Discussion of Addendum to The Retrospective Analysis Lin Xu, Ph.D. - - PowerPoint PPT Presentation

Discussion of Addendum to The Retrospective Analysis

Lin Xu, Ph.D.

• Sr. Market Development Engineer

Market Analysis and Development

Topics

• Characterize LMPM methods, the new and the current
• Characterize non-radial constraints and the mitigation

reference bus

• Mitigate based on individual constraint or all non-

competitive constraints?

• The competitive LMP vs the competitive constraints (CC)

run LMP

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S L Non-competitive 100 MW System side Local side I Import 100 MW Competitive G0: 180MW at $40/MWh G1: 200MW at $500/MWh L1: 150MW CC run: 150MW at $40 CC run: 0MW at $40 AC run: 100MW at $40 AC run: 0MW at $300 I2: 160MW at $300/MWh CC run: 0MW at $40 AC run: 50MW at $300 Bids: Schedules: Reference bus

The new vs the current: marginal sensitivity vs large change sensitivity

Large change sensitivity cannot be observed when there is a more economic way to relieve congestion Marginal sensitivity

• bserved

Reference bus and non-radial constraints

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r ( = SF_from – SF_to) measures how radial a constraint is: 1radial, <1 not radial ds (= SF_from / r) measures the distance between the ‘from’ bus and the reference bus: 0reference bus at ‘from’ bus, 1reference bus at ‘to’ bus Gen pocket ds > 0.5

Constraint Type Description r ds

• Ref. bus

location SLIC 1417897_IV_CB_7022_OUT_NG Nomogram Flow on Imperial Valley bank into SDGE 0.90 0.71 ‘to’ side 36957_MCSN TP1_230_36961_MOCCASIN_230_BR_1 _1 Flowgate Moccasin generation into Newark 1.00 1.00 ‘to’ side 32228_PLACER _115_32238_BELL PGE_115_BR_1 _1 Flowgate Drum, Higgins, and etc flow from Bell to Placer 0.98 0.75 ‘to’ side SLIC 1446790 EGL_SLV_FLTN SOL-1 Nomogram North Geysers flow on Eagle Rock-Silverado- Fulton 0.67 0.96 ‘to’ side SLIC 1368530_SDGE_IV_CB_7022 Nomogram Flow on Imperial Valley bank into SDGE 0.90 0.75 ‘to’ side SDGE_PCT_UF_IMP_BG Flowgate Flow into SDGE 0.98 0.00 ‘from’ side SSONGS_BG Flowgate Path 44 from Songs to SDGE 0.88 0.07 ‘from’ side SLIC 1434491_Moorpark_Pardee_NG Nomogram Flow from Pardee into Santa Clara 0.65 0.10 ‘from’ side 22716_SANLUSRY_230_24131_S.ONOFRE_ 230_BR_3 _1 Flowgate Part of path 44 into SDGE 0.81 0.05 ‘from’ side

Load pocket ds < 0.5 The smaller ds is, the better the reference bus is

Mitigate based on individual constraint or all non- competitive constraints?

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S L NC1 $100/MWh System side Local side G NC1 and NC2 are non-competitive constraints Gen pocket $110/MWh Reference bus LMPNC = $0 LMPNC = $100 LMPNC = −$10 NC2 All constraints (ISO proposal): will not mitigate G Individual constraint: will mitigate G SF_S_NC1 = 0 SF_L_NC1 = −1 SF_G_NC1 = −1 Mitigation based on individual constraint may cause over- mitigation

The competitive LMP vs the CC run LMP

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S L 100 MW Non-competitive G0: 120MW at $40/MWh G1: 100MW at $500/MWh L1: 150MW System side Local side G0 CC run: 120MW at $500 G1 CC run: 30MW at $500 G0 AC run: 100MW at $40 G1 AC run: 50MW at $500 CC run price may not be competitive Reference bus Bids: Schedules: If the CC run is solved with fixed unit commitments (from the AC run), the competitive LMP is expected to be lower than the CC run LMP for units with positive LMP non-competitive component. The competitive LMP is LMPCMP = LMPEC+LMPLC+LMPCC, and will replace the CC run LMP as the mitigation protection floor

The competitive LMP vs the CC run LMP

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85% 79% 21%

Day-ahead market results from January 2011 to February 2011

Summary

• The new LMPM method is more sensitive and targeted

than the current LMPM method

• A good mitigation reference bus should have small ds
• Mitigation based on individual constraints may cause
• ver-mitigation
• The CC run LMP may not be as competitive as the ISO

proposed competitive LMP

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