Implementing new capacity mechanisms to comply with EU regulations
Our client is a European Transmission System Operator (TSO). The Network Code on Capacity Allocation Mechanism, a.k.a CAM NC aims to increase cross-border trading and improve market liquidity. One measure of CAM NC is the obligation to put in place an ‘Overnomination’ mechanism. It is an automatic offering of the extra capacity to grid users when normal capacity is sold out.
Business Case
Our client had a key development project concerning a gas pipeline in Germany, supplying Norwegian gas to Switzerland and Italy. As a TSO they have to commercialize the system’s capacity, including the overnomination mechanism. irex consulting was requested to assure compliance on this German project.
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Results
The new mechanism for overnomination of the German pipeline was successfully implemented. We adhered to our customer’s way of working in delivering this type of projects. Specifically, we adopted the scrum methodology, drew our process models respecting BPMN notation rules and fully complied with UML in writing our business and functional specifications. The mechanism was deployed on time, so our client is now fully compliant with European legislation.
Next to compliance, the new mechanism has business benefits as well. It will increase revenues for our client by maximizing the pipeline’s sold capacity.
Deliverables
We were involved in this project from beginning to end. In the initial phase, we conducted a business analysis by gathering the requirements from all stakeholders. This first step resulted in an elaborate document, describing the business view on the project. In a second phase, we did a functional analysis. This led to a package of technical diagrams, translating the business requirements into functional IT specifications, enabling the development team to write the code. We actively guided the developers by providing assistance and feedback. Next, we defined test cases, set-up a test strategy and coordinated its execution with business users. To conclude a successful implementation track, we trained the application end-users and presented the new overnomination mechanism to business managers.
irex Consulting boasts knowledge of the natural gas market in both business and technical domains. The combination with our experience in business and functional analyses made irex the ideal partner to model this new mechanism and guide its implementation in our client’s complex value chain.
Our client praised our degree of conceptual thinking while adopting a focused ‘do-mentality’ and continued collaborating with irex on other complex change projects.