Revised Straw Proposal Stakeholder Meeting December 17, 2019 CAISO - PowerPoint PPT Presentation

Hybrid Resources: Revised Straw Proposal Stakeholder Meeting December 17, 2019 CAISO Internal Use Only CAISO Internal Use Only

ISO Policy Initiative Stakeholder Process We are here Page 2 CAISO Internal Use Only

Agenda Time Item 10:00-10:05AM Welcome and Introduction 10:05-10:45AM Terms and Definitions 10:45-11:30AM Forecasting 11:30AM-12:00PM Markets and Systems 12:00-1:00PM LUNCH 1:00-2:00PM Markets and Systems (continued) 2:15-2:45PM Ancillary Services 2:45-3:00PM Metering and Telemetry 3:00-3:50PM Resource Adequacy 3:50-4:00PM Next Steps Page 3 CAISO Internal Use Only

WELCOME AND INTRODUCTION Page 4 CAISO Internal Use Only

ISO Policy Initiative Stakeholder Process We are here Page 5 CAISO Internal Use Only

Policy initiative schedule Date Milestone December 10 Revised Straw Proposal December 17 Stakeholder Meeting on Revised Straw Proposal January 14 Comments Due on Revised Straw Proposal March Second Revised Straw Proposal May Draft Final Proposal Q3 Board of Governors Meeting Page 6 CAISO Internal Use Only

Revised Straw Proposal elements • Refinements to terminology & definitions • Business drivers and use cases • Clarifications to proposed modifications for: – Forecasting – Markets and systems – Ancillary Services – Resource Adequacy Page 7 CAISO Internal Use Only

Initiative objectives • CAISO anticipates that hybrid resources and co-located projects will begin to be adopted on a wide scale driving the need for review of existing participation provisions • Identify enhancements and new market rules and business processes needed to accommodate the unique attributes of hybrid and co-located resources • Minimize barriers to the efficient and reliable operation and market participation of hybrid resources and co- located projects Page 8 CAISO Internal Use Only

Proposal highlights • Two main aspects of the proposal is to enable improved participation of hybrid resources and co-located resources: – Extend existing market functionality used for standalone variable energy resources to hybrid resources to provide feasible market awards and dispatches – Address the potential for stranded capacity and energy on co-located projects through the addition of a new interconnection rights constraint to CAISO markets Page 9 CAISO Internal Use Only

Hybrid resource participation enhancements • Proposal will allow hybrid resources to utilize their own forecasted output capability to ensure they receive feasible market awards and dispatch instructions • CAISO markets will recognize a dynamic upper economic bid range (maximum production limit) for these hybrid resources – Enables their participation while minimizing the possibility for infeasible market awards and dispatches – This aspect will only apply to CAISO real-time markets Page 10 CAISO Internal Use Only

Co-located resources participation enhancements • Addressing stranded capacity and energy on co-located projects with new interconnection rights constraint • Proposed interconnection rights constraint will enable CAISO to ensure energy output of co-located resources will be maintained within established interconnection delivery limits while allowing for maximum utilization of co-located resources Page 11 CAISO Internal Use Only

TERMS & DEFINITIONS Page 12 CAISO Internal Use Only

Hybrid resource definition • CAISO defines hybrid resources as those projects configured with only single resource IDs – Participates and optimized as single resource, for bidding, dispatch, settlements, etc. • Co-located projects with two or more resource IDs are different from hybrid resources – effectively two distinct resources from CAISO view – Generally treated as completely separate resources for the purposes of market participation, bidding, resource adequacy, settlements, etc. – One main exception to this rule is coordination of dispatch and operations needed to limit output to project interconnection rights Page 13 CAISO Internal Use Only

Proposed Hybrid Resource definition • Hybrid Resource: A resource type comprised of a mixed-fuel type project, or a combination of multiple different generation technologies that are physically and electronically controlled by a single owner/operator and Scheduling Coordinator behind a single point of interconnection (“POI”) that participates in the CAISO markets as a single resource with a single market resource ID. Page 14 CAISO Internal Use Only

Related terms definitions: • Mixed-Fuel Type Project: A project located behind a single POI with more than one different fuel-type which could be configured as either a Hybrid Resource (single resource ID) or Co-located Resources (multiple resource IDs) • Hybrid Resource Component: The portion of a Hybrid Resource consisting of capacity of a single fuel type, e.g. , a VER-storage Hybrid Resource consists of a both a VER component and a storage component • Co-located Resource Configuration: the multiple-resource ID configuration of independent Mixed-Fuel Type Project subject to a single POI constraint • Co-located Resource: The individual, separate resource ID of a Mixed-Fuel Type Project Page 15 CAISO Internal Use Only

Hybrid Resource size requirements • CAISO proposes to require that hybrid resources meet the minimum sizing requirements for both of the underlying generation components: – 500kW for any participating generator hybrid resource component – 100kW for any storage hybrid resource components • CAISO has clarified this aspect to avoid confusion regarding the sizing requirements for hybrid resources Page 16 CAISO Internal Use Only

FORECASTING Page 17 CAISO Internal Use Only

Hybrid resources are not considered VER or EIR resources • Any hybrid resource combining non-VER generation with VER generation is not eligible to be an EIR or PIR – FERC Order No. 764 defines a variable energy resource as: • A device for the production of electricity that is characterized by an energy source that: (1) is renewable; (2) cannot be stored by the facility owner or operator; and (3) has variability that is beyond the control of the facility owner or operator. – Appendix A to the CAISO tariff defines an Eligible Intermittent Resource as: • A Variable Energy Resource that is a Generating Unit or Dynamic System Resource subject to a Participating Generator Agreement, Net Scheduled PGA, Dynamic Scheduling Agreement for Scheduling Coordinators, or Pseudo-Tie Participating Generator Agreement. Page 18 CAISO Internal Use Only

EIR status diagram for single resource ID hybrid resources Page 19 CAISO Internal Use Only

Forecasting related terminology • Hybrid Resource Net-to-Grid Operational Forecast: – The overall capability of the hybrid resource as a whole, provided by the hybrid resource SC to the CAISO – This net-to-grid operational forecast should incorporate the following: Any VER component forecasted output, any storage component State-of-Charge, and the anticipated charging or discharging operation of any storage component – All of these aspects should all be incorporated in this self- provided net-to-grid operational forecast – The net-to-grid operational forecast will only be provided and utilized in CAISO Real-Time markets • Hybrid Resource VER Component Forecast: – The forecast output capability of only the VER component of a hybrid resource (net of losses and auxiliary load) Page 20 CAISO Internal Use Only

Forecasting related clarifications • Hybrid Resource Net-to-Grid Operational Forecast: – All hybrid resource net-to-grid operational forecast will only be provided by the hybrid resource SCs – CAISO cannot provide forecasting for this aspect due to SC decisions related to onsite optimization and charging or discharging of underlying hybrid resource components • Hybrid Resource VER Component Forecast: – CAISO proposes hybrid resource SCs can provide their own VER component forecasts or have the option for CAISO to perform the forecasting for the VER component of hybrid resources – CAISO clarifies that it can only provide forecasting for the VER components and will not provide forecasting for the overall net-to- grid operational capability of hybrid resources Page 21 CAISO Internal Use Only

CAISO forecasting for VER components of hybrid resources • Although CAISO will not consider hybrid resources to be eligible for EIR or PIR treatment, the VER components may retain their VER status • Based on stakeholder feedback, CAISO proposes to provide forecasting for the VER component of a hybrid resource for a fee Page 22 CAISO Internal Use Only

Hybrid Resource forecasting data requirements • All hybrid resources with VER components be required to provide the following data and information to CAISO: 1. Topo map 2. Site info sheet (designating CAISO or SC provided VER forecast) 3. Met stations per Appendix Q (documented location on topo map and site info sheet) 4. If self-providing VER component forecast, the VER component RT forecast 5. Met data streaming in RT 6. Telemetry actuals on VER components 7. High Sustainable Limit forecast of the VER component Page 23 CAISO Internal Use Only