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Participation of Self-Committed Generation Resources in DAM

Participation of Self-Committed Generation Resources in DAM. Sai Moorty. Current DAM Implementation related to Self-Committed Generation Resources in DAM. 1) Energy Offer Curve (EOC) ONLY is: 1a) Submitted as 3PO without (Blank/Null) values for Startup and Min Energy Costs

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Participation of Self-Committed Generation Resources in DAM

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  1. Participation ofSelf-Committed Generation Resources in DAM Sai Moorty ERCOT

  2. Current DAM Implementation related to Self-Committed Generation Resources in DAM 1) Energy Offer Curve (EOC) ONLY is: 1a) Submitted as 3PO without (Blank/Null) values for Startup and Min Energy Costs 1b) Treated by DAM engine internally as 3PO with zero Startup and Min Energy Costs 1c) LSL ≤ EOC ≤ HSL i.e. EOC MW values represents actual output of generation resource 2) For DAM study period all resources are considered offline and available to be optimized (DAM does not look at COP statuses) 3) Any resource specific offer (3PO, EOC, AS) is awarded respecting: 3a) Resource temporal constraints (MinUp, MinDn, MaxUp) 3b) Various rules respecting LSL, HSL, first and last points of the Energy Offer Price Curve (3PO and EOC only), AS Offers (inclusive/exclusive) 4) DAM-commitment defined as any resource offer cleared (3PO, EOC , AS Offer). If DAM awards a resource with AS Offers only, then subsequently 3PO can be submitted with reason code for the awarded periods. ERCOT

  3. Current implementation: How a self-committed generation Resource can participate in DAM Scenario: Resource with LSL=200, HSL=600 has a bilateral trade or has a self-schedule of 500 MW for the Day-Ahead (24 hours). How can remaining 100 MW capacity participate in DAM? Possible options in current implementation: Submit one of: a) EOC for resource representing actual resource output (3PO without Startup and Min Energy Costs and withEOC i.e. LSL ≤ EOC ≤ HSL), Energy Bid for 500 MW buy-back and/or AS Offer up to 100 MW, or b) DAM Energy-Only Offer at resource Settlement Point from 0 MW to 100MW, or c) AS offers ONLY for this resource up to 100 MW. d) DAM Energy-Only Offer at resource Settlement Point X MW and AS offers ONLY for this resource Y MW, X + Y < 100 MW Note: In options b) and c) - Simultaneous scheduling co-optimization of energy and AS for this 100 MW is not possible. ERCOT

  4. DAM clearing behavior with Option a) EOC for resource representing actual Resource output • DAM will optimize commitment status of resource that is already self-committed (no Startup and Minimum energy Costs). No guarantee that EOC and buy-backEnergy Bid will be awarded simultaneously. • As submitted EOC covers the bilaterally traded or self-scheduled energy, the DAM energy awards will include bilaterally traded or self-scheduled energy. To avoid re-selling of bilaterally traded or self-scheduled energy in DAM a buy-back of bilaterally traded or self-scheduled energy is necessary. • AS will be co-optimized with energy within full resource capacity range between LSL and HSL resulting in the possibility of AS being awarded below the bilaterally traded or self-scheduled energy level ERCOT

  5. New approach for DAM dealing with self-committed generation Resource To support simultaneous scheduling and co-optimization of remaining capacity with respect to energy and AS, the following changes in current design are needed: 1) DAM-Commitment Definition a) Resources with Energy Offer Curves (EOC) only need to be treated as self-committed in DAM, i.e. DAM does not make commitment decisions for these resources Issues: • Shall we indicate resource self-commitment status in COP? Current direction from TPTF is NOT to consider COP status in DAM. b) DAM-commitment needs to be defined ONLY if 3PO is cleared Issues: • Is it DAM-commitment when AS offer only is awarded for RegDn or online reserves? • Is it DAM-commitment when 3PO is cleared adjacent to EOC only or AS offers only? ERCOT

  6. New approach for DAM dealing with self-committed generation Resources (cont.) 2)Modeling of Resource Temporal Constraints Temporal constraints need to be modified to incorporate self-committed intervals Issues: • Shall we respect resource temporal constraints for self-committed intervals? • Shall we respect resource temporal constraints when DAM-commitment intervals and self-commitment intervals are adjacent, i.e. if resource has EOC only for some hours and 3PO for some other hours and again AS offers only for some other hours? 3) PTP Obligation Bids are not guaranteed to be awarded and would need to satisfy credit requirements like buy-back DAM-Only Energy Bids ERCOT

  7. New approach for DAM dealing with self-committed generation Resources (cont.) 3) Resource Capacity Constraints for Self-Committed Resources • For inclusive EOC and AS offers En – RegDn ≥ max{LSL; Pfirst} En + RegUp + RRS + online NSpin ≤ min{HSL; Plast} 0 ≤ RegDn + RegUp + RRS + online NSpin ≤ HSL-LSL • For exclusive 3PO/EOC and AS offers If Energy is awarded: max{LSL; Pfirst} ≤ En ≤ min{HSL; Plast} all AS = 0 If AS is awarded: En = 0 0 ≤ RegDn or RegUp or RRS or online NSpin≤ HSL-LSL • For AS offers only: En = 0 0 ≤ RegDn + RegUp + RRS + online NSpin ≤ HSL-LSL ERCOT

  8. New approach for DAM dealing with self-committed generation Resources (cont.) 4) Self-Committed Resources in RUC (DRUC,HRUC) • What should RUC consider as status for self-committed resources (EOC only in DAM) but not DAM-committed as per new definition. Issues: • What happens if COP indicates Offline status? • AS awards are submitted in COP and protected in RUC in standard way • Need to replace resource EOC submitted in DAM with Proxy Price Curve from LSL to HSL and zero Startup and Min Energy Costs ERCOT

  9. New approach for DAM dealing with self-committed generation Resources (cont.) 5) Settlements for Self-Committed Resources • Self-committed resources are NOT (?) eligible for Whole Make Payment • Issues: • How to treat DAM and RUC-commitments adjacent to self-committed intervals? • How to treat EOC only in settlement calculations? ERCOT

  10. Next Steps • Get direction from TPTF to either stay with current design or move forward on new approach • Joint development of new requirements by TPTF Volunteers, ERCOT and Vendor MMS team – difficult issues relate to new temporal constraints modeling and question of what is new definition of DAM commitment. • Update Requirements and related documents and get approval from TPTF • MMS Project to determine schedule and cost estimates and get it approved • MMS Team (ERCOT/Vendor) to implement and test. ERCOT

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