1 / 8

Addressing Pricing Issues in Market Operations: Market Advisory Council Recommendations

Learn about key pricing issues impacting market efficiency and grid reliability, recent market initiatives such as HADL and SGOL, and proposals for additional control action operating reserve. Stay informed on the impacts, savings, and future steps suggested by the Market Advisory Council of the IMO.

kasimir-steele
Download Presentation

Addressing Pricing Issues in Market Operations: Market Advisory Council Recommendations

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. Market Pricing Issues: Update Document ID #: MAC-05-07 Market Advisory Council of the IMO

  2. Agenda • Background • Recently Introduced Initiatives • Hour-Ahead Dispatchable Load (HADL) • Spare Generation On-Line (SGOL) • Control Action Operating Reserve • Proposal for Additional Control Action Operating Reserve • Next Steps Market Advisory Council of the IMO

  3. Background • Three pricing issues • pre-dispatch vs. real-time prices • counter-intuitive prices in times of shortage • size, content and variability of uplift • Contributing factors not only give rise to pricing issues, but also: • reduce market efficiency • jeopardize reliability of IMO-controlled grid Market Advisory Council of the IMO

  4. HADL and SGOL • Hour-Ahead Dispatchable Load • 4 participants; ~240 MW registered • activity limited to date; 25 hours; <30 MW/hr • impacts negligible • Spare Generation On-Line • ~2600 MW registered • activity started in mid-September • net market impacts not quantifiable yet, but appears to be having intended effect Market Advisory Council of the IMO

  5. Control Action Operating Reserve - 1 • MW relief that would be realized if control action taken e.g. voltage reduction • Industry accepted source of Operating Reserve • 200 MW introduced early August • 30 minute Operating Reserve price: 30 $/MW • 10 minute non-synchronized Operating Reserve price: 30.10 $/MW • Energy price: 2000 $/MWh Market Advisory Council of the IMO

  6. Control Action Operating Reserve - 2 • Market Impacts (results to September 22) • Increase Average HOEP: range 0.0 -0.4 $/MWh, relative to 49.2 $/MWh actual average HOEP (SGOL offsets) • IOG Savings: 37 k$ (Total IOG Payments 2.5 M$) • Reliability Impacts • No unreliable operation as a result of scheduling CAOR • Increased risk of unreliable operation judged very small • Displaced Market Operating Reserve • ~0.2% of total scheduled OR Market Advisory Council of the IMO

  7. Control Action Operating Reserve - 3 • Requesting IMO Board approval for introducing additional 200 MW (Oct 3 meeting) • same prices and specifications as first 200 MW • implement mid-October • generally supported by MOSC and Technical Panel • Continue to monitor impacts and report to IMO Board and stakeholders Market Advisory Council of the IMO

  8. Next Steps • Additional Control Action Operating Reserve • Remove 200 MW Supplementary Reserve • 12x ramp rate • Pre-dispatch price bands Market Advisory Council of the IMO

More Related