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Enhanced Proxy Demand Resource: ESDER 3 PDR-LSR

Enhanced Proxy Demand Resource: ESDER 3 PDR-LSR. Eric Kim Infrastructure and Regulatory Policy Specialist. CAISO PDR-LSR Design and Load S hift D efinition. CAISO is designing PDR-LSR as a resource that can absorb, store, and use energy productively at a different time.

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Enhanced Proxy Demand Resource: ESDER 3 PDR-LSR

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  1. Enhanced Proxy Demand Resource: ESDER 3 PDR-LSR Eric Kim Infrastructure and Regulatory Policy Specialist

  2. CAISO PDR-LSR Design and Load Shift Definition • CAISO is designing PDR-LSR as a resource that can absorb, store, and use energy productively at a different time. • Design will prevent incentivizing wasteful and unproductive consumption of energy. • Key requirement – energy storage device must be submetered • Ability to directly measure energy charged and discharged

  3. Key Features • PDR-LSR defined for energy consumed at one time and released at another time • Requires direct metering of BTM energy storage • Resource pays full retail rate for all charging energy • Two resource IDs: • For load curtailment • Maintains RA capacity eligibility • Non-exporting rule applies • For load consumption • Ineligible for RA capacity and ancillary services • Ability to bid a negative cost for energy services

  4. Bidding and Energy services Bidding • Both PDR-LSR bidding options must be uniform • 15-minute or 5-minute dispatchable • Will be eligible for bid cost recovery • PDR-can bid at or above $0 • PDR-can bid from -$150 to < $0 Energy Services • Energy • Flexible Ramping Product • Imbalance Reserve Product (DAM enhancements initiative) • Ancillary Services (only for curtailment)

  5. PDR-LSR Performance Evaluation Methodology • Will measure and net out “typical use” to define incremental value of load shift provided • The performance methodology was referenced as MGO-Shift and MEC in revised straw proposal but will now be renamed to: • LSR-curtailment • LSR-consumption

  6. PDR-LSR “typical use” calculations • Typical Use Curtailment () : 10-in-10 CLB, using 10 non-event hours including both consumption and curtailment but only accept a value that is at or above 0. • Typical Use Consumption () : 10-in-10 CLB, using 10 non-event hours including both consumption and curtailment but only accept a value that is at or below 0.

  7. Key Features – Considerations • PDR-LSR defined for energy consumed at one time and released at another time Storage of heat or cooling not contemplated as load shift. • Requires direct metering of BTM energy storage How do we measure • Method for metering of load consuming device directly or indirectly • Performance methodology for load shift consumption of a load consuming device • Resource pays full retail rate for all charging energy Should resource be charged retail rate with provision of wholesale consumption services?

  8. Key Features – Considerations (Cont.) • Two resource IDs: • For load curtailment • Maintains RA capacity eligibility • Non-exporting rule applies Should exporting be allowed? • For load consumption • Ineligible for RA capacity and ancillary services • Ability to bid a negative cost for energy services Should just load consumption be allowed? If so, how to prevent incentivizing wasteful and unproductive consumption? Ancillary services (except for regulation) is allowed for curtailment. Should regulation be a potential service?

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