ERCOT Nodal 101 · The ERCOT Board has approved Guidelines for Members of ERCOT Committees,...

ERCOT MARKET EDUCATION

ERCOT Nodal 101

Legal Disclaimers and Admonitions

PROTOCOL DISCLAIMER

This presentation provides a general overview of the Texas Nodal Market

Implementation and is not intended to be a substitute for the ERCOT Nodal

Protocols (available at http://www.ercot.com/mktrules/nprotocols/current), as

amended from time to time. If any conflict exists between this presentation and the

ERCOT Nodal Protocols, the ERCOT Nodal Protocols shall control in all respects.

ANTITRUST ADMONITION

ERCOT strictly prohibits market participants and their employees, who are

participating in ERCOT activities, from using their participation in ERCOT activities

as a forum for engaging in practices or communications that violate antitrust laws.

The ERCOT Board has approved Guidelines for Members of ERCOT Committees,

subcommittees, and working Groups to be reviewed and followed by each market

participant attending ERCOT meetings.

Slide 2

http://www.ercot.com/mktrules/nprotocols/current

Slide 3

• Attendance sheet

• Questions

• Exam

• Restrooms

Please turn off cell phones & other electronics

Housekeeping

Nodal Market Education

Training Curriculum

• ERCOT Nodal 101

• Load Serving Entity 201

• Congestion Revenue Rights

• Settlements 301

• Basic Training Program

• Generation in RUC and Real-Time

• Generation in Day Ahead Market

• Transmission 101

• Various Workshops as needed

Slide 4

Target Audience

ERCOT Nodal 101:

A high-level overview of the ERCOT Nodal Market for all

Market Participants and ERCOT personnel.

Slide 5

Course Objectives

Upon completion of this course…

…you will be able to:

• Identify major components of the Nodal Market

• For each component of the Nodal Market, describe

• Purpose

• Inputs

• Outputs

• Processes

Slide 6

Introduction to ERCOT

Overview

Topics in this lesson . . .

• Key features of the ERCOT Grid

• ERCOT Responsibilities

• Reliability and Markets

• Capacity and Energy

• Congestion Management

• Network Modeling

• Market Overview

Slide 8

ERCOT Introduction

Key Features of the ERCOT Grid

• Represents 90% of Texas Load

• 74,000 MW of generation capacity

• 43,000 miles of transmission lines

• Electrical island with several DC Ties

Slide 9

ERCOT Responsibility

ERCOT’s Primary Responsibility is Reliability

• Match generation with demand

• Operate transmission system within established limits

Execute competitive markets for reliability services

Slide 10

ERCOT Operational Concepts

Reliability and Competitive Markets

• Markets support reliability

• Reliability makes the markets

possible

Slide 11

ERCOT finds the balance between Reliability and

Economics.


Energy and Capacity

ERCOT dispatches Energy to follow the system demand.

Slide 12


Energy and Capacity

Capacity

ERCOT must also ensure sufficient Capacity is on-line to meet the forecasted demand.

Forecast

Slide 13

More about Capacity


Capacity Reserved for Ancillary Services

Ancillary Services needed to respond quickly to changing

system conditions.

Slide 14


Ancillary Service Capacity

Acquired through

competitive markets

Slide 15

System Capacity

Ancillary Service

Capacity


Ancillary Service Capacity

Three types of Ancillary Services

Non-Spin Reserve

Regulation Reserve

Responsive Reserve

Slide 16


Transmission Congestion

• Generators and Loads

separated by distance

• Transmission system

has limits

Congestion management keeps transmission system operating

within limits

Slide 17


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.

Slide 18

Network Operations Model

• Physical characteristics

• Ratings

• Operational limits

Including

• Transmission Elements

• Resources

• Topology

• Telemetry


Slide 19

Market Overview

Market Participants

Who are the Players?

Slide 21

QSE

LSE

TSP

DSP

Resource

Entity

Qualified Scheduling Entities

Load Serving Entities

Transmission Service Providers

Distribution Service Providers

Resource Entities

Market Relationships

Slide 22

Market Participants

ERCOT Nodal Market Design

Commercial Markets

• Bilateral Market

• ERCOT Facilitated Markets

• Day-Ahead Energy Market

• Day-Ahead Ancillary

Services Market

• Real-Time Energy Market

Slide 23


Energy Dispatch

• Resource specific offers

• Resource specific dispatch

Goal

• Balance generation & demand

• Manage congestion

Energy Pricing

• Local prices for energy

• Prices include congestion costs

Slide 24


Congestion Costs

• All costs are directly

assigned

• Congestion Revenue Rights

available for hedging

Slide 25


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.

Slide 26


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

Slide 27

You Are Here!

Slide 28

Market Information System

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

Slide 29

You Are Here!

Slide 30

Locational Marginal Pricing

Overview


• Locational Marginal Prices (LMPs)

• Define LMPs

• Determination of LMPs

• Congestion Rent

• Settlement Point Prices

• Scarcity Pricing Mechanism

• Market Information

Slide 32

What is Locational Marginal Pricing (LMP)?

Pricing: Cost

Marginal: to serve the next increment of Load

Locational: at an Electrical Bus



Slide 33


LMP Components

• Energy

• Congestion

In some markets, LMPs have a component for losses.

The Nodal Market does NOT

include losses in LMPs.

Slide 34


Introducing the players…

Slide 35

Gen 1

Gen 2

Let’s solve for LMPs at each Bus:


Slide 36

10 MW ($4 per MWh)

20 MW ($2 per MWh)

10 MW

Gen 1

Gen 2


When there is no congestion, all LMPs are equal.

Slide 37

10 MW ($4 per MWh)

20 MW ($2 per MWh)

10 MW

Gen 1

Gen 2


Slide 38

Charges to Load

LMP MW

$2 10 $20

Total $20

Payment to Resources

LMP MW

$2 0 $0

$2 10 $20

Total $20

Example: No Congestion

Gen 1

Gen 2

Now there is congestion.


Slide 39

10 MW ($4 per MWh)

20 MW ($2 per MWh)

10 MW

4 MW constraint

Gen 1

Gen 2


Slide 40

10 MW ($4 per MWh)

20 MW ($2 per MWh)

10 MW

With congestion, LMPs are different.

4 MW constraint

Gen 1

Gen 2

Charges to Load

LMP MW

$4 10 $40

Total $40



LMP MW

$4 6 $ 24

$2 4 $8

Total $32

Slide 41

Example: Congestion

Gen 1

Gen 2

Congestion Rent

$40

$32

$8


Congestion Rent used to fund Congestion Revenue Rights (CRRs) Charges to

Load

Slide 42

Settlement Point Prices

LMPs and Settlement Point Prices

• LMPs at Electrical Buses

• Settlement Points used for financial

settlement

• Settlement Point Prices calculated

using LMPs

Settlement Point Price

LMP1

LMP2

LMP3

LMP4

LMP5

Electrical

Buses

Slide 43


44

Additional Real-Time pricing component…

• 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

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

reserves ERCOT-wide.


Slide 45

How often are LMPs & Settlement Point Prices calculated?

LMPs and Settlement Point Prices

• Every Hour

LMPs and Reserve Price Adders

• Every 5 minutes*


• Every 15 minutes

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


Slide 46

Three Types of Settlement Points:

Resource

Nodes

Load

Zones Hubs


What is a Resource Node?

An Electrical Bus where a Resource’s

measured output is settled

Slide 47

Resource Electrical Bus


Day-Ahead Market

LMP at the Resource Node

Real-Time Operations

Time-Weighted Average of

LMPs at the Resource Node


Reserve Price Adders

Resource Electrical Bus

Slide 48

Settlement Point Prices for Resource Nodes

+


What is a Load Zone?

A group of Electrical Buses

assigned to the same Load Zone

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

Slide 49


Settlement Point Price for Load Zones

Day-Ahead Market

Load-Weighted Average of LMPs

in Load Zone


Load-Weighted and Time-Weighted

Averages of LMPs in Load Zone



Slide 50

+


Three types of Load Zones

• Competitive Load Zones

• Non Opt-in Entity Load Zones

• DC Tie Load Zones

Slide 51


Competitive Load Zones

• North

• South

• West

• Houston

Slide 52

2003 Congestion Management zones


Non Opt-in Entity 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

Slide 53


DC Tie Load Zones

• Used to settle exports across

DC Ties

• One for each DC Tie

• Contains only the electrical

bus connected to the DC Tie.

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

Slide 54


What is a Hub?

• Group of 345kV Hub-buses

• Defined by Protocols

Slide 55

Hub

Four Regional Hubs

• North

• West

• South

• Houston

Two Average Hubs

ERCOT Hub Average

ERCOT Bus Average


Six Hubs in ERCOT Market

Slide 56

Hub

Settlement Point Price for Hubs

Day-Ahead Market

Simple average of LMPs

at Hub Buses in each Hub


Simple average of Time-Weighted Average

LMPs at the Hub Buses in the Hub




Slide 57

+


LMP Contour Map

• Day-Ahead

Market SPPs

• Real-Time LMPs

• Real-Time SPPs

Slide 58

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

Nodal Market Operations



Market Components

Slide 60


Congestion Revenue Rights

Overview


• Purpose of CRRs

• CRR Account Holders

• Types of CRRs

• How CRRs are acquired

• Settlements

• Market Information System

Slide 62

You Are Here!

Slide 63

Purpose of Congestion Revenue Rights

• Financial instruments

• Hedge against congestion costs

• Financial investment

• Payment or charge when

Grid is congested


A CRR is not a right to

deliver physical energy

Slide 64

Congestion Costs

Congestion Cost exposure

Congestion costs are built in to the Settlement Point prices.

Resource Node A

Resource Node B

$30/MWh $40/MWh

$45/MWh

Load Zone

Slide 65


Introducing a new player:

CRR Account Holder

Slide 66


To own CRRs, Market Participants:

• Must be registered with ERCOT

• Must qualify as CRR Account Holders

Slide 67


Barred from owning CRRs:

• TSPs & DSPs

• ERCOT

Slide 68

Congestion Revenue Rights as Financial Instruments

• 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

Point-to-Point Congestion

Revenue Rights


Slide 69

$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) Obligations


Slide 70

?

Option AB Payment = $5.00

Option CB Payment = $0.00

$5/MWh

$15/MWh

Source A

Source C

Sink B

Point-to-Point (PTP) Options


?

Slide 71

$10/MWh


Three ways of acquiring CRRs:

• CRR Auction

• Allocation (Special Case)

• Bilateral Trades

Auction

Allocation

Trade

CRRs

Slide 72

http://ep.ercot.com/npt/ERCOT Nodal Graphics/Certificate.PNG


Slide 73

CRRs are auctioned and allocated by:

• Time-of-Use Blocks

• One month strips

CRR Auction

• Monthly and Semi-Annual Auctions

• Based on Network Operations Model


Slide 74

http://ep.ercot.com/npt/ERCOT Nodal Graphics/allocation_titled.png

Allocation of CRRs

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


Slide 75

mailto:[email protected]

http://nodal.ercot.com/protocols/index.html

http://nodal.ercot.com/training/courses/index.html

Trading CRRs Bilaterally

• PTP Options

• PTP Obligations

• Characteristics remain unchanged

• Both parties must meet credit requirements.


Slide 76

CRR Settlements

Three Settlement Processes

• CRR Auction Settlement

• CRR Settlement

• CRR Balancing Account


Slide 77

Congestion Revenue Rights Settlements

CRR Auction Settlements

Settlements

Payments

Charges

Slide 78

CRR Auction Settlements Timeline


Slide 79

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

Auction Invoice

Payments Due to ERCOT

Payments Due to CRR Account Holders

Auction Results

Day 2** Day 5***

** Bank Business Day

*** Business Day and Bank Business Day

* Business Day

CRR Auction Settlement


Slide 80

Monthly

CRR Auction

Revenues

+

PCRR Revenues

Pay to QSEs

representing Load

http://nodal.ercot.com/



CRR Settlement

Congestion Revenue Rights Settlements

CRRs are settled in the Day-Ahead Market

Payments

Charges

Slide 81

Payment due to

CRR Account Holders

Hourly

CRR Settlement


Slide 82

Payment due to

CRR Account Holders

Hourly

CRR Settlement


may be short paid

in some hours

Slide 83

Payment due to

CRR Account Holders

Monthly Pay to QSEs

representing Load


CRR Balancing Account

Slide 84

Payment due to

CRR Account Holders


CRR Balancing Account

Monthly

Slide 85

X

may remain

short paid


Posted after each Auction:

Slide 86

• CRRs awarded

• CRR Account Holders

• Auction clearing prices

• CRR Bids and offers


Day-Ahead Market

Overview


• Purpose of Day-Ahead Market

• Market Participants

• Day-Ahead Market Process

• Process Inputs and Outputs

• Settlements


Slide 88

You Are Here!

Slide 89

Day-Ahead Market

Purpose of the Day-Ahead Market

• Centralized Forward Market

• Buy and sell Energy

• Sell Ancillary Services to ERCOT

• Forward market provides price

certainty

Slide 90

Day-Ahead Market

Only QSEs participate in the

Day-Ahead Market.

Slide 91

Day-Ahead Market

CRRs are settled with Day-Ahead Market Prices

Slide 92

Day-Ahead Market

When does the Day-Ahead Market occur?

• Market opens at 0600

• Clearing Process begins at 1000

• Results posted by 1330

Slide 93

06:00 13:30 00:00

A Bid is a proposal to buy:

• A Product

• At a Location

• For a Price

An Offer is a proposal to

sell:

• A Product

• At a Location

• For a Price

Energy

LoadZone 4

$40

Day-Ahead Market

Slide 94

The Day-Ahead Market

Day-Ahead Market

Slide 95


Day-Ahead Market

Slide 96


Day-Ahead Market

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

Slide 97

Startup Offer Minimum-Energy Offer Energy Offer Curve

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

$ / Start

Three-Part Supply Offer

Day-Ahead Market

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

Slide 98

Ancillary Service (AS) 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 Offer

Slide 99

Day-Ahead Market Energy-Only Offer

• Proposal to sell energy in DAM

• Offered at any Settlement Point

DAM Energy-Only Offer

h

Day-Ahead Market

Slide 100

Valid only in the Day-Ahead Market

Financial obligation in Real-Time

Slide 100


Day-Ahead Market

Slide 101

Types of Bids: • Energy Bid • PTP Obligation Bid

Day-Ahead Market Energy Bid

• Proposal to buy energy

• Submitted at any Settlement Point

DAM Energy Bid

h

Day-Ahead Market

Slide 102

Valid only in the Day-Ahead Market

Financial credit in Real-Time

Day-Ahead Market PTP Obligation Bids

• 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

Slide 103


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

DAM PTP Obligation can result in a payment or charge

Source A

Sink B

Energy Offer

Energy Bid

PTP Obligation

Slide 104

Day-Ahead Market PTP Obligations


QSE charge in Day Ahead Market = $2

QSE payment in Real Time = $7 ?

?

Slide 105

$10/MWh $12/MWh

Source A Sink B

PTP Obligation

DAM :

$8/MWh $15/MWh Real-Time :



Slide 106

CRR Auction Day-Ahead Market Real-Time

Day-Ahead Market


Slide 107

The Current Operating Plan (COP)

• Anticipated Resource operating conditions

• Resource Status

• Resource Limits

• Ancillary Service Commitments

• Submitted by QSE

QSE must maintain the COP for each

hour of the next 7 days

Day-Ahead Market

Slide 108

Day-Ahead Market


Slide 109

Day-Ahead Market

The Network Model in the Day-Ahead Market

• Day-Ahead Market does

not solve reliability issues

• System must support the

Day-Ahead Market solution

The Network Operations Model ensures that DAM

solution respects system limits

Slide 110

Day-Ahead Market


Slide 111

Day-Ahead Market


Slide 112

Cleared Offers = Costs

Cleared Bids = Revenues

Day-Ahead Market

The Day-Ahead Market clearing process

Slide 113

Maximize

The Gap

Bid-based Revenues

Offer-based Costs

Offer-based Costs

Maximize

The Gap

Bid-based Revenues

The Day-Ahead Market is a Co-optimized Market

Day-Ahead Market

The Day-Ahead Market clearing process

Slide 114

Energy & Ancillary Service Costs

Day-Ahead Market


Slide 115

Day-Ahead Market

After Day-Ahead Market

• QSEs may update COP

• Awarded Energy Offers

• Ancillary Service Commitments

• QSEs may submit Trades

Slide 116

Trades

• QSE-QSE transactions

• Transfers financial responsibility

• Types

• Capacity

• Energy

• Ancillary Service

Day-Ahead Market

Trades are used only in Settlements

Slide 117

Day-Ahead Market Settlements

Payments

Charges

Slide 118

Day-Ahead Settlement Timeline

• Daily statements include

• Payments due

• Charges incurred

Day-Ahead Market

Slide 119

Operating Day

Day 2 Day Ahead

DAM Statement

Day 1

Single Daily Settlement Invoice

• Daily invoices include

• DAM Statements

• RTM Statements

Day-Ahead Market

Slide 120

Operating Day

Day 5 Day 6

ERCOT Issues DAM

Statement & Invoice Payment Due

(to ERCOT)

Payment Due (to Market Participant)

Day 2

1700 1700

Day Ahead

Invoice Day + 2

Invoice Day + 3

ERCOT Issues Invoice • DAM Statements • RTM Statements

Payment Due (to ERCOT)


Invoice Day

1700 1700


Posted by 0600 Day-Ahead:

Slide 121

• Network Operations Model

• Weather Assumptions

• Load Forecasts (next 7 days)

• Forecasted Load Profiles


Slide 122


• LMPs


• MCPCs for each Ancillary Service

• Energy bought and sold


Reliability Unit Commitment

Overview


• Purpose of Reliability Unit Commitment (RUC)

• Market Participants involved

• The RUC Process

• Settlements

• Capacity Shortfall


Slide 124

You Are Here!

Slide 125


Purpose of Reliability Unit Commitment (RUC)

It ensures:

• Enough capacity is committed to serve

the forecasted load

• Committed capacity is in the right locations

Slide 126


Operational impacts on:

QSEs with Resources

Slide 127


Funds collected from:

• Capacity-Short QSEs

• QSEs representing Load

Slide 128


The Reliability Unit Commitment Process

Slide 129


Committing Enough Capacity

Slide 130


Committing Capacity in the Right Locations

Slide 131


What if ERCOT must commit additional capacity?

Slide 132


Potential Results of RUC Process:

Slide 133

• Resource Commitments

• Resource Decommitments

• No additional Commitments


When does Reliability Unit Commitment (RUC) occur?

Day-Ahead Reliability Unit Commitment (DRUC)

Hourly Reliability Unit Commitment (HRUC)

Slide 134

HRUC DRUC

Make-Whole

Payments

Reliability Unit Commitment Settlements

*RUC-Committed Resources

Capacity

Short

Charges

Slide 135

Make-Whole

Uplift

Charges


Make-Whole Payments

RUC-committed Resources recover their commitment costs

Slide 136

Resource Costs

Resource Revenues

$

RUC Make-Whole Payment

Make-Whole Payment


Capacity Short Charge

Capacity Obligations

Capacity Supply

Capacity Shortfall

Slide 137

QSEs with Capacity Shortfall are assessed Capacity Short Charges


What is included in the QSE’s capacity obligation?

• Load (Adjusted Metered Load )

• Capacity Trades where the QSE is a seller

• Energy Trade where the QSE is a seller

• Cleared DAM Energy Offer

Capacity Required to meet QSE Obligations

Slide 138



How can a QSE arrange to meet these 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

Capacity arranged by QSE

Slide 139

Capacity Supply


To Minimize Capacity Short Charges…

QSE must arrange for enough Capacity to meet Obligations


Capacity Supply

Capacity Shortfall

Slide 140


Revenues may not be enough for make-Whole Payments

Difference uplifted to QSEs representing Load

Slide 141

Gen 1

RUC

Make-Whole

Payments

Make-Whole

Uplift

Charges

Capacity

Shortfall

Charges Capacity

Short


Slide 142

Make-Whole

Payments Capacity

Short

Charges

Make-Whole

Uplift

Charges

RUC Payments and Charges are included in Real-Time Settlements


Posted after process completion:

Slide 143

• Resources committed

• Resources decommitted

• Active transmission constraints



Overview


• Purpose of Real-Time Operations

• Market Participants

• Real-Time Operations Process

• Security Constrained Economic Dispatch

• Load Frequency Control

• Settlements


Slide 145

You Are Here!

Slide 146


Purpose of Real-Time Operations

• Manage reliability

• Match generation with demand

• Operate transmission system

within established limits

• Operate the system at least cost

Slide 147


ERCOT provides dispatch instructions

to QSEs with Resources.

Slide 148


ERCOT may also provide

dispatch instructions to TSPs.

Slide 149


When do Real-Time Operations occur?

• Operating Period

• Includes Operating Hour and Hour-Ahead

Slide 150

60 mins.

prior to

Operating Hour

00:00


The Operating Period includes:

• Operating Hour - Real-Time dispatch of energy

• Hour-Ahead – Preparations for Real-Time Operations

Slide 151

60 mins.

prior to

Operating Hour

00:00


Slide 152


• Network Security Analysis

identifies transmission

constraints

• Security Constrained

Economic Dispatch (SCED)

determines least-cost

solution

Network Security Analysis

Security Constrained

Economic Dispatch

Network Security Analysis and SCED

Slide 153



Provide Real-Time system data

Slide 154


Identify Constraints, both Transmission & Resource

Transmission Constraints & Resource Dispatch Limits

Slide 155


SCED evaluates Offers to determine least-cost solution

Transmission Constraints & Resource Dispatch Limits

Slide 156

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


Slide 157


SCED produces Prices and Dispatch Instructions

Slide 158


How often does all this happen?

At least

every 5

minutes

Slide 159


Real-Time Price Calculations

Every 5 minutes (when SCED runs)

LMPs

• Electrical buses

Every 15 minutes


• Resource Nodes

• Load Zones

• Hubs

Slide 160


• ERCOT-wide

SCED


SCED Dispatch Instructions

• Every 5 minutes

• Based on economics

SCED SCED

5 minutes 5 minutes

Base point

Base point

Base point

Slide 161

Load Frequency Control (LFC)

• Matches generation with demand

• Responds to frequency deviations

• Deploys Regulation Reserve Service

Frequency (Hz)


5 minutes 5 minutes

Base point

Base point

Base point

Slide 162

Real-Time Operations Settlements

Payment for Net Supply

Charge for Net Obligation

Slide 163

• Metered Generation

• DAM Purchase

• Trades as Buyer

Examples

•__________________

•__________________

•__________________


Slide 164

•Metered Load

•DAM Sale

•Trades as Seller

Examples

•__________________

•__________________

•__________________


Slide 165

Real-Time Settlement Timeline

• Daily statements include

• Payments due

• Charges incurred

Slide 166

Day 180

Operating Day

Day 5

Initial Statement

Final Statement

True-Up Statement

Day 55


Single Daily Settlement Invoice

• Daily invoices include

• DAM Statement

• RTM Statements

Slide 167

Operating Day

Day 5 Day 6

ERCOT Issues DAM

Statement & Invoice Payment Due

(to ERCOT)


Day 2

1700 1700

Day Ahead

Invoice Day + 2

Invoice Day + 3

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

Payment Due (to ERCOT)


Invoice Day

1700 1700



Posted after completion of SCED:

Slide 168

• Locational Marginal Prices



Course Conclusion

Additional Resources

ERCOT Nodal Market Protocols

http://www.ercot.com/mktrules/nprotocols/

ERCOT Training

http://www.ercot.com/services/training/

Market Education Contact

[email protected]

Slide 170

http://www.ercot.com/mktrules/nprotocols/

http://www.ercot.com/services/training/

mailto:[email protected]

Appendix: Pathways to Referenced Data

Access Market Information System from ERCOT public website:

Digital

Certificate

required

Slide 171

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


Slide 172

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

o Common_MarketResults file (CSV or XML format)

• CRR Bids and Offers

o Common_AuctionBidsAndOffers file (CSV or XML format)


CRR Auction Results

Slide 173





CRR Auction Results via Market Information System

Slide 174

Day-Ahead Network Operations Model (posted by 0600)

Slide 175



Slide 176

• Weather assumptions

o Public access:

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

System Conditions

o MIS Secure: Markets > Day-Ahead Market > Day-Ahead

Public Information

• Forecasted Load Profiles

o Public access:

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

under Current Information

o MIS Secure: Markets > Load Profiling > Load Profiling

Reports and Extracts (Public)


http://www.ercot.com/mktinfo/dam/index.html


http://www.ercot.com/mktinfo/loadprofile/index.html

http://www.ercot.com/mktinfo/loadprofile/index.html


Slide 177

• Load Forecasts (next 7 days)

o Public access:

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

Current Information

o MIS Secure: Grid > Forecasts > Significant System

Conditions

• List of transmission constraints

o Public access:

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

under Current Information

o MIS Secure: Grid > Generation > Public Generation

Information > Weekly RUC Active and Binding

Transmission Constraints


http://www.ercot.com/gridinfo/load/index.html

http://www.ercot.com/gridinfo/load/index.html

http://www.ercot.com/gridinfo/generation/index.html


Slide 178


• DAM Hourly LMPs

• DAM Settlement Point Prices

• DAM Clearing Prices for Capacity

• DAM Total Energy Purchased

• DAM Total Energy sold

o Public access:

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

Day-Ahead Market Results Reports

o MIS Secure: Markets > Day-Ahead Market > Day-

Ahead Market Results




Posted after RUC completion:

Slide 179

• RUC Committed or Decommitted Resources

o MIS Secure: Grid > Generation > Reliability

Unit Commitment


o Public access:

http://www.ercot.com/gridinfo/generation/ind

ex.html under Current Information

o MIS Secure: Grid > Generation > Public

Generation Information





Posted after completion of SCED:

Slide 180

• Locational Marginal Prices


o Public access:

http://www.ercot.com/mktinfo/rtm/index.html, under

Real-Time Prices Reports

o MIS Secure: Markets > Real-Time Market > Real-

Time Prices


o MIS Secure: Markets > Real-Time Market > Real-

Time Operations


http://www.ercot.com/mktinfo/rtm/index.html

http://www.ercot.com/mktinfo/rtm/index.html

End

Date post:	10-Jul-2020
Category:	Documents
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