Introduction to the Energy Imbalance Market (EIM Module 1)

Transcription

1 Introduction to the Energy Imbalance Market (EIM Module 1) Cynthia Hinman Lead Client Trainer Webinar July 25, 2013 The information contained in these materials is provided for general information only and does not constitute legal or regulatory advice. The ultimate responsibility for complying with the ISO FERC Tariff and other applicable laws, rules or regulations lies with you. In no event shall the ISO or its employees be liable to you or anyone else for any decision made or action taken in reliance on the information in these materials.

2 The topics of today s webinar EIM Definition Benefits of EIM What will change? Implementation timeline Closing thoughts References Page 2

3 By the end of today s session you will be familiar with: EIM Concepts Definition Benefits Players Changes Timing Implementation milestones Stakeholder process Where to find more information Reference materials Acronyms Page 3

4 INTRODUCTION What is the Energy Imbalance Market?

5 A balancing authority (BA) is responsible for operating a transmission control area. It matches generation with load and maintains electric frequency of the grid. There are 37 balancing authorities in the western interconnection. Today, each BA balances load and generation separately from other BAs. Page 5

6 Energy The electrical power produced or supplied by a generating resource Energy Imbalance Market Imbalance A situation where supply does not equal demand Market A method of resolving energy imbalance through submission and clearing of energy schedules and bids Page 6

7 Economic Benefits Energy Imbalance Market Reliability Benefits Renewable Integration Benefits Page 7

8 What s not part of EIM? Balancing Authorities responsibility for maintaining NERC and WECC requirements will not change EIM deals only with energy, not ancillary services or reserves EIM does not change the process for existing bilateral transactions or day-ahead transactions with the ISO Page 8

9 WHAT ARE THE BENEFITS OF EIM? Real-time visibility, geographical diversity, automated dispatch, enhanced reliability, renewable integration, least cost dispatch

10 Benefits EIM provides both reliability and economic benefits EIM implementation helps facilitate renewable integration Based on an existing platform, the ISO provides a flexible and scalable approach to EIM Page 10

11 Today each hour each balancing authority maintains load/generation balance by manually dispatching its own resources and maintaining extra reserves. BAA 1 BAA 2 BAA 3 Each BA examines their load/resource imbalance They manually dispatch resources from within their BAA to resolve the imbalance They do not have the benefit of other BA s resources to help with the imbalance Page 11

12 EIM resolves imbalances in real-time more efficiently through an automated 5 minute multi-baa energy dispatch service. BAA 1 BAA 2 All resources in the EIM footprint visible, even if not available for EIM dispatch The real-time EIM optimization will efficiently dispatch participating resources to maintain balance BAA 3 The real-time market looks ahead at the situation in upcoming intervals Page 12

13 Prior to each dispatch the EIM will automatically assess the entire footprint and determine the most effective dispatch Resource schedules Economic bids Outages Dynamic contingencies Forecasts 15 minute scheduling and 5 minute dispatch Interchange schedules Page 13

14 With all of this information on hand, EIM allows proactive resolution of potential reliability issues. Real-time visibility and situational awareness Market signals let resources know that they will be needed Optimization views multi-interval horizon in formulating the next 5-minute dispatch Provide data regarding system conditions and status of transmission availability Page 14

15 Example of real-time visibility and situational awareness BAA 1 BAA 2 Prior to the beginning of the hour all load an resources are balanced During the hour there is a forced generation outage in BAA 2, creating a significant supply shortfall. BAA 3 Generators from other BAAs that have placed bids in the market for their generation may be effective in relieving the imbalance in BAA 2 Page 15

16 The EIM optimization looks at a multi-interval horizon in determining how to dispatch resources for the next 5-minute interval. Interval 1 Interval 2 Interval 3 5 minutes 5 minutes 5 minutes 5 minutes 5 minutes Optimize for Interval 1 and beyond Dispatch for Interval 1 Optimize for Interval 2 and beyond Dispatch for Interval 3 Dispatch for Interval 2 Optimize for Interval 3 and beyond Page 16

17 A wider portfolio of resources to maintain system balance could reduce the quantity of reserves that are needed. Without EIM Available resources are within the BAA With EIM Available resources are within EIM footprint Must maintain extra generation on hand in the event they may be needed to resolve an imbalance The 5 minute market automatically procures generation needed to meet future imbalances Page 17

18 Another benefit is the geographical diversity of load and resources Load peaks change as sun moves westward Varying weather conditions Renewables resources may be available at different times Page 18

19 EIM allows the ability to more closely follow variable energy resources Hypothetical Wind Resource Page 19

20 Summary of benefits Automated 5 minute dispatch to balance load and generation that is more efficient than manual dispatch Provides a real-time view of transmission constraints, and dispatches resources to reduce and avoid congestion issues Improved situational awareness and real-time visibility in the EIM footprint Page 20

21 Summary of benefits Captures the benefits of geographical diversity of load and resources Balances in real-time with least cost generation Potentially reduces the quantity of reserves that are needed Page 21

22 WHAT WILL CHANGE? Changes for each type of affected entity.

23 Key Players Market Operator, the ISO, will run and settle the imbalance market. EIM Entity is a balancing authority that is enabling EIM to occur in their area, thereby allowing real-time load and generation imbalances to be settled through EIM. EIM Participating Resource is a resource within the EIM Entity Area represented by an EIM Participating Resource Scheduling Coordinator that has voluntarily elected to economically participate in the EIM. Page 23

24 Key Players EIM Participating Resource Scheduling Coordinator is responsible for all communications with the Market Operator on behalf on participating resources. EIM Entity Scheduling Coordinator is responsible for all communications with the Market Operator on behalf on the BA and non-participating resources. Page 24

25 EIM Entity Scheduling Coordinators submit balanced load and generation information to the ISO for the BAA Load Serving Entities (LSEs) Balancing Authority Area (BAA) Merchant Generators - Load - Participating Generator - Non-Participating Generator EIM Participating Resource Scheduling Coordinators submit bids to the ISO for participating resources Page 25

26 What will change? If you are: Transmission Provider (PacifiCorp) No change in role or responsibilities PacifiCorp Balancing Authority (PACE and PACW) Current NERC and WECC responsibilities will not change Will commit resources as they do today Will be EIM Entities The EIM Entity Scheduling Coordinator Will submit balanced schedules to the Market Operator Will communicate with Market Operator about outages and operating limits Interchange tagging Page 26

27 What will change? If you are: Load Serving Entity (LSE) - PacifiCorp (e.g. PAC C&T) - Third Party (e.g. DG&T) Resource (e.g. merchant generator) Submits load and resource information to Market Operator through the EIM Entity Scheduling Coordinator If electing to participate in EIM as an EIM Participating Resource Communicate availability through an economic bid submitted by EIM Participating Resource Scheduling Coordinator Provide outage information to Market Operator Respond to dispatch instructions Page 27

28 What will change? If you are: ISO Market Operator for EIM Dispatches EIM resources that have provided energy bids Settle EIM transactions Maintains current BA responsibilities in ISO BAA Existing ISO Scheduling Coordinator, Resource, Load, Importer, Exporter No changes will participate in day-ahead and real-time market Page 28

29 IMPLEMENTATION TIMELINES What are the milestones?

30 EIM stakeholder process proceeds in parallel with PacifiCorp implementation

31 Calendar of important events* * These dates are subject to change. Check the ISO calendar for the most current information.

32 July Sun Mon Tue Wed Thur Fri Sat July 2 2 nd Revised Proposal Posted July 2 Introduction to the Energy Imbalance Market webinar July 9 Stakeholder Meeting(Phoenix) July 25 Introduction to the Energy Imbalance Market webinar July 26 Written Comments Due July 30 PacifiCorp Stakeholder Meeting (Portland) Page 32

33 August Sun Mon Tue Wed Thur Fri Sat August 13 3 rd Revised Straw Proposal Posted August 13 Governance White Paper Posted August 20 Stakeholder Meeting (Portland) August 27 Written Comments Due Page 33

34 September Sun Mon Tue Wed Thur Fri Sat September 10 Tariff Framework Posted September 20 Written Comments Due on Framework September 23 Draft Final Proposal Posted September 30 Stakeholder Meeting (Folsom) Page 34

35 October Sun Mon Tue Wed Thur Fri Sat November Sun Mon Tue Wed Thur Fri Sat October 1 Tariff Framework Stakeholder Meeting (Folsom) October 8 Stakeholder Comments Due (Draft Final Proposal) November 7, 8 Board of Governors decision on EIM design November 12 Post Draft Tariff Language Page 35

36 December Sun Mon Tue Wed Thur Fri Sat December 5 Stakeholder Comments Due (Tariff) December 19 Tariff Stakeholder Meeting (Folsom) Page 36

37 CLOSING THOUGHTS Where to get more information, next steps

38 Benefits EIM provides reliability and economic benefits to California and the West EIM implementation helps facilitate renewable integration Based on an existing platform, the ISO provides a flexible and scalable approach to EIM Page 38

39 Upcoming training opportunities How EIM Works (EIM Module 2) Instructor-led training covering the proposed processes and rules; Dates will be announced EIM Operations (EIM Module 3) Instructor-led training covering new procedures for operations personnel; Dates will be announced EIM Back Office (EIM Module 4) Instructor-led training covering how EIM will affect settlements; Dates will be announced Page 39

40 Upcoming training opportunities Welcome to the ISO Free monthly webinar that provides a basic understanding of the ISO Next session August 15, 2013 Introduction to California ISO Markets Day long instructor-led session that covers the ISO s wholesale energy markets, roles and responsibilities, products and services Next session September 17, 2013 Page 40

41 More training information Training Information caiso.com>participate>training ( Training Calendar 2013 Course Catalog Contact the training department Page 41

42 Do you want more information about participating in EIM? Send all inquiries to: Page 42

43 REFERENCES Links to useful information

44 References California ISO webpage CAISO.com>Stay informed> Stakeholder processes>energy imbalance market; ncemarket.aspx Foundational information Proposal Agreement MOU Benefit Assessments Energy and Environmental Economics, Inc. FERC Market design development information Papers Stakeholder comments Page 44

45 References PacifiCorp webpage Pacificorp.com>About Us>Energy Imbalance Market; Press Release Fact Sheet FAQ Memorandum of Understanding Expected Market Benefits Report Page 45

46 Common acronyms Acronym ADS BA BAA BCR BOG BPM CAISO EIM FERC GMC Stands for Automated Dispatch System Balancing Authority Balancing Authority Area Bid Cost Recovery Board of Governors Business Practice Manual California Independent System Operator Energy Imbalance Market Federal Energy Regulatory Commission Grid Management Charge Slide 46

47 Common acronyms Acronym HASP IIE ISO LAP LSE LMP LMPM NERC OASIS PAC Stands for Hour Ahead Scheduling Process Instructed Imbalance Energy California Independent System Operator Load Aggregation Point Load Serving Entity Locational Marginal Price Local Market Power Mitigation North American Electric Reliability Corporation Open Access Same Time Information System PacifiCorp Slide 47

48 Common acronyms Acronym RTD RTED RTM RTPD RTUC SC SCED SCID SQMD STUC Stands for Real-Time Dispatch Real-Time Economic Dispatch Real-Time Market Real-Time Pre-Dispatch Real-Time Unit Commitment Scheduling Coordinator Security Constrained Economic Dispatch Scheduling Coordinator ID Settlement Quality Meter Data Short-Term Unit Commitment Slide 48

49 Common acronyms Acronym UIE WECC Stands for Uninstructed Imbalance Energy Western Electricity Coordinating Council Slide 49