ontario electricity market evolution, activity and insight enbridge … · 2015. 3. 4. · ieso...

Ontario Electricity Market Evolution, Activity and Insight Enbridge – a leader in renewable energy

– The following presentation has been prepared by Enbridge Inc. (“Enbridge”). This presentation has been prepared for informational use only and should not be copied or distributed to any other party without Enbridge’s express written consent. Enbridge makes no representations or warranties whatsoever as to the accuracy or completeness of this presentation and Enbridge expressly disclaims any liability whatsoever as a result of any person’s reliance upon statements or information set out below.

Enbridge – Green operations

Ontario Electricity Market Evolution, Activity and Insight

Over the past 65 years, Enbridge has become a leader in the safe and reliable delivery of energy in North America.

February 26, 2015

Ontario Electricity Market - Operational History


Pre - September 2013, wind and solar generators produced power based upon their resource availability and their equipment performance and availability. Market Changes up to Sept ‘13: Economic slow down, Declining energy intensive customers, conservation program implementation plus new and incremental capacity required the IESO and Ministry of Energy to adapt, seeking contract changes through the OPA to be more efficient (both operational & cost). Through OPA contract negotiations & IESO Market Rule changes, Wind Generators were changed from Intermittent to Variable Generators and are now subject to dispatch. With the Market Rule change coming into effect on September 11th 2013, almost immediately, “Transmission connected” wind generators started being curtailed to varying amounts to improve both the economics of the Ontario Electricity Market and the reliability of the grid.

February 26, 2015

Operational History


BEFORE Sept 11, 2013 Constraint Dispatch – no dispatching of wind/solar Economic Dispatch – no dispatching of wind/solar Shutdowns/Outages – scheduled with IESO as per Market Rules

February 26, 2015

AFTER (presently) Constraint Dispatch – transmission connected wind and solar dispatched to varying amounts on 5 min dispatch intervals to ensure IESO controls reliability Economic Dispatch – by real time market pricing, with floor prices included, 5 min interval dispatching transmission connected generators. Shutdowns/Outages – Scheduled with the IESO as per the Market Rules

Operational History – Current Experiences


Dispatching is not as seasonal as expected. 1. Expected to mostly occur in the spring (low heat demand, no cooling demand, high

hydro production) 2. Curtailment has occurred in every month since Sept 11, 2013. 3. Spring and Fall appear to be the highest periods so far 4. As more variable generation comes online the levels of dispatches will increase

Dispatch “timing.” Relatively as expected. 1. Weekends & holidays see higher levels of dispatch; tied to decreases in demand. 2. Night-time and top of the hour generally higher curtailment than other periods. Top

of the hour curtailment involves 10 to 15 minutes before and after the top of the hour as the IESO maneouvers the import and exports.

February 26, 2015

Operational History – Current Experiences


February 26, 2015

Price Depending on your company’s policy and/or pricing strategy will dictate to a great degree the volume of dispatch instructions you will need to manage.

1. Pricing at floor pricing does not make a wind farm immune to curtailment. 2. Pricing above the floor (either wind or nuclear floor price) will result in more dispatch

instructions.

Location Depending on your wind farm’s location, the amount of curtailment instructions to manage can vary too.

1. While within the more diverse transmission grid and closer to demand centres, locations in southwestern Ontario “still” see local congestion

2. Generation assets long distances from customers or with transmission constraints will see a lot of congestion based curtailment (i.e. NW Region)

3. Negative pricing more prevalent at the top of the hour (linked to import / export scheduling)

IESO Shadow Pricing Data, MCP and Ontario Demand


February 26, 2015

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Real time Market Price

Ontario Demand

Dispatch Management


February 26, 2015

For each connection point (some generation facilities may have multiple connection points), you can have up to 288 instructions per day, a combination of dispatch and release. For operations:

• Automation of the curtailment process between the dispatch workstation and your windfarm SCADA systems

• Most installed capacity has ability to be programmed to take remote set point for total wind farm output. All new wind farm software should have this option at time of purchase.

• IESO Data Available to help guide you to the best business and operations decisions For settlements:

• build platforms and models to sort and manage data • Train and assign a settlements person to qualify, verify, and manage the process and potential disagreements (NOD’s).

IESO SBG Forecast


February 26, 2015

IESO Variable Generation Forecast Summary Report


February 26, 2015

Other IESO Tools to familiarize with…


Public Reports Real time Shadow Prices; Ontario Wind Forecast Report; Real Time Market Prices; Variable Generator Tie Breaking Ranking; Private Reports Predispatch Constrained Schedule; Physical Market Preliminary Data File; Physical Market Preliminary Settlement Statement; Variable Generator 5 minute forecasts Note; for many of the IESO reports, they are only stored on the IESO site for 30 to 45 days!! If you want to use this data later you need to have a means of storing yourself

February 26, 2015

Dispatch Management


February 26, 2015

While dispatchable variable generation only comprises about 5% of the provinces generation:

• Diverse - Spread out in all regions of the Province • Technologically up to date – high automation, little operator intervention • Nimble and very quick…turbines can swing almost 100% of load in less than a minute! Wind farms have very high ramp rates

Wind generation has taken on a whole new role in the Ontario electricity system. It’s an actively used resource that’s dispatched regularly to balance the supply against demand.

IESO and OPA Settlement Process


February 26, 2015

IESO Settlement Process •Preliminary Settlement Data appears 10 Business Days after the Trade Date •Generators have the next 4 Business days in which to review and file a “Notice of Disagreement” if required

•Final Settlement Statements are prepared a further 6 business days after the NOD timeframe closes

OPA (pre-merger) Settlement Process

•OPA receives daily data from IESO after the final settlements are issued, can calculate possible foregone energy for each day

•OPA issues final settlements for foregone energy up to 40 business days after the close of the month

•OPA issues final statements for generation 1 month later • Issue: OPA relies on data from IESO • Hopefully post merger it will be easier to deal with these issues



February 26, 2015

Congestion Management Settlement Credits - IESO •CMSC adjust market participants’ settlements for operating profit loss due to uneconomic dispatch

•Constrained “off” or Constrained “on”. Constrained payments can be clawed back by OPA

•Negative CMSC •Need to model each interval to determine if a generator can expect CMSC or not

Excluded Delivered Electricity - OPA

•Excluded Delivered Electricity is where the OPA claws back generating profit when operators are not following dispatch instructions • Issue with this is the IESO is not providing OPA with adequate data for the OPA to know when a generator cannot follow dispatch instructions due to “technical” issues (allowed by the IESO / Market Rules)



February 26, 2015

Modelling •CMSC eligibility •Foregone energy calculations •IESO (AWS Truepower) Forecast vs. Generator Forecast

Receive the FECIR reports daily from the OPA to ensure Foregone energy calculations are correct Review IESO Preliminary Settlement Statements – Submit NOD’s when required

CMSC Modelling – Data to check CMSC Eligibility


CMSC Data Sources

Bid / Offer

IESO Forecast

IESO Dispatch (level and instruction)

Pricing – MCP and Shadow Pricing

Real Production

IESO Settlement

Data

February 26, 2015

Need to check for Constrained on / off Check for CMSC Applicability Check for CMSC accuracy based on MCP and bid /offer Large volumes of data for each day, all done in 5 minute increments

Foregone Energy Modelling


Foregone Energy Check

IESO Forecast

IESO Dispatch

Instructions

Actual Production

Met Tower Data + Power Curves

February 26, 2015

Need to monitor your foregone energy, relative to contract caps Need to verify the accuracy of the IESO forecast. For each specific location we have seen fluctuations in the forecast accuracy. The IESO is targeting “global” forecast accuracy

IESO and NERC Operational Impacts


New Online Notice of Disagreement “NOD” Process Ontario Reliability Compliance Program http://www.ieso.ca/Pages/Participate/Reliability-Requirements/Reliability-Standards-Compliance.aspx Ontario Bulk Electricity System – NERC Standards Generators should have received notice late May 2014 whether their facilities are a part of the Bulk Electricity System (BES) or not IESO NERC Reliability Standard Mapping Tool NERC BES Compliance due July 1, 2016 NERC CIP Guidelines CIP Gap Analysis and Compliance due April 1, 2016

February 26, 2015

http://www.ieso.ca/Pages/Participate/Reliability-Requirements/Reliability-Standards-Compliance.aspx

http://www.ieso.ca/Pages/Participate/Reliability-Requirements/Reliability-Standards-Compliance.aspx

IESO and NERC Operational Impacts


Stay Informed and be active - IESO Stakeholder Initiatives - IESO Bulletin – weekly information regarding upcoming IESO events, initiatives and changes to the Market Rules - IESO CIP Standards Transition Forum - IESO RSSC; Reliability Standards Standing Committee

• Notifying participants of reliability-related information on new and developing reliability standards • Providing a forum to discuss and develop consensus comments on new and developing reliability standards • Engaging participants in the standard development process of NERC and NPCC

February 26, 2015

ontario electricity market evolution, activity and insight enbridge … · 2015. 3. 4. · ieso...

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