ERCOT Nodal 101 · Congestion Revenue Rights. Day-Ahead Market. Reliability Unit Commitment....

ERCOT Nodal 101

This presentation provides a general overview of the Texas Nodal Market and is not intended to be a substitute for the ERCOT Protocols, as amended from time to time. If any conflict exists between this presentation and the ERCOT Protocols, the ERCOT Protocols shall control in all respects.

For more information, please visit:http://www.ercot.com/mktrules/nprotocols/

PROTOCOL DISCLAIMER

Housekeeping

• Restrooms

• Refreshments

• Attendance sheet

• Exam

• Questions Please turn off cell phones & other electronics

A high-level overview of the ERCOT Nodal Market for all Market Participants and ERCOT personnel.

Target Audience

ERCOT Nodal 101:

• Identify major components of the Nodal Market

• For each component of the Nodal Market, describe

• Purpose

• Inputs

• Outputs

• Processes

Course Objectives

Upon completion of this course you will be able to:

Modules in this course include:

Introduction to ERCOT and MarketModule 1

Module 2

Module 3

Module 4

Module 5

Module 6

Locational Marginal Pricing

Congestion Revenue Rights

Day-Ahead Market

Reliability Unit Commitment

Real-Time Operations

Introduction to ERCOT

• Key features of the ERCOT Grid

• ERCOT Responsibilities

• Reliability and Markets

• Capacity and Energy

• Congestion Management

• Network Modeling

• Market Overview

Overview

Topics in this lesson . . .

• Represents 90% of Texas Load

• 77,000 MW of generation capacity

• 46,500 miles of transmission lines

• Electrical island with several DC Ties

ERCOT Introduction

Key Features of the ERCOT Grid

• Match generation with demand• Operate transmission system within established limits

ERCOT Responsibility

ERCOT’s Primary Responsibility is Reliability

Execute competitive markets for reliability services

• Markets support reliability• Reliability makes the markets

possible

ERCOT Operational Concepts

Reliability and Competitive Markets

ERCOT finds the balance between Reliability and

Economics

Energy and Capacity

ERCOT dispatches Energy to follow the

system demand

Energy and Capacity

Capacity

Forecast

ERCOT must also ensure sufficient Capacity is on-line

to meet the forecasted demand

More about Capacity

Capacity Reserved for Ancillary Services

Ancillary Services needed to respond quickly to changing system conditions

Acquired through competitive markets

Ancillary Service Capacity

System Capacity

Non-Spin Reserve

Regulation Reserve

Responsive ReserveThree types of Ancillary Services

• Generators and Loads separated by distance

• Transmission system has limits

Transmission Congestion

Congestion management keeps transmission system

operating within limits

Network Operations Model

Models allow ERCOT to:• “See” grid at any point in time• Predict how various actions

affect grid

Representation of a physical system

• Physical characteristics• Ratings• Operational limits

Including• Transmission Elements• Resources• Topology• Telemetry mapping

Network Operations Model

Checkpoint Jeopardy!

ERCOT finds the balance!

Match the following answers with the questions:

Capacities reserved for responding quickly to changing conditions!$50

The process of keeping the transmission system operating within limits!$50

Market Introduction

Market Participants

Who are the Players?

Qualified Scheduling EntitiesQSE

Load Serving EntitiesLSE

Transmission and/or DistributionService ProvidersTDSP

Resource EntitiesResource Entity

Market Participants

• Bilateral Market• ERCOT Facilitated Markets

• Day-Ahead Ancillary Services Market

• Day-Ahead Energy Market• Real-Time Energy Market

ERCOT Nodal Market Design

Commercial Markets

Energy Dispatch• Resource-specific offers• Resource-specific dispatch

Goal• Balance generation & demand• Manage congestion

Energy Pricing• Location-specific prices for energy• Prices include congestion costs

• All costs are directly assigned

• Congestion Revenue Rights available for hedging

Congestion Costs

ERCOT is an energy-only market … but what does that mean?

In ERCOT, these costs must be recovered with revenues from energy production and operating reserves.

It’s all about the recovery of costs to build generation.

ERCOT is an energy-only market … but what does that mean?

Scarcity pricing – higher energy prices during periods where energy reserves are scarce

Energy Pricing must support investment in new generation

You Are Here!

Market Information System

An Independent Market Information System Registered Entity (IMRE) may register with ERCOT solely to access MIS Secure.

You Are Here!

• Locational Marginal Prices (LMPs)• Define LMPs• Determination of LMPs

• Congestion Rent• Settlement Point Prices• Reserve Prices• Market Information

Overview

What is Locational Marginal Pricing (LMP)?

• Pricing: Cost • Marginal: to serve the next increment of Load• Locational: at an Electrical Bus

• Energy• Congestion

LMP Components

In some markets, LMPs have a component for

losses.

The Nodal Market does NOT include losses in

Introducing the players… EXAMPLE

Let’s solve for LMPs at each Bus:EXAMPLE

10 MW($4 per MWh)

20 MW ($2 per MWh)

Let’s solve for LMPs at each Bus:EXAMPLE

10 MW($4 per MWh)

20 MW ($2 per MWh)

When there is no congestion, all LMPs are equal

Example: No Congestion

Charges to Load

LMP MW

$2 10 $20

Total $20

Payment to Resources

LMP MW

$2 0 $0

$2 10 $20

Total $20

Now there is congestion.EXAMPLE

10 MW($4 per MWh)

20 MW ($2 per MWh)

4 MW constraint

EXAMPLE

10 MW($4 per MWh)

20 MW ($2 per MWh)

4 MW constraint

With congestion, LMPs are different.

Charges to Load

LMP MW

$4 10 $40

Total $40

Payment to Resources

LMP MW

$4 6 $ 24

$2 4 $8

Total $32

Example: Congestion

Congestion Rent

Payments to

ResourcesCharges to Load

Congestion Rent used to fund Congestion

Revenue Rights (CRRs)

• LMPs at Electrical Buses

• Settlement Points used for financial settlement

• Settlement Point Prices calculated using LMPs

Settlement Point Prices

LMPs and Settlement Point Prices

Settlement Point Price

Electrical Buses

• Reserve Price Adder: the economic value of reserves that are available for energy dispatch in Real-Time

• LMPs and Reserve Price Adders are used together to form SPPs in Real-Time

Additional Real-Time pricing component…

LMPs are location-specific. Reserve Price Adders represent the value of reserves ERCOT-wide.

LMPs and Settlement Point Prices• Every Hour

LMPs and Reserve Price Adders• Every 5 minutes*

Settlement Point Prices• Every 15 minutes

How often are LMPs & Settlement Point Prices calculated?

* LMPs and Reserve Price Adders generated at each SCED cycle (possibly more often than 5 minutes)

Three Types of Settlement Points:

ResourceNodes

LoadZones

An Electrical Bus where a Resource’s measured output is settled

What is a Resource Node?

Resource Electrical Bus

Day-Ahead MarketLMP at the Resource Node

Real-Time OperationsTime-Weighted Average of LMPs at the Resource Node

Time-Weighted Average of Reserve Price Adders

Settlement Point Prices for Resource Nodes

Resource Electrical Bus

A group of Electrical Buses assigned to the same geographical zone

What is a Load Zone?

Every Electrical Bus with Load must be assigned to

a Load Zone for Settlement purposes

Day-Ahead MarketLoad-Weighted Average of LMPs in Load Zone

Real-Time OperationsLoad-Weighted and Time-Weighted Averages of LMPs in Load Zone

Settlement Point Price for Load Zones

• Competitive Load Zones

• Non Opt-in Entity Load Zones

• DC Tie Load Zones

Three types of Load Zones

• North

• South

• West

• Houston

2003 Congestion Management zones

Competitive Load Zones

• Established by one or more NOIE(s)

• Some large NOIEs required to establish own NOIE Load Zones

• NOIEs that don’t establish NOIE Load Zone are assigned to Competitive Load Zone

Non Opt-in Entity Load Zones

• Used to settle exports across DC Ties

• One for each DC Tie

• Contains only the electricalbus connected to the DC Tie

DC Tie Load Zones

All Load must be assigned to a Load Zone for Settlement purposes

• Group of 345kV Hub-buses• Defined by Protocols

What is a Hub?

ERCOT Hub Average

ERCOT Bus Average

Six Hubs in ERCOT Market

Four Regional Hubs• North

• West

• South

• Houston

Two Average Hubs

Day-Ahead MarketSimple average of LMPs at Hub Buses in each Hub

Real-Time OperationsSimple average of Time-Weighted Average LMPs at the Hub Buses in the Hub

Settlement Point Price for Hubs

• LMP Contour Map• Day-Ahead Market SPPs• Real-Time LMPs• Real-Time SPPs

These Settlement Points come in half-a-dozen!

Energy and congestion!$50

A price formed by combining LMP’s with Reserve Price Adders!

Nodal Market Operations

Market Components

• Purpose of CRRs• CRR Account Holders• Types of CRRs• How CRRs are acquired• Settlements• Market Information System

Overview

You Are Here!

• Financial instruments• Hedge against congestion costs• Financial investment

• Payment or charge when Grid is congested

Purpose of Congestion Revenue Rights

A CRR is not a right to

deliver physical energy

Congestion Costs

Congestion Cost exposure

Resource Node A

Resource Node B

$30/MWh$40/MWh

$45/MWh

Congestion costs are built in to the Settlement Point prices

Load Zone

Introducing a new player:CRR Account Holder

To own CRRs, Market Participants:• Must be registered with ERCOT

• Must qualify as CRR Account Holders

Barred from owning CRRs:• TSPs & DSPs

• ERCOT

Point-to-Point Congestion

Revenue Rights

• Designated point of injection (source) and point of withdrawal (sink)

• Settlement based on difference between sink and source Settlement Point Prices

• Two Instruments:• PTP Options – payment only• PTP Obligations – payment or

charge

Congestion Revenue Rights as Financial Instruments

$5/MWh

$10/MWh

$15/MWh

Source A

Source C

Sink B

Obligation AB Payment = $5.00

Obligation CB Payment = -$5.00

Point-to-Point (PTP) ObligationsEXAMPLE

Option AB Payment = $5.00

Option CB Payment = $0.00

$5/MWh

$15/MWh

Source A

Source C

Sink B

Point-to-Point (PTP) OptionsEXAMPLE

$10/MWh

• CRR Auction• Allocation (Special Case)• Bilateral Trades

Three ways of acquiring CRRs:

Auction

Allocation

• Time-of-Use Blocks• One month strips

CRRs are auctioned and allocated by:

• CRR Auction• Monthly and Semi-Annual Auctions• Based on Network Operations Model

• Pre-Assigned CRRs (PCRRs)• Allocated to Non-Opt-In Entities (NOIEs)• Based on long-term supply contracts• May be allocated as Options or Obligations• No charge or a percentage of the Auction clearing price

Allocation of CRRs

• PTP Options• PTP Obligations• Characteristics remain unchanged• Both parties must meet credit requirements

Trading CRRs Bilaterally

Three Settlement Processes• CRR Auction Settlement• CRR Settlement• CRR Balancing Account

CRR Settlements

Congestion Revenue Rights Settlements

CRR Auction Settlements

Settlements

Payments

Charges

CRR Auction Settlements Timeline

Auction Completed Day 1* Day 3** Day 4**

Auction Invoice

PaymentsDue to ERCOT

PaymentsDue to CRR Account Holders

Auction Results

Day 2** Day 5***

** Bank Business Day

*** Business Day and Bank Business Day

* Business Day

CRR Auction Settlement

Monthly

CRR Auction Revenues

+PCRR Revenues

Pay to QSEs representing Load

CRR Settlement

CRRs are settled in the Day-Ahead Market

Payments

Charges

Payment due toCRR Account Holders

Hourly

CRR Settlement

Hourly

CRR Settlement

may be short paid in some hours

MonthlyPay to QSEs representing Load

CRR Balancing Account

Monthly

may remain short paid

Posted after each Auction:

• CRRs awarded • CRR Account Holders• Auction clearing prices• CRR Bids and offers

Assigned, awarded, or traded!

A fund that is used to pay CRR Account Holders what they are due!$50

A fund that is uplifted to QSEs representing Load!

Day-Ahead Market

• Purpose of Day-Ahead Market• Market Participants• Day-Ahead Market Process• Process Inputs and Outputs• Settlements• Market Information System

Overview

You Are Here!

• Centralized Forward Market• Buy and sell Energy• Sell Ancillary Services to ERCOT• Forward market provides price

certainty

Day-Ahead Market

Purpose of the Day-Ahead Market

Day-Ahead Market

Only QSEs participate in the Day-Ahead Market.

Day-Ahead Market

CRRs are settled with Day-Ahead Market Prices

When does the Day-Ahead Market occur?• Market opens at 0600• Clearing Process begins at 1000• Results posted by 1330

Day-Ahead Market

0600 1330 0000 Real-TimeOperations

An Offer is a proposal to sell:• A Product• At a Location• For a Price

A Bid is a proposal to buy:• A Product• At a Location• For a Price

Day-Ahead Market

EnergyLoadZone 4

Day-Ahead Market

The Day-Ahead Market

Day-Ahead Market

Types of Offers:• Three-Part Supply Offer • Ancillary Service (AS) Offer• Day-Ahead Market Energy-Only Offer

Startup Offer Minimum-Energy Offer Energy Offer Curve

$ / MWh (at LSL) $ / MWh (above LSL)

$ / Start

Day-Ahead Market

Three-Part Supply Offer

Energy Offer Curve can be submitted without Start-up or Minimum Energy Offers

• Resource specific • Regulation Reserve• Responsive Reserve• Non-Spinning Reserve

• A Resource may be offered• For multiple Ancillary Services• For Energy and Ancillary

Services

Day-Ahead Market

Ancillary Service (AS) Offers:

Ancillary Service Offer

• Proposal to sell energy in DAM• Offered at any Settlement Point

Day-Ahead Market

Day-Ahead Market Energy-Only Offer

DAM Energy-Only Offer

Valid only in the Day-Ahead Market

Financial obligation in Real-Time

Day-Ahead Market

Types of Bids:• Energy Bid• PTP Obligation Bid

• Proposal to buy energy• Submitted at any Settlement Point

DAM Energy Bid

Day-Ahead Market

Day-Ahead Market Energy Bid

Valid only in the Day-Ahead Market

Financial credit in Real-Time

Purpose of DAM PTP Obligations

• Hedge against congestion costs in Real-Time

• Charge or payment when Grid is congested in Real-Time

Day-Ahead Market

Day-Ahead Market PTP Obligation Bids

• Like coupled Energy Bid and Energy Offer• Purchased at DAM Settlement Point Price Spread• Settled at Real-Time Settlement Point Price Spread

Day-Ahead Market

Day-Ahead Market PTP Obligation Bids

Source A

Sink BEnergy Offer

Energy Bid

PTP Obligation

DAM PTP Obligation canresult in a payment or

charge

Day-Ahead Market PTP ObligationsEXAMPLE

Day-Ahead Market

QSE charge in Day Ahead Market = $2

QSE payment in Real Time = $7 ?

$10/MWh $12/MWh

Source A Sink B

PTP Obligation

$8/MWh $15/MWhReal-Time :

Settlement Point Prices {{

Day-Ahead Market

CRR Auction Day-Ahead Market Real-Time

Day-Ahead Market

• Anticipated Resource operating conditions• Resource Status• Resource Limits• Ancillary Service Commitments

• Submitted by QSE

Day-Ahead Market

The Current Operating Plan (COP)

QSE must maintain the COP for each hour of the next 7 days

Day-Ahead Market

• Day-Ahead Market does not solve reliability issues

• System must support the Day-Ahead Market solution

Day-Ahead Market

The Network Model in the Day-Ahead Market

The Network Operations Model ensures that DAM solution

respects system limits

Day-Ahead Market

Cleared Offers = Costs

Cleared Bids = Revenues

Day-Ahead Market

The Day-Ahead Market clearing process

MaximizeThe Gap

Bid-based Revenues

Offer-based Costs

MaximizeThe Gap

Bid-based Revenues

Day-Ahead Market

The Day-Ahead Market clearing process

Energy&AncillaryService Costs

The Day-Ahead Market is a Co-optimized Market

Day-Ahead Market

QSEs may update COP• Awarded Energy Offers• Ancillary Service Commitments

QSEs may submit Trades

Day-Ahead Market

After Day-Ahead Market

• QSE-QSE transactions• Transfers financial responsibility• Types

• Capacity• Energy• Ancillary Service

Day-Ahead Market

Trades

Trades are used only in Settlements

Day-Ahead Market Settlements

Payments

Charges

Daily statements include • Payments due• Charges incurred

Day-Ahead Market

Day-Ahead Settlement Timeline

Operating Day

Day 2Day Ahead

DAM Statement

Daily invoices include• DAM Statements• RTM Statements

Day-Ahead Market

Single Daily Settlement Invoice

Operating Day

Day 5 Day 6

ERCOT Issues DAM

Statement & Invoice Payment Due

(to ERCOT)

Payment Due (to Market Participant)

17001700

Day Ahead

InvoiceDay + 2

InvoiceDay + 3

ERCOT Issues Invoice• DAM Statements • RTM Statements Payment Due

(to ERCOT)

Payment Due (to Market

Participant)

InvoiceDay

17001700

Posted by 0600 Day-Ahead:

• Network Operations Model

• Weather Assumptions • Load Forecasts (next 7 days)• Forecasted Load Profiles

• LMPs • Settlement Point Prices• MCPCs for each Ancillary Service• Energy bought and sold

Inputs that indicate a willingness to buy or sell products in DAM!

A DAM transaction that creates a financial credit in Real-time!$50

Products that may be offered simultaneously from the same Resource!

• Purpose of Reliability Unit Commitment (RUC)• Market Participants involved • The RUC Process• Settlements• Capacity Shortfall• Market Information System

Overview

You Are Here!

It ensures:

• Enough capacity is committed to serve the forecasted load

• Committed capacity is in the right locations

Purpose of Reliability Unit Commitment (RUC)

Operational impacts on:QSEs with Resources

Funds collected from:• Capacity-Short QSEs

• QSEs representing Load

The Reliability Unit Commitment Process

Committing Enough Capacity

Committing Capacity in the Right Locations

What if ERCOT must commit additional capacity?

Potential Results of RUC Process:

• Resource Commitments• Resource Decommitments• No additional Commitments

• Day-Ahead Reliability Unit Commitment (DRUC)• Hourly Reliability Unit Commitment (HRUC)

When does Reliability Unit Commitment (RUC) occur?

HRUCDRUC

Make-Whole

Payments

*RUC-Committed Resources

Capacity Short

Charges

Make-Whole Uplift

Charges

• Make-Whole Payments• RUC-committed Resources recover their

commitment costs

Resource Costs

Resource Revenues

RUC Make-Whole Payment

Make-Whole Payment

Capacity Short Charge

Capacity Obligations

Capacity Supply

Capacity Shortfall

QSEs with Capacity Shortfall may be assessed Capacity Short Charges

• Load (Adjusted Metered Load)• Capacity Trades where the QSE is a seller• Energy Trade where the QSE is a seller• Cleared DAM Energy Offer

What is included in the QSE’s capacity obligation?

Capacity Required to meet QSE Obligations

• Show capacity from its Resources in its COP• Capacity Trades where the QSE is a buyer• Energy Trades where the QSE is a buyer• Cleared DAM Energy bids

How can a QSE arrange to meet these obligations?

Capacity arranged by QSE

Capacity Supply

QSE must arrange for enough Capacity to meet Obligations

To Minimize Capacity Short Charges…

Capacity Supply

Capacity Shortfall

Difference uplifted to QSEs representing Load

Revenues may not be enough for make-Whole Payments

RUC Make-Whole

Payments

Make-WholeUplift

Charges

CapacityShortfallCharges

Capacity Short

Make-Whole

Payments Capacity Short

Charges

Make-Whole Uplift

Charges

RUC Payments and Charges are included in Real-Time Settlements

Posted after process completion:

• Resources committed • Resources decommitted• Active transmission constraints

An input used by RUC to determine how much capacity is needed!

Possible result of a snapshot of a QSE’s obligations!$50

An input used by RUC to determine the least cost solution to commit a Resource!

• Purpose of Real-Time Operations• Market Participants• Real-Time Operations Process

• Security Constrained Economic Dispatch• Load Frequency Control

• Settlements• Market Information System

Overview

You Are Here!

• Manage reliability• Match generation with demand• Operate transmission system

within established limits• Operate the system at least cost

Purpose of Real-Time Operations

ERCOT provides dispatch instructions to QSEs with Resources

ERCOT may also provide dispatch instructions to TSP’s

• Operating Period• Includes Operating Hour and Hour-Ahead

When do Real-Time Operations occur?

60 mins.prior to

Operating Hour

00000600 Real-TimeOperations

• Operating Hour - Real-Time dispatch of energy• Hour-Ahead – Preparations for Real-Time Operations

The Operating Period includes:

60 mins.prior to

Operating Hour

0000Real-TimeOperations

• Network Security Analysisidentifies transmission constraints

• Security Constrained Economic Dispatch (SCED) determines least-cost solution

Network Security Analysis and SCED

NetworkSecurityAnalysis

SecurityConstrainedEconomicDispatch

Provide Real-Time system data

Identify Constraints, both Transmission & Resource

TransmissionConstraints& ResourceDispatch Limits

SCED evaluates Offers to determine least-cost solution

TransmissionConstraints& ResourceDispatch Limits

SCED uses Energy Offer Curves:

Energy Offer Curve Submitted by QSEs:• Three-Part Supply Offer• Stand Alone Energy Offer Curve

During:• Day-Ahead Market• Adjustment Period

SCED produces Prices and Dispatch Instructions

How often does all this happen?

At least every 5 minutes

Every 5 minutes (when SCED runs)LMPs• Electrical buses

Every 15 minutesSettlement Point Prices• Resource Nodes• Load Zones• Hubs

Real-Time Price Calculations

Reserve Price Adders• ERCOT-wide

• Matches generation with demand• Manages congestion• Achieves least cost dispatch

Security Constrained Economic Dispatch (SCED)

5 minutes 5 minutes

Base points

• Matches generation with demand• Responds to frequency deviations• Deploys Regulation Reserve Service

Load Frequency Control (LFC)

Frequency (Hz)

60. 0000

5 minutes 5 minutes

Base points

Real-Time Operations Settlements

Payment for Net Supply

Charge for Net Obligation

• Metered Generation• DAM Purchase• Trades as Buyer

Examples•__________________ •__________________•__________________

•Metered Load•DAM Sale•Trades as Seller

Examples•__________________ •__________________•__________________

Daily statements include • Payments due• Charges incurred

Real-Time Settlement Timeline

Day 180

Operating Day

Initial Statement

Final Statement

True-Up Statement

Day 55

Daily invoices include• DAM Statement• RTM Statements

Single Daily Settlement Invoice

Operating Day

Day 5 Day 6

ERCOT Issues DAM

Statement & Invoice Payment Due

(to ERCOT)

Payment Due (to Market Participant)

17001700

Day Ahead

InvoiceDay + 2

InvoiceDay + 3

ERCOT Issues Invoice• DAM • RTM Initial• RTM Final• RTM True-up

Payment Due (to ERCOT)

Payment Due (to Market

Participant)

InvoiceDay

17001700

Posted after completion of SCED:

• Locational Marginal Prices• Settlement Point Prices

• Active transmission constraints

The QSE’s submitted energy offer for a specific Resource!

The first leg of the Operating Period!$50

Real-Time value of reserves across the wide range of ERCOT!

Course Conclusion

NODAL MARKET CURRICULUM ** available as web-based courseNodal 101 ** An introduction to the ERCOT Nodal Market.

Retail 101 An introduction to the competitive retail market in the ERCOT Region.

LSE 201 ** Market tools to manage cost of serving Load in the ERCOT Nodal Market.

Basic Training Program Comprehensive overview of Market and System Operations in the Nodal Market design.

CRR Market Comprehensive overview of Congestion Revenue Rights.

Settlements 301 Comprehensive overview of financial settlements in the ERCOT Nodal Market.

Credit Management Comprehensive overview of financial credit management in the ERCOT Nodal Market.

Transmission 101 Overview of processes in the planning and operation of the ERCOT grid.

Nodal Market Education

ERCOT Market Education ContactTraining@ercot.com

ERCOT Training Cataloghttp://www.ercot.com/services/training/

Your Feedback

ERCOT values your feedback on your experience in completing this instructor-led course.

Survey Handout

www.surveymonkey.com/r/ERCOTMarketTraining

Survey Launch QR Code:

ERCOT.comERCOT Protocolshttp://www.ercot.com/mktrules/nprotocols/

ERCOT Client ServicesClientServices@ercot.com

ERCOT Account Management ServicesErcotAccountManagers@ercot.com

ERCOT Market TrainingTraining@ercot.com

Accessing additional information

APPENDIX

Checkpoint Jeopardy Answers

Module 1 – ERCOT ResponsibilitiesAnswer: ERCOT finds the balance!Question: How does reliability and markets work together?

Answer: Capacities reserved for responding quickly to changing conditions.Question: What are Ancillary Services?

Answer: The process of keeping the transmission system operating within limits.Question: What is congestion management?

Module 3 – LMPAnswer: These Settlement Points come in half-a-dozen!Question: How many Hub Settlement Points are there?

Answer: Energy and congestion.Question: What are the two components of LMP?

Answer: A price formed by combining LMP’s with Reserve Price Adders.Question: What is a Settlement Point Price?

Module 4 – Congestion Revenue RightsAnswer: Assigned, awarded, or traded!Question: How can a CRRAH acquire a CRR?

Answer: A fund that is used to pay CRR Account Holders what they are due.Question: What is Congestion Rent?

Answer: A fund that is uplifted to QSEs representing Load.Question: What is CRR Auction Revenue?

Module 5 – Day-Ahead MarketAnswer: Inputs that indicate a willingness to buy or sell products in DAM.Question: What are Bids and Offers?

Answer: A DAM transaction that creates a financial credit in Real-time.Question: What is a cleared Energy Bid?

Answer: Products that may be offered simultaneously from the same Resource.Question: What are Energy and Ancillary Services?

Module 6 – Reliability Unit CommittmentAnswer: An input used by RUC to determine how much capacity is needed.Question: What is the Load Forecast?

Answer: Possible result of a test in time of a QSE’s obligations!Question: Why might a QSE receive a Capacity Short charge?

Answer: An input used by RUC to determine the least cost solution to commit a Resource.Question: What is the Three-Part Supply Offer?

Module 7 – Real-Time OperationsAnswer: The QSE’s submitted energy offer for a specific Resource!Question: What is the primary input into SCED?

Answer: The first leg of the Operating Period!Question: When does Hour-Ahead occur?

Answer: Real-Time value of reserves across the wide range of ERCOT!Question: What are Reserve Price Adders?

Appendix: Pathways to Referenced Data

Access Market Information System from ERCOT public website:

Digital Certificate required

LMP Contour Map: http://www.ercot.com/content/cdr/contours/rtmLmpHg.html

Public access: http://www.ercot.com/mktinfo/crr/index.html

CRR Auction section, Auction Results posting (zip folder)• CRRs, CRRAHs awarded, and Auction Clearing Prices

• Common Market Results file (CSV or XML format) • CRR Bids and Offers

• Common Auction Bids and Offers file (CSV or XML format)

CRR Auction Results

CRR Auction Results via Market Information System

Day-Ahead Network Operations Model (posted by 0600)

• Weather assumptions• Public access:

http://www.ercot.com/mktinfo/dam/index.html, under System Conditions

• MIS Secure: Markets > Day-Ahead Market > Day-Ahead Public Information

• Forecasted Load Profiles• Public access:

http://www.ercot.com/mktinfo/loadprofile/index.html, under Current Information

• MIS Secure: Markets > Load Profiling > Load Profiling Reports and Extracts (Public)

• Load Forecasts (next 7 days)• Public access:

http://www.ercot.com/gridinfo/load/index.html, under Current Information

• MIS Secure: Grid > Forecasts > Significant System Conditions

• List of transmission constraints• Public access:

http://www.ercot.com/gridinfo/generation/index.html, under Current Information

• MIS Secure: Grid > Generation > Public Generation Information > Weekly RUC Active and Binding Transmission Constraints

• DAM Hourly LMPs• DAM Settlement Point Prices• DAM Clearing Prices for Capacity• DAM Total Energy Purchased• DAM Total Energy sold

• Public access: http://www.ercot.com/mktinfo/dam/index.html, under Day-Ahead Market Results Reports

• MIS Secure: Markets > Day-Ahead Market > Day-Ahead Market Results

Posted after RUC completion:

• RUC Committed or DecommittedResources

• MIS Secure: Grid > Generation > Reliability Unit Commitment

• Active transmission constraints• Public access:

http://www.ercot.com/gridinfo/generation/index.html under Current Information

• MIS Secure: Grid > Generation > Public Generation Information

Posted after completion of SCED:

• Locational Marginal Prices• Settlement Point Prices

• Public access: http://www.ercot.com/mktinfo/rtm/index.html, under Real-Time Prices Reports

• MIS Secure: Markets > Real-Time Market > Real-Time Prices

• Active transmission constraints• MIS Secure: Markets > Real-Time Market >

ERCOT Nodal 101 · Congestion Revenue Rights. Day-Ahead Market. Reliability Unit Commitment....

Documents

EUROPEAN ELECTRICITY DAY AHEAD MARKET

Day Ahead Market Enhancements: Revised Straw Proposal · • Utilize a statistical regression technique to estimate the variation for individual components of load, wind and solar

Design of New England’s Wholesale Electricity Market · – Day-ahead market – Four-hour-ahead market – “The core elements address the fundamental concerns of customers and

Green Day Ahead Market (Petition no. 187/MP/2016) · Green Day Ahead Market (G-DAM) Proposed Framework • Green Day-ahead Market (G-DAM) to be similar to DAM • Based on principle

What’s ahead for the prime UK housing market?

Short Term Power Load Forecasting Using Deep Neural …for half an hour ahead load forecasting whereas Agarwal et al. [6] developed ANN models for hour ahead load and price forecasts

Keeping Ahead of the Market with MTR Technology Ahead of th… · Keeping Ahead of the Market with MTR® Technology Stefan Bartz VP Sales Uhde Inventa-Fischer

Module 3 Day-Ahead Market - Electric Reliability Council ... · 3. Module Overview. Exit. Enter. Fundamentals of the Nodal Market. Day–Ahead. Market. 4 • Identify the timeline

Day-Ahead Market Detailed Rules of Electricity Trading …€¦ · The Day-Ahead Market detailed rules of electricity trading and settlement ... the Exchange Commodity Market run

Doc2 - Federal Energy Regulatory Commission · Ahead market. By underscheduling their load into the Day-Ahead market, the IOUs have caused the ISO to have to call on energy in real

2013-02-19 - Transmittal - Price Consistency...February 19, 2013 Page 3 In the day-ahead market, with certain exceptions,2 load submits demand bids at default load aggregation points,

Get Ahead of the Energy Market

Module 3: Day-Ahead Market · Slide 2 Module Objectives: Day-Ahead Market ... Day-Ahead Market Trigger #2 • Three-Part Supply Offer ... 66 MW Procured 16 MW

Global generic pharmaceuticals market – brighter times ahead

Performance of Load and Net Load Forecasting 15-minute, 30-minute ‘look ahead’

Amherst, NY May 22, 2006 - Natural Gas & …...SDADRP – day ahead spot market sale of load curtailment capability SAncillary services – real time (10 minutes) delivery of curtailments

Day-Ahead Market Enhancements Phase 1: Fifteen-Minute ... · Table 1: Hourly Day-Ahead Market procurement and approximated Fifteen-Minute Day-Ahead Market procurement in comparison

HR Technology Market 2019: Disruption Ahead · 2019-07-20 · 4 HR TECHNOLOGY MARKET 2019: DISRUPTION AHEAD HR TECHNOLOGY MARKET 2019: DISRUPTION AHEAD5 Introduction AI, Productivity,

Which Road Ahead – Government or Market?

Day-Ahead Market Coupling Algorithm approval coordination