The aim of the Dry-run project is to test the concept of a load-flow based coordinated allocation system in South East Europe. At the centre of the project stands a supra-national auction office. Its task is to manage the incoming capacity bids and to optimise the allocation of respective cross-border capacities.

The Dry-run project was kicked off with eight participating TSOs from South East Europe. Launched in 2006, the project consisted of three distinct phases with a closing date in 2010.

FIRST PHASE 

SECOND PHASE

FINAL PHASE
 

First Phase of Dry-Run, 2006-2007 

In autumn 2005 VERBUND Austrian Power Grid, APG, developed a web based auction portal DrCAT - Dry-run Coordinated Auction Tool. The tool simulates load flow based coordinated auctions, which in response result in transmission rights in electricity networks. This is done in the absence of clearing or payment transactions.
 

Eight TSOs from Albania, Bosnia-Hergovina, Bulgaria, Greece, former Yugoslav Republic of Macedonia, Montenegro, Romania and Serbia, together with a Turkish TSO, acted as traders  in a simulation of monthly flow-based coordinated auctions. In order to maximise the learning effect, each of the eight TSOs took over the role of a Coordinated Auction Office for duration of one month. For the sake of greater load-flow, also neighbouring TSOs from Ukraine, Hungary Croatia, Slovenia and Austria were included into the model. The auction simulation consisted of a monthly auction, including one daily action per month. 

Whilst Consetec and Austrian Power Clearing and Settlement (APCS) acted as a consultant of the project, kfW financed the first phase of the Dry-Run.

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 Cross-border interconnections in South East Europe, 2008

Second Phase of the Dry-Run, 2007-2008

In July 2007 the Energy Community Secretariat contracted VERBUND Austrian Power Grid to conduct the second phase of the Dry-Run project. Here the most central issue was the adaptation of the DrCAT software. Firstly, the simulation was extended to include the participation of traders. Also, additional functions, such as risk management, billing, secondary trading and scheduling, were integrated into the model. The aim was to tailor the run closer to a live situation.

During the second phase, around 40 traders took part to the simulation and bidding of physical transmission rights. Until end of 2007, eight rounds had been conducted. Yet, there was a decline in interest over the subsequent rounds. Croatian TSO decided to join the simulation with two borders end of 2007. Early 2008, auctioning was changed from the previously used “border capacity” (BC) approach to a “line-wise maximum flow approach” (MF).  

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Final Dry-Run phase, 2008-2009

In October 2008 the Energy Community Secretariat tendered a “Study on the final development and establishment of a Coordinated Congestion Management in the SEE Region”. The main task of the consultancy project is to assess and further develop the proposed flow-based capacity allocation approach (MF). It should result in a blueprint, outlining how the MF approach works the best in a real-run operation. The study will also examine how the distribution of auction revenues can be improved. In the end, the consultants, in cooperation with SETSO TF and NACMPF SG experts, will draw a business plan for a Coordinated Auction Office in South East Europe.

On 28 November 2008 the Energy Community Secretariat signed a contract with CONSENTEC – Consulting für Energiewirtschaft und -technik GmbH and APCS Power Clearing and Settlement AG. According to the findings of the study, the technical issues of the concept are solvable. Furthermore, proper control of the network security level is crucial for achieving acceptable results. As for the study, the flow-based capacity model FBA offers suitable parameters for controlling operational risk and hence network security. 

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