Variable Energy Resource (VER)

Transcription

1 symposium Variable Energy Resource (VER) Contracts In The CAISO Market: Addressing Origination, Administration And Contract Issues Hyatt Regency Century Plaza EUCI is authorized by IACET to offer 1.1 CEUs for the course. 1

2 Overview There is no status quo in power procurement any more only a sequence of evolving scenarios. That is one of several reasons why long-term utility contracts will undergo many adaptations to conform to the changes required by the CAISO market. Utilities and developers each want to lock in the prices and performance terms based on today s risk assessments and market requirements. In a stable well-established market structure, a long-term contract might reasonably be expected to look very similar at expiration as at execution with a similar allocation of risks and rewards. This symposium will examine how power procurement contracts with special emphasis on wind, solar and other VER products should be structured to reflect the evolving realities associated with the California power market, as well as methods to optimize the administration and management of these contracts. Discussions will focus on particular performance areas that can reduce contract payments and what actions can be taken to manage those risks. At the end of this symposium, attendees will be able to identify and evaluate risk and performance issues across a broad spectrum of the contracting process. Participants will learn how to apply mitigation strategies at each particular phase of the process. Who Should Attend Organizations: Project evelopers, Utilities, Merchant and Independent Power Producers, Engineering Firms, Regulatory Agencies, Legal Counsel, Financiers Operational Functions: Contract Managers/Administrators, Procurement, Asset Managers, Originators/Negotiators, Finance, Regulatory, and Settlements Learning Outcomes Recognize the financing/risk trade-offs at the renewable and variable energy contract origination stage Formulate contracts that properly take into account market operations and performance considerations Manage effectively implementation and administrative requirements Assess ISO and balancing area requirements to adequately address and level out intermittency issues that complicate contract fulfillment Identify and specify necessary contracts adjustments to account for the dramatic regulatory and grid system changes over the past few years 2

3 Agenda Monday, December 8, :00 8:30 a.m. registration & Continental Breakfast 8:30 a.m. 5:00 p.m. symposium Timing 12:00 1:00 p.m. group Luncheon A assessing the Financing/Risk Trade-offs (Origination) The Risk/Reward Equation o utility buyers weighing ratepayer risk vs. developer costs o utility development Evaluating risk perception o Credit risk o Developer risk o interconnection risk o Technology risk o Performance risk o Force majeure risk Regulatory risks associated with change-in-law and change-in-tariff provisions Understanding how to create a successful bid for a specific solicitation How risks influence the selection of financing instruments Market Operations and Performance Considerations Understanding the market o Technical and operational requirements of performing within an ISO Merchant off-take structures beyond the PPA o scheduling and coordination o selling into real-time markets o Types of product in real-time markets Market design for flexible resources o Long-term procurement of flexible resources A addressing and Leveling Out Intermittency Issues Relationship between the CAISO and the project o Does/must all information pass through the Scheduling Coordinator (SC)? o is there any information a project may obtain directly from the CAISO v. the SC? Changes in the PIRP process and settlements Process and timing for certification of new VER generators for resource adequacy Should storage become part of the standard project requirement? Recent changes to the outage management system Self-Schedules and associated requirements o What are the advantages and disadvantages? Making a PV solar facility dispatchable (via ADS) o What are the advantages and disadvantages? o What is the difference between an economic curtailment and a curtailment due to congestion? What are the potential economic/regulatory penalties for not following an instruction for the above? What happens if the PV solar operator observes a problem with the CAISO schedule either via the self-schedule or ADS? o How is this handled? Through the SC? Who is responsible for any prospective lost revenue due to an error generated by the CAISO system? How forecasting and scheduling have changed under FERC Order 764 o How have energy imbalance charges been tracking comparing pre and post 764? Upcoming changes related to the energy imbalance market o Will most generators in CAISO be impacted, particularly renewables providers? 3

4 Agenda Tuesday, December 9, :00 8:30 a.m. continental Breakfast 8:30 a.m. 12:00 p.m. symposium Timing 12:00 p.m. Program Adjourns Managing Implementation and Administrative Requirements Managing the long-term contract life cycle from origination to termination Settlements the hidden costs of complex Power Purchase Agreements Accounting monitoring project and fund performance (finance) Curtailment process and real-time response(s) Is physical performance the only risk hedge available to developers/owners? H how Contracts Are Changing to Address Performance Issues Types of contracts o PPAs o operations & maintenance Risk exposure under various contract scenarios Comparing terms then (5 years ago) to now (2014) and what will be advisable going forward Areas of special attention Performance guarantees INSTRUCTORs Jim Price / Senior Advisor in Market Development and Analysis / CAISO Jim Price is a Senior Advisor in Market Development and Analysis, in the Market Quality and Renewable Integration Division of the California ISO, providing technical analysis and policy development of efficient, well-functioning wholesale electricity markets. Dr. Price s work on market design includes integration of a range of energy and ancillary service products in the wholesale market, and coordination between the ISO s markets and other regions in the west. This includes working with other organizations on solutions for the integration of large amounts of renewable resources, dynamic transfers, demand response, and 15-minute realtime scheduling options to reduce barriers to integration of renewable resources and address other market inefficiencies, in addition to the Energy Imbalance Market that is now being implemented. He received his B.S. from California Institute of Technology, and M.S. and Ph.D. from Stanford University in infrastructure planning and management. After working for the California Public Utilities Commission, and California Office of Economic Policy, Planning, and Research, in a variety of areas including market development and rate design, he came to the California ISO in Alex Papalexopoulos / President & CEO / ECCO International, Inc. (ECCO) Dr. Alex Papalexopoulos is President and founder of ECCO International, Inc., an energy consulting company that provides consulting services and expert advice on electricity market design, power systems, energy management systems and software issues within and outside the U.S. to a wide range of clients such as regulators, governments, utilities, independent system operators and regional transmission organizations, power exchanges, marketers, brokers and software vendors. ECCO International is currently involved in various energy restructuring projects around the world including North America, Europe, South America and Asia. Prior to forming ECCO International in 1998, Alex was a director of PG&E s Electric Industry Restructuring Group in San Francisco, California. In that capacity he became heavily involved in all aspects of the California restructuring from defining the market rules, drafting filings for the FERC, designing market protocols, developing functional specifications, and working with the software solutions vendors to implement operational and business software to support the California markets. He has an extensive background in power systems design, simulation, analysis and computational techniques with specialization in grid and merchant functions, pricing, power systems operations, power generation, transmission planning, transmission and power contracts, system dynamics and real time control. He has made substantial contributions in the areas of network grid optimization and pricing, ancillary services, congestion management, competitive bidding, forward and real-time energy markets and implementation of EMS applications and real time control functions and forecasting in a utility environment. 4

5 INSTRUCTORs continued Tom Cook / Director of Renewable Integration / ECCO International, Inc. (ECCO) Tom Cook is Director of Renewable Integration, ECCO International, Inc. (ECCO). In his role at ECCO, Mr. Cook supports renewable energy clients to optimize their contract revenue and strategize cost-effective risk mitigation. Prior to joining ECCO International, Mr. Cook spent over 30 years in the electric utility industry. The last 5 years were as Manager of Contract Compliance and Analysis for Southern California Edison in Rosemead, California. He has a wide background in powerplant and system Operations & Maintenance, Reliability, and Root Cause Analysis, along with Instrumentation and Distributed Control Systems. His experience includes origination, negotiation, administration, and financial settlement for conventional, CHP, transmission, gas, wind, solar, and geo-thermal contracts. While at SCE, Mr. Cook exercised oversight of a resource portfolio with over $5 billion in annual invoicing. In addition to his MBA from Pepperdine University, he possesses certificates in Statistical Process Control, and Six Sigma Lean from several universities. Instructional Methods This course will use PowerPoint presentations and group discussions. Requirements for Successful Completion of Program Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit. Credits EVENT LOCATION EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard. EUCI is authorized by IACET to offer 1.1 CEUs for the course. A room block has been reserved at the Hyatt Regency Century Plaza, 2025 Avenue of the Stars, 90067, for the nights of December 7-8, Room rates are $199, plus applicable tax. Call for reservations and mention the EUCI course to get the group rate. The cutoff date to receive the group rate is November 7, 2014, but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. register 3 send 4th free Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify. PROCEEDINGS The proceedings of the course will be published, and one copy will be distributed to each registrant at the course. 5

6 EVENT LOCATION please register the following A room block has been reserved at the Hyatt Regency Century Plaza, 2025 Avenue of the Stars, 90067, for the nights of December 7-8, Room rates are $199, plus applicable tax. Call for reservations and mention the EUCI course to get the group rate. The cutoff date to receive the group rate is November 7, 2014, but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. Variable Energy Resource (VER) Contracts In The CAISO Market: Addressing Origination, Administration And Contract Issues : US $1395 Early bird on or before November 28, 2014: US $1195 EUCI UCI has gathered during its 26 years organizing conferences. Sign me up for Energize Weekly. How did you hear about this event? (direct , colleague, speaker(s), etc.) Print Name Job Title Company What name do you prefer on your name badge? Address City State/Province Zip/Postal Code Country Telephone List any dietary or accessibility needs here CREDIT CARD Name on Card Account Number Billing Address Billing City Billing State Billing Zip Code/Postal Code Exp. Date Security Code (last 3 digits on the back of Visa and MC or 4 digits on front of AmEx) OR Enclosed is a check for $ to cover registrations. All cancellations received on or before November 7, 2014, will be subject to a US $195 processing fee. Written cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event or publication. This credit will be good for six months. In case of event cancellation, EUCI s liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at (201) EUCI reserves the right to alter this program without prior notice. 6