Imbalance fee changing with time?

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Imbalance fee changing with time?

Jonathan
Hi... Im making some experiments and I am wondering how does the balance fee per energy unit changes. I realized that to determine if I get paid or charged because of the balance Power TAC sums the imbalance of the energy produced by all brokers including me and determines a sign. If the sign of my imbalance is equal to the general imbalance then I get charged an amount a = -c * abs(my imbalance in kwh), if it is opposite I get paid an amount a = +c * abs(my imbalance in kwh) for timeslot t. However, I realized that even if the overall imbalance and my imbalance are the same at timeslot t and t+1 (or t+k) the amount a I get charged is different. The only way this can happen is if abs(c) is different at each timeslot, however I cant figure out how abs(c) changes with time. Can you tell me if there is a c(t) or something that determines how c changes with time?

Thanks
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Re: Imbalance fee changing with time?

grampajohn
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Jonathan wrote
Hi... Im making some experiments and I am wondering how does the balance fee per energy unit changes. I realized that to determine if I get paid or charged because of the balance Power TAC sums the imbalance of the energy produced by all brokers including me and determines a sign. If the sign of my imbalance is equal to the general imbalance then I get charged an amount a = -c * abs(my imbalance in kwh), if it is opposite I get paid an amount a = +c * abs(my imbalance in kwh) for timeslot t. However, I realized that even if the overall imbalance and my imbalance are the same at timeslot t and t+1 (or t+k) the amount a I get charged is different. The only way this can happen is if abs(c) is different at each timeslot, however I cant figure out how abs(c) changes with time. Can you tell me if there is a c(t) or something that determines how c changes with time?
The imbalance charges are determined by a market-clearing process using the VCG algorithm. Details are in the spec. So it's not just a rate multiplied by the imbalance quantity. Instead you can think of it as an assessment of the value or cost of your individual imbalance to the rest of the market participants. Also, keep in mind that the price charged by the wholesale regulating market is a function of the magnitude of the overall imbalance, so the per-kWh charge increases as the imbalance rises. This works for both positive and negative imbalance. For a negative imbalance (the brokers collectively are short), the price is negative from the standpoint of a contributing broker (one whose own imbalance is also negative), and gets more negative as the magnitude of the overall imbalance increases. So it's possible for a small contribution to a large negative imbalance to cost as much as a large contribution to a small negative imbalance. For a positive imbalance (brokers have purchased too much energy), the price is normally slightly positive, and decreases as the magnitude of imbalance increases. It can go negative for large positive imbalances, which translates to having to pay someone to absorb energy they don't need.

Does this help?

John
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