2017 Integrating Public Policy Detailed Scope

Transcription

1 2017 Integrating Public Policy Detailed Scope Mike DeSocio Senior Manager, Market Design Market Issues Working Group October 19, 2016 NYISO Krey Corporate Center New York Independent System Operator, Inc. All Rights Reserved.

2 Background At the September 12, 2016 BPWG, stakeholders requested more detail on the scope of the Integrating Public Policy project This project is intended to investigate potential market impacts from the implementation of the New York Clean Energy Standard, and determine whether other wholesale products or alternatives for incorporating the cost of carbon into the wholesale market could improve market efficiency and address potential market impacts New York Independent System Operator, Inc. All Rights Reserved. 2

3 Integrating Public Policy Project Description Project Objectives include determining: The impact of New York s Clean Energy Standard goals on the current NYISO energy and capacity markets Study the impacts on the current NYISO energy and capacity markets from the high penetration of low carbon or carbon-free resources contemplated in 2030 by the CES Determine whether the existing wholesale market construct is sufficient to sustain reliable operations, maintain necessary generation, while incenting new generation Whether a redesign is needed in the wholesale market Study whether incorporating a state policy defined cost of carbon in the wholesale market would improve the overall efficiency of the NYISO energy and capacity markets Determine the overall change in costs to New York consumers Compare the costs and efficiency of internalizing the cost of carbon or utilizing a cap and trade mechanism or other alternatives or additions to a Renewable Energy Credit/Zero Emissions Credit mechanism Study whether other market products or changes to the existing market structure will be necessary to meet the anticipated reliability needs The impacts of other regional efforts for integrating public policy on the NYISO wholesale markets New York Independent System Operator, Inc. All Rights Reserved. 3

4 Detailed Scope & Schedule Utilizing NYISO s market analysis tools, benchmark potential market conditions in 2030 with enough renewable resources to meet New York s clean energy standard (CES) 1. Determine study assumptions Includes load shapes, renewable mix, storage penetration, & natural gas conditions 2. Vet assumptions with stakeholders 3. Forecast energy and capacity market conditions 4. Identify reliability concerns Scheduled for Q Q Work to be performed by NYISO staff New York Independent System Operator, Inc. All Rights Reserved. 4

5 Detailed Scope & Schedule Develop a number of options consistent with the operation of reliable wholesale markets to achieve New York s short, medium and long term decarbonization goals at least cost. This will consider various approaches that would internalize the cost of carbon emissions including the pros, cons and comparison of costs for each option. A whitepaper documenting the options will be provided to stakeholders for consideration discussion of next steps. Alternative market friendly approaches to be considered include: 1. Internalizing the Cost of Carbon 2. Cap & Trade Whitepaper planned for Q Work to be performed by a consultant New York Independent System Operator, Inc. All Rights Reserved. 5

6 Detailed Scope & Schedule Based on the study assumptions used to assess market conditions in 2030, determine whether additional ramping, startup and load-following products would be needed to support electric grid reliability through the energy and/or ancillary service markets. This would include evaluation of the flexibility products created in California, MISO and Greece. 1. Present analysis and findings to stakeholders 2. Work with stakeholders on determining which products best support electric grid reliability 3. Layout a plan with stakeholder involvement to develop and implement any recommended products Analysis to begin in Q Work to be performed by NYISO staff New York Independent System Operator, Inc. All Rights Reserved. 6

7 Next Steps MIWG - November 3, 2016 Discuss study assumptions and study approach MIWG January 2017 Discuss whitepaper Please provide any feedback to Mike DeSocio (mdesocio@nyiso.com) New York Independent System Operator, Inc. All Rights Reserved. 7

8 Questions? New York Independent System Operator, Inc. All Rights Reserved. 8

9 The Mission of the New York Independent System Operator, in collaboration with its stakeholders, is to serve the public interest and provide benefit to consumers by: Maintaining and enhancing regional reliability Operating open, fair and competitive wholesale electricity markets Planning the power system for the future Providing factual information to policy makers, stakeholders and investors in the power system New York Independent System Operator, Inc. All Rights Reserved. 9