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Energy Imbalance Market Presentation to: 2014 WSPP Spring Operating Committee Meeting Mark Rothleder VP – Market Quality & Renewable Integration March 7, 2014

Transcript of Energy Imbalance Market - Homepage | WSPP · Computer based training (CBT) is available for EIM •...

Energy Imbalance Market Presentation to: 2014 WSPP Spring Operating Committee Meeting Mark Rothleder VP – Market Quality & Renewable Integration March 7, 2014

• Builds on existing market platform

• Easily scalable, offering low-cost, low risk option to new entities

• Provides integration, economic, and reliability benefits.

• PacifiCorp go-live Oct 2014

• Market simulation July 8, 2014

• NVE study builds on ISO-PAC EIM footprint

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Energy Imbalance Market

CAISO Public

Presenter
Presentation Notes

What is “imbalance” and how does EIM help

• Balancing authorities (BA) start the hour with matched generation and forecasted load.

• Imbalances are load and generation deviations that occur within hour.

• Most BAs must procure extra reserves and dispatch manually to meet these imbalances.

• Five minute dispatch: – Finds least cost resources to solve imbalance, – Avoids congestion – Dispatches them automatically

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EIM preserves participants’ autonomy and current practices

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• Balancing authorities retain reliability compliance obligations

• Balancing authorities balance and provide their own ancillary services

• Balancing authorities can trade bilaterally

• Participants retain all physical scheduling rights

BAA 1

BAA 2

BAA 3

CAISO Public

Presenter
Presentation Notes

Stakeholder Process – Design evolution • Transmission usage fees – no charge initially between PAC

and ISO

• GHG proposal – achieves compliance and addresses load outside California

• EIM leverages full capability of Order 764 enhancements

• Resource sufficiency evaluation addresses “leaning” concerns – Under-scheduling penalty – Infeasible schedules isolated – Flexible ramping requirement ensures entity can meet

dispatch requirements

• Real-time unit commitment added

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The EIM design is complete, tariff is filed and implementation is proceeding well

Market Simulation

March 2012

April 2013

Nov 2013

ISO Stakeholder Process

Dec 2013

Oct 1 2014

Tariff filing

Feb 28 2013

Jul 8 2013

FERC decision Governance

≈ ≈

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Presenter
Presentation Notes

Benefits of an Energy Imbalance Market

• Enhances the ability to integrate renewable resources by dispatching every five minutes.

• Provides reliability and economic benefits to all participants.

– Enhances reliability through real-time visibility across all balancing authorities

– Captures benefits of geographical diversity of load and resources

– Balances in real-time with least cost generation

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EIM yields significant annual benefits for PacifiCorp and ISO

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Transfer capability

Low $14.1

$2.3

$4.0

$1.1

$21.4

High $11.0

$23.0

$20.8

$10.8

$65.6

Low $22.3

$2.3

$11.0

$1.1

$36.7

High $17.7

$23.0

$51.3

$10.8

$102.8

Low $22.4

$2.3

$13.4

$1.1

$39.2

High $17.8

$23.0

$77.1

$10.8

$128.7

Low (100 MW)

Medium (400 MW)

Interregional dispatch

Intraregional dispatch

Flexibility reserves

Renewable curtailment

Total benefits

$10.5 million to PacifiCorp customers $10.9 million to ISO customers

High (800 MW)

CAISO Public

EIM Governance proposal • The goal is to provide a meaningful voice to in-state and

out-of-state entities during the implementation of EIM and the design of an “Independent EIM Structure.”

• The “Transitional Committee”, scheduled to be appointed by the board in the spring of 2014, will be an advisory committee of the Board.

• The Transitional Committee will work on developing recommendations on independent EIM structure over the next few years and will go to the Board for its consideration

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Slide 10

Organize sectors nomination/ranking

Board decision

Committee start-up

Go live

Q1 Q2 Q3 Q4 2015 2014

Develop independent EIM governance proposal

Advise on EIM start-up in ongoing ISO

stakeholder process

The Transitional Committee work begins in mid-2014

CAISO Public

Presenter
Presentation Notes

Computer based training (CBT) is available for EIM • Introduction to the Energy Imbalance Market

This Computer Based Training provides a high level overview of the Energy Imbalance Market

http://content.caiso.com/training/Introduction%20to%20EIM/My%20Articulate%20Projects/Introduction%20to%20the%20Energy%20Imbalance%20Market/player.html

• How the Energy Imbalance Market Works – This Computer Based Training describes the roles and responsibilities of the key players in EIM and the business processes that will take place.

http://content.caiso.com/training/HowEIMWorks/player.html

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Questions

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