the central america electricity market cartagena de indias colombia october 2003 apex meeting 2003...

The Central America Electricity MarketCartagena de Indias ColombiaOctober 2003

APEX MEETING2003

Pablo Corredor AvellaManager of National Dispatch Center

Interconexión Electrica S.A. ISA

APEX 2003 Cartagena de Indias Colombia

The Central America Electricity Market

Table of ContentsGovernancePrinciplesThe MarketSystem and Market OperationSettlementFinancial Guarantees



Governance



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

Regional Electricity Market

Regional Electricity Market

NationalS & MOs

NationalRegulators

GOVTS

CRIERegional Regulato

r EORRegiona

l S & MOs



Principles



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

COMPETITION

GRADUALLY

RECIPROCITY

PRINCIPLES OF THE TREATY



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

PRINCIPAL ISSUES

The objective is to create a Regional

Wholesale Electric Market

It will not eliminate the existing National Markets

The Regional Electricity Market is a “Seventh Market”

Qualified Agents from any of the six countries will participate



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

OBJETIVES OF THE REGIONAL MARKET

Have larger generating plants

Exchange of surplus power

Climate and load diversity

Increased quality

Lower prices

More private investment sources



The Market



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

LeónContracts MarketBilateral agreement

Duration: Minimun one day

Contracts MarketBilateral agreement

Duration: Minimun one day

REGIONAL MARKET

REGIONAL MARKET

Spot MarketDay Ahead Market

Injecction offers and retirement bids (price based)


Nodal prices

Nodal prices reflect short run marginal costs and constraints

Spot MarketDay Ahead Market

Injecction offers and retirement bids (price based)


Nodal prices

Nodal prices reflect short run marginal costs and constraints



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

Financial Physical Flexible

CONTRACTS MARKET CONTRACTS MARKET

Non-Firm

Non-Firm

Firm

Firm



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

They can be hedged in the Spot Market

The Transmission Services can be offered

FIRM

NON-FIRM

CONTRACTS CHARACTERISTICS

They can be hedged in the Spot Market

Congestion RightFirm Energy Delivery



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

Injection offersInjection offers

Retirement bits

Country 1

Day Ahead Dispatch

Scheduled Transactions Nodal Prices

Country 2

SPOT MARKET

Retirement bits

EOR



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

$/MWh

E (MWh)

1 2 3 54

$/MWh

E (MWh)

51 42 3

Injection Offers Injection Offers

Retirements Bids

Retirements Bids

Transmission

Services OffersTransmission

Services Offers



System and Market Operation



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

,

,

First National Dispatch

RegionalDispatch

NationalAgents

Final National Dispatch

Transactions and Nodal Prices

REGIONAL DISPATCH



Subject to: Reserve Requirements; Transmission Constraints and Voltage Requirements

Max s,i,k (Price segment s, transaction i, period k * Psegment s, transaction i, period k)

Aggregated Offer Injection Curve

Aggregated Bid Retirement Curve

Nodal Market Clearing Price

S&MO1 S&MO2

PRORCL

Flow12 = RV´MWh

Offers

SL1

P1

MWh

Offers

SL1

P1

MWh

P2

P1PR1

RV´

PR

PR

PR1

PR1

RV

PR1RV´

RV´



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

REAL TIME OPERATION

Security, Quality, Reliability and Economy of the Regional Electric System

Security, Quality, Reliability and Economy of the Regional Electric System



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

REGIONAL ANCILARY SERVICES

Reactive Power

Reactive Power

Operating Reserves

Operating Reserves

Black Start

Black Start

Load Shedding

Load Shedding



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

REAL TIME IMBALANCES

Node

Meter Ir

ScheduledInjection

Meter Rr

ScheduledRetirement

Retirement Imbalance = Rr - Rp

Injection Imbalance = Ir - Ip

Rr : Measured Retirement

Rp : Scheduled Retirement

Ir : Measured Injection

Ip : Scheduled Injection



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

POSTDISPATCH

Injection offers and Retirement BidsPrice

E (MWh)IrPOST

DISPATCH

MODELMeasured Injections

Measured Retirements

Regional Transmission Grid

Nodal

Ex-Post

Price



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

Ir1 Regional Transmission

Grid

Real LossesIrn

......

Rr1

Rrn

LossesalRrIr _Re

It´s necessary to relax the measured injections, due to the measure errors and the losses

Max i,k (Price transaction i, period k * P transaction i, period k)- i,k (FacAdju * transaction i, period k)



Settlement



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

Retirement:

(Scheduled Retirement - Contract)*Nodal Price

Retirement:

(Scheduled Retirement - Contract)*Nodal Price

Contracts and Spot Market Settlement

Contracts and Spot Market Settlement

Injection:

(Scheduled Injection - Contract)*Nodal Price

Injection:

(Scheduled Injection - Contract)*Nodal Price



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

IMBALANCES TYPES

Normal Significant Major

AUTHORIZEDUNAUTHORIZED



FinancialGuarantees



Golfo de

Panama

PanamaCanal

Suyapa

Panama

Guate Este

Nejapa

Guate Norte

Cañas

Ticuantepe

Parrita

Pavana

Rio Claro

Veladero

Cajón

Rio Lindo

Pepesca

15 de Sept.

Ahuachapán

León

Cash

Trust Company

Securities

Credit Letter

In Guarantee of: Expected Transactions in the Day Ahead Market*(1 + %)

Regulated Charges in the Market

Penalties

GUARANTEES IN THE REGIONAL MARKET

the central america electricity market cartagena de indias colombia october 2003 apex meeting 2003...

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