ERCOT Transmission Demand Curve Optimization Proposal
Explore proposed improvements to ERCOT's transmission demand curves, addressing issues with shadow price caps for violations of post-contingency constraints. Learn about the current problem statement, the proposed improvement plan, and an example proposal for a 345kV contingency constraint. See how adjusting shadow price caps can optimize market actions within ERCOT.
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Presentation Transcript
Steve Reedy Deputy Director, ERCOT IMM sreedy@potomaceconomics.com 512-225-7139 CMWG December 17, 2020
Problem Statement Current Transmission Demand Curves Minimum of $2,000 shadow price cap for very small violations of post-contingency constraints: Can cause price oscillations in constraints with no effective helping resources Overvalues small violations Maximum of $5,000 shadow price cap for very large violations of post-contingency constraints: Undervalues large violations. ERCOT implements out of market actions at ~125%, best to take all possible market actions before then. 2
Proposed Improvement All for post-contingency constraints BASECASE constraint shadow price cap to remain as-is at $9,251/MW Constraint flow from 100%-102% - Shadow price cap set as curve, starting at $500/MW and increasing linearly to current shadow price cap (depends on voltage level and whether deemed irresolvable) Flow 120%+ - Shadow price cap set at $9,251/MW 3
Proposal - Example Example for 345kV contingency constraint not deemed irresolvable: Shadow price cap ($/MW) 9,251 4,500 500 100% 102% 120% Contingency constraint flow as a percentage of limit *not to scale 4
