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Danish natural gas grid users to receive more data for balancing

16 Sep 2013 17:17:23 | esgm


Danish transmission system operator (TSO) is releasing more data to help natural gas grid users who need to balance within day from 1 October.

This is the first step is taking towards moving the grid’s current balancing regime to a more market-based model, in accordance with the balancing network code ( see ESGM 4 July 2013) . This will come into force in 2014.

The new information, which will be sourced from off-take points at daily metered sites, will cover the first six hours of the new gas day and will be made available at 13:45 local time.

A second tranche of data covering the first 14 hours of the day will be delivered to shippers at 21:45, Danish grid operator said at the shippers’ meeting held last Thursday.

After three months, the regulator will scrutinise the effectiveness of the new data and how much impact it has had on helping shippers balance.

Currently, when shippers balance using Denmark’s OTC Gas Transfer Facility hub or the Nord Pool Gas exchange to buy capacity for the exit zone, they are allocated a balancing margin free of charge, based on the exit zone capacity.

Calculation of the allocated balancing margin is based on the size of the shipper’s existing capacity in the exit zone on the gas day. It is equivalent to 72% more or less than the shipper’s pooled hourly capacity at the exit zone. The pooled hourly capacity is equivalent to 3% more or less than the shipper’s maximum possible redelivery at the exit zone during a day. But if they exceed the balancing margin, they are penalised.

EU framework guidelines propose that balancing should be primarily based with the shipper rather than the TSO and should stimulate gas trading, which will result in the removal of the margin allowance.

The Dutch TSO system allows the overall balance position of the entire national network, or the total of the positions of all parties, to be followed by everyone 24 hours a day. The system encourages and allows shippers to keep the system in balance with limited TSO involvement and is being considered alongside the balancing regimes used in Britain and in Belgium.

Shippers using the Danish system expressed support at the shippers’ forum for keeping the balancing position from day to day depending on linepack flexibility rather than being cashed out.

But the success of developing a more market-based system will depend on how much additional information shippers are able to access within the day and the cost implication for the market if more data is made available.

“By the beginning of next year, the new Danish balancing concept will be known and once approved by the Danish regulator, the second and largest step is planned to be implemented by 1 October 2014.

“A third step is planned for 1 October 2015, where data from non-daily metered sites is planned to be part of the delivered data to the market,” a company spokesman said. Kirsty Ayakwah

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