TRN101 - Module 1: Course Introduction - ERCOT.com
TRN101 - Module 1: Course Introduction - ERCOT.com
TRN101 - Module 1: Course Introduction - ERCOT.com
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NODAL MARKET EDUCATION<br />
Transmission 101
Transmission 101<br />
<strong>Course</strong> <strong>Introduction</strong>
<strong>Course</strong> Objectives<br />
Upon <strong>com</strong>pletion of this course, you will be able to<br />
describe:<br />
•Overall structure of Nodal Market<br />
•Outage O t coordination di ti<br />
•Network modeling<br />
•TSP S activities and impacts on:<br />
◦ Congestion Revenue Rights (CRR)<br />
◦ Da Day-Ahead Ahead Market (DAM)<br />
◦ Adjustment Period<br />
◦ Real-Time Real Time Operations<br />
<strong>Module</strong> 1 : Slide 3
<strong>Course</strong> Audience<br />
This course is designed for:<br />
• TTransmission i i SService i PProvider id OOperators t<br />
• <strong>ERCOT</strong> Transmission System Operators<br />
Other audiences:<br />
– Outage g pplanning g & coordination ppersonnel<br />
– Operations support & planning engineers<br />
– Engineering technicians<br />
– IT staff, Management<br />
<strong>Module</strong> 1 : Slide 4
<strong>Course</strong> <strong>Module</strong>s<br />
<strong>Module</strong>s in this course include:<br />
<strong>Module</strong> 1<br />
Nodal Market Basics<br />
<strong>Module</strong> 2<br />
Outage Coordination<br />
<strong>Module</strong> 3<br />
<strong>Module</strong> 4<br />
Network Modeling<br />
Congestion Revenue Rights<br />
<strong>Module</strong> 5 Day-Ahead y through g Real-Time<br />
<strong>Module</strong> 6<br />
Additional Real-Time Topics<br />
<strong>Module</strong> 1 : Slide 5
<strong>Module</strong> 1:<br />
Nodal Market Basics
<strong>Module</strong> Objectives<br />
Upon <strong>com</strong>pletion of this module, you will:<br />
•Describe Nodal Market Overview<br />
•Describe <strong>ERCOT</strong> and TSP responsibilities<br />
•Describe Locational Marginal Price (LMP) basics<br />
•Describe relationships between Transmission outages and<br />
LMP calculations<br />
<strong>Module</strong> 1 : Slide 7
Nodal Market Overview<br />
<strong>Module</strong> 1 : Slide 8
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 9
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 10
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 11
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 12
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 13
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 14
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 15
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 16
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 17
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 18
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 19
Nodal Market Overview (continued)<br />
<strong>Module</strong> 1 : Slide 20
Roles and Responsibilities<br />
<strong>ERCOT</strong> Operations<br />
• Facilitate markets<br />
• Operate Ancillary Service, Day-Ahead and<br />
Real-Time Energy markets<br />
• Provide timely information relevant to the<br />
operation of markets<br />
• Ensure transmission system reliability<br />
• Process outage and Network Model requests<br />
• Coordinate transmission system planning<br />
<strong>Module</strong> 1 : Slide 21
Roles and Responsibilities (continued)<br />
Transmission Service Providers (TSP)<br />
• Keep <strong>ERCOT</strong> continually informed of<br />
transmission outages and updates<br />
• PProvide id accurate and d timely i l ddata<br />
• Comply with <strong>ERCOT</strong> dispatch instructions<br />
• Coordinate transmission system planning<br />
• Update & validate Network Operations Models<br />
<strong>Module</strong> 1 : Slide 22
Locational Marginal Pricing<br />
What is Locational Marginal Pricing<br />
(LMP)?<br />
Pricing: Cost<br />
Marginal: ag a to o se serve e the e next e increment c e e oof Load oad<br />
Locational: at an Electrical Bus<br />
<strong>Module</strong> 1 : Slide 23
Locational Marginal Pricing<br />
LMPs are determined by:<br />
Day-Ahead Market<br />
- Hourly LMPs<br />
Real-Time Operations<br />
- Every 5 minutes*<br />
* LMPs generated at each SCED cycle (possibly more often than 5 minutes)<br />
<strong>Module</strong> 1 : Slide 24
Locational Marginal Pricing<br />
Important LMP Factors<br />
Locational Marginal Pricing<br />
BBalance l of f St Strong<br />
reliability & economics market signals<br />
• LMP Market control of<br />
reliability<br />
• Drives utilization of<br />
transmission space p<br />
Effi Efficient i t<br />
Dispatch<br />
• Reliability problems • <strong>ERCOT</strong> instructed<br />
• Price response to<br />
reliability problems<br />
• At Resource level<br />
<strong>Module</strong> 1 : Slide 25
Locational Marginal Pricing<br />
Calculating LMPS<br />
•Calculated at “Network Nodes”<br />
•Points of connection to grid<br />
– Source (injection point)<br />
– Sink (withdrawal ( point) p )<br />
– Switching station<br />
<strong>Module</strong> 1 : Slide 26
Locational Marginal Pricing<br />
Calculating LMPS<br />
•DC DC PPower Fl Flow model d l used d tto calculate l l t LMP LMPs<br />
Constraints<br />
Real Real Power<br />
Studies:<br />
Voltage Stability<br />
Transient Stability<br />
Transmission Limits<br />
GGeneric i Li Limits it<br />
DC<br />
Model<br />
LMPs<br />
<strong>Module</strong> 1 : Slide 27
Settlement Point Prices<br />
LMPs are used to calculate<br />
Settlement Point Prices<br />
• Financial settlement finalized at<br />
Settlement Points<br />
<strong>Module</strong> 1 : Slide 28
Settlement Point Prices<br />
Types of Settlement Points:<br />
Resource Load<br />
Nodes Zones<br />
Hubs<br />
<strong>Module</strong> 1 : Slide 29
Settlement Point Prices<br />
What is a Resource Node?<br />
• An Electrical Bus where a Resource’s<br />
measured output is settled<br />
Settlement Point Price<br />
• Calculated from<br />
LMPs at the Resource Node<br />
Resource<br />
Nodes<br />
Resource<br />
Electrical<br />
Bus<br />
<strong>Module</strong> 1 : Slide 30
Settlement Point Prices<br />
What is a Load Zone?<br />
• A grouping i of f El Electrical t i l BBuses with ith LLoad d<br />
Settlement Point Price<br />
• Calculated from the load-weighted average of<br />
all LMPs in the zone<br />
Three types of Load Zones<br />
• Competitive Load Zones<br />
• NNon-Opt O t in i Entity E tit (NOIE) Load L d Zones Z<br />
• DC Tie Load Zones<br />
Load<br />
ZZones<br />
All Load must be assigned to a<br />
Load Zone for Settlement purposes<br />
<strong>Module</strong> 1 : Slide 31
Settlement Point Prices<br />
What is a Hub?<br />
• GGrouping i of f 345kV El Electrical t i l bbuses<br />
• Defined by Protocols<br />
Settlement Point Price<br />
• Calculated from the simple<br />
average of LMPs at defined<br />
Hub buses<br />
Hubb<br />
<strong>Module</strong> 1 : Slide 32
Settlement Point Prices<br />
Six Hubs in <strong>ERCOT</strong> Market<br />
Four Regional Hubs<br />
• North<br />
• West<br />
• South<br />
• Houston<br />
Two Average Hubs<br />
<strong>ERCOT</strong> Hub Average<br />
<strong>ERCOT</strong> Bus Average<br />
<strong>Module</strong> 1 : Slide 33
Settlement Point Prices<br />
How often are LMPs & Settlement Point Prices calculated?<br />
• Every Hour<br />
•LMPs ffor<br />
each electrical bus<br />
• Settlement Point Prices<br />
• Every 5 minutes<br />
• LMP LMPs ffor each h electrical l t i l b bus* *<br />
• Every 15 minutes<br />
• Settlement Point Prices<br />
* LMPs generated at each SCED cycle (possibly more often than 5 minutes)<br />
Slide 34
Settlement Point Prices<br />
Impact of Outages on Prices<br />
•Outages O t and d limits li it iimpact t<br />
– Locational Marginal Prices (LMPs)<br />
– Settlement Settlement Point Prices<br />
Outage<br />
Outage<br />
Outage<br />
<strong>Module</strong> 1 : Slide 35
Scenario: Outages and LMPs<br />
G1 QSE offers 100 MW @ $30/MWh<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
150 MW<br />
Load<br />
L1<br />
<strong>Module</strong> 1 : Slide 36
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
0 MW dispatched<br />
@ $ $30/MWh<br />
150 MW dispatched<br />
@ @$ $10/MWh<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
150 MW<br />
Load<br />
L1<br />
<strong>Module</strong> 1 : Slide 37
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
0 MW dispatched<br />
@ $ $30/MWh<br />
150 MW dispatched<br />
@ @$ $10/MWh<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
L1<br />
150 MW<br />
Load<br />
LMP = $10 / MWh<br />
Paid to Generators (G2)<br />
G1 ( 0 MW * $30/MWh ) = $0<br />
G2 ( 150 MW * $10/MWh ) = $1500<br />
Charged g to Loads (L1) ( )<br />
( 150 MW * $10/MWh ) = $1500<br />
<strong>Module</strong> 1 : Slide 38
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
150 MW<br />
Load<br />
L1<br />
<strong>Module</strong> 1 : Slide 39
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
50 MW dispatched<br />
@ $ $30/MWh<br />
100 MW dispatched<br />
@ @$ $10/MWh<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
150 MW<br />
Load<br />
L1<br />
<strong>Module</strong> 1 : Slide 40
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
50 MW dispatched<br />
@ $ $30/MWh<br />
100 MW dispatched<br />
@ @$ $10/MWh<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
L1<br />
150 MW<br />
Load<br />
LMP = $30 / MWh<br />
Paid to Generators (G2)<br />
G1 ( 50 MW * $30/MWh ) = $1500<br />
G2 ( 100 MW * $10/MWh ) = $1000<br />
Charged g to Loads (L1) ( )<br />
( 150 MW * $30/MWh) = $4500<br />
<strong>Module</strong> 1 : Slide 41
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
50 MW dispatched<br />
@ $ $30/MWh<br />
100 MW dispatched<br />
@ @$ $10/MWh<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
• Differences (between payments and<br />
charges) goes into congestion rent<br />
• Covered in more detail later<br />
L1<br />
150 MW<br />
Load<br />
LMP = $30 / MWh<br />
Paid to Generators (G2)<br />
G1 ( 50 MW * $30/MWh ) = $1500<br />
G2 ( 100 MW * $10/MWh ) = $1000<br />
Charged g to Loads (L1) ( )<br />
( 150 MW * $30/MWh) = $4500<br />
<strong>Module</strong> 1 : Slide 42
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
0 MW dispatched<br />
@ $ $30/MWh<br />
50 MW dispatched<br />
@ @$ $10/MWh<br />
Sometimes Outages don’t impact LMPs . . .<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
L1<br />
50 MW<br />
Load<br />
LMP = $10 / MWh<br />
<strong>Module</strong> 1 : Slide 43
Scenario: Outages and LMPs (continued)<br />
G1 QSE offers 100 MW @ $30/MWh<br />
0 MW dispatched<br />
@ $ $30/MWh<br />
50 MW dispatched<br />
@ @$ $10/MWh<br />
Sometimes Outages don’t impact LMPs . . .<br />
100 100 MW Li Limit it<br />
G2 QSE offers 200 MW @ $10/MWh<br />
RResult: lt<br />
• Either line can support load<br />
• No change in LMPs<br />
L1<br />
50 MW<br />
Load<br />
LMP = $10 / MWh<br />
<strong>Module</strong> 1 : Slide 44
<strong>Module</strong> Summary<br />
In this module we:<br />
• IIntroduced t d d th the <strong>ERCOT</strong> Nodal N d l Vi Visual l PProcess MMap<br />
• Identified key roles and responsibilities<br />
• Discussed Discussed basics of Locational Marginal Prices (LMPs)<br />
• Discussed outage impacts on LMPS<br />
<strong>Module</strong> 1 : Slide 45