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Title: Analysis of Benefits of an Energy Imbalance Market in the NWPP

Abstract

The Northwest Power Pool (NWPP) Market Assessment Committee (MC) Initiative, which was officially launched on March 19, 2012, set out to explore a range of alternatives that could help the Balancing Authorities and scheduling utilities in the NWPP area address growing operational and commercial challenges affecting the regional power system. The MC formed an Analytical Team with technical representatives from each of the member Balancing Areas in the NWPP and with staff of Pacific Northwest National Laboratory (PNNL). This Analytical Team was instructed to conduct extensive studies of intra-hour operation of the NWPP system in the year 2020 and of the NWPP region with 14,671 MW of wind penetration. The effort utilized a sub-hourly production cost model (the PLEXOS® computer model) that inputs data from the Western Electricity Coordinating Council (WECC)-wide Production Cost Model (PCM) to evaluate potential production cost savings. The Analytical Team was given two general options to evaluate: •Energy Imbalance Market (EIM): establishment of an automated, organized NWPP area market for economically supplying energy imbalance within the hour. •Enhanced Market-Operational Tools (EMT) that might augment or replace an EIM. The Analytical The Analytical Team built on the WECC-wide PCM data from prior work done in the WECCmore » and carried forward the evolution of the original WECC Transmission Expansion Planning Policy Committee (TEPPC) 2020 PC0 data base. A large number of modifications and improvements were made to this case and the data were subjected to extensive review by the team members to improve the model representation of the Northwest (NW). MC meetings that were open to the public were held for interested parties to review and provide input to the study. Results for the test, base, and sensitivity case studies performed by the MC Initiative Analytical Team indicate that there are a wide range of benefits that could be obtained from the operation of an EIM in the NWPP depending on what assumptions are made. The instructions from the MC were to determine a "minimum high confidence" range of potential benefits. The results for the Base Case indicate that the EIM benefits ranged from approximately $40 million to $70 million in annual savings from the operation of an EIM in the NWPP footprint. A number of additional relevant sensitivity cases were performed, including low and high water conditions, low and high natural gas prices, and various flex reserve requirements, resource operations, and amounts of resource capability held back during the preschedule period. Along with the results for the Base Case, the results for these studies yielded EIM benefits that clustered within the range of $70 to $80 million dollars per year with potential benefits ranging from approximately $125 million to as little as $17 million per year. Because the design and operation of an EIM could enable participating Balancing Authorities (BAs) to collectively lower the quantity of resources they must carry to meet within-hour balancing needs, a sensitivity case was also performed to analyze the impact that such reductions might have on the benefits from an EIM. The results for this sensitivity case indicate that such reductions could increase the benefits from the operation of an EIM in the NWPP into the range of approximately $130 million to $160 million per year. Also, a sensitivity case for a WECC-wide EIM was performed with the results indicating that the potential benefits to the NWPP could increase into the range of $197 million to $233 million per year. While there may be potential reliability benefits from the coordinated dispatch process underlying the operation of an EIM, reliability benefits from an EIM were out of the scope of this study. The EIM benefit analyses that were performed by the Analytical Team are provided in this report.« less

Authors:
; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; more »; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; « less
Publication Date:
Research Org.:
Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Sponsoring Org.:
USDOE
OSTI Identifier:
1097941
Report Number(s):
PNNL-22877
600306000
DOE Contract Number:  
AC05-76RL01830
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
Power markets, NWPP, Energy Imbalance, EIM, Renewables integration

Citation Formats

Samaan, Nader A., Bayless, Rich, Symonds, Mark, Nguyen, Tony B., Jin, Chunlian, Wu, Di, Diao, Ruisheng, Makarov, Yuri V., Kannberg, Landis D., Guo, Tao, Dennison-Leonard, Sarah, Goodenough, Mike, Schellberg, Ron, Conger, Sid, Harris, Kevin, Rarity, Matt, Wallace, Steven, Austin, Jamie, Noteboom, Rod, Van Blaricom, Tim, McRunnel, Kim, Apperson, John, Empey, Marshall, Etingov, Pavel V., Warady, Debra, Brush, Ray, Newkirk, Joshua, Williams, Peter, Landauer, Marv, Owen, Hugh, Morter, Wayne, Haraguchi, Keli, Portouw, Jim, Downey, kathryn, Sorey, Steve, Williams, Stan, Gossa, Teyent, Kalich, Clint, Damiano, Patrick, Macarthur, Clay, Martin, Tom, Hoerner, Joe, Knudsen, Steve, Johnson, Anders, Link, Rick, and Holcomb, Dennis. Analysis of Benefits of an Energy Imbalance Market in the NWPP. United States: N. p., 2013. Web. doi:10.2172/1097941.
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Samaan, Nader A., Bayless, Rich, Symonds, Mark, Nguyen, Tony B., Jin, Chunlian, Wu, Di, Diao, Ruisheng, Makarov, Yuri V., Kannberg, Landis D., Guo, Tao, Dennison-Leonard, Sarah, Goodenough, Mike, Schellberg, Ron, Conger, Sid, Harris, Kevin, Rarity, Matt, Wallace, Steven, Austin, Jamie, Noteboom, Rod, Van Blaricom, Tim, McRunnel, Kim, Apperson, John, Empey, Marshall, Etingov, Pavel V., Warady, Debra, Brush, Ray, Newkirk, Joshua, Williams, Peter, Landauer, Marv, Owen, Hugh, Morter, Wayne, Haraguchi, Keli, Portouw, Jim, Downey, kathryn, Sorey, Steve, Williams, Stan, Gossa, Teyent, Kalich, Clint, Damiano, Patrick, Macarthur, Clay, Martin, Tom, Hoerner, Joe, Knudsen, Steve, Johnson, Anders, Link, Rick, & Holcomb, Dennis. Analysis of Benefits of an Energy Imbalance Market in the NWPP. United States. https://doi.org/10.2172/1097941
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Samaan, Nader A., Bayless, Rich, Symonds, Mark, Nguyen, Tony B., Jin, Chunlian, Wu, Di, Diao, Ruisheng, Makarov, Yuri V., Kannberg, Landis D., Guo, Tao, Dennison-Leonard, Sarah, Goodenough, Mike, Schellberg, Ron, Conger, Sid, Harris, Kevin, Rarity, Matt, Wallace, Steven, Austin, Jamie, Noteboom, Rod, Van Blaricom, Tim, McRunnel, Kim, Apperson, John, Empey, Marshall, Etingov, Pavel V., Warady, Debra, Brush, Ray, Newkirk, Joshua, Williams, Peter, Landauer, Marv, Owen, Hugh, Morter, Wayne, Haraguchi, Keli, Portouw, Jim, Downey, kathryn, Sorey, Steve, Williams, Stan, Gossa, Teyent, Kalich, Clint, Damiano, Patrick, Macarthur, Clay, Martin, Tom, Hoerner, Joe, Knudsen, Steve, Johnson, Anders, Link, Rick, and Holcomb, Dennis. 2013. "Analysis of Benefits of an Energy Imbalance Market in the NWPP". United States. https://doi.org/10.2172/1097941. https://www.osti.gov/servlets/purl/1097941.
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@article{osti_1097941,
title = {Analysis of Benefits of an Energy Imbalance Market in the NWPP},
author = {Samaan, Nader A. and Bayless, Rich and Symonds, Mark and Nguyen, Tony B. and Jin, Chunlian and Wu, Di and Diao, Ruisheng and Makarov, Yuri V. and Kannberg, Landis D. and Guo, Tao and Dennison-Leonard, Sarah and Goodenough, Mike and Schellberg, Ron and Conger, Sid and Harris, Kevin and Rarity, Matt and Wallace, Steven and Austin, Jamie and Noteboom, Rod and Van Blaricom, Tim and McRunnel, Kim and Apperson, John and Empey, Marshall and Etingov, Pavel V. and Warady, Debra and Brush, Ray and Newkirk, Joshua and Williams, Peter and Landauer, Marv and Owen, Hugh and Morter, Wayne and Haraguchi, Keli and Portouw, Jim and Downey, kathryn and Sorey, Steve and Williams, Stan and Gossa, Teyent and Kalich, Clint and Damiano, Patrick and Macarthur, Clay and Martin, Tom and Hoerner, Joe and Knudsen, Steve and Johnson, Anders and Link, Rick and Holcomb, Dennis},
abstractNote = {The Northwest Power Pool (NWPP) Market Assessment Committee (MC) Initiative, which was officially launched on March 19, 2012, set out to explore a range of alternatives that could help the Balancing Authorities and scheduling utilities in the NWPP area address growing operational and commercial challenges affecting the regional power system. The MC formed an Analytical Team with technical representatives from each of the member Balancing Areas in the NWPP and with staff of Pacific Northwest National Laboratory (PNNL). This Analytical Team was instructed to conduct extensive studies of intra-hour operation of the NWPP system in the year 2020 and of the NWPP region with 14,671 MW of wind penetration. The effort utilized a sub-hourly production cost model (the PLEXOS® computer model) that inputs data from the Western Electricity Coordinating Council (WECC)-wide Production Cost Model (PCM) to evaluate potential production cost savings. The Analytical Team was given two general options to evaluate: •Energy Imbalance Market (EIM): establishment of an automated, organized NWPP area market for economically supplying energy imbalance within the hour. •Enhanced Market-Operational Tools (EMT) that might augment or replace an EIM. The Analytical The Analytical Team built on the WECC-wide PCM data from prior work done in the WECC and carried forward the evolution of the original WECC Transmission Expansion Planning Policy Committee (TEPPC) 2020 PC0 data base. A large number of modifications and improvements were made to this case and the data were subjected to extensive review by the team members to improve the model representation of the Northwest (NW). MC meetings that were open to the public were held for interested parties to review and provide input to the study. Results for the test, base, and sensitivity case studies performed by the MC Initiative Analytical Team indicate that there are a wide range of benefits that could be obtained from the operation of an EIM in the NWPP depending on what assumptions are made. The instructions from the MC were to determine a "minimum high confidence" range of potential benefits. The results for the Base Case indicate that the EIM benefits ranged from approximately $40 million to $70 million in annual savings from the operation of an EIM in the NWPP footprint. A number of additional relevant sensitivity cases were performed, including low and high water conditions, low and high natural gas prices, and various flex reserve requirements, resource operations, and amounts of resource capability held back during the preschedule period. Along with the results for the Base Case, the results for these studies yielded EIM benefits that clustered within the range of $70 to $80 million dollars per year with potential benefits ranging from approximately $125 million to as little as $17 million per year. Because the design and operation of an EIM could enable participating Balancing Authorities (BAs) to collectively lower the quantity of resources they must carry to meet within-hour balancing needs, a sensitivity case was also performed to analyze the impact that such reductions might have on the benefits from an EIM. The results for this sensitivity case indicate that such reductions could increase the benefits from the operation of an EIM in the NWPP into the range of approximately $130 million to $160 million per year. Also, a sensitivity case for a WECC-wide EIM was performed with the results indicating that the potential benefits to the NWPP could increase into the range of $197 million to $233 million per year. While there may be potential reliability benefits from the coordinated dispatch process underlying the operation of an EIM, reliability benefits from an EIM were out of the scope of this study. The EIM benefit analyses that were performed by the Analytical Team are provided in this report.},
doi = {10.2172/1097941},
url = {https://www.osti.gov/biblio/1097941}, journal = {},
number = ,
volume = ,
place = {United States},
year = {Fri Oct 18 00:00:00 EDT 2013},
month = {Fri Oct 18 00:00:00 EDT 2013}
}
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https://doi.org/10.2172/1097941
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