ENTSOG TYNDP 2017 - Annex F - Methodology

TYNDP 2017 Annex F Assessment Methodology

TYNDP 2017 Annex F Assessment Methodology

6.3 MONETISATION PER ZONE –

MIN/MAX SUPPLY PRICE CONFIGURATIONS

The monetisation per Zone for the min/max supply price configuration is produced relatively to the “Balanced” configuration. Monetisation per Zone – Min/Max Supply Price Configurations 6.3. The monetisation per Zone for the min/max supply price configuration is produced relatively to the “Balanced” configuration. Basic principle In a supply maximisation c figuration (supply cheap) the EU bill difference is split per Zone based on the SSPDi weighted by demand. In a supply minimisation configuration (supply expensive) th EU bill difference is split per Zone based on the CSSD weighted by demand. 8 Detailed process In the following, “indicator” will mean either CSSD or SSPDi, depending on the configuration. The word “Standardised Spread” will mean the value by which the standardised price curves were moved in the min/max supply price configurations. In the TYNDP 2017, the Standardised Spread is 5 EUR/MWh.  For each Zone, compute indicator*demand (Labelled afterwards as “Zone Key Split 1”)  Compute the sum of the previous quantities (Labelled afterwards as “Total Key Split 1”) Zone allocated bill difference = EU Bill Difference ∗ Zone Key Split1 Total Key Split1  For each Zone, compute the equivalent spread in price Zone equivalent price spread = Zone allocated bill difference Zone demand Monetisation p r Zone – Min/Max Supply Price Configurations 6.3. Th monetisation p r Zone for the min/max supply price configuration is produced rela ively to the “Balanced” configuration. Basic principle In a supply m ximisation configuration (supply cheap) the EU bill difference is split per Zone based on the SSPDi weighted by demand. In a upply minimisation c figuration (sup ly expensive) the EU bill difference is split p r Zone based on the CSSD weighted by demand. 8 Detailed proc ss In the following, “indicator” will mean either CS D or SSPDi, epending on the configuration. The word “Standardis d Spread” will mean th value by w ich the standardised pric curves wer moved in the min/max supply price configurations. In the TYNDP 2017, the Standardised Spread is 5 EUR/MW . Step 1: Allocation based on indicator*demand  For each Z ne, compute indicator*dem nd (Labell d fterwards as “Zone Key Split 1”)  Compute the sum of the previous quantities (Labell d fterwards as “Total Key Split 1”) Zone allocate bill diff rence = EU Bill Diff rence ∗ Zone Key Split1 Total Key Split1  For each Z ne, comput th equivalent spread in price Zone equivalent price spread = Zone allocate bill diff rence Zone demand TYNDP 2017 Annex F Assessment Methodology  For each Zone, compute the maximum allowed spread (Labelled afterwards as one ax Spread”) Zone Max Spread = indicator ∗ Standardised Spread  For each Zone, compute the spread for Step1 (Labelled afterwards as “Zone Spread 1”) Zone Spread 1 = Minimum(Zone equiv lent price spread, Zone Max Spread) TYNDP 2017 Annex F Assessment Methodology  For each Zone, co pute the axi u allowed spread (Labelled afterwards as “Zone ax Spread”) Zone ax Spread indicator ∗ Standardised Spread  For each Zone, co pute the spread for Step1 (Labelled afterwards as “Zone Spread 1”) Zone Spread 1 ini u (Zone equivalent price spread, Zone ax Spread) TY P 2017 Annex F Assessment Methodology  For each Zon , c m t t m xim m ll s r (L ll ft r r s s “Zone Max Spread”) M r = i ic t r t r is r ad  For each Zone, compute the spread for Step1 (Labell ft r r s s “ S r ”) pread 1 = Minimum(Zone equival t ric s read, Zone Max Spread)  For eac , c t t c rr ct ll c t ill iff re c ill iff r c t r  C t t s f t previous titi s (L ll ft r r s “ ill iff r c ll c t ”)  Compute the unallocated part of the EUBill (L ll ft r r s s “ ill iff r c ll c t d ”) ill iff r c lloc t = ill iff r c − ill iffer c ll c t t 2: Allocation f t ll c t rt s ( -i ic t r) TYNDP 2017 Annex F Assessment Methodology  F r each Zon , compute the maximum allowed spread (Labelled afterwards as “Zone Max Spread”) Zone Max Spread = indicator ∗ Standardised Spread  For each Zone, compute the spread for Step1 (Labelled afterwards as “Zone Spread 1”) Zone Spread 1 = Minimum(Zone equivalent price spread, Zone Max Spread)  For each Zone, compute the corrected allocated bill difference Zone bill difference Step1 = ZoneSpread1 ∗ Demand  Compute the sum of the previous quantities (Labelled afterwards as “ EU Bill Difference Allocated ”)  Compute the unallocated part of the EUBill (Lab lled afterwards as “ EU Bill Difference Unallocated ”) EU Bill Difference Unallocated = E Bi l Diff rence − EU Bill Difference Allocated Step 2: Allocation of the unallocated part based on (1-indicator)*demand Basic principle In a supply maximisation configuration (supply cheap) the EU bill difference is split per Zone based on the SSPDi weighted by demand. In a supply minimisation configuration (supply expensive) the EU bill difference is split per Zone based on the CSSD weighted by demand. 1) Detailed process In the following, “indicator” will mean either CSSD or SSPDi, depending on the con- figuration. The word “Standardised Spread” will mean the value by which the stand- ardised price curves were moved in the min/max supply price configurations. In the TYNDP 2017, the Standardised Spread is 5€/MWh. Step 1: Allocation based on indicator*demand \\ For each Zone, compute indicator*demand (Labelled afterwards as “Zone Key Split 1”) \\ Compute the sum of the previous quantities (Labelled afterwards as “Total Key Split 1”) \\ For each Zone, compute the allocated bill difference \\ For each Zone, compute the equivalent spread in price \\ For each Zone, compute the maximum allowed spread (Labelled afterwards as “Zone Max Spread”) 8 Out of the two supply dependence indicator, the CSSD has been chosen over the SSPDe because, even though they are highly correlated, the CSSD is more straightforward to apprehend by stakeholders. 8 Out of the two su ply dep ndence indicator, the CSSD has been chosen over th SSPDe because, even though they are highly correlated, the CSSD i more straightforward to apprehend by stakeholders. \\ For each Zone, compute the spread for Step1 (Labelled afterwards as “Zone Spread 1”) \\ For each Zone, compute the corrected allocated bill difference  For each Zone, compute the corrected allocated bill difference Zone bill difference Step1 = ZoneSpread1 ∗ Dem nd  Compute the sum of the previous quantities (Labelled afterwards as “ EU Bill Difference Allocated ”)  Compute the unallocated part of the EUBill (Labelled afterwards as “ EU Bill Difference Unallocated ”) EU Bill Difference Unallocated = EU Bill Difference − EU Bill Difference Allocated Step 2: Allocation of the unallocated part based on (1-indicator)*demand  For each Zone, compute (1-indicator)*demand (Labelled afterwards as “Zone Key Split 2”)  Compute the sum of the previous quantities (Labelled afterwards as “Total Key Split 2”)  For each Zone, compute the corrected allocated bill difference Zone bill difference Step1 = ZoneSpread1 ∗ Demand  C mpute the sum of the previous quantities (Labelled afterwards as “ EU Bill Difference Allocated ”)  Co pute th unallocated part of the EUBill (Labelled afterwards as “ EU Bill Difference Unallocated ”) EU Bill Difference Unallocated EU Bill Difference EU Bill Difference Allocated Step 2: Allocation of the unallocated part based on (1-indicator)*demand  For each Zone, co pute (1-indicator)*de and (Labelled afterwards as “Zone Key Split 2”)  Co pute the su of the previous quantities (Labelled afterwards as “Total Key Split 2”)  For each Zone, compute (1-indicator)*demand (Labelled afterwards as “ y Split 2”)  Compute t s m f t r vi s titi s (L ll ft r r s s “ t l y S lit 2”)  For each Zone, compute (1-indicator)*demand (Labelled afterwards as “Zone Key Split 2”)  Compute the sum of the previous quantities (Labelled afterwards as “Total Key Split 2”) \\ Compute the sum of the previous quantities (Labelled afterwards as “EU Bill Difference Allocated”) \\ Compute the unallocated part of the EUBill (Labelled afterwards as “EU Bill Difference Unallocated”) 1) Out of the two supply dependence indicator, the CSSD has been chosen over the SSPDe because, even though they are highly correlated, the CSSD is more straightforward to apprehend by stakeholders. Page 28 of 31 Step 1: Allocation based on indicator*demand Page 28 of 31

Ten-Year Network Development Plan 2017 Annex F: Methodology | 23

   