Overview of the GenerationOverview of the Generation--Transmission MaximizationTransmission Maximization

(GTMax) Model(GTMax) Model

The Premier Analysis ToolThe Premier Analysis Toolfor Deregulatedfor Deregulated

Electricity MarketsElectricity Markets

Argonne National LaboratoryArgonne National LaboratoryCenter for Energy, Environmental, andCenter for Energy, Environmental, andEconomic Systems AnalysisEconomic Systems Analysis

GenerationGeneration

TransmissionTransmission

DistributionDistribution

PastPastNatural MonopolyNatural Monopoly

Ver

tica

lly I

nteg

rate

dV

erti

cally

Int

egra

ted

PresentPresent

TransitionTransitionPhasePhase

FutureFutureOpen MarketOpen Market

TransmissionTransmission

DistributionDistribution

GenerationGeneration

Unb

undl

edU

nbun

dled

Around the World, Deregulation is Fundamentally Changing the Way Electricity Markets Function

Customers

The Traditional Utility Company

The Traditional Markets Are Dominated by Single, Vertically-Integrated Energy Companies

LoadAggregators

The New Deregulated Energy Marketplace Is Far More Complex and Has Many More Players

CustomersGeneration Companies

Brokers

LDC

LDC

PX

ISO

Argonne Developed GTMax to Study the Complex Marketing and Operational Issues in Today’s

Deregulated Power Markets

● Generation Companies, Independent Power Producers, and Power Merchants

● Transmission Companies, Independent System Operators, and Power Exchanges

● Government, Regulatory, and Oversight Bodies

GTMax Can be Used by Different Market Agents in Support of their Analytical Needs

Generation Companies, Independent Power Producers, and Power Merchants

● Use GTMax to estimate how much power each unit will generate and how much power they can sell in each hour at what price

● Use GTMax to estimate purchases and sales from long-term firm contracts and IPP agreements

● Use GTMax to study if their investment in power or transmission assets will yield an attractive return

● Use GTMax to develop a sound market strategy - when should they buy and/or sell power in the spot market

Transmission Companies, Independent System Operators, and Power Exchanges

● Use GTMax to estimate the locational hourly market clearing price for energy at different points in the network

● Use GTMax to estimate the projected available transmission capability on individual links or user-specified paths each hour in the region for posting on OASIS systems

● Use GTMax to determine the optimal path of contractual power flows

● Use GTMax to identify operational and network bottlenecks and the marginal value of relieving system obligations and constraints

● Use GTMax to conduct screening and siting analyses for new transmission lines

Government Agencies and Regulatoryor Oversight Bodies

● Use GTMax to analyze different bidding behaviors or strategies and game playing and the impacts on the markets (market power)

● Use GTMax to study open market policies

● Use GTMax to simulate the effects of environmental and institutional limits on power plant operations and compute compliance costs

● Use GTMax to analyze the value of demand-side management and distributed generation resources

● Maximize the economic or financial value of an electric utility system within physical and institutional operating constraints

● Electric utility system– Hydro and thermal power plants– Firm purchase and sales contracts– Spot market interconnections– Customers (electricity demand)– Transmission and distribution systems

● Physical and institutional constraints– Capacity – Technical minimum– Ramping limits (change in operations over time)– Reservoir limits

Spot Markets & Firm Contracts AreDriving the System

System Dispatch& Plant Operations

Must Respond to the Market

GTMax Objective

GTMax Balances Supply & Demand (Simplified Example)

0

10

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30

40

50

60

70

80

90

100

0 100 200 300 400 500 600 700Demand [MWh]

Mar

ket C

lear

ing

Pric

e [$

/MW

h]

SupplyDemand

Generators are LoadedAccording to Marginal Production

Costs or MARKET BID PRICE

High Prices Result inDemand Curtailments

Due to transmission congestion this point must be determined

for each zoneor region

Market ClearingPrice

Purchase & Sales

Purchase Purchase & Sales & Sales

ContractualPower FlowsContractualContractualPower FlowsPower Flows

Reservoir Operations Reservoir Reservoir

Operations Operations Unit

Commitments Unit Unit

Commitments Commitments Revenues &Expenses

Revenues &Revenues &Expenses Expenses

Value of Energy& Energy SavingsValue of EnergyValue of Energy

& Energy Savings& Energy SavingsHourly

Generation Hourly Hourly

Generation Generation

GTMaxModel

GTMaxGTMaxModelModel

OperationalRestrictionsOperationalOperationalRestrictionsRestrictions

Hydro & ThermalResources

Hydro & ThermalHydro & ThermalResourcesResources

Spot MarketPrices

Spot MarketSpot MarketPricesPrices

Hydro CascadeSpecificationsHydro CascadeHydro CascadeSpecificationsSpecifications

Firm Contracts

Firm Firm ContractsContracts

Transmission& Distribution

System

TransmissionTransmission& Distribution& Distribution

SystemSystemDemand &

CurtailmentsDemand & Demand &

CurtailmentsCurtailments

GTMax Operates at a One Hour Time-Stepand Takes into Account Many Input Variables

GENERATION

TRANSMISSION

DISTRIBUTION

SubStation

DemandCenters

Hydro

FirmContract

Interchange

Thermal

SpotMarket

GTMax Uses a Network of Nodes & Links to Represent a Power System

● Nodes– Thermal & hydro power plant– Firm purchases & sales contracts– Spot market interconnections– Power interchange points– Heat production– Electricity & heat demand

● Links– Transmission lines– River systems– Heat flows

There are Several Types of SupplyResources in the Model

● Thermal units● Hydro power plants (limited energy)

– Run-of-river– Storage– Pumped storage– Hydro plants can be specified in a cascade – Water is spilled (non-power release) under some conditions

● Long-term firm purchase contracts & Independent Power Producer (IPP) contracts

● Spot market purchases● Combined Heat & Power Plants

GTMax Has Detailed Thermal & HydroSystem Representations

● Power plant or unit capacity● Marginal production cost or bid price by block● Total energy release in a week period● Daily minimum & maximum energy ● Change in daily energy production● Minimum hourly output ● Maximum hourly output● Hourly up & down ramp rate restrictions

– Change in generation from one hour to the next

● Daily up & down ramp rate restrictions– Change in generation over a 24 hour period

The GTMax Hydropower Dispatch is also Constrained by Reservoir Limitations

● Maximum reservoir elevation level● Minimum reservoir elevation level● Daily reservoir elevation change● Change over a 2-day & 3-day period● Elevation levels are functions of:

– Initial reservoir conditions– Hourly up-stream reservoir releases– Side flows– Pumped water from a lower reservoir– Hourly reservoir releases– Water extracted for irrigation of other uses– Elevation change per volume of water released

Supply Resources Satisfy Different Types of Demands

● Service territory load centers

● Firm contract loads (if any)

● Spot market demands (if economical)

● Heat demands

● Note: Additional electricity mustbe produced because of T&D losses

PinnaclePeak

GlenCanyon 4 Corners

CraigHayden

Rifle

PonchaMidway/PuebloMontrose

CascadeSalida

AultArcher

Bonanza

Vernal

Fontenelle

Flaming Gorge

Uintah WCD

NewMexico

RioGrande

The Transmission System LinksDifferent Types of Activities

Exchange

Exchange

SalesContract

PurchaseContract

Demand/Customers

ThermalGeneration

HydroGeneration

SouthernSpot Market

NorthernSpot Market

Palo VerdeSpot Market

Overlay of a U.S. UtilitySystem on a Transmission

System Map

Hydro & Thermal PlantsDemand

Spot Market Delivery Point

Transmission

Substation

Hydro Cascade

Pumped Storage

GTMax Employs a User-Friendly GeographicalInformation System (GIS) Interface

Supply

Sub-Station

Demand

GenerationDistribution

Spot Market

Firm Contract

Exchange

Exchange

250 MW250 M

W

GTMax Accounts for Composite Transfer Capability (The Total Is Less Than The Sum of The Parts)

Vernal

Fontenelle

Flaming Gorge

HaydenAult/Archer

NorthernSpot Market

(280 MW)

(115 MW)

West Slope/Tri-State

(250 MW)

NorthernUtah

Bonanza

Moon Lake & CWDC

(140 M

W)

(48 MW

)

Bears Ears& Craig

(218 MW)

(379 MW) SRP Exchange (North - In)

RifleUpperMolina

LowerMolina

(250 MW

)

Montrose

Curecanti

BlueMesa

Mesa/Gunnison/Salida

(250 MW

)

(127

.5 MW

)

(100 MW)

Crystal

Morrow Point

(100 MW)

TOT5

(721 MW

)

PonchaMidway/PuebloLost Canyon

SRP Exchange (South - In)

(250 MW)

(250 MW)

(150 MW)

(170 MW)

(100 MW)

4 CornersAztec

Farmington

New Mexico

Rio Grande

SouthernSpot Market

(247 MW)

Kayenta/NTUA

Glen Canyon

( 400 MW)( 350 MW)

( 400 MW)

( 350 MW)

(300 MW

)

Page/Garkane/Kanab

SouthernUtah

PinnaclePeak

SRP Exchange (South - Out)

(1,5

00 M

W)

(150 MW)

(529 MW)

Palo VerdeSpot Market

San JuanShiprock (100 MW)

(0 MW)

(250 MW)

(150 MW)

GTMax Users Define Both the Path of Firm Transmission Contracts & Hourly Obligations

NorthernUtah

GlenGlenCanyonCanyon

Four CornersFour Corners

Northern

SouthSouth

Vernal

Fontenelle

Flaming GorgeHayden

Ault/Archer

NorthernSpot Market

(280 MW) (115 MW)

West Slope/Tri-State

(250 MW)

NorthernUtah

Bonanza

Moon Lake & CWDC

(140 M

W)

(48 MW

)

Bears Ears& Craig

(218 MW)

(379 MW) SRP Exchange (North - In)

RifleUpperMolina

LowerMolina

(250 MW

)

Montrose

Curecanti

BlueMesa

Mesa/Gunnison/Salida

(250 MW

)(127

.5 MW

)

(100 MW)

Crystal

Morrow Point

(100 MW)

TOT5

(721 MW

)

PonchaMidway/PuebloLost Canyon

SRP Exchange (South - In)

(250 MW)

(250 MW)

(150 MW)

(170 MW)

(100 MW)

4 CornersAztec

Farmington

New Mexico

Rio Grande

SouthernSpot Market

(247 MW)

Kayenta/NTUAGlen

Canyon( 400 MW)( 350 MW)

( 400 MW)

( 350 MW)

(300 MW

)

Page/Garkane/Kanab

SouthernUtah

PinnaclePeak

SRP Exchange (South - Out)

(1,5

00 M

W)

(150 MW)

(529 MW)

San JuanShiprock (100 MW)

(0 MW)

(250 MW)

(150 MW)

Palo Verde

GTMax Allows the User to Define Regions

PTDF = Power Transfer Distribution Factor

Argonne is Developing a Transmission Model for Computing PTDFs in GTMax

● EXAMPLE: Hypothetical power transfer from utility in eastern Wisconsin to TVA

● Transfer affects lines as far away as Nebraska and eastern Virginia

● Of the 45 000 lines modeled in the case, 171 had PTDFs above 5%, while for 578 the PTDFs were above 2%

PDF = Power Transfer Distribution FactorTLR = Transmission Line Loading Relief

Transmission Constraints Played a Critical Role in U.S. Midwest Price Spikes of up to $7.5/kWh in June 1998

0

200

400

600

800

1,000

1,200

1,400

1,600

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hou r o f the Day

En

erg

y (

MW

S po t Market S ales

S po t Market P urc h as es

S L C A/IP G eneratio n fo r F irm L o ad

S L C A/IP G eneratio n

F irm L o ads

S ales

P urc has es

Application: Hydropower Plant Operations ofa Large U.S. Utility are Usually Driven

by the Market Price of Electricity

PC-VALORPC-VALORAGUAAGUA

Detailed HydroDetailed HydroDataData

ProjectProjectFinanceFinanceModelModel

Financial ViabilityFinancial Viability

GTMaxGTMaxPowerPower

Transactions,Transactions,Market ClearingMarket Clearing

Prices, etc.Prices, etc.

ELECTRICELECTRIC(WASP-III+)(WASP-III+)

SystemSystemConfigurationsConfigurations

2005 + 20102005 + 2010

Demand forecast,existing

generating units,system

expansionoptions, etc.

Hourly systemloads, location

of powerplants,

transmissioncapacities, etc.

Economic andfinancial data

andassumptions,

etc.

Water inflows,reservoir

characteristics,thermal and

hydrogeneratingunits, etc.

Analyzing the Economic and Financial Viability of Two Transmission Lines in the Balkans for a Large

International Power Merchant

ALBANIAMACEDONIA

BULGARIA

Negotino

Kozjak

GT122 (future)

CHP (future)

Tikves

Oslomej

Vrben

Vrutok

Raven

Spilje

Globocica

Bitola(1 unit)

Blagoevgrad(Bulgaria)

800 800

250

1000

Greece

250/800

Varna

Russe

G. Oryahovitsa

Mizia

Kozlodui

Sofia

1600

24002400

800

250

250

1050250

500

800

250

1600

1600

500

160

160Tirana

Elbasan

North AlbaniaHydro PPs

800PS Chaira

Skopje

0/800

Aleko

Arda-Belm.

Batak-VachaB. Dol

Varna(Rehab)

New CoalNew CC(future)

NEWInterconnection

NEWInterconnection

Bitola(2 units)

Maritsa 3

MaritsaEast 1

MaritsaEast 2-2

MaritsaEast 2

MaritsaEast 3

Hydropower Plant

Load

SubstationTransfer Link Hydro Cascade Link

Thermal Plant

Spot Market Node

Negotino

Kozjak

GT122 (future)

CHP (future)

Tikves

Oslomej

Vrben

Vrutok

Raven

Spilje

Globocica

Bitola(1 unit)

Blagoevgrad(Bulgaria)

800 800

250

1000

Greece

250/800

Varna

Russe

G. Oryahovitsa

Mizia

Kozlodui

Sofia

1600

24002400

800

250

250

1050250

500

800

250

1600

1600

500

160

160Tirana

Elbasan

North AlbaniaHydro PPs

800PS Chaira

Skopje

0/800

Aleko

Arda-Belm.

Batak-VachaB. Dol

Varna(Rehab)

New CoalNew CC(future)

NEWInterconnection

NEWInterconnection

Bitola(2 units)

Maritsa 3

MaritsaEast 1

MaritsaEast 2-2

MaritsaEast 2

MaritsaEast 3

Hydropower Plant

Load

SubstationTransfer Link Hydro Cascade Link

Thermal Plant

Spot Market Node

Hydropower Plant

Load

SubstationTransfer Link Hydro Cascade Link

Thermal Plant

Spot Market Node

Three Distinct Regions were Modeled in the Balkan Transmission Lines Project

GTMax Projected Market Clearing Prices in the Balkans Based on Marginal Production Costs

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10

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25

30

35

Mon Tue Wed Thu Fri Sat Sun

$/M

Wh

Price Country YPrice Country XUncongested Price

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50

100

150

200

250

Mon Tue Wed Thu Fri Sat Sun

MW

h

Energy Transfer X to YEnergy Transfer Y to X

GTMax Estimated Bulk Power TransfersBetween Regions

Analyzing the Financial Viability of Small-Scale Cogenerators in Poland’s Deregulated Power Markets

Poland’s Pumped Storage Units Increased Loads Off-Peak (Pumping) to Satisfy Peak Demand (Generation)

15000

17500

20000

22500

25000

Sun Mon Tue Wed Thu Fri Sat

Load

(MW

h)

15000

17500

20000

22500

25000

Firm Sales (MWh) Loads + Losses (MWh)Pumping Load (MWh) Peaking Hydro (MWh)ROR Hydro (MWh) Thermal Generation (MWh)Pumped Storage Generation (MWh)

Poland’s Pumped Storage Operations Respond to Market Price Signals

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100

200

300

400

500

600

700

800

Sun Mon Tue Wed Thu Fri Sat

Load

(MW

h)

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5

10

15

20

25

30

35

40

45

50

Market C

learing Price ($/MW

h)

Operation of New Cogenerators in Polandis Driven by Market Prices

0

5

10

15

20

25

Sun Mon Tue Wed Thu Fri Sat

Loca

l CHP

Gen

erat

ion

(MW

h)

0

5

10

15

20

25

30

35

40

45

50 Market C

learing Price North Region ($/MW

h)

CHP Generation (MWh)

Market Clearing Price North Region ($/MWh)

Revenues From the New Cogeneration Plant Are Greater Than Production Costs

0

200

400

600

800

1000

1200

Rev

enue

s+Ex

pens

es (U

S$)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour of Day (Thursday)

Incremental Cost ($)

Revenue ($)

GTMax Calculated Available Transfer Capabilities for Three Paths From East to West Across Poland

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600

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1800

2100

Sun Mon Tue Wed Thu Fri Sat

Load

[MW

h]

Central Path Southern Path Northern Path

GTMaxGTMax

Center for Energy, Environmental, and Center for Energy, Environmental, and Economic Systems Analysis (CEEESA)Economic Systems Analysis (CEEESA)Argonne National LaboratoryArgonne National Laboratory9700 South Cass Avenue9700 South Cass AvenueArgonne, IL 60439, USAArgonne, IL 60439, USA

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