NYISO Demand Response Programs: Enrollment Donna Pratt Demand Response Market Product Specialist New York Independent System Operator DR-Expo Chicago, Illinois October 16-17, 2007
New York Independent System Operator Manages New York s bulk electricity grid a 10,775 mile network of high-voltage transmission lines that carry electricity throughout the state. Administers the Empire State s wholesale electricity markets, where more than $50 billion has been transacted since 1999. Interconnects to all major areas of the Northeast: North: Hydro-Québec South: PJM East: ISO New England West: Independent Electricity System Operator of Ontario Has included demand response resources in its capacity market since beginning operations in December 1999. 2
NYISO Markets Two-settlement, Day-ahead and Real-time, cooptimized markets for: Energy Sufficient generation to supply electricity demands Regulation Balancing of load and generation every 6 seconds Operating Reserve Supply ready to respond immediately to unexpected generation or transmission failures Installed Capacity Market Loads required to secure sufficient generating capacity equal to forecasted peak load plus a margin ISO-run auction or bilaterals Transmission Congestion Cost Market Auction-based market to hedge day-ahead congestion costs 3
NYISO DR Programs Reliability-based programs NYISO controls activation Purpose: provide load reductions to supplement generation when operating reserves are forecast to be short Emergency Demand Response Program (EDRP) ICAP-Special Case Resources (ICAP SCR) Economic-based programs Resource determines when to participate through bidding Purpose: load reduction acting as and competing with generation Day-Ahead Demand Response Program (DADRP) Demand-Side Ancillary Service Program (DSASP) - 2008 implementation 4
DR Program Comparison EDRP Low Risk Low-Moderate Return Activation not guaranteed No payment if no activation DADRP Moderate Risk Moderate Return Scheduling based on bids ICAP SCR Moderate Risk Moderate-High Return Payment regardless of activation Activation not guaranteed DSASP High Risk High Return Scheduling base on bids Return EDRP Activation Frequency DSASP Real-Time DSASP ICAP SCR DADRP Risk DADRP ICAP SCR EDRP 2-hour Day-Ahead advance Notification Time 5
Who Can Participate? If you have interruptible load: The Emergency Demand Response (EDRP) program ICAP Special Case Resources (SCR) program The Day-Ahead Demand Response (DADRP) program If you have standby generators: The EDRP program The SCR program If you have very flexible operations and automated controls, beginning in spring 2008: Demand-Side Ancillary Service Program (DSASP) Real-time reserve (5-minute response) Real-time regulation (6-second response) Standby generators may participate in non-synchronized reserve markets 6
How to Enroll End-use (retail) customers enroll in NYISO programs through a NYISO (wholesale market) Customer NYISO (wholesale market) Customers include: Transmission Operator local distribution utility Load-Serving Entity competitive energy supplier Aggregator companies who transact with NYISO on behalf of end-use customers Also known as Curtailment Service Providers Direct Customer buys and sells in NYISO market 7
8 0 200 400 600 800 1000 1200 1400 1600 1800 2000 May-01 Aug-01 Nov-01 Feb-02 May-02 Aug-02 Nov-02 Feb-03 May-03 Aug-03 Nov-03 Feb-04 May-04 Aug-04 Nov-04 Feb-05 May-05 Aug-05 Nov-05 Feb-06 May-06 Aug-06 Nov-06 Feb-07 May-07 Aug-07 Date MWs 0 500 1000 1500 2000 2500 3000 Customers Total MWs Total Customers Program Growth 2001-2007
The New York Independent System Operator (NYISO) is a nonprofit corporation that began operations in 1999 to facilitate the restructuring of New York s s electric industry. The NYISO operates the state s s bulk electricity grid and administers New York s s wholesale electricity markets. www.nyiso.com