Improving Market Efficiency with VER and Virtual Participation
Enhance market efficiency and reduce inefficiencies by incentivizing VER and virtual participation in the day-ahead market. Southwest Power Pool (SPP) aims to converge prices between day-ahead and real-time markets, allocate costs to causers, and align with strategic plans. Stakeholder input is crucial for designing and implementing this initiative to drive market efficiency.
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Presentation Transcript
INCENTIVIZING VER AND VIRTUAL PARTICIPATION IN DAY-AHEAD MARKET OCTOBER 28-29, 2021 Helping our members work together to keep the lights on... today and in the future. SPPorg southwest-power-pool SouthwestPowerPool
SIR074 INCENTIVIZING VER AND VIRTUAL PARTICIPATION IN DAY-AHEAD MARKET, MMU Purpose what will the initiative do for SPP Converges prices between the day-ahead and real-time markets. Increase efficient commitment of resources in real-time market. Incentivize VER and virtual transactions in the day-ahead market. Potential Benefit How is SPP improved by implementing this initiative Reduces market inefficiencies caused by inflated day-ahead prices and deflated real-time prices. Reduce real-time uplift caused by deflated real-time prices. Allocation of costs to cost causers. Alignment with existing SIR 2
SIR074 INCENTIVIZING VER AND VIRTUAL PARTICIPATION IN DAY-AHEAD MARKET, MMU Potential Impact Potential System / Process Impacts Market clearing engine and settlement: Medium Incentivize price convergence between the day-ahead and real-time markets. Potential Complexity: High, Medium, Low Design: Medium Implementation: Medium Potential Compliance Impacts 3
SIR074 INCENTIVIZING VER AND VIRTUAL PARTICIPATION IN DAY-AHEAD MARKET, MMU Potential Value Add SPP Strategic Plan Alignment SPP Strategic Plan Alignment SPP MMU ASOM Recommendation Alignment SPP MMU ASOM Recommendation Alignment Aligns with MMU 2017 Annual State of the Market Report recommendation. Aligns with MMU 2017 Annual State of the Market Report recommendation. Compliance value add Compliance value add 4
SIR074 INCENTIVIZING VER AND VIRTUAL PARTICIPATION IN DAY-AHEAD MARKET, MMU SPP Comments SPP is open to discussions around 1) incentivizing more VER participation in the day-ahead market, 2) incentivizing more virtual energy participation in the day-ahead market, and 3) allocation of measurable costs to causers, but SPP also recognizes that there are numerous views on the best design to accomplish these goals. Since no specific design is proposed, building consensus will require commitment and time from all stakeholders. SPP agrees that these are worthy goals that will drive market efficiency and welcomes input for the design direction. SPP believes this initiative can be combine with SIR 50 as they are aimed at the same goals. 5
