basic training program · basic training program . module 2: fundamentals of the nodal market ....
TRANSCRIPT
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ERCOT MARKET EDUCATION
Basic Training Program
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Module 2: Fundamentals of the Nodal
Market
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Module Overview
Slide 3
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Upon completion of this module, you will be able to:
• Identify major components of the ERCOT
Wholesale Market, including:
– Day-Ahead Market
– Reliability Unit Commitment
– Real-Time Operations
• Describe other processes that support the ERCOT
Wholesale Market:
– Registration
– Network Modeling
– Settlements
Module Objectives
Slide 4
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ERCOT Wholesale Market
Slide 5
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Overview: Registration
Registration
Slide 6
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Registration Basics
All Market Participants are
required to register and sign a
Standard Form Market
Participant Agreement to
participate in the ERCOT market.
Slide 7
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Roles of Registrants
Each Market Participant
must register with
ERCOT by submitting
the applicable
registration application.
Slide 8
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Roles of Registrants
Next, registrants
demonstrate they are
qualified to perform the
functions they’ve
registered for.
Slide 9
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Requirements for QSEs with Resources
QSEs must complete Qualification tests
• User Interface/API
• 24x7 Scheduling Center
• Telemetry Connectivity
• Ancillary Services as needed
Slide 10
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Requirements for QSEs with Resources
Resource Entities must complete a Resource Asset
Registration Form for each Resource they own.
• Available at http://www.ercot.com/services/rq/re/index
• Subject to Network Modeling timeline
Slide 11
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Requirements for QSEs and CRR Account Holders
ERCOT settles financially with QSEs and CRR
Account Holders. QSEs and CRR Account Holders
must satisfy ERCOT’s creditworthiness
requirements.
Slide 12
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Additional Registration Information
Registration Information
Additional information is available at:
http://www.ercot.com/services/rq/index.html
Slide 13
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Overview: Network Modeling
Network Modeling
Slide 14
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Network Model Management System (NMMS)
• Produces a Network Operations Model
• Provides model information for all other network
models
• Provides a single repository for model
information and management of model changes
Network Model Management System
Slide 15
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Network Operations Model Operational Impacts
• Real-Time Dispatch
• Reliability Unit Commitment
• Used to produce other Network Models
Network Operations Model
Slide 16
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Network Operations Model Financial Impacts
• Real-Time Locational Marginal Prices
• Day-Ahead Market
• Used to produce other Network Models
Network Operations Model
Slide 17
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What does Network Operations Model reflect?
• Transmission Elements including Resources
• Connectivity
Network Operations Model
Slide 18
Electrical Busses
Transmission Lines
Circuit Breakers
Transformers
Disconnects
Reactive Devices
Generation Resources
Load Resources
Protection Schemes
Telemetry mapping
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Who is responsible for providing modeling input?
• TSPs model Transmission facility changes
• Resource Entities provide Resource changes
• Model data submitted via NOMCR process
Network Operations Model
Network Operations Model Change Requests (NOMCR)
are the mechanisms used to submit modeling changes.
Slide 19
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Network Operations Model
Network Operations Model Change Requests
(NOMCR)
• Must be submitted three months in advance
• Schedule outlined in Protocols
Slide 20
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Planning Models:
• Project long-term system growth
• Identify Transmission or Generation needs
• Released to the Market every October
Network Planning Model
Planning Model
updates must be
coordinated with
Operations Model
Slide 21
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CRR Network Models
• Based on Operations Model
• Used for CRR Auction & Allocation processes
• Released to the Market before each Auction
CRR Network Model
Slide 22
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Overview: CRR Auction
CRR
Auction
Slide 23
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Congestion Revenue Rights
What is a Congestion Revenue Right (CRR)?
• A financial instrument that may be used as a
hedge against congestion costs.
More information available at:
http://www.ercot.com/services/training
Slide 24
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Overview: Day-Ahead Operations
Day-Ahead
Market
Slide 25
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Day-Ahead Market
Day-Ahead Market (DAM)
• Daily, “co-optimized” process
• Voluntary participation
• Financially binding
Slide 26
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Day-Ahead Market
Day-Ahead Market Co-Optimization
Evaluates Offers & bids to ensure best overall cost
Slide 27
Energy Awards
PTP Obligation
Awards
Ancillary
Service Awards
Energy Bids &
Offers
PTP Obligation
Bids
Ancillary
Service Offers
Co-
Optimization
Engine
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Overview: Reliability Unit Commitment
Reliability Unit
Commitment
Slide 28
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Day-Ahead Reliability Unit Commitment (DRUC)
Fundamentals
• One instance of RUC
• Ensures reliability - physically and financially
binding
• Executed daily after the Day-Ahead Market
Day-Ahead Reliability Unit Commitment
Slide 29
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Hourly Reliability Unit Commitment (HRUC)
Fundamentals
• Another instance of RUC
• Ensures reliability - physically and financially
binding
• Executed at least hourly
Hourly Reliability Unit Commitment
Slide 30
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Overview: Adjustment Period
Adjustment
Period
Slide 31
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QSE Activities during the Adjustment Period
• Submit offers, trades, schedules
• Request Resource
decommitments
Adjustment Period
Offers
Trades
Schedules
Slide 32
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Supplemental Ancillary Service Market
Supplemental Ancillary Services Market (SASM)
• If insufficient AS capacity, ERCOT executes a
SASM during the Adjustment Period
Slide 33
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Overview: Real-Time Operations
Real-Time
Operations
Slide 34
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Purpose of Real-Time Operations
• Match generation with demand
• Operate transmission system within established limits
Slide 35
Real-Time Operations
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Real-Time Operations
Process used to determine optimal dispatch:
• Security Constrained Economic Dispatch (SCED)
Every 5 minutes, SCED calculates:
• Resource-specific Base Points
• Locational Marginal Prices
Slide 36
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Load Frequency Control (LFC)
• Matches generation with demand
• Responds to frequency deviations
• Deploys Regulation Reserve Service
Frequency (Hz)
6 0. 0000
Real-Time Operations
5 minutes 5 minutes
Base point
Base point
Base point
Slide 37
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Overview: Settlements
Settlement
Slide 38
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Day-Ahead Settlement
• Daily statements include all Payments due and
Charges incurred
• Statements posted to MIS Certified Area for
applicable Market Participant
Day-Ahead Settlements
Slide 39
When are Day-Ahead Market Statements available?
Operating Day
Day 2 Day Ahead
DAM Statement
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Real-Time Settlements
Real-Time Settlement
• Daily statements include all Payments due and
Charges incurred
• Statements posted to MIS Certified Area for
applicable Market Participant
When are Real-Time Statements available?
Day 180 Operating Day
Day 5
Initial Statement
Final Statement
True-Up Statement
Day 55
Slide 40
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Operating Day
Day 5 Day 6
ERCOT Issues DAM
Statement & Invoice Payment Due
(to ERCOT)
Payment Due (to Market Participant)
Day 2
1700 1700
Day Ahead
Settlement Invoices
Single Daily Settlement Invoice
• Daily invoices include
• DAM statements
• RTM statements
Slide 41
Invoice Day + 2
Invoice Day + 3
ERCOT Issues Invoice • DAM • RTM initial • RTM final • RTM True-Up
Payment Due (to ERCOT)
Payment Due (to Market Participant)
Invoice Day
1700 1700
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Settlement Pricing
Settlement Point Prices:
• Resource Nodes
• Load Zones
• Hubs
Posted on MIS
• LMPs
• Settlement Point Prices
Resource Nodes
Load Zones
Hubs
Slide 42
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Settlement Pricing
Slide 43
ERCOT is an energy-only market
… but what does that mean?
In ERCOT, these costs must be
recovered with revenues from
energy production and
operating reserves.
It’s all about the recovery of costs to build generation.
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Settlement Pricing
Slide 44
Energy Pricing must support investment in new generation
Scarcity pricing – higher
energy prices during periods
where energy reserves are
scarce
ERCOT is an energy-only market
… but what does that mean?
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Overview: Market Information System
Market Information
System (MIS)
Slide 45
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Market Information System
Three MIS Security Levels
• Information accessible by the
general public
• Also available on ERCOT.com
• Restricted access to protected
information
• Accessible by applicable Entities
• Requires digital certificate
• Information accessible only by
individual Market Participant
• Requires digital certificate
Slide 46
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Module Summary
You have learned about:
• The major components of the ERCOT
Wholesale Market
• Other processes that support the ERCOT
Wholesale Market
Slide 47
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Module Conclusion