Small Facilities - Technical Requirements
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2004/06/ 02 Market Operations Standing Committee of the IMO 1 Small Facilities - Technical Requirements Rhonda Wright
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Small Facilities - Technical Requirements. Rhonda Wright. Goal of Consultation. Review market rule barriers to small facilities which have been identified by proponents who are expected to respond to government Requests for Proposals - PowerPoint PPT Presentation
Transcript of Small Facilities - Technical Requirements
2004/06/02
Market Operations Standing Committee of the IMO 1
Small Facilities - Technical RequirementsRhonda Wright
2004/06/02
Market Operations Standing Committee of the IMO 2
Goal of Consultation
• Review market rule barriers to small facilities which have been identified by proponents who are expected to respond to government Requests for Proposals
• Discuss potential solutions and obtain comments from the MOSC on them
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Market Operations Standing Committee of the IMO 3
Small Facilities
• What Are They
• Why Are They Not in the Wholesale Market Now
• Why is Wholesale Market Participation an Issue
• What Barriers Exist to Discourage Market Entry
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Small Facilities
• What Solutions are Available to Lower These Barriers
• What Issues May the Market Have With Lowering These Barriers
• What is the IMO’s Plan Going Forward
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Small Facilities - What Are They?
• Small generation or load facilities• Examples are Distributed generation
(DG), demand response facilities, small wind
• Combination of small size (<2 to 5 MW) and low capacity factor (<500 hours per year)
• Typically embedded within an LDC
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Why are they not in the market now?
• Revenues do not likely justify the cost of becoming an MP
• Threshold of 1 MW for facility registration for dispatchable facilities
• Typically embedded - no obligation to participate in IAM
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Why is This an Issue?
• DG proponents are approaching IMO about participating in IAM
• Government Renewables RFP minimum size is 500 kW, requires participation in IAM
• 2500 MW RFP - demand response, DG
• Future initiatives?
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What Barriers May Exist?
• Facility Registration - 1 MW minimum
• Telemetry - distributed control solutions introduce latency in data
• Main/Alt requirement for each revenue metering installation
• Voice Communication requirements
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Possible Solutions
• Creating new minimum standards for these facilities - need criteria
• Exemptions - uncertainty for proponent, additional work for MP and IMO, lacks necessary transparency, may be needed for early entrants
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Solutions - Issues
• Potential reliability impacts
• Impact on settlements for other MPs potentially affected by lower standard for these facilities (e.g. host distributor)
• Others?
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Small Facilities
• What is the IMO’s plan going forward?– Consultation with Technical Panel, MOSC,
and the Ministry of Energy - June 2004– Develop strawman to facilitate entry of
small facilities into IMO markets - June 2004
– Stakeholder strawman with MPs - June 2004
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Market Operations Standing Committee of the IMO 12
Small Facilities
• What is the IMO’s plan going forward?– Stakeholder strawman with Ministry of
Energy and RFP Proponents - June/July 2004
– Finalize strawman - July 2004– Development of market rules - Aug/Sept
2004– Ensure market rules are in place to meet
Ministry of Energy RFP schedule
