ENTSOG Implementation and Monitoring Report 2017 - Balancing Network Code

3 Conclusion

In 16 countries (AT, BE/LU, CZ, DE, DK, ES, FR, HR, HU, IT, LT, NL, PL, SI and UK-GB), TSOs rely mainly or exclusively on title products for their balancing actions. Portugal, Estonia and 7 countries of cluster 2019 (BG, EL, IE, LV, SE, RO and UK-NI) use only balancing services whereas Slovakia use only balancing platform. This analysis has to be taken with caution for Portugal, Latvia, Romania and Slovakia, since in these balancing zones, TSOs have taken only a few balancing actions during the year (for 7 days or less).

In order to reduce its residual balancing role, a TSO should reduce the daily volume traded and/ or the number of days it is taking balancing ac- tions during the year. What will be interesting to follow is the yearly evolution for a given balanc- ing zone since some intrinsic features of each network will make comparison among balancing zones tricky to interpret. For this edition, we could only compare to last year the data of cluster 2015 and some coun- tries of cluster 2019. Countries with WDOs (AT, BE/LU, NL) still have the lowest residual balanc- ing role even if the balancing volumes have in- creased for BE/LU-H and NL. HU and UK-GB are in the same range. The other balancing zones of cluster 2015 except PEG Nord (DK, TRS, Gaspool, NCG and SI) shows decreases in volume and/or number of days. Germany still has the highest residual balancing role, due to their model: TSOs have to take into account gas quality conversion and the handling of NDM off- take volumes in addition to shipper imbalance volumes.

For the cluster 2019 when we were able to cal- culate an evolution, we have seen than LT, SE, IE, UK-NI and PL-H have reduced their daily traded volume and/or the number of trading/ balancing days. Only the Greek figures are in- creasing. Cluster 2016 countries show a similar behavior as cluster 2015 countries which do not have WDOs in place. A correlation between daily shipper imbalances and the behavior of the TSO is visible. TSO ac- tions are smaller in volume and in occurrence since they are able to handle some imbalances in their system before having to take balancing actions. A new indicator BAL.5 present the real cost of being balanced by the TSO for some balancing zones. This real cost is slightly greater than the small adjustment. It is on purpose in order to incentive the shippers to balance themselves. Indeed, it will risky for them to take the small adjustment as a proxy of the cost of being balanced by the TSOs in their arbitrage/risk analysis. The report also presents a synthetic indicator: the yearly volume for balancing actions.

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