Robert Doyle Section Head, Customer Outreach IESO What Were Seeing - - PowerPoint PPT Presentation

Understanding Global Adjustment

Robert Doyle Section Head, Customer Outreach IESO

What We’re Seeing Now

• Reliable, even under extreme

hot or cold weather conditions

• Coal in final stages of

shutdown process, on schedule for 2013 phase-out

• Demand Response: significant

… and growing

• Renewables to reach 7000 MW

by early 2015

• Increased volume, frequency

and duration of Surplus Baseload Generation

Wind and Solar Integration

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• 3,800 MW of new

grid-connected renewable resources

• Wind dispatch gives

another source of

• flexibility. Other

changes include in visibility and forecast

500 1000 1500 2000 2500 3000 3500 4000 4500 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 MW

New Renewable Capacity Sept 2013 - Feb 2015

Hydro Biomass Solar Wind

Traditional Response to Consumer Demand

Engaging and Empowering Consumers at All Levels

Look to consumers as a key resource to help meet its capacity and operability needs, e.g.

• Peak management and

load-shifting

• Ancillary services
• System services (ramp,

load following, SBG relief)

Ontario’s Changing Demand Profile

MW Hour 5000 10000 15000 20000 25000 30000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2013 Peak All-Time Peak

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A New Role for Demand Response?

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Market prices reflect the changing conditions, sending an clear signal to consumers and producers These needs are much more fine-tuned and can vary widely - need ways to integrated new types of flexibility.

New Opportunities for Demand Response

• Demand response having a

significant impact on system: – GAA and DR3 reducing summer peaks ~900 MW – TOU and peaksaver – Regulation Service

• Future benefits

– complement wind and solar – enable customers to manage electricity use

• New opportunities to allow

DR participants to compete directly with generators

Understanding Global Adjustment

Wholesale Market Price and Global Adjustment

• Market price provides signal of short-term supply and

demand

• There is an inverse relationship between the Global

Adjustment and the wholesale market price

• GA is the difference between the total payments made to

certain contracted or regulated facilities and any

• ffsetting market revenues
• Payments reflect fixed cost recovery guaranteed by

contracts and regulated payment amounts. Also includes costs related to conservation programs

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1 2 3 4 5 6 7 8 9 2008 2009 2010 2011 2012 Jan-Oct 2013 ¢/kWh Hourly Ontario Energy Price Global Adjustment

Electricity Pricing Trends

8.53 5.57 6.27 6.52 7.16 7.37

Pricing Overview

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Flexible solutions for capacity

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Largest component of GA is paying for capacity How can capacity needs be communicated to generators and loads through prices? New technologies or different participants could compete to offer more flexible or cost effective alternatives

Global Adjustment on the web

www.ieso.ca/globaladjustment

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Managing your Consumption

• Know when you are using

electricity and how much it costs

• Analyze monthly and

daily demand data

• Work with your local

distribution company to get access to your data

Electricity use dips on weekends and nights

Using Market Signals

Ontario Demand Avg cents/kWh # of hours <24,000 MW 12.2 cents 9 22,000-24,000 MW 6.6 cents 120 20,000-22,000 MW 4.1 cents 367 <20,000 MW 2.1 cents 8,288

www.ieso.ca/peaktracker

Market Development

• Market–based approach offers
• pportunities to integrated more

demand response and other technologies

• Develop the Ontario wholesale

electricity market to support: – Transparent and efficient price signals – Open access for all types of resources

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IESO Publications

• Global Adjustment Primer
• Electricity Insider (quarterly)
• Managing Your Electricity

Costs: A Guide for Business

• Weekly Bulletin (email)

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