End-to-End Power System Operation under the Transactive Energy · PDF file ·...

End-to-End Power System

Operation under the

Transactive Energy Paradigm

GWAC Meeting at PJM

March 11-12, 2014

Farrokh Rahimi, Ph.D.

Vice President

Market Design and Consulting

Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc. 3

• Emerging Paradigm Shift Closing the Gap

Between Bulk Power and Distribution System

Operations

• Possibilities and Limitations of Extending

Wholesale/Bulk Power Transactive Techniques to

Retail/Distribution Operations

• Classification of Prosumer-to-Grid Transactive

Energy Products and Services

• Distribution System Operator (DSO) as Market

Agent and Transactive Energy Facilitator

• A New Transactive Node Technology Completing

the End-to-End Missing Link

Topics

Proprietary and confidential. Do not copy or distribute without permission from OATI. © 2012 Open Access Technology International, Inc. 4

Background • Electricity Industry Restructuring (mid-1990s)

– Transmission Open Access

• Transmission Reservation and Scheduling

• Tagging

– Market-based Pricing

• Energy

• Contingency Reserves

• Regulation

– Demand Participation

• Very limited price-responsive demand

• Measures against supply market power due to inadequate demand elasticity

• Emerging Paradigm Shift – Enabling technologies: Advanced Metering Infrastructure, Smart Devices

– Demand-side participation

– Impact on Distribution Utility Business Model

– Possibility to extend transactive techniques from wholesale to retail


Transactions for the End-to-End Operation

Wholesale Markets

Transmission System

Residential Load

4kV – 13kV

600/480/240/120 V

34kV

Secondary

Distribution

Primary

Distribution

Residential

Commercial

69kV /132 kV

Industrial

Sub-

Transmission

PHEV DG

DG

P-Node

Wholesale

Prices

&

Settlement

Charges

ISO and Wholesale

Markets • Energy

• Ancillary Services

• Capacity

• Day-Ahead

• Real-Time

Transmission System

Retail

Prices

Trans.

Constraints

DR Info. &

Dist. constraints

Supply

Distribution System

Customers

Direct

Load

Control

DR,

Ancillary

Services

Supply &

Demand

Response

Data

Pricing

Electricity

Legend

©2014 OATI, Inc.


• Wholesale transactive tools and techniques have

been developed the last two decades for

management of bulk power operations in bilateral

and centralized markets including:

– Physical and financial deals

– Bidding and Scheduling

– Bid-matching/market-clearing/pricing

– Transmission capacity reservations and auctions

– Congestion management

Wholesale vs. Retail Transactive Techniques


• Lessons learned from bulk power operations and wholesale energy markets can be applied to distributed resources, Demand Response (DR), retail markets, and distribution system operations. These include: – Scheduling and dispatch of demand-side resources with

economic and reliability based objectives

– Distribution congestion management and capacity reservations

– Distribution capacity auction to hedge against limited distribution capacity

– Variable Generation balancing using demand-side resources – scheduling and operational considerations

• Except for Energy, products transacted in wholesale markets and used for bulk power operation do not have a corresponding counterpart in retail markets and distribution operations

Wholesale vs. Retail Transactive Techniques (Continued)

Proprietary and confidential. Do not copy or distribute without permission from OATI. ©2014 Open Access Technology International, Inc.

Tradable Market Products

• Existing Market Products

— Capacity (forward markets)

— Energy (forward; Day-Ahead (DA); Real-Time (RT)

— Ancillary Services (forward; DA; RT)

• Contingency Reserves

— Spinning Reserve/Responsive Reserve/Synchronized

Reserve

— Supplemental Reserve/Non-Spinning Reserve

• Regulation (Symmetrical; Upward/Downward)

• Emerging Market Products (Flexibility Reserves)

— Flexible ramping

— Load following

— Balancing Energy


Comparison of Load Following, Ramping,

Balancing Energy, and Regulation

• Flexible Ramping

— May have two components (procured and priced

separately)

• Capacity (MW) or Ramp Rate (MW/min)

• Energy (deployment)

— May be directional (Ramp up; Ramp Down as

separate products)

• Load Following

— May have two components (procured and priced

separately)

• Capacity (reservation)

• Energy (deployment)

— Generally bi-directional


Comparison of Load Following, Ramping,

Balancing Energy, and Regulation (Continued)

• Balancing Energy

— May or may not have a capacity component

— Generally bi-directional

• Regulation

— Generally bidirectional; however in some jurisdictions

(CAISO, ERCOT, SPP IM) two products are procured and

priced separately, namely Regulation Up and Regulation

Down

— May have up to three components

• Capacity (reservation)

• Mileage (based on FERC Order 755 issued October 20, 2011)

• Energy (considered in co-optimization, but generally paid

either as bid or as price taker)


Comparison of Regulation and Load Following

• Time Frame

– Regulation: Seconds (usually four seconds)

– Load Following: Minutes (usually five minutes)

• Pattern

– Regulation: Random (little or no inter-temporal correlation)

– Load Following: Somewhat predictable (inter-temporal correlation)

• Swing MW Magnitude

– Regulation: Small (~1% Peak Load)

– Load Following: Large (~5%-10% of Peak load)

• Sign Reversal

– Regulation: Frequent (several times during a 5-minute dispatch interval)

– Load Following: Generally same sign during a 5-minute dispatch interval

• Net Energy Generation

– Regulation: Zero net hourly instructed energy deviation

– Load Following: Non-zero energy service


Product Differentiation • Retail/Distribution Operation

– Energy Differentiated by

• Speed of response

• Minimum size

• Directional change

• Automatic vs. manual control

• Need to map Retail Capabilities to Bulk Power Operations

Services

– Energy

– Capacity (Forward Market-based Auctions; Resource Adequacy

Requirements)

– Ancillary Services

• Non-Spinning/Supplemental Reserve (10 minutes; 30 minutes)

• Spinning Reserve (10 minutes)

• Regulation (five to ten minute ramp; four-second response)

– Emerging Flexibility Reserves (five to 15 minute: Ramping; Load

Following)


Firm

Commit-

ment

Noti-

fication

Conventional Maybe Yes Yes Yes Yes Yes Yes Yes

Flexible Maybe Maybe Yes Yes Yes Yes Yes Yes

Day Ahead Maybe Maybe Maybe Yes Yes Yes Yes Yes

Real-time Maybe Yes Yes Yes Yes

30 Min Non-Spin Maybe Yes Yes Yes Yes

10 Min Non-Spin Maybe Maybe Yes Yes Yes

10 Min Spin Yes Yes Yes

Regulation Maybe Yes Maybe

Ramping Maybe Yes Maybe

Flexibility Reserve Maybe Yes Maybe

Wh

ole

sale

Pro

du

cts

Demand-Side ProgramsNon-Dispatchable Dispatchable

VoluntaryDemand-limiting

Control

Direct Load Control

(DLC)Conservation

Voltage

RegulationNotification

Eco

no

mic

Re

lia

bil

ity

Capacity

Energy

Ancillary

Services

Balancing(New)

Demand-Side Programs and Wholesale

Products

©2014 OATI, Inc.


Technical Requirements

©2014 OATI, Inc.

Individual

AssetAggregate

Conventional Contract No No Yes Yes

Flexible Various No No Yes Yes

Day Ahead Hourly No No Yes Yes

Real-time 5 Minutes No No Yes Yes

30 Min Non-Spin 30 Minutes No Yes Yes Maybe

10 Min Non-Spin 10 Minutes No Yes Yes Maybe

10 Min Spin 10 Minutes Maybe Yes Yes Maybe

Regulation 4 Sec to 5 Min Yes Yes No No

Ramping 5 Minutes Maybe Yes Yes Maybe

Balancing Energy 5-15 Minutes Maybe Yes Yes Maybe

Telemetry Interval

Metering (Aggregate)

Baseline

Estimation (Aggregate)

Bal

anci

ngRe

liab

ilit

y

ProductsResponse

Time

Cap

acit

yA

nci

llary

Serv

ices

Ener

gy

Eco

no

mic


Demand-side Asset Modeling

Aggre

gati

on Dis

patc

h

Resources/VPPs

DR Programs ∑

5 Min 10 Min 30 Min 1 Hr DA

Contracts

1 Min

• Modeling Assets and Aggregating them into Dispatchable Resources

©2014 OATI, Inc.


Linking Demand-Side Capabilities to Wholesale

Operations – Virtual Power Plant (VPP) Construct

Retail Tariff • Direct Load Control

• Time of Use

• Critical Peak Price

• Dynamic Pricing

• Commercial and Industrial Curtailment Contracts

• Etc.

Transmission

OperatorBalancing

Authority

Bulk Power

Markets

Virtual Power Plant

Dispatch & Operations

Substation

Substation

SubstationSubstation

Bulk Power Products

• Hour-Ahead Firm

• Non Spin

• Spinning Reserves

• Market-Based Prices

Virtual Power Plant • Grid Location

• PMAX , PMIN

• Ramp Rate

• Min/Max Up and Down Time

• Incremental Cost Curve

Capability Data

Telemetry

Dispatch

Instructions

©2014 OATI, Inc.


DSO as TE Facilitator

Balancing Authority (ISO/RTO/Market Operator)

DSO

µGrid

µGrid

µGrid

TX Substation TX Substation

BEMS

HEMP

BEMS

HEMP

Bids & Offers; Forecasts

Dispatch Instructions

Balancing Authority (Transmission Operator)

Availability; Forecasts

Deployment Instructions

DSO

µGrid

µGrid

µGrid

TX Substation TX Substation

BEMS

HEMP

BEMS

HEMP

©2014 OATI, Inc.


• A New Transactive Node Technology from OATI

– Low cost

– User-programmable

– Highly flexible

– Suitable for both pier-to-pier and hierarchical

transactive exchanges

– User ability to enable/disable automatic control triggers

based on a variety of stimuli: price, ambient conditions,

predefined events, manual triggers, etc.

• Demonstration Project Underway

Completing the End-to-End Missing Link


End-to-End Transactive Solution Example

Balancing Authority/

Wholesale Market Operator

DSO

µGrid

OATI webSmartEnergy

Suite

OATI webTrader

OATI webSmartView

©2014 OATI, Inc.


Concluding Remarks

• Opportunities for Prosumer Participation: – Win-win framework for consumers, utilities, and system

operators

– Provision of new products and services

– Environmentally friendly solutions

– Improved system operational reliability and economics

– Low cost versatile Transactive Node technology available

• Barriers to DR Participation: – Operator Dependability Concerns (potential solution: DSO

concept)

– Regulatory Barriers. Example: Lack or ambiguity of regulatory provisions for demand-side tariffs, compensations to utilities, curtailment service providers, etc.

– Technical Barriers. Examples • WECC frequency responsiveness requirement for provision of

spinning reserves

• Minimum size or telemetry requirements

Farrokh Rahimi, Ph.D.

[email protected]

763.201.2000

Thank You

End-to-End Power System Operation under the Transactive Energy · PDF file ·...

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