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Enhancing the flexible ramping product to better address net load - - PowerPoint PPT Presentation

Enhancing the flexible ramping product to better address net load uncertainty Ryan Kurlinski Manager, Analysis and Mitigation Group Department of Market Monitoring California Independent System Operator Western EIM Body of State Regulators


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ISO Public

Enhancing the flexible ramping product to better address net load uncertainty

Ryan Kurlinski Manager, Analysis and Mitigation Group Department of Market Monitoring California Independent System Operator Western EIM Body of State Regulators Webinar June 12, 2020

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ISO Public

DMM has made 3 major recommendations for improving initial flexible ramping product design

  • 1. Locational  account for transmission constraints

 Being addressed in current FRP initiative  DMM supports the most recent proposal

  • 2. Procure flexible capacity in day-ahead market

 CAISO is developing design in day-ahead market enhancements initiative

  • 3. Incorporate uncertainty about what net load will be 1 to

4 hours out from current real-time market run

  • Purpose of today’s talk: Explain this recommendation

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To increase upward ramping capacity, CAISO grid operators make significant upward adjustments to the demand for energy used by the real-time market software to dispatch bids.

4,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 36,000 200 400 600 800 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 Net system load (MW) Manual load adjustment (MW) Hour of day ( July - September 2019) Hour-ahead load adjustment 15-minute market load adjustment 5-minute market load adjustment Net load

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CAISO operators also commit extra gas-fired capacity after day-ahead market and ramp units up in real-time to create more upward ramping capacity.

These are referred to as out-of-market or exceptional dispatches.

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5,000 10,000 15,000 20,000 25,000 30,000 35,000 100 200 300 400 500 600 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Average system net load (MW) Average hourly energy (MW) Hour of day (July - Sept 2019)

Other real-time manual energy dispatches (gas units only) Manual energy dispatches to increase ramp/manage load uncertainty Minimum operating level of gas units comitted manually Net load

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Picturing uncertainty: probability density functions

  • At a given point in time, net load at a time in the future is a random variable with a range
  • f uncertainty that can be characterized by a probability density function.
  • A wider probability density function indicates wider range of uncertainty.
  • CAISO characterizes upper end of range of possible outcomes using 97.5th percentile.
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In real-time, the market software uses net load forecast for every interval up to 4.5 hours in future to determine optimal schedules at the current interval (e.g. 13:45 in this example).

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At 13:45 the uncertainty over what net load may actually be at each point in time over the next 4.5 hours grows further out in the future.

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Flexible ramping product has improved real-time software by considering some uncertainty around the net load forecast for every interval 4.5 hours in future used to determine optimal schedules at the current interval.

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The “15 minute” uncertainty used by FRP is substantially less than actual uncertainty over what net load forecast may be 1 to 4 hours in future

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The real-time market software does not optimally position resource fleet to meet potential high net load outcomes 1 to 4 hours in the future.

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For example, software will miss opportunity to start units with 3 hour start times that are needed by 17:00 to meet potential high net load outcomes– requires manual operator interventions

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Considering actual net load uncertainty 1 to 4 hours in future would allow the real-time software to position resources to meet higher potential net load outcomes.

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ISO Public

For questions, comments, or more information:

  • Department of Market Monitoring website:

– http://www.caiso.com/market/Pages/MarketMonitoring/Default.aspx

  • DMM quarterly and annual reports

– http://www.caiso.com/market/Pages/MarketMonitoring/AnnualQuart erlyReports/Default.aspx

  • DMM comments on 2020 market design initiatives

– http://www.caiso.com/Pages/documentsbygroup.aspx?GroupID=E0 E702C8-DC83-4625-98E2-36230535B44A

  • Email for Ryan Kurlinski

– rkurlinski@caiso.com

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