spp integrated marketplace overview mic overview_spp_rew.pdfspp’s energy market: integrated...
TRANSCRIPT
SPP Integrated Marketplace OverviewBruce Rew, PE
Vice President, Operations
2
Operating Region
• Miles of service territory: 575,000
• Population served: 18M
• Generating Plants: 756
• Substations: 4,757
• Miles of transmission: 60, 944
• 69 kV 13,532• 115 kV 14,269
• 138 kV 9,117• 161 kV 5,647• 230 kV 7,608• 345 kV 10,772
3
Generation Capacity* by Fuel Type(87,086 MW total)
4* Figures refer to
nameplate capacity
as of 1/1/18
2017 Energy Productionby Fuel Type (259, 554 GWh total)
19.5%
46.3%
4.2%
22.7%
6.8% 0.6% 0.2%
Gas (19.5%)
Coal (46.3%)
Hydro (4.1%)
Wind (22.7%)
Nuclear (6.8%)
Other (0.3%)
Solar (0.2%)
5
MWTG and SPP Footprint (with DC Ties)
Eastern Interconnect
Western Interconnect
Texas Interconnect
Miles City (200)
Rapid City (200)
Stegall (100)
Sidney (200)
Lamar (210)
BlackWater (200)
Eddy (200)
MWTG
4 DC Ties MWTG
710 MW
6
SPP’s Energy Market: Integrated Marketplace
• Similar to other competitive regional electric markets
• Matches buyers and sellers of energy
• Day-Ahead market includes unit commitment
• Real-Time spot market for energy
• Procures necessary ancillary services
• Consolidated Balancing Authority for reliability and optimized dispatch
• SPP does not have a Capacity Market
Reserve Margin at 30%+
Extensive renewable penetration
SPP
7
Market Facts
• 207 market participants
• 756 generating resources
• 2017 Marketplace Settlements = $16.7 billion
• 50,622 MW coincident peak load (7/21/16)
• Winter peak: 43,584 MW (1/17/18)
8
Marketplace Benefits
• SPP’s markets provide participants $422M in net savings annually
• Reduce total energy costs through centralized unit commitment while maintaining reliable operations
• Day-Ahead Market allows additional price assurance capability prior to real-time
• Operating Reserve products support implementation of the SPP Balancing Authority and facilitate reserve sharing
• Market continues to provide savings even with extremely low natural gas prices
• At the end of 2018 the savings amount was over $1.7 Billion from the Integrated Marketplace
9
Integrated Marketplace Overview
10
Key Components
Day-Ahead (DA) Market
Real-Time Balancing Market (RTBM)
Transmission Congestion Rights (TCR) Market
Products
Energy
Operating Reserve (Regulation Up, Regulation
Down, Spinning, Supplemental)
Congestion Rights
Day-Ahead Market• Determines least-cost solution to meet energy bids
and reserve requirements
• Participants submit offers and bids to purchase and/or sell energy and operating reserve:
• Energy
• Regulation-Up
• Regulation-Down
• Spinning Reserve
• Supplemental Reserve
• Financially binding market
11
Day-Ahead Market Timeframe
12
Reoffer Period
(14:00 – 14:45)
Day-Ahead
Market
Processing
(09:30 – 14:00)
• Performs unit
commitment
• Sets DA prices
• Performs
clearing
Period when Market
Participants can
submit new offers
prior to DA
Reliability Unit
Commitment.
Pre-Day-
Ahead Market
Activities
(00:00 – 09:30)
24 Hours Prior to Operating Day
• Offers and Bids
Submitted (up to
7 days in
advance)
• Operating
Reserves Posted
* Times specified are the times associated with normal operating conditions. SPP may
delay these times to account for unforeseen circumstances; SPP will notify MPs of any
such timing delays.
Day-Ahead
Reliability
Unit
Commitment
(14:45 – 17:15)
Ensure enough
capacity
committed for
next operating
horizon
Real-Time Balancing Market (RTBM)
• Balances real-time load and generation committed by the Day-Ahead Market and Reliability Commitment processes
• Operates on continuous 5-minute basis Calculates dispatch instructions for energy
and clears operating reserve by resource
• Energy and operating reserve are co-optimized
• Settlements based on difference between results of RTBM process and Day-Ahead Market clearing
• Charges imposed on market participants for failure to deploy energy and operating reserve as instructed
13
Improved Reliability and Resilience • Entities performing Reliability, Balancing and
Market function improve Reliability and Resilience of BES.
Functional control of Resources and can commit resources on a multi day ahead and day ahead basis to maintain Reliability.
Multi Day Reliability Unit Commitment studies that use Security Constraint Economic Dispatch logic to maintain N-1 secure Transmission System
Running voltage and stability studies on a multi day ahead basis
Both the MDRA studies and VSAT studies consider transmission outages that are scheduled
Running Intra Day Reliability Unit Commitment studies that use Security Constraint Economic Dispatch logic to maintain N-1
Contingency reserve clearing and regulation clearing
14
Reliability Coordination:
• Monitor grid 24 x 365
• Anticipate problems
• Take preemptive action
• Coordinate regional response
• Independent
• Comply with more than 5,500 pages of reliability standards and criteria
15
Congestion Prevents Access to Generation
16
Load pockets see higher
prices (pay for more
expensive, local generation)
Low prices in areas
with high amount of
cheap generation
(wind), constrained
by transmission
outlets
Congestion’s Impact on Market Prices
17WDWFPLTATNOW: Woodward – FPL Switching Station 138kV
for the loss of Tatonga – Northwest 345kV
Woodward to FPL Transmission line
West East flow across NW Oklahoma
MEC: $29.36/MWh
West of constraint: $-9.66 /MWh
East of constraint: $86.88 /MWh