The Central America Electricity MarketCartagena de Indias ColombiaOctober 2003
APEX MEETING2003
Pablo Corredor AvellaManager of National Dispatch Center
Interconexión Electrica S.A. ISA
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Table of ContentsGovernancePrinciplesThe MarketSystem and Market OperationSettlementFinancial Guarantees
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Governance
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
Regional Electricity Market
Regional Electricity Market
NationalS & MOs
NationalRegulators
GOVTS
CRIERegional Regulato
r EORRegiona
l S & MOs
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Principles
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
COMPETITION
GRADUALLY
RECIPROCITY
PRINCIPLES OF THE TREATY
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
PRINCIPAL ISSUES
The objective is to create a Regional
Wholesale Electric Market
It will not eliminate the existing National Markets
The Regional Electricity Market is a “Seventh Market”
Qualified Agents from any of the six countries will participate
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
OBJETIVES OF THE REGIONAL MARKET
Have larger generating plants
Exchange of surplus power
Climate and load diversity
Increased quality
Lower prices
More private investment sources
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
The Market
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
LeónContracts MarketBilateral agreement
Duration: Minimun one day
Contracts MarketBilateral agreement
Duration: Minimun one day
REGIONAL MARKET
REGIONAL MARKET
Spot MarketDay Ahead Market
Injecction offers and retirement bids (price based)
Exchange of surplus power
Nodal prices
Nodal prices reflect short run marginal costs and constraints
Spot MarketDay Ahead Market
Injecction offers and retirement bids (price based)
Exchange of surplus power
Nodal prices
Nodal prices reflect short run marginal costs and constraints
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
Financial Physical Flexible
CONTRACTS MARKET CONTRACTS MARKET
Non-Firm
Non-Firm
Firm
Firm
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
They can be hedged in the Spot Market
The Transmission Services can be offered
FIRM
NON-FIRM
CONTRACTS CHARACTERISTICS
They can be hedged in the Spot Market
Congestion RightFirm Energy Delivery
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
Injection offersInjection offers
Retirement bits
Country 1
Day Ahead Dispatch
Scheduled Transactions Nodal Prices
Country 2
SPOT MARKET
Retirement bits
EOR
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
$/MWh
E (MWh)
1 2 3 54
$/MWh
E (MWh)
51 42 3
Injection Offers Injection Offers
Retirements Bids
Retirements Bids
Transmission
Services OffersTransmission
Services Offers
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
System and Market Operation
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
,
,
First National Dispatch
RegionalDispatch
NationalAgents
Final National Dispatch
Transactions and Nodal Prices
REGIONAL DISPATCH
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Subject to: Reserve Requirements; Transmission Constraints and Voltage Requirements
Max s,i,k (Price segment s, transaction i, period k * Psegment s, transaction i, period k)
Aggregated Offer Injection Curve
Aggregated Bid Retirement Curve
Nodal Market Clearing Price
S&MO1 S&MO2
PRORCL
Flow12 = RV´MWh
Offers
SL1
P1
MWh
Offers
SL1
P1
MWh
P2
P1PR1
RV´
PR
PR
PR1
PR1
RV
PR1RV´
RV´
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
REAL TIME OPERATION
Security, Quality, Reliability and Economy of the Regional Electric System
Security, Quality, Reliability and Economy of the Regional Electric System
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
REGIONAL ANCILARY SERVICES
Reactive Power
Reactive Power
Operating Reserves
Operating Reserves
Black Start
Black Start
Load Shedding
Load Shedding
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
REAL TIME IMBALANCES
Node
Meter Ir
ScheduledInjection
Meter Rr
ScheduledRetirement
Retirement Imbalance = Rr - Rp
Injection Imbalance = Ir - Ip
Rr : Measured Retirement
Rp : Scheduled Retirement
Ir : Measured Injection
Ip : Scheduled Injection
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
POSTDISPATCH
Injection offers and Retirement BidsPrice
E (MWh)IrPOST
DISPATCH
MODELMeasured Injections
Measured Retirements
Regional Transmission Grid
Nodal
Ex-Post
Price
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
Ir1 Regional Transmission
Grid
Real LossesIrn
......
Rr1
Rrn
LossesalRrIr _Re
It´s necessary to relax the measured injections, due to the measure errors and the losses
Max i,k (Price transaction i, period k * P transaction i, period k)- i,k (FacAdju * transaction i, period k)
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Settlement
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
Retirement:
(Scheduled Retirement - Contract)*Nodal Price
Retirement:
(Scheduled Retirement - Contract)*Nodal Price
Contracts and Spot Market Settlement
Contracts and Spot Market Settlement
Injection:
(Scheduled Injection - Contract)*Nodal Price
Injection:
(Scheduled Injection - Contract)*Nodal Price
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
IMBALANCES TYPES
Normal Significant Major
AUTHORIZEDUNAUTHORIZED
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
FinancialGuarantees
APEX 2003 Cartagena de Indias Colombia
The Central America Electricity Market
Golfo de
Panama
PanamaCanal
Suyapa
Panama
Guate Este
Nejapa
Guate Norte
Cañas
Ticuantepe
Parrita
Pavana
Rio Claro
Veladero
Cajón
Rio Lindo
Pepesca
15 de Sept.
Ahuachapán
León
Cash
Trust Company
Securities
Credit Letter
In Guarantee of: Expected Transactions in the Day Ahead Market*(1 + %)
Regulated Charges in the Market
Penalties
GUARANTEES IN THE REGIONAL MARKET
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