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Demand Side Bidding and Forecasting Project

Project Update | Background | Timeframe | DSBF Overview | Project Budget | Related Information

Project Update

November 2011: The project is on schedule for delivery in June 2012. The final build activities are due for completion by the end of November 2011. System Operator testing commenced on 4 November 2011. A request for consequential variations to the Policy Statement and Procurement Plan arising from the DSBF Code amendment was submitted to the EA on 22 November. Expenditure to date is $470,000.

September 2011:  The design stage is almost completed and some build activities are underway. Preparation for the industry forum on 12 October 2011 has started and will complete by 29 September 2011. The System Operator presentation will cover the changes to the schedules participants can expect when DSBF is implemented.

Background

The Demand Side Bidding and Forecasting (DSBF) Project is an Electricity Authority(EA)-led market initiative.

It will establish a consolidated set of schedules from which participants can view the forecast of load up to 36 hours in the future and make informed decisions on the basis of these schedules. The EA’s objectives are that the DSBF Project will facilitate improvement in the demand-side inputs into schedules while at the same time reduce obligations and compliance set-up costs to purchasers that relate to submitting bids.  Changes to the Electricity Industry Participation Code (Code) are being made to reflect the new obligations on participants (including the system operator) relating to the DSBF Project.

Timeframe

The proposed project timeline is as follows:

These timeframes are approximate and will be subject to change depending on any issues that arise during the operational testing.

The project is scheduled to go-live on 28 June 2012.

Feedback on the content of this page can be sent by email to system.operator@transpower.co.nz for attention Natalie Bartos.

DSBF Overview

The key elements of the DSBF Project are:

  • Two new schedule types will be prepared: the non-response schedule (NRS) and the price responsive schedule (PRS).  These will cover a rolling 36-hour period.  A short and a long version of each schedule will be prepared.  The short schedules will be published every 30 minutes and cover the next 4 hours; the long schedules will cover the full 36 hour timeframe and will be published every two hours.  These new schedules will replace the PDS, SDPQ, SDS, and the SWS.
  • Different information from purchasers is used in each schedule.The NRS will use bids at non-conforming GXPs (quantities only) and the SO’s demand forecast for conforming GXPs.  The PRS will use bids at non-conforming GXPs (quantities and prices) and the SO’s demand forecast, modified by any ‘difference bids’ (see below), for conforming GXPs.  Security assessments and dispatch will be carried out on the basis of the NRS. 
  • Formal designation of GXPs as either conforming or non-conforming GXPs.The EA, following a process specified in the Code, will designate each GXP as either conforming or non-conforming, based on the extent to which load at that GXP can be predicted by a central forecaster. 
  • More visibility and accountability in the preparation of the demand forecast.The SO will prepare a central demand forecast at conforming GXPs for each trading period in accordance with its own process and methodology.  The process and methodology used to prepare the demand forecast will be disclosed to the EA and published on the SO’s website.  From time to time, the EA may ask the SO to provide a report on the accuracy of the demand forecast.  These reports will be published on the SO’s website.
  • Changed bidding requirements for purchasers.  At conforming GXPs, purchasers will no longer be required to submit bids. Instead, purchasers will be able to submit ‘difference bids’ at conforming GXPs to signal to the market that the purchaser expects to use more or less electricity at prices below or above the levels specified by the purchaser.  There is no requirement on the purchaser to adhere to the difference bid.  At non-conforming GXPs purchasers will still be required to bid but the threshold requirements for revising bids will be relaxed.

Industry Involvement

The EA has appointed a Test Manager whose role will include the overall management of testing with participants and be the central point of communication for all participant testers. The Test Manager is expected to develop a test plan for testing with participants covering end to end and user acceptance testing. The participant test plan will be developed in conjunction with SO and NZX to ensure there is a coordinated approach to testing and ensure completion of testing within agreed timeframes.

Further information will be published on the EA website once the approach to testing is finalised.

Project Budget

The System Operator has estimated the project budget of $1,570,318.

Expenditure to date is $469,731 and is on track.

Related Information