Demand Response:An Integrated Resource

CEC Scoping WorkshopLoad Management StandardsMarch 3, 2008

John GoodinLead, Demand Response

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MRTU Core Market Functions

Day-ahead:Clear bid-in supply against bid-in demandCongestion managementProcure operating reserves and regulation Perform Unit Commitment -to ensure adequate resources are available to meet forecasted demand & reserve requirements in real-time

Real Time:Procure additional operating reserves and regulation, if necessaryReal-time dispatch of resources to meet instantaneous demand Reliable real-time operation -observe grid constraints, respond to contingencies, comply with WECC/NERC operating criteria

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Key Challenge… Meeting the Growing Demand

CAISO Load Duration CurveSept '05 to Sept '06

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

1

26

2

52

3

78

4

1,0

45

1,3

06

1,5

67

1,8

28

2,0

89

2,3

50

2,6

11

2,8

72

3,1

33

3,3

94

3,6

55

3,9

16

4,1

77

4,4

38

4,6

99

4,9

60

5,2

21

5,4

82

5,7

43

6,0

04

6,2

65

6,5

26

6,7

87

7,0

48

7,3

09

7,5

70

7,8

31

8,0

92

8,3

53

8,6

14

Hour

Ho

url

y A

ve. D

eman

d

50,085 MW Peak 7/24/06

Greater than 45,000 MW 57 hours or 0.65%

Greater than 40,000 MW 279 hours or 3.2%

Greater than 35,000 MW 805 hours or 9.2%

Winter Peak 33,275 MW 12/14/05

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Key Challenge… Increasing Load Factor (Summer)

28,000

29,500

31,000

32,500

34,000

35,500

37,000

38,500

40,000

41,500

43,000

44,500

46,000

47,500

49,000

50,500

52,000

0:00 1:20 2:40 4:00 5:20 6:40 8:00 9:20 10:40 12:00 13:20 14:40 16:00 17:20 18:40 20:00 21:20 22:40 0:00

Actual Load 1 in2 Forecast 1 in 10 Forecast

50,085 MW

28,424 MW

July 24, 2006

21,661 MW Delta

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Key Challenge… Increasing Load Factor (Winter)

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Key Challenge… Integrating Intermittent Resources

Integrating & Firming the energy production from this wind park

0

100

200

300

400

500

600

700

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Meg

awat

ts

Average

Each Day is a different color…

Day 29

Day 5 Day 26

Day 9

Tehachapi Wind Generation in April – 2005

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Wind vs. Actual Load on a Typical Hot Day in 2006

CAISO Wind Generation

July 2006 Heat Wave

0

200

400

600

800

1,000

1,200

07/1

6/06

07/1

7/06

07/1

7/06

07/1

8/06

07/1

8/06

07/1

9/06

07/1

9/06

07/2

0/06

07/2

0/06

07/2

1/06

07/2

1/06

07/2

2/06

07/2

2/06

07/2

3/06

07/2

3/06

07/2

4/06

07/2

4/06

07/2

5/06

07/2

5/06

07/2

6/06

07/2

6/06

MW

Wind Generation Wind Generation at Peak

Total Wind Generation Installed Capacity = 2,648 MW

Wind Generation at Peak

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Demand Response Working Groups

Five Working Groups Formed to Help Shape the Future Model and Integration of Demand Response Resources Vision for Demand Resources- CPUC lead DR Participation in MRTU Release 1- CAISO lead DR Participation in MRTU Release 1A- CAISO lead DR Product Specification- CEC lead Appropriate DR Infrastructure- CEC lead

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Example…the Need for Integration

Under MRTU:

Expected Emergency Triggered DR Amount: 1,700 MW

Demand Forecast: 45,000 MW

DA Forward Market Clears: 43,000 MW

CAISO Commits 2,000 MW of additional capacity to be available

The CAISO did not commit only 300 MWs (45,000 -1,700 = 43,300), the CAISO must plan to meet all the load, even the non-firm load that may be available for interruption if a system emergency is declared. The CAISO does not plan the system to be in an emergency state so that it can have access to emergency triggered resources.

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Retail Programs to Wholesale Market Products

Retail Programs Wholesale Products

Wholesale Market Products: Day-ahead Market

• Energy: Price-Responsive Demand• Ancillary Services: Non-spin, Spin & Regulation

Residual Unit Commitment Capacity

Real-time Market• Energy Market- Balancing Energy• Ancillary Services- Non-spin, Spin & Regulation

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Questions?

Contact Info:John Goodin

(916) 608-7154

jgoodin@caiso.com