18.10.2021 14:14
Current News, Electricity Market

Intraday market trading for congestion management during faults - comment pilot before 31.10.

Fingrid is considering piloting with intraday market trading to perform the congestion management measures required by cross-border interconnector faults. In addition to strengthening the transmission network, the ongoing energy revolution requires the development of methods how different parties use of the electricity system and the electricity markets. The increases in the volume of electricity transmission, transmission peaks and needed congestion management measures challenge the operation of the grid and the electricity markets. Congestion management must be carried out in a secure manner and with the most equitable, transparent, and cost-effective operating models possible. The planned pilot does not impact the principles for capacity allocation to electricity markets and does not require system changes from Fingrid's or power exchange's customers. Fingrid asks its stakeholders for comments before 31.10. prior to the starting of the pilot.

In the event of a disruption in the electricity network, Fingrid complete countertrades to maintain security of supply and to guarantee cross-border market transfers that have already been nominated*). Currently, commercial countertrades are procured from the balancing electricity market as special regulations and between Fingrid and market participants as fixed trades.

In the planned pilot model, Fingrid can perform cross-border transmission management with intraday market trading for the coming operational hours and guarantee cross-border market transfers that have already taken place. In the planned pilot model, the loss of an importing cross-border connection is corrected for future hours by the transmission system operator's purchases from the intraday market and the regional surplus resulting from the loss of the exporting connection is corrected with intraday market sales.

As is the case today, the amount of adjustment to be traded during the pilot period is the difference between the amount of guaranteed market transfers before the disruption of the cross-border transmission link and the amount of transmission capacity updated after the disruption. In this way, the physical amount of electricity transmission is adjusted to match the updated transmission capacity.

Intraday market countertrades may be carried out during the pilot period for the management of interconnector disruptions, once the intraday market is open and no later than one hour before the delivery period. In the presented pilot model, Fingrid solves the congestion management needs during delivery with the existing operating models, i.e. special regulation from the balancing electricity market and competitive bilateral trades.

When piloting, Fingrid does not commit to procure the entire amount from the intraday market, and may procure the necessary remedial actions also from the balancing electricity market or through competitive bilateral trades. The planned pilot does not impact the principles for capacity allocation to electricity markets and does not require system changes from Fingrid's or power exchange's customers as procurement for congestion management in the pilot model happens the same way as other intraday market trading.

Pilot period and stakeholder feedback regarding the pilot

The duration of the proposed pilot is 12 months, and the pilot is considered to have started when Fingrid has heard feedback from stakeholders regarding the pilot and that the necessary system changes at Fingrid have been implemented. Fingrid plans to announce the launch of the pilot with a separate market message in the NUCS service.

Fingrid plans to evaluate the success of the pilot on the basis of, among other things, security of supply, customer satisfaction, the usability of the pilot model and balance deviations. Based on the pilot's results, Fingrid will assess whether intraday market trading can be used for transmission management after the pilot period. Other European transmission system operators also use or plan to pilot the application of intraday trading in transmission management. The results of the presented pilot are planned to be used as part of a joint study of the Nordic transmission system operators.

Fingrid reserves the right not to pilot if the model is opposed by Fingrid's stakeholders. Fingrid reserves the right to suspend the pilot in the unlikely event that the pilot adversely affects operational safety.

Fingrid asks its stakeholders for comments before 31.10. The comments can be sent to Juha Hiekkala, address below. 

Additional information and feedback on the pilot:

Juha Hiekkala, Fingrid Oyj, tel. +358 30 395 5108
Our e-mail addresses are in the format firstname.lastname (at) fingrid.fi.


*) Countertrades and congestion management

Countertrades are special commercial adjustments made to the transmission management of the electricity system. Special regulations resolve network bottlenecks that can limit the transmission of electricity within the Finnish grid or between Fingrid and the grids of neighboring countries. Countertrades change the regional distribution of electricity production or consumption on both sides of the network component that is limiting electricity transmission. Fingrid guarantees the cross-border market transfers it has already been confirmed.

At present, commercial countertrades used to manage interruptions of cross-border transmission connections are ordered from the control electricity market maintained by the transmission system operators in the form of special regulations or competitive bilateral transactions between Fingrid and market participants. The costs of countertrades are covered by grid tariffs and congestion income. The pilot model refers to the application of intraday market trading to cross-border transfer management in addition to the countertrading models described above.