figure 1. px prices and total iso load (may 15 - august 31, 2000)
DESCRIPTION
800. 700. 600. 500. $/MWh. 400. 300. 200. 100. 0. 20000. 25000. 30000. 35000. 40000. 45000. MW. Figure 1. PX Prices and Total ISO Load (May 15 - August 31, 2000). Figure 2. The Market Connected Demand Response in Steep Portion of Supply Curve Yields Lower Wholesale Prices. - PowerPoint PPT PresentationTRANSCRIPT
Figure 1. PX Prices and Total ISO Load (May 15 - August 31, 2000)
0
100
200
300
400
500
600
700
800
20000 25000 30000 35000 40000 45000MW
$/M
Wh
Figure 2. The Market Connected Demand Response in Steep Portion of Supply Curve
Yields Lower Wholesale Prices$/MWh
GWh
Qnormal Qhot
Dhot
Dnormal
PhotRetail Price
Pnormal
>>
>
>>
>>
Qspike
BC
Lnormal
DA
E
>>
>
E´
Pspike
Lhot
Figure 3. RTP Load Response -- Moderate and High Prices (30% to 60% load reductions for most flexible customers)
0.00
0.20
0.40
0.60
0.80
1.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Hour
Nor
mal
ized
load
0
4
8
12
16
20
Log
arit
hm
of
P (
in $
/MW
h)
Load on highest price day
Highest prices
Figure 4. Characterizing Hourly Price Responsiveness -- Flexibility Parameters
• Ability to shift load within and between days
• E.g., % shift in load within a day in response to given % change in relative price
• Source of information--EPRI StatsBank
kW
h
Effect of Within-Day Flexibility Parameter -- One High-Price Hour
0
200
400
600
800
1000
1200
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
0.00
0.05
0.10
0.15
0.20
0.25
0.30
$/k
WhReference load
FP = .10
FP = .25
RTP Price
Table 1. Effect of Demand ResponseOne hour at $750/MWh
Low Medium High
Demand response (MW) 484 1,065 1,935(Percent of total ISO load) 1.2% 2.5% 4.6%
Price reduction ($/MWh) 80$ 160$ 256$ (Percent) 11% 24% 42%
Cost reduction ($million) 3.3$ 6.7$ 10.8$
Market share and demand responsiveness scenarios
Table 2. Total Effect of Demand Response May - August 2000 (Alternative Scenarios)
Low Medium HighAverage price reduction, summer peak ($/MWh) 12.1$ 24.5$ 40.2$ (Percent) 5.7% 11.6% 19.1%
Total cost reduction, high-price days ($million) 344$ 701$ 1,158$ (Percent) 4.7% 9.5% 15.7%
Figure 4. Sensitivity AnalysisTradeoff between Market Share and Price Responsiveness to achieve
given price reduction (from $750/MWh)
0%
5%
10%
15%
20%
25%
30%
35%
0 0.05 0.1 0.15 0.2 0.25 0.3Average price elasticity
Mar
ket
sha
re o
f h
ou
rly
pri
cin
g
24% price drop 42% price drop