Presentation on theme: "Update on CAISO / PacifiCorp Energy Imbalance Market"— Presentation transcript:
1Update on CAISO / PacifiCorp Energy Imbalance Market Presentation to WECC Seams Issues & Market Issues SubcommitteesOctober 10, 2013Jim Price, Senior Advisor, Market Development & Analysis, CAISOAdditional info:
2Presentation overview: PacifiCorp implementation and EIM stakeholder process are in progress 20132014Implementation agreementFERCreviewImplementation workSystem testing market simulationBoard authorization 3/20/2013Filing 4/30/2013FERC acceptance 6/28/2013Process MergerGo live 10/1/2014tariff languageEIM stakeholder processFERCreviewExpand on principles in the MOUEstablish the project description and scheduleDescription based on EIM straw proposalSchedule identifies project tasksBoard authorization 11/8/2013FilingFERC acceptanceStakeholder meetings:4/11/2013 – Folsom6/6/2013 – Folsom7/9/2013 – Phoenix8/20/2013 – Portland9/30/2013 – Folsom
3March 2012: CAISO proposed a scalable approach for implementing Energy Imbalance Market (EIM) No critical mass required – each participant can enter EIM when readyPreserves participants’ autonomy and current practicesBalancing authorities balance and provide their own ancillary servicesBalancing authorities can trade bilaterallyParticipants retain all physical scheduling rightsFlexible modes of participation are availableBAA 1BAA 2BAA 3Confidential - Attorney Work Product - Prepared in Anticipation of Litigation
4CAISO proposed a scalable approach for implementing Energy Imbalance Market (EIM) network modelingtransmission monitoringBAAsbidding/self-schedulingintra-hour dispatchsettlements
5Benefits of Energy Imbalance Market Leverages existing CAISO marketEnhances reliability through improved situational awareness in CAISO and EIM footprintCaptures the benefits of geographical diversity of load and resourcesPotentially reduces reserve requirementsProvides easy entry/exit for EIM participation
6Major changes through stakeholder process include: Refined definitions and roles of participantsReplaced initial processes with process for EIM Participating Resources to submit hourly base schedules and resource plans via Market Operator, with EIM Entity review and adjustmentsSeveral refinements in offset & neutrality cost allocationsRefined under- and over-scheduling provisionsProvisions for unit commitment and flexible rampingRefined approach for Greenhouse Gas (GHG) compliance
7Energy Imbalance Market key definitions EIM Entity is a balancing authority, representing one or more EIM Transmission Service Providers that make transmission available to EIM, that enables the EIM to occur in its balancing authority area (BAA). By enabling the EIM, real-time load and generation imbalances within its BAA will be settled through the EIM.EIM Entity determines eligibility of resource types, and required transmission service, within its BAA. (15-minute economic bids on its interties? Dynamic transfers?)EIM Participating Resource is a resource located within the EIM Entity BAA that is eligible and elects to participate in the EIM.In the 5-minute market, eligible resources may include generators, participating loads & demand response, non-generator resources, and dynamic transfers.In the 15-minute market, imports and exports may also be eligible.
8EIM builds on FERC Order 764 for financially binding 15-minute functions in real-time market CAISOEIMDay Ahead ScheduleBase Schedule(basis of financialsettlement)15-Minute Unit Commitment & Energy Schedule, and Incremental AS Awards15-Minute Unit Commitment & Energy ScheduleReal-Time DispatchReal-Time Dispatch
9Market input data As needed Prior to operating hour (T-75 minutes) Resource operational characteristicsNetwork model topologyStatic contingencies observedPrior to operating hour (T-75 minutes)Economic bids and hourly base schedulesOngoingTransmission and generation outages15-minute base schedulesLoad and VER forecastsDynamic contingency listActual ETC/ATC scheduling limits and ETC uses
10EIM design includes functionality to submit base schedules and review/approve resource plans
11Timeline: Submission of hourly base schedules and resource plans Market 1Market 2Market 3Market 4T-75: Deadline for EIM Participating Resources to submit real-time bids & base schedules.Market Operator publishes advisory results at T-60. (Balanced? Feasible transmission?Sufficient flexible ramping?)Base schedules can be revised up to T-55.T-45: Market Operator publishes advisory results.T-40: EIM Entity may adjust base schedules.T-20: E-Tag deadline for intertie hourly transmission profile andenergy schedule for Market 1TT = Start of the HourT-37.5: Start of Market 1 optimizationEIM Entity Scheduling Coordinator has full visibility of all base schedules at all times.
12Load SchedulingOptions for load forecast for establishing base schedule:Use ISO forecast, orUse EIM Entity’s forecast, subject to under- & over-scheduling charges when errors exceed 5% thresholdEIM Entity defines Load Aggregation Points (LAPs)For example, internal to the CAISO LAPs are defined by large utility service territoriesThe number of LAPs must be weighed against the availability of multiple granular load forecastsCAISO will determine Load Distribution Factors (LDFs) using its state estimatorCAISO uses LDFs to distribute LAP forecast to individual nodes within the network model.
13Base schedule should be balanced prior to start of real-time market Load forecast from prior slideResource plans: base schedulesSelf-scheduled resourcesIntertie schedulesBase generation schedulesResource plans also include:Ancillary services reservations protected from dispatchOperational characteristics (e.g., ramp rate)Economic Bids=Base schedule must be balanced or they will be adjusted prior to start of EIM.
14Ancillary service requirements EIM Entity remains responsible for meeting ancillary services requirements per NERC and WECC, dispatching contingency reserves, and managing load reductionsReserve deployment & sharing schedulesCapacity to meet reserve sharing obligations is included in the resource plans used for base schedules. The capacity is protected for dispatch through EIM.EIM Entity is responsible for its share of DCS complianceEIM Entity deploys operating reserves and regulation in conformance with NERC, WECC, and reserve sharing group policiesIf reserves are dispatched, they will be subject to EIM imbalance settlement until reflected in the base schedule
15Market optimization uses the economic bids submitted at T-75 minutes CAISO will provide advisory feedback on schedules up to the binding 15-minute market, so base schedules can be developed without congestion15-minute process builds on FERC Order No. 764Multi-interval Security Constrained Unit Commitment, with 15-minute interval granularityImbalance energy = difference between base schedule and 15-minute schedule5-minute dispatch processMulti-interval Security Constrained Economic Dispatch, with 5-minute interval granularityImbalance energy = difference between 15-minute schedule and 5-minute dispatch
16Congestion management CAISO will manage congestion in EIM by automatically activating constraints, before flows approach capacityThis allows the EIM dispatch to try and resolve the congestionAlerts the EIM Entity that they may be required to initiate UFMPOnce activated, constraint will be enforced to maintain flows below the limitEIM will coordinate with WECC’s Unscheduled Flow Mitigation Procedure (UFMP) and Enhanced Curtailment Calculator (ECC)If EIM Entity initiates UFMP, CAISO will reflect the affected schedules in EIM dispatch, and enforce constraint limits as requested by RC.
17EIM Entity identifies resource constraints to address reliability issues which cannot be modeled CAISO will not issue exceptional dispatch instructions to EIM Entity resourcesCAISO’s dispatch will reflect reliability constraint within EIM area until the base schedule can be updatedAny resource constraint for reliability will be settled at the EIM LMP
18Publication of prices and other information Locational marginal prices for 15-minute market and RTD will be published on OASIS for all nodes and LAPs.Binding transmission constraints and shadow prices will be published on OASISLMP marginal cost of congestion component reflects congestion contribution from binding network constraintsAdditional market data will be published as in ISO marketSome data are subject to a non-disclosure agreement
19EIM settlement and accounting Settlement metering is required for generators. Options:CAISO Metered Entity, Scheduling Coordinator Metered EntityAllocation of uplift costs will minimize comingled charges between ISO and EIM Entities to the extent possible.Unaccounted-for energyInadvertent energyCAISO will maintain a dynamic schedule to track energy between EIM Entities and CAISONet scheduled interchange change every 5 minutes through the dynamic schedule to ensure AGC control accuracyHourly energy is updated on the e-Tag within 60 minutes of the end of the operating hourEIM Entity responsible for tracking and administering payment for inadvertent energy via WECC process
20EIM administration Administrative Costs Forecasting Services Administrative rate of $0.19 per MWh volume as calculated by:Generation = max (5% of gross generation, generation imbalance energy), plusLoad = max (5% gross load, load imbalance energy)Startup costs equal $0.03 times an EIM Entity’s total annual energy usageForecasting ServicesCAISO load forecast is included in Administrative RateVER forecasting available for $0.10 per MWhDispute resolution is through Customer Inquiry, Dispute and Information (CIDI)Market monitoring provided by CAISO
21Transmission ServiceTransmission capacity is made available through EIM Entities, and communicated through dynamic e-Tag and transmission registry:EIM Participating Resources can offer their contracted capacityNetwork service within EIM Entities allows redispatch up to available network capacityTSPs make uncommitted capacity availableReciprocity: Since transfer capability will be limited, as made available through EIM Entities, initial design proposes no charge for transmission for EIM transfers between EIM EntitiesEIM stakeholder process will continue discussion of transmission rate design for EIM transfers
22CAISO is committed to ensuring EIM design will properly account for Greenhouse Gas (GHG) costs Entities that import energy to California have obligation to surrender compliance instruments to California Air Resources Board (CARB)ISO will inform EIM Participating Resources of their net incremental EIM transfers to California for CARB complianceThe market optimization will consider GHG costs using GHG bids submitted by EIM Participating Resources
23Process for New EIM Entities Encourage interested parties to engage as early as possibleImplementation details depend on system complexity and timing of commitmentFuture implementations will occur on an annual commitment cycle with month lead timeImplementation requires significant network modeling changesMust align with CAISO spring and fall software release cycleNew entrants pay start up fee ($0.03 per MWh of demand)Payment will be established through implementation agreement filed with FERC
24Guiding objectives for governance drive toward a long-term independent EIM Prompt & direct inputAdaptable structurePromote successful implementationSTEP 1STEP 2Stakeholder Transition CommitteeRoles:Advise on EIM mattersPropose independent EIM structureIndependent EIM structure