Activities in Market Development from Twinning Services (2014)
The outputs in the Market Component in the 2014 Twinning Project are structured in four sets of deliverables:
- A Market report consisting of analysis of the EAPP power market and an update of the proposed roadmap, with recommendations and guidance on launching a day-ahead or short-term market
- A study and recommendation report on the establishment of a market sub-committee with detailed description of activities and organization taking into account the development of the market
- Recommendation and study report on an appropriate market opera-tion platform for the EAPP DAM (day-ahead market), as well as devel-opment of a mini market operation application for use by the EAPP until market complexity warrants the procurement of a commercially available full-fledged market operation platform
- Identification and development of all necessary guidelines, proce-dures, and formats for market operation and / or administration Update in Progress
EAPP Short-term Market and Update of Market Road Map
The current Roadmap covers the period of ca. 15 years from 2010 and on-wards. This Roadmap was deemed to point in the right direction, however the level of detail and concrete steps for the first period could be improved. Forthat reason the first steps to be taken have been detailed and suggested, tak-ing into account the current “market” structures of the EAPP. The focus for the update has been the day-ahead market. A shadow market for short-term cross-border exchange of power was therefore launched on two specifically selected interconnectors. The purpose of launching a short-term market based on shadow trade was partly to train EAPP stakeholders in operating a short-term market, and partly to pave the way for the real short-term market. The preliminary outcome of the shadow trade in terms of (virtual) economic gain and the update of the market Roadmap are outlined in the report EAPP Short-term Market and Update of Market Road Map.
Download Update of Market Road Map
Establishment of a Market-subcommittee
The consultants highly recommend establishing a market sub-committee (TSC-M). Equally to having a subcommittee for operation it is also important to al-locate the responsibility for driving the cross-border market development and market integration. The motivation, tasks and near-term strategy are de-scribed in the paper Preliminary report on the establishment of a market sub-committee under EAPP.
Development of a Market Platform
A market operation platform has been developed and named ADAM (Eastern African Power Pool Day Ahead Market). The application is able to receive bids in the form of hourly bids for demand and generation and to compute prices for multiple price areas based on available transmission capacity. Aggregated and detailed statistical information can be generated with hourly, daily, weekly, monthly and yearly resolution. The application has been prepared for real operation as well as for training purposes. A full documentation package has been delivered as well.
Day Ahead Market Platform Documentation
Development of market guidelines, rules and procedures
Framework documents for managing the EAPP short-term market have been developed based on the input received during the workshops. Three docu-ments have been developed:
Market guidelines is a high-level document covering the overall guidelines for market design.
Day-ahead trading rules is a report detailing the day-ahead market rules that govern the cross-border day-ahead market.
Finally, the ‘Daily Procedures for Capacity Allocation, Market Operations and Cross-border Nomina-tions- DP-CMC’ report is a document outlining the daily procedures for the market operator (CC), the TSO’s and the generators.
Download market guidelines, rules and procedures