CAISO-IOU Technical Design Session

Transcription

1 CAISO-IOU Technical Design Session Farrokh Rahimi, Ph.D. Vice President, Market Design and Consulting Open Access Technology International, Inc. (OATI) John Goodin Lead, Demand Response California ISO August 8, 2008

2 Technical Design Sessions- Overview & Purpose Event Date Objective Meeting July 30 Detail features & functions of Participating and Non- Participating Load under MRTU Release 1 and application to utility-specific programs Meeting August 8 Meeting August 14 IOUs propose modifications to their DR Applications that can fit into MRTU R1 as PL or NPL. Address issues or barriers in accomplishing this goal Discuss how aggregator programs could be converted into participating load IOUs present and discuss their implementation plans, including timelines, milestones and deliverables that can be included in the IOUs DR Applications Slide 2

3 Scarcity Pricing and Demand Response DR Participation in the CAISO Markets: DA Energy DA A/S Part Load (R1) PDR Possibly DDR (MAP) From DA Non-spin Possibly RT Energy Economic Energy * * RT A/S No No * subject to further discussion on threshold size and dispatch frequency No Day-ahead Scarcity Pricing in MRTU Release 1 Limited Scarcity Pricing in the Real-time Market in MRTU Release 1: In the absence of a contingency, if RT supply is short, Contingency Only reserves are deployed at Energy Bid Cap Real-time Price of new AS procured in Real-time may exceed Energy Bid Cap (indirect scarcity pricing) Impact on DR in MRTU Release 1: High RT price for Energy deployed from DR Slide 3

4 Scarcity Pricing (MAP) Scarcity Pricing is triggered by Ancillary Service supply deficiency in the market Scarcity Pricing may be triggered in the Day-ahead Market or Real-time Market When Scarcity Pricing is triggered, AS price (ASMP) for a resource may be higher or lower than Energy price (LMP) for the same resource Slide 4

5 Scarcity Pricing Demand Curve A joint Demand Curve for Regulation Up, Spinning, and Non-Spinning A tiered system-wide Demand Curve with three segments in Non-Spinning section Maximum scarcity price tied to the energy bid cap A separate Demand Curve for Regulation Down Slide 5

6 Scarcity Pricing Demand Curve (Proposed %) Scarcity Reserve Demand Curve Value of the CAISO Region Slide 6

7 AS Scarcity Pricing under MAP (Proposed $/MW/h) Scarcity Reserve Market Clearing Prices of the CAISO Region Slide 7

8 MAP Scarcity Pricing applied to R1 DR DR Participation in the CAISO Markets: DA Energy DA A/S Part Load (R1) PDR Possibly DDR (MAP) From DA Non-spin Possibly RT Energy Economic Energy * * RT A/S No No * subject to further discussion on threshold size and dispatch frequency Scarcity Pricing and DR in DA and RT (if it were applied to MRTU R1 DR Capability): Part Load (R1) PDR Day-ahead w/ Scarcity Pricing Load buys at Load Resource Energy Price Non-spin award paid at Scarcity A/S Price No net settlement for load that did not clear DAM Self scheduled load buys at DLAP Non-spin paid A/S Scarcity Price Real-time w/scarcity Pricing Load Reduction (DR) paid at RT Load Resource Energy Price Load Reduction (DR) paid at RT DLAP Price Slide 8

9 Example 1 DA Supply and Demand: DA Energy Demand: 40,000 MW: Self scheduled 25,000 MW Arbitrage bid: 15,000 MW at $30/MWh DR self schedules 50 MW load and offers 50 MW Non-Spin at $30/MWh DA Generation Energy offers: 45,000 MW offered at $20/MWh (only 2,500 MW of resources are AS Eligible) DA AS Requirement: 2,600 MW DA AS offers from Gen. Resources: 2,500 MW at $10/MW/h Results (Assume no congestion and ignore losses): Scarcity Pricing triggered (AS Offered = 2,550 < Requirement = 2,600) LMPs: $20/MWh (set by Generation offers) ASMPs: $375/MW/h (scarcity price) DR pays $20*50 = $1,000 for Energy and is paid $375*50 = $18,750 for Non-Spin (net revenue: $17,750) Slide 9

10 Example 2 DA Supply and Demand: DA Energy Demand: 40,000 MW: Self scheduled 25,000 MW Arbitrage bid: 15,000 MW at $400/MWh DR self schedules 50 MW load and offers 50 MW Non-Spin at $30/MWh DA Generation Energy offers: 42,000 MW offered at $20/MWh (only 2,500 MW of resources are AS Eligible) DA AS Requirement: 2,600 MW DA AS offers from Gen. Resources: 2,500 MW at $10/MW/h Results (Assume no congestion and ignore losses): Scarcity Pricing triggered (AS Offered = 2,550 < Requirement = 2,600) LMPs: $400/MWh (set by Demand Energy bid) ASMPs: $375/MW/h (scarcity price) DR pays $400*50 = $20,000 for Energy and is paid $375*50 = $18,750 for Non-Spin (net charge: $1,250) Slide 10

11 Thank You! Questions? Slide 11