Canadian Wind Energy Association Operations and Maintenance Summit

Transcription

1 Canadian Wind Energy Association Operations and Maintenance Summit David Short P.Eng. Director Power System Assessments January 30, 2018

2 Agenda Health and Safety Introduction and Context Operability Needs Market Renewal Program Future Market Evolution 2

3 Health and Safety Safety is an important component of the electricity business and is enshrined in our market rules that apply to Ontario-based resources participating in IESO markets Compliance with an IESO dispatch instruction is not required if it would endanger: Safety of any person damage Equipment or violate any Applicable Law Market participants are expected to notify the IESO if they anticipate or are experiencing a S.E.A.L concern The IESO will take all necessary control actions to meet the grid s reliability needs while ensuring participants have time to alleviate their S.E.A.L concern 3

4 Introduction and Context Ontario s Electricity Generation and Conservation, 2016 (TWh) Over the past decade wind resources have become a substantial part of Ontario s supply mix Market Renewal is aimed at operating our clean system as efficiently as possible Focus on incenting and enabling resources to meet system needs where and when required 6000 Cumulative wind capacity MW These resources are contributing to a clean and diverse supply mix in the province Over 90% of Ontario s generation is emission free 4

5 Operability Needs Increasing variable and distributed resources are driving need for additional intra-hour flexibility (as identified in 2016 Operability Study) Expansion of variable generation... IESO is addressing near-term operability needs through: and associated forecast error Resource shortfalls when variable generation is over-forecast Use of 30-minute Operating Reserve (enabling system flexibility stakeholder engagement) Expansion of regulation capacity (delivered through 2017 RFP) 5

6 Wind Resources and Flexibility IESO s Renewables Integration Initiative (2013) improved visibility, forecast and control of wind resources Subsequently, wind resources have proven very capable of following dispatch instructions and helping to manage surplus generation IESO is currently exploring opportunities to expand participation in operating reserve, another opportunity for wind resources to deliver system flexibility In the longer-term, the IESO will work closely with stakeholders to define flexibility services and ensure all resources that are capable can compete to provide those services 6

7 Market Renewal Overview Mission Market Renewal will deliver a more efficient, stable marketplace with competitive and transparent mechanisms that meet system and participant needs at lowest cost. Initiatives Better align price and dispatch with a Single Schedule Market Implement a financially binding Day-Ahead Market Introduce Enhanced Real-Time Unit Commitment to improve commitment decisions Meet incremental capacity needs with an open and competitive Incremental Capacity Auction Expected to result in up to $5.2 billion in efficiency improvements 7

8 Market Renewal in the Big Picture Market Renewal is a major step towards a market where: Required services are unbundled and well-defined Services are competitively acquired All resources can compete to provide services when and where needed Near Term Interim Flexibility Capacity Exports OR Changes DR Auction Enhancements Market Renewal Single Schedule Market Day-Ahead Market Enhanced Real-Time Unit Commitment Incremental Cap. Auction Future Change Environmental Objectives? New roles for LDCs/DERs? Enduring flexibility products? Other? Market Enhancements 8

9 Market Renewal: Key Areas of Interest for Wind Resources Single Schedule Market Locational pricing for suppliers will impact future energy market revenues Wind generators will want to understand how their resources may be affected Day-Ahead Market DAM will introduce financial commitments day-ahead Wind resources will want to understand their obligations and how forecast uncertainty will be managed Incremental Capacity Auction ICA is a new way of procuring capacity Wind resources will want to understand how their capacity will be qualified and their performance obligations Interested parties are encouraged to participate in the Market Renewal stakeholder engagements 9

10 Non-Emitting Resource Subcommittee As part of Market Renewal, the IESO has launched a non-emitting resource subcommittee (open to all interested parties) The subcommittee will ensure the unique characteristics and concerns of non-emitting resources are reflected in Market Renewal and the future market The committee will develop a report for Q3/ that addresses 3 focus areas: 1. Participation: future integration and barriers to participation for non-emitting resources in the proposed Market Renewal design 2. Market Efficiencies: market impacts associated with higher levels of non-emitting resources with very low to zero marginal costs 3. Commercial Mechanisms: the potential need for additional incentive mechanisms to value environmental attributes and support net zero / low carbon emission facilities 10

11 Request for Information (RFI) Objectives To support Market Renewal and the work of the subcommittee, the IESO is launching an RFI for non-emitting resources The RFI is aimed at better understanding: 1. The complete set of services that existing and new non-emitting resources can provide to the system 2. The barriers that may prevent these resources from delivering value to the system An initial webinar was held in December and stakeholder feedback has been received IESO is targeting posting a draft RFI in early February,

12 In summary Technological changes mean wind facilities can potentially provide different services to help meet system needs Through Market Renewal, the IESO is in the process of laying a foundation for the future by unbundling our services and ensuring a level playing field for participation The IESO is committed to working with the wind industry to ensure that we identify short and long-term opportunities for leveraging non-emitting resources for today s and tomorrow s market 12

13 QUESTIONS & COMMENTS