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October 02, 2009October 02, 2009
Austin, TexasAustin, Texas
Quick Start Task Force Quick Start Task Force MeetingMeeting
11
SummarySummary
BackgroundBackground
FrameworkFrameworkMarketMarketReliabilityReliabilityAncillary ServicesAncillary ServicesDefinitions & OtherDefinitions & Other
22
BackgroundBackground
Wind Generation ResourcesWind Generation ResourcesOver 8,000 today; 15,000 estimated by 2015Over 8,000 today; 15,000 estimated by 2015Inherently variable and incompletely predictableInherently variable and incompletely predictableWill introduce operational challengesWill introduce operational challenges
Existing thermal Generation Resources can Existing thermal Generation Resources can synchronize and be fully loadedsynchronize and be fully loaded~900 MW~900 MW 10 minutes10 minutes~1,000 MW~1,000 MW 10-15 minutes10-15 minutes~3,700 MW~3,700 MW 15-30 minutes15-30 minutes
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FrameworkFramework
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AncillaryServices
Definitions & Other
MarketMarket
SCEDSCEDCannot commit Off-line Generation ResourcesCannot commit Off-line Generation ResourcesSome Generation Resources can synchronize Some Generation Resources can synchronize
within SCED timeframewithin SCED timeframeTherefore, market solutions ignored, causing Therefore, market solutions ignored, causing
potentially artificially higher energy pricespotentially artificially higher energy prices
Market Participants may self-commitMarket Participants may self-commitExposed to price riskExposed to price riskNot economically optimalNot economically optimal
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Market – Efficiency Market – Efficiency ImprovementsImprovements
2008 State of the Market Report2008 State of the Market Report“…“…Under the nodal market design, the introduction of a day-Under the nodal market design, the introduction of a day-ahead energy market with centralized Security Constrained Unit ahead energy market with centralized Security Constrained Unit Commitment (“SCUC”) that is financially binding promises Commitment (“SCUC”) that is financially binding promises substantial efficiency improvements substantial efficiency improvements in the commitment of in the commitment of generating resources.”generating resources.”
Systematic reliance on non-centralized unit Systematic reliance on non-centralized unit commitment decisions for over 5,000 MW commitment decisions for over 5,000 MW would would impair the promised substantial efficiency impair the promised substantial efficiency improvementsimprovements..
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Reliability – NormalReliability – Normal
Day-Ahead Reliability Unit CommitmentDay-Ahead Reliability Unit CommitmentReceived by 1600 in Day-AheadReceived by 1600 in Day-Ahead
Hour Reliability Unit CommitmentHour Reliability Unit CommitmentReceived throughout the Adjustment PeriodReceived throughout the Adjustment PeriodMay be received intra-Operating PeriodMay be received intra-Operating Period
• 1 hour before Real-Time1 hour before Real-Time
Clawback is 50% (DAM) or 100% (no Clawback is 50% (DAM) or 100% (no DAM)DAM)
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Reliability – EmergencyReliability – Emergency
Emergency ConditionEmergency ConditionOccurs when SCED failsOccurs when SCED failsLMPs held for most recently solved intervalLMPs held for most recently solved interval
Emergency MechanismsEmergency MechanismsVerbal Dispatch Instruction unit commitmentVerbal Dispatch Instruction unit commitmentVDI settled as HRUC [6.5.9.4.1]VDI settled as HRUC [6.5.9.4.1]No clawback during EEA (DAM) [5.7.2(3)]No clawback during EEA (DAM) [5.7.2(3)]
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Reliability – ObservationsReliability – Observations
RUCRUCNormal Normal does not utilize flexibility and has does not utilize flexibility and has
clawbackclawbackEmergency may utilize flexibility and has no Emergency may utilize flexibility and has no
clawbackclawback
ClawbackClawbackIf RTSPP > Energy Offer Curve, Quick Start If RTSPP > Energy Offer Curve, Quick Start
Units could have provided market solution Units could have provided market solution without RUC Dispatch Instructionwithout RUC Dispatch Instruction
Similar to Zonal OOME unit commitmentSimilar to Zonal OOME unit commitment
99
Ancillary ServicesAncillary Services
NSRSNSRS30-minute timeline30-minute timelineDispatch Instructions to 100% of capacityDispatch Instructions to 100% of capacity
ObservationObservationNo Nodal comparable mechanism No Nodal comparable mechanism to Zonal to Zonal
Balancing Energy Capable Non-Spinning Balancing Energy Capable Non-Spinning Reserve Service (BESCNSRS)Reserve Service (BESCNSRS)
1010
10MNSRS10MNSRS
Avoids cost related to sub-optimal operation Avoids cost related to sub-optimal operation of On-line reserved capacityof On-line reserved capacity
Provides intermediate mechanism to ensure Provides intermediate mechanism to ensure reliability between RRS and NSRSreliability between RRS and NSRS
Recommended in GE Wind ReportRecommended in GE Wind ReportExists in PJM, Caiso, MISO, ISO-NE and Exists in PJM, Caiso, MISO, ISO-NE and
NYISONYISOWould encourage investment in innovative Would encourage investment in innovative
technologytechnology1111
DefinitionsDefinitions
ObservationsObservationsTerms “commit” and “reserve” intermixedTerms “commit” and “reserve” intermixedSome RUC definitions inconsistent, unclear Some RUC definitions inconsistent, unclear
or recursiveor recursive
Undefined termsUndefined termsQuick Start UnitQuick Start UnitCOP status of Quick Start UnitsCOP status of Quick Start Units
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Nodal QS StrategyNodal QS Strategy
1313
Go-LiveQ1 2011
Version 2.0
NowQ3 2009
NPRRNOGRR
QSTF & Other Forums
Phase 1: Issue DefinitionPhase 2: ComparablesPhase 3: Solution
No System ChangeNPRR/NOGRR
Comprehensive SolutionsNPRR/NOGRR
Other Changes
Questions and AnswersQuestions and Answers
1414