this assignment has 5 parts. we are to choose from PART A,B,C,D AND E. I have chosen part A,C,D AND E.PART A:Part A - I-SEM Overview1. Ireland transitioned to a new electricity market in October 2018 called I-SEM. Fourkey aspects of the market architecture are listed below. Briefly explain what ismeant by each item and outline how it is achieved practically in the market place. Central dispatch by System Operator Introduction of balance responsibility Mandatory (exclusive) participation in physical markets Retention of absolute priority dispatch for renewable generators (400 wordsmax)
2. In the light of concerns about resource adequacy, some EU Member States haveintroduced capacity mechanisms. Discuss the reasons for these concerns addressingin your answer the merit order effect and the missing money problem andsubsequently briefly outline how the capacity market operates in I-SEM. (400words max)3. Discuss the need for and the classes of System (Ancillary) Services that aretypically required in an electricity market. Use Ireland as context for yourdiscussion. (400 words max)4. Briefly explain the trading arrangements in I-SEM. Subsequently, determine the netrevenue for a supplier/retailer in I-SEM who established the following position onMay 11 th from 5pm-6pm as outlined in Table Part A (400 words max)
Table Part AForward Market Buys 400 MW CFD @ €60/MWhDay Ahead Market Forecast demand @ Day AheadMarket is 450 MW. Buys 450 MW inDay Ahead Market @ €50/MWhIntra Day Market Forecast demand @ Intra Day Marketis revised upwards to 460 MW. Buys2x5 MW in Intra Day Market @€40/MWh each.
Balancing Market As the supplier has no access to activedemand. It does not participate in thebalancing market.
Imbalance Supplier is metered at 450 MW. Theimbalance price for the two halfhourly blocks is €50/MWh
PART C:Part C - Balancing Market1. Justify the need for a balancing market in an electricity Market. Illustrate how thebalancing market integrates into the I-SEM design and explain the application of theflagging and tagging methodologies. Also discuss the application of AdministeredScarcity Pricing. (Max 400 words)
2. You are provided with the DA prices for February 2020 along with the Imbalanceprices for February in excel files titled ‘balancing exercise’. Analyse the data toreview how ISEM prices are differing in these time frames. Discuss your findings. Ifyou wish, you can further support your answer with data from the SEMO websitehttps://www.sem-o.com/market-data/dynamic-reports/ (Max 1000 words)
PART D:Part D - Gas MarketGive a brief overview of how Ireland’s Gas Market operates. In your answer you shouldmake reference to the following: The supply and demand of gas in Ireland. The role of the CRU The role of shippers in the gas market Gas code of operations
(Max 500 words)In the excel files titled ‘Gas exercise’ you will find UK day ahead gas prices and day aheadelectricity prices in Ireland for all of 2019. Use this data to analyse the gas prices and discussthe relationship between the UK gas market and the Irish Electricity Market. Discuss yourfindings. (1000 words max)Note: Day ahead electricity prices recorded are prepared the day previously e.g Day aheadPrices recorded for 2 nd April were from the Day ahead auction on the 1st april.PART EPart E - Energy Procurement1. In relation to the procurement of energy for a large energy user, answer the following:Discuss the difference between a fixed price contract and an indexed price contractand outline the advantages and disadvantages of each.In relation to a flexible contract outline what is meant by dynamic risk managementand discuss its relationship with the UK gas market. (400 words max)2. On January 1st 2019 an Energy Manager of a large energy user established a flexibleelectricity contract for his facility for all of 2020. The contract gas base in p/therm isset out in the excel file ‘Energy procurement Exercise’. On March 1 st 2019 following adrop in market prices as shown in Figures Part E i, ii and iii, the energy managerhedged 75% of Winter 2019, 25% of Summer 2020 and 50% of Winter 2020.Assuming the electricity consumption is as forecasted in your excel file titled ‘energyprocurement exercise’ and no further hedging occurs, determine the forecasted totalenergy charges for the year 2020 accounting for gas adjustment.When you complete your spreadsheet discuss your findings and analyse the results.(1000 words max) Related Months
Winter 19 Jan, Feb, Mar 2020Summer 20 Apr, May, Jun, July, August, Sept 2020Winter 20 Oct, Nov, Dec 2020
Figure Part E (c) i Winter 19
Figure Part E (c) ii Summer 20
Figure Part E (c) iii Winter 201. Price spre