Adopting a standard approach for ALEGrO, like the net transfer capacity calculation used for Nemo Link and other HVDC interconnectors, was not possible, because the capacity of ALEGrO and optimal flow of energy across it could not be determined in isolation. This led the teams involved to create and adopt a new approach that had never been used before: the evolved flow-based approach (EFB), which is one step further than the flow-based approach implemented in 2015 across the Central Western Europe (CWE) capacity calculation region. (Note that since 2015, the CWE capacity calculation region has been merged with the Central Eastern Europe capacity calculation region, forming a new region called Core. In June 2022, the flow-based market coupling mechanism was extended to cover the day-ahead time frame across all 13 countries of Core.)
As part of the EFB approach, no ex-ante assumptions about the direction or magnitude of the flow of energy across the interconnector are taken. Instead, the set point of ALEGrO — the optimal flow of energy across the interconnector regarding the distribution of energy flows in the CORE region — is defined as a variable in the market coupling algorithm, thus considering the impact of cross-border exchanges on different critical grid elements. As a fully controllable dc device, ALEGrO is used to steer the flows of energy or distribute them in the most efficient way between itself and the rest of the ac grid, in such a way that congestion is minimized and prices for consumers optimized.
The adoption of the EFB approach means nonintuitive flows may occur; this happens when the market coupling algorithm determines the most optimal flow across the interconnector is from one country experiencing high energy prices to the other country experiencing low prices. Such nonintuitive flows relieve congestion on other critical elements across the ac grid and enable cross-border exchanges to be maximized through other paths of it, with the aim of maximizing the value (or socioeconomic welfare) created by market coupling.
Strong collaboration and regular communication between Elia, Amprion and the neighboring TSOs of TenneT in the Netherlands and RTE in France were essential for the adoption and success of the EFB approach. Additionally, numerous phases of testing and simulations of the EFB approach with ALEGrO were undertaken. Over a six-month period, before the interconnector was commissioned, the results of daily simulations of the grid with the existence of ALEGrO were compared with the actual operation of the grid without it. During this time, Elia and Amprion published the results of capacity calculation and market coupling processes as if ALEGrO were already in operation. These simulations, launched in May 2020, suggested almost €100 million of socioeconomic welfare could be generated for consumers and producers across the CWE region.
The EFB approach was successfully implemented once ALEGrO was commissioned in November 2020, constituting a first step toward including flexibility in the interconnected European market for electricity. The approach has demonstrated controllable devices such as HVDC interconnectors can be optimized.
Maximum Flexibility
The ALEGrO interconnector was built to efficiently enhance Belgium’s and Germany’s security of supply, facilitate the integration of renewable energy into the electricity grid and contribute to price convergence. From the very beginning, Elia and Amprion — the Belgian and German TSOs, respectively, that built the interconnector — were aiming to ensure ALEGrO could offer maximum flexibility to the market, especially in the day-ahead time frame.
Given its location in the middle of the European meshed ac grid and its use of dc technology, the EFB methodology was adopted for the first time, meaning exchanges between Belgium and Germany and across the entire CWE capacity calculation region could be optimized.
Helen Burgess ([email protected]) is a researcher and copywriter who works for the external communications team at Elia Group. She is from London and
is currently based in Brussels, Belgium.