National Market for Instantaneous Reserves Design Features
The National Market for Instantaneous Reserves (NMIR) project is undergoing testing with potential design changes. Key design features include reserve sharing constraints, shared NFRs, and reserve sharing limits. Explore the detailed scenarios and constraints in the NMIR project for efficient energy management.
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National Market for Instantaneous Reserves Design and Scenarios Please note that the scenarios described in this presentation are based on the current solution design which is in the testing phase now and therefore subject to change. Phil Yao A brief description of the main design features for the NMIR project is on our website.
Topics Design Reserve Sharing Constraints Shared NFRs Reserve Sharing Limit and Procured Limit Losses/Effectiveness Factor Scenarios DCN/DCS FIR/SIR Scheduled Quantities Island Reserve Prices https://www.systemoperator.co.nz/sites/default/files/bulk-upload/documents/NMIR%20Design%20Features.pdf 2
Design 1 - ReserveSharing Constraints Pmin (for reserve sharing) 35MW HVDC Control Band 250MW Reserve Sharing Limit MR (FKC) 30MW HVDC Max Limit North 1200MW HVDC Max Limit South 850MW BP to MP transition 190MW Forward/Reverse Sharing Limit HVDC Control Band - MR RP Exit 52.5MW 220 Reverse Sharing Limit Energy Transfer - MR - Pmin SIR: 5mins cable discharge (BP to MP) Forward Sharing Limit HVDCmax - Energy Transfer - MR FIR: ~4s delay to initiate RP (at 35MW) and establish stable RP operation (at 0MW) HVDC Energy Transfer 22.5 190 3
Design 1 - ReserveSharing Constraints https://www.systemoperator.co.nz/sites/default/files/bulk-upload/documents/NMIR%20Design%20Features.pdf 4
Design 2 Shared NFRs 1. SharedNFR = 1% x non-risk island load (excluding inertia-less load) 2. SharedNFRs use some of the Sharing Limit (HVDC Control Band MR) DCN SI NI Forward Sharing limit NI Binding 6s AC Risk = (Total Forward Sharing Quantity)received + NI FIR Scheduled (Full or Part of SI FIR Scheduled + SISharedNFR)sent SI Binding 6s AC Risk = SI FIR Scheduled + (Total Reverse Sharing Quantity)received (Full or Part of NI FIR Scheduled + NISharedNFR)sent Reverse Sharing limit https://www.systemoperator.co.nz/sites/default/files/bulk-upload/documents/NMIR%20Design%20Features.pdf 5
Design 3 ReserveSharing Limit 1. Sharing Procured Limit = Sharing Limit SharedNFR 2. FIR: SharedNFR/Sharing Procured Limit 3. SIR: Procured Limit = Sharing Limit FIR Sharing Procured Limit HVDC Control Band = 250MW (sent) SIR Sharing Procured Limit SharedNFR MR=30 MR=30 6
FIR Sharing Procured Limit (DCN) Pmin (for reserve sharing) HVDC Control Band MR (FKC) HVDC Max Limit North HVDC Max Limit South 35 MW 250 MW 30 MW 1200 MW 850 MW 7
FIR Sharing Procured Limit (DCS) Pmin (for reserve sharing) HVDC Control Band MR (FKC) HVDC Max Limit North HVDC Max Limit South 35 MW 250 MW 30 MW 1200 MW 850 MW 8
Design 3 - Losses/Effectiveness Factor F-Received = Effectiveness Factor x (F-Sent Losses) R-Received = Effectiveness Factor x (R-Sent + Losses) Losses/Effectiveness Factor affect both Scheduled Reserve Quantity and Island Reserve Price https://www.systemoperator.co.nz/sites/default/files/bulk-upload/documents/NMIR%20Design%20Features.pdf 9
Summary of Design SharedNFRs use some of the Reserve Sharing Limit and only apply to FIR Reserve Sharing Procured Limit = HVDC Control Band MR SharedNFR and only apply to FIR Losses/Effectiveness Factor affect both Scheduled Reserve Quantity and Island Reserve Price 10
Scenario 1 - Island Based Medium DCN NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 130 90 0 0 225 445 NI Cleared MW 130 90 0 0 50 270 NI FIR Scheduled 270MW NI 6s ACCE Risk 270MW NI FIR Price NI $TR5 NI DCCE 6s 0MW NI DCECE 6s 155MW Medium DCN 530MW (Received) SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 0 60 10 45 30 145 SI Cleared MW 0 60 10 40 0 110 SI FIR Scheduled 110MW SI 6s ACCE Risk 110MW SI FIR Price SI $TR4 11
Island Based vs NMIR Scenarios NMIR Island Based NMIR Parameters S1 - Medium DCN (545MW) S2 - Medium DCN (545MW) S4 - No Reverse Sharing DCN (51MW) S7 - High DCS (543MW) S3 - Low DCN (121MW) S5 - RP DCN (11MW) S6 - High DCN (980MW) Constrained by HVDCmax - MR Forward Sharing FIR Procured Limit Unconstrained Unconstrained Unconstrained N/A Unconstrained Unconstrained Reverse Sharing FIR Procured Limit Constrained by Pmin + MR Unconstrained Unconstrained 0 N/A Unconstrained Unconstrained NI FIR Scheduled 270MW SI FIR Scheduled 110MW Forward Sharing Quantity (Received) DC is the binding risk in the receiving island (S6/S7) None HVDC North Transfer decreases (S2 Medium - S5 low) Reverse Sharing Quantity (Received) None NI FIR Price NI $TR5 SI FIR Price SI $TR4 12 12
Scenario 2 NMIR Medium DCN Sent MW Medium DCN 545MW SISharedNFR = 1%(SILD - inertialess load) Estimated Free Load Response from SI can be shared to cover NI AC type risks 12MW NISharedNFR = 1%(NILD - inertialess load) Estimated Free Load Response from NI can be shared to cover SI AC type risks 31MW when DCN is transferring between 451 and 700MW Loss Ratio 0.05676 Effectiveness Factor 0.8 208 189 13 545
Scenario 2 NMIR Medium DCN NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 130 90 0 0 225 445 NI Cleared MW 130 90 0 0 0 220 Cleared 155MW in NI due to non-zero DCECE risk Cleared all NI TR2 first due to losses and effectiveness (vs. SI) NI FIR Scheduled 220MW Enough to cover SI ACCE (reverse NI 6s ACCE Risk 270MW sharing) but need more to cover NI ACCE Need to receive 50MW (Risk270 - Scheduled220) from SI NI DCCE 6s 0MW NI $TRs = SI $TRs SI $TR2 adjusted by the losses and NI DCECE 6s 155MW NI FIR Price effectiveness factor Sent MW Medium DCN 545MW SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 0 60 10 45 30 145 SI Cleared MW 0 54 0 0 0 54 SI 6s ACCE Risk 110MW 50 = (SI Scheduled + SI SharedNFR) adjusted by SI FIR Scheduled 54MW losses and effectiveness SI FIR Price Marginal - SI @ $TR2 14
Summary of scenarios comparison Island Based NMIR NMIR Parameters S1 - Medium DCN (545MW) S4 - No Reverse Sharing DCN (51MW) S2 - Medium DCN (545MW) S3 - Low DCN (121MW) S5 - RP DCN (11MW) S6 - High DCN (980MW) S7 - High DCS (543MW) Constrained by HVDCmax - MR Forward Sharing FIR Procured Limit Unconstrained Unconstrained Unconstrained N/A Unconstrained 208MW Constrained by Pmin + MR Reverse Sharing FIR Procured Limit 0 Unconstrained Unconstrained N/A Unconstrained 189MW NI FIR Scheduled 270MW 220MW SI FIR Scheduled 110MW 54MW Forward Sharing Quantity (Received) None 50MW Reverse Sharing Quantity (Received) None 56MW SI $TR2 adjusted by the losses and effectiveness factor NI FIR Price NI $TR5 SI FIR Price SI $TR4 SI $TR2 15
S2 Medium DCN (> 1 Binding Risk) NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 0 90 0 0 225 315 NI Cleared MW 0 90 0 0 65 155 Cleared 155MW in NI due to non- zero DCECE risk NI FIR Scheduled 155MW NI 6s ACCE Risk 270MW NI FIR Price NI $TR5 Multiple Binding Risks NI DCECE 6s 155MW NMIR - Reserves are procured from the receiving island only for Sent MW Medium DCN 545MW DCCE/DCECE SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 130 60 10 45 30 275 SI Cleared MW 130 10 0 0 0 140 SI 6s ACCE Risk 110MW 115 = (SI Scheduled + SI SharedNFR) adjusted by losses and effectiveness SI Scheduled > SI ACCE SI FIR Scheduled 140MW SI FIR Price SI $TR2 16
S3 NMIR Low DCN Received MW 120MW FIR Sharing Procured Limit Low DCN Sent MW 121MW 220-SISharedNFR 208 220-NISharedNFR Reverse Sharing Procured Limit Energy Transfer - MR Pmin NISharedNFR 25 121 DCN 1170 22.5 17
S3 NMIR Low DCN NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 130 90 0 0 225 445 NI Cleared MW 130 79 0 0 0 209 Max Reverse Sharing = NI 6s ACCE Risk 270MW (NI SharedNFR + Reverse NI FIR Scheduled 209MW sharing procured Limit) adjusted by losses and effectiveness NI FIR Price NI $TR2 NI DCCE 6s 0MW NI DCECE 6s 0MW Sent MW Low DCN 121MW Reverse limit reduced means buy more in SI to cover SI ACCE Reverse Sharing FIR procured limit 25MW SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 0 60 10 45 30 145 SI Cleared MW 0 60 5 0 0 65 SI 6s ACCE Risk 110MW Required to procure in SI total = SI risk Max Reverse Sharing More scheduled in SI hence more can be shared to NI (less scheduled in NI) SI FIR Scheduled 65MW SI FIR Price SI $TR3 18
Summary of scenarios comparison Island Based NMIR NMIR Parameters S4 - No Reverse Sharing DCN (51MW) S1 - Medium DCN (545MW) S2 - Medium DCN (545MW) S7 - High DCS (543MW) S3 - Low DCN (121MW) S5 - RP DCN (11MW) S6 - High DCN (980MW) Forward Sharing FIR Procured Limit Constrained by HVDCmax - MR Unconstrained Unconstrained 208MW N/A 208MW Unconstrained Reverse Sharing FIR Procured Limit 0 Unconstrained Unconstrained 25 MW N/A 189MW Unconstrained NI FIR Scheduled 209MW ( ) 270MW 220MW SI FIR Scheduled 110MW 54MW 65MW ( ) Forward Sharing Quantity (Received) 61MW None 50MW Reverse Sharing Quantity (Received) 45MW None 56MW SI $TR2 adjusted by the losses and effectiveness factor NI FIR Price NI $TR2 NI $TR5 SI FIR Price SI $TR3 SI $TR4 SI $TR2 19
S4 NMIR No Reverse Sharing DCN FIR Sharing Procured Limit Received MW 50MW No Reverse Sharing DCN Sent MW 51MW 220-SISharedNFR 208 220-NISharedNFR 0 DCN 1170 1170-SISharedNFR 22.5 51 20
S4 NMIR No Reverse Sharing DCN NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 130 90 0 0 225 445 NI Cleared MW 130 43 0 0 0 173 (SI Scheduled + SI SharedNFR)sent can be shared to NI More scheduled in SI hence more can be shared to NI (less scheduled in NI) NI 6s ACCE Risk 270MW NI FIR Scheduled 173MW NI FIR Price NI $TR2 NI DCCE 6s 0MW NI DCECE 6s 0MW No Reverse Sharing DCN Sent MW 51MW Reverse limit is ZERO means buy all SI FIR in SI to cover SI ACCE Reverse Sharing FIR procured limit 0MW SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 0 60 10 45 30 145 SI Cleared MW 0 60 10 40 0 110 SI 6s ACCE Risk 110MW SI FIR Scheduled SI FIR scheduled = SI RISK 110MW SI FIR Price SI $TR4 21
Summary of scenarios comparison Island Based NMIR NMIR Parameters S1 - Medium DCN (545MW) S2 - Medium DCN (545MW) S3 - Low DCN (121MW) S7 - High DCS (543MW) S4 - No Reverse Sharing DCN (51MW) S5 - RP DCN (11MW) S6 - High DCN (980MW) Forward Sharing FIR Procured Limit Constrained by HVDCmax - MR 208MW Unconstrained 208MW N/A 208MW Unconstrained Reverse Sharing FIR Procured Limit 25 MW Unconstrained Unconstrained 0MW N/A 189MW Unconstrained NI FIR Scheduled 270MW 220MW 209MW ( ) 173MW ( ) SI FIR Scheduled 110MW 54MW 65MW ( ) 110MW ( ) Forward Sharing Quantity (Received) 61MW 97MW None 50MW Reverse Sharing Quantity (Received) 45MW 0MW None 56MW SI $TR2 adjusted by the losses and effectiveness factor NI $TR2 NI FIR Price NI $TR2 NI $TR5 SI $TR3 SI FIR Price SI $TR4 SI $TR4 SI $TR2 22
S5 NMIR RP DCN FIR Sharing Procured Limit Received MW 10MW RP DCN Sent MW 11MW 220-SISharedNFR 208 220-NISharedNFR 189 DCN 1170 22.511 23
S5 NMIR RP DCN NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 130 90 0 0 225 445 NI Cleared MW 130 90 0 0 0 220 NI FIR Scheduled 220MW SI $TR2 adjusted by the losses and effectiveness factor NI 6s ACCE Risk 270MW NI FIR Price NI DCCE 6s 0MW NI DCECE 6s 0MW Sent MW RP DCN 11MW SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 0 60 10 45 30 145 SI Cleared MW 0 51 0 0 0 51 SI 6s ACCE Risk 110MW SI FIR Scheduled The difference is caused by the different losses (vs. S2) 51MW SI FIR Price Marginal - SI @ $TR2 24
Summary of scenarios comparison Island Based NMIR NMIR Parameters S1 - Medium DCN (545MW) S2 - Medium DCN (545MW) S3 - Low DCN (121MW) S4 - No Reverse Sharing DCN (51MW) S7 - High DCS (543MW) S6 - High DCN (980MW) S5 - RP DCN (11MW) Forward Sharing FIR Procured Limit Constrained by HVDCmax - MR 208MW 208MW 208MW N/A 208MW Unconstrained Reverse Sharing FIR Procured Limit 25 MW 0MW Unconstrained 189MW N/A 189MW Unconstrained NI FIR Scheduled 220MW 270MW 220MW 209MW ( ) 173MW ( ) SI FIR Scheduled 110MW 54MW 65MW ( ) 110MW ( ) 51MW ( ) Forward Sharing Quantity (Received) 61MW 97MW 50MW None 50MW Reverse Sharing Quantity (Received) 45MW 0MW 59MW None 56MW SI $TR2 adjusted by the losses and effectiveness factor SI $TR2 adjusted by the losses and effectiveness factor NI $TR2 NI $TR2 NI FIR Price NI $TR5 SI $TR3 SI $TR4 SI FIR Price SI $TR4 SI $TR2 SI $TR2 25
S6 NMIR High DCN Received MW 925MW FIR Sharing Procured Limit High DCN Sent MW 980MW 220-SISharedNFR 220-NISharedNFR 189 Forward Sharing Procured Limit HVDCmax - Energy Transfer MR - SISharedNFR 178 980 DCN 1170 22.5 26
S6 NMIR High DCN NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 130 90 0 0 225 445 NI Cleared MW 130 90 0 0 220 440 NI 6s ACCE Risk 270MW NI FIR Scheduled 440MW Cleared 440MW in NI due to DCECE risk NI FIR Price NI $TR5 NI DCCE 6s 342MW NI DCECE 6s 440MW Sent MW High DCN 980MW SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 0 60 10 45 30 145 SI Cleared MW 0 0 0 0 0 0 SI 6s ACCE Risk 110MW SI FIR Scheduled No FIR required in SI as covered by Reverse sharing 0MW SI FIR Price 0 27
Summary of scenarios comparison Island Based NMIR NMIR Parameters S1 - Medium DCN (545MW) S2 - Medium DCN (545MW) S4 - No Reverse Sharing DCN (51MW) S7 - High DCS (543MW) S3 - Low DCN (121MW) S5 - RP DCN (11MW) S6 - High DCN (980MW) Forward Sharing FIR Procured Limit 208MW 208MW 208MW 178MW N/A 208MW Unconstrained Reverse Sharing FIR Procured Limit 25MW 0MW 189MW 189MW N/A 189MW Unconstrained 220MW 440MW NI FIR Scheduled 270MW 220MW 209MW ( ) 173MW ( ) 0MW SI FIR Scheduled 110MW 54MW 65MW ( ) 110MW ( ) 51MW ( ) Forward Sharing Quantity (Received) 61MW 97MW 50MW 0MW None 50MW Reverse Sharing Quantity (Received) 45MW 0MW 59MW 110MW None 56MW SI $TR2 adjusted by the losses and effectiveness factor SI $TR2 adjusted by the losses and effectiveness factor NI $TR2 NI $TR2 NI FIR Price NI $TR5 NI $TR5 SI $TR3 SI $TR4 SI FIR Price SI $TR4 SI $TR2 SI $TR2 0 28
Scenario 7 High DCS Received MW 520MW High DCS Sent MW 534MW FIR Sharing Procured Limit 220-SISharedNFR 208 193 220-NISharedNFR 65+SISharedNFR 820 820-NISharedNFR 534 22.5 DCS 29
Scenario 7 High DCS NI Price $ TR1 TR2 TR3 TR4 TR5 Total NI Offered MW 130 90 0 0 225 445 NI Cleared MW 130 17 0 0 0 147 NI 6s ACCE Risk 265MW NI FIR scheduled NI scheduled = NI Risk Reverse Shared 147MW NI FIR Price NI $TR2 Sent MW High DCS 534MW SI DCCE 6s 24MW SI DCECE 6s 140MW SI Price $ TR1 TR2 TR3 TR4 TR5 Total SI Offered MW 0 60 10 45 30 145 SI Cleared MW 0 60 10 45 25 140 SI 6s ACCE Risk 110MW SI FIR scheduled 140MW Cleared 140MW in SI due to DCECE risk SI FIR Price SI $TR5 30
Summary of scenarios comparison Island Based NMIR NMIR Parameters S1 - Medium DCN (545MW) S4 - No Reverse Sharing DCN (51MW) S6 - High DCN (980MW) S7 - High DCS (543MW) S2 - Medium DCN (545MW) S3 - Low DCN (121MW) S5 - RP DCN (11MW) Forward Sharing FIR Procured Limit 208MW 208MW 208MW 178MW N/A 208MW 208MW Reverse Sharing FIR Procured Limit 25MW 0MW 189MW 189MW N/A 189MW 189MW 173MW ( ) 220MW 440MW 147MW 270MW 220MW NI FIR Scheduled 209MW ( ) 110MW ( ) 0MW 140MW 110MW 54MW SI FIR Scheduled 65MW ( ) 51MW ( ) Forward Sharing Quantity (Received) 61MW 97MW 50MW 0MW 0MW None 50MW Reverse Sharing Quantity (Received) 45MW 0MW 59MW 110MW 118MW None 56MW SI $TR2 adjusted by the losses and effectiveness factor SI $TR2 adjusted by the losses and effectiveness factor NI $TR2 NI $TR2 NI $TR2 NI $TR5 NI $TR5 NI FIR Price SI $TR3 SI $TR4 SI $TR5 SI $TR4 SI $TR2 SI $TR2 0 SI FIR Price 31
Scenario 6 High DCS (SIR) SIR Sharing Procured Limit 220 125 Forward/Reverse Sharing SIR Procured Limit = 220 MR=30 534 190 DCS 820 65 32
Scenario 7 High DCS (SIR) NI Price $ TR1 TR2 TR3 TR4 Total NI Offered MW 145 145 0 155 445 NI Cleared MW 145 40 0 0 185 NI 60s ACCE Risk 360MW NI FIR Scheduled NI scheduled = NI Risk Reverse Shared 185MW NI FIR Price NI $TR2 Sent MW High DCS 534MW SI DCCE 60s 35MW SI DCECE 60s 165MW SI Price $ TR1 TR2 TR3 TR4 Total SI Offered MW 0 80 50 45 175 SI Cleared MW 0 80 50 35 165 SI 60s ACCE Risk 125MW SI FIR Scheduled 165MW Cleared 165MW in SI due to DCECE risk SI FIR Price SI $TR4 33
The key points 1. Reserves are procured from the receiving island only for DCCE/DCECE 2. Multiple Binding Risks scenario is more likely to happen under national IR market than current 3. Sharing Constraints FIR Sharing Procured Limit = HVDC Control Band MR SharedNFR SIR Sharing Procured Limit = HVDC Control Band MR Forward Sharing is also constrained by HVDCmax MR Reverse Sharing is also constrained by Pmin + MR Forward Sharing 60 when the Pole with lower rating is in Reduced Voltage No sharing at low DC transfer when RP Off 4. Losses/Effectiveness Factor affect both Scheduled Reserve Quantity and Island Reserve Price 34