Presentation on theme: "SCED Power Balance Penalty Curve"— 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 CurveMW break pointsPenalty for violation up to the MW break pointNot to discuss the optimal mechanism for setting scarcity pricing.
3 Power Balance PenaltySystem Lambda is the change in the objective value obtained by relaxing the Power Balance constraint by 1MWPower 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 Transmission constraint sum (Base Point) + under gen slack – over gen slack= Generation to be dispatchedTransmission constraintsum( Shift Factor * Base Point) – violation slack ≤ limitRamp Limit constraintLDL ≤ Base Point ≤ HDL
5 SCED Objective Minimize + Cost of dispatching generation integral (offer cost * MW dispatched)+ Penalty for violating Power Balance constraintsum (Penalty cost * violation amount)+ Penalty for violating transmission constraint
6 PB Violation with no Transmission Constraints Only constraints active will be System demand & rampGiven enough SURAMP, PB will not be violated as long as the aggregated offer curve required to meet demand is less than PB penaltyIf 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 SFSF * TC_Penalty + Offer costPB_penatlyIf (a) > (b) - moved down for resolving constraintsIf (a) < (b) - moved up for meeting Power BalanceExampleViolated TC penalty $3500; 0.2 SF; $100 0ffer cost ; $500 PB penalty1 MW reduction in generation willreduce TC violation by 0.2 MWwill reduce objective by 0.2 * due to reduction in TC violation and $100 by not providing 1MW energyviolate PB by 1 MWWill increase objective by 1* $500During scarcity if a transmission constraint is violated then transmission constraint and Power Balance constraint will interact with each other to determine whether to move up or move down a resource with +ive SF to the violated constraints if there are no other resources available.
8 Power Balance Penalty Curve - Implementation 10 segment step curveMW break pointsSets amount violated for a given pricePenalty for violation up to the MW break pointSets system lambda for a given amount of violation
9 Factors affecting Power Balance Violation Ramp limited scenariosOperational PhilosophiesExtend of ramp being reserved for regulationAmount of capacity on Output ScheduleTelemetry errorsCapacity Scarcity
10 Current Power Balance Penalty Curve Values Over Generation Penalty ($/MWh)-3,001-5,000MW Cap Segment (MW)10,000100,000Under Generation Penalty ($/MWh)3,0015,000MW Floor Segment (MW)equivalent to having extra capacity for meeting power balance violation at(+/-) 3001 $/MWh for violated MW from 0MW to MW, and(+/-) 5000$/MWh for violated MW from 10000MW to MW
11 Proposed Power Balance Penalty Curve MWPrice12005250103002040030500401000502250 100000 3001
12 Factors Considered Extend of regulation that can be sacrificed Operational philosophiesSystem Wide Offer Cap - $3000Interaction with transmission constraintsInteraction with proxy offer curvesMarket Trials and close loop test results
13 Future Areas of Improvement for Better Scarcity Pricing Prices not reflective of scarcity during UFR Load Resource deploymentReduction in prices due to Output Schedule adjustments during Non-Spin deployment from Resources on Output ScheduleDependence on MP submitted EOC to set scarcity pricing during Non-Spin and RRS deployment
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.