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Alternative Proposal for Real-Time Demand Response in the Forward Capacity Market ISO New England Demand Resources Group October 19, 2006.

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Presentation on theme: "Alternative Proposal for Real-Time Demand Response in the Forward Capacity Market ISO New England Demand Resources Group October 19, 2006."— Presentation transcript:

1 Alternative Proposal for Real-Time Demand Response in the Forward Capacity Market ISO New England Demand Resources Group October 19, 2006

2 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 2 Summary of Existing Rules for RT DR in ISO-NE get more Category30 Minute Real-Time Demand Response Limited to resources with environmental restrictions? No; open to all dispatchable resources TriggerOP4, Action 9 or 12; dispatched as last line of defense Event WindowAvailable for dispatch all non holidays, Monday through Friday, 7 AM to 6 PM Capacity Payment100% of capacity value Energy PaymentGreater of $500 per MWh or Real-Time LMP for the duration of each event FundingFunded outside of market; costs allocated to network load Ability to Set PriceNo; price taker New RT DR Resource Capacity Limitations No limit to participation

3 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 3 Summary of ISO-NE Proposed Rules for RT DR in FCM get more Category of RT DRCritical Peak HourReal-Time Emergency Generation Demand Resource Limited to resources with environmental restrictions? No; applies to resources that can operate without environmental restrictions Yes; applies to resources that have significant environmental restrictions to operation TriggerSeasonal Peak Hours and Shortage Hours (OP4, Action 6 and above) OP4, Action 12 Event WindowAll non-holidays, Monday through Friday, 7 AM to 7 PM Capacity Payment100% of FCA Clearing Price50% of FCA Clearing Price Energy PaymentNo FundingFunded as integral part of capacity market; included in the ICR; able to offset FMCC Funded separately from the FCM; not included in the ICR; not able to offset FMCC; cost allocation to market participants not specified Ability to Set PriceYes; offer in to FCA as active bidder able to set price No; do not offer in to FCA, price taker New RT DR Resource Capacity Limitations No limits to the amount of capacity able to be offered Participation limit set by operable capability shortfall minus the tie-line support from external control areas, identified in the most recent Regional System Plan (RSP); lottery to be used if oversubscribed

4 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 4 Summary of Alternative Proposal for RT DR in FCM get more Category of RT DRShortage HourReal-Time Emergency Generation Demand Resource Limited to resources with environmental restrictions? No; resources can operate without environmental restrictions Yes; resources that have significant environmental restrictions to operation TriggerOP4, Action 9OP4, Action 12 Event WindowAll non-holidays, Monday to Friday, 7 AM to 6 PM Capacity Payment100% of FCA Clearing Price80% of FCA Clearing Price Energy PaymentReal-Time LMP FundingFunded as integral part of capacity market; included in the ICR; able to offset FMCC Ability to Set PriceYes; offer in to FCA as active bidder able to set price No; offer in to FCA as price taker New RT DR Resource Capacity Limitations No limits to the amount of capacity able to be offered Participation limit set by operable capability shortfall minus the tie- line support from external control areas, identified in the most recent Regional System Plan (RSP); lottery to be used if oversubscribed Supported by: Commonwealth of Massachusetts Division of Capital Asset Management, Conservation Law Foundation, ConsumerPowerline, Constellation NewEnergy, DemandDirect, Energy Curtailment Specialists, EnerNOC, North America Power Partners, Pinpoint Power, Verso Paper

5 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 5 Next steps Consider other alternatives –100% capacity payment of all RT DR –Separate consideration of RT DR from ODR High priority re-design parameters –Integrate all RT DR in capacity market including FCA –Do not increase hours of RT DR from current well functioning programs – maximize RT DR capacity provided Questions: –What is best forum/venue to fairly consider these alternatives? –What is needed timing for each step in decision making – working backwards from Feb 2008?

6 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 6 get more APPENDIX

7 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 7 ISO-NE Experience on August 2, 2006

8 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 8 Operating Procedure 4 Actions get more ACTION 6 (An ISO responsibility): –Begin to allow the depletion of 30-minute reserve. ACTION 9 (ISO responsible for plants, Local Control Centers for office complexes.) –Request voluntary load curtailment of Market Participants facilities in the New England Control Area. –Interrupt Real-Time Demand Response – 30 Minutes or Less Notification (that does not require a voltage reduction to be implemented). –Implement a Power Watch. ACTION 12 (ISO responsible for Demand Response, Local Control Centers for voltage reduction) –Implement a voltage reduction of five percent (5%) of normal operating voltage requiring more than 10 minutes to implement. –Interrupt Real-Time Demand Response – 30 Minutes or Less Notification (that requires a voltage reduction to be implemented). –(An ISO responsibility) Alert the New York Independent System Operator (NYISO) that sharing of reserves within Northeast Power Coordinating Council (NPCC) may be required.

9 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 9 OP4 Actions, OP4, Action 6-8, 10-11, 13+OP4, Action 9OP4, Action 12Notes StartEndLengthStartEndLengthStartEndLength 19-Jun-0616:5021:004:10 16:5020:003:10Boston area only 1-Aug-0615:0020:005:0016:0018:302:30 All of New England, except for the state of Maine 2-Aug-0612:1520:007:4512:1518:005:4513:0016:453:45All of New England 27-Jul-0512:3318:305:5712:3318:305:5712:3318:305:57SWCT area only 13-Aug-0516:1519:002:45 25-Oct-0517:5020:002:10 20-Aug-0415:3121:356:04 Boston area only 6-Dec-0417:0619:082:02 14-Jan-0417:0019:002:00 5-Dec-0317:3020:002:30 15-Aug-038:3023:4515:158:3023:4515:157:1323:4516:32Connecticut only 19-Aug-0215:3018:303:0015:3016:000:30 14-Aug-0212:4518:005:1512:4518:005:15 13-Aug-0216:0018:002:00 5-Aug-0214:4018:153:35 23-Jul-0213:3714:501:13 26-Jun-0214:0017:003:00 10-Aug-0111:0614:303:2411:0614:153:09 9-Aug-0111:4221:009:1811:4221:009:1814:0321:006:57 7-Aug-0114:4522:007:15 25-Jul-0111:3020:008:3011:3020:008:30 24-Jul-0111:4018:106:3011:4018:106:30 23-Jul-0115:4520:004:15 Source:

10 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 10 OP4 Actions, Total OP4, Action 6-8, 10-11, 13+OP4, Action 9OP4, Action :558:156: :525: : :4515:1516: :035: :1227:276:57

11 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 11 CT and SWCT: Real-Time 30 Minute DR, CTSWCT Oct Sep Aug Jul-06N/A Jun May-06N/A Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun-05N/A May Apr Mar Feb Jan Dec Nov Oct Sep-04N/A Aug Jul Jun-04N/A May Apr Mar Feb Jan Source: ISO-NE DRWG meeting materials.

12 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 12 Operable Capacity Margin – Summer, 50/50 get more

13 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 13 Operable Capacity Margin – Summer, 90/10 get more

14 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 14 Operable Capacity Margin – Winter, 50/50 get more

15 © 2006 EnerNOC, Inc. All Rights Reserved – Strictly Confidential, Permission Required for Distribution 15 Operable Capacity Margin – Winter, 90/10 get more


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