ASM Phase II Real Time Dispatch and Reserve Constraint Penalty Factors rev3.0 NEPOOL Markets...

ASM Phase IIReal Time Dispatch and Reserve Constraint Penalty Factors rev3.0

NEPOOL Markets CommitteeJuly 12-13, 2005Jim MilliganISO-NE Markets Development

Presentation Title

© 2005 ISO New England Inc. 2

Outline

• Overview of real time dispatch

– TMSR Re-dispatch

– TMSR Shortage

• Proposed Reserve Constraint Penalty Factors

• Use of RCPFs

– Dispatch Solutions

• Reserve Shortages

Presentation Title


Real Time Dispatch

• Objective of real time dispatch algorithm is to determine the least costly means of serving the next increment of load and reserves at each node in the system from available resources given all identified constraints

• Identified constraints include;– Active transmission constraints– Resource operating constraints including ramp rates and limits– System reserve requirements (new with ASM)– Locational reserve requirements (new with ASM)– Real time energy (load) requirements– Regulation requirements

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Real Time Dispatch (cont)

• Available Resources– On-line dispatchable Resources (Generators and Asset Related

Demand)– On-line non-dispatchable Generators and scheduled External

transactions (energy requirements)– Off-line Fast Start Generators

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• Real time ex-ante dispatch outputs– Desired Dispatch Points (MW) and reserve designations for all

dispatchable resources to meet the energy, reserve and transmission constraints

– Ex-ante dispatch rates (energy LMP) for all pricing nodes and reserve clearing prices for each reserve product for system and reserve zones

• Real time ex-post LMP Calculator determines energy LMPs and final reserve allocations based on performance

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• Non-normal dispatch conditions– Re-dispatch to meet system TMSR reserve requirements

• When re-dispatch is required to maintain the system TMSR reserve requirement, the resource(s) re-dispatched will incur an opportunity cost to provide the reserves

• When this condition occurs, the real time TMSR Reserve Clearing Price will be the highest opportunity cost of the resource dispatched to provide the reserves

• The energy LMP will be the sum of the marginal energy resource plus the opportunity cost of meeting the reserve constraint

• All resources that are designated as providing TMSR will be eligible to receive the TMSR Clearing Price for the MWs of reserve provided

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• Non-normal dispatch conditions– System Capacity Deficiency (OP#4)

• If there is insufficient capacity in real time to meet the energy and reserve requirements, the energy needs of the system will be met and the reserve requirements will not be met

• Under these conditions, one or more reserve constraint violation(s) will occur and non-zero real time reserve clearing price(s) will be produced by the Reserve Constraint Penalty Factor(s)(RCPF)

• The energy LMP will be the sum of the marginal energy resource plus the sum of the RCPF(s)

• The RCPFs have been developed to recognize the value of the reserve shortage and reduced reliability state of the power system

Presentation Title


Derivation of RCPFs

• RCPFs have been established to be consistent with operational requirements and practices of power system.

• RCPFs reflect the costs the ISO would be willing to incur to procure reserves given the $1000/MW Energy Cap.

• RCPFs will replace the existing Reserve Shortage Condition Pricing Rule as defined in Market Rule 1.

• RCPFs will provide mechanism to reflect reserve shortages in stages for system and locational requirements.

Presentation Title


Proposed Reserve Constraint Penalty Factors

Location

Product RoS Reserve Zones

TMSRS $50 n/a

TMNSRS $850 n/a

TMORS $100 n/a

TMORL n/a $50

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Dispatch Rules

• Additional Dispatch Rules:

– Unused MWs of higher quality reserves will be available to meet lower quality reserve requirements

– Lower quality Reserve Clearing Prices will cascade upward to higher quality Reserve Clearing Prices

• Reserve capability of on-line Resources will be computed based on either 10*MRR or 30*MRR from DDP constrained by EcoMax using MRR at DDP.

• Reserve capability of off-line Resources will be computed based on CLAIM10/30 Offer data constrained by EcoMax.

Presentation Title


Real Time Re-dispatch For TMSR

• Example:– First example is a re-dispatch to meet TMSR requirements that

result in opportunity costs setting the TMSR Clearing Price– Second example is an application of TMSR RCPF setting the

TMSR Clearing Price in Reserve Shortage Condition

Presentation Title


Unit Supply Offer Data

Unit A Unit B Unit C Unit D

EcoMax 175 185 150 100

EcoMin 100 (SS) 150 75 50

MRR 2 1 3 2

Initial MW

155 150 75 30

Initial TMSR

20 10 30 0

Energy Offers


Block 4 175 $35 185 $50 150 $48 100 $70

Block 3 150 $30 165 $40 140 $42 85 $30

Block 2 125 $25 125 $25 125 $38 70 $25

Block 1 100 $20 100 $25 75 $20 50 $15

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Dispatch at t=0

• System is being economically dispatched– Unit A is the marginal resource and setting LMP at $35– TMSR is assigned based on response rates and available

capacity

• Unit D is in a startup ramp and not dispatchable

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Initial Conditions (Dispatch at t=0)

35

__150__

30

__125__

25

__100__

20

50

__165__

40

__125__

25

__100__

25

48

__140__

42

__125__

38

_75__

20

70

__85__

30

__70__

25

__50__

15


DDP155 DDP

150

DDP75

DDP30

175 185 150 100

Load = 410 MW Spin Reserve Req’t = 60 MW

LMP = $35 TMSR CP = $0

Unit D in S/U

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Dispatch at t=1

• Load has increased to 435MW• Unit A must be constrained to meet reserve requirements

and incurs an opportunity cost• Unit C becomes marginal and sets LMP at $38• Unit D is still not dispatchable

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Dispatch at t=1

35

__150__

30

__125__

25

__100__

20

50

__165__

40

__125__

25

__100__

25

48

__140__

42

__125__

38

_75__

20

70

__85__

30

__70__

25

__50__

15


DDP155 DDP

150

DDP85

DDP45

175 185 150 100


LMP = $38 TMSR CP = $3 (OC Unit A)

Unit D in S/U

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Dispatch at t=2

• Load has increased to 451MW• Unit D is now dispatchable and eligible to participate in

energy and reserve dispatch• Unit C is marginal and sets energy LMP at $38• TMSR is satisfied without re-dispatch

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Dispatch at t=2

35

__150__

30

__125__

25

__100__

20

50

__165__

40

__125__

25

__100__

25

48

__140__

42

__125__

38

_75__

20

70

__85__

30

__70__

25

__50__

15


DDP175

DDP150

DDP76

DDP50

175 185 150 100


LMP = $38 TMSR CP = $0

Unit D is dispatchable

Presentation Title


Dispatch at t=X-1

• Load has increased to 550MW• System is exactly meeting energy and reserve

requirements• Unit B is the marginal energy resource and sets LMP at

$50• Units A and C are constrained to meet reserve

requirements• Unit A has the highest opportunity cost and sets TMSR

CP at $15

Presentation Title


Dispatch at t=X-1

35

__150__

30

__125__

25

__100__

20

50

__165__

40

__125__

25

__100__

25

48

__140__

42

__125__

38

_75__

20

70

__85__

30

__70__

25

__50__

15


DDP170 DDP

175

DDP120

DDP85

175 185 150 100


LMP = $50 TMSR CP = $15

Presentation Title


Dispatch at t=X

• Load has increased to 551MW• System energy requirements are being met, however,

insufficient capacity exists to meet the reserve requirements

• TMSR CP is set by TMSR RCPF=$50• Unit A becomes the marginal energy resource and

energy LMP is $85 (Unit A energy offer plus TMSR RCPF)

Presentation Title


Dispatch at t=X (TMSR Shortage)

35

__150__

30

__125__

25

__100__

20

50

__165__

40

__125__

25

__100__

25

48

__140__

42

__125__

38

_75__

20

70

__85__

30

__70__

25

__50__

15


DDP171 DDP

175

DDP120

DDP85

175 185 150 100


Spin Actual = 59

LMP = $85 TMSR CP = $50

Presentation Title



• Non-normal dispatch conditions– Re-dispatch to meet local reserve requirements

• See example

Presentation Title


Locational Example of RCPFs

• Initial conditions:Actual EcoMin EcoMax Energy MRR

Reserve

– GenA 25 25 100 $70 1 30– GenB 80 50 100 $50 5 20– GenC 0 5 25 $150 C10=25 25– GenD 0 5 25 $200 C30=25 25

GenA and GenB committed, Local Reserve Req’t = 100 MW

Interface Limit =200MW, Interface Flow=150MW

Local Load = 255

System LMP = $50, Reserve Prices = $0

Presentation Title


Conditions at t=0

Local Load = 255

GenA 25 R=30

GenB 80 R=20

GenC 0 R=25

GenD 0 R=25

Load 255

L Res = 150

Local LMP $50

L RCP = $0

Limit = 200

Actual = 150

System LMP = $50

System RCPs = $0

System

Reserve Zone

Presentation Title


Conditions at t=1

Local Load = 300

GenA 25 R=30

GenB 100 R=0

GenC 0 R=25

GenD 0 R=25

Load = 300

L Res = 105

Local LMP = $55

L RCP = $0

Limit = 200

Actual = 175

System LMP = $55

System RCPs = $0

System

Reserve Zone

Energy Balance is satisfied

Local Reserve Req’t is satisfied

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Conditions at t=2

Local Load = 310

GenA 30 R=30

GenB 100 R=0

GenC 0 R=25

GenD 0 R=25

Load = 310

L Res = 100

Local LMP = $70

L RCP = $15

Limit = 200

Actual = 180

System LMP = $55

System RCPs = $0

System


Local Reserve Req’t is satisfied

Re-dispatch of Interface – similar to Gen opportunity cost

Reserve Zone

Presentation Title


Conditions at t=3

Local Load = 351

GenA 70 R=30

GenB 100 R=0

GenC 0 R=25

GenD 0 R=25

Load = 351

L Res = 99

Local LMP = $105

L RCP = $50

Limit = 200

Actual = 181

System LMP = $55

System RCPs = $0

System


Local Reserve Req’t is violated

Reserve Zone

Presentation Title


Conditions at t=4

Local Load = 371

GenA 71 R=29

GenB 100 R=0

GenC 0 R=25

GenD 0 R=25

Load = 371

L Res = 79

Local LMP = $120

L RCP = $50

Limit = 200

Actual = 200

System LMP = $55

System RCPs = $0

System


Local Reserve Req’t is violated

Reserve Zone

Presentation Title


Reserve Shortages

• Previous example shows local reserve shortage and use of local RCPF

• Similar concept employed for system reserve shortages• Typical condition would begin with a shortage of TMOR

followed by shortage of TMNSR, and in extreme cases, a shortage of TMSR.

• Under this scenario, system TMOR RCPF would be violated first followed by system TMNSR RCPF and finally system TMSR RCPF

Presentation Title


Reserve Shortages (cont)

• Frequency of System Reserve Shortages– Reference: Analysis of Historical Reserve Shortages White

Paper

• Historical analysis indicates that the Control Area has experienced a deficiency in Operating Reserves (TMOR) in real time approximately 0.26% of time.

• Of the total Number of deficient conditions (24), five resulted in a deficiency of TMNSR, and of the five, three may have resulted in a deficiency of TMSR.

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Reserve Shortages (cont)

• Historical information does not exist to perform similar analysis of locational reserve shortage conditions. The ISO is continuing to investigate the feasibility of producing such an analysis.

Presentation Title


Discussion and Questions

ASM Phase II Real Time Dispatch and Reserve Constraint Penalty Factors rev3.0 NEPOOL Markets...

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