CAISO Energy Imbalance Market Dr. Khaled Abdul-Rahman Executive Director, California ISO

Transcription

1 IEA Electricity Security Advisory Panel (ESAP) & Council of European Energy Regulators (CEER) Workshop V - Regional Resource Adequacy CAISO Energy Imbalance Market Dr. Khaled Abdul-Rahman Executive Director, California ISO January 15, 2015

2 Outline Energy Imbalance Market (EIM) Renewable Integration Page 2

3 EIM Major Milestones Feb 2013 EIM MOU Apr 2013 ISO + PAC sign Implementation Agreement & file with FERC Nov 2013 BOG approval Jan 2014 EIM tariff file with FERC Nov 2014 EIM activation Mar 2013 BOG Authorization May 2014 FERC approval Slide 3

4 Energy Imbalance Market Builds on existing market platform No critical mass required Easily scalable, offering lowcost, low risk option to new entities No exit fees Preserves BAA autonomy, including compliance, balancing, and reserve obligations Page 4

5 EIM uses existing structure to provide gradual participation EIM participation can develop gradually EIM participants will have transmission rights to reach other participants Assumes 10% of participating areas energy is in EIM, but this can vary ISO can leverage existing market and energy management systems to enable ready implementation Existing structure also satisfies regulatory requirements Independent non-profit corporation Credit policy and financial reporting Market monitoring Page 5

6 A participant incurs a one-time cost to join and ongoing fees based on usage One time 3 x Total annual energy usage Example: licensing fees, servers and set up On-going Usage rate 19 x MWh of EIM energy Example: staff and portions of ISO systems used to support EIM functionality Page 6

7 The California ISO proposal recognizes the need for a governance solution. Enable participants to govern the EIM Acknowledge that EIM rules will evolve over time with consideration of the costs and feasibility Allow participants to enter and exit the EIM on terms that are clear and agreed-upon Recognize FERC jurisdiction over EIM while avoiding direct FERC regulation of EIM participants Page 7

8 EIM provides multiple benefits Today: Each BA must balance loads and resources within its borders. In an EIM: The market dispatches resources across BAs to balance energy BA BA BA BA BA BA BA BA EIM Benefits Reduce costs by serving imbalance from most economic resources Enhances reliability by improving system visibility and responsiveness Results in more efficient dispatch of resources within/between BAAs Leverages geographical diversity of loads and resources in the market footprint Page 8

9 EIM expected to provide significant net benefits ISO/ PacifiCorp study (in millions) ISO/NV Energy study on incremental benefits (in millions) APS study (in millions) annual benefits $ $129.0 $9.0 - $18.0 (2017) $ $29.0 (2022) TBD start-up costs approx. $20.0 ($2.5 to ISO) approx. $11.20 ($1.10 to ISO) TBD ($1.0 to ISO) annual ongoing costs approx. $3.00 ($1.35 to ISO) approx. $2.60 ($0.75 to ISO) TBD ($0.65 to ISO) Benefits primarily derived from: Reduced flexibility reserves More efficient dispatch, within and across BAs Reduced renewable energy curtailment Page 9

10 EIM deployment update Smooth transition on November 1 with PacifiCorp relative to scope of implementation. EIM dispatching participating resources as designed to balance real-time supply/demand across the EIM areas. Optimized transfers benefiting both supply and demand. Experienced some transitional data transfer, software issues and process learning. Tuning new business practices to enhance information flow between operations and market inputs. ISO will track EIM regional benefits and provide quarterly reports to stakeholders Page 10

11 1-Nov 2-Nov 3-Nov 4-Nov 5-Nov 6-Nov 7-Nov 8-Nov 9-Nov 10-Nov 11-Nov 12-Nov 13-Nov 14-Nov 15-Nov 16-Nov 17-Nov 18-Nov MWh 15-minute EIM transfers between PacifiCorp and ISO (+) PacifiCorp to ISO / (-) ISO to PacifiCorp California to PAC PAC to California Page 11

12 The ISO is committed to working cooperatively with the rest of the West to improve reliability and efficiency to benefit the entire region Page 12

13 EIM & Renewable Integration Page 13

14 Current and projected renewable generation capacity in operation within the ISO Slide 14

15 MW Potential over-generation (LTPP Scenario March, 24, 2024) 24,000 23,000 22,000 21,000 20,000 Installed Capacity (MW) Nuclear 2,300 Biomas 583 Biogas 320 Geothermal 1,404 QF 5,243 Small hydro < 30 MW 1,163 Imports 3,500 LF Down 2,000 Reg. Down ,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Regulation down Load Following Down Biomas Small Hydro Geothermal Nuclear Qualifying Facilities Net Load (No DER) Net Load (DER) QF Nuclear Geothermal Small hydro < 30 MW Biomas Biogas LF Down Reg. Down Net_Load_DER Net_load_No_DER Slide 15

16 RPS Curtailment in % RPS Scenario Page 16

17 A range of options are available for addressing the identified flexibility and curtailment issues. Modify curtailment provisions in power purchase agreements to reconcile with RPS priorities Increase energy storage and demand response Achieve time-of-use rates aligned with regional and seasonal system conditions Electrification of transportation and related managed charging Reduce fleet minimum load burden by increasing fleet flexibility Deeper regional coordination with other balancing authorities Page 17

18 Questions / Discussions? For more information, please contact: Khaled Abdul-Rahman kabdul@caiso.com Page 18