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Demand Response: An Integrated Resource

Demand Response: An Integrated Resource. John Goodin Lead, Demand Response. CEC Scoping Workshop Load Management Standards March 3, 2008. MRTU Core Market Functions. Day-ahead: Clear bid-in supply against bid-in demand Congestion management Procure operating reserves and regulation

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Demand Response: An Integrated Resource

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  1. Demand Response:An Integrated Resource John Goodin Lead, Demand Response CEC Scoping Workshop Load Management Standards March 3, 2008

  2. MRTU Core Market Functions Day-ahead: • Clear bid-in supply against bid-in demand • Congestion management • Procure operating reserves and regulation • Perform Unit Commitment -to ensure adequate resources are available to meet forecasted demand & reserve requirements in real-time Real Time: • Procure additional operating reserves and regulation, if necessary • Real-time dispatch of resources to meet instantaneous demand • Reliable real-time operation -observe grid constraints, respond to contingencies, comply with WECC/NERC operating criteria

  3. Key Challenge… Meeting the Growing Demand

  4. Key Challenge… Increasing Load Factor (Summer) 50,085 MW 21,661MW Delta July 24, 2006 28,424 MW

  5. Key Challenge… Increasing Load Factor (Winter)

  6. Key Challenge… Integrating Intermittent Resources Integrating & Firming the energy production from this wind park Tehachapi Wind Generation in April – 2005 700 Each Day is a different color… 600 • Day 29 500 • Day 9 400 • Day 5 • Day 26 Megawatts 300 • Average 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

  7. Wind vs. Actual Load on a Typical Hot Day in 2006 Total Wind Generation Installed Capacity = 2,648 MW Wind Generation at Peak CAISO Wind Generation July 2006 Heat Wave 1,200 1,000 800 MW 600 400 200 0 07/19/06 07/20/06 07/20/06 07/21/06 07/21/06 07/22/06 07/22/06 07/23/06 07/23/06 07/24/06 07/17/06 07/17/06 07/18/06 07/18/06 07/19/06 07/24/06 07/16/06 07/25/06 07/25/06 07/26/06 07/26/06 Wind Generation Wind Generation at Peak

  8. Demand Response Working Groups • Five Working Groups Formed to Help Shape the Future Model and Integration of Demand Response Resources • Vision for Demand Resources- CPUC lead • DR Participation in MRTU Release 1- CAISO lead • DR Participation in MRTU Release 1A- CAISO lead • DR Product Specification- CEC lead • Appropriate DR Infrastructure- CEC lead

  9. Example…the Need for Integration Under MRTU: • Expected Emergency Triggered DR Amount: 1,700 MW • Demand Forecast: 45,000 MW • DA Forward Market Clears: 43,000 MW • CAISO Commits 2,000 MW of additional capacity to be available • The CAISO did not commit only 300 MWs (45,000 -1,700 = 43,300), the CAISO must plan to meet all the load, even the non-firm load that may be available for interruption if a system emergency is declared. The CAISO does not plan the system to be in an emergency state so that it can have access to emergency triggered resources.

  10. Retail Programs to Wholesale Market Products Retail Programs Wholesale Products • Wholesale Market Products: • Day-ahead Market • Energy: Price-Responsive Demand • Ancillary Services: Non-spin, Spin & Regulation • Residual Unit Commitment Capacity • Real-time Market • Energy Market- Balancing Energy • Ancillary Services- Non-spin, Spin & Regulation

  11. Questions? Contact Info: John Goodin (916) 608-7154 jgoodin@caiso.com

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