Generation Production Costs, Scheduling & Operating Rate

Transcription

1 Disclaimer This training presentation is provided as a reference for preparing for the PJM Certification Exam. Note that the following information may not reflect current PJM rules and operating procedures. For current training material, please visit: PJM 2014

2 Generation Production Costs, Scheduling & Operating Rate Interconnection Training Program Module LS 3 Winter, PJM

3 LS 3 Objectives Define production cost and the components of production cost Calculate Production Cost for a given time period Operating Rate for a unit 2

4 Production Cost In power system operation it is important to have sufficient generation in service to meet customer load. This generation must be placed in and out of service and operated to achieve the lowest possible overall cost for the system at all times. 3

5 Why is Production Cost Important? First Commitment of Generation at 1600 minimizes Total Production Cost as an objective function. Production Cost has a direct impact on which units are scheduled by PJM. Important for Generation Owners to understand the data components that influence Total Production Cost. 4

6 Types of Production Cost Production Cost is the cost to operate a unit for a particular period of time. Two types of Production Costs are used: Hourly Production Cost Total Production Cost 5

7 Hourly Production Cost PJM

8 Hourly Production Cost Hourly Production Cost - Cost per hour to operate a unit assuming a startup has already occurred. Calculated by summing all costs which are incurred during one hour of operation. No-Load Cost Incremental Energy Cost Hourly Production Cost = No-Load Cost + Incremental Energy Cost $$$$$$$$$$$ 7

9 Hourly Production Cost No-Load Cost Cost per hour to maintain the boiler operating and the turbine and generator spinning at synchronous speed, but not generating any output (0 MW). This is a dollars per hour ($/hr) cost. Hourly Production Cost = No-Load Cost + Incremental Energy Cost MW 8

10 Hourly Production Cost Incremental Energy Cost Cost per hour to produce all of the energy increments above the 0 Mw generation level. Calculated by summing the cost of each increment of energy in the unit s incremental cost curve up to the generation level. This cost is a dollar per hour ($/hr) Hourly Production Cost = No-Load Cost + Incremental Energy Cost 9

11 Unit X Bid Data Hourly Production Cost = No-Load Cost + Incremental Energy Cost Offer Curve (max 10 points) MW Price segment 1 50 $ 10 segment 2 75 $ 50 segment $200 Note: This a 100 mw unit not a 225 mw unit! Eco Min MW 50 Eco Max MW 100 Hot Start cost $ 500 Intermediate Start $1000 Cold Start $1500 No Load Cost $500/hr 10

12 Hourly Production Cost Unit X Incremental Energy Cost at full load Inc #1 50 MW x $10/MWhr = $ 500/hr Inc #2 25 MW x $50/MWhr = $1250/hr Inc #3 25 MW x $200/MWhr = $5000/hr Sum of Incremental Energy Cost = $6750/hr 11

13 Hourly Production Cost Hourly Production Cost = No-Load Cost + Incremental Energy Cost No-Load Cost $500 + Sum of Incremental Energy Cost $6750 = Hourly Production Cost $

14 Total Production Cost PJM

15 Total Production Cost Total Production Cost - Calculated by adding all of the costs associated with starting a unit and operating it over a period of time. Two cost categories: Startup Costs Hourly Production Costs 14

16 Total Production Cost Calculation Startup Cost + (Hourly Production Cost x Hours of operation) = Total Production Cost 15

17 Total Production Cost Startup Cost Cost to bring the boiler, turbine and generator from shutdown conditions to a state ready to connect to the system. Cost vary with how long unit has been down Three categories: Hot Intermediate Cold Specified by owner/operator Cost is a $ cost and is only incurred once each time the unit operates regardless of the period of operation. 16

18 Start Up Info and emkt ABC Energy Example Unit 1 17

19 Total Production Costs Hourly Production Cost - Cost per hour to operate a unit assuming a startup has already occurred. Calculated by summing all costs which are incurred during one hour of operation. No-Load Cost Incremental Energy Cost Hourly Production Cost = No-Load Cost + Incremental Energy Cost $$$$$$$$$$$ 18

20 Total Production Cost Startup Cost + (Hourly Production Cost x Hours of operation) = Total Production Cost How Long Do We Expect To Run The Unit? 19

21 Total Production Cost Exercise GT-3.1 Let s Work Out Again! 20

22 Unit X Bid Data Offer Curve (max 10 points) MW Price segment 1 50 $ 10 segment 2 75 $ 50 segment $200 Eco Min MW 50 Eco Max MW 100 Hot Start cost $ 500 Intermediate Start $1000 Cold Start $1500 No Load Cost $500/hr 21

23 Total Production Cost Given that the cost to start unit X is a hot start and the unit is operated for 3 hrs. at 75 MW output (check unit curve), calculate the total production cost for unit X. Answer: ($500 + $1750/hr) x 3 hours = $6,750 $6,750 + $500 hot start = $7250 total production cost 22

24 Operating Rate PJM

25 Operating Rate Operating Rate is calculated at Eco Max. Used to rank order units Quick comparison for operators Hourly production cost at Eco Max divided by Eco Max MW. $$$ $$ $ 24

26 Operating Rate for Unit X Eco Max Hourly Production cost = $7250/hr (No Load = $500 and Incremental Energy = $6750) Eco Max = 100 Mw Operating Rate = $7250/hr / 100 Mw = $72.50 Mwh 25

27 Discussion Questions State which of the following costs are used once and which are used hourly Start-up cost: One time No-load cost: Hourly Incremental energy: Hourly? 26

28 Discussion Questions Why is the cold start-up of a unit more expensive than a hot start-up? Low boiler, turbine, and differential temperatures More fuel needed to get up to temperature 27

29 Discussion Questions In calculating hourly production costs, what components are included? Ans. No-load, and Incremental Energy cost? 28

30 Discussion Questions What are the components of total production cost? Ans. Start-up costs and sum of hourly production costs. 29

31 Exercise LS -3.3 Unit Data 30

32 Exercise LS -3.3 Unit Y Use Intermediate Start Determine: Hourly No-load = Min = Cost for Segment 1 = Cost for Segment 2 = Cost for Segment 3 = Hourly Production Economic Max = Operating Rate = Y Total Production $ for operating at Maximum Output and Satisfying Min Run = 31

33 Exercise LS -3.3 Unit Z Use Cold Start Determine: Hourly No-load = Min = Cost for Segment 1 = Cost for Segment 2 = Cost for Segment 3 = Hourly Production Economic Max = Operating Rate = Z Total Production $ for operating at Maximum Output and Satisfying Min Run = 32

34 Summary Units selected at 1600 are selected on basis of minimizing total production cost Total Production cost is affected by: - Startup costs - Temperature State of Unit - No-load costs - Incremental cost curve of energy - Minimum run time 33

35 Summary Production Cost is the cost to operate a unit for a particular period of time Hourly Production Cost - Cost per hour to operate a unit assuming a startup has already occurred. Total Production Cost - Calculated by adding all of the costs associated with starting a unit and operating it over a period of time. 34

36 Questions? 35