ercot nodal 101 · 2017-08-01 · 2 this presentation provides a general overview of the texas...
TRANSCRIPT
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ERCOT Nodal 101
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This presentation provides a general overview of the Texas Nodal Market and is not intended to be a substitute for the ERCOT Protocols, as amended from time to time. If any conflict exists between this presentation and the ERCOT Protocols, the ERCOT Protocols shall control in all respects.
For more information, please visit:
http://www.ercot.com/mktrules/nprotocols/
PROTOCOL DISCLAIMER
Legal
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• Restrooms
• Refreshments
• Attendance sheet
• Exam
• Questions
Housekeeping
Please silence smart phones & other electronics
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A high-level overview of the ERCOT Nodal Market for all Market Participants and ERCOT personnel.
ERCOT Nodal 101
Target Audience
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• Identify major components of the Nodal Market
• For each component of the Nodal Market, describe
• Purpose
• Inputs
• Outputs
• Processes
Upon completion of this course you will be able to:
Course Objectives
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Modules in this course include:
Course Modules
Introduction to ERCOT and Market
Locational Marginal Pricing
Congestion Revenue Rights
Day-Ahead Market
Reliability Unit Commitment
Real-Time Operations
1
2
3
4
5
6
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Module 1
Introduction to ERCOT
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• Key features of the ERCOT Grid
• ERCOT Responsibilities
• Reliability and Markets
• Capacity and Energy
• Congestion Management
• Network Modeling
• Market Overview
Topics in this lesson . . .
Overview
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• Represents 90% of Texas Load
• 77,000 MW of generation capacity
• 46,500 miles of transmission lines
• Electrical island with several DC Ties
Key Features of the ERCOT Grid
ERCOT Introduction
Natural Gas53%
Coal22%
Wind18%
Nuclear6%
Other*1%
2015 Generation Capacity*Includes solar, hydro and biomass
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• Match generation with demand
• Operate transmission system within established limits
ERCOT’s Primary Responsibility is Reliability
ERCOT Responsibility
Execute competitive markets for reliability services
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• Markets support reliability
• Reliability makes the markets possible
Reliability and Competitive Markets
ERCOT Operational Concepts
ERCOT finds the balance between Reliability and
Economics
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Energy and Capacity
ERCOT Responsibility
ERCOT dispatches Energy to follow the
system demand
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Energy and Capacity
ERCOT Responsibility
ERCOT must also ensure sufficient Capacity is on-line
to meet the forecasted demand
Forecast
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More about Capacity
ERCOT Responsibility
Capacity Reserved for Ancillary Services
Forecast
System Capacity
System Demand
Ancillary Services needed to respond quickly to changing system conditions
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Acquired through competitive markets
Ancillary Service Capacity
ERCOT Responsibility
System Capacity
Ancillary Service Capacity
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Ancillary Service Capacity
ERCOT Responsibility
System Capacity
Non-Spin Reserve
Regulation Reserve
Responsive Reserve
Three types of Ancillary Services
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• Generators and Loads separated by distance
• Transmission system has limits
Transmission Congestion
ERCOT Responsibility
Congestion management keeps transmission system
operating within limits
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Models allow ERCOT to:
• “See” grid at any point in time
• Predict how various actions affect grid
Network Operations Model
ERCOT Responsibility
Representation of a physical system.
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• Physical characteristics
• Ratings
• Operational limits
Including
• Transmission elements
• Resources
• Topology
• Telemetry mapping
Network Operations Model
ERCOT Responsibility
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Market Introduction
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Who are the ERCOT Players?
Market Participants
Transmission and/or Distribution Service Providers
Resource Entities
Load Serving Entities
Qualified Scheduling Entities
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Market Participants
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• Bilateral Market
• ERCOT Facilitated Markets
• Day-Ahead Ancillary Services Market
• Day-Ahead Energy Market
• Real-Time Energy Market
Commercial Markets
ERCOT Nodal Market Design
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Energy Dispatch
• Resource-specific offers• Resource-specific dispatch
Goal
• Balance generation &demand
• Manage congestion
Energy Pricing
• Location-specific prices for energy• Prices include congestion costs
ERCOT Nodal Market Design
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• All costs are directly assigned
• Congestion Revenue Rights available for hedging
Congestion Costs
ERCOT Nodal Market Design
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It’s all about the recovery of costs to build generation.
ERCOT is an energy-only market … but what does that mean?
ERCOT Nodal Market Design
In ERCOT, these costs must be recovered with revenues from
energy production and operating reserves.
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Energy Pricing must support investment in new generation
ERCOT is an energy-only market … but what does that mean?
ERCOT Nodal Market Design
Scarcity pricing – higher energy prices during periods where energy reserves are scarce
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You Are Here!
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Market Information System
An Independent Market Information System Registered Entity (IMRE) may register with ERCOT solely to access MIS Secure.
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You Are Here!
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Module 2
Locational Marginal Pricing
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• Locational Marginal Prices (LMPs)
• Define LMPs
• Determination of LMPs
• Congestion Rent
• Settlement Point Prices
• Scarcity Pricing Mechanism
• Market Information
Topics in this lesson ...
Overview
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Locational Marginal Pricing
What is Locational Marginal Pricing (LMP)?
Pricing: Cost
Marginal: to serve the next increment of Load
Locational: at an Electrical Bus
Locational Marginal Pricing
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• Energy
• Congestion
LMP Components
Locational Marginal Pricing
In some markets, LMPs have a component for losses.
The Nodal Market does NOTinclude losses in LMPs.
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Introducing the players … Example
Locational Marginal Pricing
Gen 1
Gen 2
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Introducing the players … Example
Locational Marginal Pricing
Gen 1
10 MW($4 per MWh)
Gen 2
20 MW ($2 per MWh)
10 MW
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Introducing the players … Example
Locational Marginal Pricing
Gen 1
10 MW($4 per MWh)
Gen 2
20 MW ($2 per MWh)
10 MW
When there is no congestion, all LMPs are equal
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Example: No Congestion
Locational Marginal Pricing
Charges to Load
LMP MW
$2 10 $20
Total $20
Payment to Resources
LMP MW
$2 0 $0
$2 10 $20
Total $20
Gen 1
Gen 2
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Now there is congestionExample
Locational Marginal Pricing
Gen 1
10 MW($4 per MWh)
Gen 2
20 MW ($2 per MWh)
10 MW4 MW constraint
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Example
Locational Marginal Pricing
Gen 1
10 MW($4 per MWh)
Gen 2
20 MW ($2 per MWh)
10 MW4 MW constraint
With congestion, LMPs are different
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Example: Congestion
Locational Marginal Pricing
Charges to Load
LMP MW
$4 10 $40
Total $40
Payment to Resources
LMP MW
$4 6 $24
$2 4 $8
Total $32
Gen 1
Gen 2
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Locational Marginal Pricing
$40
$32
$8
Chargesto
Load
Paymentsto
Resources
Congestion Rent used to fund Congestion Revenue Rights (CRRs)
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• LMPs at Electrical Buses
• Settlement Points used for financial settlement
• Settlement Point Prices calculated using LMPs
LMPs and Settlement Point Prices
Settlement Point Prices
LMP1
LMP2
LMP3
LMP4
LMP5
Electrical Buses
Settlement Point Price
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• Reserve Price Adder: the economic value of reserves that are available for energy dispatch in Real-Time
• LMPs and Reserve Price Adders are used together to form SPPs in Real-Time
Additional Real-Time pricing component …
Settlement Point Prices
LMPs are location-specific. Reserve Price Adders represent the value of
reserves ERCOT-wide.
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LMPs and Settlement Point Prices
• Every Hour
LMPs and Reserve Price Adders• Every 5 minutes*
Settlement Point Prices
• Every 15 minutes
How often are LMPs & Settlement Point Prices calculated?
Settlement Point Prices
* LMPs and Reserve Price Adders generated at each SCED cycle (possibly more often than 5 minutes)
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Three Types of Settlement Points:
Settlement Point Prices
ResourceNodes
LoadZones
Hubs
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An Electrical Bus where a Resource’s measured output is settled
What is a Resource Node?
Settlement Point Prices
Resource Electrical Bus
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Day-Ahead Market
LMP at the Resource Node
Real-Time Operations
Time-Weighted Average of LMPs at the Resource Node
Time-Weighted Average of Reserve Price Adders
Settlement Point Prices for Resource Nodes
Settlement Point Prices
+
Resource Electrical Bus
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A group of Electrical Buses assigned to the same geographical zone
What is a Load Zone?
Settlement Point Prices
Every Electrical Bus with Load must be assigned to
a Load Zone for Settlement purposes
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Day-Ahead Market
Load-Weighted Average of LMPs in Load Zone
Real-Time Operations
Load-Weighted and Time-Weighted Averages of LMPs in Load Zone
Time-Weighted Average of Reserve Price Adders
Settlement Point Price for Load Zones
Settlement Point Prices
+
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• Competitive Load Zones
• Non Opt-in Entity Load Zones
• DC Tie Load Zones
Three types of Load Zones
Settlement Point Prices
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• North
• South
• West
• Houston
Competitive Load Zones
Settlement Point Prices
2003 Congestion Management zones
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• Established by one or more NOIE(s)
• Some large NOIEs required to establish own NOIE Load Zones
• NOIEs that don’t establish NOIE Load Zone are assigned to Competitive Load Zone
Non Opt-in Entity Load Zones
Settlement Point Prices
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• Used to settle exports across DC Ties
• One for each DC Tie
• Contains only the electrical bus connected to the DC Tie
DC Tie Load Zones
Settlement Point Prices
All Load must be assigned to a Load Zone for
Settlement purposes
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• Group of 345kV Hub-buses
• Defined by Protocols
What is a Hub?
Settlement Point Prices
Hub
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Four Regional Hubs
• North
• West
• South
• Houston
Six Hubs in ERCOT Market
Settlement Point Prices
ERCOT Hub Average
ERCOT Bus Average
Two Average Hubs
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Day-Ahead Market
• Simple average of LMPs at Hub Buses in each Hub
Real-Time Operations
• Simple average of Time-Weighted Average LMPs at the Hub Buses in the Hub
• Time-Weighted Average of Reserve Price Adders
Settlement Point Price for Hubs
Settlement Point Prices
+
HubHub
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• LMP Contour Map
• Day-Ahead Market SPPs
• Real-Time LMPs
• Real-Time SPPs
Market Information System
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Nodal Market Operations
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Market Components
Nodal Market Operations
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Module 3
Congestion Revenue Rights
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• Purpose of CRRs
• CRR Account Holders
• Types of CRRs
• How CRRs are acquired
• Settlements
• Market Information System
Topics in this lesson . . .
Overview
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You Are Here!
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• Financial instruments
• Hedge against congestion costs
• Financial investment
• Payment or charge when Grid is congested
Purpose of Congestion Revenue Rights
Congestion Revenue Rights
A CRR is not a right to deliver physical energy
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Congestion Cost exposure
Congestion Costs
Congestion costs are built in to the Settlement Point prices
Resource Node A
Resource Node B
$30/MWh$40/MWh
$45/MWh
Load Zone
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Congestion Revenue Rights
Introducing a new player:CRR Account Holder
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Congestion Revenue Rights
To own CRRs, Market Participants:• Must be registered with ERCOT• Must qualify as CRR Account Holders
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Congestion Revenue Rights
Barred from owning CRRs:• TSPs & DSPs• ERCOT
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• Designated point of injection (source) and point of withdrawal (sink)
• Settlement based on difference between sink and source Settlement Point Prices
• Two Instruments:
• PTP Options – payment only• PTP Obligations – payment or
charge
Congestion Revenue Rights as Financial Instruments
Congestion Revenue Rights
Point-to-Point Congestion
Revenue Rights
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Point-to-Point (PTP) ObligationsExample
Congestion Revenue Rights
$5/MWh
$10/MWh
$15/MWh
Source A
Source C
Sink B
Obligation AB Payment = $5.00
Obligation CB Payment = -$5.00 ?
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Point-to-Point (PTP) OptionsExample
Congestion Revenue Rights
$5/MWh
$10/MWh
$15/MWh
Source A
Source C
Sink B
Option AB Payment = $5.00
Option CB Payment = $0.00 ?
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• CRR Auction
• Allocation (Special Case)
• Bilateral Trades
Three ways of acquiring CRRs:
Congestion Revenue Rights
CRRs
Auction
Allocation
Trade
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• Time-of-Use Blocks
• One month strips
CRRs are auctioned and allocated by:
Congestion Revenue Rights
Mon. Tues. Wed. Thurs. Fri. Sat. Sun.
Off-Peak (0100 – 0600)
Off-Peak (2300 – 2400)
Peak Weekday (0700 – 2200) Peak Weekend (0700-2200)
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• CRR Auction
• Monthly and Semi-Annual Auctions
• Based on Network Operations Model
Congestion Revenue Rights
Bids
Offers
CRRAuction
Awarded Offers
Awarded Bids
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Pre-Assigned CRRs (PCRRs)
• Allocated to Non-Opt-In Entities (NOIEs)
• Based on long-term supply contracts
• May be allocated as Options or Obligations
• No charge or a percentage of the Auction clearing price
Allocation of CRRs
Congestion Revenue Rights
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• PTP Options
• PTP Obligations
• Characteristics remain unchanged
• Both parties must meet credit requirements
Trading CRRs Bilaterally
Congestion Revenue Rights
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Three Settlement Processes
• CRR Auction Settlement
• CRR Settlement
• CRR Balancing Account
CRR Settlements
Congestion Revenue Rights
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CRR Auction Settlements
Congestion Revenue Rights Settlements
Settlements
Payments
Charges
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CRR Auction Settlement Timeline
Congestion Revenue Rights
Auction Completed Day 1* Day 3** Day 4**
Auction Invoice
PaymentsDue to ERCOT
PaymentsDue to CRR Account Holders
Auction Results
Day 2**
** Bank Business Day
*** ERCOT Business Day and Bank Business Day
* ERCOT Business Day
Day 5***
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CRR Auction Settlement
Congestion Revenue Rights
Monthly
CRR Auction Revenues
+PCRR Revenues
Pay to QSEs representing Load
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CRR Settlement
Congestion Revenue Rights
Payments
Charges
CRRs are settled in the Day-Ahead Market
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CRR Settlement
Congestion Revenue Rights
Payment due toCRR Account Holders
Hourly
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CRR Settlement
Congestion Revenue Rights
Payment due toCRR Account Holders
Hourly
may be short paid in some hours
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CRR Balancing Account
Congestion Revenue Rights
Payment due toCRR Account Holders
MonthlyPay to QSEs representing Load
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CRR Balancing Account
Congestion Revenue Rights
Payment due toCRR Account Holders
Monthly
X
may remain short paid
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Posted after each Auction:
Market Information System
• CRRs awarded • CRR Account Holders• Auction clearing prices• CRR Bids and offers
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Module 4
Day-Ahead Market
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• Purpose of Day-Ahead Market
• Market Participants
• Day-Ahead Market Process
• Process Inputs and Outputs
• Settlements
• Market Information System
Topics in this lesson ...
Overview
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You Are Here!
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• Centralized Forward Market
• Buy and sell Energy
• Sell Ancillary Services to ERCOT
• Forward market provides price certainty
Purpose of the Day-Ahead Market
Day-Ahead Market
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Day-Ahead Market
Only QSEs participate in the Day-Ahead Market.
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Day-Ahead Market
CRRs are settled with Day-Ahead Market Prices
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• Market opens at 0600
• Clearing Process begins at 1000
• Results posted by 1330
When does the Day-Ahead Market occur?
Day-Ahead Market
0600 1330 0000 Real-TimeOperations
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An Offer is a proposal to sell:
• A Product• At a Location• For a Price
A Bid is a proposal to buy:
• A Product• At a Location• For a Price
Day-Ahead Market
EnergyLoadZone 4
$40
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
Types of Offers:• Three-Part Supply Offer • Ancillary Service (AS) Offer• Day-Ahead Market Energy-Only Offer
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Three-Part Supply Offer
Day-Ahead Market
Energy Offer Curve
$ / MWh (at LSL) $ / MWh (above LSL)
$ / Start
Energy Offer Curve can be submitted without Start-up or Minimum Energy Offers
Startup Offer Minimum-Energy Offer Energy Offer Curve
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• Resource specific
• Regulation Reserve
• Responsive Reserve
• Non-Spinning Reserve
• A Resource may be offered
• For multiple Ancillary Services
• For Energy and Ancillary Services
Ancillary Service (AS) Offers:
Day-Ahead Market
Ancillary Service Offer
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• Proposal to sell energy in DAM
• Offered at any Settlement Point
Day-Ahead Market Energy-Only Offer
Day-Ahead Market
DAM Energy-Only Offer
Valid only in the Day-Ahead Market
Financial obligation in Real-Time
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
Types of Bids:• Energy Bid• PTP Obligation Bid
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• Proposal to buy energy
• Submitted at any Settlement Point
Day-Ahead Market Energy Bid
Day-Ahead Market
h
DAM Energy Bid
Valid only in the Day-Ahead Market
Financial credit in Real-Time
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Purpose of DAM PTP Obligations
• Hedge against congestion costs in Real-Time
• Charge or payment when Grid is congested in Real-Time
Day-Ahead Market PTP Obligation Bids
Day-Ahead Market
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• Like coupled Energy Bid and Energy Offer
• Purchased at DAM Settlement Point Price Spread
• Settled at Real-Time Settlement Point Price Spread
Day-Ahead Market PTP Obligation Bids
Day-Ahead Market
Source A
Sink BEnergy Offer
Energy Bid
PTP ObligationDAM PTP Obligation can
result in a payment or charge
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Day-Ahead Market PTP ObligationsExample
Day-Ahead Market
QSE charge in Day Ahead Market = $2
QSE payment in Real Time = $7 ?
?
$10/MWh $12/MWh
Source A Sink B
PTP Obligation
DAM :
$8/MWh $15/MWhReal-Time :
Settlement Point Prices
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Day-Ahead Market
CRR Auction Day-Ahead Market Real-Time
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
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• Anticipated Resource operating conditions
• Resource Status
• Resource Limits
• Ancillary Service Commitments
• Submitted by QSE
The Current Operating Plan (COP)
Day-Ahead Market
QSE must maintain the COP for each hour of the next 7 days
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
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• Day-Ahead Market does not solve reliability issues
• System must support the Day-Ahead Market solution
The Network Model in the Day-Ahead Market
Day-Ahead Market
The Network Operations Model ensures that DAM solution
respects system limits
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
Cleared Offers = CostsCleared Bids = Revenues
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The Day-Ahead Market clearing process
Day-Ahead Market
MaximizeThe Gap
Bid-based Revenues
Offer-based Costs
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The Day-Ahead Market clearing process
Day-Ahead Market
MaximizeThe Gap
Bid-based Revenues
Offer-based CostsEnergy&AncillaryService Costs
The Day-Ahead Market is a Co-optimized Market
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The Day-Ahead Market
Day-Ahead Market
Day-AheadMarket
Awards
PricingBids
Current Operating Plans
Network Operations Model
Offers
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• QSEs may update COP
• Awarded Energy Offers• Ancillary Service Commitments
• QSEs may submit Trades
After Day-Ahead Market
Day-Ahead Market
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• QSE-QSE transactions
• Transfers financial responsibility
• Types
• Capacity
• Energy
• Ancillary Service
Trades
Day-Ahead Market
Trades are used onlyin Settlements
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Day-Ahead Market Settlements
Payments
Charges
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Daily statements include
• Payments due
• Charges incurred
Day-Ahead Settlement Timeline
Day-Ahead Market
When are Day-Ahead Market Statements available?
Operating Day
Day 2Day Ahead
DAM Statement
Day 1
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Daily invoices include
• DAM Statements
• RTM Statements
Single Daily Settlement Invoice
Day-Ahead Market
InvoiceDay + 2
InvoiceDay + 3
InvoiceDay
ERCOT Issues Invoice• DAM• RTM initial • RTM final• RTM True-Up
Payment Due (to ERCOT)
Payment Due (to Market
Participant)
17001700
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Posted by 0600 Day-Ahead:
Market Information System
• Network Operations Model
• Weather Assumptions • Load Forecasts (next 7 days)• Forecasted Load Profiles
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Posted by 1330 Day-Ahead:
Market Information System
• LMPs • Settlement Point Prices• MCPCs for each Ancillary Service• Energy bought and sold
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Module 5
Reliability Unit Commitment
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• Purpose of Reliability Unit Commitment (RUC)
• Market Participants involved
• The RUC Process
• Settlements
• Capacity Shortfall
• Market Information System
Topics in this lesson ...
Overview
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You Are Here!
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It ensures:
• Enough capacity is committed to serve the forecasted load
• Committed capacity is in the right locations
Purpose of Reliability Unit Commitment (RUC)
Reliability Unit Commitment
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Reliability Unit Commitment
Operational impacts on:QSEs with Resources
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Reliability Unit Commitment
Funds collected from:• Capacity-Short QSEs• QSEs representing Load
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The Reliability Unit Commitment Process
Reliability Unit Commitment
Reliability Unit Commitment
TransmissionSecurity Analysis
(TSA)
Reliability UnitCommitment
(RUC)
Current Operating Plans
NetworkOperations
Model
Contingencies
Load Forecast
Offers Three-Part Supply Offers
Resource Commitments
Resource Decommitments
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Contingencies
NetworkOperations
Model
Committing Enough Capacity
Reliability Unit Commitment
Reliability Unit Commitment
TransmissionSecurity Analysis
(TSA)
Reliability UnitCommitment
(RUC)
Current Operating Plans
Load Forecast
Offers Three-Part Supply Offers
Resource Commitments
Resource Decommitments
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Current Operating Plans
Load Forecast
Contingencies
NetworkOperations
Model
Committing Capacity in the Right Locations
Reliability Unit Commitment
Reliability Unit Commitment
Reliability UnitCommitment
(RUC)
Offers Three-Part Supply Offers
TransmissionSecurity Analysis
(TSA)
Resource Commitments
Resource Decommitments
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Reliability Unit Commitment
Offers Three-Part Supply Offers
NetworkOperations
Model
Current Operating Plans
Load Forecast
Contingencies
What if ERCOT must commit additional capacity?
Reliability Unit Commitment
Reliability UnitCommitment
(RUC)
TransmissionSecurity Analysis
(TSA)
Resource Commitments
Resource Decommitments
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Current Operating Plans
Load Forecast
Contingencies
NetworkOperations
Model
• Resource Commitments• Resource Decommitments• No additional Commitments
Potential Results of RUC Process:
Reliability Unit Commitment
Reliability Unit Commitment
Reliability UnitCommitment
(RUC)
Offers
Resource Commitments
Resource Decommitments
Three-Part Supply Offers
TransmissionSecurity Analysis
(TSA)
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• Day-Ahead Reliability Unit Commitment (DRUC)
• Hourly Reliability Unit Commitment (HRUC)
When does Reliability Unit Commitment (RUC) occur?
Reliability Unit Commitment
HRUCDRUC
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Reliability Unit Commitment
Make-Whole
Payments
*RUC-Committed Resources
Capacity Short
Charges
Make-Whole Uplift
Charges
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• Make-Whole Payments
• RUC-committed Resources recover their commitment costs
Reliability Unit Commitment
Resource Costs
Resource Revenues
$
RUC Make-Whole Payment
Make-Whole Payment
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Capacity Short Charge
Reliability Unit Commitment
QSEs with Capacity Shortfall may be assessed Capacity Short Charges
Capacity Obligations
Capacity Supply
Capacity Shortfall
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• Load (Adjusted Metered Load)
• Capacity Trades where the QSE is a seller
• Energy Trade where the QSE is a seller
• Cleared DAM Energy Offer
What is included in the QSE’s capacity obligation?
Reliability Unit Commitment
Capacity Obligations
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• Show capacity from its Resources in its COP
• Capacity Trades where the QSE is a buyer
• Energy Trades where the QSE is a buyer
• Cleared DAM Energy bids
How can a QSE arrange to meet these obligations?
Reliability Unit Commitment
Capacity Obligations
Capacity Supply
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QSE must arrange for enough Capacity to meet Obligations
To Minimize Capacity Short Charges …
Reliability Unit Commitment
Capacity Obligations
Capacity Supply
Capacity Shortfall
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Difference uplifted to QSEs representing Load
Revenues may not be enough for make-Whole Payments
Reliability Unit Commitment
Slide 141
Gen 1
RUC Make-Whole
Payments
Make-WholeUplift
Charges
CapacityShortfallCharges
Capacity Short
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Reliability Unit Commitment
Make-Whole
Payments Capacity Short
Charges
Make-Whole Uplift
Charges
RUC Payments and Charges are included in Real-Time Settlements
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Posted after process completion:
Market Information System
• Resources committed • Resources decommitted• Active transmission constraints
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Module 6
Real-Time Operations
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• Purpose of Real-Time Operations
• Market Participants
• Real-Time Operations Process
• Security Constrained Economic Dispatch
• Load Frequency Control
• Settlements
• Market Information System
Topics in this lesson ...
Overview
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You Are Here!
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• Manage reliability
• Match generation with demand
• Operate transmission system within established limits
• Operate the system at least cost
Purpose of Real-Time Operations
Real-Time Operations
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Real-Time Operations
ERCOT provides dispatch instructions to QSEs with Resources
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Real-Time Operations
ERCOT may also provide dispatch instructions to TSP’s
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• Operating Period
• Includes Operating Hour and Hour-Ahead
When do Real-Time Operations occur?
Real-Time Operations
60 mins.prior to
Operating Hour
00000600 Real-TimeOperations
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• Operating Hour - Real-Time dispatch of energy
• Hour-Ahead – Preparations for Real-Time Operations
The Operating Period includes:
Real-Time Operations
60 mins.prior to
Operating Hour
00000600 Real-TimeOperations
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Real-Time Operations
Telemetry
NetworkOperations
Model
ContingenciesReal-Time Operations
Security-ConstrainedEconomic Dispatch
Offers
Pricing
Locational Marginal Prices
Dispatch Instructions
Base Points
Real-Time Network Security Analysis
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• Network Security Analysis identifies transmission constraints
• Security Constrained Economic Dispatch (SCED) determines least-cost solution
Network Security Analysis and SCED
Real-Time Operations
Real-Time Operations
Security-ConstrainedEconomic Dispatch
Network Security Analysis
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Provide Real-Time system data
Real-Time Operations
Telemetry
NetworkOperations
Model
ContingenciesReal-Time Operations
Security-ConstrainedEconomic Dispatch
Offers
Pricing
Locational Marginal Prices
Dispatch Instructions
Base Points
Real-Time Network Security Analysis
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Identify Constraints, both Transmission & Resource
Real-Time Operations
Telemetry
NetworkOperations
Model
ContingenciesReal-Time Operations
Security-ConstrainedEconomic Dispatch
Offers
Pricing
Locational Marginal Prices
Dispatch Instructions
Base Points
Real-Time Network Security Analysis
TransmissionConstraints
& Resource
Dispatch Limits
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Real-Time Operations
SCED evaluates Offers to determine least-cost solution
Real-Time Operations
Telemetry
NetworkOperations
Model
Contingencies
Security-ConstrainedEconomic Dispatch
Offers
Pricing
Locational Marginal Prices
Dispatch Instructions
Base Points
Real-Time Network Security Analysis
TransmissionConstraints
& Resource
Dispatch Limits
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Submitted by QSEs:
• Three-Part Supply Offer
• Stand Alone Energy Offer Curve
During:
• Day-Ahead Market
• Adjustment Period
SCED uses Energy Offer Curves:
Real-Time Operations
Energy Offer Curve
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SCED produces Prices and Dispatch Instructions
Real-Time Operations
Telemetry
NetworkOperations
Model
ContingenciesReal-Time Operations
Security-ConstrainedEconomic Dispatch
Offers
Pricing
Locational Marginal Prices
Dispatch Instructions
Base Points
Real-Time Network Security Analysis
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How often does all this happen?
Real-Time Operations
Telemetry
NetworkOperations
Model
ContingenciesReal-Time Operations
Security-ConstrainedEconomic Dispatch
Offers
Pricing
Locational Marginal Prices
Dispatch Instructions
Base Points
Real-Time Network Security Analysis
At least every 5 minutes
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Every 5 minutes (when SCED runs)
LMPs
• Electrical buses
Every 15 minutes
Settlement Point Prices
• Resource Nodes
• Load Zones
• Hubs
Real-Time Price Calculations
Real-Time Operations
Reserve Price Adders
• ERCOT-wide
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• Matches generation with demand
• Manages congestion
• Achieves least cost dispatch
Security Constrained Economic Dispatch (SCED)
Real-Time Operations
5 minutes
Base point
Base point
Base point
SCEDSCED SCED
5 minutes
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• Matches generation with demand
• Responds to frequency deviations
• Deploys Regulation Reserve Service
Load Frequency Control (LFC)
Real-Time Operations
Frequency (Hz)
60. 0000
5 minutes 5 minutes
Base point
Base point
Base point
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Real-Time Operations Settlements
Payment for Net Supply
Charge for Net Obligation
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Real-Time Operations Settlements
Examples•__________________ •__________________•__________________
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Real-Time Operations Settlements
Examples•__________________ •__________________•__________________
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Daily statements include
• Payments due
• Charges incurred
Real-Time Settlement Timeline
Real-Time Operations Settlements
When are Real-Time Statements available?
Day 180Operating Day
Day 5
Initial Statement
Final Statement
True-Up Statement
Day 55
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Daily invoices include
• DAM Statements
• RTM Statements
Single Daily Settlement Invoice
Real-Time Operations Settlements
InvoiceDay + 2
InvoiceDay + 3
InvoiceDay
ERCOT Issues Invoice• DAM• RTM initial • RTM final• RTM True-Up
Payment Due (to ERCOT)
Payment Due (to Market
Participant)
17001700
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• Active transmission constraints
Posted after completion of SCED:
Market Information System
• Locational Marginal Prices• Settlement Point Prices
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Course Conclusion
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• ERCOT Client [email protected]
• ERCOT Mailing Listshttp://lists.ercot.com/
• ERCOT Nodal Market Protocolshttp://www.ercot.com/mktrules/nprotocols/
• ERCOT Traininghttp://www.ercot.com/services/training/
• Market Education [email protected]
Additional Resources
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Scan this QR code to take the course survey!
Got Feedback?
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Appendix
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Access Market Information System from ERCOT public website:
Appendix: Pathways to Referenced Data
Digital Certificate required
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LMP Contour Map: http://www.ercot.com/content/cdr/contours/rtmLmpHg.html
Appendix: Pathways to Referenced Data
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Public access:
http://www.ercot.com/mktinfo/crr/index.html
CRR Auction section, Auction Results posting (zip folder)
• CRRs, CRRAHs awarded, and Auction Clearing Prices
• Common Market Results file (CSV or XML format)
• CRR Bids and Offers
• Common Auction Bids and Offers file (CSV or XML format)
CRR Auction Results
Appendix: Pathways to Referenced Data
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CRR Auction Results via Market Information System
Appendix: Pathways to Referenced Data
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Day-Ahead Network Operations Model (posted by 0600)
Appendix: Pathways to Referenced Data
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• Weather assumptions
• Public access: http://www.ercot.com/mktinfo/dam/index.html,under System Conditions
• MIS Secure: Markets > Day-Ahead Market >Day-Ahead Public Information
• Forecasted Load Profiles
• Public access: http://www.ercot.com/mktinfo/loadprofile/index.html, under Current Information
• MIS Secure: Markets > Load Profiling > Load Profiling Reports and Extracts (Public)
Posted by 0600 Day-Ahead:
Appendix: Pathways to Referenced Data
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• Load Forecasts (next 7 days)
• Public access:http://www.ercot.com/gridinfo/load/index.html, under Current Information
• MIS Secure: Grid > Forecasts > Significant System Conditions
• List of transmission constraints
• Public access:http://www.ercot.com/gridinfo/generation/index.html, under Current Information
• MIS Secure: Grid > Generation > Public Generation Information > Weekly RUC Active and Binding Transmission Constraints
Posted by 0600 Day-Ahead:
Appendix: Pathways to Referenced Data
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• DAM Hourly LMPs
• DAM Settlement Point Prices
• DAM Clearing Prices for Capacity
• DAM Total Energy Purchased
• DAM Total Energy sold
• Public access: http://www.ercot.com/mktinfo/dam/index.html, under Day-Ahead Market Results Reports
• MIS Secure: Markets > Day-Ahead Market > Day-Ahead Market Results
Posted by 1330 Day-Ahead:
Appendix: Pathways to Referenced Data
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• RUC Committed or Decommitted Resources
• MIS Secure: Grid > Generation > ReliabilityUnit Commitment
• Active transmission constraints
• Public access: http://www.ercot.com/gridinfo/generation/index.htmlunder Current Information
• MIS Secure: Grid > Generation > PublicGeneration Information
Posted after RUC completion:
Appendix: Pathways to Referenced Data
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• Locational Marginal Prices
• Settlement Point Prices
• Public access: http://www.ercot.com/mktinfo/rtm/index.html, under Real-Time Prices Reports
• MIS Secure: Markets > Real-Time Market > Real-Time Prices
• Active transmission constraints
• MIS Secure: Markets > Real-Time Market > Real-Time Operations
Posted after completion of SCED:
Appendix: Pathways to Referenced Data