Replacement of the Balancing Mechanism system. Phil Johnson Electricity Projects Transition Manager

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1 Replacement of the Balancing Mechanism system Phil Johnson Electricity Projects Transition Manager

2 Balancing Mechanism What is it? The key system used by National Grid for managing frequency and power flow on the transmission network in real time is the BM system It is used to receive Physical Notification, Parameter and Bid Offer data from Participants It calculates day ahead and intraday system margins by comparing Participant data with NG derived demand forecasts It is used to send out BOAs to control points to balance the system in real time It sends all Participant and BOA data to Elexon for settlement and calculation of the imbalance prices

3 Balancing Mechanism What s being changed and why? The BM system, originally developed by the CEGB, has now reached end-of-life and requires replacement It uses a 1960 s operating system and is essentially a manual system originally developed to control a handful of coal units. It now has to handle 100s of balancing units A replacement EBS system based on modern architecture is replacing the BM system this Autumn, and the opportunity is being taken to modernise the despatch process A key implementation objective for the new system is not to change existing interfaces to industry participants

4 Balancing Mechanism What s being changed and why? The Electricity Balancing System (EBS) is commissioning this Autumn and the opportunity is being taken to introduce semi-automatic despatch Operational Security: The new system will enable frequency control to be achieved more economically Process Efficiency: Manual balancing can become difficult during 'high wind'. Semi-automated despatch will provide significant improvement Resilience Improvement: Removal of single point of hardware failure and rapid failover to standby system and far shorter planned downtime Future Platform: The new architecture will allow complex market changes to be incorporated more easily (e.g. European Cross Border balancing)

5 Transition in stages Real-time continuous operation of the balancing mechanism is essential to the secure operation of the power network National Grid is planning a staged approach to transferring control from the existing BM system to the new EBS system Day ahead, Intraday and Real time despatch facilities will be transitioned over separately

6 EBS Staged Go-Live Approach Indicative Timeline dates subject to revision May June July August September October Transition Period Contracts ASB and CSS Parallel Run Contracts & CSS NAP Day Ahead Parallel Run Contracts & CSS Enduring Operation NAP Day Ahead Enduring Operation NAP Day Ahead Scheduling Parallel Run Scheduling Enduring Operation Early Despatch Trial Runs Scheduling Despatch Trial Runs Despatch Live Overall GO-LIVE Declared at this point EBS and BM being kept up to datewith full production data sets- fall back to BM possible at any time Despatch Enduring Operation BM Switched Off PNR (Point of No Return) EBS Only No BM

7 EBS Staged Go-Live Approach Indicative Timeline dates subject to revision May June July August September October Transition Period Contracts ASB and CSS Parallel Run Contracts & CSS NAP Day Ahead Parallel Run Contracts & CSS Enduring Operation NAP Day Ahead Enduring Operation NAP Day Ahead Scheduling Parallel Run Scheduling Enduring Operation Early Despatch Trial Runs Scheduling Despatch Trial Runs Despatch Live Overall GO-LIVE Declared at this point EBS and BM being kept up to datewith full production data sets- fall back to BM possible at any time Despatch Enduring Operation BM Switched Off PNR (Point of No Return) EBS Only No BM

8 Impact on Participants National Grid will manage the introduction of the EBS system so as to minimise impact on the operation of the Balancing Mechanism Day Ahead and Intraday scheduling, you may see: More refined Reserve Margins away from shoulder periods Variations to Balancing Units required for energy and constraint management reasons Real-time Despatch, you may see: More frequent but smaller sized BOAs issued by the automated process More BOAs simultaneously issued to wind units that may share the same control point

9 Electronic Data transfer connections As per discussions at EBSIT forums, during commissioning there will be short interruptions on the electronic data transfer connections BM EMC EDT EDL CP EBS During the daily despatch trials EDL links used for sending BOAs to control points will be switched over from BM to EBS Once the EBS system is established and, after the bedding in period, the EDT links providing PN data will be switched over from BM to EBS

10 In conclusion National Grid will be replacing the existing BM system with the new EBS system this Autumn because it is at end of life EBS system will be introduced in a phased approach in August and September Short interruptions to the EDL system used to issue BOAs will occur during trials but.national Grid will ensure interruptions are minimised After Go-Live National Grid will be carefully manage the introduction of the EBS system to minimise the impact on the operation of the Balancing

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