Review of the activities of Electricity System Commercial Operator. Tbilisi, January 2014

Transcription

1 Review of the activities of Electricity System Commercial Operator Tbilisi, January 2014

2 SECTOR PLAYERS Policy Implementation Ministry of Energy and Natural Resources Independent Regulator Georgian National Energy and Water Regulatory Commission (GNEWRC) Market Operator Electricity System Commercial Operator System Operator (Dispatch) Georgian State Electrosystem Transmission HV grid Georgian State Electrosystem Saqrusenergo Energo Trans Eligible Entity Generation Licensee Distribution Licensee Direct Customer Importer Exporter

3 ESCO - BASIC INFORMATION ESCO was established on August 7, 2006 and functions since September 1, 2006 Legal Entity of a Private law with a structure of a Joint Stock Company JJ Partnership Fund is the owner of 100% shares and Is managed by the Ministry of Energy and Natural Resources ESCO service fee is set by the Regulator ; is payable by Eligible Entity in the amount of tetri per each kwh generated, consumed, imported and exported

4 ESCO FUNCTIONS Balancing electricity (capacity) trade Entering into medium and long-term contracts on import/export Guaranteed capacity trade Registration of Eligible Entities Building and maintaining unified database for the wholesale trade Calculating the quantity of sold and purchased electricity and submitting information for the settlement Building and maintaining unified register of metering Metering system inspection ESCO is guided by main principles of the state policy when performing its activities

5 QUALIFIED ENTITIES ESCO Generation Licensee Regulated HPP The Commission sets the fixed tariff Partly regulated HPP TPP The Commission sets the cap marginal tariff The Commission sets the cap marginal tariff for the generated electricity The Commission sets the Guaranteed capacity cost on a daily bases Deregulated new HPP No tariff is set Deregulated small (up to13 MW) HPP Importer No license is required No tariff is set No license is required The Commission sets the cap margin al tariff Distribution Licensee The Commission sets cap marginal tariff on selling the electricity to the retail customer Direct Customer Exporter Shall be allowed to wholesale trade if annually consumes not less than: 7 Mln. kwh electricity ; 3 Mln. kwh electricity ; 1 Mln. kwh electricity ; 1 kwh electricity 2017 No license is required No tariff is set

6 6 ELECTRICITY MARKET MODEL DIRECT CUSTOMER GENERATION EXPORTER IMPORTER DISTRIBUTION SMALL HPP ESCO RETAIL CUSTOMER BALANCING ELECTRICITY DIRECT CONTRACT

7 WHOLESALE TRADE OF ELECTRICITY BILATERAL DIRECT CONTRACTS ARE SIGNED BETWEEN ELIGIBLE ENTITIES BASED ON DIRECT CONTRACTS THE CONTRACT PRICE DEPENDS ON THE STATUS OF THE ELIGIBLE ENTITY ACTING AS A SELLER (WHETHER IT IS REGULATED, PARTIALLY DERAGULATED OR FULLY DERAGULATED) DIRECT CONTRACTS REQUIRE REGISTRATION BY THE DISPATCH LICENSEE ESCO TRADES THE BALANCE ELECTRICITY WITH THROUGH ESCO (BALANCING ELECTRICITY) STANDARD CONDITIONS OF DIRECT CONTRACT, WHICH: IS REGISTERED WITH DISPATCH LICENSEE REPRESENTS THE PUBLIC DOCUMENT IS STANDARD FOR ALL THE PARTICIPANTS

8 WHOLESALE TRADE PRINCIPLES Calculation period is one calendar month Only the generator and the importer are the electrticity sellers The electrticity is sold at the seller's busbar. Hence, the transportation related expences are imposed on the electricity buyers, that include: Dispatch service fee Transmission service fee Wheeling (if such occurs) service fee Actual average grid loss Only distribution licencee, direct customer and exporter are the electricity buyers. The generator represents the electricity buyer only for securing its own consumption Balancing electricity is traded only through ESCO Re-sale of balancing electricity to ESCO by distribution licencee, direct customer and exporter is prohibited Balancing electricity trade is not a profitable activity for ESCO

9 100% ESCO SHARE IN THE TRADE 80% Balance electricity (BE) trade is one of the activities of ESCO 60% 86% 88% 79% 83% 90% Balance electricity balances 40% delivery and consumption In average, ESCO share in the 20% total trade is around 14% 0% 14% 12% 21% 17% 10% ESCO (BE) Direct Contracts Usually, increase of the quantity of balance electricity takes place in winter period

10 BALANCING ELECTRICITY PURCHASE PRICE (by ESCO) REGULATED HPP WITH FIXED TARIFF TPP WITH CAP MARGIN OF THE GENERATION TARIFF PARTLY DEREGULATED HPP SUMMER - FOR THE LOWEST GENERATION TARRIF WINTER - WITH CAP MARGIN OF THE GENERATION TARIFF DEREGULATED SMALL HPP IMPORT SUMMER - FOR THE LOWEST GENRATION TARRIF WINTER - FOR THE HIGHEST TARIFF OF BALANCING ELECTRICITY BEING SOLD TO ESCO SUMMER - FOR THE LOWEST GENERATION TARRIF WINTER - FOR THE HIGHEST TARIFF OF BALANCING ELECTRICITY BUT NOT HIGHER THAN IMPORT TARIFF

11 BALANCING ELECTRICITY SELLING PRICE (from ESCO) DISTRIBUTION LICENSEHOLDER DIRECT CUSTOMER AVERAGE WEIGHTED PRICE OF THE BALANCING ELECTRICITY BOUGHT BY ESCO EXPORTER SUMMER AVERAGE WEIGHTED PRICE OF THE BALANCING ELECTRICITY BOUGHT BY ESCO WINTER - FOR THE HIGHEST TARIFF OF BALANCING ELECTRICITY BEING SOLD TO ESCO ESCO EXPORTER IN FRAMDES OF THE EXPORT CONTRACT PRICE, WITH THE HIGHEST TARIFF OF THE BALANCING ELECTRICITY BEING SOLD TO ESCO

12 GUARANTEED CAPACITY TRADE GC cource ESCO GC Buyer The players of guaranteed capacity (GC) trade are: Guaranteed capacity sources (GC sources) ESCO Guaranteed capacity buyers (GC buyers) GC provides for the stability, safety and reliability of the power system Electricity delivery-consumption is balanced (if required) by GC GC trade is carried out in a centralised manner through ESCO, by standard condition of the contract: Registered by dispatch licences Represents the public document Is standard for all the players Selling of guaranteed capacity by ESCO is not a profit oriented activity

13 SUPPORT OF CONSTRUCTION OF NEW POWER PLANTS On the construction of new power plants MOU is signed between the Government of Georgia, the Investor and ESCO In the period defined by the MoU, from the date of the operation commencement during 10 (ten) years, 20% of the the annual generation of the plant shall be soled to ESCO based on the guaranteed PPA signed in advance the price applied in guaranteed PPA signed with ESCO is negotiated and fixed in MoU 13

14 FUTURE OUTLOOK Gradual installation of the modern practices for the management of internal electricity market Market Model development Developing new Balancing and Settlement Rules with the Day-Ahead Market principles IT infrastructure development and upgrade Including recommendations in the Market Rules and Legislation Improved direction on the issues related to organizational structure and human resources Donor Community USAID/HIPP World Bank INOGATE

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