Organization of the Electricity Market Deployment in ...Organization of the Electricity Market...

Proprietary10-Jun-05 1

8th International Workshop on Electric Power Control CentersDay 2 – Morning Session

Human Factors

Organization of the Electricity Market Deployment in Romania

and Reorganization of the TSO

KEMA – Francis Van DijckExecutive Consultant

Transelectrica - Marian CernatDirector National Dispatch Center

5-8-June-2005 Les Diablerets - Switzerland


Agenda

• Introduction to Romanian Electricity Market– Market Architecture– Institutional Changes– Process Re-egineering

• Market Deployment– Deployment Overview– Organizational & Technological Challenges– Project Approach to Market Implementation– Market Deployment Organization

• TSO Reorganization– Resource Requirements

• System resources• Human resources

– Reorganization Facts & Figures


IntroductionElectricity Market Architecture

Market Operator

Auction Participants

BalancingMarket

Participants

BRP

SettlementAdministrator

TSO

Trading Participants

Scheduling& imbalances

Ancillaryservices

BalancingMarket

Scheduling& imbalances

Ancillaryservices

BalancingMarket

Ancillaryservices

BalancingMarket

DAM

Cross-Bordercapacities

DAM

Cross-Bordercapacities

Determine &publish ATC

Offer

Offer

Operate

Auctioncapacities

SettleMarketsplitting

Physical notifications(for DAM )

Submit physical notifications

Pay for imbalances

Settle

Offer

Determine needs

Use for systemoperation

Check and approve

Determine needsand p rocure

KEMA ConsultingKEMA Consulting


IntroductionMarket Deployment – Institutional Change

• Electricity Sector– Multitude of institutional changes (regulator, unbundled

utilities, privatization, new participants)– Business reorientation of legacy utilities, generators,

suppliers

• TSO– market facilitator– market segment operator (BM, AS, ATC)– operational event registrator

• Control Center– role expansions– operational expansions– systems expansions


IntroductionMarket Deployment – Process Re-engineering

• Market– new processes– modified processes

• TSO– planning– auctioning– additional management– additional IT/Comm support

• National Dispatch Center– market operations– scheduling operations– settlement operations– dispatch operations


Market Deployment - Overview MARKET DESIGN SYSTEMS DEPLOYMENT

EM

S

SC

AD

A

DA

M

SETTLE

ME

NT

BA

L. MR

KT

ME

TER

ING

ORGANIZATIONDEVELOPMENT

ManagementCapacity

Development

DepartmentalStaffing

SeminarWorkshop

Conference

SystemsTraining

OperationalCapacityBuilding

DevelopmentProcedures

Market C

omm

ittee /W

orking Groups

MARKET OPERATIONS

Twinning

ParticipantsTraining

FACILITATORSYEAR

3

2

1

0

SC

HE

DU

LING

AS

/ATC

MarketRules

Refinement

MarketRulesDesign

MarketTrials

Inter-operability

testing

ConsultancyAwareness

Building


Market Implementation – Organizational Challenges

General– comprehensive learning curve– confusion through non-comprehension– participating staff performs “old” plus “new” function

during implementation (long working hours + distinguishes the “willing” from the “careless”)

– unfamiliar territory for existing staff (with typical “resistance to change”)

– finding and keeping appropriate staff– definition of new roles and job descriptions

Market Participant Training– extensive market participant role education– “hands on” training on real market systems– TSO task


Market Implementation – Technological Challenges

• Support level– Strong support for IT and communications– Avoid isolation of know-how– Stepwise organizational buildup

• step 1: infrastructure building (project-oriented initiatives) (fragmented and narrow-focus know-how)

• step 2: definition and understanding of new processes• step 3a: education of operating personnel and participants• step 3b: realization of systems interoperability• step 4: trial operations (in parallel with legacy systems)• step 5: routine operations

– Provide flexibility to modify new system specifications


Market Implementation Project

Task 1.2.2Hydro Regulation

New Trading Platform ProjectP081406

Task 1.0Identify and Describe Reform Process

Task 1KnowHow TransferImplementation NTP

Task 1.1Hydro Production Profiler

Task 1.2Methodology & S/W Tools for Modeling

& Implementation New TradingArrangements

Task 1.2.1Initial Contracts

Task 1.2.3Design Capacity Mechanism

Task 1.2.4Additions to the Market Rules

Task 1.2.5Specify Daily Market Simulator

PHASE IA

Task 2.1Assist Implementation Market System

Task 2Power Exchange

Institutional CapacityBuilding

Task 2.2"On-the-job" Capacity Building

Task 2.2.1Capacity Building Support

(Statute, rules, business plan)

Task 2.2.2Market Surveillance Evaluation/

Reporting

Task 2.2.3Training of OPCOM Staff &

General Market Training

Task 3.1Design contracts/Technical Specs

Task 3.2Pricing

(design, contracts, technical specs)

Task 3.3Ancillary Services

(design, contracts, technical specs)

Task 3.4Procurement, Installation H/W & S/W

Task 3.5Pilot Testing & Implementation

PHASE IB

Balancing / A.S.Market

Task II.1Design/Implement Capacity Market

Task II.2Deliver & Implement Market Simulator

Task II.3Improvements OPCOM IT/Comm

Task II.4Permanent Diagnosis Power Market

Task II.5Facilitate participation in regional

power market

Commercial Startup

Task II.6Facilitate further market evolution

Task II.7Technical implementation of future

market framework

PHASE II

TASK OVERVIEW


Market Implementation Organization

Work Group - Market Rules and Regulation

Work GroupHydro Optimization for Portfolio Contracts

Working Group Capacity Building

Work Group - BalMkt/Sched/AS

Sr. Market Expert

Sr. Expert EnergyMkt

Expert Energy Mkt

Sr. Expert Hydro Opt. Subgroup 2Responsible

Others ...

Head Power MarketAdministration

Sr. Market Expert

Contracts Expert

Sr. Expert CapacMrkt

Advisor to President

Hydro Regulation

Initial Contracts

Sr. Market Expert

Sr. expert PX-mgmt& operation

Dir. Planning/Market.

Mar

ket

Market ParticipantsR

epres. Ministry

Repres. Ministry

DAM

MeteringNDC

Plan

ning

/Mar

ketin

g

TSO

Ministry Regula

tor

Bal.Mkt./Sched/ASTask Leader

Sr. Expert EnergyMkt

Expert Ancill. Svcs

MarketComittee

Expert System. Svcs

Expert System. Svcs

Expert BalancingMechanism - Pricing

Sr. Expert PowerEchange Operation

Dir. Planning/Market.

Dir. Nat. Dispatch

PX OperationsExpert

Subgroup 1Responsible

Working Groups&

Market Comittee

Market Operator

Sr. Expert Hydro Opt.Team Ldr Phase IA

Team Leader Ph. II

Sr. Expert PX establ.& operation

Head of HOA

Head of HOA

Dir. Nat. Dispatch

BM/AS & Cap. Mrkt Head Power MarketAdministration

Head Power MarketAdministration

Others ...

Settlement

EMCO WB

Code Updates

Hidroelectrica

Hidroelectrica


Market Implementation – Roles

• Market Committee– Makes decisions on the alignment of market implementation

progress with legal and regulatory directions – institutional level– Convenes monthly or whenever significant events occur– Organized by the Regulator

• Working Groups– Focuses on one particular market segment deployment, but with

representation of all major market stakeholders– Convenes as frequent as practically required (varies from weekly

to bi-monthly, frequency changes during market evolution)– Makes decisions on procedural and organizational level– Organizes day-to-day activities for each of the market

segments/departments through approval of Action Items, Decisions, Schedules

– Brings significant events to the attention of the Market Committee

– Initial structure of Working Groups defined during Inception, new (sub-) working groups established as needed.


Market Implementation – Roles

• Departmental Teams– Market Process Understanding (workshops, training, …)– Systems training (on-the-job training thru participation in system

building (databases, modeling, …))– Build expertise in performing the new market processes– Coordination with other departments, stakeholders– Provide facilities (sites, pre-installation, access, …)

• Consultants– Enable

• capacity building• inter-departmental glue

– Provide• twinning• procedures documentation• “integrated” market project documentation

• Suppliers– ensure interface standardization, but more importantly: data

uniformity across systems– have to show flexibility towards final solutions


Market Implementation – Success Factors

• General– Strong Steering Committee (representatives of all institutions)– Strong Management understanding of integrated processes– Focus on practical implementation (vs. ideological discussions)

• Working Groups– Enforce participation in Working Groups– Coordinate technical information exchange between different

departments. Avoid “cellular” activities, i.e. isolated sub-projects with localized expertise

– Enforce distribution of Working Group results to all stakeholders• Support

– Twinning arrangement(s) with experienced third parties– Provide for strong, reliable and flexible IT and communication

support (avoid fragmentation of support entities)– Provide internal staff for first line system maintenance


Pre-Market TSO Organization

SCADA Servers

Dispatcher

TelecomEMS Servers

Managers

Control Room

NDC Functions

Management&Support IT Telecom

Platform

Secretarial

NDC

[19]

[10] [6] [3] [10]

TSO

Teletrans (legal subs.)TSO Interal [2] [1][2]

Scheduling OperationalPlanning

MonitoringGrid Code

Implementation

Protection &Automation


Reorganization – Resource RequirementsTSO level• Material Resources

– Upgrade EMS/SCADA– Upgrade metering– Install new communications

• Human Resources– because of the massive scale of

change, shortage of (experienced and available) internal staff to prepare for market operations

– lack of comprehensive know-how on integrated market operations

• new hires• external support

• seminars, workshops, dedicated training, “twinning”

• cross-institutional working groups

• substantial investment• substantial

implementation period


Reorganization – Resource RequirementsBM/AS Department level• Material Resources

– Install new BM/AS/Scheduling Systems

– Install new communications– Necessity for comprehensive

procedures• Human Resources

– identify appropriate staff (fill in gaps when recruitment comes from the inside)

– intensive systems training (on-the-job)

– intensive exercising in simulation mode

– familiarization with procedures– extensive interaction with market

partners

• new hires

• seminars, workshops, dedicated training, “twinning”

• avoid personnel having two jobs

• substantial investment• substantial

implementation period


BM/AS Platform Architecture

Administration workstation

Security RouterW/ Firewall

Internet Access

DMZ Web server (RBCADD4)

Backup dispatch center HIS Database Cluster(RBCHIS1/ RBCHIS2)

Application server(RNCADD3)

Backup Dispatch CenterSCADA/ EMS LAN



Operator Interface (x4)

Internet Access


Archival server(RBCARC1)

Tape auto loader

Administration workstation


Internet Access


Backup dispatch center HIS Database Cluster(RBCHIS1/ RBCHIS2)


Backup Dispatch CenterSCADA/ EMS LAN



Operator Interface (x4)

Internet Access


Archival server(RBCARC1)

Tape auto loader


Reorganization – Resource RequirementsDispatch level• Material Resources

– Dispatch stations must have interface to market applications (merit order, schedules, …)

– Comprehensive procedures• Human Resources

– Comprehensive education on the new context of dispatching (reserves selection process, log keeping, …)

• existing dispatchers• seminars, workshops,

extensive training


TSO after Reorganization

SCADA Servers

Dispatcher

TelecomEMS Servers

Managers

Control Room

NDC Functions

Management&Support

IT Telecom

Platform

Secretarial

NDC

[19]

BM Department

BM/SchedulerServers

Manager

[1]

Scheduling BM Bidding/Clearing/

Settlement

[2 (3 shifts)] [3 (3 shifts)]

Telecom

Analysis & Market

Surveillance

[2]

TSO

AS/ATCAuctioning

[1]

Scheduling OperationalPlanning

MonitoringGrid Code

Implementation

Protection &Automation

[10] [6] [3] [10]

Teletrans (legal subs.)TSO Interal [2] [1][2]


Resources – Some NumbersTSO level• Systems

– AS/ATC Auctioning• 2 new (desktop) systems, for AS and ATC auctioning

• Human Resources• 1 new department employee

National Dispatch Center level• Systems

– entirely new EMS/SCADA– entirely new metering system for wholesale market– >5000 km dedicated fiber optic backbone for E-Market, EMS, plus

voice, video• Human Resources

– No new dispatch staff, but comprehensive training for all dispatch related personnel on new systems/roles

– New Market Surveillance task


Resources – Some NumbersBM Department level• Systems

– entirely new BM/ETSO Scheduling System (accomplished in 9 months)

• Systems Support– external IT company (subsidiary of Transelectrica)

• 2 systems/telecom hardware engineers• 1 application engineer

– ongoing warranty support of system supplier• Human Resources

– Presently (during market trials):• 1 manager (internally recruited)• 5 schedulers/BM operators (2 internally, 3 externally recruited)

– 18 staff members needed for 24/7 operations


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Organization of the Electricity Market Deployment in ...Organization of the Electricity Market...

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