1 / 7

Market Evolution Program Day Ahead Market Project

Explore the history, options, and conclusions of the Day Ahead Market project, highlighting regulatory issues encountered. Discover key insights and activities shaping the market's evolution.

jvictoria
Download Presentation

Market Evolution Program Day Ahead Market Project

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Evolution ProgramDay Ahead Market Project Regulatory Affairs Standing Committee Meeting May 14, 2003 1

  2. Day Ahead Market - History • Stakeholder input to IMO Straw-Plan for Market Evolution (Jan 2002) – implementation of a day ahead market is a high priority • IMO 2003-2005 Business Plan – a day-ahead commitment market, with the real-time market evolving to a balancing market, is a critical element in executing the strategy of creating amore effective, reliable and mature market • Market Surveillance Panel Report (March 2003) – one potential avenue to improve the ineffective pre-dispatch signals is to develop alternative mechanisms for providing price signals such as a day-ahead market • FERC SMD NOPR (July 2002) - proposed requirements to run a voluntary, bid-based, security constrained day-ahead energy market. • FERC White Paper (April 2003) - reaffirms the necessity of a DAM and commitment to resolve seams issues and integration of regional efforts 2

  3. Day Ahead Market - Options Considered • A simple, single-node, bid-based day-ahead market for energy only (analogous to the Energy Forward Market currently documented in the Market Rules) • A comprehensive day-ahead market that contains most of the characteristics and features of day-ahead markets in neighbouring markets (PJM, NE, NY and proposed for MISO), with the key exception of locational marginal pricing • An alternative DAM proposed by Coral, characterized by a bid-ask-trade mechanism to discover price for energy, firm physical obligations to deliver and mandated particpation by all loads and generators 3

  4. Day Ahead Market -Conclusions to date • A simple, single-node, bid-based day-ahead market for energy only for the summer of 2003 was not pursued due to the following: • risk that it would be illiquid or would not clear • delivery risk due to the short timelines • adverse impact on other initiatives • IMO Feasibility Study and market participant feedback (via DAM Working Group) regarding DAM options concluded that the preferred path is to pursue a comprehensive DAM consistent with the DAM employed in neighbouring jurisdictions • Now performing high-level design with target implementation of Fall 2004 • Staged approach - high-level design to be completed by July at which time an assessment will be made whether to proceed further 4

  5. Day Ahead Market -Activities • Assessment of high level design: • How well it addresses some of the problems evident in current market design and operation • Appropriate linkages to long term resource adequacy initiative • Broad stakeholder consensus on the benefits of implementing the proposed design • Appropriate cost recovery mechanism • Working Group is engaged in identifying design issue areas and examining potential solutions • Broader stakeholder education/consultation workshops planned for late May/early June regarding proposed high level design • MAC - June 11 • IMO Board - July 3 5

  6. Day Ahead Market -Regulatory issues encountered so far • Load participation in the DAM: • effectiveness of DAM enhanced as the amount of load participation increases • impact of gap between MW quantity of load participants and generation participants mitigated by allowing virtual load in DAM Potential approaches to increase load participation in DAM: • SSS Rate to be a blend of the day-ahead and real-time spot prices • Provide for a more active LDC role in the procurement of electricity • Third-party procurement 6

  7. Day Ahead Market -Regulatory issues encountered so far • MPMA for OPG: • Is the MPMA restricted to the Real-Time Market? • What settlement components of the Day Ahead and Real Time Markets will be used to determine the rebate? 7

More Related