Upload
rhoda-norman
View
224
Download
0
Tags:
Embed Size (px)
Citation preview
NWPP Members’ Market Assessment and Coordination
Initiative
WECC Market Interface Committee
October 14, 2015
Agenda
• Introductions • Recent News• Introduction to the MC Initiative• MC Portfolio and Elements• Next Steps
2
Agenda
• Introductions • Recent News• Introduction to the MC Initiative• MC Portfolio and Elements• Next Steps
3
Recent News
• PGE and Idaho Power announced intent to pursue CAISO EIM sub-hourly market solution
• BANC has announced its intent to withdraw from the NWPP MC market initiative
• NWPP MC participants, including PGE, expressed strong support for continuing reliability and infrastructure-focused programs that have come from this effort
• The NWPP MC continues to evaluate market alternatives that have been part of the initiative to inform decision-making later this year
4
• Petition for Declaratory Order (PDO) was filed Friday, Sept. 4th
• FERC public comment period closed Oct. 5th
• Link to PDO:http://elibrary.ferc.gov:0/idmws/file_list.asp?document_id=14374378
• Order expected by end of year
Petition for Declaratory Order
5
Agenda
• Introductions • Recent News• Introduction to the MC Initiative• MC Portfolio and Elements• Next Steps
6
Members of the Northwest Power Pool Market Assessment and Coordination Committee (NWPP MC) believe in the value of collaborating to deliver near- and long-term benefits to their customers by
enhancing the reliability and efficiency of the region’s power system and maximizing the benefits of the region’s resources while preserving local decision making now and in the future.
Current NWPP MC Membership
NWPP MC Initiative
7
• Avista Corporation
• Balancing Authority of Northern California
• Bonneville Power Administration
• BC Hydro, Powerex
• Chelan County PUD
• Clark County PUD (Phase 3 Tools)
• Eugene Water & Electric Board
• Grant County PUD (Phase 3 Tools)
• Idaho Power Company
• NaturEner Wind Holdings
• NorthWestern Energy
• PacifiCorp (Phase 3 Tools)
• Portland General Electric
• Puget Sound Energy
• Seattle City Light
• Snohomish County PUD
• Tacoma Power
• Turlock Irrigation District
• Western Area Power Administration, Upper Great
Plains
• Address operational and commercial challenges affecting regional power system:– Manage transmission constraints, impacts of variable energy resources– Access regional balancing diversity
• Respect unique attributes of NWPP MC footprint, including:– Extensive coordinated hydro-thermal systems– Multiple transmission providers, overlapping systems– Tightly correlated variable energy resources– Significant presence of non-jurisdictional entities
NWPP MC Initiative Objectives
8
Agenda
• Introductions • Recent News• Introduction to the MC Initiative• MC Portfolio and Elements• Next Steps
9
• Key elements include market-focused (automated 15-minute energy market) and operations-focused (centralized regulation reserve sharing group) initiatives:– Centrally Cleared Energy Dispatch (CCED) -- automated 15-minute
market. Market operator centrally clears voluntary bids and offers from participants to inform regional energy dispatch; facilitated under existing regional transmission framework
– Regulation Reserve Sharing Group (RRSG) -- centralized program; enables MC participants to manage to single Area Control Error for NWPP footprint and share in natural offsetting diversity of loads and resources
NWPP MC Portfolio Solution
10
• Key elements supported by:– Common resource sufficiency standard for program participants– Transmission service and operational coordination enhancements– Advanced data sharing tools implementation
• Intended outcome: – Reliable, efficient within-hour operating environment, with potential
to enhance in future to bring additional regional benefits
• Framework provides wide range of benefits while:– Preserving local decision making– Protecting integrity of region's power system, which has delivered low-
cost, clean, reliable power to customers for decades
NWPP MC Portfolio Solution, Continued
11
MC Portfolio Implementation Plan
12
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct2015 2016 2017
CCED
Refresh Price & Schedule
Contracting w/Vendors
Design specifications
SOW
Development and Testing
Market Trials
CCED FullyImplemented
Resource Sufficiency
2015 Milestones 2016 Milestones 2017 Milestones• PDO Filed with FERC
• EC gives Approval to Proceed
• FERC declaratory order on key CCED elements
• CCED tariff filed at FERC
• RS & RRSG Pilot Projects
• RRSG fully implemented
• RS fully implemented
• CCED fully implemented
Reserve Regulation Sharing Program Fully ImplementedDevelopment and Testing
Program Testing
Contracting w/ Vendors
Design Specifications
SOW
Data Analysis Pilot
FERC Approval
Petition for Declaratory Order
Develop Tariff Filing Tariff Filed at FERC FERC Approves CCED Tariff
FERC Grants PDO
Regulation Reserve Sharing Group
Process build
RS process testing
Resource SufficiencyFully Implemented
Infrastructure Build
Development of RMDHardware and Software Integration
Testing
SOW
Contractingw/Vendors
Market Testing
Contracting w/ Vendors
Design Processes Refine Procedures and Market Rules
Finalize Req.
Training
Market Administration
EC Approval
MC Portfolio Estimated Annual Costs
13
Years 1 & 2
$25 to 28 million(total over 2 years)
Includes all anticipated start-up and implementation costs with staffing, consulting expenses,
and IT costs as major drivers of the cost range
On-going
$10 to 11 million(per year)
Staffing and consulting expenses associated with the
scope of transmission and market expansion will be
substantive long-term drivers of the cost range
Oct `17 Oct `18 Oct `19 Oct `20 Future…
Illustrative Evolution Path
CCED Go-Live – Foundational1. Central clearing of displacement energy2. Simple feasibility assessment3. “Phase A” transmission policy4. Create initial “Market Zone” centroid
Category 3
Bug fixes and “experience” enhancements (examples: application programming interface updates, enhanced reporting, portal features)Category 1
Near-Term Value AddsExamples:1. Allow offer curves OR separate INC/DEC bids 2. Feasibility test for market Transmission Service Providers using 0-NX3. Phase B Step 1 – reduce transmission barriers
Category 2
Bug fixes and “experience” enhancements
Additional Value AddsExamples:1. Phase B Step 2 – further reduce transmission barriers2. Use RS data to introduce demand signal3. Shorten dispatch interval lead-time to 7.5 minutes
Additional MarketEvolution
Examples:1. Full network model and LIPs2. Meter & settle imbalance energy3. Model generator constraints4. Ancillary services5. Loss optimization
SCED-likeFeatures
Examples:1. Resolve load balance constraints 2. Optimize transmission3. Zonal prices4. 15 => 5 minute dispatch
Bug fixes and “experience” enhancements
• CCED is a foundation upon which near and long-term enhancements can be developed
• Initial opportunities have been identified in Phase 4
• These will be further developed and evaluated going forward
14
• Regional Flow Forecast (RFF) and Resource Monitoring & Deliverability (RMD) Beta Version 1.3 is in production; 4th release since first release (Mar. 31, 2015)
• MC members working through deployment process of RFF tool to merchant function employees and OATT customers
• Software enhancements to RMD and RFF continue and will be finalized in Q4 2015
• Data quality issues are a key activity for 2015; team deployed additional resources and developed tools to monitor, measure improvements, and provide feedback to MC members and Peak Reliability for correction
Regional Tools Update
15
Centrally Cleared Energy Dispatch (CCED)
16
• CCED is a 15-minute economy energy market that is predicated upon all market participants being resource sufficient prior to participating in the market– Allows resources already committed to run to meet energy and
flexible capacity needs, or quick responding resources, to be incremented (INC’ed) or decremented (DEC’ed) based on economics, resource flexibility and market flow feasibility
– Not a market to plan on prior to the hour for meeting requirements– Market Resources can represent a single generator/plant all the way
to entire system or portfolio of resources
• CCED removes major barriers to sub-hourly trading economics– Simple execution, transparent pricing, single interchange update
CCED (continued)
17
• Design objectives are simplicity and compatibility with existing systems and processes, allowing full participation at go-live– Accepts bids/offers in merit order; produces single transparent price– Awards checked for physical feasibility by Market Administrator (MA)
so Market Flows will not exceed Market Available Transmission (MAT)*– Awarded/scheduled CCED transactions treated as normal schedules– Individual TSPs perform congestion management as normal– MA central counterparty to all transactions; performs financial
settlement directly with market participants
* If schedules must be reduced to meet MAT limits, the User Group supports a method that maximizes the overall economic value of feasible transactions.
RRSG Objectives
18
• Capture geographic generation and load diversity
• Reduce individual regulating reserve obligation
• Opportunity to monetize capacity reduction
• Reduce machine movement
• Coordinated BAL-001-2 compliance
• ACE Diversity Interchange (ADI) – Avista, BANC, TID, PGE, Tacoma will participate by year end– Consider operating limit expansion in 2016– Rocky Mountain utilities (WAPA, Xcel) evaluating
participation
• BAL-001-2 Compliance– Individual compliance July 1, 2016– WECC guidance to designate compliance entity per NERC
Bulletin– Requires delegation letter and participant agreement– Draft documents in October
RRSG Program Update
19
• Operates in parallel with ADI program• Participants allocated BAL-001 Reserve Obligation (BRO)
– Continuously held until deployed by RRSG program– Fully deployable in 10 minutes
• BRO deployed if compliance level exceeded– Majority ACE participants deploy first– All participants (Majority and Minority) deploy if needed– Additional deployment as backstop
• Participants compensated for energy deployed• Expect actual deployment to be limited (< 1 event per day)• RRSG implementation planned for Q1 2017
RRSG Functional Design Highlights
20
RRSG Deployment Example
21
• The NWPP MC Resource Sufficiency Metric designed to ensure that BAs have sufficient resources to meet obligations prior to the operating hour – All BAs are assumed sufficient today, therefore, the RS Metric is not
intended to increase the amount of reserves required– RS Metric provides a common methodology to assurance sufficiency
and relies on standard utility practice– One-year, non-binding pilot will test these objectives and allow for
adjustments– RS Metric to be fully implemented and binding in October 2017
Resource Sufficiency (RS)
22
RS Design
23
Completed Work• VERs and DERs: capacity credit,
forecasting and source• Timing of binding RS check• Load forecasting methodology• Deliverability• Transaction scheduling clarity• Administration
• Enforcement
Ongoing Work• Finish Balancing Reserve
Obligation (BRO) determination• Completed 2 of 3 elements• Data from 15 BAs• Data Quality improvements• Results provided Oct. 5
• Treatment of exports from the footprint
• Objective: Define opportunities for regional efficiencies, improvements to providing transmission service and managing operations
• Opportunities identified:– Constraint and congestion relief coordination– Communication regarding dynamic changes in SOLs from TOPs to TSPs
that may result in changes to TTC updates on key flowgates– Coordination of models between WECC, Peak and individual
TSPs/TOPs– Open Access Transmission Tariffs and business practices alignment– Real-time coordinated TOP operations
TSP / TOP Coordination Update
24
• Continue TSP/TOP design work• Work with vendors on costing• Expand Regional Flow Forecast (RFF) and Resource Monitoring
and Deliverability (RMD) in concert with TSP/TOP activities
TSP / TOP Coordination Next Steps
25
Agenda
• Introductions • Recent News• Introduction to the MC Initiative• MC Portfolio and Elements• Next Steps
26
• NWPP MC Executive Committee will meet in October and November to determine 2016-17 plans
• Staff continue to work on evaluating MC portfolio and what options exist given recent events
• Stakeholder updates will be provided
Next Steps
27