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© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Supply‐side Pi lot Introduction
July 2016
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TMOutline
1. Design
2. Products
3. Requirements
4. Settlements
© 2013-2015 Olivine, Inc. All copyright and trademark rights reserved.
TMCAISO Markets In a Nutshell
• Four Basic Products– Energy – By Interval to Balance Supply and Demand– Non Spinning Reserves – Off‐line, 10‐Minute for Grid Contingencies
– Spinning Reserves – Immediately Dispatchable for Grid Contingencies
– Regulation – Instantaneous Supply and Demand• Two Basic Market Timeframes
– Day Ahead Market (DAM)• 24 Separate Hourly Solutions• 100% of AS Requirements Procured Based on Forecast
– Real‐time Market (RTM)• 15‐Minute Capacity and Unit Commitment• 5‐Minute Energy
CAISO Markets
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Supply‐side Pilot (SSP) Design Features
SSP is a demand response pilot integrated with CAISO wholesale markets:• Participants:
– Nominate capacity into Pilot– Bid day‐ahead energy (DA) – C&I: Optionally bid into real‐time energy (RT) & ancillary services (A/S) markets
– respond to market awards by reducing load
• Performance calculated by “10‐in‐10” baseline
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Supply‐side Pilot (SSP) Design Features
• Participants earn capacity + wholesale settlement payments
• $10/kW‐month capacity payment from meeting ongoing pilot requirements
• Wholesale market settlements passed along directly to participants
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Roles
Customer/ Aggregator
‐Customer recruitment‐Schedule notification and which customers will perform each hour
OlivineInterface between
Participant and market (s)
‐Enrollment, Registration‐Nominations and Bidding‐Award and Dispatch Notification‐Settlements and Payments
PG&EPilot Sponsor
CAISO Markets
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Eligibility Criteria
• One PDR per participant• Locations cannot be speculative
• All locations in a PDR must be:– Served by the same LSE– Located in the same Sub‐LAP
• Each PDR must be able to provide four (4) consecutive hours of 100 kW minimum load shed
PDR
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Eligibility Criteria
• Underlying customers may not be on any other DR program for their duration on the SSP, (including SmartRate, PDP)– Must first de‐enroll
• 30 kW “Out of Market” Option (Residential Only)– Approved resources from 30‐100 kW may participate in the SSP without CAISO registration
– Dispatches will occur according to CAISO price signals. – Participation can transition to CAISO once 100 kW achieved.
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Pilot limitations
• Total capacity award may be limited• All underlying customers must be interval metered– Limits on number of locations– Limits on registration changes
• SSP may pursue statistical sampling for larger aggregations
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Timelines (Residential Only)
• SSP Participation (August 2015)*• May 1st: Declarations of Interest Due• June 15th: Enrollment Packages Due• June‐July: Enrollment process• August 1st: market operational start• August 1st, 2016: operational end
*Dates are provisional at this time
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
Enrollment Process Responsible Deadline(in Calendar time before the
first trade date, T)
Declaration of Interest Form Participant
Enrollment Workbook, CISR Form, Customer Acknowledgement Forms (Aggregators only), Pilot Contact Form
Participant T – 8 weeks
PG&E Eligibility Check PG&E T – 6 weeksParticipation Agreement Executed Participant T – 5 weeks
PDR registration at ISO Olivine, ISO T – 4 weeks
Pilot Training Participant, Olivine T – 3 weeks
Qualified Capacity Test Participant, Olivine T – 2 weeks
Hands‐on Training Participant, Olivine T – 1 week
>>>Begin Market Operations T
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
SSP Participation
• Bids have both a price and quantity– Price Floor = Net Benefits Test Value – Price Ceiling = $150/MWH
• Bids & awards are hourly• Timelines:
– Bids: 8:30am the day before– Awards: by 2pm the day before (if available)
• OpenADR optional
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Pilot Requirements (Overview)
Qualified Capacity Nomination Bid
Schedule & Complete QC Test
Enter monthly nomination in Olivine DR
Make appropriate number of block
bids
Once(unless requesting
a change)
Monthly Ongoing
Participants maintain eligibility in all areas to receive capacity payment
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Qualified Capacity (QC)
• QC = Max quantity biddable into the market• Test of avg. energy delivered over the period
400
500
600
500
0
250
500
750
3:00 PM 4:00 PM 5:00 PM 6:00 PMDelivered kW
(400 + 500 + 600 + 500) / 4 = 500 kW Qualified Capacity
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Nomination
• A monthly capacity commitment to deliver load shed for the pilot
• Forms the basis of the monthly capacity payment
• Nominations cannot exceed qualified capacity value (QC)
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Bidding Requirements
• 4‐hour blocks x 18 unique days = 72 bid hours ($10/kW‐month)
• May enter bids for any hours (24 x 7)• Dispatchable for at least 24 awards per month
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Bidding Requirements (Summary)
Bid Blocks Total Bid Hours
Unique Days
Dispatchable at least
Capacity Payment
4‐hour contiguous bid blocks
72 18 24 hours per month
$10 kW‐month
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Bidding Requirements (Day‐ahead)
Price($)
Quantity(kWh)
Nomination Qualified Capacity
Price Ceiling
Net Benefits Test Value(NBT)
“Qualified” Bids made in this range
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Settlement
Two sources of revenue for SSP: 1. Capacity Payments: Dependent on fulfillment of pilot requirements above
2. Wholesale Energy Payments: All payments & charges from wholesale market are passed along directly to participants
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
How is performance measured?
• “10‐in‐10” Baseline calculates an average of the whole premises (i.e., no sub‐metering) meter data – Based on 10 previous similar days – Day‐of adjustment capped at ± 20%– 45‐day look‐back period– Determines load reduction or “pseudo‐generation”
• Applies to capacity and energy settlements
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Baseline Step #1
• Identify 10 similar, non‐event days
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
6/10/2013 6/11/2013 6/12/2013 6/13/2013 6/14/2013
6/17/2013 6/18/2013 6/19/2013 6/20/2013 6/21/2013
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
6/10/2013 6/11/2013 6/12/2013 6/13/2013
6/14/2013 6/17/2013 6/18/2013 6/19/2013
6/20/2013 6/21/2013 Average Profile
Baseline Step #2
• Calculate Average Profile
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Baseline Step #3
• Determine day‐of adjustment
Ratio
3 Hours
1 Hour
Event Hours
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TM
Design > Products > Requirements > Settlement
0.00.10.20.30.40.50.60.70.80.9
12:30a
m1:30
am2:30
am3:30
am4:30
am5:30
am6:30
am7:30
am8:30
am9:30
am10
:30a
m11
:30a
m12
:30p
m1:30
pm2:30
pm3:30
pm4:30
pm5:30
pm6:30
pm7:30
pm8:30
pm9:30
pm10
:30p
m11
:30p
m
Average Profile 6/24/2013 Baseline
Baseline Step #4
• Apply day‐of adjustment to create baseline
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
6/24/2013 Baseline Pseudo‐generation
Performance Calculation
• Baseline minus event day
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Capacity Payments
• If monthly pilot requirements are met, then:Capacity payment =
[Capacity Price] x [Nomination] x [Monthly Performance]
• Capacity Price: $10/kW‐month• Nomination: Monthly kW number chosen by participant
• Monthly performance: Weighted average of all hourly performance values
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Hourly Performance Tiers
Raw Performance Adjusted Performance
0.75 < x 1.000.50 < x ≤ 0.75 0.750.25 < x ≤ 0.50 0.500 < x ≤ 0.25 0.25
x ≤ 0 0
• Performance values rounded up for settlement:
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Wholesale Energy Payments
• ISO Day‐ahead (DA) awards settled at DA energy clearing price
• Any over‐delivery and under‐delivery are settled at the Real‐time (RT) Uninstructed Imbalance Energy price
Wholesale Settlement = {DA energy price x DA award}
±{Over/Under Delivery x RT price}
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TMISO Calculation: Example
Assumptions:– Assume award is for 3 consecutive hours– Day‐ahead energy price is $60.00 / MWH– Real‐time imbalance energy price is $72.00 / MWH
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TMISO Calculation: Over‐Delivery
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TMISO Calculation: Under‐Delivery
300
350400
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Real‐time (RT) & Ancillary Services (A/S)
• Both are optional• No enablement funds available• No additional pilot capacity payments; wholesale settlements are still passed through
• Have additional requirements• Requires minimum three months active participation in Day‐ahead (DA) SSP
• A/S requires 500 kW and longer timelines
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Real‐time (RT) Participation
• Requires minimum three months active participation in Day‐ahead (DA) SSP
• RT Market bids are hourly• If awarded, participant receives RT Dispatches in 5‐minute intervals:– Requires RT Control (OpenADR); must be able to respond to dispatch signals
– Signals come 2 ½ minutes before dispatch interval
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM
Design > Products > Requirements > Settlement
Real‐time (RT) Participation
• Bids initially entered in DA• If no awards, must bid those hours in RT• Participants may provide conditional bids to be sent RT or enter bids manually: – May insert/edit bids until 2 hours before trade hour
• RT bid prices & quantities:– No RT bid price ceiling– Hours with dispatches for bids at or above nomination count towards 24 hours
© 2014‐2016 Olivine, Inc. All copyright and trademark rights reserved.
TM2017 Plans and Outstanding Questions
• Customer Authorizations• Possible Rule Changes
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