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  • Testing of the MMS platform: most functions for the new electricity market implemented

    Verification of the massive update of the module for the balancing market and the ancillary services market for the MMS platform. At the same time, in parallel with the testing, together with the consortium of the developers, all platform modules is continued processing and upgrading of. Exchange of commercial metering data from all DSOs with PE GarantEnergo M has been successful.

    Implementation of the software for the balancing and ancillary services markets

    Currently all the necessary registers in MMS are operational, including:

    • Register of market participants
    • Register of generating units
    • Register of balancing services providers
    • Register of providers of ancillary services

    The System also allows to register bilateral contracts, commercial metering points.

    Most of the features needed for market operations are available to platform users:

    • submission and registration of trading schedules in all market segments (bilateral contracts, day ahead market, intra-day market)
    • submission and registration of regular physical schedules of electricity generation
    • receiving commercial metering data and calculating imbalances,
    • auctions in the market segments of ancillary services and the balancing market

    On June 26, 2019, the module for planning the activation and issue of dispatching commands and the financial guarantee module are scheduled for upload. Their development was delayed due to the blocking of payments under contract with MMS developers by the Ministry of Energy and Coal Industry. After that, the platform will have all the necessary functionality to operate in the new electricity market model.

    Registration of market participants

    Only 432 companies out of over 1000 licensees are registered in the register of market participants, among them about 200 producers, including all large ones, and all distribution system operators (33 companies).

     

    Statistics on registration of market participants and their resource objects

    Type of data Total expected number Simulated by Ukrenergo
    in MMS
    Confirmed by
    documents from
    market participants
    Data transmission
    Market participant 1066 609 403 95 companies submit trading schedules
    Resource objects 690 254 0 Technical schedules/price bids for 140 objects are submitted

     Issues of concern

    At the same time, there are a number of issues that complicate the MMS testing and grid operation forecasting under the new market model.

    1. The testing of market segments is still mainly done by large and medium-sized companies, small producers and suppliers remain uninvolved. In total, 95 companies submitted electricity trading schedules (bilateral electricity sales contracts), i.e. 23.6% of those registered in the system). Technical schedules of electricity generation and price bids are submitted for 20% of resource objects..

    Some market participants provide inaccurate data on trading schedules (bilateral electricity sales contracts) and physical schedules of production and supply of electricity. This distorts the general picture of the volume of trades on the market segments and does not allow to predict its probable indicators after July 1.

    The problem is also exacerbated by the fact that large state-owned generating companies lack real bilateral contracts. In fact, by the beginning of June, there was no procedure for holding auctions to conclude such contracts, nor an electronic auction platform. In addition, not before June 12 did the Cabinet of Ministers adopt a new Provision on placing special obligations on electricity market participants to safeguard public interest, containing the list of counterparties, to whom large state companies have to sell most of the electricity generated.

    1. Most of the generating companies still are not submitting applications and data for registration (documentary confirmation) of virtual commercial metering points (CMP),set up at the boundaries of adjacent metering areas. The number of registered CMPs at the producers is critically small – 1% of the expected volume. Of the CMPs of distribution system operators, only 14% are registered.

    Lack of documentary evidence of the CMP from market participants will make it impossible to collect data from most of the grid, as, in accordance with the Commercial Metering Code, after the launch of the new market model on July 1, only metering data from officially registered metering points will be acceptable.

    During the last 10 days, the number of CMPs, for which distribution system operators (DSOs) submit the metering data of electricity suppliers, has significantly increased. The number of such points went from 3% to 39%.

    Because most CMPs are not yet registered, it is currently not possible to single out and formally approve the boundaries of electricity metering areas (separate zones of commercial metering data). As a result, none of the 38 expected metering areas has yet been registered.

    Statistics on registration of CMPs and transmission of metering data

     Type of data Total expected number Simulated by Ukrenergo
    in MMS
    Confirmed by
    documents from
    market participants
    Data transmission
    CMP – Boundary of grids 153 112 19 Metering data for 60 CMPs provided
    CMP – Generation 690 136 7 Metering data for 56 CMPs provided
    CMP – Consumption 2848 2848 334 Metering data for 988 CMPs provided
    Metering areas 38 38 0 Calculation of technological costs within 0 areas
    1. The issue of data exchange between the MMS platform and the Operator’s platform XMTrade | PXS Market has not yet been resolved. Currently, Ukrenergo and the Market Operator are working on harmonising the interfaces of data to be transferred from one software suite to another..
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