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presented to Inadvertent Interchange Payback Taskforce North American Energy Standards Board PowerPoint Presentation
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presented to Inadvertent Interchange Payback Taskforce North American Energy Standards Board

presented to Inadvertent Interchange Payback Taskforce North American Energy Standards Board

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presented to Inadvertent Interchange Payback Taskforce North American Energy Standards Board

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  1. A CPS1-driven market for Clearing/Settling Inadvertent InterchangeSimulation from an 11-Day period of 17-control-area Western-Interconnection Jan/’02 hourly data presented to Inadvertent Interchange Payback Taskforce North American Energy Standards Board by Robert Blohm Houston December 10, 2003 Slide #

  2. 1 Inadvertent Interchange is more than just energy at the price of scheduled energy. It’s also unscheduled contribution or correction to frequency error.

  3. Inadvertent is a vector in a state space 2 transmission loading component energy frequency control contribution

  4. 3 b > 0 > U 0 + 10 b - 10b p U p p U p b b e e - + 10 b - - 10 b p U p p U p b b e e Dual pricing of unscheduled energy Ambiguity along the diagonal. Diagonal occurs only when frequency is high. Off-diagonals occur only when frequency is low. Revenue/Expense Unscheduled receive good bad part energy part sold pay bought

  5. 4 Four possible combinations of Priced Energy Component and Priced Frequency Control Contribution of Inadvertent Interchange

  6. 5 Case 1: Frequency High and Control Area A “Leaning” on Rest of Interconnection for 200 MWh 1. Energy Component: A pays the Interconnection $10/MWh energy price for 200 MWh = -$ 2000 2. Frequency Control Contribution: A receives from the Interconnection $15* of FCCp per MWh of Inadvertent = +$ 3000 for 200 MWh of Inadvertent Interchange that is opposite to the frequency error. *FCCp per MWh would be less than $15 if the average frequency error were smaller. 3. Net Result: A receives from the Interconnection a net total of $ 1000*. *The net result could be a payment if the average frequency error is small enough.

  7. 6 Case 2: Frequency High and Rest of Interconnection “Leaning” on Control Area A for 200 MWh 1. Energy Component: A receives from the Interconnection $10/MWh energy price for 200 MWh = +$ 2000 2. Frequency Control Contribution: A pays the Interconnection $15* of FCCp per MWh of Inadvertent = -$ 3000 for 200 MWh of Inadvertent Interchange that is contributing to the frequency error. *FCCp per MWh would be less than $15 if the average frequency error were smaller. 3. Net Result: A pays the Interconnection a net total of $ 1000*. *The net result could be a receipt if the average frequency error is small enough.

  8. 7 Case 3: Frequency Low and Control Area A “Leaning” on Rest of Interconnection for 200 MWh 1. Energy Component: A pays the Interconnection $20/MWh energy price for 200 MWh = -$ 4000 2. Frequency Control Contribution: A pays the Interconnection $15 of FCCp per MWh of Inadvertent = -$ 3000 for 200 MWh of Inadvertent Interchange that is contributing to the frequency error. 3. Net Result: A pays the Interconnection a combined total of -$ 7000.

  9. 8 Case 4: Frequency Low and Rest of Interconnection “Leaning” on Control Area A for 200 MWh 1. Energy Component: A receives from the Interconnection $20/MWh energy price for 200 MWh = +$ 4000 2. Frequency Control Contribution: A receives from the Interconnection $15 of FCCp per MWh of Inadvertent = +$ 3000 for 200 MWh of Inadvertent Interchange that is opposite to the frequency error. 3. Net Result: A receives from the Interconnection a combined total of +$ 7000.

  10. 9 Summary of the 4 cases Frequency: High Low “Leaning” by: Case 3 A pays $7000 Case 1 A receives $1000 Control Area A Rest of Interconnection Case 2 A pays $1000 Case 4 A receives $7000

  11. 10 Animation of the Clearing/Settlement of Frequency Control Contribution based on data of an 11-day period in January 2002 on 17 control-area Western Interconnection:

  12. 11

  13. 12 A Balancing Authority i's Frequency Control Contribution is a "2-dimensional average" of Inadvertent and Frequency-error each weighted by Frequency error. A "2-dimensional average" is the slope of a line from the origin through the intersection of the lines intercepting the two averages. I 4-period scatter of Balancing Authority i's i <Frequency-error, Inadvertent> 8 points I 9 < D > F , I i = = t i , t D denoted by the 4 red dots F 2 Slope is "2-dimensional average" of Inadvertent & Frequency-error Drawing prepared by Robert Blohm 4 July 5, 2003 i's Average Inadvertent 4 1 9 = = = å I I I i i , t i , t 4 4 = t 1 D I F Period t D i , t - F t 4 1 4 1 4 -2 2 1 -1 3 -4 4 Average Frequency-error 4 1 8 4 1 1 Sum = 2 9 D D = D = = å F F F t t 4 2 = t 1

  14. 13 2 D I D I D F F F Period t , t i i , t t t t 1 4 -2 -8 16 2 1 -1 -1 1 3 -4 4 -16 16 1 4 1 8 8 Sum = 2 9 -17 32 Slope is "2-dimensional average" of Inadvertent & Frequency-error weighted by Frequency-error i's Average Inadvertent weighted by Frequency-error 4 1 -17 ( ´ ) = -4¼ = = = å I I D F I D F i i , t t , t i t 4 4 = t 1 A Balancing Authority i's Frequency Control Contribution is a "2-dimensional average" of Inadvertent and Frequency-error each weighted by Frequency error. A "2-dimensional average" is the slope of a line from the origin through the intersection of the lines intercepting the two averages. 4-period scatter of Balancing Authority i's <Frequency-error, Inadvertent> points < D > F , I t i , t denoted by the 4 red dots Average Frequency-error weighted by Frequency-error I i 4 1 ( ´ ) 2 D D = D = = D 8 å F F F F 8 t t t 4 = t 1 DF -4¼ I t i,t = = 8 2 D F t D - F 8 2 8

  15. 14 Good quadrant: Inadvertent and frequency error in opposite directions. Bad quadrant: Inadvertent and frequency error in the same direction. Bad quadrant: Inadvertent and frequency error in the same direction. Bad quadrant: Inadvertent and frequency error in the same direction. Bad quadrant: Inadvertent and frequency error in the same direction. Good quadrant: Inadvertent and frequency error in opposite directions. Megawatt-Hours of Inadvertent Frequency error in Hertz -.03 -.02 -.01 +.01 +.02 +.03

  16. 15 Slope of line is red control area’s Frequency Control Contribution. It is the two-dimensional average of red control area’s frequency-error-weighted Inadvertent and frequency-error-weighted frequency error. Red control area’s 264 hourly-average Inadvertent and frequency error Line is in the good quadrants: so red control area gets paid for his Frequency Control Contribution for helping frequency. Control Area 1 (CA 1)

  17. 16 CA 2

  18. 17 Slope of the black line is two-dimensional average of the combined control areas’ frequency-error-weighted Inadvertent and frequency-error-weighted frequency error.

  19. 18 CA 3

  20. 19

  21. 20 CA 4

  22. 21

  23. 22 CA 5

  24. 23

  25. 24 CA 6

  26. 25

  27. 26 CA 7

  28. 27

  29. 28 CA 8

  30. 29

  31. 30 CA 9

  32. 31

  33. 32 CA 10

  34. 33

  35. 34 CA 11

  36. 35

  37. 36 CA 12

  38. 37

  39. 38 CA 13

  40. 39

  41. 40 CA 14

  42. 41

  43. 42 CA 15

  44. 43

  45. 44 CA 16

  46. 45

  47. 46 CA 17

  48. 47

  49. 48

  50. 49 Lines’ slopes add up to zero slope of horizontal line.