imbalance energy overview highlight imbalance energy

Settlements Training

Imbalance Energy Overview

Joanne BradleyJbradley@caiso.com

(916) 608-1252

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Highlight Imbalance Energy charges

Introduce Imbalance Energy concepts

Imbalance Energy types:Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

Imbalance Energy Overview

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Course Agenda

Imbalance Energy OverviewPricing of Imbalance EnergyImbalance Energy types

Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

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What is Imbalance Energy?

Imbalances (deviations) between scheduled energy and meter data.

SC’s final Energy schedule is compared against the corresponding meter data to determine if the SC:

Generated or imported more energy than its scheduleGenerated or imported less energy than its scheduleConsumed or exported more energy than its scheduleConsumed or exported less energy than its schedule

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What is Imbalance Energy (IE)?

The ISO accounts for Imbalance Energy as follows:

For Generator: Imbalance Energy = Metered Energy – Scheduled Energy

For Load:Imbalance Energy = Scheduled Energy – Metered Energy

For System Resources:Imbalance Energy = Real-Time Flow – Scheduled Energy

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IE for a Generator:

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Final HA Sched

Meter Read

Settlement Interval Hourly Schedule Interval Meter Read

1 100 15.833

Imbalance Energy = Metered Energy – Scheduled Energy

Imbalance Energy Total = ( 15.833 MWh ) - ( 100 MW / 6 ) = -0.834

5 101 2

0

MW

100

Dispatch IntervalMinute

Imbalance Energy (IE) Example:

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Course Agenda

Imbalance Energy OverviewPricing of Imbalance EnergyImbalance Energy types

Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

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Imbalance Energy - Pricing

5-Minute Ex Post Price = The Market Clearing Price (MCP) based on the incremental costof the system to serve the next increment of load.

Bid Ceiling $400/MWhBid Floor $-30/MWh

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Imbalance Energy - Pricing

5-Minute Ex Post Price = The Market Clearing Price (MCP) based on the incremental costof the system to serve the next increment of load.

Bid Ceiling $400/MWhBid Floor $-30/MWh

Resource-Specific Price = 10-Minute Weighted Average Price of two 5-minute ex postprices and two 5-minute instructed energy quantities for Resource.

Energy settled at Resource Specific Price:1. Instructed Energy2. Uninstructed Energy (Tier 1)

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Imbalance Energy - Pricing

5-Minute Ex Post Price = The Market Clearing Price (MCP) based on the incremental costof the system to serve the next increment of load.

Bid Ceiling $400/MWhBid Floor $-30/MWh

Resource-Specific Price = 10-Minute Weighted Average Price of two 5-minute ex postprices and two 5-minute instructed energy quantities for Resource.

Energy settled at Resource Specific Price:1. Instructed Energy2. Uninstructed Energy (Tier 1)

Zonal Ex Post Price = 10-Minute Weighted Average Price of two 5-minute ex post pricesand two 5 minute instructed energy quantities for ISO System.

Energy settled at Zonal Ex Post Price:1. Uninstructed Energy (Tier 2)2. Regulating Energy

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Course Agenda

Imbalance Energy OverviewPricing of Imbalance EnergyImbalance Energy Types

Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

12

Course Agenda

Imbalance Energy OverviewPricing of Imbalance EnergyImbalance Energy Types

Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

13

Instructed Energy Overview:

Definition: Energy produced or consumed as the result of responding to Dispatch Instructions.

Charge Type 4401 MW All dispatch instructions are deemed delivered MW

MW

MW

MW Price

Price

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Instructed Energy Overview:

Definition: Energy produced or consumed as the result of responding to Dispatch Instructions.

Charge Type 4401 MW All dispatch instructions are deemed delivered MW Instructed Energy calculated based on 5-minute

dispatch interval. Settled at 10-minute Settlement Interval.

MW

MW

MW Price

Price

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Instructed Energy Overview:

Definition: Energy produced or consumed as the result of responding to Dispatch Instructions.

Charge Type 4401 MW All dispatch instructions are deemed delivered MW Instructed Energy calculated based on 5-minute

dispatch interval. Settled at 10-minute Settlement Interval.

MW Can schedule transmission losses associated with Final HA Schedule

MW

MW Price

Price

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Instructed Energy Overview:

Definition: Energy produced or consumed as the result of responding to Dispatch Instructions.

Charge Type 4401 MW All dispatch instructions are deemed delivered MW Instructed Energy calculated based on 5-minute

dispatch interval. Settled at 10-minute Settlement Interval.

MW Can schedule transmission losses associated with Final HA Schedule

MW Regulation energy paid as Instructed Energy (at Zonal MCP)

MW Price

Price

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Instructed Energy Overview:

Definition: Energy produced or consumed as the result of responding to Dispatch Instructions.

Charge Type 4401 MW All dispatch instructions are deemed delivered MW Instructed Energy calculated based on 5-minute

dispatch interval. Settled at 10-minute Settlement Interval.

MW Can schedule transmission losses associated with Final HA Schedule

MW Regulation energy paid as Instructed Energy (at Zonal MCP)

MW Minimum Load Energy as Instructed Energy Price

Price

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Instructed Energy Overview:

Definition: Energy produced or consumed as the result of responding to Dispatch Instructions.

Charge Type 4401 MW All dispatch instructions are deemed delivered MW Instructed Energy calculated based on 5-minute

dispatch interval. Settled at 10-minute Settlement Interval.

MW Can schedule transmission losses associated with Final HA Schedule

MW Regulation energy paid as Instructed Energy (at Zonal MCP)

MW Minimum Load Energy as Instructed Energy Price 10-min Resource Specific Price (except regulating

energy paid at Zonal Ex Post Price) Price

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Instructed Energy Overview:

Charge Type 4401 MW All dispatch instructions are deemed delivered MW Instructed Energy calculated based on 5-minute

dispatch interval. Settled at 10-minute Settlement Interval.

MW Can schedule transmission losses associated with Final HA Schedule

MW Regulation energy paid as Instructed Energy (at Zonal MCP)

MW Minimum Load Energy as Instructed Energy Price 10-min Resource Specific Price (except regulating

energy paid at Zonal Ex Post Price) Price Extra Marginal Energy guaranteed Bid Cost

Recovery

Definition: Energy produced or consumed as the result of responding to Dispatch Instructions.

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Course Agenda

Imbalance Energy OverviewPricing of Imbalance EnergyImbalance Energy types

Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

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Uninstructed Imbalance Energy (UIE)

Definition: Energy produced or consumed above or below schedule without any dispatch instruction from the ISO.

Charge Type 4407 MW Uninstructed Energy calculated at the resource level MW

MW

Price

MW

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Uninstructed Imbalance Energy (UIE)

Definition: Energy produced or consumed above or below schedule without any dispatch instruction from the ISO.

Charge Type 4407 MW Uninstructed Energy calculated at the resource level MW Implementation of Uninstructed Deviation Penalty

when unit uninsructedly deviates beyond tolerance band (the greater of 3% of Pmax or 5 MW)

MW

Price

MW

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Uninstructed Imbalance Energy (UIE)

Definition: Energy produced or consumed above or below schedule without any dispatch instruction from the ISO.

Charge Type 4407 MW Uninstructed Energy calculated at the resource level MW Implementation of Uninstructed Deviation Penalty

when unit uninsructedly deviates beyond tolerance band (the greater of 3% of Pmax or 5 MW)

MW UIE is settled in two tiers: • UIE_1 = UIE attributed to non compliance

with Dispatch Instruction • UIE_2 = Any remaining UIE

Price

MW

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Uninstructed Imbalance Energy (UIE)

Definition: Energy produced or consumed above or below schedule without any dispatch instruction from the ISO.

Charge Type 4407 MW Uninstructed Energy calculated at the resource level MW Implementation of Uninstructed Deviation Penalty

when unit uninsructedly deviates beyond tolerance band (the greater of 3% of Pmax or 5 MW)

MW UIE is settled in two tiers: • UIE_1 = UIE attributed to non compliance

with Dispatch Instruction • UIE_2 = Any remaining UIE

Price • UIE_1 settled at resource specific price • UIE_2 settled at zonal ex post price

MW

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Uninstructed Imbalance Energy (UIE)

Definition: Energy produced or consumed above or below schedule without any dispatch instruction from the ISO.

Charge Type 4407 MW Uninstructed Energy calculated at the resource level MW Implementation of Uninstructed Deviation Penalty

when unit uninsructedly deviates beyond tolerance band (the greater of 3% of Pmax or 5 MW)

MW UIE is settled in two tiers: • UIE_1 = UIE attributed to non compliance

with Dispatch Instruction • UIE_2 = Any remaining UIE

Price • UIE_1 settled at resource specific price • UIE_2 settled at zonal ex post price

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Course Agenda

Imbalance Energy OverviewPricing of Imbalance EnergyImbalance Energy types

Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

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Transmission Loss Obligation

Definition: Line loss that occurs when electricity is transmitted over power line. Each resource has a transmission Loss Obligation.

Charge Type 4450 MW Transmission loss obligation settled

explicitly through CT 4450 MW

Price

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Transmission Loss Obligation

Definition: Line loss that occurs when electricity is transmitted over power line. Each resource has a transmission Loss Obligation.

Charge Type 4450 MW Transmission loss obligation settled

explicitly through CT 4450 MW Resource/Intertie can opt to self schedule

Transmission Loss obligation associated with Final HA schedule

Price

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Transmission Loss Obligation

Definition: Line loss that occurs when electricity is transmitted over power line. Each resource has a transmission Loss Obligation.

Charge Type 4450 MW Transmission loss obligation settled

explicitly through CT 4450 MW Resource/Intertie can opt to self schedule

Transmission Loss obligation associated with Final HA schedule

Price Settled at Resource-Specific price or Average Ex Post Price.

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Continuing ConceptsImbalance Energy (IE) CalculationFor Generator: Imbalance Energy = Metered Energy – Scheduled

EnergyFor Load: Imbalance Energy = Scheduled Energy – Metered EnergyFor System Resources: Imbalance Energy = Real-Time Flow – Scheduled

Energy

Imbalance Energy Charge Types Instructed Imbalance Energy - CT 4401Uninstructed Imbalance Energy - CT 4407Transmission Loss Obligation – CT 4450

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Imbalance Energy Overview Wrap Up:

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Any Questions?