Energy Storage and Aggregated Distributed Energy Provide information about how energy storage and...
Transcript of Energy Storage and Aggregated Distributed Energy Provide information about how energy storage and...
ISO PUBLIC - © 2015 CAISO
Energy Storage and Aggregated
Distributed Energy Resource
Education Forum
April 16 & 23, 2015
California ISO
The information contained in these materials is provided for general information only and does not constitute legal or regulatory advice. The ultimate
responsibility for complying with the ISO FERC Tariff and other applicable laws, rules or regulations lies with you. In no event shall the ISO or its employees
be liable to you or anyone else for any decision made or action taken in reliance on the information in these materials.
ISO PUBLIC - © 2015 CAISO
Today’s topics
Item 1 – Context, background and purpose
Item 2 – Introduction to ISO and market concepts
Item 3 – Overview of current rules
Item 4 – Wholesale demand response products
Item 5 – Non-generator resource
Item 6 – Procurement and resource adequacy
Item 7 – Other efforts and challenges
Slide 2
ISO PUBLIC - © 2015 CAISO
Education forum – context,
background and purpose
ISO PUBLIC - © 2015 CAISO
California energy and environmental policies drive
renewable integration needs
• Greenhouse gas reductions to 1990 levels by 2020
• 33% of load served by renewable generation by 2020
• 12,000 MW of distributed generation by 2020
• Ban on use of once-through cooling in coastal power
plants
• Governor Brown’s 2030 goals:
– 50% renewables
– 50% reduction petroleum use – cars & trucks
– Double energy efficiency existing buildings
– Make heating fuels cleaner
Slide 4
ISO PUBLIC - © 2015 CAISO Slide 5
Solar generation doubles between now and 2020
(IOU data through 2017 and RPS Calculator data 2018 – 2020)
ISO PUBLIC - © 2015 CAISO
Wind & solar profiles
Slide 6
Peak demand
44,000 MW
Sample winter day in 2020
ISO PUBLIC - © 2015 CAISO
Flexible resources will be essential to meeting the net
load demand curve
Sample winter day in 2020
Slide 7
ISO PUBLIC - © 2015 CAISO
The ISO experiences over-generation conditions due
to abundant renewable supply and dispatch limitations
on some resources.
Ramp need
~13,000 MW
in three hours
Potential over-
generation
Slide 8
Curtailment date Time
Duration
(minutes)
Wind Curtailment
(max MW)
Solar Curtailment
(max MW)
Total
MWh
February 19, 2014 11:11 170 114 148 742.3
March 7, 2014 3:44 60 123 0 123.0
April 12, 2014 12:40 30 174 25 99.5
April 27, 2014 8:40 90 485 657 1713.0
Total 350 896 830 2677.8
ISO PUBLIC - © 2015 CAISO
Renewable curtailment in 2024 at 40% RPS
Slide 9
Solutions
Increase storage and demand response
Enable economic dispatch of renewables
Decarbonize transportation fuels
Retrofit existing power plants
Align time-of-use rates with system conditions
Target energy efficiency
Deepen regional coordination
ISO PUBLIC - © 2015 CAISO
California’s energy storage procurement targets
resulted in approximately 2,000 MW of storage
projects in the ISO interconnection queue.
Slide 10
The initial target for
transmission interconnected
storage is 700 MW.
ISO PUBLIC - © 2015 CAISO
California’s energy storage roadmap
• In 2014, a California energy storage roadmap was
published.
– Developed in collaboration with the CPUC and CEC
to understand stakeholder challenges bringing energy
storage to market.
– Also touched on challenges with aggregating
distributed energy resources (DER).
• The roadmap identified needed actions to address these
challenges.
Slide 11
ISO PUBLIC - © 2015 CAISO
Roadmap identified several high priority action items
for the ISO
• Rate treatment – Clarify wholesale rate treatment and ensure
that the ISO tariff and applicable BPMs and other
documentation provide sufficient information.
• Market participation –
– Clarify existing ISO requirements, rules and market
products for energy storage to participate in the ISO
market.
– Identify gaps and potential changes or additions to existing
ISO requirements, rules, market products and models.
– Where appropriate, expand options to current ISO
requirements and rules for aggregations of distributed
storage resources.
Slide 12
ISO PUBLIC - © 2015 CAISO
ISO has developed a plan for carrying out these
roadmap action items
• Host a forum to educate stakeholders on existing ISO
requirements, rules, market products and models for
energy storage and aggregated DER to participate in the
ISO market.
– April 16 and 23
• Conduct a stakeholder process to specify and address
any needed enhancements to these existing rules.
– Launching in April/May
– Present scope and timeline at July Board meeting
Slide 13
ISO PUBLIC - © 2015 CAISO
Purpose of today’s education forum
• Provide information about how energy storage and
aggregated distributed energy resources may participate
in ISO markets today.
– The focus is on current tariff approved rules.
• Discussion of enhancements to current rules is not a
topic of this education forum.
– That’s the focus of the subsequent stakeholder
initiative.
Slide 14
ISO PUBLIC - © 2015 CAISO
By the end of this forum you will…
Slide 15
Gain a high-level understanding of how storage and
aggregated DER can participate in ISO markets under
today’s rules
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 16
ISO PUBLIC - © 2015 CAISO
Introduction to ISO and market
concepts
ISO PUBLIC - © 2015 CAISO
Independent system
operator
Coordinates, controls and monitors the
electrical power system
Acts as a marketplace for wholesale
power
Slide 18
ISO PUBLIC - © 2015 CAISO
What does the ISO do?
• Operate the grid reliably and
efficiently
• Operate effective spot markets for
energy and reserves
• Plan and identify future grid
infrastructure needs
• Promote grid infrastructure
development
• Provides fair and open
transmission access
• Manage new generation
interconnections
Slide 19
ISO PUBLIC - © 2015 CAISO
ISO roles
Slide 20
• Operates a transmission control area
• Matches generation with load and maintains electric frequency of the grid
Balancing authority
• Runs day-ahead and real-time markets for energy and ancillary services
• Manages energy imbalance market across participating areas
Market operator
ISO PUBLIC - © 2015 CAISO
California balancing authorities
• The ISO manages the flow
of electricity for about 80
percent of California
• There are certain pockets of
California where local public
power companies manage
their own transmission
systems
Slide 21
ISO PUBLIC - © 2015 CAISO
Energy imbalance market balancing authority areas
• Neighboring balancing
authorities have partnered with
the ISO to develop a real-time
energy imbalance market
• EIM operates across
participating balancing areas
• PacifiCorp was activated on
October 1, 2014
• NV Energy activation
scheduled for October 2015
• Puget Sound Energy
scheduled for October 2016
Slide 22
ISO PUBLIC - © 2015 CAISO
Electricity is produced, delivered, and consumed at the
speed of light while balance must be maintained.
Slide 23
ISO PUBLIC - © 2015 CAISO
The flow of electricity today
Low-voltage utility distribution lines carry power to consumers
ISO operators manage flow of electricity to utility sub-station
ISO market fine-tunes supply/demand in real time
Forecastingdemand Buying and selling
between parties before it is scheduled for delivery by ISO Power
supplied/stored
Day-ahead marketrun to clear bids,
procure reserves and manage congestion
Slide 24
ISO PUBLIC - © 2015 CAISO
How the ISO fits in…
Local utility
Customer
Utility owned generation
ISO
Power marketers
Scheduling
Suppliers
coordinators
Slide 25
ISO PUBLIC - © 2015 CAISO
Market concepts
ISO PUBLIC - © 2015 CAISO
Majority of the ISO’s electricity demand is met through
utility-owned or bilaterally procured resources
Slide 27
ISO PUBLIC - © 2015 CAISO Slide 28
Procurement of generic resource adequacy
CPUC
LSE
LSE
Supplier
Supplier
CPUC CAISO
1. Local regulatory authority
(LRA) mandates procurement
of capacity to meet peak load
forecast.
2. Load serving entities (LSEs)
engage in bi-lateral
procurement of capacity to
meet this requirement.
3. LSEs demonstrate
procurement to LRA and ISO
4. Suppliers demonstrate RA
sales to ISO.
5. LRA ensures LSE
compliance.
6. ISO ensures suppliers
corroborate LSE showings and
met needs.
“You must procure”
Bi-lateral procurement activity
Demonstrations
ISO PUBLIC - © 2015 CAISO
The ISO has two markets
Day-ahead energy market
• Enables parties to schedule contracted supply/demand
• Enables suppliers to offload excess supply in the form of energy or ancillary services
• Enables load serving entities the ability to secure pricing for load due to changes in load forecasts or for incremental changes in demand
• Transactions are settled at day-ahead prices
Real-time energy market
• Fifteen-minute market and five minute dispatch intended to meet instantaneous demand
• Fifteen-minute market supports renewable integration
• Includes ISO BAA and EIM BAAs
• Transactions are settled at fifteen-minute and five-minute prices
Slide 29
ISO PUBLIC - © 2015 CAISO
Day-ahead market
ISO PUBLIC - © 2015 CAISO
Clears bid-in supply against bid-in
demand
Day-ahead schedules and
awards
Day-ahead prices
Procures 100% ancillary services
Ancillary service awards
Day-ahead ancillary
services prices
Residual unit commitment
RUC awards
Day-ahead RUC prices for
capacity
Slide 31
Day-ahead market activities and pricing
ISO PUBLIC - © 2015 CAISO
Physical energy is the electricity needed to meet the
needs of the ISO consumers – industrial, commercial,
and residential alike
Energy demand
CAISO forecast of CAISO demand (CFCD)
Energy supply
Through ISO markets
Bilateral contracts
Utility-owned generation
Slide 32
Procured outside of the ISO
markets, but submitted to the ISO
through bidding and scheduling
ISO PUBLIC - © 2015 CAISO
The ISO procures reserves in the day-ahead market
Ancillary services
used to maintain grid
reliability
Residual unit commitment
used to meet the forecasted
demand
Slide 33
ISO PUBLIC - © 2015 CAISO
Ancillary services ensure reliability as electricity is
moved from generating sources to customers
• Under ISO control through automatic generation control (AGC)Regulation up
• Under ISO control through automatic generation control (AGC)
Regulation down
• Synchronized to the grid and available to provide energy in 10 minutes
Spinning reserve
• Not synchronized to the grid, but can provide energy in 10 minutes
Non-spinning reserve
Slide 34
ISO PUBLIC - © 2015 CAISO
Ancillary service procurement is regional
ISO system region
ISO system region +
expanded
North of path 15 +
expanded
North of path 26 +
expanded
South of path 15 +
expanded
South of path 26 +
expanded
P26
P15
Slide 35
ISO PUBLIC - © 2015 CAISO
A method of ensuring
reliability of the grid
Capacity procurement
from additional day-ahead supply for real-time
Selects from resource adequacy
capacity and economic bids
Awarded resources
must submit an energy bid
in the real-time markets
Slide 36
Residual unit commitment
ISO PUBLIC - © 2015 CAISO
Capacity procurement targets
• Percentage of CAISO forecast of CAISO demand (CFCD) for each hour based on the need to meet WECC and NERC performance standards (CPS1 and CPS2)
Regulation requirement
• Based on WECC and NERC reliability standards
Contingency reserve
requirements (Spin/Non-spin)
• Based on total CAISO forecast of CAISO demandResidual unit commitment
Slide 37
ISO PUBLIC - © 2015 CAISO
Residual unit commitment determination
Supply bids
Demand bids
Energy
$/MWh
MW
Total cleared demand
RUC
ISO forecast of demand
Slide 38
ISO PUBLIC - © 2015 CAISO
RUC is procured in zones
Regional requirements align with PG&E,
SCE, SDG&E and VEA
service territories
Slide 39
ISO PUBLIC - © 2015 CAISO
Real-time market
ISO PUBLIC - © 2015 CAISO
What’s the purpose of the real-time market?
To procure “balancing” energy to meet the instantaneous demand that draws energy from the grid
To dispatch supplies to meet the demand forecast and export schedules
To reduce supply if there is not enough demand
In extreme conditions, to curtail demand based on economic signals when supply is exhausted or unavailable (ISO BAA)
To procure ancillary services as needed (ISO BAA)
Slide 41
ISO PUBLIC - © 2015 CAISO
Procure balancing energy
15-minute market awards and
5-minute real-time dispatch
Real-time 15-minute and 5-minute prices
Procures additional
ancillary services
Ancillary service awards
Real-time ancillary
services prices
Residual unit commitment
Convert day-ahead RUC awards to
energy if needed
Real-time prices for energy
Slide 42
Real-time market activities and pricing
ISO PUBLIC - © 2015 CAISO
Benefits of ISO spot markets
Centralized economic dispatch optimizes use of all resources – reduces cost of serving demand
Resolve transmission constraints economically
Transparency on constraints and costs
System is re-dispatched every five minutes to meet current system conditions
Slide 43
ISO PUBLIC - © 2015 CAISO
Real-time energy bids
Submitted by generators, curtailable loads, intertie resources, EIM participating resources
Submitted by resources with RUC awards or RA capacity without a day-ahead commitment
May also come from non-RA resources not committed in the day-ahead market
Bids are all co-optimized and may be used to increase or reduce supply
They are used to manage the instantaneous demand movement on the grid
Slide 44
ISO PUBLIC - © 2015 CAISO
Master file, outages, and resource availability
Resource information maintained in master file
Availability values are sent to market systems - setting the limits for forward schedules and real-time dispatches
Each time a unit has a physical restriction that limits its output, an outage card should be submitted to prevent being dispatched to a level it cannot achieve
An outage card is the only way to submit or change the availability
Slide 45
ISO PUBLIC - © 2015 CAISO
Ancillary services in real-time
• May convert contingency reserve capacity into energy
In the event of a grid disturbance in
the ISO BAA
• Replacement for IFM awards that are not available in real-time
• Changes to load forecast
• Replacement of converted capacity
• Additional requirements in regional areas
The ISO accepts bids for ancillary
services in the real-time market due to:
• Is designated as contingency only capacityCapacity awarded
in real-time
Slide 46
ISO PUBLIC - © 2015 CAISO
Market pricing
ISO PUBLIC - © 2015 CAISO
Nodal pricing
Supply resource
is paid the nodal
price
Load pays the
weighted average
price of all load nodes
in the service territory
Imports and
exports are paid
or pay the price
at the scheduling
point
Slide 48
PDR/RDRR is paid
the weighted average
of the prices for the
nodes over which they
are aggregated
ISO PUBLIC - © 2015 CAISO
Components of the locational marginal price *
Energy Congestion LossesLocational marginal
price
Slide 49
* LMP for EIM entities also contains a greenhouse gas component
ISO PUBLIC - © 2015 CAISO
Determining the energy component
Supply bids
Demand bids
Energy
$/MWh
MW Total cleared demand
Market
clearing
price
Slide 50
ISO PUBLIC - © 2015 CAISO
Congestion
• A situation in which the lowest-priced electricity can’t flow
freely to a specific area due to heavy use of the
transmission system
• Caused by:
– Lack of transmission capacity
– Outages
Slide 51
ISO PUBLIC - © 2015 CAISO
Loss component example
Slide 52
150 MWEnergy lost in transmission 140 MW
Losses are calculated by the use of the full network model and the optimal power flow solution and will affect the LMP calculated
by the market system
ISO PUBLIC - © 2015 CAISO
Industry landscape
ISO PUBLIC - © 2015 CAISO
Integrating renewables, storage, and distributed
energy resources
Implement environmental
policy
Maintain reliability
Mitigate upward
pressure on costs
Slide 54
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 55
ISO PUBLIC - © 2015 CAISO
Overview of current rules
How storage and aggregated distributed energy resources may participate in ISO market today
ISO PUBLIC - © 2015 CAISO
Topics
• Market participation models
• Storage and non-aggregated DER scenarios
• Aggregation
Slide 57
ISO PUBLIC - © 2015 CAISO
Examples of how resources may participate in the
ISO’s energy and ancillary services markets today
• Participating Generator
• Participating Load
• Proxy Demand Resource (PDR)
• Reliability Demand Response Resource (RDRR)
• Non-Generator Resource (NGR)
Slide 58
Today’s education forum will focus on those of most interest to
storage and aggregated DER:
Wholesale Demand Response Products (PDR & RDRR)
Non-Generator Resource (NGR)
ISO PUBLIC - © 2015 CAISO
Definitions / clarification of terminology
Slide 59
Transmission Connected
Means connected to the ISO controlled grid
Distribution Connected
Means connected to
distribution facilities
controlled by a
distribution company,
regardless of voltage
level, and served by
the ISO grid
Distributed Energy
Resources (DER)
Includes any distribution
connected resources
regardless of size or
whether it is connected
behind or in front of the
end-use customer meter
DER includes DR, EV, DG and storage
ISO PUBLIC - © 2015 CAISO
Transmission connected storage scenarios
• Stand alone storage
• Storage behind the meter of a generating facility
Slide 60
ISO PUBLIC - © 2015 CAISO
Transmission connected storage scenarios under
current participation models
Slide 61
Storage scenario
Participation Models
Participating
Gen
(PG)
Part.
Load
(PL)
PDR RDRR NGRPump Storage
Hydro model
Stand aloneFor Energy Storage,
NGR is a better fit
Energy
Storage
Pump Storage
Gen/Load
ISO PUBLIC - © 2015 CAISO
Transmission connected storage scenarios under
current participation models (continued)
Slide 62
Storage scenario
Participation Models
Participating
Gen
(PG)
Part.
Load
(PL)
PDR RDRR NGRPump Storage
Hydro model
Behind meter of
generating facility
For Energy Storage,
NGR is a better fit
Energy
Storage
Pump Storage
Gen/Load
ISO PUBLIC - © 2015 CAISO
DER scenarios
• Interconnected under WDAT/WDT
– Stand alone
– Behind meter of generating facility
– Behind end-use customer meter
• Interconnected under Rule 21
– Behind end-use customer meter
Slide 63
DER may currently participate in ISO markets as
Part. Gen., Part. Load, NGR, or PDR
if they meet minimum capacity requirements
ISO PUBLIC - © 2015 CAISO
WDAT-connected DER scenarios under current
participation models
Slide 64
Scenario
Participation Models
Part. Gen
(PG)
Part.
Load
(PL)
PDR RDRR NGRPump Storage
Hydro model
Stand alone Gen PumpsEnergy
Storage
Pump Storage
Gen/Load
ISO PUBLIC - © 2015 CAISO
WDAT-connected DER scenarios under current
participation models (continued)
Slide 65
Scenario
Participation Models
Part. Gen
(PG)
Part.
Load
(PL)
PDR RDRR NGRPump Storage
Hydro model
Behind meter of
generating facilityGen Pumps
Energy
Storage
Pump Storage
Gen/Load
ISO PUBLIC - © 2015 CAISO
WDAT-connected DER scenarios under current
participation models (continued)
Slide 66
Scenario
Participation Models
Part. Gen
(PG)
Part.
Load
(PL)
PDR RDRR NGRPump Storage
Hydro model
Behind end-use
customer meterGen Pumps
Energy
Storage
Pump Storage
Gen/Load
ISO PUBLIC - © 2015 CAISO
Rule 21-connected DER scenarios under current
participation models (continued)
Slide 67
Scenario
Participation Models
Part.
Gen
(PG)
Part.
Load
(PL)
PDR RDRR NGRPump Storage
Hydro model
Behind end-use
customer meterGen Pumps
Demand
Response
Demand
Response
Energy
Storage
Pump Storage
Gen/Load
ISO PUBLIC - © 2015 CAISO
Aggregation
Slide 68
Generally means a combining of multiple sub-
resources, at single or multiple locations, into
a single market resource that participates in
ISO markets.
ISO PUBLIC - © 2015 CAISO
Aggregation in the ISO tariff
• Participating Generator
• Physical Scheduling Plant
• Aggregated Participating Load
• Proxy Demand Resource (PDR)
Slide 69
ISO PUBLIC - © 2015 CAISO
Aggregation in the ISO tariff
Participating Generator
A generator or other seller of energy or AS through a SC
over ISO controlled grid from a generating unit
i. with a rated capacity of 1 MW or greater
ii. with a rated capacity of from 500 kW up to 1 MW for
which the generator elects to be a Participating
Generator
iii. providing AS or submitting energy bids through an
aggregation arrangement approved by the ISO
which has undertaken to be bound by the terms of the ISO
Tariff.
Slide 70
ISO PUBLIC - © 2015 CAISO
Aggregation in the ISO tariff (continued)
Physical Scheduling Plant
A group of two or more related generating units which either by
physical necessity or operational design must be operated as if
they were a single unit, or any generating units containing
related multiple generating components which meet one or more
of the following five criteria:
1. Multiple generating components are related by a common
flow of fuel which cannot be interrupted without a substantial
loss of efficiency of the combined output of all components;
2. The energy production from one component necessarily
causes energy production from other components;
Slide 71
ISO PUBLIC - © 2015 CAISO
Aggregation in the ISO tariff (continued)
Physical Scheduling Plant (continued)
3. The operational arrangement of related multiple generating
components determines the overall physical efficiency of the
combined output of all components;
4. The level of coordination required to schedule individual
generating components would cause the ISO to incur
scheduling costs far in excess of the benefits of having
schedule such individual components separately; or
5. Metered output is available only for the combined output of
related multiple generating components and separate
generating component metering is either impractical or
economically inefficient.
Slide 72
ISO PUBLIC - © 2015 CAISO
Aggregation in the ISO tariff (continued)
Aggregated Participating Load
• A collection of participating loads enabling participation
in ISO markets
– like generation by submitting supply bids when
offering curtailable demand and
– as non-participating load by submitting demand bids
to consume in the day-ahead market only
• Registered as a custom load aggregation point (set of
pricing nodes used for submission of bids and settlement
of demand)
• Individual participating loads must be ISO metered
Slide 73
ISO PUBLIC - © 2015 CAISO
Aggregation in the ISO tariff (continued)
Proxy Demand Resource (PDR)
• A load or aggregation of loads that provides demand
response services pursuant to a Demand Response
Provider Agreement (DRPA) between the ISO and a
Demand Response Provider.
• Aggregations of locations in a PDR must be contained
within a Sub-LAP.
• PDRs are Scheduling Coordinator Metered Entities.
• More on PDR later in the forum…
Slide 74
ISO PUBLIC - © 2015 CAISO
Existing aggregation arrangements involving ISO grid
connected resources
• Common examples
– Hydroelectric facilities on same river system
– Cogeneration / combined cycle (a combustion turbine
aggregated with a heat recovery steam generator)
– Multiple combustion turbines at the same location
– Wind turbines
– Geothermal
– Solar
• Many pre-dated the ISO’s formation
Slide 75
ISO PUBLIC - © 2015 CAISO
General requirements for aggregation of grid
connected resources under current rules
• Individual sub-resources must be ISO metered entities*
– Unless electrically connected (see diagram below)
Slide 76
* PDR and RDRR are exceptions
ISO PUBLIC - © 2015 CAISO
General requirements for aggregation of grid
connected resources under current rules (continued)
• Individual sub-resources must be related
– Each under the same agreement type (e.g., PGA,
PLA, or DRPA, etc.)
– Operate as a single market resource under a single
resource ID
• Dispatch and control signals will be at the single market
resource level
Slide 77
ISO PUBLIC - © 2015 CAISO
General requirements for aggregation of grid
connected resources under current rules (continued)
• Single ISO controlled grid point of interconnection*
– Not across multiple pricing nodes
• Rated capacity of single market resource at least 500
kW**
* Except for PDR and RDRR
** Except for PDR
Slide 78
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 79
ISO PUBLIC - © 2015 CAISO
Wholesale demand response
Proxy Demand Resource
Reliability Demand Response Resource
ISO PUBLIC - © 2015 CAISO
The ISO offers several market models to enable load
participation
Slide 81
Model General Application
Participating load • Large pumps
• Loads
Pumped storage • Large pumped storage
• Small storage devices
Proxy demand resource
(PDR)
• Aggregated, economically bid
demand response
Reliability demand response
resource (RDRR)
• Aggregated, emergency
demand response
ISO PUBLIC - © 2015 CAISO
Topics
• Terms and acronyms
• Overview and purpose
• Characteristics
• Pre market processes– Agreements & system access
– Registration
• Market participation– Bidding
– Dispatch
– Outage management
• Post market processes– Meter data submission
– Performance evaluation
– Settlements
Slide 82
ISO PUBLIC - © 2015 CAISO
Terms and acronyms
ISO PUBLIC - © 2015 CAISO
Terms and acronyms
• Proxy Demand Resource (PDR)
• Reliability Demand Response Resource (RDRR)
– Reliability Demand Response Product (RDRP)
• Demand Response Provider (DRP)
• Load Serving Entity (LSE)
• Utility Distribution Company (UDC)
• Demand Response Registration System (DRRS)
• Demand Response System (DRS)
• Default Load Adjustment (DLA)
Slide 84
ISO PUBLIC - © 2015 CAISO
Terms and acronyms
• Default Load Aggregation Point (DLAP)
• Sub Load Aggregation Point (sub-LAP)
• Pricing Node (Pnode)
• Scheduling Coordinator Metered Entity (SCME)
• Residual Unit Commitment (RUC)
• Locational Marginal Price (LMP)
• Settlement Quality Meter Data (SQMD)
• Scheduling Coordinator (SC)
• Scheduling Infrastructure and Business Rules (SIBR)
Slide 85
ISO PUBLIC - © 2015 CAISO
Purpose and overview
ISO PUBLIC - © 2015 CAISO
PDR and RDRR were developed in response to FERC
orders and CPUC rulings to integrate utility programs and
provide open access to 3rd party participation
Slide 87
PDR
Proxy Demand Resource implemented in 2010
RDRR “aka” RDRP
Reliability Demand Response Resource (Product)
implementation finalized in 2014 after FERC ruling and
compliance filing delays
2010
2014
ISO PUBLIC - © 2015 CAISO
These initiatives developed models to provide enablement
specific to demand resources
Provided a wholesale demand response model that
enabled:
• Direct participation of existing retail demand
response programs
• Simplification of forecasting and scheduling
• Participation independent of load serving entity
• Comparable treatment
• Enabled demand response participation all hours
and days of the year
Slide 88
ISO PUBLIC - © 2015 CAISO
PGE1
PGE2
Direct participation of load and simplification in the
scheduling of load curtailment participation as a supply
resource
• LSEs load is forecasted and
scheduled or bid-in at the DLAP
• DRPs bid the demand response
portion of the load into the ISO
• PDR/RDRR bid as a pseudo
generator
• The LSE and the DRP could be
the same entity or two separate
entities
Slide 89
DRPPDR
RDRR
LSE Load
DLAP
ISO PUBLIC - © 2015 CAISO
Overview of participation options for PDDR and RDRR
Design Services Market dispatch Description
Proxy
Demand
Resource
Energy, AS non-
spinning, AS spinning,
and residual unit
commitment (RUC)
Economic day-
ahead and real-
time
Bids into ISO
markets as
supply
Reliability
Demand
Response
Resource
Energy Economic day-
ahead
Reliability real-
time
Bids into ISO
markets as
supply
Used for
reliability
purposes
Slide 90
PDR and RDRR rely on the same technical functionality and
infrastructure but have different participation options and
requirements
ISO PUBLIC - © 2015 CAISO
Characteristics
ISO PUBLIC - © 2015 CAISO
PDR provides DR load curtailment participation
comparable to supply resources
PDR can bid into the following markets:
– Energy: day-ahead and real-time
– Ancillary services: day-ahead and real-time
• Non-spinning reserve
• Spinning reserve
PDR may also:
– Submit RUC availability
– Self-provide ancillary services
• Self schedule must be = to minimum load
Slide 92
ISO PUBLIC - © 2015 CAISO
A PDR must be capable of providing measurable and
verifiable load curtailment with characteristics of supply
Minimum load curtailment ≥ 100kW for energy
Minimum load curtailment ≥ 500kW for AS
Smaller loads may be aggregated to achieve minimum targets
Can bid load curtailment in 10kW minimum increments
Telemetry is required for resources ≥ 10MW or participating in AS
Scheduling coordinator metered entity (SCME)
Slide 93
ISO PUBLIC - © 2015 CAISO
Telemetry requirements were slightly modified for PDR
• Current ISO tariff requirements Section 7.6.1. (d)
– Resources ≥ 10 MW
– Resources providing ancillary services
• Business practice manual for direct telemetry
– Section 6.10 exempted DRP from RIG aggregation location
limits
– Section 6.21 increased scan rates for PDR
Slide 94
Resource Type Scan Rate
Resources > 10 MW, or
AS participation at any size
2 Seconds
PDR 60 Seconds*
*not applicable for spinning reserve participation
ISO PUBLIC - © 2015 CAISO
RDRR participation options:
– Energy: day-ahead
– Offer uncommitted capacity and respond to a reliability
event for the delivery of “reliability energy” in real-time
• May elect discrete dispatch for real-time only
Slide 95
RDRR enables emergency responsive demand response
resource participation
Modeled like a supply resource relying on the functionality
and infrastructure designed for PDR
RDRR may not:
– Submit RUC availability or ancillary service bids
– Self-provide ancillary services
ISO PUBLIC - © 2015 CAISO
A RDRR must be capable of providing measurable and
verifiable load curtailment with similar characteristics of
supply
Minimum load curtailment ≥ 500kW
Smaller loads may be aggregated to achieve minimum targets
Can bid load curtailment in 10kW minimum increments
Telemetry is not required
Scheduling coordinator metered entity (SCME)
Slide 96
ISO PUBLIC - © 2015 CAISO
Additional RDRR resource specific characteristics
created for real time reliability participation
Must be capable of delivering reliability energy in real-time, reaching full curtailment within 40 minutes
May elect to receive discrete dispatches in real-time, under this option
-Size limited to 50MW
-Cannot participate in day-ahead market
Minimum run time cannot be greater than one (1) hour
Must have sustained response period or maximum run time of at least four (4) hours
Slide 97
ISO PUBLIC - © 2015 CAISO Slide 98
RDRR may elect to be discretely dispatched when
participating in real-time
Discrete dispatch provides “block” non-marginal dispatching
Figure illustrates discrete dispatches
10 MW Underlying LoadRDRR, PMax = 8 MW
MW
10
0
2
Firm service level
6MW
4MW
6 MW
3 MW
HE12 HE 13 HE 14 HE 15 HE 16 HE 17
Hour Ending
Load Profile
66MW
ISO PUBLIC - © 2015 CAISO
RDRR has specific participation expectations
RDRRs are not required to participate economically therefore
day-ahead market participation is optional
Slide 99
All uncommitted RDRR capacity must be offered as energy in
the real-time market
•Bids between $950 - $1000/MWo 95% -100% bid price cap
•Used for reliability-only purposes
RDRRs electing discrete dispatch submits single-segment bids
• Must do so for entire term
• Must register in master file o Discrete dispatch
o Pmin value = 0MW
o Minimum load cost compensation = $0
ISO PUBLIC - © 2015 CAISO
RDRR terms enable the participation of both seasonal &
annual DR programs and in establishing availability limits
A term is a defined 6 month period
• Must be available for up to 15 events and/or 48 hours per
term
• Economic participation in the day-ahead market will not
reduce availability limits
• Availability standards apply for RDRR identified as
resource adequacy resources
Slide 100
Summer 2015 6/1/2015 9/30/2015
Winter 2015 10/1/2015 5/31/2016
ISO PUBLIC - © 2015 CAISO
RDRR can be used in real-time for system emergencies
• ISO system emergencies in accordance with OP #4420
oTransmission emergencies on ISO controlled grid
oMitigating imminent operating reserve deficiencies
Slide 101
• Resolving local transmission and distribution system
emergencies by participating transmission owners (PTOs)
During Alerts Warning Emergency AWE Warning Stage:
1. Issue Flex Alert
2. Exhaust available resources (except Spin/Non-Spin)
3. Reduce Participating Pump Load
4. Dispatch any unloaded gen capacity
5. Dispatch Spin/Non-Spin
6. Dispatch RMR
7. Dispatch PTO DRs and RDRRs8. Canvas external entities for assistance
ISO PUBLIC - © 2015 CAISO
Example of RDRR real-time participation steps
SC submits bids between
$950 -$1000/MW
The ISO has a system or
local emergency
RDRR bids are added to the bid pool
Resources are
economically dispatched…
And settled like
generation
Slide 102
ISO PUBLIC - © 2015 CAISO
RDRR specific participation expectations include
periodic performance testing
• One unannounced test dispatch per year to ensure
availability and performance of resource
• Test events will count toward RDRR availability limit of
15 events and/or 48 hours per term
• Test events instructed through exceptional dispatch and
settled as test energy
Slide 103
ISO PUBLIC - © 2015 CAISO
Unlike traditional generation, demand response resources are
comprised of an aggregation of locations, aka “sub-resources”,
potentially geographically disbursed, to meet minimum
participation capacity requirements.
Aggregations are therefore permissible:
Slide 104
PDR and RDRR aggregation requirements have been
established
Across multiple
pricing nodes
Within the same ISO defined sub-LAP
Within the same ISO defined Sub
Lap
With the same
load serving entity
ISO PUBLIC - © 2015 CAISO
PDR_1 = ISO Resource
Sub-LAP 1
LSE1
PNode
A
Trans
Substation
DistributionTransmission
PNode
B
Trans
Substation
Utility
Meter
UM
UM
Substation
UM UM
PDR/RDRR aggregation illustration
Substation
UM
Slide 103
ISO PUBLIC - © 2015 CAISO
Each PDR and RDRR and their underlying locations are
required to be within a single sub-LAP
106
Ensures demand response resource dispatch does not create
additional congestion
• A sub-LAP is an ISO-defined
subset of pricing nodes
(PNodes) within a default LAP
• 24 sub-LAPs were created to
reflect major transmission
constraints within each utility
service territory (DLAP)
Slide 106
ISO PUBLIC - © 2015 CAISO
Each PDR and RDRR and their underlying locations are
required to be served by a single LSE
107
• Provides visibility of DR awards to LSEs
• Ensures ability to identify individual
default load adjustment (DLA)
contribution of LSE specific location
performance
Sub-LAP
LSE1 LSE2 LSE2D
R
1
D
R
2
D
R
3
DRP
SC
ISO
Slide 107
ISO PUBLIC - © 2015 CAISO
Resource aggregations of 10 MW and above and those
providing ancillary services require telemetry.
Ensures visibility for real-time operation of the grid and
compliance to mandatory and enforceable NERC and WECC
approved reliability standards.
• RDRR does not require telemetry
• Telemetry must be provided for the aggregate resource
• A single remote intelligent gateway (RIG) can represent
multiple DR resources
Slide 108
ISO PUBLIC - © 2015 CAISO
PDR and RDRR are modeled as a generator
Slide 109
30 %
60 % 10 %
30 %
70 %
Pre-defined in sub-LAP
• Pre-modeled and pre-assigned a
generation distribution factor
(GDF ) by the CAISO
Custom in sub-LAP
• DRP customizes the resource
modeled by selecting buses and
defining the GDF to the buses
selected
ISO PUBLIC - © 2015 CAISO
Demand response systems support pre and post market
activities required for PDR/RDRR
• Manage registration process
o track underlying load locations and aggregated locations (ALOC)
• Consolidated events
o outages, awards, dispatches
• Meter data management
• Automated calculations
o Baseline
o Performance measurement
Slide 110
ISO PUBLIC - © 2015 CAISO
Questions before break?
Slide 111
ISO PUBLIC - © 2015 CAISO
Demand resource pre-market activities
Secure agreements
Obtain system access
Register
Obtain Market Resource ID
ISO PUBLIC - © 2015 CAISO
day-ahead
real time
Market
Settlement
Post-Market Activities
Pre-market activities are required to prepare PDR and
RDRR for market participation
Secure Agreements
Access DRS
Demand Response
System
Meter data
submission
Pre-Market Activities
Baseline
Calculation
7 minimum to
265 maximum BDApproximately 30
BD
Slide 113
Registration Process
Begin:
Provide end use load
location information
End:
Receive Market
Resource ID
ISO PUBLIC - © 2015 CAISO
Demand response providers must secure agreements for
wholesale participation
A DRP must:
• Have an agreement with the load serving entity (LSE) who
serves the demand responsive load
• Have an agreement with the utility distribution company
(UDC) who distributes the energy to the demand response
locations
• Execute a demand response provider agreement (DRPA)
with the ISO
• Become a SC or obtain the services of an SC
Slide 114
ISO PUBLIC - © 2015 CAISO
Once the DRP receives an ID they must obtain system
access to begin the registration process
Slide 115
System access requires authorization and a digital certificate
o Application access request form AARF submitted
o DRS and DRRS certificates received
o System access verified
DRP begins registration process prior to obtaining a PDR or
RDRR resource ID
ISO PUBLIC - © 2015 CAISO Slide 116
Registration provides visibility and auditability of
aggregated participation to multiple entities.
Record location and create aggregate location (ALOC)
• Service Account Number (SAN) primary key
• Validationso duplication check across DRP locations and across ALOCs
o Completeness
o Aggregation consistency
LSE/UDC/ISO registration review
• 10 days to review registration, ALOC and locations
Create resource and confirm
• Resource ID provided
• Resource data template submitted
• Master file updated
ISO PUBLIC - © 2015 CAISO
Once registration is reviewed without comment by
LSE/UDC the ISO provides DRP with a resource ID
• DRP submits a completed ISO generator resource data
template (GRDT) providing resource specific
characteristics
• Registration is confirmed when resource modeling process
is completed and resource ID is effective in master file
• Changes to registration may require re-processing
o Market participation on hold
o Resource ID can remain associated to it
Slide 117
ISO PUBLIC - © 2015 CAISO
Market participation
Bidding
Dispatch
Outage Management
ISO PUBLIC - © 2015 CAISO
Meter data
submission
Day-ahead
Real- time
Markets
-Bidding
-Dispatch
-Outage
Management
Market
Settlement
Post-Market Activities
PDR and RDRR participate in the market as a supply
resource
Secure Agreements
Pre-Market Activities
Baseline
Calculation
Slide 119
Registration Process
ISO PUBLIC - © 2015 CAISO
Scheduling Coordinator submit bids to ISO’s Scheduling
Infrastructure Business Rules system (SIBR)
Reliability real-time energy bids – w/discrete dispatch option
Economic day-ahead energy bids
Economic real-time energy bids
Day-ahead and real-time self provision of AS including self schedule
AS non-spin and spin capacity and real-time energy bids
Residual unit commitment capacity bids
PDR
RDRR
Slide 120
ISO PUBLIC - © 2015 CAISO
Master file and SIBR enforce bidding rules for PDR
and RDRR
• Types of bids
• Day-ahead and real-time bidding options
– single-segment vs multi-segment
– reliability vs economic
• Minimum load curtailment requirements
• etc.
Slide 121
RDRR SIBR bidding rule example:
No self-schedule bids in day-ahead and real-time markets
ISO PUBLIC - © 2015 CAISO
PDR and RDRR will receive and must respond to
awards and dispatches from the ISO
Customer Market Results Interface (CMRI)
• SCs retrieve proprietary market results
• Day-ahead energy schedules, AS awards, and RUC awards
Automated Dispatch System (ADS)
• Resource instructions sent to authorized users
• No opportunity to accept or decline the instruction
• Review within 90 seconds then begin ramping to instructed MW
Slide 122
Note: RDRRs with day-ahead schedules and remaining capacity in
real-time will not receive dispatch until operational conditions exist
such that the resource is activated in the market.
ISO PUBLIC - © 2015 CAISO
Scheduling Coordinators interface with the outage
management system (OMS) for PDR and RDRR
OMS is used to
• Provide resource
availability to the ISO
• Exclude days from the
baseline calculation for the
resource
Slide 123
PDR and RDRR are all-or-nothing resources
• OMS outages no longer require cause codes
• PMax derates must be = 0 MW
ISO PUBLIC - © 2015 CAISO
Post-Market Activities
Meter Data Submission
Baseline Methodology
Settlement
ISO PUBLIC - © 2015 CAISO
Meter data
submission
• Historic meter
data
• Day of event
meter data
Market Post-Market Activities
PDR and RDRR participate in the market as a supply
resource
Secure
Agreements
Pre-Market Activities
Baseline
Calculation
• Performance
measurement
• Default load
adjustment
Slide 125
Registration
Process
day-ahead
real time
T+ 8B
T+ 48B
T+168- 172B
T+ 3B
T+ 12B
T+ 55B
T+ 9Month
Settlement
SC DRP
• PDR/RDRR
performance
SC LSE
• Default Load
Adjustment
trade
date = T
ISO PUBLIC - © 2015 CAISO
Post market functions performed in the DRS include
meter data submission and performance measurement
calculations
Upload & download meter data
Evaluate compliance and event information
Calculate & download customer baseline
information
Calculate & download demand response
energy measurement
Slide 126
ISO PUBLIC - © 2015 CAISO
PDRs and RDRRs are Scheduling Coordinator
Metered Entities
• Settlement Quality Meter Data (SQMD) submitted to the
demand response system DRS
• Submitted as an aggregation at the resource level
representing SQMD for all underlying load locations
• Used to establish a customer baseline and calculate the
performance of the resource
• Used to calculate meter before / meter after to determine
ancillary services performance
Slide 127
ISO PUBLIC - © 2015 CAISO
PDR and RDRR performance measurement and
verification is calculated using a standard baseline type
and methodology
• Customer baseline calculation based on a 10-in-10
methodology with a bi-directional morning adjustment
capped at 20%
• If approved by the ISO, a DRP may use a different
methodology for deriving DR energy measurement
– Conform to North American Energy Standards Board
(NAESB) baseline type I or II
– Will require FERC approval of tariff amendment
• “Hourly Gen” choice in DRS to accommodate this
option
Slide 128
ISO PUBLIC - © 2015 CAISO
A customer baseline is an average performance
measurement of DR when the resource is in a “non-
event” state
• Events are defined as anything that would change the
performance output of a resource
o OMS outage
o Day-ahead schedule
o Real-time dispatch
o Capacity award
• Requires sufficient historic meter data
– 45 calendar days of historical data is suggested
Slide 129
ISO PUBLIC - © 2015 CAISO
First step in developing the baseline is to select the
most recent similar non-event days for that resource
SUN MON TUES WED THUR FRI SAT
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
SUN MON TUES WED THUR FRI SAT
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31
May 2010 June 2010
14.75
E
6.75
WE
6.75
WE15.50
NE
14.20
E
14.50
NE13.85
E13.75
NE
8.75
WE
6.25
WE
15.00
WE
14.80
WE
14.00
E14.75
NE
14.00
NE
13.75
NE
15.75
H
15.75
NE15.25
NE
15.50
NE
14.75
NE
13.75
NE
8.75
WE
14.75
E
6.75
WE
6.75
WE15.50
NE
14.20
E14.50
NE
13.85
E
15.00
WE
15.75
NE15.25
NE
15.50
NE
14.75
NE
13.75
NE
8.75
WE
14.75
E
6.75
WE
6.75
WE15.50
NE
14.20
E14.50
NE
13.85
E
15.00
WE
NE = Non-Event Day
E = Event Day
WE = Weekend
H = Holiday
Resource awarded or dispatched for trade date 6/15 HE 16
Slide 130
ISO PUBLIC - © 2015 CAISO
Raw baseline is calculated using simple average of
ten similar non-event days using most recent days
prior to the resource award or dispatch
Date Type Event HE 16 Meter Value
5/25/2010 Weekday N 14.75
5/26/2010 Weekday N 15.50
5/27/2010 Weekday N 15.25
5/28/2010 Weekday N 15.75
6/1/2010 Weekday N 13.75
6/2/2010 Weekday N 14.00
6/3/2010 Weekday N 14.75
6/7/2010 Weekday N 13.75
6/8/2010 Weekday N 15.50
6/10/2010 Weekday N 14.50
Total 147.5
Average for Baseline 14.75
Trade Date (TD) = 6/15/10
Hour Ending (HE) = 16
• Raw customer
baseline = 14.75
Slide 131
ISO PUBLIC - © 2015 CAISO
A load point adjustment (morning adjustment) ratio is
applied to the raw customer baseline once per day for
each hourly event
Load 6/15/10
Meter Data
Raw
Baseline
HE12 13.00 14.00
HE13 12.50 14.20
HE14 14.75 15.50
Average 13.42 14.57
Load Point Adjustment = 13.42 / 14.57
= .9210 or 92.10%
• load point adjustment will use 0.9210 multiplier against raw
customer baseline to establish adjusted customer baselineSlide 132
Trade Date (TD) = 6/15/10
Hour Ending (HE) = 16
ISO PUBLIC - © 2015 CAISO
Adjustment of raw customer baseline provides a more
accurate representation of how the load is behaving on
the day it is dispatched
• Load point adjustment factors in actual performance
conditions of the trade date including weather-related or
other conditions that would affect the performance
Raw
Customer
Baseline
Load Point
Adjustment
Adjusted
Customer
Baseline
Meter Load
(6/15/10 –
HE16 )
Demand Response
Energy Measurement
14.75 X 0.92 = 13.57 - 12.42 = 1.15 MWH
Slide 133
Example: Trade Date (TD) = 6/15/10, Hour Ending (HE) = 16
ISO PUBLIC - © 2015 CAISO
A demand response energy measurement is the energy
quantity calculated by comparing the adjusted customer
baseline against its actual underlying load
Raw Customer Baseline
Noon 18:0006:00
Metered Load
Adjusted Customer Baseline
Using Load Point Adjustment
Demand Response Energy Measurement
Slide 134
ISO PUBLIC - © 2015 CAISO
Demand response provider
PDR and RDRR performance settlement
Load Serving Entity
Default Load Adjustment (DLA)
Settlements
ISO PUBLIC - © 2015 CAISO
PDR and RDRR are included as generation in the day-
ahead and real-time energy settlement calculations
Example 1: Perfect performance
Energy settlement with no uninstructed imbalance energy
Example 2: Over performance
Energy settlement with uninstructed imbalance energy
Example 3: Did not fully meet performance
Energy settlement with negative uninstructed imbalance energy
Example 4: Non Performance (no curtailment)
Energy settlement when there is zero performance
o A DR energy measurement < 0 MW will be set to 0
Slide 136
ISO PUBLIC - © 2015 CAISO
PDRs receive AS and RUC capacity payment subject to
no pay compliance when participating in those services
AS no pay
– Undelivered
– Unavailable
– Undispatchable
RUC no pay
– Undispatchable
– Undelivered
– Ineligible
Slide 137
ISO PUBLIC - © 2015 CAISO
Unique settlement rules for demand response may
impact the LSE for the PDR or RDRR
• FERC Order 745 required the ISO to implement a net
benefits test (NBT)
• NBT establishes a price threshold above which demand
response resource bids are deemed cost effective
• The NBT price is compared against the real-time dispatch
LMP to determine if a DLA might be applicable
Slide 138
LSE’s for PDR or RDRR resources that have DR energy
measurement when the real-time dispatch LMP is below
the NBT are subject to a default load adjustment
ISO PUBLIC - © 2015 CAISO
On a monthly basis the NBT threshold price is
established
Slide 139
Year Month Peak Type Threshold Price
2015 April ON PEAK $34.52
2015 April OFF PEAK $34.79
• When applicable, a DLA will be used to adjust the metered
load used in uninstructed imbalance energy UIE settlement
of the LSE’s default LAP
• This quantity represents the total DR energy measurement
delivered by all resources served by that LSE that do not
meet the real-time NBT
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 140
ISO PUBLIC - © 2015 CAISO
Non-generator resource functionality in
the ISO wholesale markets
Non-Generator Resources and Regulation Energy Management
ISO PUBLIC - © 2015 CAISO
Topics
• Background and purpose
• Terms and acronyms
• Modeling and market participation
• Pre market processes
• Post market process
• Aggregation
Slide 142
ISO PUBLIC - © 2015 CAISO
Background and purpose
ISO PUBLIC - © 2015 CAISO
NGR background and purpose
• In 2010, the ISO began an effort to revise its tariff to treat non-
generator resources on a comparable basis with conventional
generators
• In 2011, FERC approved tariff changes to facilitate non-generator
resources providing ancillary services.
– Reduced the minimum rated capacity requirement
– Reduced minimum continuous energy requirement
– Clarified that ‘Continuous Measurement’ begins once resource reaches
the awarded energy output, not at the end of 10 minute ramp
requirement
• In 2012, the ISO implemented non-generator resource functionality
within the wholesale markets
Slide 144
ISO PUBLIC - © 2015 CAISO
REM background and purpose
• Within the non-generator tariff framework, the ISO also
developed additional functionality for resources providing
regulation services called Regulation Energy
Management, or REM
• Regulation Energy Management was implemented to
remove barriers that limit the full participation of limited
energy resources in the ISO’s regulation markets
Slide 145
ISO PUBLIC - © 2015 CAISO
Terms and acronyms
ISO PUBLIC - © 2015 CAISO
Terms and acronyms
NGR – Non Generator Resource
– A new ISO resource type and model for energy
constrained resources that can operate continuously
between generation and load
REM – Regulation Energy Management
– An option for non generator resources that only
provide regulation services to the ISO
Slide 147
ISO PUBLIC - © 2015 CAISO
Terms and acronyms
Capacity (MW)
– Represents the potential to inject or withdraw energy
at a sustainable rate
Energy (MWh)
– Represents the amount of capacity used over time
SOC - State of Charge (MWh)
– The amount of energy (MWh) remaining in the
resource available for ISO participation
Slide 148
ISO PUBLIC - © 2015 CAISO
Non-generator resource
characteristics
ISO PUBLIC - © 2015 CAISO
Non-generator resource characteristics
• NGRs are modeled as a generator with positive and
negative energy
• NGRs are constrained by an upper and lower capacity
(MW) limit to inject or withdraw energy at a sustainable
rate
• NGRs are constrained by an energy (MWh) limit to inject
or withdraw energy on a continuous basis
Slide 150
ISO PUBLIC - © 2015 CAISO
Non-generator resource characteristics
• NGRs can be dispatched seamlessly within their entire
capacity range subject their available energy (SOC)
• NGRs may be made up of aggregated physical
resources as long as they meet modeling and
participation requirements
• Any resource with a MWh constraint that can be
seamlessly moved within its operational range can use
this functionality
Slide 151
ISO PUBLIC - © 2015 CAISO
Example of NGR performance
Slide 152
ISO PUBLIC - © 2015 CAISO
NGR modeling
ISO PUBLIC - © 2015 CAISO
The ISO non-generator resource model recognizes a
resource can move seamlessly from load to generation
Slide 154
0 MW
20 MW
- 20 MW
NGR Generation Load
Ram
p
ISO PUBLIC - © 2015 CAISO
NGR modeling and market participation
• NGR resources can be modeled from positive to
negative
– Minimum capacity is negative while maximum capacity is
positive
– Provides the ability to maintain continuous operation for energy
constrained resources
• NGR resources can be modeled on the positive side
– Minimum and maximum capacity is positive
• NGR resources can be modeled on the negative side
– Minimum and maximum capacity is negative
Slide 155
ISO PUBLIC - © 2015 CAISO
How capacity is used in the NGR model
Capacity parameters are used to determine appropriate
bidding ranges and dispatch targets for the resource by the
ISO Market and EMS
• Maximum Capacity(MW)
– Represents the resource’s maximum potential to inject or withdraw
energy at a sustainable rate
• Minimum Capacity (MW)
– Represents the resource’s minimum potential to inject or withdraw
energy at a sustainable rate
• Maximum capacity is greater than minimum capacity
Slide 156
ISO PUBLIC - © 2015 CAISO
How energy is used within the NGR model
Energy (MWh) parameters are used to keep ISO market
dispatches and regulation control signals within the
resource’s energy capability range
• Maximum Energy (MWh)
– Represents the maximum amount of energy the resource can provide
• Minimum Energy (MWh)
– Represents the minimum amount of energy the resource can store
• Instantaneous State Of Charge (MWh)
– Represents the amount of energy (MWh) remaining in the resource
Slide 157
ISO PUBLIC - © 2015 CAISO
How energy is used within the NGR model
• The ISO will use energy limits and SOC values to co-
optimize the NGR resource over multiple intervals in the
ISO markets
• The ISO will determine the best utilization of the
resource based on its submitted energy schedules or
regulation ranges
• The ISO will use SOC values to prevent infeasible
dispatches or control signals
• If these values are not provided, the resource may be
given an infeasible dispatch and subject to non
performance settlements charges
Slide 158
ISO PUBLIC - © 2015 CAISO
Example: 40 MW 10 MWh NGR
15 Minute Resource at Max Capacity
Slide 159
Time (Minutes)
MW MWh
+40
30 60
10
0-40
0 15 45
Gen SOC
ISO PUBLIC - © 2015 CAISO
NGR market participation
ISO PUBLIC - © 2015 CAISO
The ISO has created opportunities for the full
participation of energy storage resources in the day
ahead and real time wholesale market
Non-Generator Resource
(NGR) model
Slide 161
Energy
Regulation up
Regulation down
Spinning Reserve
Non-spinning reserve
Market
Products
ISO PUBLIC - © 2015 CAISO
NGR market participation
• NGR must meet minimum capacity and continuous
energy requirements
– 0.5 MW - Minimum Capacity
– 60 Minutes - Day-ahead regulation up/down
– 30 Minutes - Real-time regulation up/down
– 30 Minutes - Spin and Non-Spin
• Telemetry is required for providing NGR SOC information
to the ISO energy management and market systems
Slide 162
ISO PUBLIC - © 2015 CAISO
NGR market participation
• Optimal energy schedule and ancillary services awards
are based on the energy bid curve and ancillary service
bids
• In the day ahead and real time markets
– Energy schedule and ancillary service awards are co-optimized
subject to:
• Capacity constraints
• Ramping constraints
• State of charge constraints, subject to resource charge/discharge
efficiency rate
Slide 163
ISO PUBLIC - © 2015 CAISO
NGR certified capacity
NGR Resource: 40 MW - 10 MWh (4 - 15 min. intervals in hour)
Pmax = 40 MW, Pmin = -40 MW. Ramp rate = 10 MW/min
Slide 164
Service Capacity NGR MW
Regulation Up 10 MW (60 Min Day-Ahead)
Regulation Down 10 MW (60 Min Day-Ahead)
Spinning 20 MW (30 Min)
Non-Spinning 20 MW (30 Min)
Pmax / Maximum Capacity 40 MW
Pmin / Minimum Capacity -40 MW
ISO PUBLIC - © 2015 CAISO
50% AGC optimization
• A feature specific to NGR that will level the resource’s
state of charge at a midpoint that maximizes continuous
energy output
• The 50% value is determined from regulation ranges
awarded by the ISO and evaluated every 15 minutes
• The option is set by a resource flag in the ISO system at
the time of resource modeling
• Due to reliability needs of the overall system, the ISO
can not guarantee the 50% AGC optimization when the
system in not in balance
Slide 165
ISO PUBLIC - © 2015 CAISO
• Day-ahead market
– The day-ahead market SOC for a NGR is determined
by the prior day’s day-ahead schedules at the end of
the day
– The initial SOC is defaulted to 50% of the maximum
defined energy limit if there are no previous day-
ahead schedules
• Real-time market
– The ISO real-time market receives the actual
resource SOC provided through telemetry
Slide 166
Determining state of charge (SOC)
ISO PUBLIC - © 2015 CAISO
Regulation energy management
ISO PUBLIC - © 2015 CAISO
NGR characteristics specific to REM
• NGR resources using REM only participate in the ISO
regulation markets
• The regulation capacity awarded in the day ahead
market is evaluated as 4 times the regulation energy it
can provide within 15 minutes
• Regulation up and regulation down must meet a 15
minute continuous energy requirement
• REM resources must provide energy limits and real time
SOC values
Slide 168
ISO PUBLIC - © 2015 CAISO
REM provides additional functionality to address
limitations of MWh constrained energy resources
Slide 169
Example: 20 MW / 5 MWh limited energy resource
Green – Generator/NGR requirement
Yellow – NGR under regulation energy management
0 MW
20 MW
15 MW
10 MW
5 MW
Minutes
15 30 45 60
Regulation Up
ISO PUBLIC - © 2015 CAISO
REM energy offset
• NGR resources providing regulation under the REM
option will be optimized through the use of an energy
offset (sale/purchase) of energy in the real-time market
• The energy offset allows NGRs under REM to meet the
continuous energy requirements for regulation and
ensures that those resources will remain available to
provide regulation service during intervals when it is
needed
Slide 170
ISO PUBLIC - © 2015 CAISO
NGR REM market participation
• Optimal regulation awards are based on the regulation
bids (no energy schedule for REM)
• In the day-ahead and real-time market
– Regulation awards are co-optimized subject to:
• Capacity constraints
• Ramping constraints
• In the real-time market
– Regulation awards are co-optimized subject to:
• State of Charge constraints
• Resource charge/discharge efficiency rate
Slide 171
ISO PUBLIC - © 2015 CAISO
Comparison of NGR and REM certified
capacity
Resource: 40 MW/10 MWh (4 - 15 min. intervals in hour)
Pmax = 40 MW, Pmin = -40 MW. Ramp rate = 10 MW/min
Slide 172
Service NGR MW REM MW
Regulation Up 10 MW (60 Min DA) 40 MW
Regulation Down 10 MW (60 Min DA) 40 MW
Spinning 20 MW (30 Min) n/a
Non-Spinning 20 MW (30 Min) n/a
Pmax 40 MW 40 MW
Pmin -40 MW -40 MW
ISO PUBLIC - © 2015 CAISO
Comparison of NGR and NGR with REM
Slide 173
NGR NGR - REM
Energy, Spin, Non Spin, and
Regulation Up/Down
Regulation Up/Down only
Managed through energy
schedules to maintain SOC
No energy schedules used
30-60 minute continuous energy
requirements
15 minute continuous energy
requirement for regulation service
Day-ahead AS capacity value is
based on 60 minute energy
requirement
Day-ahead AS capacity value is 4
times the regulation energy it can
provide in 15 minutes
Co-optimized in day-ahead and
real-time market subject to SOC
constraints
Co-optimized in real-time market
subject to SOC constraints
ISO PUBLIC - © 2015 CAISO
Questions before break?
Slide 174
ISO PUBLIC - © 2015 CAISO
NGR bidding rules
ISO PUBLIC - © 2015 CAISO
Bidding rules
Bid components specific to NGR and NGR REM
• Upper Charge Limit (MWh)
– Highest stored energy that should be maintained in the device.
Cannot be higher than the maximum energy limit value
registered in the master file.
• Lower Charge Limit (MWh)
– Lowest stored energy that should be maintained in the device.
Cannot be lower than the minimum energy limit value registered
in the master file.
Slide 176
ISO PUBLIC - © 2015 CAISO
Bidding rules
Bid components for NGR but not NGR REM
• Energy bid curve
• Self schedule
• Spinning and non-spinning reserves
• Contingency dispatch
Slide 177
ISO PUBLIC - © 2015 CAISO
Bidding rules
Bid components that do not apply to NGR and
NGR REM
• Start-up costs
• Minimum load costs
• Transition cost
• Daily energy limits (not upper/lower charge limit)
• Self provision of AS (excluding regulation)
Slide 178
ISO PUBLIC - © 2015 CAISO
Pre market activities
ISO PUBLIC - © 2015 CAISO
• The ISO uses existing business processes and
agreements to interconnect and model NGR resources
• Interconnection Agreements
– Participating generator agreement (PGA)
– Participating load agreement (PLA)
– Metered entity service agreement (MSA)
• ISO new resource implementation (NRI) process
– Resource data template (RDT)
– Network modeling
– Metering and telemetry
– Scheduling Coordinator
– Resource certification
Slide 180
Participation requirements
ISO PUBLIC - © 2015 CAISO
• Required telemetry points for observing capacity and
energy constraints
– Maximum Operating Limit (MW)
– Minimum Operating Limit (MW)
– Resource Connectivity Status (On/Off)
– Resource Instantaneous Output (MW)
– Instantaneous State Of Charge (SOC) (MWh)
– Resource AGC Control Status (On/Off)
Slide 181
Automatic generator control parameters -
EMS
ISO PUBLIC - © 2015 CAISO
EMS parameters for AGC operational control
Maximum
Capacity
Operating
Limit
(Real Time)Certified
Regulation
Limit
0
Slide 183
ISO PUBLIC - © 2015 CAISO
NGR post market activities
ISO PUBLIC - © 2015 CAISO
NGR
• Energy is settled at the locational marginal price in the day-ahead
and real-time market
• Procured AS capacity is settled in day-ahead and real-time market
NGR REM
• Procured regulation capacity is settled in the day-ahead and real-
time market
• Regulation energy dispatched through AGC is settled at the real-
time LMP
• Regulation energy produced or consumed outside of AGC is settled
at the real-time LMP as Uninstructed Imbalance Energy (UIE) or
another Instructed Imbalance Energy (IIE) type.
Slide 184
NGR post market
ISO PUBLIC - © 2015 CAISO
• NGR and NGR REM are subject to all existing
categories for rescission of AS capacity payments at the
relevant locational marginal day-ahead and real-time
market prices
• Energy is calculated based on the difference between
energy MW values
– If operating at -3MW and dispatched to 7MW, energy = 10MW
• NGR resources are eligible for regulation mileage
payments in addition to capacity payments
Slide 185
NGR post market
ISO PUBLIC - © 2015 CAISO
Round trip efficiency treatment of storage /
NGR resources
• The ISO does not consider NGR resources in the
charging mode as “consuming” energy, but rather storing
energy for later resale in the ISO’s markets
• Round trip efficiency (RTE) losses will be captured at the
resource level in the wholesale transaction.
– It is expected that the resource will require more energy from the
grid than it will generate
– These differences are accurately captured in the metered
settlement between the resource’s SC and the ISO
Slide 186
ISO PUBLIC - © 2015 CAISO
Rate treatment for energy storage
Slide 187
Energy Settlement
Price
TAC
Allocation
Measured Demand
Uplifts
Positive
Generation
(Discharge
Mode)
LMP No No
Negative
Generation
(Storage Mode)
LMP No No
ISO PUBLIC - © 2015 CAISO
Non-generator resource aggregations
Non-Generator resources and Regulation Energy Management
ISO PUBLIC - © 2015 CAISO
• An NGR made up of multiple physical sub-resources is
allowable under a single pricing node
• Aggregations are subject to metering, telemetry, and
modeling requirements
• NGR aggregations at a distribution level interconnection
for wholesale participation will be subject to distribution
interconnection requirements
Slide 189
NGR aggregations are possible at a
wholesale level subject to requirements
ISO PUBLIC - © 2015 CAISO
ISO
Resource
ISO sub-LAP 1
PNode
1
Transmission
Substation
DistributionTransmission
Single ISO Resource
2 ISOME Aggregated within single sub-LAP and PNode
ISO Interconnection
Telemetry at ISO Resource Level
Transmission Aggregation
ISO M
ISO M
Reso
urc
e M
anager
ISO
Telemetry
Slide 190
ISO PUBLIC - © 2015 CAISO
ISO SubLAP 1
PNode
1
Transmission
Substation
DistributionTransmission
Single ISO Resource
2 ISOME Aggregated with single SubLAP and PNode
WDAT Utility Interconnection
Telemetry at ISO Resource and PNode Level
Utility Distribution Aggregation
ISO Resource
ISO M
Reso
urc
e M
anager
ISO M
ISO
Telemetry
ISO PUBLIC - © 2015 CAISO
ISO Resource
Slide 192
ISO sub-LAP 1
PNode
1
Transmission
Sub-station
DistributionTransmission
Resource Manager
Utility
Facility
Meter
Single ISO Resource
3 ISOME Aggregation
*WDAT Utility Interconnection
Telemetry at ISO Resource Level
DER Aggregation*
Distribution
Sub-station
ISO
Telemetry
ISO M ISO M ISO M
ISO PUBLIC - © 2015 CAISO
ISO Resource
ISO sub-LAP 1
PNode
1
Transmission
Sub-station
DistributionTransmission
Single ISO Resource
4 ISOME Aggregation
*WDAT Utility Interconnection
Telemetry at ISO Resource Level
DER Aggregation*
ISO M
ISO
Telemetry
I M I M I M
Fleet Manager
Utility
Meter
Distribution
Sub-station
Resourc
e M
anager
Slide 192
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 194
ISO PUBLIC - © 2015 CAISO
Procurement and resource adequacy
Forward procurement of capacity resources
ISO PUBLIC - © 2015 CAISO
Overview
• Forward procurement
– Long-Term Procurement Plan (LTPP) – 10 years
forward
– Flexible Resource Adequacy Criteria and Must Offer
Obligation (FRACMOO) and Resource Adequacy
flexible capacity – 1 year ahead and 1 month ahead
• ISO day-ahead and real-time markets
– Flexible ramping
Slide 196
ISO PUBLIC - © 2015 CAISO
The CPUC authorizes the need for new capacity to
address system needs in LTPP
• LTPP review the system need for new capacity
• Historically, LTPP focused on the ability to meet system
peak
• Current LTPP (R.13-12-010) reviewing the need for new
capacity to meet
– All system load
• Peak load
• Off-peak load
– Flexibility needs
• Ramping
• Over generation
Slide 197
ISO PUBLIC - © 2015 CAISO
Load serving entities are required to demonstrate
adequate system, local and flexible capacity has been
procured
• Year-ahead and month-ahead demonstrations
• System and local capacity measurements based on resource
discharge capabilities that are deliverable for four hours
during peak
• Flexible capacity uses a single metric measured over three
hours targeted to address multiple flexible capacity needs*
– Longer sustained ramps
– Load following
• Non generator resources may provide flexible capacity for
charge and discharge cycles
* Currently interim, development of a permanent product is underwaySlide 198
ISO PUBLIC - © 2015 CAISO
RA flexible capacity categories enable a portion of
flexible capacity needs to be provided by preferred
resources that have limited availability
Slide 199
Category 1 (Base Flexibility): Set at level of the largest secondary 3-hour net-load ramp
(Secondary Ramp)
Category 2 (Peak Flexibility): Set at difference between largest secondary 3-hour net-load ramp
and 95% of maximum 3-hour net-load ramp ((0.95*Primary Ramp)-Secondary Ramp)
Category 3 (Super-Peak Flexibility): Set at 5% of maximum 3-hour net-load ramp (0.05*Primary
Ramp)
ISO PUBLIC - © 2015 CAISO
Must offer obligations associated with each category of
flexible capacity
Parameter Category 1 (Base Ramping) Category 2 (Peak
Ramping)
Category 3 (Super-Peak
Ramping)
Economic Bid
Must-Offer
Obligation
5:00 a.m. – 10:00 p.m. 5 hour block (determined
seasonally)
5 hour block (determined
seasonally)
Energy
Requirement
Minimum 6 hours at EFC Minimum 3 hours at EFC Minimum 3 hours at EFC
Daily Availability 7 days/week 7 days/week Non-holiday weekdays
Daily Start-Up
Capability
The minimum of two starts
per day or the number of
starts allowed by minimum up
and down time
At least one start per day At least one start per day
Examples of
resource Types that
Could Qualify for
Category
Conventional gas fired
resources, wind resources
hydro resources, and storage
resources with long discharge
capabilities
Use-limited conventional
gas fired resources, solar
resources and conventional
gas fired peaking resources
Short discharge battery
resources providing
regulation and demand
response resources
Slide 200
ISO PUBLIC - © 2015 CAISO
Other efforts and challenges
ISO PUBLIC - © 2015 CAISO
The ISO will examine many new provisions for flexible
capacity in the reliability services initiative
• Durable flexible capacity product and studies
– Potential changes to the existing flexible capacity
product
– Need for ramping capabilities for time intervals less
than three hours (i.e. five minute, 15 minute,1 hour)
– Identify system needs and capacity products to
address downward ramping and over-generation
– Continued assessment of current effective flexible
capacity values and Pmin
• Replacement and substitution rules for flexible capacity
resources on outage
Slide 202
ISO PUBLIC - © 2015 CAISO
Reliability services initiative – continued
• This initiative is targeted to launch in late April
• In the meantime, background information on this subject
is available at
– http://www.caiso.com/informed/Pages/StakeholderPro
cesses/FlexibleResourceAdequacyCriteria-
MustOfferObligations.aspx
– http://www.caiso.com/informed/Pages/StakeholderPro
cesses/ReliabilityServices.aspx
Slide 203
ISO PUBLIC - © 2015 CAISO
Flexible ramping product ensures sufficient ramping
capability is available in 5-minute market
• Secures ramping capability in the fifteen-minute market
and real-time dispatch
• Accounts for upward and downward ramping needs
• Compensates resource whose dispatch is held back in
financially binding interval to meet future ramping needs
• Only procures ramping capability for uncertainty when
expected value greater than cost
• Allocates costs to resource 5-minute movements (load,
supply, interties) that drive ramping need
Slide 204
ISO PUBLIC - © 2015 CAISO
Flexible ramping product ensures movement in net
system demand between intervals met economically
Market Forecast
Upper limit
Lower limit
Net system demand at t
t+5 (advisory interval)t (binding interval) Time
Net system demand
Minimum
requirement
Demand curve
Slide 205
Demand curve
ISO PUBLIC - © 2015 CAISO
Flexible ramping product – continued
• More information is available at
http://www.caiso.com/informed/Pages/StakeholderProcesses/
FlexibleRampingProduct.aspx
Slide 206
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 207
ISO PUBLIC - © 2015 CAISO
The ISO is proposing a framework for aggregation of
DER in the expanding metering & telemetry options
initiative
• Currently, the ISO tariff may not offer a clear platform for
these resources to participate in ISO markets.
• Allows a DERP to aggregate sub-resources within a sub
load aggregation point (sub-LAP) to meet the ISO’s
minimal resource participation requirements.
• Allows for multi-location or single-location aggregations
of less than 10 MW in aggregated capacity.
• Proposes the concept of a Distributed Energy Resource
Provider (DERP) as a new market participant.
Slide 208
ISO PUBLIC - © 2015 CAISO
DERP proposal (continued)
• Enables a DERP to aggregate sub-resources at different
pricing nodes within a sub load aggregation point (sub-
LAP)
• Enables a DERP to represent those sub-resources as a
single market resource located at a custom load
aggregation point (Custom LAP) DER represented by
DERP will be scheduling coordinator metered entities
(SCME) under the ISO tariff
• Allows DER to rely on data concentration services to
interact with the ISO through one point of contact
Slide 209
ISO PUBLIC - © 2015 CAISO
DERP proposal (continued)
• Straw proposal posted November 10, 2014
• Revised straw proposal to be posted in April/May
timeframe
– Targeting July board meeting for approval
• More information is available at
http://www.caiso.com/informed/Pages/StakeholderProce
sses/ExpandingMetering-TelemetryOptions.aspx
Slide 210
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 211
ISO PUBLIC - © 2015 CAISO
Multiple use applications of a storage
resource or an aggregated
distributed energy resource
ISO PUBLIC - © 2015 CAISO
Multiple-use applications – overview
• In a “multiple-use” scenario, the resource:
– provides service to multiple entities, and
– is compensated through multiple revenue streams.
• Stakeholders identified 3 main dual-use scenarios in the
2014 energy storage roadmap process:
1) Transmission asset + market participant
2) Service provider to both transmission and
distribution systems
3) Load-management for end-use customer + market
participant
Slide 213
ISO PUBLIC - © 2015 CAISO
Multiple-use scenario 1
1. Resource serves as an approved transmission asset
and recovers a portion of its costs via Transmission
Access Charge – AND – participates in the wholesale
market and earns market revenues
• Provisions for such arrangements do not currently exist
• Previous explorations have revealed concerns:
– As transmission asset, operational control must be with ISO, but
ISO cannot operate a market resource
– A transmission asset must be approved through ISO’s TPP as
preferred solution to an identified need, but no methods exist for
assessing cost effectiveness when resource seeks only partial
cost recovery via TAC, or only defers a transmission upgrade
– Prior FERC rulings on such proposals have stated the resource
must be either a transmission asset or a market participant, but
cannot be both. Slide 214
ISO PUBLIC - © 2015 CAISO
Multiple-use scenarios 2-3
2. Resource provides services to distribution system and
participates in wholesale market
– Existing provisions for such arrangements are limited to DR
– DR resource submits outage to ISO when serving distribution
– For other DER, must address dispatch coordination between ISO
and UDC when ISO dispatch conflicts with distribution needs
– Must define settlement rules to accurately compensate resource
for dual functions
3. Resource provides load-management services to end-
use customer and participates in wholesale market
– Provisions for such arrangements do not currently exist
– Must address dispatch priorities between ISO and end-user to
prevent conflicts between ISO dispatch and end-user’s needs
– Must define settlement rules to accurately compensate resource
for service to customer and market participationSlide 215
ISO PUBLIC - © 2015 CAISO
Questions?
Slide 216
ISO PUBLIC - © 2015 CAISO
Final thoughts
• Purpose of this forum is to educate stakeholders on
existing ISO requirements, rules, market products and
models for energy storage and aggregated DER to
participate in the ISO market.
– April 16 and 23
• Stakeholder process will be used to specify and address
any needed enhancements to these existing rules.
– Launching in April/May
– Market Notice will announce start of initiative and how
to participate
Slide 217
ISO PUBLIC - © 2015 CAISO
PDR/RDRR reference material
Links to detailed information
Settlement examples
ISO PUBLIC - © 2015 CAISO
Additional PDR/RDRR reference material
Slide 219
BPM for Direct Telemetry
http://bpmcm.caiso.com/Pages/BPMDetails.aspx?BPM=Direct%20Telemetry
BPM for Metering
http://bpmcm.caiso.com/Pages/BPMDetails.aspx?BPM=Metering
Operating Procedure #4420 details ISO controlled grid emergency
http://www.caiso.com/Documents/4420.pdf
Demand Response Provider Agreement DRPA provides general terms and conditions
http://www.caiso.com/Documents/AppendixB_ProFormaAgreements_Jul1_2014.pdf
Demand response participation guide
http://www.caiso.com/Documents/DemandResponseResourceParticipationGuide.pdf
Demand response registration systems user guide, technical specifications and web service
requirements
http://www.caiso.com/Pages/documentsbygroup.aspx?GroupID=4DB9EE7B-7ECF-42E4-BE8F-
0817538FD920
Resource data template
http://www.caiso.com/Documents/GeneratorResourceDataTemplate.xls
Net Benefit Test detail information
http://www.caiso.com/informed/Pages/StakeholderProcesses/DemandResponseNetBenefitsTest.
aspx
ISO PUBLIC - © 2015 CAISO
Examples for informational purposes only, charge code
details may not be reflected
Example 1 DRP Energy Settlement with No UIE
Example 2DRP Energy Settlement with Positive UIE
Example 3DRP Energy Settlement with Negative UIE
Example 4DRP Non Performance
Example 5LSE UIE settlement with application of Default Load Adjustment (DLA)
220
ISO PUBLIC - © 2015 CAISO
6011 = (-1) * day-ahead schedule * day-ahead LMP Price
6011 = (-1) * ( 1 MW) * $55.00 = (-$55.00)
6460 = (-1) * FMM dispatch * FMM LMP Price
6460 = (-1) * ( 0.05 MW) * $42.00 = (-$2.10)
6470 = (-1) * real-time dispatch * real-time RTD LMP Price
6470 = (-1) * (0.05 MW) * $ 45.00 = (-$2.25)
UIE = DR energy– (day-ahead schedule + FMM + RTD)
UIE = 1.10 MW – ( 1.0 MW + .05 MW + .05 MW) = 0 MW
6475 = (-1) * (UIE) * (real-time RTD LMP Price)
6475 = (-1) * ( 0 MW) * $ 45.00 = $0.00
Example 1 – PDR energy settlement with no UIEDRP SC = JBUG; Resource = NOCA_1_PDRP01 HE 15
Day-ahead schedule 1 MW
Real-time dispatch (FMM= .05 MW and RTED = .05 MW) 0.10 MW
DR energy measurement 1.10 MW
Day-ahead LMP Price $55.00
Real-time FMM LMP Price $42.00
Real-time RTD LMP Price $45.00
Total
Expected
Energy =
1.10 MW
Total Energy
Settlement =(-$55.00) + (-$2.10)
+ (-$2.25) + $0.00 =
(-$ 59.35)
payment to
DRP
ISO PUBLIC - © 2015 CAISO
6011 = (-1) * day-ahead schedule * day-ahead LMP Price
6011 = (-1) * (1 MW) * $ 55.34 = (-$ 55.34)
6470 = (-1) * real-time dispatch * real-time RTD LMP Price
6470 = (-1) * ( .10 MW) * $ 72.75 = (-$7.28)
UIE = DR energy– (day-ahead schedule + real-time dispatch)
UIE = 1.15 MW – (1 MW + .10 MW) = 0.05 MW
6475 = (-1) * (UIE) * (real-time RTD LMP Price)
6475 = (-1) * (0.05 MW) * $ 72.75 = (-$ 3.64)
Example 2 – PDR energy settlement with positive UIE
DRP SC = JBUG; Resource = NOCA_1_PDRP01 HE 16
Day-ahead schedule 1 MW
Real-time dispatch (FMM= .00 MW and RTED = .10 MW) 0.10 MW
DR energy measurement 1.15
Day-ahead APnode LMP Price $55.34
Real-time RTD APnode LMP Price $72.75
222
Total
Expected
Energy =
1.10 MW
Total Energy
Settlement =(-$ 55.34) + (-$7.28)
+ (-$ 3.64) =
(-$ 66.26)
payment to
DRP
ISO PUBLIC - © 2015 CAISO
6011 = (-1) * day-ahead schedule * day-ahead LMP Price
6011 = (-1) * ( 1 MW) * $ 50.00 = (-$ 50.00)
6470 = (-1) * real-time dispatch* real-time RTD LMP Price
6470 = (-1) * ( 0.10 MW) * $ 60.00 = (-$ 6.00)
UIE = DR energy – (day-ahead schedule + real-time dispatch)
UIE = 0.90 MW– ( 1 MW + 0.10 MW) = - 0.20 MW
6475 = (-1) * (UIE) * (real-time RTD LMP Price)
6475 = (-1) * ( -0.20 MW) * $ 60.00 = $ 12.00
Example 3 – PDR energy settlement with negative UIE
DRP SC = JBUG; Resource = NOCA_1_PDRP01 HE 17
Day-ahead schedule 1 MW
Real-time dispatch (FMM= .00 MW and RTED = .10 MW) 0.10 MW
DR energy measurement 0.90
Day-ahead LMP Price $50.00
Real-time RTD LMP Price $60.00
223
Total
Expected
Energy =
1.10 MW
Total
Energy
Settlement =(-$ 50.00) + (-$ 6.00)
+ $ 12.00 =
(-$ 44.00)
payment to
DRP
ISO PUBLIC - © 2015 CAISO
6011 = (-1) * day-ahead schedule * day-ahead LMP Price
6011 = (-1) * ( 1 MW) * $ 50.00 = (-$ 50.00)
6470 = (-1) * real-time dispatch* real-time RTD LMP Price
6470 = (-1) * ( .10 MW) * $ 60.00 = (-$ 6.00)
UIE = DR energy– (day-ahead schedule + real-time dispatch)
UIE = 0.00 MW – ( 1 MW + .10 MW) = - 1.10 MW
6475 = (-1) * (UIE) * (real-time RTD LMP Price)
6475 = (-1) * (- 1.10 MW) * $ 60.00 = $ 66.00
Example 4 – PDR energy settlement with no
performance
DRP SC = JBUG; Resource = NOCA_1_PDRP01 HE 18
Day-ahead schedule 1 MW
Real-time dispatch (FMM= .00 MW and RTED = .10 MW) 0.10 MW
DR energy measurement ( -.85 set to 0.00 for settlement)
Performance = .85 load increase from adjusted baseline
0.00
Day-ahead LMP Price $50.00
Real-time RTD LMP Price $60.00
224
Total
Expected
Energy =
1.10 MW
Total Energy
Settlement =(-$ 50.00) + (-$ 6.00)
+ $ 66.00 =
$ 10.00
charge to DRP
ISO PUBLIC - © 2015 CAISO
Example 5 – Determination of LSEs DLA due to
associated PDR/RDRR dispatched within their DLAP
225
Resource RTD
Interval
RTD LMP
price
NBT
met ?
DR energy
measurement (MW)
DLA Qty
(MW)
NOCA_1_PDRP01 1 $29.00 N 1.10 1.10
EBCA_1_PDRP02 1 $29.00 N 2.05 2.05
NOCA_1_PDR01 2 $35.00 Y 1.10 0
EBCA_1_PDRP02 2 $35.00 Y 2.05 0
NOCA_1_PDRP01 3 $35.00 Y 1.10 0
EBCA_1_PDRP02 3 $35.00 Y 2.05 0
NOCA_1_PDR01 4 $35.00 Y 1.00 0
EBCA_1_PDRP02 4 $35.00 Y 2.00 0
NOCA_1_PDRP01 5 $35.00 Y 1.00 0
EBCA_1_PDRP02 5 $35.00 Y 2.00 0
NOCA_1_PDR01 6 $35.00 Y 1.00 0
EBCA_1_PDRP02 6 $35.00 Y 2.00 0
PDR/RDRR Activity HE18 (intervals 1-6) NBT threshold price = $34.25
Total DLA
for interval 1
= 3.15 MW
Metered quantity used in the UIE settlement for associated LSE = NCAL
ISO PUBLIC - © 2015 CAISO
Example 5 (continued) - DLA Quantity applied to LSE
Load ID in UIE settlement
226
Metered quantity used in the UIE settlement for NORCAL_1_LD1
Resource DA
Qty
RTD
Qty
Actual metered
Qty
Total DLA
Qty
Adjusted metered
Qty
NORCAL_1_LD1 10 0 7 3.15 10.15
LSE DLAP settlement HE 18 interval 1
LSE = NCAL
DLAP Load ID = NORCAL_1_LD1 DLA for total PDR performance
UIE = DLAP (adjusted) metered load - day-ahead schedule
UIE = (-10.15) MW – (- 10 MW) = - .15 MW
6475 = (-1) * (UIE) * (hourly real-time lap price)
6475 = (-1) * ( - .15 MW) * $ 26.00** = $ 3.90
Total UIE
Settlement =
$ 3.90
Charge to LSE **Assuming hourly real-time lap price = $26.00
Where, hourly real-time lap price = the load deviation weighted average of the hourly average of the dispatch Interval
LMPs for the LAP in the relevant trading hour used for the settlement of UIE
ISO PUBLIC - © 2015 CAISO
The ISO offers comprehensive training programs
Date Training
April 20 Welcome to the ISO (webinar)
May 12 Introduction of ISO Markets (in person - Alhambra)
May 13 – 14 ISO Market Transactions (in person - Alhambra)
June 23 Settlements 101 (in person – Folsom)
June 24 Settlements 201 (in person – Folsom)
Slide 227
Training calendar - http://www.caiso.com/participate/Pages/Training/default.aspx
Contact us - [email protected]
ISO PUBLIC - © 2015 CAISO
Acronyms
Acronym Stands for
ADS Automated Dispatch System
AGC Automatic Generation Control
ALOC Aggregate Location
API Application Program Interface
AS Ancillary Services
BA Balancing Authority
BAA Balancing Authority Area
BD Business Day
BPM Business Practice Manual
CEC California Energy Commission
CFCD CAISO Forecast of CAISO Demand
Slide 228
ISO PUBLIC - © 2015 CAISO
Acronyms
Acronym Stands for
CPUC California Public Utilities Commission
DA Day-Ahead
DER Distributed Energy Resource
DLA Default Load Adjustment
DLAP Default Load Aggregation Point
DR Demand Response
DRP Demand Response Provider
DRPA Demand Response Provider Agreement
DRRS Demand Response Registration System
DRS Demand Response System
EIM Energy Imbalance Market
Slide 229
ISO PUBLIC - © 2015 CAISO
Acronyms
Acronym Stands for
FERC Federal Energy Regulatory Commission
GDF Generation Distribution Factor
GHG Greenhouse Gas
GIDAP Generation Interconnection and Deliverability Allocation Procedures
GMT Greenwich Mean Time
GRDT Generator Resource Data Template
ISOME Independent System Operator Metered Entity
LAP Load Aggregation Point
LMP Locational Marginal Price
LSE Load-Serving Entity
NAESB North American Energy Standards Board
Slide 230
ISO PUBLIC - © 2015 CAISO
Acronyms
Acronym Stands for
NBT Net Benefit Test
NERC North American Electric Reliability Corporation
NGR Non-Generator Resource
NRI New Resource Implementation
PDR Proxy Demand Resource
PG Participating Generator
PL Participating Load
POI Point of Interconnection
RA Resource Adequacy
RDRR Reliability Demand Response Resource
RDT Resource Data Template
Slide 231
ISO PUBLIC - © 2015 CAISO
Acronyms
Acronym Stands for
REM Regulation Energy Management
RIG Remote Intelligent Gateway
RT Real-Time
RUC Residual Unit Commitment
SAN Service Account Number
SC Scheduling Coordinator
SCME Scheduling Coordinator Metered Entity
SIBR Scheduling Infrastructure & Business Rules
SOC State of Charge (MWh)
SQMD Settlement Quality Meter Data
Slide 232
ISO PUBLIC - © 2015 CAISO
Acronyms
Acronym Stands for
TAC Transmission Access Charge
TPP Transmission Planning Process
UDC Utility Distribution Company
UI User Interface
UIE Uninstructed Imbalance Energy
WDAT/WDT Wholesale Distribution Access Tariff
WECC Western Electricity Coordinating Council
XML Extensible Markup Language
Slide 233