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Forward Capacity Market (FCM) Zonal Issues Discussion. RC Meeting August 28, 2009 Marianne Perben Senior Engineer, FCM & Tariff Administration. Purpose of the Discussion. This discussion will primarily focus on the third item of the Issues List: Zonal Issues
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Forward Capacity Market (FCM) Zonal Issues Discussion RC Meeting August 28, 2009 Marianne Perben Senior Engineer, FCM & Tariff Administration
Purpose of the Discussion This discussion will primarily focus on the third item of the Issues List: Zonal Issues At the 08/04/09 RC meeting the ISO presented a potential methodology to identify “pure” capacity reliability zones Today, the ISO is providing an illustration of the application of such a methodology using FCA_2011_2012 data
Definition of Capacity Reliability Zones • There are two approaches to the definition of capacity reliability zones • Top to Bottom approach • Review zones used in current ISO’s processes • Reliability zones, load zones, reserve zones, capacity zones, dispatch zones, RSP zones • Establish pros and cons of using each of them as a potential capacity reliability zone • Bottom to Top approach • Start with blank sheet of paper and identify “pure” capacity reliability zones
Definition of Capacity Reliability Zones, cont. • The ISO reviewed both approaches and favored the second one • Technically more rigorous • Unbiased by market related or settlement/software related considerations • May offer a systematic approach to defining zones • For the purpose of this discussion, a “pure” capacity reliability zone is defined as a geographic region within which resources (new and existing) have a very high probability of substitutability
General Methodology to Identify “Pure” Capacity Reliability Zones • In power system terms, a “pure” capacity reliability zone is a zone where all generators behave in a very similar way towards key system constraints • Consequently, the identification of such zones is a two-step process • Identify key system constraints • Group generation into zones based on key constraints identified in step 1
Identification of “Pure” Capacity Reliability Zones • Step 1: Identification of Key System Constraints: • In this analysis, the ISO simulated the individual de-list of every generator in New England and gathered the critical flowgates that prevented some delists from occurring • For simplicity purposes, the impact of only one delist at a time was considered (did not model several sequential delist requests) • Around 60 key system constraints were identified • Some were regional • Some were very local • All system constraints were used to group generation
Identification of “Pure” Capacity Reliability Zones, cont. • Step 2: Generation grouping • The ISO relied on clustering algorithms to group generators into zones (also called clusters) • All generators in the same cluster have similar or identical DFAXs on all critical flowgates • Two generators with substantially different DFAXs should belong to different clusters (distance between generators in a given cluster should be electrically small) • The distance function chosen for this analysis was the maximum of all absolute DFAX differences over all key constraints • Distance between Gen1 and Gen2 = Max. | DFAX1-DFAX2 | • The choice of a threshold is independent of the number of key constraints • The final clustering is independent of the choice of a reference for DFAX calculation
Identification of “Pure” Capacity Reliability Zones, cont. • The clustering analysis was performed using two different distance thresholds • 20%: if the DFAX of two generators is more than 20% apart, generators are placed into two different clusters • 40%: if the DFAX of two generators is more than 40% apart, generators are placed into two different clusters • The clusters resulting from the generation grouping step were geographically mapped using PowerWorld • A larger threshold tends to make a regional cluster (cluster resulting from regional constraints) bigger • A larger threshold does not tend to affect very small, marginal clusters resulting from very local constraints
Further Requirement Considerations • All internal and external transmission constraints were modeled in this analysis • Used updated network model topology created for FCA_2011_2012 and determined in accordance with Section 3 of Planning Procedure 10 • A transmission security based requirement could be determined for the previous clusters/zones • Assumptions used to set the transmission security based requirement should be the same as the assumptions used for the delist analysis performed to identify key constraints • The transmission security based requirement may be inferred directly from the delist analysis that is performed to identify key constraints • Depending on the DFAX differences between all buses within the clusters (and the distance threshold applied), analysis may identify a range of requirements for a given cluster
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