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Update on Interconnector Under Test Modifications - TSC Meeting December 5, 2012

This document outlines developments concerning the modifications to interconnectors under test as discussed in the TSC meeting on December 5, 2012. Following initial discussions of Mod 10.11, three implementation options were assessed, with Option 1 recommended for approval due to time constraints related to intraday releases. Various issues with Option 1 were identified, leading to the recommendation that total capacity (ATC) be set to zero during testing to ensure fairness and operational integrity. This approach can be implemented immediately without further modifications to the Trading and Settlement Code.

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Update on Interconnector Under Test Modifications - TSC Meeting December 5, 2012

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  1. Interconnector Under Test Update to TSC Modifications Committee 5th December 2012

  2. Background • Mod10 11 raised on 22nd March 2011 • Testing Tariffs to apply for Commissioning, Grid Code Compliance or otherwise • Meeting 35 • Deferred pending a SEMO Impact Assessment • Meeting 36 • 3 Options presented • Option 1 was Recommended for Approval • RA Approval • Letter issued 21st July 2011

  3. Mod 10 11 Implementation Options FRR dated 28 June 2011 set out the implementation options: • Option 1 - Market require a facility to designate an Interconnector as Under Test in settlement for a range of trading dates. • Option 2 - Restriction for submitting bids (definition for a range of testing dates in MPI) • Option 3 –Inclusion of an Interconnector Unit test profile. This relates to an agreed testing profile between the IA and the SO.

  4. SEMO Assessment Summary

  5. Modifications Committee Views • The Committee agreed that Option 1 should be pursued due to the timelines for Intraday Release and EWIC deployment. • A full solution including Options 1, 2 and 3 was preferable due to uninstructed imbalances arising while under test and restricted bidding. • In the FRR, the SOs stated that a Modification to Appendix E would be required for Option 3 to be implemented and the SOs would consider raising this Modification in due course.

  6. Mod 10 11 Implementation • Mod 10 11 (Option 1) implementation date in the CMS was November 2012 release • Mod 33 11 allowed SEMO to perform workaround to manually apply the Testing Tariffs as per Option 1 from the date of EWIC Commissioning (i.e. July 2012) • The T&SC was updated to allow Interconnectors Under Test with an effective date for July 2012.

  7. Issues with Option 1 • Not appropriate for Operational Interconnectors • i.e. Not suitable for Interconnector which goes on/off test • No ability to block bids and offers • Interconnector participants can submit bids/offers even if Interconnector is under test • No provision available for test profiles • RA approval required to set DOG and PUG to zero as Interconnector would be unfairly penalised Cost of Options 2 and 3 to implement • New vendor quote received for revised design for Options 2 and 3 is now €307k compared with €504k • Investigated alternate approach

  8. TSOs Recommendation • Set ATC to zero when an Interconnector is testing • IUN/MIUNs will be zero for Interconnector Users and their bids will not be taken into consideration • DOG and PUG will need to be set to zero on an annual basis i.e. TSOs will recommend through annual consultation process for RA approval • Can be implemented immediately • No further modification to the T&SC is therefore recommended in respect of Interconnector Under Test

  9. Thank You

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