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Ancillary Services and SCED Jeff Gilbertson Market Analyst Congestion Management Working Group PowerPoint Presentation
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Ancillary Services and SCED Jeff Gilbertson Market Analyst Congestion Management Working Group

Ancillary Services and SCED Jeff Gilbertson Market Analyst Congestion Management Working Group

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Ancillary Services and SCED Jeff Gilbertson Market Analyst Congestion Management Working Group

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  1. Ancillary Services and SCED Jeff Gilbertson Market Analyst Congestion Management Working Group 9/4/2013

  2. Background • “Real-Time Mitigation Rules and Creation of a Real-Time Constraint Competitiveness Test” (NPRR 520) was approved by the ERCOT Board on 3/19/2013 • The following slides explain the use of Ancillary Service in Security Constrained Economic Dispatch (SCED) as directed by NPRR 520

  3. Ancillary Service use in SCED • Regulation Up/Down • Deployed outside of SCED by Load Frequency Control (LFC) • Energy Offer Curve (EOC) required to have price floor of System-Wide Offer Cap (SWCAP) for Reg-Up • Responsive Reserve Service • Generation Resources deployed by Energy and Market Management System (EMMS) • SCED immediately triggered by EMMS after deployment • Responsive Reserve Service (RRS) MW available to SCED after Resources update Responsive Reserve Schedule (RRSC) telemetry which raises High Ancillary Service Limit (HASL) • EOC required to have price floor of SWCAP • Non-Spinning Reserve Service • Online Non-Spin is always available to SCED for economic deployment (i.e. HASL is always raised above Non-Spin MW) • Online Non-Spin EOC required to have price floor of $120 • Offline Non-Spin EOC required to have price floor of $180

  4. SCED Review • SCED Step One • Only competitive constraints are observed • No Energy Offer Curves are mitigated • “Reference Locational Marginal Prices (LMPs)” are output and provide price signals to Resources to serve load and solve competitive constraints – based on unmitigated offers • SCED Step Two • Competitive and non-competitive constraints are observed • Energy Offer Curves are mitigated only when: • A non-competitive constraint is present, and • Decision Making Entity of resource has a high % of Element Competitiveness Index (ECI) Effective Capacity or is a pivotal player; and • Resource has a significant shift factor against constraint • EOC is mitigated to higher of the Reference LMP from Step One or Verifiable/Generic cost curve (Mitigated Offer Cap)

  5. Energy Offer Curve – normal conditions $ AS MW AS Floor Price Mitigated Offer Cap LMP Reference LMP MW BP LSL HSL • Low “Reference LMP” indicates that resource is not needed to meet system demand (Ancillary Service (AS) deployment not needed) • LMP only has to be at or above Mitigated Offer Cap when Resource is fully needed to resolve Congestion • Mitigation prevents Qualified Scheduling Entity (QSE) from exercising market power (force a high LMP)

  6. Energy Offer Curve – scarcity conditions $ AS MW Reference LMP AS Floor Price Mitigated Offer Cap LMP MW BP LSL HSL • High “Reference LMP” indicates that the Resource may be needed to meet system demand • Resource is not mitigated; LMP will be at or above AS floor price if Resource AS deployment is needed to meet system demand

  7. Ancillary Services use in SCED • Summary • LMP of Resource will be consistent with Mitigated Offer Curve when Resource is needed to resolve a non-competitive constraint and could otherwise be used to exercise market power • LMP of Resource will be at AS Floor or higher when AS deployment is needed to meet system demand