IESOTP 271-4b. Review of Generation Guarantee Programs (SE-111) Technical Panel August 13, 2013

Transcription

1 IESOTP 271-4b Review of Generation Guarantee Programs (SE-111) Technical Panel August 13, 2013

2 Agenda SE-111 Review of Generation Cost Guarantees: Why now? Objectives of SE-111 Background Scope of Consultation Discussion Paper Timelines 2

3 SE-111 Review of GCGs: Why Now? SE-111: Why look at this now? With the launch of the enhanced DACP in Oct, 2011 IESO committed to conduct a review after a period of time to consider the effect of the enhancements on the RT-GCG and the interplay between the two programs Market Surveillance Panel (MSP) recommendations Electricity Market Forum, SE-105 HOEP review recommendations: review the RT-GCG 3

4 Objectives of SE-111 Objectives: 1. Assess the need for a real-time market-based mechanism to bridge the gap between day-ahead (DA) and real-time (RT) market demand 2. Address deficiencies identified by the IESO, market participants (MPs), Market Surveillance Panel (MSP) and Electricity Market Forum recommendations 3. Improve the effectiveness (economic, operational efficiency) of DA and RT scheduling decisions and their interaction 4. Where practicable, reduce the administrative effort for both the IESO and market participants 4

5 Background RT-GCGs: 2003 to 2009 Reliability initiative to encourage non-quick start generators to commit to hourly schedules in advance of real-time dispatch prices Reduce the need for the IESO to take out-of-market control actions in response to RT changes (MR-00235) Provided assurance of recovery of fuel costs of startup, ramping to MLP and operation during its MGBRT if total market revenues received failed to cover these costs Costs were submitted after the fact 5

6 Background cont d DACP and DA-GCGs: 2006 to 2011 Day-ahead version of the guarantee program Provided DA commitment to eligible generators who were economically scheduled at their full MLP and MGBRT Fuel costs plus operating and maintenance costs related to start-up and operation recoverable if realtime market revenues failed to cover these costs Costs were submitted after the fact 6

7 Background cont d Interim Changes to RT and DA GCGs: 2009 to current Dec 2009 implemented MR-00356: Interim set of rule changes which included more stringent eligibility requirements for the RT-GCG program (e.g. economically scheduled for 50% of MGBRT) Enhanced DACP: 2011 to current Oct 2011, enhancements to the DACP included: Optimization of energy and operating reserve over a 24 hr dispatch day Optimization using total costs via three part offers (i.e. start-up, speed-no-load, incremental energy costs) at the time of unit commitment 7

8 SE-111:Scope of Consultation Phase I Review and Recommendations Identification of issues (through Discussion Paper) Determine the need for a real-time market based generator guarantee program Materiality assessment: materiality, pervasiveness and trend of issue Impact assessment: cost and benefits of proposed solutions, comparison against the objectives of SE- 111 Final, prioritized list of issues and final recommendations 8

9 SE-111:Scope of Consultation cont d Phase II Market Rule and Market Manual Development Market rules and manuals to be drafted in consultation with stakeholders and in parallel with the TP process Market Manuals to be drafted prior to seeking recommendation from the TP on the draft rules Phase III Training and Implementation Upon completion of Phase II, IESO and stakeholders to determine if further training is required 9

10 SE-111 Discussion Paper SE-111Discussion Paper provides a preliminary list of RT-GCG and DA-PGC issues that will form the basis of the stakeholder engagement Preliminary issues list posted on May 30 th has 12 issues including: 1. RT issue#1: Assessment of the need for a RT-GCG 2. RT issue#2: After the fact cost submissions 3. RT issue#4: MR-00363: Synchronization of Non-Quick Start Units ability to deny RT-GCG starts during SBG 4. DA-PCG issue#10: Hour Ending 1 DA-PCGs issue due to ramping issues (mentioned in MR-00396) 5. RT/DA Issue #12: Ramp-down CMSC 10

11 SE-111 Discussion Paper cont d Discussion Paper requested feedback on the preliminary list of issues: 1. Are there any issues identified which you believe do not warrant any changes? Please provide rationale. 2. Are there any issues which you believe should be added to the preliminary list of issues? If yes, please provide a detailed description of the issue and rationale. 11

12 Timelines Date July 18, 2013 *completed* Aug 8, 2013 Aug 22, 2013 Q3 Q3/Q4 Q4 To begin in Q4 Activity Phase I: Stakeholder session #1 to discuss comments, IESO responses and proposed analysis Stakeholders to provide written feedback on proposed materiality analysis Posting of IESO responses to Aug 8 feedback and final materiality analysis to be performed Stakeholder session #2 to discuss findings of materiality analysis, possible solutions and proposed benefits analysis Stakeholder session #3 to discuss benefits analysis findings and preliminary recommendations Stakeholder session to discuss final recommendations Phase II: Market manual details and market rule amendment process TBD Phase III: Training and implementation, if necessary 12

13 Thank you Additional Information: Link to SE-111 webpage Link to Draft Stakeholder Engagement Plan Questions? 13