CA ISO Energy Imbalance Market –
What Does it Mean For Developers?
Stacey Crowley, Director of Regional Affairs, CA ISO
Don Fuller, Director of Strategic Alliances, CA ISO
Mark Rothleder, VP, Market Quality and Renewable Integration, CA ISO
Sara Birmingham, Director of Western Policy, SEIA
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available on its website: www.seia.org.
August 12, 2014
© 2014 Solar Energy Industries Association®
2
Briefing on Energy Imbalance Market
Solar Energy Industries Association
August 12, 2014
Agenda
• Overview of the ISO and the western energy market
• Overview of energy imbalance market
– Market design
– Implementation status
– Next steps
• Governance and the Transitional Committee
Page 4
Overview
CALIFORNIA ISO AND
WESTERN ENERGY MARKET
California ISO
 60,703 MW of power plant
capacity (net dependable capacity)
 50,270 MW record peak demand
(July 24, 2006)
 27,589 market transactions
per day
 26,024 circuit-miles of
transmission lines
 30 million people served
 246 million megawatt-hours of
electricity delivered annually
Page 6
Tomorrow’s energy network
• Energy and
environmental goals
drive change
• New operating
conditions emerge
• Flexible resource
capability
• Advanced technologies
• Demand Response,
Storage and Energy
Efficiency
• Vehicle to Grid
Integration
Page 7
Tomorrow’s energy network
April 29, 2014
Renew able
Resources
Net
Dependable
Capacity*
(MW)
Peak
Peak
Production Production
(MW)
Tim e
Daily
Production
(MWh)
Solar Thermal
1,058
15:48
607
5,612
Solar PV
4,336
12:56
3,798
35,049
Wind
5,892
11:23
2,248
22,499
Small Hydro
1,255
19:15
349
5,991
Biogas
384
4:42
186
4,069
Biomass
640
15:40
308
7,097
1,561
5:04
894
21,318
Geothermal
Total
Renew ables
15,126
101,635
Solar All Time Peak: 4,801 MW on 7/21/2014
Wind All Time Peak: 4,769 MW on 4/12/2014
Page 8
Tomorrow’s energy network
May 6, 2014
Renew able
Resources
Net
Peak
Peak
Dependable
Production Productio
Capacity*
Tim e
n (MW)
(MW)
Daily
Production
(MWh)
Solar Thermal
1,058
11:55
449
2,326
Solar PV
4,336
11:15
2,828
23,723
Wind
5,892
23:30
4,191
82,401
Small Hydro
1,255
20:06
353
6,319
Biogas
384
3:49
180
4,187
Biomass
640
23:45
274
6,101
1,561
22:18
900
21,322
Geothermal
Total
Renew ables
15,126
146,379
Solar All Time Peak: 4,801 MW on 7/21/2014
Wind All Time Peak: 4,769 MW on 4/12/2014
Page 9
A balancing authority (BA) is responsible for
operating a transmission control area.
• Each matches
generation with load
and maintains electric
frequency of the grid
• 38 balancing authorities
in the western
interconnection
• Today, each BA
balances load and
generation separately
from other BAs
Page 10
ENERGY IMBALANCE
MARKET
Energy Imbalance Market is an important to tool
for renewable integration
• Builds on existing market
platform
• No critical mass required
• Easily scalable, offering
low-cost, low risk option to
new entities with no exit
fees
• Preserves BAA autonomy,
including compliance,
balancing, and reserve
obligations
Page 12
Today vs. EIM
Today:
Each BA must balance loads and
resources w/in its borders.
BA
In an EIM:
The market dispatches resources
across BAs to balance energy
BA
BA
BA
BA
BA
BA
BA
• Limited pool of balancing resources
• Diversity of balancing resources
• Inflexibility
• Increased flexibility
• High levels of reserves
• Decreased flexible reserves
• Economic inefficiencies
• More economically efficient
• Increased costs to integrate
wind/solar
• Decreased integration costs
Page 13
Benefits of an energy imbalance market
• Enhances integration of renewable resources by
dispatching every five minutes across a larger region.
• Provides reliability and economic benefits to all
participants.
– Reliability through real-time visibility across all
balancing authorities
– Geographical diversity of load and resources
– Balances in real-time with least cost generation
• Additional benefits outlined in FERC staff paper on
qualitative assessment of reliability benefits of EIM:
– http://www.caiso.com/Documents/QualitativeAssessmentPotentialReliabilityBenefits-WesternEnergyImbalanceMarket.pdf
Page 14
EIM provides significant net benefits
annual benefits
ISO/PacifiCorp study
(in millions)
ISO/NV Energy study on
incremental benefits
(in millions)
$21.4 - $129.0
$9.0 - $18.0 (2017)
$15.0 - $29.0 (2022)
start-up costs
approx. $20.0
($2.5 to ISO)
approx. $11.20
($1.10 to ISO)
annual on-going costs
approx. $3.00
approx. $2.60
Benefits primarily derived from:
• Reduced flexibility reserves
• More efficient dispatch
• Reduced renewable energy curtailment
EIM extends ISO real-time market functionality to EIM
participants
• Dispatch accounts for operating characteristics and
constraints of participating resources
• ISO offers advanced variable energy resource (VER)
forecasting and scheduling
• Optimizes 15-minute and 5-minute dispatch
• Congestion management
• Efficient use of transmission offered by EIM entity
Page 16
EIM stakeholder process and milestones
ISO and PAC
Stakeholder
Processes
March
2012
April
2013
ISO Tariff filing, PAC OATT filing, and
FERC decisions
Transitional Committee development
Preparations for simulation
Nov-Dec
2013
April
2014
Market
Simulation &
Implementation
July 8
2014
Go-Live
Oct 1
2014
Page 17
STATUS OF IMPLEMENTATION
Page 18
FERC tariff approval supports ISO and PacifiCorp EIM
ISO
• Transmission reciprocity approach for EIM transfers
• Resource sufficiency or “leaning”
• Allocation of uplift charges based on EIM transfers
• Settlements and billing according to the ISO tariff
• Administrative fee charged to EIM participants
PacifiCorp
• Accepted use of LMP pricing for imbalance service
provided under OATT Schedules 4 and 9
• Approved designation of two LAPs in PacifiCorp’s BAAs
• Direct PacifiCorp to eliminate additional transmission
charge for EIM transactions for participating resources in its
BAAs
Page 19
Resources schedules,
NSI (non-EiM BAAs)
PEAK
RC
PAC
Metrological
Data
PAC
CAS
VER Forecast
Non-EIM/External BAAs
Demand Forecast
Master File Data
EIM Demand Forecast
SIBR
BSAP
Base Schedule
EIM
PR SC
Base Schedules
EIM Approved Generation &
Transmission outages
EIM Generation and
Transmission Outages and
Derates
DOTs, DOPs
NSI (PACE, PACW)
EIM
PR SC
MQS
Settlement
& invoice
(PR)
MRI
Settlement
Market FNM
EIM constraints,
resources MW,
Load forecast
EIM Reliability Operator User Interface
· Load forecast bias
· Manual Dispatch
· Dispatch Instruction approve/decline
· Contingencies, nomograms – activation
· Contingency Event Status (Flag)
EMMS
WECC Static CIM file, Supplemental CSV files
DA awards, 15-min Awards,
5-min DOTs
Static CIM file, Supplemental Info
PEAK
RC
EMS FNM
Telemetry/SCADA points
Settlement
results
DReAMS/Settlement
Settlement Statement [lump sum]
*Resource based Instructed deviation
MV90
ISO
EMS
Direct CIM Import
Meter data
OMAR
(Metering
System)
Meter Interval data
5-min, 15-min EIM market flows,
5-min, 15-min Selected resources
market schedules
Telemetry/
SCADA measurements
Settlement
& invoice (NPR
& Load)
Telemetry, SE solution status, SE Solution CIM file
PAC
EIM SC
5-min rate of change MW limits
ADS
Congestion cost split by BAA
DOTs, DOPs,
NSI (PACE, PACW)
EIM PR
SC
(Child)
PAC EIM
SC
(Parent)
EIM Entity
Reliability Operator Instructions
Base schedule,
load mismatch,
Flex Ramp infeasibility
transmission overloads,
dynamic schedules per tie
LSE
(Child)
All Base Schedules
& Bid Ranges
OMS
IFM/RTM
Decline
Instructions
PAC
EMS
Supply, Import, Export
Base Schedule
Non-EIM/
External BAAa Outages
Master File Data
Awards, Prices
EIM NPR
(Child)
Base Schedule
Economic
Bids
Economic Bids, EIM Base Schedules
EIM Demand Forecast, Flex Ramping Requirements, VER Forecast
ISO Forecasting
System
VER Forecast
Base Schedules,
EIM
PR SC
Load mismatch,
Flex ramp mismatch,
Transmission overloads,
s
Dynamic schedules per tie Price
s,
ard
Aw
Inter-tie schedules changes for EIM BAAs
PAC
EIM SC
Scheduling Limits, Derate Limits
Mkt nodal LMPs
Mkt binding constraints (trans., inter-ties)
Mkt system constraints (including flex ramp)
5min, 15-minNSI (PACE, PACW, CAISO)
5-min, 15-min Load forecast (PACE,PACW,
CAISO)
Resources schedules, NSI (non-EiM BAAs)
OASIS
(Public)
CMRI
Results
RDT
(Form)
MF
Master File Data
ISO
Scheduling
System
Market Results
• New systems:
o Base schedule
aggregation portal
(BSAP)
o EIM Reliability
Operator User
• Network model includes
PacifiCorp region
• Integration and
functional testing
underway
WIT
Tool
PAC ETCC-like
(Interchange
scheduling
and derated
limits)
Settlement
data
EIM Network Model
and System Changes
Telemetry/SCADA measurements
PAC
EMS
PAC System
ISO Existing Systems requiring modifications
BPA
New ISO EIM-related System
PEAK RC system
BPA system
Page 20
Last change: 5/22/2014
Market Simulation July 8-Sep 12
ISO Board
meeting Sept 18
EIM Entity
Testing
Jul 8
Structured Testing
Jul 28
Unstructured
Testing
Aug 25
Regression
Testing
Sep 12
EIM
Operation
Oct 1
• Regular participant conference calls
• Simulation will also test benefit metric models
• Market Simulation plan posted on ISO website:
http://www.caiso.com/Documents/Fall2014ReleaseMarketSimulationPlan.pdf
Page 21
EIM Operations Readiness
• Market desk staff selected
• PAC and ISO operators
started user interface
validation
• PAC and ISO Operators
provided positive
feedback on the EIM
displays
• Procedures and market
simulation scenarios
reviewed
• Draft EIM Business
Practice Manual
Page 22
Governance
Goal: To provide a meaningful voice to in-state and
out-of-state entities during the implementation of EIM
and to provide recommendations to the Board on the
design of an independent EIM governance structure.
Page 23
Governance proposal designed to give regional entities a
voice in decision-making
STEP 1 – 2014-2015
Organize sectors
nomination/ranking
STEP 2
Go live
Board decision &
committee start-up
Long term governance
structure
Advise on early operational phase of
EIM
•
Independent
membership
Develop independent EIM governance
proposal
•
Specific delegated
authority
Stakeholder Transitional Committee
•
Advisory committee to ISO Board
•
11-12 members
•
Open meeting policy
Page 24
Transitional Committee appointed in May 2014
1. Stephen Beuning, Xcel Energy, Inc.
2. Tony Braun, Braun Blaising McLaughlin & Smith, PC
xxx(representing CA Municipal Utility Association)
3. Dede Hapner, Pacific Gas and Electric Company
4. Natalie Hocken, Representative from EIM Entity PacifiCorp
5. Travis Kavulla, Commissioner, Montana Public Service
Commission
6. Kevin Lynch, Iberdrola Renewables
7. Mark Smith, Calpine Corporation
8. Walter Spansel, Representative from EIM Entity NV Energy
9. Rebecca Wagner, Commissioner, Public Utilities Commission of
xx Nevada – CHAIR
10. Robert Weisenmiller, Chair, California Energy Commission
11. Carl Zichella, Natural Resources Defense Council
Summary
• EIM provides reliability and financial benefits to
California and other participants in the West
• CAISO proposal based on existing platform provides a
more flexible and scalable approach at far less cost to
other balancing authorities
• EIM implementation helps facilitate renewable
integration
• CAISO Transitional Committee (regional members) will
offer recommendations on independent governance
structure for EIM matters
Page 26
Computer based training (CBT) is available
for EIM
• Introduction to the Energy Imbalance Market
This Computer Based Training provides a high level overview of the
Energy Imbalance Market
http://content.caiso.com/training/Introduction%20to%20EIM/My%20Arti
culate%20Projects/Introduction%20to%20the%20Energy%20Imbalanc
e%20Market/player.html
• How the Energy Imbalance Market Works –
This Computer Based Training describes the roles and responsibilities
of the key players in EIM and the business processes that will take
place.
http://content.caiso.com/training/HowEIMWorks/player.html
Page 27
Questions
Please type your questions into the lower left corner
of the window.
Click the “send” button to submit.
August 12, 2014
© 2014 Solar Energy Industries Association®
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