Introduction to the Energy Imbalance Market (EIM Module 1) · Introduction to the Energy Imbalance...

Introduction to the Energy Imbalance Market

(EIM Module 1)

Cynthia Hinman

Lead Client Trainer

Webinar – July 25, 2013

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.

The topics of today’s webinar

• EIM Definition

• Benefits of EIM

• What will change?

• Implementation timeline

• Closing thoughts

• References

By the end of today’s session you will be familiar with:

• EIM Concepts

• Definition

• Benefits

• Players

• Changes

• Timing

• Implementation milestones

• Stakeholder process

• Where to find more information

• Reference materials

• Acronyms

INTRODUCTION

What is the Energy Imbalance Market?

A balancing authority (BA) is responsible for

operating a transmission control area.

It matches generation with

load and maintains electric

frequency of the grid.

There are 37 balancing

authorities in the western

interconnection.

Today, each BA balances load

and generation separately

from other BAs.

Energy Imbalance

Market

Energy – The electrical power produced or supplied by a generating resource

Imbalance – A situation where supply does not equal demand

Market – A method of resolving energy imbalance through submission and clearing of energy schedules and bids

Energy Imbalance

Market

Economic Benefits

Reliability Benefits

Renewable Integration

Benefits

What’s not part of EIM?

• Balancing Authorities’ responsibility for maintaining

NERC and WECC requirements will not change

• EIM deals only with energy, not ancillary services or

reserves

• EIM does not change the process for existing bilateral

transactions or day-ahead transactions with the ISO

WHAT ARE THE BENEFITS OF

EIM?

Real-time visibility, geographical diversity, automated dispatch,

enhanced reliability, renewable integration, least cost dispatch…

Benefits

• EIM provides both reliability and economic benefits

• EIM implementation helps facilitate renewable

integration

• Based on an existing platform, the ISO provides a

flexible and scalable approach to EIM

Today each hour each balancing authority maintains

load/generation balance by manually dispatching its

own resources and maintaining extra reserves.

Each BA examines their load/resource

imbalance

They manually dispatch resources from within

their BAA to resolve the imbalance

They do not have the benefit of other BA’s

resources to help with the imbalance

BAA 1

BAA 2

BAA 3

EIM resolves imbalances in real-time more efficiently

through an automated 5 minute multi-BAA energy

dispatch service.

All resources in the EIM footprint visible, even

if not available for EIM dispatch

The real-time EIM optimization will efficiently

dispatch participating resources to maintain

balance

BAA 1

BAA 2

BAA 3 The real-time market looks ahead at the

situation in upcoming intervals

Prior to each dispatch the EIM will automatically

assess the entire footprint and determine the most

effective dispatch

15 minute scheduling

and 5 minute

dispatch

Forecasts

Outages

Resource schedules

Economic bids

Dynamic contingencies

Interchange schedules

With all of this information on hand, EIM allows

proactive resolution of potential reliability issues.

Real-time visibility and situational

awareness

Market signals let resources know that they will be needed

Optimization views multi-interval horizon

in formulating the next 5-minute

dispatch

Provide data regarding system

conditions and status of transmission

availability

Example of real-time visibility and situational

awareness

Prior to the beginning of the hour all load an

resources are balanced

During the hour there is a forced generation

outage in BAA 2, creating a significant supply

shortfall.

BAA 1

BAA 2

BAA 3 Generators from other BAAs that have placed

bids in the market for their generation may be

effective in relieving the imbalance in BAA 2

The EIM optimization looks at a multi-interval horizon

in determining how to dispatch resources for the next

5-minute interval.

5 minutes 5 minutes 5 minutes

Optimize for Interval 1 and beyond

Dispatch for Interval 1


5 minutes 5 minutes

Interval 1 Interval 2 Interval 3




A wider portfolio of resources to maintain system

balance could reduce the quantity of reserves that

are needed.

Without EIM

• Available resources are

within the BAA

• Must maintain extra

generation on hand in the

event they may be

needed to resolve an

imbalance

With EIM

• Available resources are

within EIM footprint

• The 5 minute market

automatically procures

generation needed to

meet future imbalances

Another benefit is the geographical diversity of load

and resources

• Load peaks change

as sun moves

westward

• Varying weather

conditions

• Renewables

resources may be

available at different

times

EIM allows the ability to more closely follow

variable energy resources

Hypothetical Wind Resource

Summary of benefits

• Automated 5 minute dispatch to balance load and

generation that is more efficient than manual dispatch

• Provides a real-time view of transmission constraints,

and dispatches resources to reduce and avoid

congestion issues

• Improved situational awareness and real-time visibility in

the EIM footprint

Summary of benefits

• Captures the benefits of geographical diversity of load

and resources

• Balances in real-time with least cost generation

• Potentially reduces the quantity of reserves that are

needed

WHAT WILL CHANGE?

Changes for each type of affected entity.

Key Players

Market Operator, the ISO, will run and settle the

imbalance market.

EIM Entity is a balancing authority that is enabling EIM to

occur in their area, thereby allowing real-time load and

generation imbalances to be settled through EIM.

EIM Participating Resource is a resource within the EIM

Entity Area represented by an EIM Participating Resource

Scheduling Coordinator that has voluntarily elected to

economically participate in the EIM.

Key Players

EIM Participating Resource Scheduling Coordinator is

responsible for all communications with the Market

Operator on behalf on participating resources.

EIM Entity Scheduling Coordinator is responsible for all

communications with the Market Operator on behalf on the

BA and non-participating resources.

Balancing Authority Area (BAA)

Load Serving Entities

(LSEs)

Merchant Generators

EIM Entity Scheduling Coordinators – submit

balanced load and generation information to

the ISO for the BAA

EIM Participating Resource Scheduling Coordinators –

submit bids to the ISO for participating resources

- Load

- Participating Generator

- Non-Participating Generator

What will change?

If you are:

Transmission Provider (PacifiCorp) • No change in role or responsibilities

PacifiCorp Balancing Authority

(PACE and PACW)

• Current NERC and WECC

responsibilities will not change

• Will commit resources as they do today

• Will be EIM Entities

• The EIM Entity Scheduling Coordinator

• Will submit balanced schedules to

the Market Operator

• Will communicate with Market

Operator about outages and

operating limits

• Interchange tagging

What will change?

If you are:

Load Serving Entity (LSE) - PacifiCorp (e.g. PAC C&T)

- Third Party (e.g. DG&T)

• Submits load and resource information to

Market Operator through the EIM Entity

Scheduling Coordinator

Resource (e.g. merchant

generator)

• If electing to participate in EIM as an EIM

Participating Resource

• Communicate availability through an

economic bid submitted by EIM

Participating Resource Scheduling

Coordinator

• Provide outage information to Market

Operator

• Respond to dispatch instructions

What will change?

If you are:

ISO • Market Operator for EIM

• Dispatches EIM resources that have provided

energy bids

• Settle EIM transactions

• Maintains current BA responsibilities in ISO BAA

Existing ISO

Scheduling

Coordinator, Resource,

Load, Importer,

Exporter

• No changes – will participate in day-ahead and

real-time market

IMPLEMENTATION TIMELINES

What are the milestones?

EIM stakeholder process proceeds in parallel with

PacifiCorp implementation

Calendar of important events*

* These dates are subject to change . Check the ISO calendar for the most

current information.

July

Sun Mon Tue 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

July 2 – 2nd Revised Proposal Posted

July 2 – Introduction to the Energy Imbalance Market webinar

July 9 – Stakeholder Meeting(Phoenix)

July 25 – Introduction to the Energy Imbalance Market webinar

July 26 – Written Comments Due

July 30 – PacifiCorp Stakeholder Meeting (Portland)

August


11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

August 13 – 3rd Revised Straw Proposal Posted

August 13 – Governance White Paper Posted

August 20 – Stakeholder Meeting (Portland)

August 27 – Written Comments Due

September


10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

September 10 – Tariff Framework Posted

September 20 – Written Comments Due on Framework

September 23 – Draft Final Proposal Posted

September 30 – Stakeholder Meeting (Folsom)

November


1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

October 1 – Tariff Framework Stakeholder Meeting (Folsom)

October 8 – Stakeholder Comments Due (Draft Final Proposal)

November 7, 8 – Board of Governors decision on EIM design

November 12 – Post Draft Tariff Language

October


1 2 3 4 5

6 7 8 9 10 11 12

December 5 – Stakeholder Comments Due (Tariff)

December 19 – Tariff Stakeholder Meeting (Folsom)

December


1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

CLOSING THOUGHTS

Where to get more information, next steps

Benefits

• EIM provides reliability and economic benefits to

California and the West

• EIM implementation helps facilitate renewable

integration

• Based on an existing platform, the ISO provides a

flexible and scalable approach to EIM

Upcoming training opportunities

• How EIM Works (EIM Module 2)

– Instructor-led training covering the proposed processes and

rules; Dates will be announced

• EIM Operations (EIM Module 3)

– Instructor-led training covering new procedures for operations

personnel; Dates will be announced

• EIM Back Office (EIM Module 4)

– Instructor-led training covering how EIM will affect settlements;

Dates will be announced

Upcoming training opportunities

• Welcome to the ISO

– Free monthly webinar that provides a basic understanding of the

ISO

– Next session – August 15, 2013

• Introduction to California ISO Markets

– Day long instructor-led session that covers the ISO’s wholesale

energy markets, roles and responsibilities, products and services

– Next session –September 17, 2013

More training information

• Training Information – caiso.com>Participate>Training

(http://www.caiso.com/participate/Pages/Training/default.aspx)

– Training Calendar

– 2013 Course Catalog

• Contact the training department –

[email protected]

http://www.caiso.com/participate/Pages/Training/default.aspx

http://www.caiso.com/participate/Pages/Training/default.aspx

mailto:[email protected]

Do you want more information

about participating in EIM?

Send all inquiries to:

[email protected]

mailto:[email protected]

REFERENCES

Links to useful information

References

• California ISO webpage – CAISO.com>Stay informed>

Stakeholder processes>Energy imbalance market;

http://www.caiso.com/informed/Pages/StakeholderProcesses/EnergyImbala

nceMarket.aspx

– Foundational information

• Proposal

• Agreement

• MOU

– Benefit Assessments

• Energy and Environmental Economics, Inc.

• FERC

– Market design development information

• Papers

• Stakeholder comments

http://www.caiso.com/informed/Pages/StakeholderProcesses/EnergyImbalanceMarket.aspx




References

• PacifiCorp webpage– Pacificorp.com>About Us>Energy Imbalance

Market; http://www.pacificorp.com/about/eim.html

– Press Release

– Fact Sheet

– FAQ

– Memorandum of Understanding

– Expected Market Benefits Report

http://www.pacificorp.com/about/eim.html

http://www.pacificorp.com/about/eim.html

Common acronyms

Acronym Stands for

ADS Automated Dispatch System

BA Balancing Authority

BAA Balancing Authority Area

BCR Bid Cost Recovery

BOG Board of Governors

BPM Business Practice Manual

CAISO California Independent System Operator

EIM Energy Imbalance Market

FERC Federal Energy Regulatory Commission

GMC Grid Management Charge

Slide 46

Common acronyms

Acronym Stands for

HASP Hour Ahead Scheduling Process

IIE Instructed Imbalance Energy

ISO California Independent System Operator

LAP Load Aggregation Point

LSE Load Serving Entity

LMP Locational Marginal Price

LMPM Local Market Power Mitigation

NERC North American Electric Reliability Corporation

OASIS Open Access Same Time Information System

PAC PacifiCorp

Slide 47

Common acronyms

Acronym Stands for

RTD Real-Time Dispatch

RTED Real-Time Economic Dispatch

RTM Real-Time Market

RTPD Real-Time Pre-Dispatch

RTUC Real-Time Unit Commitment

SC Scheduling Coordinator

SCED Security Constrained Economic Dispatch

SCID Scheduling Coordinator ID

SQMD Settlement Quality Meter Data

STUC Short-Term Unit Commitment

Slide 48

Common acronyms

Acronym Stands for

UIE Uninstructed Imbalance Energy

WECC Western Electricity Coordinating Council

Slide 49

Introduction to the Energy Imbalance Market (EIM Module 1) · Introduction to the Energy Imbalance...

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