DRR Pilot Phase II

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DRR Pilot Phase II. Robert B. Burke Presented To: NEPOOL Markets Committee - April 8-9, 2008. Outline of Presentation. Background of the Demand Response Reserves (DRR) Pilot Program Summarize DRR Pilot Phase I Results Summarize and Discuss Proposal for DRR Pilot Phase II Timeline. - PowerPoint PPT Presentation

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  • DRR Pilot Phase IIRobert B. BurkePresented To: NEPOOL Markets Committee - April 8-9, 2008

  • Outline of PresentationBackground of the Demand Response Reserves (DRR) Pilot ProgramSummarize DRR Pilot Phase I ResultsSummarize and Discuss Proposal for DRR Pilot Phase IITimeline*

  • DRR PILOT:BACKGROUND*

  • Background on the DRR Pilot ProgramObjectivesDemonstrate whether customer loads can reliably provide 30-minute operating reserve and 10-minute non-synchronized reserveDetermine the requirements for communications, dispatch, metering, and telemetry sufficient for DR resources to provide reserve servicesIdentify and evaluate lower cost communications and telemetry solutions that meet the requirements and are more suitable for DR reserve resources

  • DRR Pilot Details*

    Duration2 years from commencement dateProgram Size50 MWLoad ZoneAll zonesOnly CT and NEMA registeredAvailability7 a.m. to 6 p.m. non-holiday weekdaysDispatchRandom based on experimental design (between 18 and 20 times)CommunicationIBCS-OS

  • DRR Pilot Details(continued)*

    Availability PaymentFRM minus ICAP based on actual performance during each activationPerformance PaymentHigher of Threshold Price or LMPPerformance PenaltyBuy back portion not provided RT LMPBaseline CalculationSame as RT Demand ResponseRegistration 30-Minute RT DR Action 9ICAP value (Max Interruptible)No DALRP participationSubstitutionNo resource substitution allowed

  • DRR PILOT:PHASE I RESULTS*

  • DRR Pilot Phase IPhase 1 began October 1, 2006Completed 1st full year Resources dispatched by Operations based on random scheduleApproximately 18 times per seasonPerformance indicates 30 minute response is practicalSome resources may be 10 minute responsiveOctober 1, 2007Commenced 2nd full year of testingCollect additional performance dataInvestigate alternative dispatch methodologiesConcepts developed before February 12, 2008 announcement

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  • *DRRP Event Statistical Significance32 out of 37 events yielded significant load relief over the course of year one

    Winter SessionOctober 2006 to May 2007Summer SessionJune to September 200719 events, total18 events, total (17 + 1 audit)48 Asset92 Assets19.9 MW39.3 MWAll 19 events yielded statistically significant load relief13 events yielded statistically significant load relief

  • Statistical Significance of Observed Load Reductions indicates that demand reductions are outside of the natural variation of the load.*Statistical Significance - Winter 2006/2007 PeriodNatural Variation of Load

  • Statistical Significance of Observed Load Reductions indicates that demand reductions are outside of the natural variation of the load in all but 5 of 18 summer activations.*Statistical Significance Summer 2007 PeriodNatural Variation of Load

  • Lessons LearnedICAP value not a good measure of ability to provide reserveDR needs a separate value to measure DRR Pilot responseIn graphs that follow, performance measured against ICAP valuesNeed to learn moreDevelop measurement of how much DR can provide dailyNot ready to fully integrate into Ancillary Service Market

    Goal is to integrate into Forward Reserve MarketJune 2010

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  • Winter 2006 2007 Performance*

  • Summer 2007 Performance*

  • ConclusionProgram is worth continuing*

  • PROPOSAL:DRR PILOT PHASE II

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  • Purpose of DRR Pilot Phase IIFinalize requirements for:Communication, dispatch, metering, and telemetry sufficient for DR resources to provide Ancillary ServicesImplement identified lower-cost communications and telemetry solutionsVerify compliance with operational requirementsIntegrate communications infrastructure with operations and market systemsOnce the above objectives are accomplished, the ISO will be in a position to fully integrate demand response resources into Ancillary Service Market*

  • What Remains The SameProgram SizeContinue to limit to 50 MWAvailability PaymentFRM minus Transition ICAPBased on actual performance during each event (prospective)Performance PaymentHigher of Threshold Price or LMPCommunicationIBCS-OSPossibly beta test RIG replacement

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  • What Remains the Same(continued)Performance PenaltyBuy back portion not provided at RT LMPRegistrationAssets registered in 30-minute RT Demand Response Program Action 9Assets cannot participate in DALRPSubstitutionNo substitution of assets allowed*

  • What ChangesDurationOctober 2008 through May 2010Goal to integrate into FRM for June 2010Separate registration for each FRM periodLoad ZoneConnecticutAvailability Requirement7 a.m. to 11 p.m. non-holiday weekdaysBaseline CalculationSymmetric baseline adjustment

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  • What Changes(continued)DispatchDispatch after 1st contingency event in Connecticut onlyPeriodic random activationsDispatch all resources at onceInclude in ForecastOperations will include as available for CT 1st contingency50% of average performance Response Time20 minutes from start of eventOn 1st contingency response Operations will take additional actions based on observed response

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  • TimelineInitial Present to MCMid AprilMarket Rule to MCMid MayVote Mid JuneNPC ApprovalJune Summer meetingFERC FilingEarly July

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