Installed Capacity (ICAP) Market Introduction

Transcription

1 Installed Capacity (ICAP) Market Introduction Nicolé K. Grottoli Senior Market Trainer, NYISO Intermediate ICAP Course November 7-8, 2017 Rensselaer, NY 1

2 ICAP Market Introduction Module Objectives Upon the completion of this module, participants will be able to: Name three benefits of the NYISO ICAP market Identify the basic processes and activities associated with managing NYISO s ICAP market Name at least three features of the ICAP Automated Market System (ICAP AMS) 2

3 ICAP Market Benefits.

4 ICAP Market Benefits Ensures resource adequacy Resources recover a portion of fixed costs Provides market signal for investment 4

5 Benefit: 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 5

6 Benefit: Ensures resource adequacy Example of NYCA Operating Day: 6

7 Benefit: Recover portion of fixed costs Variable Costs vs. Fixed Costs Energy Market Portion from ICAP Market 7

8 Benefit: Market signal for investment Potential Investors Will it be profitable to build a new plant or upgrade an existing plant? Where should I build a new plant? 8

9 Let s Review What are three benefits of the ICAP market?. 9

10 Let s Review How are variable costs recovered through Energy market? How are a portion of fixed costs recovered from the ICAP market?. 10

11 Market Processes and Activities.

12 Market Processes & Activities Capacity Resources NYISO ICAP Market Reliability Requirements ICAP Load Forecast 12

13 Types of Capacity Resources Generators, System Resource and Control Area System Resource Energy Limited Resource (ELR) and Capacity Limited Resource (CLR) Intermittent Power Resource (Wind, Solar, Landfill Gas) Hydro Station Resources Limited Control Run-of-River Hydro Resource Special Case Resource (SCR) Behind-the-Meter Net Generation Resource *Refer to ICAP Manual for details 13

14 How does the ICAP Market work? Offers to sell capacity into auctions Bids entered to procure capacity through the auction NYISO runs auctions to match bids and offers and to determine a clearing price Parties to a contract for capacity report the sales to the ISO Auxiliary processes and activities 14

15 Auxiliary processes and activities Determining the amount of capacity required Determining the amount of capacity available (Resource Capability) Determining the amount of capacity suppliers are qualified to offer Determining the amount of capacity obligation to procure 15

16 Auxiliary processes and activities Determining the amount of capacity required How much do we need? Minimum Installed Capacity Requirement NYCA-wide and Locational requirements NYCA Peak Load Forecast Meet Reliability Standards 16

17 Auxiliary processes and activities Determining Resource Capability How much capacity is available? Suppliers provide data to demonstrate their capability to produce a certain number of MW Seasonal effects taken into consideration 17

18 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 18

19 Auxiliary processes and activities Determining the amount of capacity obligation to procure - How much must be purchased? Loads required to purchase a specific amount based on their contribution to the Transmission District s (and Municipal Electric Utility s) peak load coincident with the NYCA peak load Locational requirements 19

20 Auxiliary processes and activities Data submittal Certification process Auction process for awards Suppliers that clear in the capacity market or have a certified bilateral, are required to offer energy in Day-Ahead Market, schedule a bilateral transaction, or notify NYISO of an outage Settlement process 20

21 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. 21

22 Let s Review In addition to submitting data to demonstrate their potential output, what else must suppliers do to be eligible to be an ICAP Supplier?. 22

23 ICAP Automated Market System ICAP AMS.

24 ICAP Automated Market System (ICAP AMS) Web-enabled application Supports auction preparation requirements Data management, retrieval and general information requirements of participation Transmission Owners enter load forecast and load-shift information Supports NYISO internal administrative functions required to administer the market ICAP Event Calendar Public postings produced NYCA Load Forecast and UCAP requirements by Transmission District and Municipal Electric Utility Auction Data/Results 24

25 ICAP AMS Secure user-specific data Load Serving Entities can view UCAP requirements Suppliers can submit and view DMNC information Suppliers may view their Resources Equivalent Demand Forced Outage Rate (EFORd) ratings over a Capability Period Submit bids/offers Provide certification information for bilateral transactions and for generator allocations View market position Settlement-related information to support customer invoicing 25

26 ICAP AMS 26

27 ICAP AMS Enter Offers Copy Offers Maintain Offers View Seller Awards Spot Offer Summary Enter Bids Copy Bids Maintain Bids View Buyer Awards 27

28 ICAP Market Introduction 28

29 ICAP Market Introduction ICAP Automated Market User s Guide 29

30 Summary Benefits of the ICAP Market Processes and activities associated with the ICAP Market Capacity Required Resource Capability (Capacity Available) Capacity Suppliers Qualified to Offer Load Serving Entities ( LSE ) Obligations Supplier Obligations ICAP Auction and Awards Settlements ICAP Automated Market System (ICAP AMS) 30

31 Capacity Requirements Overview NYCA Capacity Requirements Locational Capacity Requirements ICAP and UCAP Transmission District Capacity Requirements Load Serving Entity Capacity Requirements 31