module 2: day-ahead operations · – reliability unit commitment (ruc) slide 2 • identify...

Module 2: Day-Ahead OperationsModule 2: Day Ahead Operations

Module Objectives

Upon completion of this module, you will be able to:

• Identify the components of Day-Ahead Operations

• Explain the timeline and purpose of Day-Ahead Operations• Explain the timeline and purpose of Day-Ahead Operations– Day-Ahead Market (DAM)

– Day-Ahead Reliability unit Commitment (DRUC)y y ( )

• Describe the inputs and outputs of DAM / DRUC

• Describe the functions within DRUCesc be e u c o s UC– Transmission Security Analysis (TSA)

– Reliability Unit Commitment (RUC)

Slide 2

• Identify impacts of Day-Ahead Operations on Real-Time

Module Overview

Course Modules:

Nodal Market Overview

Day-Ahead Operations

Module 1

Module 2 Day Ahead Operations

Adjustment Period

Module 2

Module 3

Operating Period

Emergency Operation Conditions

Module 4

Module 5

Performance MonitoringModule 6

Slide 3



Slide 4

Day-Ahead Market

Day-Ahead Market (DAM)

Slide 5

Day-Ahead Reliability Unit Commitment

Day-Ahead Reliability Unit Commitment (DRUC)

Slide 6

Day-Ahead Market Overview

1 Day-Ahead Market Basics1 Day Ahead Market Basics

2 Pre-Market Activities2 Pre-Market Activities

3 DAM Clearing & Post-Market Activities

Slide 7


Day-Ahead Market Overview




Slide 8


Day-Ahead Market Timeline

• Day-Ahead Market TimelineDAM i t d b t 1000 d 1330 h• DAM is executed between 1000 and 1330 hrs.

• Information relevant to DAM must be posted by 0600 hrs.

DRUCDAM

10000600 1330

Slide 9

10000600 1330

Day-Ahead Market Features

•Participation in Day-Ahead is:V l t• Voluntary

RMR Units may be required to participate

• Financially Binding

Ancillary Services also carry physical commitmentAncillary Services also carry physical commitment

Slide 10

What Occurs in the Day-Ahead Market?

Energy AwardsEnergy AwardsEnergy Bids & Offers

Energy Bids & Offers

Ancillary Service

Ancillary ServiceAncillary Ancillary Service AwardsService AwardsService OffersService Offers

CCPTP Obligation

AwardsPTP Obligation


BidsPTP Obligation

Bids

Co-Optimization

Engine

Co-Optimization

Engine

Slide 11



Energy Bids & Offers Energy AwardsEnergy Awards

Ancillary Ancillary Ancillary Service

Ancillary ServiceService OffersService Offers Service AwardsService Awards

CCPTP Obligation

BidsPTP Obligation

BidsPTP Obligation


Awards

Co-Optimization

Engine

Co-Optimization

Engine

Slide 12

Energy Bids and Offers

QSE

DAM DRUC

Q10000600 1330 1430

Options for Day-AheadOptions for Day Ahead Energy Bids and Offers:

E Bid• Energy Bids

• Energy-Only Offers

AllQSEs

• Three-Part Supply Offers QSEs w/

Slide 13

Three Part Supply Offers QSEs w/Generation

The Energy Bid

QSE

DAM DRUC

Bid to buy energy at a DAM Settlement Point

Q10000600 1330 1430

Bid to buy energy at a DAM Settlement Point• Available to all QSEs• Helps lock in price certainty

FORFORSALE

Slide 14

The Energy-Only Offer

QSE

DAM DRUC

Offer to sell energy at a DAM Settlement Point

Q10000600 1330 1430

Offer to sell energy at a DAM Settlement Point• Virtual transaction• Available to all QSEs

H l l k i i t i t FOR• Helps lock in price certainty FORSALE

Slide 15

The Three-Part Supply Offer

QSE

DAM DRUC

Offer to sell energy at a DAM Settlement Point

Q10000600 1330 1430

Offer to sell energy at a DAM Settlement Point• Linked to a specific resource• Available only from QSEs with Generation

QSE ti i ti i D Ah d h l FOR• QSE participation in Day-Ahead helps ERCOT plan Real-Time commitments

FORSALE

Slide 16

Submission Options

QSE

DAM DRUC

Q10000600 1330 1430

OROTh P t S l Off E Off C

Slide 17

Three-Part Supply Offer Energy Offer Curve




Ancillary Service

Ancillary ServiceAncillary Ancillary Service AwardsService AwardsService OffersService Offers

CCPTP Obligation

BidsPTP Obligation

BidsPTP Obligation


Awards

Co-Optimization

Engine

Co-Optimization

Engine

Slide 18

The Ancillary Service Plan

ERCOT

DAM DRUC

The Ancillary Service Plan identifies obligations for each

1330 143010000600

The Ancillary Service Plan identifies obligations for each hour of the next Operating Day, assigned to each QSE with load on a load-ratio share basis.

Slide 19

Ancillary Service Obligation

QSE

DAM DRUC

Q10000600 1330 1430

Self-ArrangedgQuantity

AND/OR

AncillaryService

Obligation

PurchaseFromERCOT

Slide 20

Obligation ERCOT

Self-Arranged Ancillary Services

QSE

DAM DRUC

Q10000600 1330 1430

Self-SupplySupply

AND/OR

BilateralPurchases

Self-ArrangedQuantity

Slide 21

Quantity





Ancillary ServiceService OffersService Offers Service AwardsService Awards

CCPTP Obligation

BidsPTP Obligation

BidsPTP Obligation


Awards

Co-Optimization

Engine

Co-Optimization

Engine

Slide 22

Locational Market Pricing

Day-Ahead Market LMPs

An LMP is the offer-based,

marginal cost of serving the g

next increment of Load at an

electrical buselectrical bus

Slide 23

Congestion

LMPs may reflect impact of congestion caused by:

• Supply & Demand

– Offers and Bids

• Transmission Constraints

• OutagesOutages

– Transmission

Resources– Resources

Slide 24

Settlement Points

LMPs are used to calculate Settlement Point Prices

• Settlement Points may be:

• Resource Nodes• Resource Nodes

• Load Zones

• Hubs

Slide 25

Resource Node

R N dResource Node• An electrical bus where a

Generation Resource’s measured output is settled.

• Settlement Point Prices - Based on the LMP at the Resource Nodethe LMP at the Resource Node.

+

Slide 26

Load Zone

Load Zone

Three types of Load Zones:• Competitive• NOIE• DC Tie

Settlement Point Prices - Load-weighted average of the LMPs at all the load buses in the zone.

Slide 27

Trading Hub

• Settlement Point Prices at

Hub

Hubs are calculated using the simple average of LMPs for all hub-buses in the d fi d h bdefined hub.

Slide 28

DAM vs. Real-Time

LMPs are generated in both Day-Ahead and Real-time • Calculated separately• Calculated separately• Typically different• Creates financial impact on QSEsC ea es a c a pac o QS s

$15$10 $12$15

≠$5

$25 $10

$10

$35 $2≠

Slide 29

$5 $10

Pre-Market Activities




Slide 30


Update RMR COPs

QSE

DAM DRUC

Q10000600 1330 1430

QSEs with RMR Agreements must submit their updatedQSEs with RMR Agreements must submit their updated Current Operating Plans.

RMR

Slide 31

Publish System Conditions

ERCOT

DAM DRUC

1330 143010000600

ERCOT must publish:ERCOT must publish:• Operations model topology

• Weather assumptions• Weather assumptions

• Load forecasts & distribution factors

S ttl t P i t li t d• Settlement Point lists and maps

• Transmission constraints

Slide 32

DAM Clearing and Post-Market Activities




Slide 33


DAM Clearing




Ancillary Service

CC

Service OffersService Offers Service AwardsService Awards

PTP Obligation Bids

PTP Obligation Bids

Co-Optimization

Engine

Co-Optimization

EnginePTP Obligation


Awards

Slide 34

Publish Market Results

ERCOT

DAM DRUC

ERCOT must publish:

1330 143010000600

ERCOT must publish:• Awarded Ancillary Service Offers• Awarded Energy Bids & Offersgy• Awarded PTP Obligation Bids • DAM LMPS and Shadow Prices• DAM Settlement Point Prices

Slide 36

Updating Current Operating Plans

QSE

DAM DRUC

Q1330 143010000600

Slide 37

Updating Current Operating Plans

QSE

DAM DRUC

QSE is responsible for updating COP due to:

Q1330 143010000600

QSE is responsible for updating COP due to:• Changes in Market conditions• DAM awards

RUC• RUC• SASMs• Outages*

Th COP b d t d tig

• Deratings* The COP may be updated any time before end of Adjustment Period

Slide 38

* Must also update Outage Scheduler – to be covered later

COP Contents

QSE

DAM DRUC

Q1330 143010000600

The COP reflects anticipated operating conditionsThe COP reflects anticipated operating conditions, including:

• Expected Status, by hourC it• Capacity

• Ancillary Service commitments

Each QSE has one and only one COP of each Resource

Slide 39

COP of each Resource

Integrity

QSE

DAM DRUC

ERCOT monitors COPs for validity

Q1330 143010000600

ERCOT monitors COPs for validity• If invalid, QSE must update ASAP within applicable

timeframes

Slide 40

Reasons for updating Current Operating Plans

QSE

DAM DRUC

Q1330 143010000600

By 1430 COPs must be updated toBy 1430 COPs must be updated to reflect:

• Assignment of AS Resource R ibilitResponsibility

• Commitments due to award of resource-specific offers.

• Self-Commitments in response to DAM results.

Slide 41

Life-Span

QSE

DAM DRUC

COP ceases to be in effect at Real Time

Q1330 143010000600

COP ceases to be in effect at Real-Time.

COP TelemetryAdjustment Period Real-Time Operations

COP Telemetry

Slide 42

DAM Awards

QSE

DAM DRUC

Q10000600 1330 1430

Update COPUpdate COP

AwardedAwarded

Update COPUpdate COP

OR

3PSO3PSO DAM DRUCOR

Not Awarded

Not Awarded OR

Slide 43

Self-CommitSelf-Commit

Ancillary Service Supply Responsibility

QSE

DAM DRUC

AS Supply Responsibility is the total amount of

Q1330 143010000600

AS Supply Responsibility is the total amount of each Ancillary Service commitment expected to be delivered in Real-Time

P QSE• Per QSE• For each Ancillary Service

AS Supply = +

Self-ArrangedQ

AncillaryService +

AncillaryService

Slide 44

Responsibility Quantity Trades Awards(Sale – Purchase)

Ancillary Service Resource Responsibility

QSE

DAM DRUC

Q1330 143010000600

AS ResourceResponsibility

AS ResourceResponsibility A

Bp y

AS ResourceResponsibility

AS Supply C

Slide 45

ResponsibilityResponsibility

Making Bilateral Trades

QSE

DAM DRUC

Q1330 143010000600

QSEs may wish to make Bilateral Trades based upon theQSEs may wish to make Bilateral Trades based upon the results of the Day-Ahead Market.

• QSE-to-QSE trades:E• Energy

• Capacity• Ancillary Service

Trades and corresponding COP updates should be reported

Slide 46

Trades and corresponding COP updates should be reported to ERCOT by 1430 to be recognized in the DRUC process

Energy Trades

QSE

DAM DRUC

Q1330 143010000600

Transfers responsibility to supply energy at Real-TimeTransfers responsibility to supply energy at Real Time.

Slide 47

Capacity Trades

QSE

DAM DRUC

Q1330 143010000600

Transfers responsibility to supply capacity at Real-TimeTransfers responsibility to supply capacity at Real Time

Slide 48

Ancillary Service Trades

QSE

DAM DRUC

Q1330 143010000600

Transfers responsibility to supply Ancillary Services atTransfers responsibility to supply Ancillary Services at Real-Time

Slide 49

DC Tie Schedules

QSE

DAM DRUC

Q1330 143010000600

DC Ties connect the ERCOT transmission grid to outsideDC Ties connect the ERCOT transmission grid to outside transmission elements

• QSEs may leverage to buy / sell energy

• Transactions subject to NERC and ERCOT scheduling restrictions

Slide 50

Impacts on QSE

QSE

DAM DRUC

Q1330 143010000600

ERCOT considers DC Tie transactions when examiningERCOT considers DC Tie transactions when examining grid reliability:

• Energy entering the grid is treated as a ResourceE l i th id i t t d L d• Energy leaving the grid is treated as a Load

These transactions can impact the pQSE during RUC

Slide 51

Timing

QSE

DAM DRUC

Q1330 143010000600

DAM Results may prompt a QSE to submit a DC TieDAM Results may prompt a QSE to submit a DC Tie Schedule.

1430 hrs

DRUC HRUCDRUC HRUCSubmitted after…Submitted prior to…

Slide 52

Day-Ahead Reliability Unit Commitment (DRUC)

1 DRUC Basics1 DRUC Basics

2 Transmission Security Analysis2 Transmission Security Analysis

3 Reliability Unit Commitment

Slide 53


DRUC Overview




Slide 54


Introduction

This module covers Day-Ahead Reliability Unit Commitment

Slide 55

Why DRUC?

Why look at reliability at the end of the DAM?B Th D Ah d M k t ll th k t l tBecause The Day-Ahead Market allows the marketplace to:• Buy / Sell energy• Meet Ancillary Service obligations• Meet Ancillary Service obligations• Commit enough Resources

Slide 56

Why DRUC?, cont’d

Errors and uncertainty may occur in:W th f t• Weather forecasts

• Demand forecasts• Time of day forecasts are taken• Time of day forecasts are taken• Resource shortages

Slide 57

DRUC Sequence

DRUC Comprised of 2 Sub-Processes:T i i S it A l i (TSA)• Transmission Security Analysis (TSA)

• Reliability Unit Commitment (RUC)

1430

1600

TSA RUCDRUC

Slide 58

Transmission Security Analysis




Slide 59


TSA Overview

TSA Inputs• Forecast potential problems on grid• Forecast potential problems on grid• Screen contingencies• Generate inputs for RUCGenerate inputs for RUC• Make adjustments in Load and weather data

Slide 60

TSA Summary

DRUC TSA Sub-Process

Inputs Processes Outputs

Ne

Base Case Network Model

Normal Breaker & Switch Status

Load ForecastValid Network Model

Known Contingency List

ERC

OT O

p

etwork Secu

Updated N

e

Load Forecast

Load Distribution Factors

Weather ForecastList

Self Committed Resource Set

perator Rev

urity Analysi

etwork M

ode

Violations to resolve

iew

isel

Generic Constraints

Slide 61

Screened Contingency ListContingency List

TSA Summary



Ne

Valid Network Model


ERC

OT O

p

etwork Secu

Updated N

eList


perator Rev

urity Analysi

etwork M

ode

Equipment Ratings

Unplanned Transmission Outages


iew

isel

Slide 62

Screened Contingency List

TSA Summary



Ne

Valid Network Model


ERC

OT O

p

etwork Secu

Updated N

eList


perator Rev

urity Analysi

etwork M

ode


iew

iselUnplanned Resource Outages / Deratings

Other COP Input

Slide 63


Contingency List



Ne

Valid Network Model


ERC

OT O

p

etwork Secu

Updated N

eList


perator Rev

urity Analysi

etwork M

ode


iew

isel

Slide 64

Screened Contingency ListContingency List

Network Security Analysis



Ne

Valid Network Model


ERC

OT O

p

Updated N

e

etwork Secu

List


perator Rev

etwork M

ode

urity Analysi


iew

el is

Slide 65


ERCOT Review



Ne

Valid Network Model


ERC

OT O

p

Updated N

e

etwork Secu

List


perator Rev

etwork M

ode

urity Analysi


iew

el is

Slide 66


Outputs

Processes Outputs


Inputs

Ne

ERC

OT O

p

Updated N

e

etwork Secu

Valid Network Model

Known Contingency Listperator R

ev

etwork M

ode

urity Analysi

List


iew

el is


Slide 67

Screened Contingency ListScreened Contingency List

Reliability Unit Commitment




Slide 68


RUC Overview

RUC’s goal is to maintain grid reliability while observing transmission

constraints and minimizing costs.

Slide 69

RUC Overview

Day-Ahead RUC Sub-Process Inputs Processes Outputs

Resource Standing Data

RUC Time StampER

CO

T

RU

C It

RUResource Cost and Fuel Data

RUC Time Stamp

Cleared Commitments

Cleared De-

T Operator R

teration Res

UC

Function

Self-Arranged AS & Previous RUCs

Mitigated Offer-Cap Curve

commitments

Procured AS capacity for DAM insufficiency

Review

sultsRMR 3-Part Supply Offers

Previous DRUC, SASM, & HRUC Results

Hourly TSA ResultsInfeasible ResourceAS Capacity

Hourly TSA Results

DC Tie Schedules

3-Part Supply Offers

Slide 70

IterationsCurrent Operating Plan

RUC Inputs - ERCOT

Day-Ahead RUC Sub-Process Inputs Processes Outputs

RUC Time StampER

CO

T

RU

C It

RU

Resource Standing Data

Resource Cost and Fuel DataRUC Time Stamp

Cleared Commitments

Cleared De-

T Operator R

teration Res

UC

Function

Self-Arranged AS & Previous RUCs

Mitigated Offer-Cap Curve

commitments


Review

sultsRMR 3-Part Supply Offers

Infeasible ResourceAS Capacity

Slide 71

Iterations

RUC Inputs - TSA

ProcessesDay-Ahead RUC Sub-Process

Inputs Outputs

RUC Time StampER

CO

T

RU

C It

RU

RUC Time Stamp

Cleared Commitments

Cleared De-

T Operator R

teration Res

UC

Functioncommitments


Review

sults

Previous DRUC, SASM, & HRUC Results

Hourly TSA ResultsInfeasible ResourceAS Capacity

Hourly TSA Results

Slide 72

Iterations

RUC Inputs - QSE


Inputs Outputs

RUC Time StampER

CO

T

RU

C It

RU

RUC Time Stamp

Cleared Commitments

Cleared De-

T Operator R

teration Res

UC

Functioncommitments


Review

sults


DC Tie Schedules

3-Part Supply Offers

Slide 73

IterationsCurrent Operating Plan

RUC Outputs


Inputs Outputs

ERC

OT

RU

C It

RU

RUC Time StampT Operator R

teration Res

UC

Function

RUC Time Stamp

Cleared Commitments

Cleared De-Review

sults commitments



Slide 74

Iterations

RUC Outputs


Inputs Outputs

ERC

OT

RU

C It

RU

RUC Time StampT Operator R

teration Res

UC

Function

RUC Time Stamp

Cleared Commitments

Cleared De-Review

sults commitments



Slide 75

Iterations

Summary

You’ve learned about…

• Components of Day-Ahead Operations

• Purpose of Day Ahead Operations• Purpose of Day-Ahead Operations

– Day-Ahead Market (DAM)

– Day-Ahead Reliability unit Commitment (DRUC)Day Ahead Reliability unit Commitment (DRUC)

• Inputs and outputs of DAM / DRUC

• Functions within DRUCFunctions within DRUC

– Transmission Security Analysis (TSA)

– Reliability Unit Commitment (RUC)

Slide 76

y ( )

• Impacts of Day-Ahead Operations on Real-Time

Module ConclusionModule Conclusion

module 2: day-ahead operations · – reliability unit commitment (ruc) slide 2 • identify...

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