1 / 12

August 5, 2014 | NEPOOL markets committee

August 5, 2014 | NEPOOL markets committee. Jonathan Lowell. Principal analyst | market development. Order 755 Regulation Market Enhancement to Address State-of-Charge Management for Limited Energy Storage Resources. Regulation Market (Order 755) FERC Compliance.

totie
Download Presentation

August 5, 2014 | NEPOOL markets committee

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. August 5, 2014 | NEPOOL markets committee Jonathan Lowell Principal analyst | market development Order 755 Regulation Market Enhancement to Address State-of-Charge Management for Limited Energy Storage Resources Regulation Market (Order 755) FERC Compliance

  2. Why Are We Discussing Regulation Again? • FERC approved ISO’s Order 755 design on 6/20/13, and issued a notice on 7/19/13 extending the effective date to October 1, 2014 • ISO filed a number of cleanup changes and corrections on 3/20/14 • FERC rejected that filing on 5/20/14, indicating it would create an unduly discriminatory barrier to entry for limited energy storage resources • Directed ISO to implement the approved tariff for 10/1/14 • Problem: the approved tariff would still create the same barrier to entry

  3. The 5/20/14 Rejection Provides Clear Guidance on How to Comply with Order 755 • The FERC rejection on 5/20/14 raised three key points: • Lack of any capability for limited energy storage resources to manage state-of-charge creates a barrier to entry that must be eliminated (Paragraph 27, page 10) • Changes in regulation offers in between the selectionof regulation resources would invalidate the selection and the clearing prices produced by the selection process (Footnote 35 on page 11) • FERC has approved two different approaches in other ISOs that would allow limited energy resources to participate in the regulation market in a “not unduly discriminatory manner” (Paragraph 27, pages 10-11): • PJM – energy-neutral signal for fast ramping resources • MISO/NYISO/CAISO - active state-of-charge management

  4. Proposed Design Enhancement – an Energy-Neutral AGC Signal • To address issues raised in the 5/20/14 rejection, the regulation market design will be enhanced to allow Alternative Technology Regulation Resources (ATRRs) the option to receive either: • An “energy-neutral” trinary AGC dispatch signal, or • A “continuous” AGC dispatch signal, as proposed in the filing that FERC rejected • The “continuous” AGC dispatch signal is the same signal currently used for generators • An “energy-neutral continuous” AGC dispatch signal • Choice of signal may be changed with 30 day notice

  5. Energy-Neutral AGC Dispatch • What is an “energy-neutral” dispatch signal? • Over a relatively short time period (5-15 minutes), the amount of energy dispatched above the midpoint will be approximately equal to the energy dispatched below the midpoint • This eliminates any tendency for a limited energy storage-based regulation technologies with at least 15 minutes of storage (full to empty) to ”fade” during an hour when the average Area Control Error is not close to zero. • This approach has been approved by FERC in PJM

  6. Energy-Neutral AGC Dispatch is the Simplest, Quickest, Most Direct Route to ISO-NE Compliance • ISO is already working with KEMA Consulting to develop and test a PJM-style energy-neutral dispatch signal. KEMA: • Performed the analysis on which the PJM design is based • Has significant additional experience working on regulation dispatch designs to meet NERC compliance standards in California, ERCOT and Hawaii • The infrastructure already developed for the originally planned Order 755 go-live this past May can be retained • Little to no impact on how Participants and System Operators interact with the regulation market • The MISO/NYISO/CAISO designs would require much greater structural changes to New England energy/reserve/regulation markets • Software development can be done primarily in-house • ISO proposes an effective date in March 2015 • Development work can commence after Offer Flexibility changes are complete • Avoids mid-winter changes to real-time market systems

  7. Comparison of PJM vs ISO-NE Energy-Neutral Design

  8. Other Aspects of Order 755 Compliance • The filing rejected by FERC included a number of tariff changes that are still helpful and/or necessary • These changes will be re-submitted. See appendix for detail. • Waiver of 1 MW minimum size requirement until 10/1/14 for ATRRs in the Pilot program will be dropped. • No longer necessary or relevant • Two EMOF conforming changes already approved by NEPOOL will be included • See appendix for detail • Note: regulation self-schedules will no longer be available under EMOF

  9. Next Steps • FERC filing on August 1st to defer implementation of the new regulation market until March 31, 2015 • MC vote at September meeting on the proposal discussed today • PC review at September 12, 2014 PC meeting • FERC filing immediately after PC approval requesting approval of the changes with an effective date of March 31, 2015 • Request order within 60 days of filing • IT development work to start as soon as: • Comment period expires with no protests • FERC issues an order accepting the proposed changes • Go-live on March 31, 2015

  10. appendix

  11. Tariff Changes Previously Approved by NEPOOL That Will Be Included/Re-Submitted • Correct error in original filing that mistakenly stated generators must provide a minimum regulation capacity of 10 MW. Correct amount for generators is 5 MW. Previously approved by NEPOOL • Change in Section III.13.7.3.1 to correct how ATRR load is treated in determination of Capacity Load Obligation. Previously approved by NEPOOL • Clarification of the range of registration options available to ATRRs. Previously approved by NEPOOL • Deletion of incorrect use of “payment” from the phrase “energy opportunity cost payment” in Section III.14.8(b)(ii). Previously approved by NEPOOL • Change to Performance Adjustments to reflect how performance monitoring will be implemented. Previously approved by NEPOOL • Offer Flexibility Conforming Changes Previously approved by NEPOOL • These were pulled from EMOF CC changes after the FERC 5/20/14 rejection • Set energy opportunity cost to zero when market participants exercise the Offer Flexibility self-schedule option for a regulation resource • Modify the calculation of the regulation penalty price to accommodate negative prices

  12. How is the Energy-Neutral Signal Derived? • High pass filter applied to ACE • Decomposes the ACE into • low-frequency content (i.e. slow variation, potentially energy-biased) and • high-frequency content (i.e. fast variation about the low-frequency content signal): statistically energy-neutral over a given time-frame • High pass filtered signal is processed and sent to resources requiring this type of statistically energy-neutral AGC setpoint • Separate non-neutral signal is sent to conventional-type regulation resources • Filter design is being refined • PJM uses a 15 minute cutoff frequency • Objective: use ATRR characteristics more optimally • Accommodate limited energy storage • Reduce conventional resource ramping • Reduce overall capacity requirement • Reduce overall service requirement

More Related