PSE S.A.: the implementation of the Electricity Balancing Market Management System to start in 2018

PSE S.A.: the implementation of the Electricity Balancing Market Management System to start in 2018

PSE S.A. will start implementing the Electricity Balancing Market Management System (MMS) in Poland as from 2018, in partnership with ABB Sp. z o.o., the winner of the public tender, for 34.2 mln PLN (8 mln EUR).

MMS system is an IT tool that will facilitate a cost-effective and technically secure operation of the Polish power system, as well as its integration within the European electricity market. MMS will use detailed representation of power system resources in the balancing market processes, allowing for an efficient integration of market and system operations. The most important features of the MMS include:

  • Full Network Model, taken into account in the balancing market processes.
  • Detailed technical and cost information about generating resources and loads (complex bids submitted on unit level) taken into account in the balancing market processes.
  • Calculation of locational prices for balancing energy, correctly reflecting the power system operating conditions (Locational Marginal Pricing).
  • Possibility of joint procurement of energy and generation capacity reserves.

MMS system is expected to contribute to a more efficient use of generation and transmission resources to ensure a continuous supply of electricity. Increased transparency of the balancing market processes and the scope of information to be made available for market participants will support them in making better market strategies. MMS will also facilitate the development of more efficient and future-proof balancing market solutions, among other for the coordination of distributed generating and flexible load resources.

MMS system is scheduled to be operational from the beginning of 2021, in line with the timeline foreseen for integrating the Polish balancing market within the European cross-border balancing framework. Since the MMS implementation will influence the balancing market operations, cooperation with market participants will be essential, including, among other, balancing market adjustments, modification of the Grid Code (IRiESP) and user training. The schedule of the cooperation in question will be available after finalising the detailed project implementation planning, foreseen for mid-2018.

Four contractors were short-listed for the negotiation process: ABB, Siemens Sp. z o.o., SYGNITY S.A. and the consortium of ALSTOM GRID SAS and ASSECO Poland S.A. All of them submitted technical offers, providing basis for discussions on the detailed solution architecture and project organisation. Following the negotiation process, final offers were submitted by two contractors: ABB and Siemens.