Download NETA - How will it effect you?

Renewable & CHP Generators
: A suppliers perspective
Presentation
by
Steve Armitage
Tel. 0113 289 5369
e-mail: [email protected]
Agenda - large generators
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NETA Objectives
NETA to date
Supplier issues
How you can help?
Trading Options
Renewable Generators
Energy Management Centre
Summary
NETA Objectives
• Meet the needs of the customer with
respect to price, choice, quality and
security of supply
• Enable the demand to be met efficiently
and economically
• Enable costs and risks to be reduced
and shared efficiently
• Promote competition in energy markets
NETA to date
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Imbalance prices volatility
Extreme system buy/sell prices
High imbalance surplus
PX & Balancing Mechanism prices
difficult to predict
• Market prices increasing
• Limited demand side participation
• Lights still on!
Supplier issues
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NETA penalises Imbalance
Costs higher than anticipated
Imbalance surplus
Lack of GSP Demand limits no. of
trading partners
• Unable to unlock CCL value
• Renewable obligation
• Complex trading arrangements
How you can help?
• Be clear as to what you want
• Be clear as to plant capability
• Collate & share historic data:
– Site details, MPAN, voltage, hh profile
• Provide generation forecasts (&
deviation from)
• Estimate variation from generation
forecasts
Trading Options
• Peaking, Standby, Base load or spill CHP,
Renewable
• Trading Options:
– Independent Trading
– Trading through others
– Non Party Generation (SVA)
• Contract duration
Trading Options
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SVA - Fixed Prices, Variable Prices
CVA - Fixed Prices, Variable Prices, Trading
Participation in balancing mechanism/PX
Optionality
Expect
– low prices for un-predictability
– imbalance pass through
• Ancillary Services
• Supply
Renewable Generators
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Market short - targets high
Predictable/flexible
Imbalance still an issue
Notify non generation in advance
ROC
Trade ROC in addition to energy
Long term contracts available
Ancillary Services
• Balancing Ancillary Services
– “Insurance Policies” to assist NGC in
balancing the Grid in real-time
• Standing or “Fast” Reserve
• Frequency Response
• Others: warming contracts (contingency
reserve), voltage constraints, reactive
power
Energy Management Centre
Primary role to Balance parties energy position
Services on offer:
• Registration of BM Units
• Submission of Final Physical Notifications (FPN’s)
• Submission of bids & offers into the Power
Exchange &
Balancing Mechanism
• Facilitate NGC Ancillary Services
• Posting of ECVN’s & MVRN’s
• Gas - Trading & Optimisation
Summary
• Losers?
– Unpredictable/inflexible generators?
– Base load generation?
• Winners?
– Flexible Users
– Risk takers
• Meeting the challenge