For preparation of the exchange trading power market launching in agreement with NERC our company with one of the leading research institutes in the electricity industry of Ukraine have developed the software that allows to simulate the exchange electricity trading of the day ahead market (DAM) and the intraday market. The current version of this software will be used during the testing process — a set of measures which will be allowed to hold a full range of model calculations for the exchange market trading of electrical energy.
Such testing will help to minimize operational risks for market participants, the regulator, System Operator, Settlement Administrator and to make the economic evaluation of the exchange market operational effectiveness in new electricity market model of Ukraine.
The concept of technological testing
Testing mechanisms of exchange trading in the day-ahead market of new electricity market model of Ukraine.
- Business processes testing of the day-ahead market of the exchange.
- Training for potential market participants on the exchange trading mechanisms, the example is day-ahead market.
- Testing of data transfer on the volumes of deals from energy exchange to settlement administrator (Energorynok).
- Testing of procedures for planning the production (consumption), import (export) by market participants, transmission and distribution companies.
- Improving the rules of exchange trading in day-ahead market.
- Testing of the interaction with NERC about the harmonization of rules and reports transfer based on exchange trading.
Stages of testing process:
I. The preparatory stage, which includes:
- Coordination of plan testing process by NERC.
- Preparation of regulatory documents (laws of interaction with the State Company "Energorynok" a cooperation agreement with the bidders, the concept of technological testing, rules and regulations).
- Harmonization of the format and timing of training activities (workshops) for potential trade market participants.
- Completion and testing of software for process testing (hereinafter referred to as POTT) of the Energy Exchange.
- Information distribution for potential participants of technological testing.
- Signing of key documents (liaison protocol with the State Company "Energorynok", cooperation agreement with the bidders).
- Organization of interaction with bidders.
- Training activities (workshops) for bidders.
II. The main stage, which includes:
- Conducting technological testing.
- Analysis of the results.
- Provision of accounting information to bidders.
- Transfer of accounting data to Settlement Administrator.
III. The final stage, which includes:
- Preparation and presentation of technological testing results.
- Preparation and signing a Memorandum of Cooperation (in consultation with NERC).