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Small Facilities - Technical Requirements

Small Facilities - Technical Requirements. Rhonda Wright. Goal of Consultation. Review market rule barriers to small facilities which have been identified by proponents who are expected to respond to government Requests for Proposals

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Small Facilities - Technical Requirements

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  1. Small Facilities - Technical Requirements Rhonda Wright Market Operations Standing Committee of the IMO

  2. Goal of Consultation • Review market rule barriers to small facilities which have been identified by proponents who are expected to respond to government Requests for Proposals • Discuss potential solutions and obtain comments from the MOSC on them Market Operations Standing Committee of the IMO

  3. Small Facilities • What Are They • Why Are They Not in the Wholesale Market Now • Why is Wholesale Market Participation an Issue • What Barriers Exist to Discourage Market Entry Market Operations Standing Committee of the IMO

  4. Small Facilities • What Solutions are Available to Lower These Barriers • What Issues May the Market Have With Lowering These Barriers • What is the IMO’s Plan Going Forward Market Operations Standing Committee of the IMO

  5. Small Facilities - What Are They? • Small generation or load facilities • Examples are Distributed generation (DG), demand response facilities, small wind • Combination of small size (<2 to 5 MW) and low capacity factor (<500 hours per year) • Typically embedded within an LDC Market Operations Standing Committee of the IMO

  6. Why are they not in the market now? • Revenues do not likely justify the cost of becoming an MP • Threshold of 1 MW for facility registration for dispatchable facilities • Typically embedded - no obligation to participate in IAM Market Operations Standing Committee of the IMO

  7. Why is This an Issue? • DG proponents are approaching IMO about participating in IAM • Government Renewables RFP minimum size is 500 kW, requires participation in IAM • 2500 MW RFP - demand response, DG • Future initiatives? Market Operations Standing Committee of the IMO

  8. What Barriers May Exist? • Facility Registration - 1 MW minimum • Telemetry - distributed control solutions introduce latency in data • Main/Alt requirement for each revenue metering installation • Voice Communication requirements Market Operations Standing Committee of the IMO

  9. Possible Solutions • Creating new minimum standards for these facilities - need criteria • Exemptions - uncertainty for proponent, additional work for MP and IMO, lacks necessary transparency, may be needed for early entrants Market Operations Standing Committee of the IMO

  10. Solutions - Issues • Potential reliability impacts • Impact on settlements for other MPs potentially affected by lower standard for these facilities (e.g. host distributor) • Others? Market Operations Standing Committee of the IMO

  11. Small Facilities • What is the IMO’s plan going forward? • Consultation with Technical Panel, MOSC, and the Ministry of Energy - June 2004 • Develop strawman to facilitate entry of small facilities into IMO markets - June 2004 • Stakeholder strawman with MPs - June 2004 Market Operations Standing Committee of the IMO

  12. Small Facilities • What is the IMO’s plan going forward? • Stakeholder strawman with Ministry of Energy and RFP Proponents - June/July 2004 • Finalize strawman - July 2004 • Development of market rules - Aug/Sept 2004 • Ensure market rules are in place to meet Ministry of Energy RFP schedule Market Operations Standing Committee of the IMO

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