1 / 4

Addition of the Holistic Shadow Price Cap Methodology

ERCOT Version 3.0 Setting the Shadow Price Caps and Power Balance Penalty in security Constrained Economic Dispatch. Addition of the Holistic Shadow Price Cap Methodology. ERCOT Clarifications to the TAC Approved Methodology Description.

jacobhall
Download Presentation

Addition of the Holistic Shadow Price Cap Methodology

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ERCOT Version 3.0 Setting the Shadow Price Caps and Power Balance Penalty in security Constrained Economic Dispatch Addition of the Holistic Shadow Price Cap Methodology

  2. ERCOT Clarifications to the TAC Approved Methodology Description • Comment 4 – ERCOT understands that if the Shadow Price Cap is reset on Jan 1, it will never be less than $2,000 /MWh and could be higher depending on the value of Generation Resource C’s Mitigated Offer Cap and shift factor impact on the irresolvable constraint. • Comment 5 - ERCOT proposes to insert the absolute value function to assure a positive dollar valuation for the purpose of the comparison. • Comment 6 - ERCOT suggests that the Holistic Shadow Price Cap Methodology be applied to competitive constraints that become non-competitive under Protocol 3.19.2 . • ERCOT proposes to ignore a similar daily reclassification of a constraint from competitive to non-competitive made in accordance with Protocol Section 3.10.3.

  3. ERCOT Clarifications to the TAC Approved Methodology Description • Comment 7 - ERCOT assumes that the holistic Shadow Price Cap does not apply if the constraint is no longer determined to be non‑competitive in accordance with Protocol Section 3.19. • Comment 8 - ERCOTwill review the application of the holistic Shadow Price Caps for the various SCED constraints during December and reset these constraint caps as required to become effective in the month of January. • The intent of this review is to consider all of the holistic Shadow Price Caps applied through December 31 of the current year and revise these caps, as needed, to be effective in January of the new year.

  4. ERCOT Clarifications to the TAC Approved Methodology Description • Comment 10 - ERCOT proposes to substitute the FIP defined in Protocol Section 2 for “Houston Ship Channel natural gas price”. • This assures consistency with all other Protocol requirements related to the FIP. • Comment 11 - ERCOT proposes that resetting the net margin value to zero on January 1 of each year is consistent with the TAC approved guidance to reset the Shadow Price Cap for each SCED irresolvable non-competitive constraint to the minimum of E and F (as described in the procedure) on January 1 of each year.

More Related