The way electricity is traded across the 2,000 MW electricity interconnector between the UK and France, the Interconnexion France Angleterre (IFA), has undergone its biggest change today since capacity on the link was opened up to the market in 2001. The launch of a new Capacity Management System by the owners of the interconnector, British and French transmission companies National Grid and RTE, has been completed bringing significant benefits to users of the link and ensuring compliance with EU Congestion Management Guidelines.
Enhancements include:
- New auctions selling within day capacity for the first time offering customers even more choice and flexibility. Initially two Intraday auctions will be held each day alongside the existing product range from daily to annual capacity.
- Transparency of capacity being offered to the market in each auction, giving much more visibility for other market players who are not interconnector users. Auction data and results are now published via CMS, links can be found via the IFA website at http://www.nationalgrid.com/uk/Interconnectors/France/Auctions/.
- Users of the free to use www.etsovista.org portal for the European power market will be able to see IFA data for the first time
- The system will enable unwanted capacity to be resold through a “use it or sell it” system and will also facilitate secondary trading, all on an hourly basis close to real-time.
- The system will also enable extra capacity to be offered to users by a new process called ‘netting’. Currently all user nominations in both directions yield a net flow in one direction across the link which means there is still headroom available. For example 1,000 MW of aggregate nominations from customers in one direction across the link will allow 3,000 MW to be re-offered in the reverse direction, while still keeping within the 2,000 MW physical capability of the link. In this way, the interconnector can be more fully utilised when customers are seeking to flow electricity in different directions or when responding to short term market changes.
Unicorn, an IT company with a strong track record in commercial cross-border systems, will administer the auctions and operate a round-the-clock customer help desk on behalf of National Grid and RTE.
The new system is only one of the means by which National Grid and RTE are investing in the IFA link. Separately, they are also investing around £56m to ensure ongoing high reliability on the interconnector in years to come. A programme of refurbishment of the converter stations at Sellindge in Kent and Les Mandarins near Calais is under way, with works scheduled to be carried out in the spring/summer of 2010 and 2011.
Commenting on the new customer facing system, Simon McVeigh, IFA Manager at National Grid, said: “These changes mean more choice and a one-stop shop for interconnector users, giving more opportunity to trade across the link much closer to real time, to nominate flows and allow more efficient use of interconnector capacity. It also means more transparency for users and other interested followers alike. We and RTE have sought not just to ensure compliance with EU Congestion Management Guidelines, but to go that one step further.”
The project to implement the new capacity management system was undertaken as part of the European energy regulators’ regional initiative for the France-UK-Ireland region, which is chaired by Ofgem, Britain’s energy regulator.
Andrew Wright, senior partner, markets, Ofgem, said: “Interconnection between EU member states is becoming increasingly important as it increases security and diversity of energy supplies. The changes being brought in on the IFA aim to make more efficient use of the interconnector and represent a step towards further integration of European energy markets.”
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For further media information only, please contact:
National Grid
Stewart Larque +44 (0)1926 655274 stewart.larque@uk.ngrid.com
RTE
Thierry Lartigau +33 (0)1 41 02 16 78 thierry.lartigau@rte-france.com
or +33 (0)6 23 67 83 93