Renewable Integration: Market Schedule and CMSC, Communications for Variable Generation Dispatch, Market Participant Outreach

Transcription

1 IESOTP 268-3b Renewable Integration: Market Schedule and CMSC, Communications for Variable Generation Dispatch, Market Participant Outreach Technical Panel March 26, 2013

2 Agenda 1. Market Schedule Determination and Congestion Management Settlement Credits (CMSC): Design Changes 2. Communications for Variable Generation Dispatch 3. Market Participant Outreach and Readiness 2

3 QUESTIONS? Market Schedule and CMSC 3

4 Market Schedule, CMSC - Background MR R04 related to Market Schedules and CMSC for variable generators were accepted by stakeholders and approved by the IESO Board on November 29 th, 2012 Subsequently, proposed changes to the Market Schedule and CMSC design changes were made in response to further stakeholder feedback received through SE-91 These proposed changes were presented to SE-91 in February and feedback from stakeholders has been supportive 4

5 Market Schedule Previous Design Proposal Under current rules (MR R04): In dispatch intervals where a variable generation facility is operating under a release notification, the Market Schedule for that facility would be set equal to a telemetry snapshot taken at the end of the interval If MWs were uneconomic in the Market Schedule, this approach would have: prevented the Market Schedule from being set any lower than the telemetry snapshot; resulted in suppressed market clearing prices; and potentially exposed variable generation facilities to market clearing prices lower than their offers 5

6 Market Schedule Current Design Proposal Under MR R00: The Market Schedule for a variable generation facility will be no greater than the least of: the highest quantity reflected in submitted energy offers; the facility s full capacity less submitted outages; or a telemetry snapshot of the facility s output taken at the end of the interval (if operating under a release notification) OR the 5- minute forecast for the facility in that interval (if operating under a mandatory dispatch instruction) 6

7 Market Schedule Current Design Proposal (cont d) As a result of this change, the Market Schedule will: reflect the variable generation facility, operating under a release notification, to a quantity below its telemetered output when economically appropriate produce a market clearing price more reflective of the dispatchable resources available to satisfy demand 7

8 CMSC Previous Design Proposal Under the current rules (MR R04): If operating under a release notification: CMSC would not be calculated under any circumstance (whether economic in the MS or not) If operating under a mandatory dispatch instruction: CMSC would be calculated according to the existing MR R04 formula and subject to those conditions 8

9 CMSC Current Design Proposal Under MR R00: If operating under a release notification: CMSC will be calculated if the real-time unconstrained sequence has economically reduced the variable generation facility below its telemetered snapshot CMSC will not be calculated if the variable generation facility is fully economic for its telemetered snapshot If operating under a mandatory dispatch instruction: CMSC will be calculated according to the MR R04 formula and subject to those conditions (no change) 9

10 CMSC Current Design Proposal (cont d) If operating under a release notification and economically reduced in the unconstrained sequence, CMSC will be calculated as follows: CMSC = Operating profit based on Market Schedule Actual operating profit CMSC calculation will consider only the energy actually produced for comparison with the Market Schedule 10

11 QUESTIONS? Communications for Variable Generation Dispatch 11

12 Dispatch Workstation Communications Background: Currently, each dispatchable generator has a physical communication line dedicated to receiving dispatch instructions located at the generation facility or control centre Dedicated lines provide guaranteed availability backed by a vendor service-level agreement Each dedicated line is costly for the IESO to provide and maintain 12

13 Challenges for Variable Generators A number of variable generators that were surveyed plan to manage dispatch instructions through control centres outside of Ontario Dedicated communication lines crossing the border will: Require coordination with multiple telecommunication companies Likely require longer lead times for infrastructure installation Result in significant additional costs to extend a circuit out-ofprovince 13

14 Internet-based Dispatch Proposal: allow for the sending of dispatch instructions to dispatchable variable generators through an encrypted, secure path on the internet: Dispatch workstations could be located anywhere in North America with no additional infrastructure costs Performance equivalent to dedicated circuits Empirical evidence suggests that the reliability is equivalent to dedicated circuits 14

15 Internet-based Dispatch (cont d) Costs for the commercial-grade internet service will be borne by the variable generator In circumstances where an RMP already has a dedicated network provided by the IESO, internet based network will not be required Where problems exist with internet connectivity, the IESO will select an alternative communications method 15

16 QUESTIONS? Market Participant Outreach and Readiness 16

17 Renewables Integration (SE-91) May SE-91 Meeting proposed agenda: Centralized forecast accuracy and performance results Market Manuals Publication of embedded Variable Generator forecasts 17

18 Implementation Working Group Propose to create an Implementation Working Group to guide market trials (summer 2013) Forum for feedback on the process for variable generator transition to dispatchable operation Recommended participation targeted to operations and settlements staff Terms of Reference to be posted for review and then adopted at the first meeting Operational activities (e.g. registration, training, dispatch workstation deployment) to proceed in parallel 18

19 Stakeholder Consultation - IT Variable generator market participants will be familiar with upcoming IT changes through their participation in SE-91 and the Implementation Working Group consultations Implementation Working Group members will have a role in coordinating training and systems roll-out Market Trials will proceed once systems are ready and available to variable generators for testing purposes Market-facing changes will also be communicated through the IT Standing Committee and the Baseline process Meetings and materials for the IT Standing Committee found at 19

20 Thank you Questions? 20

21 QUESTIONS? Appendix Slides Market Schedule, CMSC Example 21

22 Example: Market Schedule Uneconomic in Unconstrained Sequence Variable generator is economic in constrained sequence In unconstrained sequence for Interval 2, variable generator is fully economic In unconstrained sequence for Interval 3, the offers for the variable generator are no longer economic Based on offers, MS for Interval 3 is set to 0 MW 100 MW 50 MW 0 MW HE4 Int 2 MS = 70 MW 03:05 03:10 03:15 HE4 Int 3 Act = 75 MW HE4 Int 3 MS = 0 MW Note: If variable generator was the marginal resource, the MS might have been increased by 0 to 75 MW 22

23 Example: CMSC Uneconomic in Unconstrained Sequence Variable generator is fully economic to its forecasted amount in the constrained sequence Offer price: -$10/MWh Market Schedule: 0 MW AQEI: 75 MWh MCP: -$25/MWh Energy : -$25 x 75 MW = -$ MW 50 MW 0 MW HE4 Int 2 MS = 70 MW CMSC = (MCP-Offer)x(MS-AQEI) = (-$25/MWh (-$10/MWh)) x (0 MW 75 MWh) = -$15/MWh x -75 MWh = $ :05 03:10 03:15 HE4 Int 3 Act = 75 MW HE4 Int 3 MS = 0 MW 23