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EIS Market and Challenges with Intermittent Resources

EIS Market and Challenges with Intermittent Resources. November 11, 2010. EIS Market Overview. Markets. Market Concepts – What is a Market?. General Concept An interaction between buyers and sellers

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EIS Market and Challenges with Intermittent Resources

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  1. EIS Market and Challenges with Intermittent Resources November 11, 2010

  2. EIS Market Overview Markets

  3. Market Concepts – What is a Market? • General Concept • An interaction between buyers and sellers • An energy market exists when competing generators/suppliers offer their electricity output to customers • Regional Transmission Organization Facilitated Market • Spot energy market required by Federal Energy Regulatory Commission • Allows participants to offer resources into the market • Designed to promote use of least cost generation for Imbalance • SPP oversees the activities of the market, ensuring reliability, forecasting supply requirements and providing Market Monitoring oversight

  4. Market Goal • SPP shall determine the least costly means of obtaining energy to serve the next increment (MW) of load at each settlement location, while maintaining reliability. • This is Security Constrained Economic Dispatch (SCED) • In performing these calculations, SPP will use the EIS offers that can serve the load at a bus at the lowest cost. • This deployment determines the dispatch instructions for resources that have offered to provide Energy Imbalance Service (EIS). Increasing load

  5. EIS Market Overview Energy Imbalance Service (EIS)

  6. What is “Imbalance Energy”? • Imbalance energy (Energy Imbalance, or EI) is the difference between what actually happens for each generator and load location, and what they prearranged through schedules. • Generators produce amounts different than they schedule • Loads consume amounts different than they schedule Energy Imbalance = Actual Production or Usage – Scheduled Production or Usage • The amount of increase or decrease in generation is paid for by the asset owner needing the energy. EI = A - S

  7. What is the “Energy Imbalance Service”? • EIS is the dollar amount associated with the imbalance energy. • EIS is calculated by taking the amount of EI and multiplying it by the price at a specific point on the energy grid (LIP). Energy Imbalance Service = Imbalance Energy x Locational Imbalance Price (LIP) EIS = EI x LIP

  8. Locational Imbalance Pricing (LIP)

  9. Pricing A resource that is free to change output to move along its offer curve in response to SPP’s dispatch will set price • Resource status that does set LIP price • Available • Resource status that does not set LIP price • Self Dispatched • Manual • Unavailable • Supplemental

  10. Locational Imbalance Price (Unconstrained) • Here’s an example… Generator A offers 10 MW @ $15/MWh Generator B offers 10 MW @ $20/MWh Generator C offers 10 MW @ $30/MWh • To supply 15 MWh of energy to a load in an unconstrained system, the market selects the most economical generation within current reliability standards. In this case, Generators A and B. Generator A 10 MW @ $15/MWh Generator B 5 MW @ $20/MWh (sets price as providing the “next” increment of energy) • In this case, Generators A and B would both get paid $20/MWh for their participation in serving the 15 MW load

  11. EIS Market Overview Resource Plans

  12. Resource Plans • All Market Participants (MP) with resources will be required to submit Resource Plans (RP) AND are required to keep the plan up to date throughout the operating day. • Reliability criteria require that the resource plan cover a period of seven days, beginning with the operating day (168 hours). • The resource plan contains entries for each resource for each hour of the seven day horizon, including: • Market Date • Resource Name • Hour Ending • Status • Planned MW • Minimum and Maximum Ratings (6) • Break Point(s) and Ramp Rates(s)  MW per Min

  13. Resource Plans • How is an Resource Plan used? • For the Market • Used to determine dispatch instruction (when included with Offer curves, Load Forecast, and State Estimator). • For Reliability • Use for Simultaneous Feasibility Test studies and Contingency Analysis • Determine available transmission service • Deliverability Analysis

  14. Resource Plans • Capacity and Ramp Rate data submitted • Emergency Minimum Capacity Operating Limit • Min Limit • Economic Minimum Capacity Operating Limit • Economic Maximum Capacity Operating Limit • Max Limit • Emergency Maximum Capacity Operating Limit • Ramp Rate profiles (segment) for: • Up ramp rate limit • Down ramp rate limit • Emergency ramp rate limit • Ramp rate break point(s)

  15. Resource Plans • Resource Status • Manual • Not capable of following dispatch instruction by virtue of: • Testing • Intermittent resources • Start up or shut down mode • Zero ramp rate (dispatched to last observed output) • Available • Online and available for SPP Market Deployment

  16. Resource Plans • Resource Status • Self-dispatched • Online, but unavailable for SPP Market Deployment. • SPP will send self-dispatched resources a dispatch signal that matches the sum of their schedules • Unavailable • Offline and unavailable for SPP Deployment • SPP Dispatch will take an online resource to zero output via Resource Plan ramp rate • Supplemental • Offline but capable of satisfying Supplemental reserve requirements. Will not be dispatched by the Market Operations System

  17. EIS Market Overview Deployment

  18. SCED must predict what generation outside of its control will do in the next 10 minutes: “Unavailable” resources will move toward (or stay at) zero. “Self scheduled” resources will move toward (or run at) scheduled levels “Supplemental” and “Manual” resources will not move SCED must predict what load will do in the next 10 minutes Performed on a Balancing Authority by Balancing Authority basis and rolled up to a market total Adjusted for imports and exports into the market SCED then uses “available” generation to make up the slack between resources (generators) and obligations (load) Determining Dispatch

  19. Deployment process • Dispatch instructions are calculated every 5 minutes. • The process of calculating deployment begins 10 minutes prior to the end of that deployment interval. • Ramp rate used in the dispatch instruction comes from the resource plan. • The ramping is for the last 5 minutes of the 10 minute deployment interval. • Net Scheduled Interchange (NSI) is calculated every four seconds and includes the ramped impact of the deployment instructions.

  20. Deployment process • The dispatch instructions are communicated (via XML) approximately 5 minutes prior to the end of the deployment interval, which is 5 minutes prior to the time the MP is expected to begin moving the resource. • Instructions are sent via ICCP exactly 5 minutes prior to the end of the interval (at the beginning of ramp time) • Dispatch instruction for a self-dispatched unit is equal to the sum of its schedules for the end of the interval. • At the end of each deployment interval, SPP takes a snapshot of each resource to determine if its output matches the instructed level.

  21. The Operating Hour A deployment interval is 5 minutes, and each OH has 12 deployment intervals (DI). • Each operating hour contains twelve 5-minute deployment intervals. • During each of these deployment intervals: • MPs are ramping to achieve deployment, and • SPP is calculating NSI every four seconds and sending modified NSI to control areas via ICCP • While the operating hour events are occurring in real-time, the MP and SPP are preparing in the hour ahead for the next operating hour. • So there is overlap of the hour-ahead and operating hour events. 0600 0500 0555 0505 0510 0550 0545 0515 0540 0520 0535 0525 0530

  22. Ten-Minute Deployment Interval Dispatch Instruction Timing System snapshot XML Dispatch Signal for End-of-Interval ICCP Dispatch Signal MP Begins Ramp IE-10 ~IE-8 IE-05 • Project load • Process Schedules • Calculate SCED Calculations Communication IE (Interval Ending) Ramp period End of Ramp Snapshot…

  23. DeploymentMW sent DeploymentMW sent DeploymentMW reached DeploymentMW reached Deployment Process 0000 0005 0010 0015 0020 0025 DeploymentMW sent DeploymentMW reached Snapshot Calculations & Communications Ramp Calculations & Communications Ramp Calculations & Communications Ramp T T+5 minutes T+10 minutes Snapshot T T+5 minutes T+10 minutes Note: for Manual status: Snapshot = Deployment Snapshot T T+5 minutes T+10 minutes

  24. EIS Market Overview Intermittent Resources

  25. Fuel Mix 26

  26. Intermittent Mix 27

  27. SPP currently has approximately 4 GW of wind generation and about 50 wind farms in service. Approximately 7-10 GW of wind generation and 80-100 wind farms are expected to be in service by 2013. We have another 6 GW with interconnection agreements that are not yet connected and are working through an interconnection queue containing approximately 35-40 GW of wind. A wind power forecasting tool will help predict when and how much wind generation output will be available over a range of future time periods. Wind 28

  28. Congestion management due to the volatile nature of weather and the impact on intermittent resources Impact of flow from neighboring intermittent resources on SPP facilities Increase need for regulation as intermittent resources become a greater part of the fuel mix. Major Challenges 29

  29. EIS Market Overview What’s Next

  30. SPP issued a Request For Proposal on April 1, 2010 Selected two vendors to conduct a 12 week long pilot program with Selected a vendor on October 15, 2010 Currently finalizing contract with selected vendor and expect to begin production forecasting service on January 1, 2010 Wind Forecasting Project 31

  31. Key deliverables : 5-minute time forecast for two hours in the future, updated every 5 minutes. Hourly forecast for the upcoming 24-hour period, updated hourly. Hourly forecast for each hour beginning 25 hours in the future, updated every 4-6 hours. Shall provide tools and analysis to forecast probabilistic ramping events with predefined confidence ranges per site including, but not limited to, event duration and magnitude. Wind Forecasting Project 32

  32. Will include a multiday reliability unit commitment process Will include a day ahead market clearing including ancillary services Will include a real time balancing process that is co-optimized with ancillary service deployment. SPP Integrated Marketplace 2014 33

  33. EIS Market Overview C.J. Brown Supervisor, Market Operations501-614-3569cbrown@spp.org

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