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SCED Power Balance Penalty Curve

SCED Power Balance Penalty Curve. Resmi Surendran. Objective. Explain the Power Balance Penalty Curve Discuss the values for the Power Balance Penalty Curve MW break points Penalty for violation up to the MW break point Not to discuss the optimal mechanism for setting scarcity pricing.

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SCED Power Balance Penalty Curve

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  1. SCED Power Balance Penalty Curve Resmi Surendran

  2. Objective • Explain the Power Balance Penalty Curve • Discuss the values for the Power Balance Penalty Curve • MW break points • Penalty for violation up to the MW break point • Not to discuss the optimal mechanism for setting scarcity pricing.

  3. Power Balance Penalty • System Lambda is the change in the objective value obtained by relaxing the Power Balance constraint by 1MW • Power Balance Penalty is the maximum cost paid for one addition/less MW of generation to meet the Power Balance constraint.

  4. SCED Constraints • Power Balance Constraint sum (Base Point) + under gen slack – over gen slack = Generation to be dispatched • Transmission constraint sum( Shift Factor * Base Point) – violation slack ≤ limit • Ramp Limit constraint LDL ≤ Base Point ≤ HDL

  5. SCED Objective • Minimize + Cost of dispatching generation integral (offer cost * MW dispatched) + Penalty for violating Power Balance constraint sum (Penalty cost * violation amount) + Penalty for violating transmission constraint sum (Penalty cost * violation amount)

  6. PB Violation with no Transmission Constraints • Only constraints active will be System demand & ramp • Given enough SURAMP, PB will not be violated as long as the aggregated offer curve required to meet demand is less than PB penalty • If PB Penalty is lower than SWCAP then PB will be violated in SCED1 before dispatching Resources on Output Schedule

  7. PB Violation with Transmission Constraints • Gen with +ive SF • SF * TC_Penalty + Offer cost • PB_penatly • If (a) > (b) - moved down for resolving constraints • If (a) < (b) - moved up for meeting Power Balance • Example • Violated TC penalty $3500; 0.2 SF; $100 0ffer cost ; $500 PB penalty • 1 MW reduction in generation will • reduce TC violation by 0.2 MW • will reduce objective by 0.2 * 3500 due to reduction in TC violation and $100 by not providing 1MW energy • violate PB by 1 MW • Will increase objective by 1* $500

  8. Power Balance Penalty Curve - Implementation • 10 segment step curve • MW break points • Sets amount violated for a given price • Penalty for violation up to the MW break point • Sets system lambda for a given amount of violation

  9. Factors affecting Power Balance Violation • Ramp limited scenarios • Operational Philosophies • Extend of ramp being reserved for regulation • Amount of capacity on Output Schedule • Telemetry errors • Capacity Scarcity • Operational Philosophies

  10. Current Power Balance Penalty Curve Values • equivalent to having extra capacity for meeting power balance violation at • (+/-) 3001 $/MWh for violated MW from 0MW to 9999.999MW, and • (+/-) 5000$/MWh for violated MW from 10000MW to 99999.999MW

  11. Proposed Power Balance Penalty Curve

  12. Factors Considered • Extend of regulation that can be sacrificed • Operational philosophies • System Wide Offer Cap - $3000 • Interaction with transmission constraints • Interaction with proxy offer curves • Market Trials and close loop test results

  13. Future Areas of Improvement for Better Scarcity Pricing • Prices not reflective of scarcity during UFR Load Resource deployment • Reduction in prices due to Output Schedule adjustments during Non-Spin deployment from Resources on Output Schedule • Dependence on MP submitted EOC to set scarcity pricing during Non-Spin and RRS deployment

  14. Appendix

  15. SCED Objective Min { Cost of generation dispatch + Sum ( Max Shadow Price * Slack variable)} Generation dispatch cost + Power Balance Penalty Curve value Slack Variable Slack Variable + Slack Variable Max Shadow Price

  16. SCED constraints Power Balance Constraints: Transmission Network Constraints: Resource Constraints: Ramp Rate Constraints (HDL, LDL):

  17. Offer Mitigation for SCED2 (1)Cap the Energy Offer Curves at the greater of the Reference LMP at the Resource Node or the Mitigated Offer Cap curve (2) Bound it at the lesser of the Reference LMP at the Resource Node or the Mitigated Offer Floor.

  18. Proxy Offer Curve for Output Schedule

  19. LMP during Congestion Resource moved down for congestion

  20. LMP during Congestion Resource moved up for congestion

  21. Transmission Constraints Penalty Current Values • Maximum Shadow Price for Transmission Constraints • Base Case:  $5,000/MW • Generic constraints :  $5,000/MW • Post Contingency • 345 kV:  $4,500/MW • 138 kV:  $3,500/MW • 69 kV:  $2,800/MW

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