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 33/2006 | Provisions 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.