News Alert Balancing Market

Order no. 33 of 30 August 2012 regarding certain rules on the balancing market applicable to the production of electricity which benefit of the support scheme, issued by the National Energy Regulatory Authority (“Order no. 33”) was published with the Official Gazette on 4 September 2012. It replaces Order no. 33/2006 regarding the rules of offering on the balance market issued by the same authority.

Order no. 33 is aimed at improving the balancing market mechanism and reducing imbalances between the agreements concluded on the market and the actual registered consumption.

Order  33/2012  has  already  entered  into  force;  however,  the  actual  implementation  of  its  provisions  by  Transelectrica  is  expected  to  complete  within  3  months  as  of  the publication of the order in the Official Gazette.

This news alert is a high level selection of main changes envisaged; it is aimed for general information only and is not intended to provide legal advice.

Provisions of ANRE Order 33/2006

Provisions of ANRE Order 33/2012

Daily offer minimum price for the energy available on the balancing market

  
 
Not regulated under the Order

The Order refers specifically to dispatchable wind power plants (DWPP) and other renewable power plants, such as photovoltaic power plants (PhPP).

The  daily  offer  for  the  available  balancing  power  for  producers  holding  DWPP  shall  have  a minimum price of 0.1 RON/ MWh.

The same price shall apply for PhPP, hydro power plants (declared of high hydraulicity), nuclear plants (in operation as of the entry into force of the Order) or the electricity produced in high efficiency cogeneration plants.

For the electricity produced from renewable sources, others than those mentioned above, the minimum price shall be of 5 RON/MWh; and

For the electricity produced from all other sources (conventional sources), the minimum price shall be of 10 RON/MWh.

Provisions of ANRE Order 33/2006

Provisions of ANRE Order 33/2012

Limitation of the prices for the daily offer on the Balance Market

Limited as follows:

–            the balance between the highest price of a daily offer and the lowest price of a daily offer during the same delivery date, for each dispatchable unit / consumer is of maximum 100 RON / MWh; and

–            the highest price of a daily offer on the balancing market corresponding to the reserve upward (in Romanian, “reglaj de crestere de putere”) is limited (capped) to 400 RON / MWh, per dispatch interval.

No specific provisions regarding renewable capacities.

Limited as follows:

–  the balance between the highest price of the daily offer and the lowest price of the daily offer during the same delivery day is of maximum 150 RON / MWh, except for dispatchable units which produce electricity in high efficiency cogeneration; and

– the highest price of the daily offer on the balancing market, corresponding to the reserve upward (in Romanian, “reglaj de crestere de putere”) is limited (capped) to 450 RON / MWh, per dispatch interval.

In case within an interval of three (3) months, a producer has realized more than 40% of the transactions volume on a reserve type, the balancing market operator publishes, on its website, within 30 days as of the end of the interval, the offers and transaction of the relevant producer and continues to publish the offers and transaction of that producer for 3 months until the volume of the transactions realized by the said producer falls below 40% of the overall transaction volume for the relevant reserve type.

Output reduction. Merit order

Not regulated under the Order.

The output reduction is ordered based on the merit order on the balancing market subject to the following rules (and subject to the appropriate adequacy and safety level of the National Power System):

i.       after   exhausting   all   technical   possibilities   for   the   reduction   of   the   non-renewable dispatchable  units  offered  at  a  price  higher  or  equal  to  the  minimum  price  referred above (thermo dispatchable units are, typically, reduced to minimum or powered down if  possible),  the  balancing  market  operator  reduces  the  DWPP  and  PhPP  the  actual output  of  which  exceeds  the  physically  notified  output  (pro  rata  with  the  installed capacity,  in  20%  stages,  rounded  out  to  the  nearest  10  MW  multiple,  down  to  the

 

Provisions of ANRE Order 33/2006Provisions of ANRE Order 33/2012

notified output, where the last stage may be less than 10 MW);

ii.             subsequently, the balancing market operator orders the reduction of renewable dispatchable units, other than DWPP, PhPP, hydro power plants (declared of high hydraulicity), nuclear plants (in operation as of the entry into force of the Order) which have been offered at the minimum price referred above;

iii.          last, the balancing market operator orders the reduction of DWPP, PhPP, hydro power plants (declared of high hydraulicity), nuclear plants (in operation as of the entry into force of the Order) which have been offered at the minimum price referred above.

In  each  case,  within  the  same  price  category,  the  reduction  is  ordered  pro  rata  with  the installed power of each dispatchable unit, in stages of 20% of the installed power, rounded off to a multiple of 10 MW, down to being powered down, where the last stage may be less than 10 MW.

This information is not legal assistance. For further details, please contact us. 

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