ENERGY MARKET PARTICIPATION

Transcription

1 ENERGY MARKET PARTICIPATION Detailed Design Meeting #1 April 30, 2015

2 Introduction Energy Market Participation describes how a participant will satisfy their DR Capacity Obligation in the energy market 2

3 Overview DR Energy Bid Bid Price Threshold Availability Window Energy Market Delivery through: Capacity Based Demand Response Dispatchable Load (5-minute demand response) Test Activations 3

4 DR Energy Bid Participants with DR Obligations must submit DR Energy Bids at least equal to their DR Capacity Obligation for every hour of the Availability Window DR Energy Bid is how a DR resource will signal its availability to provide Demand Response to the energy market, and deliver on its DR Capacity Obligation Dispatchable energy bid (<$2,000) but greater than a Bid Price Threshold IESO will only consider these bids when measuring compliance with the Availability Requirement 4

5 Bid Price Threshold The Bid Price Threshold is created to distinguish between a DR reduction and instances where economic dispatches may not be reflective of market price sensitivity DR Auction s objective is to procure demand-side MWs that have an incremental impact on system needs Bid Price Threshold acts as a filter to identify bids reflecting true price responsiveness to system conditions For example, reductions for Industrial Conservation Initiative could be bid at low prices in the energy market to ensure the load receives a dispatch instruction to reduce load but it may not be reflective of price sensitivity 5

6 Bid Price Threshold Proposal: The IESO proposes the Bid Price Threshold will be $100. Dispatchable energy bids (<$2000) but above $100 will be considered a DR Energy Bid IESO believes $100 is a good indicator to filter non-price responsive bids Balance between competitive DR capability and non-price responsive activity The IESO proposes to review the Bid Price Threshold at least every three years 6

7 Availability Window Proposal: The Summer Availability Window will be business days from 12:00 to 21:00 EST (Hour Ending 13 to Hour Ending 21). The Winter Availability Window will be business days from 16:00 to 21:00 EST (Hour Ending 17 to Hour Ending 21). Participants have the requirement to submit DR Energy Bids for their DR Capacity Obligation during this Availability Window Availability Windows for each Commitment Period will be provided prior to each DR Auction 7

8 Availability Window Proposal: There is no maximum number of DR Activations that can be called in a Commitment Period. Participants will manage their DR Availability through their energy market bids 8

9 How to Provide Availability Capacity Based Demand Response Dispatchable Load 9

10 Capacity Based Demand Response Capacity Based Demand Response is one of the two methods a participant with a DR Capacity Obligation can fulfill their obligation to provide availability in the energy market This delivery method will be largely the same as how resources deliver load reduction in the CBDR program that exists today (DR in four hour blocks) with design changes such as extended hours of availability and participant managed DR bids Bids will signal Demand Response Availability into the energy market 10

11 Capacity Based Demand Response CBDR walkthrough: 1. Submit DR Energy Bids into Day-Ahead Commitment Process for the Availability Window DACP submission deadline is 10:00 EST day-ahead 2. Receive Standby Notification by 7:00 EST If no Standby Notification issued, participant must remove DR Energy Bids after 7:00 EST as soon as possible and before 10:00 EST at the latest Standby Notification issued when resource has a non-zero pre-dispatch schedule for at least four consecutive hours during the Hours of Availability Will be notified through a participant-specific private report 3. Receive Activation Notification with at least 2.5 hours in advance of Activation Period Will be notified through a participant-specific private report 11

12 Capacity Based Demand Response DR Bid requirements to fulfil Availability Requirement Time Frame At DACP Deadline (10 AM Dayahead) At 7 AM At 2.5 Hours Before Dispatch Days w/o Standby Notification DR Energy Bid Required DR Energy Bid Required DR Energy Bid NOT Required Days with Standby Notification DR Energy Bid Required DR Energy Bid Required DR Energy Bid Required 12

13 Capacity Based Demand Response Participants delivering load reduction in four hour blocks will receive their Standby Notifications and Activation Notifications through participant-specific private reports available through the IESO website This will replace the existing notification method of notification Private reports will provide the participant with their DR schedule Participants will need to check their own private reports to see if they receive a Standby Notification and Activation Notice Tie-breaking, instances where multiple resources offer the same price and are marginal, will be handled later on in the design process 13

14 CBDR Example In DR Auction: A participant clears 5 MW of DR Capacity from the DR Auction for the Summer Commitment Period In Energy Market: The participant is required to provide 5 MW of DR Capacity during all business days from Hour Ending 13 to Hour Ending 21 (12:00-21:00 EST) Bid format would be in Price/Quantity pair format and the first bid quantity is always 0 MW DR is scheduled when there is at least 1 MW that is evaluated as uneconomic 14

15 CBDR Example cont. Example 1 In HE 17 a DR resource is willing to consume energy as long as the price is not above $500; when it is above $500, the DR resource would rather curtail consumption. DR Energy Bid for HE17 would look like: (500,0),(500,5); If the pre-dispatch price for HE17 clears above $500 then this resource is not scheduled to consume and initiates Demand Response (curtailment) 15

16 CBDR Example cont. Example 2 Participants can also use multiple price laminations to signal varying levels of price sensitivity DR Energy Bids for HE18: (500,0),(500,2),(400,4),(300,5); This bid signals that a resource is willing to not consume: If pre-dispatch clears at $250, then the resource will not reduce If pre-dispatch clears at $380, then the resource will reduce by 1 MW If pre-dispatch clears at $450, then the resource will reduce by 3 MW If pre-dispatch clears at $550, then the resource will reduce by 5 MW 16

17 CBDR Example cont. DR Energy Bids Predispatch Price HE16 HE17 HE18 HE19 (500,0)(500,5) (500,0)(500,5) (500,0)(500,5) (500,0)(500,5) $100 $100 $100 $100 Schedule 5 MW 5 MW 5 MW 5 MW Every hourly energy bid in this example is economic, meaning greater than the pre-dispatch price Since CBDR requires four consecutive hours to be scheduled, no DR is activated in this example 17

18 CBDR Example cont. DR Energy Bids Predispatch Price HE16 HE17 HE18 HE19 (500,0),(500,5); (500,0),(500,5); (500,0),(500,3), (400,5); $600 $600 $450 $600 Schedule 0 MW 0 MW 3 MW 0 MW (500,0),(500,5); Each hour has an uneconomic energy bid, meaning less than the pre-dispatch price Since CBDR requires four consecutive hours to be scheduled, in this example, DR is activated 18

19 Dispatchable Load (5-minute DR) Dispatchable Load is the other way a participant with a DR Capacity Obligation can satisfy that obligation in the energy market To be able to deliver DR in a 5-minute response time a resource must be registered as a Dispatchable Load Dispatchable Loads will deliver their Availability to provide Demand Response through their energy market Bids Will continue to bid their entire load of their resource 19

20 Dispatchable Load (5-minute DR) Dispatchable Load walkthrough: 1. Submit DR Energy Bids into Day-Ahead Commitment Process for the Availability Window DACP submission deadline is 10:00 EST day-ahead 2. Receive dispatch instructions every 5 minutes in real-time Dispatchable Loads still able to participate in providing Operating Reserve and continue to be eligible for Congestion Management Settlement Credits To fulfil Availability Requirements, must provide DR Energy Bids into the DACP and real-time 20

21 Test Activations Test Activations will be used by the IESO to test that resources providing DR Capacity can provide the energy they are obligated to have available Important mechanism for the IESO to verify the resource compensated for their capacity actually have the capacity available 21

22 Test Activations Proposal: The IESO proposes to have the ability to call up to two Test Activations on each resource that has a DR Capacity Obligation for each Commitment Period. Test Activations can be called at any time during the Availability Window For each DR type will follow the applicable notification and activation lead times Can only be dispatched up to the amount of the DR Energy Bid for that hour No payment is proposed for these Test Activations 22

23 Feedback Please send feedback to 23