Concepts for Aggregation Participation In Demand Side Ancillary Service Program (DSASP)

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1 Concepts for Aggregation Participation In Demand Side Ancillary Service Program (DSASP) Donna Pratt Manager, Demand Response Products Demand Response Products New York Independent System Operator Market Issues Working Group February 17, New York Independent System Operator, Inc. All Rights Reserved. DRAFT FOR DISCUSSION PURPOSES ONLY

2 Topics Review of NYISO programs that allow Aggregation Tariff Definitions Registration/Enrollment Coordination with other DR programs Modeling, Market Qualification and Participation Metering and Measurement Additional Considerations Next Steps Appendix 2

3 NYISO Programs that currently allow Aggregation EDRP SCR DADRP NYISO Interface Curtailment Service Provider (CSP) Responsible Interface Party (RIP) Demand Reduction Provider (DRP) Types of Customers LSE/Direct Customer/Curtailment Customer Aggregator/Curtailment Program End Use Customers (EUC) LSE/Direct Customer/Small Customer Aggregator LSE/Direct Customer Types of reduction Curtailable Load and Local Generation Curtailable Load and Local Generation Curtailable Load Only Aggregation Type Aggregate within Load Zones Aggregation to ICAP PTID; Aggregate within Load Zones Aggregation to MIS PTID; Aggregate within Load Zones and same LSE Minimum size.5 MW.1 MW 1 MW minimum, Enrollment Network Modeling Monthly in DRIS Monthly in DRIS Via NYISO Customer Relations Not required Not required Required in MIS and CIM (Ranger) Bidding N/A N/A Measurement and Verification Estimation using a baseline method and after the fact metering Estimation using a baseline method and after the fact metering Day-Ahead with offer floor based on Net benefits test $ post April 15 th if FERC approves filing* ($75 right now) Estimation using a baseline method and after the fact metering NYISO Evaluation Method Reliability Reliability Economic *Order 745 compliance filing 3

4 Proposed changes to Tariff Definitions for DSASP Aggregations Currently in TB # 210 Demand Side Ancillary Service Program (DSASP): A NYISO program that allows qualified Demand Side Resources or an aggregation of Demand Side Resources located in the NYCA with at least 1 MW of reduction capability to participate as a DSASP Resource in the NYISO s competitive Day-Ahead and Real-Time Markets for Operating Reserves and Regulation Service in accordance with the NYISO Market Services Tariff and Procedures. Demand Side Ancillary Service Program Resource (DSASP Resource): A Demand Side Resource or an aggregation of Demand Side Resources located in NYCA with at least 1 MW of reduction that is represented by a point identifier (PTID) assigned to a Load Zone or Subzone by the NYISO and are: I. Capable of controlling demand in a responsive, measurable and verifiable manner within time limits prescribed by the NYISO; and II. Qualified to participate in competitive Operating Reserves or Regulation Service in the Day- Ahead or Real-Time Market pursuant to the NYISO Market Services Tariff and Procedures. Proposed changes in Red 4

5 Proposed changes to Tariff Definitions for DSASP Aggregations Currently in TB # 210 Demand Side Ancillary Service Program Provider (DSASP Provider): A NYISO Customer that is eligible, pursuant to the NYISO Tariff and Procedures to bid DSASP Resource(s) of at least 1 MW of reduction as Operating Reserves or Regulation Service in the Day-Ahead or Real-Time Market. A DSASP Provider is responsible for enrolling its DSASP resource(s). When communicating directly with the NYISO, the DSASP Provider is responsible for dispatching its DSASP Resource(s). No proposed change 5

6 Registration/Enrollment DSASP Aggregation DSASP Provider Registers as an MP DSASP Provider implements Direct Communication or communication via TO* for the DSASP Resource DSASP Provider submits information on individual Demand Side Resources to aggregate as a DSASP Resource *Implementing communication via the TO for resources in an aggregation will require the DSASP Provider to work with the applicable TO to review feasibility and understand TO requirements for a DSASP aggregation 6

7 Registration/Enrollment DSASP Aggregation NYISO to review The concept of using the Demand Response Information System (DRIS) to accept Demand Side Resource information for participation in DSASP and review for eligibility Any Demand Side Resource enrolled in DSASP may not be jointly enrolled in DADRP Demand Side Resources enrolled in reliability DR programs (SCR/EDRP/TDRP) may also enroll in DSASP or DADRP, but not both Assessing possible interactions with aggregations in other Demand Response Programs Impacts of jointly enrolled Demand Side Resources during reliability events and/or dispatch Modeling/Enrollment and market participation impacts for jointly enrolled Demand Side Resources 7

8 Coordination with other DR programs If a DSASP Resource is scheduled in the Day-Ahead Market and a reliability (SCR/EDRP/TDRP) event or test is activated DSASP resources must respond to the reliability activation The DSASP Resource is considered out of dispatch and will have its DSASP schedule removed for the duration of the event If a DSASP Resource has Real-Time bids and a reliability (SCR/EDRP/TDRP) event or test is activated: DSASP resources must respond to the reliability activation Bid validation process will not distinguish between mandatory (SCR) and voluntary (EDRP) events or tests Real-time bids will be invalidated for entire event period, including any extended event hours If event is terminated early, real-time bids for remaining event hours will not be reinstated, they must be resubmitted ICAP/SCR performance is measured against total reduction 8

9 Modeling, Market Qualification and Participation Modeling NYISO Operations collaborate with DSASP Provider, Transmission Owner and others to model the DSASP Resource made up of Demand Side Resources based on characteristics and locations of those Resources Customer Relations/Operations models the aggregation as a DSASP Resource in MIS/Ranger and assigns a Gen PTID Complete communication test with DSASP Resource Qualification information is provided in the Ancillary Services Manual Section 4 for Regulation Service Section 6 for Operating Reserves Participation Offer into Day-Ahead and/or Real-time markets Same as DSASP Resources that consist of a single Demand Side Resource Performance audits per applicable Technical Bulletin 9

10 Metering and Measurement DSASP Aggregation Measurement Measurement method Snapshot of totalized real-time metered load prior to dispatch is the baseline used in the load reduction calculation for the duration of the dispatch Totalization of real-time metered load for a DSASP Resource must include all Demand Side Resources enrolled as part of that DSASP Resource (PTID), regardless of how the DSASP Provider dispatches the individual Demand Side Resource Totalization methodology is reported to NYISO in the Infrastructure and Technology Plan that is part of the DSASP Provider Registration Packet Section Describe any meter totalization methodology used for reporting instantaneous data Section Minimum Requirement: The Process, including timing of activities and any calculations used for the instantaneous data sent via telemetry shall be provided using text and diagram format Section Validation, Estimation, & Editing Section Describe the process and rules to be used for meter data Section If using any industry standards, provide a reference of the load research or business practice standard 10

11 Metering and Measurement DSASP Aggregation Measurement During an audit of a DSASP Resource, the instantaneous interval meter data from each Demand Side Resource that makes up the DSASP Resource may be evaluated for consistency with data collected via telemetry of that DSASP Resource In such a case, the DSASP Provider will be asked to provide the meter data for each Demand Side Resource included in the DSASP aggregation (DSASP Resource) 11

12 Metering and Measurement DSASP Aggregation Telemetry Telemetry required via direct communication with NYISO or communication via TO* To meet performance calculation timing, it is recommended that all meters within the aggregation be scanned and totalized within seconds 1) Obtain the Instantaneous Load of the individual Demand Side Resources with time stamps 2) Totalize the Instantaneous Load for the Aggregation using the most recent data from all the individuals with the same time stamp 3) Provide the NYISO with the updated Instantaneous metered load More specific information is available in the Direct Communication Procedure (Contact Customer Relations to obtain CEII/NDA form required to obtain this procedure) DSASP Provider NYISO Dispatch Response DSASP Resource (PTID) DSR1 DSR5 DSR2 DSR3 DSR4 DSR = Demand Side Resource *Implementing communication via the TO for resources in an aggregation will require the DSASP Provider to work with the applicable TO to review feasibility and understand TO requirements for a DSASP aggregation 12

13 Additional Considerations DSASP-related definitions currently in TB 210 will be proposed as tariff changes. Upon FERC s acceptance of the proposed changes, TB 210 will be retired. Work with TOs to assess any potential impacts to distribution networks when aggregations of Demand Side Resources provide regulation Determine whether aggregations need to be limited at a load pocket or distribution network level Impacts to NYISO software NYISO will evaluate the feasibility of leveraging DRIS for accepting information for individual Demand Side Resources wishing to enroll as an aggregation for DSASP Other NYISO applications Review settlement for overlap with reliability program deployments 13

14 Next Steps Expand DSASP Aggregation discussion to include other stakeholders MIWG in February 2012 BIC and MIWG March/April 2012 Based on progress of market rule and DSASP Aggregation procedures 14

15 Appendix 15

16 Appendix Reliability Rules NPCC Northeast Power Coordinating Council Regional Reliability Reference Directory # 5 Reserve 5.13 Sustainability of Operating Reserve Synchronized reserve, ten-minute reserve, and thirty-minute reserve available to a Balancing Authority, if activated, shall be sustainable for at least one hour from the time of activation. Balancing Authorities shall determine their sustainability requirement for reserve on Automatic Generation Control (AGC) based on their ability to achieve compliance with relevant standards, with due consideration of their operating characteristics. Underlined for emphasis 16

17 Appendix Reliability Rules NPCC Northeast Power Coordinating Council Regional Reliability Reference Directory # 5 Reserve 5.14 Resource-Specific Requirements The Balancing Authority is responsible for meeting the following: a) Synchronized reserve, ten-minute reserve, and thirty-minute reserve cannot be provided from loads where the same capacity is included in demand response programs and would result in double counting the same capacity. b) Loads cannot provide synchronized reserve if the reduction in load is dependent on starting a generator to replace energy that is supplied from the grid. c) To be eligible to provide synchronized reserve, ten-minute reserve, or thirty-minute reserve, the Load Serving Entity or Generator Owner responsible for the Resource shall meet the metering and testing requirements of the relevant Balancing Authorities. d) To be eligible to provide synchronized reserve, ten-minute reserve, or thirty-minute reserve, the Resource shall continuously meet the dispatch instruction requirements of the relevant Balancing Authority(s). Underlined for emphasis 17

18 Appendix Reliability Rules NPCC Northeast Power Coordinating Council Regional Reliability Reference Directory # 5 Reserve 5.14 Resource-Specific Requirements The Balancing Authority is responsible for meeting the following: e) To be eligible to provide synchronized reserve, ten-minute reserve, or thirty-minute reserve, the Load Serving Entity or Generator Owner responsible for the Resource shall meet the requirements specified by the relevant Balancing Authorities for operating limits and response rate, so that available reserve shall be computed accurately. f) To be eligible to provide synchronized reserve, ten-minute reserve, or thirty-minute reserve, the Load Serving Entity or Generator Owner responsible for the Resource providing inter-balancing Area reserve shall not offer the same reserve to more than one acquiring Balancing Authority for the same scheduling interval. g) When energy and reserve are being provided concurrently from a Resource for a host and acquiring Balancing Authority respectively, a host Balancing Authority providing inter- Balancing Area reserve cannot count that reserve to meet its own reserve requirement, and, the acquiring Balancing Authority cannot count capacity that is allocated for energy to the host Balancing Authority as reserve. 18

19 Appendix Reliability Rules NYSRC New York State Reliability Council NYSRC RELIABILITY RULES For Planning And Operating the New York State Power System, V30, November 10, 2011 Resource: The total contributions provided by supply-side and demand-side facilities and/or actions. Supply-side facilities include utility and non-utility generation and purchases from neighboring systems. Demand-side facilities include measures for reducing load, such as conservation, demand management and interruptible load Glossary entries where generating was replaced by resource Operating Reserve Non-synchronized Ten (10) Minute Operating Reserve Synchronized Operating Reserve Thirty (30) Minute Operating Reserve 19

20 The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state s bulk electricity grid, administering New York s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. 20