FSkar

FSkar - FINANCIAL SETTLEMENT OF K∆𝑓, ACE AND RAMPING PERIOD

From June 1, 2021, HOPS is applying the process of financial settlement of unintended exchange - FSkar.

What is FSkar?

Due to the physical nature of an interconnected network, there are unavoidably deviation between the intended exchange and the actual physical flow – unintended exchange. There are three different components of these deviations:

1. frequency containment process energy - FCP energy - results from the activation of FCR across the synchronous area and is an intended component,
2. ramping period energy - RPE - results from the application of ramps to the scheduled exchanges and is also an intended component, and the third component is
3. actual unintended exchange.

The aim of the FSKAR process is to perform the accounting and settlement of these three components with a price.

Settlement

According the EBGL (Art. 50(3) and 51(1))  settlement of the unintended exchange with price is required. FCP energy and unintended exchange are settled at the same price (based on day-ahead market prices) and the RP energy at a zero price.

Input parameters

Input parameters for the calculation are the scheduled energy exchange E_sch , the exchanged energy between the LFC areas/blocks E_ex as reflected in the accounting data, the frequency deviation ∆𝑓 and the K-factor.

Output parameters

The output of the accounting function are E_FCP , E_RP and E_ue.

                                         

Price determination

Input parameters for the calculation of the settlement price for each settlement period are the day-ahead market prices (DAMP), E_ue , E_FCP i ∆𝑓. There are two components, one frequency independent and second frequency dependent.

Frequency-independent component:

Frequency-dependent component:

Legislative framework

• Go live June 1^st 2021
• Croatian Energy Regulatory Agency (HERA) decision June 9^th 2020

• FSKAR Implementation Guide
• FSKAR TRANSPARENCY REPORTING Implementation Guide
• All continental European TSOs’ proposal for Common settlement rules for intended exchanges of energy as a result of the frequency containment process and ramping period in accordance with the Article 50(3) of Commission Regulation (EU) 2017/2195 of  23  November 2017 establishing a guideline on electricity balancing
• All continental European TSOs’ proposal for Common settlement rules for all unintended exchanges of energy in accordance with the Article 51(1) of Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing