be able to over and above the "total" Sell Quantity also indicate
its minimum Sell Quantity.

• Potential buyers need to be able to see what the minimum Sell Quantity is for a sell bid.

• The matching engine will need to take the minimum Sell Quantity into account when applying the
matching rules.

• If a partial match on a Sell Quantity is achieved, the remaining Sell Quantity should be automatically
added as new sell order in the same way it is currently done for a partial match on a Buy Quantity.
• The Sell bid that is automatically added for the remaining Quantity of the original Sell bid, will be
added with a minimum Sell Quantity equal to the minimum bid quantity increment.
Partial Matching of Sell Orders
UI for adding orders
Current UI New UI
Partial Patching of Sell Orders
Example

A Sell bid for 50MW currently effectively has a minimum sell quantity constraint of 50MW ( equal to the sell bid) associated to it.

The proposal is to allow the bidder to explicitly specify a minimum sell quantity constraint, E.g. A Sell bid for 50MW can be
entered with minimum sell quantity constraint of 10MW.

Note: When entering the sell bid the following constraints would apply:

Minimum Sell Quantity <= the Sell Quantity

Minimum Sell Quantity >= minimum bid quantity increment

The following matching rule change is implied:

Buy Quantity >= Sell Quantity
rule will change to
Buy Quantity >= Minimum Sell Quantity

In the case of a partial match the remaining sell quantity will be automatically added as a new Sell bid with
a) The same price
b) The remaining quantity
c) A min Sell quantity constraint = bid quantity increment (once the initial sell quantity has been met any additional quantity can
be accepted by the seller)
Summary of
Matching
Rules
Matching Rules
Background

• Orders in the IDM is submitted for a particular instrument.

• In the case of the IDM currently an instrument equites to an hourly interval

Matching Rules
IDM Orders Properties

• IDM orders are submitted per instrument and included the following properties that are relevant to the
matching rules.
• Order Price (USD/MWh): The price at which the participant is willing to trade (buy or sell)
electricity
• Order Quantity (MW): The full capacity that the participant has available to traded for the duration
of the instrument at the Order Price.
• Minimum Tradeable Quantity (MW): The smallest capacity that the participant is willing to accept
for an initial partial trade of the order.
Matching Rules
Summary of Matching Logic

A buy and a sell order are matched on a per instrument bases to conclude a trade based on the following
matching rules:
[BuyOrderPrice >= SellOrderPrice]: The buyer should be willing to pay at least the asking price of the seller.

[BuyOrderVolume >= SellMinTradeableVolume]: The buyer should be willing to buy at least the smallest
capacity that seller is willing to accept for a partial traded.

[SellertoBuyerTXPathATC >= SellMinTradeableVolume]: The Available Transmission Capacity (ATC) for any
TX path that can transport electricity from the Seller's Area (Origin Area) to the Buyers Ares (Destination Area)
should be able to transfer at least the the smallest capacity that seller is willing to accept for a partial traded.

[SellOrderVolume >= BuyMinTradeableVolume]: The seller should be willing to buy at least the smallest
capacity that buyer is willing to accept for a partial traded.

[SellertoBuyerTXPathATC >= BuyMinTradeableVolume]: The Available Transmission Capacity (ATC) for any
TX path that can transport electricity from the Seller's Area (Origin Area) to the Buyers Ares (Destination Area)
should be able to transfer at least the the smallest capacity that buyer is willing to accept for a partial traded.
In the event that more than one match is possible, the trade should be concluded for the highest ranking match.
Matching Rules
Ranking of Matched Orders

Matched orders are ranked based on the following criteria:

• Tradeable Volume, high to low: Higher volumes should be traded in favour of lower volumes.

• BuyOrderPrice, High to Low: The buy order that offered the highest price.

• BuyOrderCreationTime, First to Last: The buy order that was entered first.

• SellOrderPrice, Low to High: The sell order that offered the lowest price.

• SellOrderCreationTime, First to Last: The sell order that was entered first.

• NoOfTxInterconnections, Low to High: The TX path with the lowest number of Interconnections is
preferred.
Hitting of
Orders
Hitting of Orders
Introduction

A trader is able to "Hit" any order that is available for delivery to (sell order) or from (buy order) the area
associated to the selected portfolio. All such order items are listed in the Market Information grid of the
order UI.

The following actions are performed by the back-end to process a hit:

• Add Counter Order Item: An order item equal to but opposite to the one that was hit are added to the
"hitting" portfolio for the same instrument as the one that was hit.
• E.g. if a buy order item of 50 MW @ 100 USD/MWh was hit the counter order item is a sell order
of -50 MW @ 100 USD/WMh.

• Reduce Existing Order Item(s) of the same type as the Counter Order Item: Order Item(s) of the
same type as the counter order should be reduced by the volume of electricity that was traded. This
process is described in more detail in the following slides.
Hitting of Orders
Reduce Existing Order Items of the same type as the Counter Order

If the hitting portfolio had order items in the market of the same type and for the same instrument as the
counter order that was added as a result of the hit, those existing order items did not result in a trade for
one of the following reasons:

It did not meet the price of the order item that was hit.

It did not meet the minimum tradeable quantity of the order item that was hit.

Since the volume requirement of these order item(s) has however been met when the hit was exercised,
the volume equivalent to the order item that was hit should therefore be removed from the order book of
the hitting party. The order items need to be "removed" consistent with the principles stipulated below.
Hitting of Orders
Principles for reducing existing order items

• The best order items should be reduced first:

• For buy orders the best order equates to the order with the highest price
• For sell orders the order with the lowest prices.

Order items should be reduced in full or partially until the combined volume of reduced order items is
equal to the volume of the counter order item OR there are no remaining order items left that can be
reduced.
Summary and Q&A
Discussion
&
Questions

68
Hans-Arild Bredesen Kobus van Tonder Thank you
CEO Nord Pool Consulting NEXTEC/Enerweb

nordpoolgroup.com