Post on 31-Dec-2015
description
8 Oct 2003 Market Advisory Council of the IMO 1
Market Pricing Issues: Update Document ID #: MAC-05-07
8 Oct 2003 Market Advisory Council of the IMO 2
Agenda
• Background• Recently Introduced Initiatives
– Hour-Ahead Dispatchable Load (HADL)– Spare Generation On-Line (SGOL)– Control Action Operating Reserve
• Proposal for Additional Control Action Operating Reserve
• Next Steps
8 Oct 2003 Market Advisory Council of the IMO 3
Background• Three pricing issues
– pre-dispatch vs. real-time prices– counter-intuitive prices in times of shortage– size, content and variability of uplift
• Contributing factors not only give rise to pricing issues, but also:– reduce market efficiency– jeopardize reliability of IMO-controlled grid
8 Oct 2003 Market Advisory Council of the IMO 4
HADL and SGOL
• Hour-Ahead Dispatchable Load– 4 participants; ~240 MW registered– activity limited to date; 25 hours; <30 MW/hr– impacts negligible
• Spare Generation On-Line– ~2600 MW registered– activity started in mid-September– net market impacts not quantifiable yet, but
appears to be having intended effect
8 Oct 2003 Market Advisory Council of the IMO 5
Control Action Operating Reserve - 1
• MW relief that would be realized if control action taken e.g. voltage reduction
• Industry accepted source of Operating Reserve
• 200 MW introduced early August– 30 minute Operating Reserve price: 30 $/MW – 10 minute non-synchronized Operating Reserve
price: 30.10 $/MW– Energy price: 2000 $/MWh
8 Oct 2003 Market Advisory Council of the IMO 6
Control Action Operating Reserve - 2
• Market Impacts (results to September 22)– Increase Average HOEP: range 0.0 - 0.4 $/MWh, relative
to 49.2 $/MWh actual average HOEP (SGOL offsets)
– IOG Savings: 37 k$ (Total IOG Payments 2.5 M$)
• Reliability Impacts– No unreliable operation as a result of scheduling CAOR
– Increased risk of unreliable operation judged very small
• Displaced Market Operating Reserve– ~0.2% of total scheduled OR
8 Oct 2003 Market Advisory Council of the IMO 7
Control Action Operating Reserve - 3
• Requesting IMO Board approval for introducing additional 200 MW (Oct 3 meeting)– same prices and specifications as first 200 MW– implement mid-October– generally supported by MOSC and Technical
Panel
• Continue to monitor impacts and report to IMO Board and stakeholders
8 Oct 2003 Market Advisory Council of the IMO 8
Next Steps
• Additional Control Action Operating Reserve• Remove 200 MW Supplementary Reserve• 12x ramp rate• Pre-dispatch price bands