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SCED Power Balance Penalty Curve Resmi Surendran.

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Presentation on theme: "SCED Power Balance Penalty Curve Resmi Surendran."— Presentation transcript:

1 SCED Power Balance Penalty Curve Resmi Surendran

2 Objective Explain the Power Balance Penalty Curve Discuss the values for the Power Balance Penalty Curve – MW break points – Penalty for violation up to the MW break point Not to discuss the optimal mechanism for setting scarcity pricing.

3 Power Balance Penalty System Lambda is the change in the objective value obtained by relaxing the Power Balance constraint by 1MW Power Balance Penalty is the maximum cost paid for one addition/less MW of generation to meet the Power Balance constraint.

4 SCED Constraints Power Balance Constraint sum (Base Point) + under gen slack – over gen slack = Generation to be dispatched Transmission constraint sum( Shift Factor * Base Point) – violation slack ≤ limit Ramp Limit constraint LDL ≤ Base Point ≤ HDL

5 SCED Objective Minimize + Cost of dispatching generation integral (offer cost * MW dispatched) + Penalty for violating Power Balance constraint sum (Penalty cost * violation amount) + Penalty for violating transmission constraint sum (Penalty cost * violation amount)

6 PB Violation with no Transmission Constraints Only constraints active will be System demand & ramp Given enough SURAMP, PB will not be violated as long as the aggregated offer curve required to meet demand is less than PB penalty If PB Penalty is lower than SWCAP then PB will be violated in SCED1 before dispatching Resources on Output Schedule

7 PB Violation with Transmission Constraints Gen with +ive SF (a)SF * TC_Penalty + Offer cost (b) PB_penatly – If (a) > (b) - moved down for resolving constraints – If (a) < (b) - moved up for meeting Power Balance Example – Violated TC penalty $3500; 0.2 SF; $100 0ffer cost ; $500 PB penalty – 1 MW reduction in generation will reduce TC violation by 0.2 MW – will reduce objective by 0.2 * 3500 due to reduction in TC violation and $100 by not providing 1MW energy violate PB by 1 MW – Will increase objective by 1* $500

8 Power Balance Penalty Curve - Implementation 10 segment step curve MW break points – Sets amount violated for a given price Penalty for violation up to the MW break point – Sets system lambda for a given amount of violation

9 Factors affecting Power Balance Violation Ramp limited scenarios – Operational Philosophies – Extend of ramp being reserved for regulation – Amount of capacity on Output Schedule – Telemetry errors Capacity Scarcity – Operational Philosophies

10 Current Power Balance Penalty Curve Values Over Generation Penalty ($/MWh)-3,001-5,000 MW Cap Segment (MW)10,000100,000 Under Generation Penalty ($/MWh)3,0015,000 MW Floor Segment (MW)10,000100,000 equivalent to having extra capacity for meeting power balance violation at (+/-) 3001 $/MWh for violated MW from 0MW to 9999.999MW, and (+/-) 5000$/MWh for violated MW from 10000MW to 99999.999MW

11 Proposed Power Balance Penalty Curve MWPrice 1200 5250 10300 20400 30500 401000 502250 100000 3001

12 Factors Considered Extend of regulation that can be sacrificed Operational philosophies System Wide Offer Cap - $3000 Interaction with transmission constraints Interaction with proxy offer curves Market Trials and close loop test results

13 Future Areas of Improvement for Better Scarcity Pricing Prices not reflective of scarcity during UFR Load Resource deployment Reduction in prices due to Output Schedule adjustments during Non-Spin deployment from Resources on Output Schedule Dependence on MP submitted EOC to set scarcity pricing during Non-Spin and RRS deployment

14 Appendix

15 SCED Objective Min { Cost of generation dispatch + Sum ( Max Shadow Price * Slack variable)} + + Power Balance Penalty Curve value Max Shadow Price Generation dispatch cost Slack Variable

16 SCED constraints Power Balance Constraints: Transmission Network Constraints: Resource Constraints: Ramp Rate Constraints (HDL, LDL):

17 Offer Mitigation for SCED2 (1)Cap the Energy Offer Curves at the greater of the Reference LMP at the Resource Node or the Mitigated Offer Cap curve (2) Bound it at the lesser of the Reference LMP at the Resource Node or the Mitigated Offer Floor.

18 Proxy Offer Curve for Output Schedule

19 LMP during Congestion Resource moved down for congestion

20 LMP during Congestion Resource moved up for congestion

21 Transmission Constraints Penalty Current Values Maximum Shadow Price for Transmission Constraints – Base Case: $5,000/MW – Generic constraints : $5,000/MW – Post Contingency 345 kV: $4,500/MW 138 kV: $3,500/MW 69 kV: $2,800/MW

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