Reliability Demand Response Product February 25, 2011 John Goodin Lead, Demand Response Market...
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Transcript of Reliability Demand Response Product February 25, 2011 John Goodin Lead, Demand Response Market...
Reliability Demand Response Product February 25, 2011
John GoodinLead, Demand ResponseMarket Design & Regulatory Policy
Jill PowersManagerEnergy Measurement, Acquisition and Analysis
Today’s Discussion
• Why the Reliability Demand Response Product (RDRP)
• Product Foundation- Proxy Demand Resource Product
• What is RDRP and How is it being Implemented?
Slide 2
WHY RDRP?Today’s Discussion
RDRP addresses long standing concerns with emergency demand response programs.
• Emergency demand response programs can only be utilized under extreme conditions but account for a significant amount of resource adequacy requirements (nearly 4%).
• Dispatching these resources outside of ISO markets and systems can suppress price signals.
Slide 4
CPUC initiated a settlement proceeding as part of its demand response efforts to address these concerns.
The settlement resolved these concerns and defined requirements for reliability demand response product.
• Limits the quantity that can satisfy the resource adequacy requirement to 2% of the ISO all-time system peak.
– Transitions from the current ˜ 4% to the 2% limit as follows:
• Allows emergency resources to be available at a Warning Notice in advance of a Stage 1 or Stage 2 emergency.
Slide 5
RA Qualifying Emergency Demand Response
2012 2013 2014 & Beyond
3% 2.5% 2%
RDRP integrates emergency DR programs into the ISO market.
• Product can be offered by any demand response provider
• Eligible to set the locational marginal price
• Like a generator, dispatched by location and MW quantity
• Enables economic energy bids in the day-ahead
• In real-time, bids limited to ISO bid cap and 95% of bid cap
• Sets availability limits of 15 times and/or 48 hours per term
Slide 6
RDRP helps complete package of solutions for wholesale market demand response.
Slide 7
PRODUCT FOUNDATION-PROXY DEMAND RESOURCE
Today’s Discussion
Participating Load ProductLong-standing CAISO DR Model
Slide 9
DLAP
• Load Serving Entity (LSE) and Demand Response Provider (DRP) act as single entity
• PL “Load” scheduled and settled at Custom LAP (CLAP)
• “Pseudo gen” used to offer A/S capacity and RT energy resource at CLAP
• PL load and pseudo generation resources treated independently in the DA scheduling process
PL(CLAP)
LSE(Default LAP)
Didn’t satisfy FERC Order 719 that enabled the LSE and DRP to be distinct entities
CAISO Needed New Demand Response Solutions
• Integrate DR into the CAISO Market– Enable easier integration of retail DR programs– Increase DR participation in the wholesale markets
• Provide a Model that Enabled “Direct Participation”– Allow Demand Response Provider (DRP) to participate
independent of the load-serving entity (LSE)– Comparable treatment allowing Day-Ahead, Real-Time
Energy and Ancillary Service (AS) market participation– Enable DR all hours/days of the year
Slide 10
Proxy Demand Resource (PDR)New Demand Response model Launched August 10, 2010
• Load serving entities (LSE) load continues to forecast bid at the DLAP.
• Demand response provider (DRP) bids the demand response portion of the load into the ISO markets as a separately defined proxy demand resource (pseudo generator).
• The LSE and the DRP could be the same entity or two separate entities.
Slide 11
DRPPDR
LSEDLAP
Proxy Demand Resource
Provides Direct Participation and Simplification of Forecasting/Scheduling
Proxy Demand Resource Implementation Elements
• CAISO Agreement• Establish Resources• Registration• Market Participation• Baseline
– Measurement of PDR Performance• Settlement
– Demand Response Provider– Load Serving Entity
Slide 12
Slide 13
Proxy Demand Resource ImplementationHigh-Level Process Integration
New DR System to Support PDRLeveraging UISOL’s DRBizNet Framework
14
Manage PDR/RDRP registration process
High-Level PDR Resource Registration Process Flow with DRS Enhanced LSE /UDC Review Process Functionality
CAISO
CAISO
UDC
UDC
LSELSE
DRP
DRP
YES
NO
YES
NO
UDC Reviews Registration Detailwith opportunity to
provide review comments
Additional information
Needed by CAISO from DRP
CAISO Deny
LSE Reviews Registration Detailwith opportunity to
provide review comments
Provide PDR Resource ID
to DRP
Update Master File & notify DRP of Effective Date
Auto Complete Review
CAISO Approves
CAISO Review
Review Complete before 10
business days
DRP begins Baseline Meter Data Submittal
DRP submits Registration for
Review
DRP begins RDT Process
DRP Enters/Edits
Resource Registration
Data
Begin Registration
All events are available on
the DRS event search screen
Track underlying load locations
PDR/RDRP interval meter data management
Consolidated PDR/RDRP events (outages, awards, dispatches)
Automated baseline calculations
Performance Measurement calculations and Default Load Aggregation (DLA) management
Market
15
Market Participation
DailyMeter Data
Submission for PDR or DA
RDRP; after the fact for RT only
RDRP resources
BaselinePerformance Measurement
Default Load Adjustment
Settlement
Post-Market Activities
PDR/RDRP ProcessesHigh Level Sequential Activity Flow
Secure Agreements
Registration Process
Begin: Provideend use load location info
End: ReceiveMarket Resource ID
for PDR
AccessDRS
DemandResponse System
Submit 45 days of historic meter dataEstablishing PDR
Baseline
Pre-Market Activities
Slide 16
Agreements
• Demand Response Provider establishes agreements prior to participating in the ISO Wholesale Energy Markets– Agreement with Load Serving Entity (LSE) – Agreement with Utility Distribution Company (UDC)– Agreement with ISO (DRP and SC)
“Above the Line” – Within the CAISO
“Below the Line” – Outside the CAISO
Wholesale Market Participation as PDR or RDRPSettlement of PDR or RDRP Performance with DRPSettlement of DLAP Load incorporating DLA with LSE
Any Other Contractual Arrangements Between the DRP & LSE
Slide 17
– A Registration is composed of one or more locations in a single Sub-Lap
– Location refers to a retail customer location uniquely identified by a UDC account number
– LSE and UDC have opportunity to review Registration information through DR System and provide CAISO with input on its accuracy
– CAISO makes final approval of registration
Manage Registration Process
DRP creates Registrations to establish a PDR or RDR resource
DRP uses the DR System to submit service locations and registration information for LSE/UDC review and ISO approval.
PDR/RDRR Constrained to Single Sub-LAP
Sub-LAPs
Page 18
• 23 Sub-LAPs within CAISO Control Area
• Low to no congestion between PNodes within Sub-LAP
• Historically, congestion interfaces between Sub-LAPs
WHAT IS RDRP AND HOW IS IT BEING IMPLEMENTED?
Today’s Discussion
RDRP Qualifications
• Availability
– All year/24x7, as resource is available
– Summer and winter terms
– 15 events and/or 48 hours/per term
– Min run time ≤ 1 hour and max run time ≥ 4 hours
– Advance notice + ramp to max curtailment must be ≤ 40 minutes
• RDRP resources:
– Min load reduction (single or aggregate) of 0.5 MW
– Contained within a sub-LAP
Slide 20
RDRP Qualifications (cont’d)
• Dispatch– Real-time: based on emergency operating procedures
• Operating reserve shortage (ISO market/dispatch)• CAISO transmission emergency (ISO market/dispatch)• Local T&D emergency (utility dispatch/ISO notification)
– Marginal market clearing and dispatch– Discrete or “block” dispatch option available
•Address “firm service level” interruptible customers• Metering
– Hourly interval data for Day-ahead participation– Up to 15 minute interval ‘reads” for real-time participation
•Must be provided to ISO as 5-minute SQMD
Slide 21
RDRP Market Participation
• RDRR can bid into the following markets:– Day-Ahead energy market (economic bids)
• Marginal clearing only in day-ahead– Real-Time market (reliability dispatch only)
• Marginal Dispatch, or• Discrete dispatch option available in real-time
– No A/S or Residual Unit Commitment participation
Slide 22
Market Systems used for bidding as well as for collecting market results and receiving dispatch instructions in Real-Time.
RDR Resource (RDRR) ModelingMarket Systems and Applications
RDRR/PDR modeled in the network as a generator
Slide 23
Pre-defined RDRR in Sub-LAP
• Pre-modeled and pre-assigned a Generation Distribution Factor (GDF) by the CAISO
Custom RDRR in Sub-LAP
• DRP submits for a customized RDRR by selecting buses and defining the GDF to the selected buses
Baseline Methodology
• RDRR Meter Data Submission Process – Day-Ahead participation- requires daily submission
• Including initial 45 days of historical usage for establishing initial baseline data
– Real-time participation only- requires submission of all current and historic meter data after the event by T+5B
• Performance of the RDRR is determined using a customer baseline calculation– 10-in-10 non event day baseline methodology– Rules for selection of baseline days – Symmetrical 20% multiplicative adjustment
Slide 24
DRS used for Meter Data Submission, Baseline Calculations, DR Performance Measurement and DLA
Settlement Process
• DRS source of DR Performance Measurement used by SaMC for settlement of DRP’s RDR resources
• Default Load Adjustment provided by DRS to SaMC for settlement of LSE’s DLAP Load
• RDRR settled as a proxy generator– PDR paid at Day-Ahead or Real-Time LMP
• Market Participants receive a settlement statement 7 business days after the trade date
Slide 25
Simple Settlement Example with Default Load Adjustment
Slide 26
Settlement Assumptions:
RDRR Performance MeasurementAdj Baseline – Actual = 2MW
2 MWDLA2 MW
LSE Adjusted Meter Quantity 2 MW DLA + 8 MW Actual
= 10 MW
8 MW
Add RDRRPerformance to LSE
DLAP
LSE paid for 0 MW (Scheduled – Actual)
DRP paid for 2 MW (Expected = Performed)
No Double Payment for Demand Response
LSE DA Schedule = 10MWRDRR DA Award = 2MW
DLA
ACTUAL
Slide 27
RDRP to be Implemented Spring 2012PDR experiences that carry over to RDRP implementation
• Multiple User Accessibility to DRS
• Real Time Adjustment to DR Performance Measurement– Conversion of “Hourly Baseline DR Performance Measurement” to a 10
minute performance measurement for RT market activity
Challenges – Candid Comments from CAISO Implementation Team
Request greater visibility of calculation information
Updating API to allow greater upload/download functionality
DRS Enhancements – Always wanting more…
Request for more/different baseline types; part of CAISO Tariff
Challenge to assess need and best fit
Baseline Methodology – Desire for more options
Contact Information
John GoodinLead, Demand Response
Market Design & Regulatory Policy(916) 608-7154
Jill PowersManager, Energy Measurement Acquisition & Analysis
Market Services(916) 608-5781
Slide 28