Energy Storage Resource (ESR) Modeling and Settlement Overview
Explore the current modeling and settlement process for Energy Storage Resources (ESRs) in the ERCOT system. Learn about ESR-CLR and ESR-Gen units, bid curves, dispatch mechanisms, meter pricing, and upcoming process changes. Gain insights into energy and ancillary service imbalance settlement with examples and implications of NPRR987 and OBDRR017.
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Presentation Transcript
Energy Storage Resource (ESR) Dispatch and Settlement Blake Holt Market Design 11.18.2022
Goals for todays presentation 1. High level overview of current ESR modeling, energy offer and bid curves, and dispatch 2. High level overview of meter price composition 3. Fundamentals of Energy and Ancillary Service Imbalance 4. ESR settlement examples 5. Changes to this process coming with NPRR987 and OBDRR017 2 PUBLIC
ESR Modeling Today Energy Storage Resources (ESRs) are currently modeled as two distinct units. The Controllable Load Resource (ESR-CLR) and the battery (ESR-Gen) are dispatched and settled separately in the ERCOT systems. This separation means that the two sides of the ESR must submit separate curves to indicate their willingness to charge from or dispatch energy into the grid. The dispatch is based on the LMP at the electrical bus. ESR-CLR bid curve ESR-Gen energy offer curve 3 PUBLIC
Energy paid/charged meter prices, not SPP ESR-CLR RTRMPRESR b = Max [-$251, ( (RNWFL b, y * RTLMP b, y) + RTRSVPOR +RTRDP)] RTRMPR b = Max [-$251, ( (RNWF b, y * RTLMP b, y) + RTRSVPOR + RTRDP)] ESR-Gen RTRDP (RDPA) Meter Price RTRSVPOR (ORDC) RTLMP (LMP) 4 PUBLIC
Energy and AS Imbalance settlement Generator 120 100 80 MW 60 40 20 0 0:00:00 3:00:00 6:00:00 9:00:00 12:00:00 15:00:00 18:00:00 21:00:00 0:00:00 High Sustained Limit Generation RRS Award 5 PUBLIC
Energy and AS Imbalance settlement Generator 120 100 MCPC 80 MW 60 40 20 0 0:00:00 3:00:00 6:00:00 9:00:00 12:00:00 15:00:00 18:00:00 21:00:00 0:00:00 High Sustained Limit Generation RRS Award 6 PUBLIC
Energy and AS Imbalance settlement Generator 120 100 MCPC 80 MW 60 40 20 Meter Price = LMP + ORDC + RDPA 0 0:00:00 3:00:00 6:00:00 9:00:00 12:00:00 15:00:00 18:00:00 21:00:00 0:00:00 High Sustained Limit Generation RRS Award 7 PUBLIC
Energy and AS Imbalance settlement Generator 120 100 MCPC 80 MW 60 ORDC + RDPA 40 20 Meter Price = LMP + ORDC + RDPA 0 0:00:00 3:00:00 6:00:00 9:00:00 12:00:00 15:00:00 18:00:00 21:00:00 0:00:00 High Sustained Limit Generation RRS Award 8 PUBLIC
Energy and AS Imbalance settlement Generator 120 100 MCPC 80 MW 60 ORDC + RDPA 40 20 Meter Price = LMP + ORDC + RDPA 0 0:00:00 3:00:00 6:00:00 9:00:00 12:00:00 15:00:00 18:00:00 21:00:00 0:00:00 High Sustained Limit Generation RRS Award 9 PUBLIC
Energy and AS Imbalance settlement Generator 120 100 ORDC+ RDPA MCPC 80 MW 60 ORDC + RDPA 40 20 Meter Price = LMP + ORDC + RDPA 0 0:00:00 3:00:00 6:00:00 9:00:00 12:00:00 15:00:00 18:00:00 21:00:00 0:00:00 High Sustained Limit Generation RRS Award 10 PUBLIC
Energy and AS Imbalance settlement Generator Ancillary Service Imbalance Charge (RTASIAMT) DAM payment for Procured Capacity for RRS (PCRRAMT) 120 100 ORDC+ RDPA MCPC 80 MW 60 ORDC + RDPA 40 20 Meter Price = LMP + ORDC + RDPA 0 0:00:00 3:00:00 6:00:00 9:00:00 12:00:00 15:00:00 18:00:00 21:00:00 0:00:00 High Sustained Limit Generation RRS Award Ancillary Service Imbalance Payment (RTASIAMT) Energy Imbalance Payment (RTEIAMT) Key Take-Away: When AS is deployed, a generator is only paid LMP + MCPC for the AS capacity that was reserved and deployed. 11 PUBLIC
Energy and AS Imbalance settlement CLR 12 10 8 MW 6 4 2 0 0:00:00 4:00:00 8:00:00 12:00:00 16:00:00 20:00:00 0:00:00 Net Power Consumption Low Power Consumption RRS award 12 PUBLIC
Energy and AS Imbalance settlement CLR 12 10 MCPC 8 MW 6 4 2 0 0:00:00 4:00:00 8:00:00 12:00:00 16:00:00 20:00:00 0:00:00 Net Power Consumption Low Power Consumption RRS award 13 PUBLIC
Energy and AS Imbalance settlement CLR 12 10 MCPC 8 MW 6 4 ORDC + RDPA 2 0 0:00:00 4:00:00 8:00:00 12:00:00 16:00:00 20:00:00 0:00:00 Net Power Consumption Low Power Consumption RRS award 14 PUBLIC
Energy and AS Imbalance settlement CLR 12 10 MCPC 8 MW 6 Meter Price = LMP + ORDC + RDPA 4 ORDC + RDPA 2 0 0:00:00 4:00:00 8:00:00 12:00:00 16:00:00 20:00:00 0:00:00 Net Power Consumption Low Power Consumption RRS award 15 PUBLIC
Energy and AS Imbalance settlement CLR DAM payment for Procured Capacity for RRS (PCRRAMT) Energy Imbalance Charge (RTEIAMT) 12 10 MCPC 8 MW 6 Meter Price = LMP + ORDC + RDPA 4 ORDC + RDPA 2 0 0:00:00 4:00:00 8:00:00 12:00:00 16:00:00 20:00:00 0:00:00 Net Power Consumption Low Power Consumption RRS award Ancillary Service Imbalance Payment (RTASIAMT) Key Take-Away: A CLR is only charged LMP when consuming. 16 PUBLIC
ESR dispatch and settlement - normal 100MW ESR example 100 100 80 80 Dispatch and Reserve (MW) 60 60 Price ($/MWh) 40 40 20 20 0 0 -20 -20 -40 -40 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 LMP RDPA ORDC ESR-CLR basepoint ESR-Gen basepoint When the LMP drops below $40 the ESR-CLR is willing to charge. It gets a dispatch instruction of 15MW. When the LMP rises above $60 the ESR-Gen is willing to generate. It gets a dispatch instruction of 10 to 20MW. ESR-CLR ESR-Gen Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) (2,888) (825) (413) 4,175 575 288 17 * positive dollars = payment, negative dollars = charge PUBLIC
ESR dispatch and settlement - normal 100MW ESR example 100 HSL ESR-Gen 100 100 ESR-Gen Online Reserve AS Imbalance (ORDC) AS Imbalance (RDPA) Net 2,750 1,375 4,125 80 80 Dispatch and Reserve (MW) 60 60 50 HSL Price ($/MWh) ESR-Gen Online Reserve 40 40 20 20 0 0 ESR-CLR Online Reserve -20 -20 -40 -40 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 LMP RDPA ORDC ESR-CLR basepoint ESR-Gen basepoint When the ESR-CLR is charging, the load is treated as online reserve. The ESR-Gen is also online (at a reduced state of charge) and providing online reserve with its dispatchable range. When the ESR-Gen is online and generating below its HSL, the dispatchable range is treated as online reserve. ESR-CLR ESR-Gen Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net (2,888) (825) (413) 825 413 (2,888) 4,175 575 288 2,925 1,463 9,425 18 * positive dollars = payment, negative dollars = charge PUBLIC
ESR dispatch and settlement - normal 100MW ESR example 100 HSL ESR-Gen 100 100 ESR-Gen Online Reserve AS Imbalance (ORDC) AS Imbalance (RDPA) Net 2,750 1,375 4,125 80 80 Dispatch and Reserve (MW) 60 60 50 HSL Price ($/MWh) ESR-Gen Online Reserve 40 40 20 20 0 0 ESR-CLR Online Reserve -20 -20 -40 -40 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 LMP RDPA ORDC ESR-CLR basepoint ESR-Gen basepoint The ESR-CLR is essentially only charged LMP for consuming. The payments & charges from the ORDC and RDPA adders cancel out. The ESR-Gen gets paid LMP+ORDC+RDPA for generation, and ORDC+RDPA for any headroom while online. ESR-CLR ESR-Gen Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net (2,888) (825) (413) 825 413 (2,888) 4,175 575 288 2,925 1,463 9,425 19 * positive dollars = payment, negative dollars = charge PUBLIC
ESR dispatch and settlement - extreme 100MW ESR example 6000 120 5000 100 Dispatch and Reserve (MW) 4000 80 Price ($/MWh) 3000 60 2000 40 1000 20 0 0 -1000 -20 -2000 -40 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 LMP RDPA ORDC ESR-CLR basepoint ESR-Gen basepoint When the LMP drops below $2000 the ESR-CLR is willing to charge. It gets a dispatch instruction of 15MW. When the LMP rises above $2000 the ESR-Gen is willing to generate. It gets a dispatch instruction of 100MW. ESR-Gen ESR-CLR (79,290) (9,956) (192,004) Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) 769,373 18,465 212,162 20 * positive dollars = payment, negative dollars = charge PUBLIC
ESR dispatch and settlement - extreme 100MW ESR example 6000 120 5000 100 ESR-Gen Dispatch and Reserve (MW) AS Imbalance (ORDC) AS Imbalance (RDPA) Net 26,549 512,010 538,559 4000 80 Price ($/MWh) 3000 60 40 HSL 2000 40 ESR-Gen On Rsv 1000 20 0 0 ESR-CLR On Rsv -1000 -20 -2000 -40 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 LMP RDPA ORDC ESR-CLR basepoint ESR-Gen basepoint When the ESR-CLR is charging, the load is treated as online reserve. The ESR-Gen is also online (at a reduced state of charge) and providing online reserve with its dispatchable range. The ESR-Gen is dispatched up to its HSL and does not receive any additional payments for providing online reserve. The entire unit is being used for energy. ESR-Gen ESR-CLR (79,290) (9,956) (192,004) Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net 769,373 18,465 212,162 0 0 9,956 192,004 (79,290) 1,000,000 21 * positive dollars = payment, negative dollars = charge PUBLIC
ESR dispatch and settlement - extreme 100MW ESR example 6000 120 5000 100 ESR-Gen Dispatch and Reserve (MW) AS Imbalance (ORDC) AS Imbalance (RDPA) Net 26,549 512,010 538,559 4000 80 Price ($/MWh) 3000 60 40 HSL 2000 40 ESR-Gen On Rsv 1000 20 0 0 ESR-CLR On Rsv -1000 -20 -2000 -40 0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 LMP RDPA ORDC ESR-CLR basepoint ESR-Gen basepoint The ESR-CLR is essentially only charged LMP for consuming. The payments & charges from the ORDC and RDPA adders cancel out. The ESR-Gen gets paid LMP+ORDC+RDPA for generation, and ORDC+RDPA for any headroom while online. ESR-Gen ESR-CLR (79,290) (9,956) (192,004) Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net Energy Imbalance (LMP) Energy Imbalance (ORDC) Energy Imbalance (RDPA) AS Imbalance (ORDC) AS Imbalance (RDPA) Net 769,373 18,465 212,162 0 0 9,956 192,004 (79,290) 1,000,000 22 * positive dollars = payment, negative dollars = charge PUBLIC
ESR dispatch and settlement post NPRR987 and OBDRR017 The remaining portions of NPRR987 and ODBRR017 will be implemented at a future date and will incorporate an ESR state of charge into the ORDC pricing and AS Imbalance settlement Real-Time Energy Imbalance pricing and settlement will remain the same OBDRR017 changes Rs = RTOLCAP = RTOLHSL RTBP + RTCLRCAP + RTNCLRCAP + RTESRCAP RTOLNSRS RTPBPC RTESRCAP = Min(ESR Gen HSL ESR Gen Base Point, SOC Telem SOC OperMin) + ESR CLR Base Point 23 PUBLIC
