ENTSOG TYNDP 2017 - Annex F

Ten-Year Network Development Plan 2017 Annex F: 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.

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.

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”)

For each Zone, compute the spread for Step1 (Labelled afterwards as “Zone

Spread 1”)

For each Zone, compute the corrected allocated bill difference

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.

TYNDP 2017

Annex F

Assessment Methodology

Page 28 of 31

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.

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.

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”)

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

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.

TYNDP 2017

Annex F

Assessment Methodology

Page 28 of 31

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.

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

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.

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)



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”)



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)



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”)



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



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)



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”)



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



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”)

