Installed Capacity (ICAP) Market

Transcription

1 Installed Capacity (ICAP) Market Gina E. Craan Manager, Market Training, NYISO Market Overview Course September 13, 2018 Rensselaer, NY

2 ICAP Market Module Objectives: Upon the completion of this module, trainees will be able to: Name three benefits of the NYISO Capacity Market Describe the difference between Installed Capacity and Unforced Capacity List the basic processes and activities associated with conducting NYISO s Capacity Market 2

3 ICAP Market Overview How does it work? Suppliers offer their capacity Loads bid to procure capacity NYISO runs auctions to match bids and offers to determine a clearing price Auxiliary processes and activities 3

4 ICAP Market Overview Capacity defined Actual or potential ability to perform Maximum possible output Installed Capacity vs. Unforced Capacity ICAP UCAP 4

5 ICAP Market Benefits. 5

6 Benefits of the ICAP Market Ensures resource adequacy Resources recover a portion of fixed costs Provides market signal for investment 6

7 Benefits of the ICAP Market: Ensures resource adequacy Insurance Policy Do we have enough? Meet forecasted load plus margin Factor in planned outages Statewide average outage rate Consider Reserve Requirement Peak forecast for operating day 7

8 Benefits of the ICAP Market Recover portion of fixed costs Variable Costs vs. Fixed Costs Energy Market (Market Clearing Prices - LBMPs) Portion from ICAP Market (Auction Clearing Prices) 8

9 Benefits of the ICAP Market: Market signal for investment Potential Investors: Is it worth building a new plant? Where should I build a new plant? Do I have the technology to build a plant that is competitive? 9

10 Let s Review What are three benefits of the NYISO s Installed Capacity Market?

11 ICAP Market Mechanics. 11

12 ICAP Market Mechanics Load Serving Entities NYISO Auxiliary Processes & Activities ICAP Suppliers 12

13 ICAP Market Mechanics Auxiliary processes and activities Determining the amount of capacity required Determining the amount of capacity available Determining the amount of capacity suppliers are qualified to offer Determining the amount of capacity obligation to be procured 13

14 ICAP Market Mechanics Auxiliary processes and activities Determining the amount of capacity required How much do we need? Minimum Installed Capacity Requirement NYCA-wide and Locational Capacity Requirements Load Forecast Meet Reliability Standards Incorporates the Installed Reserve Margin (IRM) 14

15 ICAP Market Mechanics Auxiliary processes and activities Determining the amount of capacity available How much do we have? Suppliers provide data to support their capability to produce a certain number of MWs Seasonal effects taken into consideration Installed Capacity (ICAP) ICAP 15

16 ICAP Market Mechanics Auxiliary processes and activities Determining the amount of capacity suppliers are qualified to offer How much can be sold? Past performance How often is the unit available How much can be delivered Unforced Capacity (UCAP) UCAP 16

17 Let s Review Which of the following represents the amount of capacity a supplier has available? a) ICAP b) UCAP

18 Let s Review Which is not a factor in determining the amount of capacity a supplier is qualified to offer? a) Past performance of the unit b) The unit s ramp rate c) How often the unit is available d) How much of the unit s output can be delivered

19 ICAP Market Mechanics Auxiliary processes and activities Determining the amount of capacity obligation to procure - How much must be purchased? Loads required to purchase a specific amount If located in one of the localities, then Locational Capacity Requirements apply NYC Locality Long Island Locality G-J Locality Unforced Capacity (UCAP) UCAP 19

20 Let s Review Regarding the differences between ICAP and UCAP, which statement is false? a) UCAP is the unit for purchasing and selling ICAP b) UCAP factors in the historic availability of a unit c) LSEs purchase ICAP d) Suppliers offer UCAP

21 ICAP Market Mechanics Auxiliary processes and activities ICAP Market Auctions Capability Period Auction (6 Month Strip) Monthly Auction Spot Market Auction 21

22 ICAP Market Mechanics Auxiliary processes and activities Data Submittal Auction Process for awards Strip, Monthly, Spot Certification Process Suppliers selling capacity are required to offer MWs in Day Ahead Energy Market or notify NYISO of an outage Bid, Schedule or Notify Settlement Process Capacity payment uses applicable auction clearing price 22

23 ICAP Market Summary Benefits of the ICAP Market Difference between ICAP and UCAP Processes and activities associated with the ICAP Market Capacity Required Capacity Available Capacity Suppliers Qualified to Offer LSE Obligations Supplier Obligations ICAP Auctions and Awards Settlements 23

24 Additional Resources Tariffs MST and OATT Installed Capacity Manual NYISO Load Forecasting Manual ICAP Automated Market User s Guide Market Participant User s Guide Technical Bulletin 201: Enrollment of Special Case Resources in the ICAP Market 24