Overview of the Generation- - Overview of the Generation - - PowerPoint PPT Presentation

Overview of the Generation Overview of the Generation-

• Transmission Maximization

Transmission Maximization (GTMax) Model (GTMax) Model

The Premier Analysis Tool The Premier Analysis Tool f or Deregulated f or Deregulated Electricity Markets Electricity Markets

Argonne National Laboratory Argonne National Laboratory Center for Energy, Environmental, and Center for Energy, Environmental, and Economic Systems Analysis Economic Systems Analysis

Generation Generation Transmission Transmission Distribution Distribution

Past Past

Natural Monopoly Natural Monopoly Vertically Integrated Vertically Integrated

Present Present

Transition Transition Phase Phase

Future Future

Open Market Open Market

Transmission Transmission Distribution Distribution Generation Generation

Unbundled Unbundled

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- I ntegrated Energy Companies

Load Aggregators

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

Customers

Generation Companies

Brokers

LDC LDC PX ISO

Argonne Developed GTMax to Study the Complex Marketing and Operational I ssues in Today’s Deregulated Power Markets

• Generation Companies, I ndependent Power

Producers, and Power Merchants

• Transmission Companies, I ndependent

System Operators, and Power Exchanges

• Government, Regulatory, and Oversight

Bodies GTMax Can be Used by Dif f erent Market Agents in Support of their Analytical Needs

Generation Companies, I ndependent 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 f rom long-

term f irm contracts and I PP 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, I ndependent System Operators, and Power Exchanges

• Use GTMax to estimate the locational hourly market

clearing price f or energy at dif f erent points in the network

• Use GTMax to estimate the projected available

transmission capability on individual links or user- specif ied paths each hour in the region f or posting on OASI S systems

• Use GTMax to determine the optimal path of contractual

power f lows

• Use GTMax to identif y operational and network

bottlenecks and the marginal value of relieving system

• bligations and constraints
• Use GTMax to conduct screening and siting analyses f or

new transmission lines

Government Agencies and Regulatory

• r Oversight Bodies
• Use GTMax to analyze dif f erent 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 ef f ects 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 f inancial value of an electric

utility system within physical and institutional operating constraints

• Electric utility system

– Hydro and t hermal power plant s – Firm purchase and sales cont ract s – Spot market int erconnect ions – Cust omers (elect ricit y demand) – Transmission and dist ribut ion syst ems

• Physical and institutional constraints

– Capacit y – Technical minimum – Ramping limit s (change in operat ions over t ime) – Reservoir limit s

Spot Markets & Firm Contracts Are Driving the System System Dispatch & Plant Operations Must Respond to the Market

GTMax Objective

GTMax Balances Supply & Demand (Simplif ied Example)

10 20 30 40 50 60 70 80 90 100 100 200 300 400 500 600 700

Demand [MWh]

Market Clearing Price [$/MWh]

Supply Demand

Generators are Loaded According to Marginal Production Costs or MARKET BID PRICE High Prices Result in Demand Curtailments

Due to transmission congestion this point must be determined for each zone

• r region

Market Clearing Price

Pur chase & Sales Pur chase Pur chase & Sales & Sales Cont ract ual Power Flows Cont ract ual Cont ract ual Power Flows Power Flows Reservoir Operat ions Reservoir Reservoir Operat ions Operat ions Unit Commit ment s Unit Unit Commit ment s Commit ment s Revenues & Expenses Revenues & Revenues & Expenses Expenses Value of Energy & Energy Savings Value of Energy Value of Energy & Energy Savings & Energy Savings Hour ly Gener at ion Hour ly Hour ly Gener at ion Gener at ion

GTMax Model GTMax GTMax Model Model

Operat ional Rest rict ions Operat ional Operat ional Rest rict ions Rest rict ions Hydro & Thermal Resources Hydro & Thermal Hydro & Thermal Resources Resources Spot Market Pr ices Spot Market Spot Market Pr ices Pr ices Hydro Cascade Specif icat ions Hydro Cascade Hydro Cascade Specif icat ions Specif icat ions Firm Cont ract s Firm Firm Cont ract s Cont ract s Tr ansmission & Dist ribut ion Syst em Tr ansmission Tr ansmission & Dist ribut ion & Dist ribut ion Syst em Syst em Demand & Curt ailment s Demand & Demand & Curt ailment s Curt ailment s

GTMax Operates at a One Hour Time- Step and Takes into Account Many I nput Variables

GENERATION TRANSMISSION

D I S T R I B U T I O N

Sub Station D e m a n d C e n t e r s Hydro Firm Contract Interchange Thermal Spot Market

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

• Nodes

– Thermal & hydro power plant – Firm purchases & sales cont ract s – Spot market int erconnect ions – Power int erchange point s – Heat product ion – Elect ricit y & heat demand

• Links

– Transmission lines – River syst ems – Heat f lows

There are Several Types of Supply Resources in the Model

• Thermal units
• Hydro power plants (limited energy)

– Run-of -river – St orage – Pumped st orage – Hydro plant s can be specif ied in a cascade – Wat er is spilled (non-power release) under some condit ions

• Long- term f irm purchase contracts & I ndependent Power

Producer (I PP) contracts

• Spot market purchases
• Combined Heat & Power Plants

GTMax Has Detailed Thermal & Hydro System 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 generat ion f rom one hour t o t he next

• Daily up & down ramp rate restrictions

– Change in generat ion 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 f unctions of :

– I nit ial reservoir condit ions – Hourly up-st ream reser voir releases – Side f lows – Pumped wat er f rom a lower r eservoir – Hourly reser voir releases – Wat er ext ract ed f or irrigat ion of ot her uses – Elevat ion change per volume of wat er released

Supply Resources Satisf y Dif f erent Types of Demands

• Service territory load centers
• Firm contract loads (if any)
• Spot market demands (if economical)
• Heat demands
• Note: Additional electricity must

be produced because of T&D losses

Pinnacle Peak Glen Canyon 4 Corners Craig Hayden Rifle

Poncha

Midway/ Pueblo Montrose Cascade Salida Ault Archer

Bonanza Vernal

Fontenelle Flaming Gorge Uintah WCD New Mexico Rio Grande

The Transmission System Links Dif f erent Types of Activities

Exchange Exchange Sales Contract Purchase Contract Demand/ Customers Thermal Generation Hydro Generation Southern Spot Market Northern Spot Market Palo Verde Spot Market

Overlay of a U.S. Utility System on a Transmission System Map

Hydro & Thermal Plants Demand Spot Market Delivery Point Transmission Substation Hydro Cascade Pumped Storage

GTMax Employs a User- Friendly Geographical I nf ormation System (GI S) I nterf ace

Supply Sub-Station Demand

Generation Distribution

Spot Market Firm Contract

Exchange Exchange

250 MW 2 5 M W

GTMax Accounts f or Composite Transf er Capability (The Total I s Less Than The Sum of The Parts)

Vernal Fontenelle Flaming Gorge Hayden Ault/Archer Northern Spot Market

(280 MW) (115 MW)

West Slope/ Tri-State

( 2 5 M W )

Northern Utah Bonanza Moon Lake & CWDC

(140 MW) ( 4 8 M W )

Bears Ears & Craig

( 2 1 8 M W ) (379 MW)

SRP Exchange (North - In) Rifle Upper Molina Lower Molina

( 2 5 M W )

Montrose Curecanti Blue Mesa

Mesa/ Gunnison/ Salida

(250 MW) (127.5 MW) ( 1 M W )

Crystal Morrow Point

( 1 M W )

TOT5 (721 MW)

Poncha

Midway/ Pueblo

Lost Canyon SRP Exchange (South - In)

( 2 5 M W ) ( 2 5 M W ) (150 MW) ( 1 7 M W ) (100 MW)

4 Corners Aztec Farmington

New Mexico Rio Grande Southern Spot Market

( 2 4 7 M W )

Kayenta/ NTUA Glen Canyon

( 400 MW) ( 350 MW) ( 400 MW) ( 350 MW) (300 MW)

Page/ Garkane/ Kanab Southern Utah Pinnacle Peak SRP Exchange (South - Out)

(1,500 MW) ( 1 5 M W ) (529 MW)

Palo Verde Spot Market San Juan Shiprock

(100 MW)

( M W )

( 2 5 M W ) ( 1 5 M W )

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

Northern Utah

Glen Glen Canyon Canyon Four Corners Four Corners Northern South South

Vernal Fontenelle Flaming Gorge Hayden Ault/Archer Northern Spot Market

(280 MW) (115 MW)

West Slope/ Tri-State

( 2 5 M W )

Northern Utah Bonanza Moon Lake & CWDC

(140 MW) ( 4 8 M W )

Bears Ears & Craig

( 2 1 8 M W ) (379 MW)

SRP Exchange (North - In) Rifle Upper Molina Lower Molina

( 2 5 M W )

Montrose Curecanti Blue Mesa

Mesa/ Gunnison/ Salida

(250 MW) (127.5 MW) ( 1 M W )

Crystal Morrow Point

( 1 M W )

TOT5 (721 MW)

Poncha

Midway/ Pueblo

Lost Canyon SRP Exchange (South - In)

( 2 5 M W ) ( 2 5 M W ) (150 MW) ( 1 7 M W ) (100 MW)

4 Corners Aztec Farmington

New Mexico Rio Grande Southern Spot Market

( 2 4 7 M W )

Kayenta/ NTUA Glen Canyon

( 400 MW) ( 350 MW) ( 400 MW) ( 350 MW) (300 MW)

Page/ Garkane/ Kanab Southern Utah Pinnacle Peak SRP Exchange (South - Out)

(1,500 MW) ( 1 5 M W ) (529 MW)

San Juan Shiprock

(100 MW)

( M W )

( 2 5 M W ) ( 1 5 M W )

Palo Verde

GTMax Allows the User to Def ine Regions

PTDF = Power Transfer Distribution Factor

Argonne is Developing a Transmission Model f or Computing PTDFs in GTMax

• EXAMPLE: Hypothetical

power transf er f rom utility in eastern Wisconsin to TVA

• Transf er af f ects lines as

f ar away as Nebraska and eastern Virginia

• Of the 45 000 lines

modeled in the case, 171 had PTDFs above 5%, while f or 578 the PTDFs were above 2%

PDF = Power Transfer Distribution Factor TLR = 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

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

Hour of the Day E nergy (MW

S pot Market S ales S pot Market P urc has es S L C A/IP Generation for F irm L oad S L C A/IP Generation F irm L oads

S ales P urc has es

Application: Hydropower Plant Operations of a Large U. S. Utility are Usually Driven by the Market Price of Electricity

PC-VALOR PC-VALOR AGUA AGUA

Detailed Hydro Detailed Hydro Data Data

Project Project Finance Finance Model Model

Financial Viability Financial Viability

GTMax GTMax

Power Power Transactions, Transactions, Market Clearing Market Clearing Prices, etc. Prices, etc.

ELECTRIC ELECTRIC (WASP-III+) (WASP-III+)

System System Configurations Configurations 2005 + 2010 2005 + 2010

Demand forecast, existing generating units, system expansion

• ptions, etc.

Hourly system loads, location

• f power

plants, transmission capacities, etc. Economic and financial data and assumptions, etc. Water inflows, reservoir characteristics, thermal and hydro generating units, etc.

Analyzing the Economic and Financial Viability of Two Transmission Lines in the Balkans f or a Large I nternational Power Merchant

ALBANIA MACEDONIA 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 2400 2400 800 250 250 1050 250 500 800 250 1600 1600 500 160 160 Tirana Elbasan North Albania Hydro PPs 800 PS Chaira Skopje 0/800 Aleko Arda-Belm. Batak-Vacha

• B. Dol

Varna (Rehab) New Coal New CC (future) NEW Interconnection NEW Interconnection Bitola (2 units) Maritsa 3 Maritsa East 1 Maritsa East 2-2 Maritsa East 2 Maritsa East 3 Hydropower Plant Load Substation Transfer 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 2400 2400 800 250 250 1050 250 500 800 250 1600 1600 500 160 160 Tirana Elbasan North Albania Hydro PPs 800 PS Chaira Skopje 0/800 Aleko Arda-Belm. Batak-Vacha

• B. Dol

Varna (Rehab) New Coal New CC (future) NEW Interconnection NEW Interconnection Bitola (2 units) Maritsa 3 Maritsa East 1 Maritsa East 2-2 Maritsa East 2 Maritsa East 3 Hydropower Plant Load Substation Transfer Link Hydro Cascade Link Thermal Plant Spot Market Node Hydropower Plant Load Substation Transfer 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

5 10 15 20 25 30 35 Mon Tue Wed Thu Fri Sat Sun $/MWh

Price Country Y Price Country X Uncongested Price

50 100 150 200 250 Mon Tue Wed Thu Fri Sat Sun MWh

Energy Transfer X to Y Energy Transfer Y to X

GTMax Estimated Bulk Power Transf ers Between Regions

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

Poland’s Pumped Storage Units I ncreased Loads Of f - Peak (Pumping) to Satisf y Peak Demand (Generation)

15000 17500 20000 22500 25000

Sun Mon Tue Wed Thu Fri Sat Load (MWh)

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

100 200 300 400 500 600 700 800 Sun Mon Tue Wed Thu Fri Sat Load (MWh) 5 10 15 20 25 30 35 40 45 50 Market Clearing Price ($/MWh)

Operation of New Cogenerators in Poland is Driven by Market Prices

5 10 15 20 25 Sun Mon Tue Wed Thu Fri Sat

Local CHP Generation (MWh)

5 10 15 20 25 30 35 40 45 50 Market Clearing Price North Region ($/MWh) CHP Generation (MWh) Market Clearing Price North Region ($/MWh)

Revenues From the New Cogeneration Plant Are Greater Than Production Costs

200 400 600 800 1000 1200

Revenues+Expenses (US$)

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 Transf er Capabilities f or Three Paths From East to West Across Poland

300 600 900 1200 1500 1800 2100 Sun Mon Tue Wed Thu Fri Sat Load [MWh]

Central Path Southern Path Northern Path

GTMax GTMax

Center f or Energy, Environmental, and Center f or Energy, Environmental, and Economic Systems Analysis (CEEESA) Economic Systems Analysis (CEEESA) Argonne National Laboratory Argonne National Laboratory 9700 South Cass Avenue 9700 South Cass Avenue Argonne, I L 60439, USA Argonne, I L 60439, USA voice: voice: ++1 ++1-

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