Transactional Energy Market Information Exchange (TeMIX)

Transcription

1 An OASIS Energy Market Information Exchange Technical Committee White Paper Transactional Energy Market Information Exchange (TeMIX) An Information Model for Energy Transactions in the Smart Grid By Edward G. Cazalet, PhD On behalf of the OASIS Energy Market Information Exchange Technical Committee Date: April 6, 2010

2 OASIS White Paper [Insert paragraph describing particular TC or Topic area as appropriate.] This white paper was produced and approved by the OASIS Energy Market Information Exchange Technical Committee as a Committee Draft. It has not been reviewed and/or approved by the OASIS membership at-large. Copyright 2009 OASIS. All rights reserved. All capitalized terms in the following text have the meanings assigned to them in the OASIS Intellect ual Property Rights Policy (the "OASIS IPR Policy"). The full Policy may be found at the OASIS website. This document and translations of it may be copied an d furnished to others, and derivative works that comment on or otherwise explain it or assist in its implementation may be prepared, copied, published, and distributed, in whole or in part, without restriction of any kind, provided that the above copyright notice and this section are included on all such copies and derivative works. However, this docume nt itself may not be modified in any way, including by removing the copyright notice or references to OASIS, except as needed for the purpose of developing any documen t or deliverable produced by an OASIS Technical Committee (in which case the rules applic able to copyrights, as set forth in the OASIS IPR Policy, must be followed) or as required to translate it into languages other than English. The limited permissions granted above are perpetual and will not be revoked by OASIS or its successors or assigns. This document and the information contained herein is provided on an "AS IS" basis and OASIS DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY THAT THE USE OF THE INFORMATION HEREIN WILL NOT INFRINGE ANY OWNERSHIP RIGHTS OR ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE Last revision 6 April 2010

3 31 Table of Contents Transactional Energy Market Information Exchange (TeMIX) 3

4 OASIS White Paper Introduction Transactional Energy Transactional energy relies on clear, clean signals that can be easily understood. Because most energy transactions are small, they must be automatable to achieve full participation. Anything that muddies the economic signals is a barrier to transactional energy. The purpose of the OASIS Energy Market Information Exchange (emix) Technical Committee is to define information models for exchanging prices and product definitions in energy markets. The purpose of this White Paper is define an information model for exchanging information to support Transactional Energy. These transactions are a subset of all possible transaction types that are selected to enable both human and automated transactions. We label this information model as the Transactional Energy Market Information Exchange ( TeMIX) model. The information model supports well-defined transactions among market participants, automated energy devices and energy exchanges/auctions. Transactional Energy is based on the clear and frequent communication of offers and transactions among buyers and sellers. Buyers and sellers may be generators, loads, or storage with metered delivery, or traders with no actual delivery and metering. A seller can be a load that is selling back from a contracted position. A buyer can be a generator that is buying back from a contracted position. Transactional Energy requires no information exchange other than offers for energy transactions and the agreements on transactions 1. The information exchange is the same for a large generator, distributed energy resource (DER), variable energy resource such as wind or solar, large industrial customer, home, electric vehicle, microgrid, energy trader, broker, exchange, aggregator, or system operator. Transactional Energy equalizes the opportunity for every technology and every participant on the grid including participants within a microgrid. 2 A defining attribute of Transactional Energy is that a sequence of energy transactions for a delivery of a quantity of defined energy product in a defined time interval at a defined location results in a position. This position can then be modified by additional buy and sell transactions. 3 1 Transactions by a generator or load device or entity require interval metering informaition. 2 Transactions will typically require the posting of collateral by both parties to a transaction or a portfolio of transactions. An information model for collateral management is not addressed in this paper. 3 A well-defined sequence of retail transactions leading to a defined position in each interval has been termed "Build Your Own Baseline". A retail baseline provides a foundation for retail dynamic pricing. See "When it Comes to Demand Response is FERC its Own Worst Enemy" Bushnell, Hobbs and Wolak, 4 Last revision 6 April 2010

5 Transactional Energy knows no hierarchy. Transactional Energy can simplify business for all parties including generators and Independent System Operators (ISOs). Transactional Energy offers a vision for the coordination of retail and wholesale customers using large numbers of frequent small transactions executed automatically by smart agents thereby reducing the need for complex centralized optimization 4. Transactional Energy is essentially the current standard transaction model for wholesale energy. TeMIX facilitates the extension of this wholesale transactional model (1) to retail markets and (2) to transactions on smaller time intervals closer to delivery. These close to delivery transactions are often spot market or balancing transactions. The concepts are similar to concepts used in bid/ask markets such as stock exchanges, however the transactions can be bilateral as well where there is no formal market exchange or auction. This definition of a Transactional Energy Information Model (TeMIX)) limits the types of transactions in the model to two: 1. a take-or-pay energy transaction, and 2. an option for a take-or-pay energy transaction. A take-or-pay transaction in the TeMIX model is an obligation to purchase energy over a given interval of time (measured in hrs) at a specific rate of delivery (kwh/hr or kw, for example). The rates if delivery of energy is also called power. The rate of delivery is constant over the entire interval. The energy delivered under the transaction in kwh is the rate(kw) times the number of hours (hrs) 5. Generally an energy transaction will specify a point-of-delivery that indicates which party is responsible for transmission and distribution costs, for example. An TeMIX option transaction is a put (sell option) or a call (buy option) by one of the parties to the transaction. Once the option is exercised it becomes a TeMIX take-or-pay transaction. An option transaction can be a form of "price insurance" or it can be viewed a form of a capacity contract or an ancillary services contract. All TeMIX offers and transactions are specified as to delivery location, time interval, price and rate of delivery. With these two transaction types and retail interval meters we can support a wide range of retail and wholesale transactions where the contract positions and obligations of all participants are well defined and outcomes and payments are unambiguous. 4 For an overview of how Transactional Energy can support the big vision for the smart grid see the comments submitted by Edward Cazalet to the Federal Energy Regulatory Commission on Integration of Variable Energy Resource (VERS) -_Cazalet.pdf 5 Specifying transaction as a rate of delivery is more useful and simpler than specifying the amount of energy delivery over an interval because standard intervals such as a day, month and year have variable durations. For example, a 1 kw (kw/kwh) contract for a 24 hour day will provide 24 kwh. For a short day for daylight saving time shift of 23 hours, 23 kwh would be delivered. For a long day 25 kwh would be delivered. If we had specified the energy to be delivered for a day as 24 kwh, then the rate of delivery would be kw for the 23-hour day, 1.0 kw for the 24-hour day, and 0.96 kw for the 25 hour day, which is confusing. Differences in days per month and days per leap year are other examples where specifying the rate of delivery (power level) is easier to work with rather than specifying the total amount energy delivered over the interval where the length of varies. Transactional Energy Market Information Exchange (TeMIX) 5

6 OASIS White Paper We will use the term "offer" to describe a tender to buy or sell energy. We could also use the terms "order" or "bid". The information models described herein follow the current draft emix information model. 6 Last revision 6 April 2010

7 Overview of the Transactional Energy Market Information (TeMIX) Model Actors The actors in this information model include any entity, device or market that is a Party to a prospective or actual energy transaction. The actors can take on the following two roles. 1. Buyer 2. Seller For example, a Buyer or Seller can be a retail customer, a device owned by a retail customer, a retail aggregator, a wholesale supplier, a device (such as an electric vehicle or a generator) owned by a retail of wholesale supplier, a retail or wholesale market or exchange, a broker or marketer. Any Party (an entity, device or market) can be a Buyer or a Seller given their current contracted position for energy in a delivery interval. A Party can be represented by a human or automated agent in carrying out transactions. Point-of-Delivery (Location) For retail transactions the point-of-delivery is typically the customer meter. Wholesale transactions are usually at specific electrical points on the grid which include meters at the locations of wholesale generators. Wholesale trading is often conducted at trading hubs that may combine a set of electrical locations. The costs and losses for transmission and distribution will factor into the prices of transactions at the retail and wholesale points-of-delivery. The focus here is on the information models to enable transactions no matter how the price may be negotiated or calculated. Delivery s Delivery intervals in this model are defined as an interval of time with a beginning time and ending time. For example a delivery interval might be one or more consecutive calendar years, calendar months, days, hours, 5-min intervals and 4-second intervals. For actual deliveries the interval meter and the interval defined by the Retail Service Provider or system operation will often define the final (shortest) delivery interval that will be measured. Transactional Energy Market Information Exchange (TeMIX) 7

8 OASIS White Paper Rate of Delivery An energy transaction in this model requires near-constant delivery over an interval 6. So a contract to deliver1 kwh/hr (1 kw) over a 24 hour day would be a contract for 1 kwh in each of the 24 hours (sub intervals ) of the day (a total of 24 kwh) and 1/12 kwh in each 5-min subintervals of the day. A short daylight savings day of 23 hours would deliver 23 kwh. However, in every subinterval of the day the rate of delivery (power) would be the same, until modified by a possible transaction on a subterval of a day, for example. By assembling a set of transactions a party can shape the total energy transacted as desired. For each interval the sum of the rates of delivery for all transactions for a party (assuming sell transactions are netted against buy transactions) is called the Party's position for the interval. Note that a position for a Party could include transactions with several parties. A Party (buyer or seller) would typically enter into transactions for perhaps a year or more ahead based on need ( load entity) or capability (supply entity) and economic factors. Close to delivery hourly or shorter interval transactions would be used to reshape and fine tuning final delivery of energy. Balancing Transactions After a delivery interval passes then the delivery obligation is settled. If delivery occurs to a meter, then the difference between a Party's position (express as energy over the interval) and the meter reading over the interval is called the imbalance energy for the interval. The intervals will be at the resolution of the meter readings used for settling imbalance energy, which might be an hour, 15-minutes, 5-minutes, or 4-seconds, for example. If a Party is not taking delivery, the Party will typically net out its position before delivery. If there remains an imbalance then the imbalance will need to be settled as in the case of a metered delivery. An imbalance amount must be settled. Typically, a retail service provider will provide balancing services for its customers and a system operator will provide wholesale balancing services. Where market rules allow, third party balancing services or bilateral transactions negotiated after delivery can be used to settle the imbalances. The imbalance energy is recorded as an energy transaction that will net the imbalance to zero. Reliability In today's electric energy markets a system operator has the ultimate responsibility for reliable service. To that end the system operator enters into various contracts with generators and loads. In the future smart grid, with smart meters, microgrids and customer choice service reliability may become more of a customer choice. TeMIX is designed to support both reliability models. 6 An exception to the constant rate of delivery allows for variations in the rate of delivery within the metered delivery interval. For example, if the metered delivery interval is one hour, 5-min meter readings would not be relevant. Likewise if the metered delivery interval is 5-min then variations on 4 second intervals would not be measured. 8 Last revision 6 April 2010

9 Take-or-Pay Energy Transactions A Take-or-Pay Energy transaction is the core transaction in the TeMIX model. A take-or-pay transaction obligates the buyer to take delivery of the agreed energy and pay the agreed amount. It also obligates the seller to deliver the agreed energy at the agreed price. If either party fails to perform, the aggrieved party has the right to enter into a transaction to reverse the remainder of the deliveries under the transaction and charge or pay the defaulting party for the difference. The defaulting party obviously has similar rights to enter into an offsetting transaction with any party prior to default. Collateral Requirements for Transactions Because of the possibility of default by either party to a transaction, collateral typically will be posted by both parties to a transaction. Collateral in support of transactions is a critical element of the TeMIX model. Collateral management is a complex subject that deserves its own information model in is beyond the scope of this White Paper. The exposure of one party to another depend on the total portfolio of all transactions between the parties and with third parties. Clearing exchanges can reduce the costs of collateral management by various concepts of collateral netting. Requiring a collateral amount to be associated with every transaction would be inefficient. Transactional Energy Market Information Exchange (TeMIX) 9

10 OASIS White Paper Information Models for Transactional Energy Transaction Types The following four information models are defined for the Transactional Energy Model (TEMIX): 1. Energy Transaction : An transaction between a buyer and a seller to deliver energy at a constant rate over the interval. 2. Energy Offer : An offer of an Energy Transaction. 3. Energy Option Transaction : A put or a call option for an Energy Transaction. 4. Energy Option Offer : An offer for an Energy Option Transaction Process to Reach Agreements to Transactions In this paper we abstract the energy business model to focus on the information model for exchange of information for energy transactions Hence, it is beyond the scope of this document to address how buyers and sellers reach agreements on transactions or how a regulated utility would compute its prices. It could be bilateral negotiation, quotes and acceptance, auctions or bid/ask continuous markets a retail regulated tariff offer. Typically, a sequence of one or more Energy Offers by either party leads to an Energy Transaction by two parties. As mentioned earlier, Transactional Energy is ideally based on buyers and sellers offing and executing many frequent, small transactions. A base set of Energy Transactions could provide a cost-of-service baseline for a regulated retail service provider, wherein the customer is given an allocated baseline transaction. Additional transactions could reshape the actual deliver from the baseline. Offers can be long-term, yearly or monthly offers, or shorter-term daily, hourly, or 5-min offers, for example. The simplest case might be monthly transactions for a retail customer's average usage and then hourly buy and sell transactions to shape the power to the customer's needs. Sellers might try to maximize profits in the transactions they agree to, with long-term agreements of month or years and shorter term transactions based on spot hourly offers close to delivery to buy or sell to fit the market demand. Shorter term transactions would typically be automated. The set of offers on future intervals essentially defines a forward price curve for buyers and sellers. As time passes the future intervals become present intervals and eventually delivered intervals. The availability of forward offers greatly simplifies generator unit commitment and operation decisions as well as storage and thermal management decisions such as air conditioner operation and electric vehicle charging. In addition to Energy Transactions parties may want to buy or sell 'insurance against very high or very low prices using Energy Option Transactions. An Energy Option Transaction has no effect on deliveries until it is exercised and an additional Energy Transaction is created. 10 Last revision 6 April 2010

11 An Energy Option Transaction, such as a call option, is an option that is may be exercised by the buyer for an Energy Transaction at a specified strike price up to a specified quantity (rate of delivery over an interval). The buyer of a call option could be interested in protecting himself against extremely high prices in the event of a shortage. A seller of a call option could be interested in giving up a small chance of a very high price transaction for a lower fixed payment that only is exercised in the event of high prices. The buyer of an Energy Option Transaction pays an option premium price to the seller. Energy Option Transactions can be used instead of explicit capacity and ancillary services products by a system operator or a customer to achieve reliability and cost stability. An Energy Option can also be used as a well-defined demand response transaction against a baseline that requires no estimation of what the consumption would have been without the demand response transaction. An Energy Option Offer by either party is an offer to enter into a Energy Option Transaction. Once agreement is reached it becomes an Energy Option Transaction. The Four Information Models The four information models for the TEMIX are described in Tables 1 to 4 as follows: Transactional Energy Market Information Exchange (TeMIX) 11

12 OASIS White Paper Energy Transaction Element Extended Price Rate of Delivery Buyer Seller Transaction Execution Time Location Meter ID Currency Units Table 1: Energy Transaction Information Model Specification The total cost of the transaction over the at the Rate of Delivery. The Extended Price is the Price times the Rate of Delivery times the duration of the. The rate of delivery over the interval at a constant rate. The seller is obligated to deliver at this rate and the buyer is obligated to take at this rate over the. The amount of energy to be delivered is the Rate of Delivery times the duration of the The interval of time during which the energy, was, is, or will be available for physical delivery. An is designated by a Start Time and an End Time. The duration of the is the End-Time - Start-Time. The Party (entity, device or market) buying the energy. The Party (entity, device or market) selling of the energy. Date-Time the transaction was executed. The geospatial location for delivery of the energy (Point of Delivery). If delivery is at a meter, an identifier designating the Meter. Code for the currency used. The units of measure for the energy. Table 2 : Energy Offer Information Model Energy Offer Element Price Rate of Delivery Buy/Sell Flag Offering Party Counter Party Offer Availability Location Meter ID Currency Units Specification The price of a single unit of energy. If offered into a market this may be a limit order price as the highest buy price or the lowest sell price offered. The rate of delivery over the at a constant rate. The seller is obligated to deliver at this rate and the buyer is obligated to take at this rate over the. The amount of energy to be delivered is the Rate of Delivery times the duration of the. A transaction resulting from this offer may be for any rate of delivery up to this maximum rate. Boolean variable designating the offer as (1) an offer to buy energy by the Offering Party from the Counter Party, or (2) an offer to sell energy by the Offering Party to the Counter Party. The interval of time during which the energy, was, is, or will be available for physical delivery. An is designated by a Start Time and an End Time. The duration of the is the End-Time - Start-Time The Party (entity, device, or market) offering the energy The Party (entity(s), device(s), or market) receiving the offer of energy. The time interval that the offer is available for a transaction. The geospatial location for the delivery of the energy. If delivery is at a meter, an identifier designating the Meter. Code for the currency used. The units of measure for the energy. 12 Last revision 6 April 2010

13 Table 3 : Energy Option Transaction Information Model Energy Option Element Extended Price Exercise Price Rate of Delivery Selling Party Buying Party Put/Call Flag Transaction Execution Time Exercise Location Meter ID Currency Units Specification The total cost of the energy option transaction ( the option premium). The price to be paid for a single unit of energy (strike price) upon exercising the option up to the Maximum Rate of Delivery. When exercised, the maximum constant rate of delivery over the. An energy transaction resulting from this option may be for any rate of delivery up to this maximum rate. The interval of time during which the energy, was, is, or will be available for physical delivery. An is designated by a Start Time and an End Time. The duration of the is the End-Time - Start-Time The Party (entity, device or market) selling the energy option. The Party (entity, device or market) buying the energy option. The buying party has the right to exercise the option. Boolean variable designed the option as a put (An option to sell option by the option Buying Party) or a call option (An option to buy by the option buying Party). Date-Time the option offer transaction was executed. The time interval the option is available to be exercised. The geospatial location for the energy delivery. If delivery is at a meter, an identifier designating the Meter. Code for the currency used. The units of measure for the energy. Table 4 : Energy Option Offer Information Model Energy Option Offer Element Option Price Specification The price of an option on a single unit of energy ( option premium per unit of Maximum Rate of Delivery. Exercise Price The price to be paid for a single unit of energy (strike price) upon exercising the option. Rate of When exercised, the maximum constant rate of delivery over the. An option transaction Delivery resulting from this offer may be for any rate of delivery up to this maximum rate. The interval of time during which the energy, was, is, or will be available for physical delivery. An is designated by a Start Time and an End Time. The duration of the is the End- Time - Start-Time Offering Party The Party (entity, device, or market) offering the energy option. Counter Party The Party (entity(s), device(s), or market) receiving the offer of the energy option. Exercise Party The Party that would hold the right to exercise the option. Put/Call Flag Boolean variable designed the option as a put (sell option by the Exercise Party) or a call option (buy by the Exercise Party). Offer The time interval that the option offer is available for a transaction. Availability Schedule Exercise Location Meter ID Currency Units The time interval the option is available to be exercised. The geospatial location for the energy. If delivery is at a meter, an identifier designating the Meter. Code for the currency used. The units of measure for the energy. Transactional Energy Market Information Exchange (TeMIX) 13

14 OASIS White Paper Application Examples The following examples illustrate the application of the TeMIX model to retail and wholesale electricity transactions. Each example is illustrative of the application of TeMIX. The examples focus on the information exchange communication and not the processes for price calculation, negotiation, or market clearing. Retail Real-Time Pricing (RTP) Retail Real-Time Pricing is an offer by a Retail Service Provider (RSP) to sell energy to a retail customer a price that changes with market conditions. The offer can be communicated by the information model in Table 2 : Energy Offer Information Model. This example is described in Table 5 : Retail RTP Offer Example. Once an offer is transacted by the two parties it becomes a transaction modeled by 14 Last revision 6 April 2010

15 Table 1: Energy Transaction Information Model. The example real-time transactions is modeled in Table 6: RTP Energy Transaction. Table 5 : Retail RTP Offer Example Energy Offer Specification Element Price Price in $ per kwh. Rate of Delivery The rate of delivery over the interval as measured by the meter less the cumulative position from any forward transactions. Buy/Sell Flag Sell Offer to Counter Party (Retail Customer) or Buy Offer if the Retail Customer is a seller. The delivery interval which is typically a specific hour, 15-minute (0.25 hours) or 5 minute ( hours) interval designated by a Start-Time and End-Time. Offering Party The Retail Service Provider. Counter Party The Retail Customer or a set of eligible retail customers. Offer Availability The time interval that the offer is available for a transaction. There are three possibilities. 1. Ex-post Offer (after the metered delivery interval) extending to settlement date-time. 2. Ex-Ante Offer (before the metered delivery interval) extending to closure time before the start time of the delivery interval. 3. Ex-Ante Offer extending to offer closure time before start time of metered delivery interval followed by an Ex-post Offer (same as 1) for the metered difference between any amount transacted under the Ex-Ante Offer. The geographic area comprising the set of residential customers eligible for this RTP offer. Location Meter ID If delivery is at a meter, an identifier designating the Meter. Currency US Dollars ($) Units kwh Table 6: RTP Energy Transaction Example Energy Specification Transaction Element Extended Price The total cost of the transaction over the at the Rate of Delivery. The Extended Price is the Price times the Rate of Delivery times the duration of the. Rate of Delivery The rate of delivery over the interval as measured by the meter less the cumulative position from any forward transactions. The delivery interval which is typically a specific hour, 15-minute (0.25 hours) or 5 minute ( hours) interval designated by a Start-Time and End-Time. Buyer The Retail Customer (unless the customer is a net seller). Seller The Retail Service Provider (unless the customer is a net seller) Transaction Date-Time the transaction was executed. Execution Time Location The geographic area comprising the set of residential customers eligible for this RTP offer. Meter ID Retail Customer Meter ID. Currency US Dollars ($) Units kwh Retail Forward Baseline with RTP This example supports a sequence of forward transactions to build a baseline position against which RTP (as described above) can be applied for the metered difference between the forward baseline position and the metered delivery. Forward transactions allow the customer to fix the cost of a baseline amount of Transactional Energy Market Information Exchange (TeMIX) 15

16 OASIS White Paper energy, while retaining the opportunity for the customer to manage consumption based on real-time prices. The forward offers are describe first in Table 7 : Retail Forward Offers Example followed by the actual forward transaction in Table 8 : Forward Energy Transaction. Alternatively, in a regulated retail setting, the Retail Service Provider may fix the forward transaction rates of delivery and price based on an approved retail rate design. Table 7 : Retail Forward Offers Example Energy Offer Specification Element Price Price in $ per kwh. Rate of The rate of delivery over the at a constant rate in kw. The seller is obligated to deliver at Delivery this rate and the buyer is obligated to take at this rate over the. The amount of energy to be delivered is the Rate of Delivery times the duration of the measures in hours (or fractions of hours). The Retail Customer can transact for any rate of delivery up to offered rate of delivery, but once a transaction is executed the rate of delivery is fixed. Buy/Sell Flag Sell Offer to Counter Party ( typically the Retail Customer unless the retail customer is selling back)) The delivery interval which is typically a specific hour, 15-minute (0.25 hours) or 5 minute ( hours) interval designated by a Start-Time and End-Time. Offering Party The Retail Service Provider. Counter Party The Retail Customer or a set of eligible retail customers. Offer The time interval that the offer is available for a transaction. The offer is available when offered Availability by the offering party up until a time before the delivery start time. The offer can be withdrawn at any time up to acceptance by the Counter Party. Typically a sequence of offers is made, months, days, or hours before delivery at different prices. Location The set of residential customers eligible for this price. Meter ID If delivery is at a meter, an identifier designating the Meter. Currency US Dollars ($) Units kwh Table 8 : Forward Energy Transaction Example Energy Specification Transaction Element Extended Price The total cost of the transaction over the at the Rate of Delivery. The Extended Price is the Price times the Rate of Delivery times the duration of the. Rate of Delivery The rate of delivery over the at a constant rate in kw. The seller is obligated to deliver at this rate and the buyer is obligated to take at this rate over the. The amount of energy to be delivered is the Rate of Delivery times the duration of the measures in hours (or fractions of hours). The Retail Customer can transact for any rate of delivery up to offered rate of delivery, but once a transaction is executed the rate of delivery is fixed. The delivery interval which is typically a specific hour, 15-minute (0.25 hours) or 5 minute ( hours) interval designated by a Start-Time and End-Time. Buyer The Retail Customer (unless the Retail Customer is selling back) Seller The Retail Service Provider (unless the Retail Customer is selling back) Transaction Date-Time the transaction was executed. Execution Time Location The geospatial location for delivery of the energy (Point of Delivery). Meter ID Retail Customer Meter ID. Currency US Dollars ($) 16 Last revision 6 April 2010

17 Units kwh Wholesale Trading Wholesale trading is defined here as a sequence of buy and sell offers and transactions that leads to a position by the wholesale trading parties. A pure trader will typically net out his position to zero before delivery. Retail Service Providers may trade in the wholesale market to meet the retail loads they serve. A wholesale generator may have a portfolio of generation that supply a set of wholesale transactions. Any final imbalances by the trading parties will typically be settled in a balancing transactions using offers from a balancing authority such as a system operator. In Table 9 : Wholesale Trading Offer we describe the wholesale offers and in Table 10 : Wholesale Energy Trading Transaction we describe the wholesale transactions. Transactional Energy Market Information Exchange (TeMIX) 17

18 OASIS White Paper Table 9 : Wholesale Trading Offer Energy Offer Specification Element Price Price in $ per kwh. Rate of The rate of delivery over the at a constant rate in MW. The seller is obligated to deliver at Delivery this rate and the buyer is obligated to take at this rate over the. The amount of energy to be delivered is the Rate of Delivery times the duration of the measures in hours (or fractions of hours). Buy/Sell Flag Boolean variable designating the offer as (1) an offer to buy energy by the Offering Party from the Counter Party, or (2) an offer to sell energy by the Offering Party to the Counter Party. The delivery interval which is typically a specific hour, 15-minute (0.25 hours) or 5 minute ( hours) interval designated by a Start-Time and End-Time. Offering Party The Offering Wholesale Party Counter Party The Wholesale Counter Party Offer The time interval that the offer is available for a transaction. The offer is available when offered Availability by the offering party up until a time before the delivery start time. The offer can be withdrawn at any time up to acceptance by the Counter Party. Typically a sequence of offers is made, months, days, or hours before delivery at different prices. Location A trading hub or transmission node where delivery is settled (Point of Delivery). Meter ID If delivery is at a meter, an identifier designating the Meter. Currency US Dollars ($) Units Energy Transaction Element Extended Price Rate of Delivery Buyer MWh ( MegaWatt Hours) Table 10 : Wholesale Energy Trading Transaction Specification The total cost of the transaction over the at the Rate of Delivery. The Extended Price is the Price times the Rate of Delivery times the duration of the. The rate of delivery over the at a constant rate in MW. The seller is obligated to deliver at this rate and the buyer is obligated to take at this rate over the. The amount of energy to be delivered is the Rate of Delivery times the duration of the measures in hours (or fractions of hours). The Retail Customer can transact for any rate of delivery up to offered rate of delivery, but once a transaction is executed the rate of delivery is fixed. The delivery interval which is typically a specific hour, 15-minute (0.25 hours) or 5 minute ( hours) interval designated by a Start-Time and End-Time. The Wholesale Buyer Seller The Wholesale Seller Transaction Date-Time the transaction was executed. Execution Time Location A trading hub or transmission node where delivery is settled (Point of Delivery). Meter ID Customer Meter ID. Currency US Dollars ($) Units MWh (Megawatt hours) Retail Call Options for Price Protection and Demand Response Example to be developed. 18 Last revision 6 April 2010

19 Wholesale Auction Market Offers and Transactions Example to be developed. Wholesale Ancillary Services Offers and Transactions Example to be developed. Transactional Energy Market Information Exchange (TeMIX) 19

20 Notes 20 Last revision 6 April 2010