Module 2 Fundamentals of the Nodal Market
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Module 2
Fundamentals of the Nodal Market
3
Module Overview
Exit
Enter
Fundamentals of the
Nodal Market
4
• 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
Upon completion of this module, you will be able to:
Module Objectives
5
ERCOT Wholesale Market
6
Overview: Registration
Registration
7
Registration Basics
All Market Participants are
required to register and sign a
Standard Form Market
Participant Agreement to
participate in the ERCOT market.
8
Registration Basics
Each Market Participant
must register with ERCOT
by submitting the
applicable registration
application.
9
Registration Basics
Next, registrants
demonstrate they are
qualified to perform the
functions they’ve
registered for.
10
Registration Basics
QSEs must complete Qualification tests
• User Interface/API
• 24x7 Scheduling Center
• Telemetry Connectivity
• Ancillary Services as needed
11
Registration Basics
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
12
Registration Basics
ERCOT settles financially with QSEs and
CRR Account Holders. QSEs and CRR
Account Holders must satisfy ERCOT’s
creditworthiness requirements.
13
Additional information is available at:
http://www.ercot.com/services/rq/index.html
Registration Information
Registration Basics
14
Overview: Network Modeling
Network Modeling
15
• 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 (NMMS)
Network Model Management System
16
Network Operations Model
• Real-Time Dispatch
• Reliability Unit Commitment
• Used to produce other Network Models
Network Operations Model Operational Impacts
17
• Real-Time Locational Marginal Prices
• Day-Ahead Market
• Used to produce other Network Models
Network Operations Model Financial Impacts
Network Operations Model
18
• Transmission Elements including Resources
• Connectivity
What does Network Operations Model reflect?
Network Operations Model
Electrical Busses
Transmission Lines
Circuit Breakers
Transformers
Disconnects
Reactive Devices
Generation Resources
Load Resources
Protection Schemes
Telemetry mapping
19
• TSPs model Transmission Facility changes
• Resource Entities provide Resource changes
• Model data submitted via NOMCR process
Who is responsible for providing modeling
input?
Network Operations Model
Network Operations Model Change Requests (NOMCR)
are the mechanisms used to submit modeling changes.
20
• Must be submitted three months in advance
• Schedule outlined in Protocols
Network Operations Model Change Requests
(NOMCR)
Network Operations Model
21
• Project long-term system growth
• Identify Transmission or Generation needs
• Released to the Market every October
Planning Models:
Network Planning Model
Planning Model
updates must be
coordinated with
Operations Model
22
• Based on Operations Model
• Used for CRR Auction & Allocation processes
• Released to the Market before each Auction
CRR Network Models
CRR Network Model
23
Overview: CRR Auction
CRR Auction
24
• A financial instrument that may be used as a hedge against congestion costs.
What is a Congestion Revenue Right (CRR)?
Congestion Revenue Rights
For more details, refer to CRR course at:
http://www.ercot.com/services/training
Source
Hub
Sink
$40/MWh
$50/MWh
$25/MWh
25
Overview: Day-Ahead Operations
Day-Ahead Market
26
• Daily, “co-optimized” process
• Voluntary participation
• Financially binding
Day-Ahead Market (DAM)
Day-Ahead Market
27
Simultaneous clearing of Energy and Ancillary Service offers optimizes cost
Day-Ahead Market Co-Optimization
Day-Ahead Market
Energy Offers
& Bids
Ancillary
Service Offers
PTP Obligation
Bids
Energy Awards
PTP Obligation
Awards
Ancillary
Service AwardsDay-Ahead
Market
28
Overview: Reliability Unit Commitment
Reliability Unit
Commitment
29
• One instance of RUC
• Ensures reliability - physically and financially binding
• Executed daily after the Day-Ahead Market
Day-Ahead Reliability Unit Commitment
(DRUC) Fundamentals
Day-Ahead Reliability Unit Commitment
30
• Another instance of RUC
• Ensures reliability - physically and financially binding
• Executed at least hourly
Hourly Reliability Unit Commitment (HRUC)
Fundamentals
Hourly Reliability Unit Commitment
31
Overview: Adjustment Period
Adjustment Period
32
• Update Offers
• Submit Trades
• Revise Resource commitments
QSE Activities during the Adjustment Period
Adjustment Period
Trades
Commitments
Offers
33
• If insufficient AS capacity, ERCOT executes a SASM during the Adjustment Period
Supplemental Ancillary Services Market
(SASM)
Supplemental Ancillary Service Market
34
Overview: Real-Time Operations
Real-Time
Operations
35
• Match generation with demand
• Operate transmission system within established limits
Purpose of Real-Time Operations
Real-Time Operations
36
Every 5 minutes, SCED calculates:
• Resource-specific Base Points
• Locational Marginal Prices
• Security Constrained Economic Dispatch (SCED)
Process used to determine optimal dispatch:
Real-Time Operations
37
• Matches generation with demand
• Responds to frequency deviations
• Deploys Regulation Reserve Service
Load Frequency Control (LFC)
Real-Time Operations
5 minutes 5 minutes
Base point
Base point
Base point
Frequency (Hz)
38
Overview: Settlements
Settlement
39
• Daily statements include all Payments due and Charges incurred
• Statements posted to MIS Certified Area for applicable Market Participant
Day-Ahead Settlement
Day-Ahead Settlements
When are Day-Ahead Market Statements available?
Operating Day
Day 2Day Ahead
DAM Statement
40
• Daily statements include all Payments due and Charges incurred
• Statements posted to MIS Certified Area for applicable Market Participant
Real-Time Settlement
Real-Time Settlements
When are Real-Time Statements available?
Day 180Operating Day
Day 5
Initial Statement
Final Statement
True-Up Statement
Day 55
41
• Daily invoices include
DAM statements
RTM statements
Single Daily Settlement Invoice
Settlement Invoices
InvoiceDay + 2
InvoiceDay + 3
InvoiceDay
ERCOT Issues Invoice• DAM• RTM initial • RTM final• RTM True-Up
Payment Due (to ERCOT)
Payment Due (to Market Participant)
17001700
42
• Resource Nodes
• Load Zones
• Hubs
Posted on MIS
• LMPs
• Settlement Point Prices
Settlement Point Prices:
Settlement Pricing
Resource Nodes
Load Zones
Hubs
43
… but what does that mean?
ERCOT is an energy-only market
Settlement Pricing
It’s all about the recovery of costs to build generation.
In ERCOT, these costs must be recovered with revenues from energy production and operating reserves.
44
… but what does that mean?
ERCOT is an energy-only market
Settlement Pricing
Energy Pricing must support investment in new generation
Scarcity pricing – higher energy prices during periods where energy reserves are scarce
45
Overview: Market Information System
Market Information
System (MIS)
46
Three MIS Security Levels
Market Information System
• 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
47
• The major components of the ERCOT Wholesale Market
• Other processes that support the ERCOT Wholesale Market
You have learned about:
Module Summary
Module Conclusion
Related Documents
