ercot nodal 101 · congestion revenue rights. day-ahead market. reliability unit commitment....

ERCOT Nodal 101

This presentation provides a general overview of the Texas Nodal Market and is not intended to be a substitute for the ERCOT Protocols, as amended from time to time. If any conflict exists between this presentation and the ERCOT Protocols, the ERCOT Protocols shall control in all respects.

For more information, please visit:http://www.ercot.com/mktrules/nprotocols/

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PROTOCOL DISCLAIMER

2

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Housekeeping

• Restrooms

• Refreshments

• Attendance sheet

• Exam

• Questions Please turn off cell phones & other electronics

A high-level overview of the ERCOT Nodal Market for all Market Participants and ERCOT personnel.

Target Audience

ERCOT Nodal 101:

4

• Identify major components of the Nodal Market

• For each component of the Nodal Market, describe

• Purpose

• Inputs

• Outputs

• Processes

Course Objectives

Upon completion of this course you will be able to:

5

Modules in this course include:

Introduction to ERCOT and MarketModule 1

Module 2

Module 3

Module 4

Module 5

Module 6

Locational Marginal Pricing

Congestion Revenue Rights

Day-Ahead Market

Reliability Unit Commitment

Real-Time Operations

Introduction to ERCOT

• Key features of the ERCOT Grid

• ERCOT Responsibilities

• Reliability and Markets

• Capacity and Energy

• Congestion Management

• Network Modeling

• Market Overview

Overview

Topics in this lesson . . .

8

• Represents 90% of Texas Load

• 77,000 MW of generation capacity

• 46,500 miles of transmission lines

• Electrical island with several DC Ties

ERCOT Introduction

Key Features of the ERCOT Grid

9

• Match generation with demand• Operate transmission system within established limits

ERCOT Responsibility

ERCOT’s Primary Responsibility is Reliability

10

Execute competitive markets for reliability services

• Markets support reliability• Reliability makes the markets

possible

ERCOT Operational Concepts

Reliability and Competitive Markets

11

ERCOT finds the balance between Reliability and

Economics


Energy and Capacity

12

ERCOT dispatches Energy to follow the

system demand


Energy and Capacity

13

Capacity

Forecast

ERCOT must also ensure sufficient Capacity is on-line

to meet the forecasted demand


More about Capacity

14

Capacity Reserved for Ancillary Services

Ancillary Services needed to respond quickly to changing system conditions

Acquired through competitive markets


Ancillary Service Capacity

15

System Capacity




16

Non-Spin Reserve

Regulation Reserve

Responsive ReserveThree types of Ancillary Services

• Generators and Loads separated by distance

• Transmission system has limits


Transmission Congestion

17

Congestion management keeps transmission system

operating within limits


Network Operations Model

18

Models allow ERCOT to:• “See” grid at any point in time• Predict how various actions

affect grid

Representation of a physical system

• Physical characteristics• Ratings• Operational limits

Including• Transmission Elements• Resources• Topology• Telemetry mapping


19

Network Operations Model

Checkpoint Jeopardy!

20

ERCOT finds the balance!

Match the following answers with the questions:

$50

Capacities reserved for responding quickly to changing conditions!$50

The process of keeping the transmission system operating within limits!$50

Market Introduction

Market Participants

Who are the Players?

22

Qualified Scheduling EntitiesQSE

Load Serving EntitiesLSE

Transmission and/or DistributionService ProvidersTDSP

Resource EntitiesResource Entity

Market Participants

23

• Bilateral Market• ERCOT Facilitated Markets

• Day-Ahead Ancillary Services Market

• Day-Ahead Energy Market• Real-Time Energy Market

ERCOT Nodal Market Design

Commercial Markets

24

Energy Dispatch• Resource-specific offers• Resource-specific dispatch

Goal• Balance generation & demand• Manage congestion

Energy Pricing• Location-specific prices for energy• Prices include congestion costs


25

• All costs are directly assigned

• Congestion Revenue Rights available for hedging


Congestion Costs

26


ERCOT is an energy-only market … but what does that mean?

27

In ERCOT, these costs must be recovered with revenues from energy production and operating reserves.

It’s all about the recovery of costs to build generation.


ERCOT is an energy-only market … but what does that mean?

28

Scarcity pricing – higher energy prices during periods where energy reserves are scarce

Energy Pricing must support investment in new generation

You Are Here!

29

Market Information System

30

An Independent Market Information System Registered Entity (IMRE) may register with ERCOT solely to access MIS Secure.

You Are Here!

31

• Locational Marginal Prices (LMPs)• Define LMPs• Determination of LMPs

• Congestion Rent• Settlement Point Prices• Reserve Prices• Market Information

Overview


33

What is Locational Marginal Pricing (LMP)?

• Pricing: Cost • Marginal: to serve the next increment of Load• Locational: at an Electrical Bus


34


• Energy• Congestion


LMP Components

35

In some markets, LMPs have a component for

losses.

The Nodal Market does NOT include losses in

LMPs.

36

Introducing the players… EXAMPLE


Gen 1

Gen 2

37

Let’s solve for LMPs at each Bus:EXAMPLE


10 MW($4 per MWh)

20 MW ($2 per MWh)

10 MW

Gen 1

Gen 2

38

Let’s solve for LMPs at each Bus:EXAMPLE


10 MW($4 per MWh)

20 MW ($2 per MWh)

10 MW

Gen 1

Gen 2

When there is no congestion, all LMPs are equal


Example: No Congestion

39

Charges to Load

LMP MW

$2 10 $20

Total $20

Payment to Resources

LMP MW

$2 0 $0

$2 10 $20

Total $20

Gen 1

Gen 2

40

Now there is congestion.EXAMPLE


10 MW($4 per MWh)

20 MW ($2 per MWh)

10 MW

4 MW constraint

Gen 1

Gen 2

41

EXAMPLE


10 MW($4 per MWh)

20 MW ($2 per MWh)

10 MW

4 MW constraint

Gen 1

Gen 2

With congestion, LMPs are different.

Charges to Load

LMP MW

$4 10 $40

Total $40

Payment to Resources

LMP MW

$4 6 $ 24

$2 4 $8

Total $32


42

Example: Congestion

Gen 1

Gen 2

Congestion Rent

43

$40

$32

$8

Payments to

ResourcesCharges to Load

Congestion Rent used to fund Congestion

Revenue Rights (CRRs)

• LMPs at Electrical Buses

• Settlement Points used for financial settlement

• Settlement Point Prices calculated using LMPs

Settlement Point Prices

LMPs and Settlement Point Prices

44

Settlement Point Price

LMP1

LMP2

LMP3

LMP4

LMP5

Electrical Buses

• Reserve Price Adder: the economic value of reserves that are available for energy dispatch in Real-Time

• LMPs and Reserve Price Adders are used together to form SPPs in Real-Time


Additional Real-Time pricing component…

43

LMPs are location-specific. Reserve Price Adders represent the value of reserves ERCOT-wide.

LMPs and Settlement Point Prices• Every Hour

LMPs and Reserve Price Adders• Every 5 minutes*

Settlement Point Prices• Every 15 minutes


How often are LMPs & Settlement Point Prices calculated?

46

* LMPs and Reserve Price Adders generated at each SCED cycle (possibly more often than 5 minutes)


Three Types of Settlement Points:

47

ResourceNodes

LoadZones

Hubs

An Electrical Bus where a Resource’s measured output is settled


What is a Resource Node?

48

Resource Electrical Bus

Day-Ahead MarketLMP at the Resource Node

Real-Time OperationsTime-Weighted Average of LMPs at the Resource Node

Time-Weighted Average of Reserve Price Adders


Settlement Point Prices for Resource Nodes

49

+

Resource Electrical Bus

A group of Electrical Buses assigned to the same geographical zone


What is a Load Zone?

50

Every Electrical Bus with Load must be assigned to

a Load Zone for Settlement purposes

Day-Ahead MarketLoad-Weighted Average of LMPs in Load Zone

Real-Time OperationsLoad-Weighted and Time-Weighted Averages of LMPs in Load Zone



Settlement Point Price for Load Zones

51

+

• Competitive Load Zones

• Non Opt-in Entity Load Zones

• DC Tie Load Zones


Three types of Load Zones

52

• North

• South

• West

• Houston

2003 Congestion Management zones


Competitive Load Zones

53

• Established by one or more NOIE(s)

• Some large NOIEs required to establish own NOIE Load Zones

• NOIEs that don’t establish NOIE Load Zone are assigned to Competitive Load Zone


Non Opt-in Entity Load Zones

54

• Used to settle exports across DC Ties

• One for each DC Tie

• Contains only the electricalbus connected to the DC Tie


DC Tie Load Zones

55

All Load must be assigned to a Load Zone for Settlement purposes

• Group of 345kV Hub-buses• Defined by Protocols


What is a Hub?

56

Hub

ERCOT Hub Average

ERCOT Bus Average


Six Hubs in ERCOT Market

57

Four Regional Hubs• North

• West

• South

• Houston

Two Average Hubs

Hub

Day-Ahead MarketSimple average of LMPs at Hub Buses in each Hub

Real-Time OperationsSimple average of Time-Weighted Average LMPs at the Hub Buses in the Hub



Settlement Point Price for Hubs

58

+

• LMP Contour Map• Day-Ahead Market SPPs• Real-Time LMPs• Real-Time SPPs


59

http://www.ercot.com/content/cdr/contours/rtmLmpHg.html


$100


60

These Settlement Points come in half-a-dozen!


$25

Energy and congestion!$50

A price formed by combining LMP’s with Reserve Price Adders!

Nodal Market Operations

Nodal Market Operations

Market Components

62

• Purpose of CRRs• CRR Account Holders• Types of CRRs• How CRRs are acquired• Settlements• Market Information System

Overview


64

You Are Here!

65

• Financial instruments• Hedge against congestion costs• Financial investment

• Payment or charge when Grid is congested


Purpose of Congestion Revenue Rights

66

A CRR is not a right to

deliver physical energy

Congestion Costs

Congestion Cost exposure

67

Resource Node A

Resource Node B

$30/MWh$40/MWh

$45/MWh

Congestion costs are built in to the Settlement Point prices

Load Zone


68

Introducing a new player:CRR Account Holder


69

To own CRRs, Market Participants:• Must be registered with ERCOT

• Must qualify as CRR Account Holders


70

Barred from owning CRRs:• TSPs & DSPs

• ERCOT

Point-to-Point Congestion

Revenue Rights

• Designated point of injection (source) and point of withdrawal (sink)

• Settlement based on difference between sink and source Settlement Point Prices

• Two Instruments:• PTP Options – payment only• PTP Obligations – payment or

charge


Congestion Revenue Rights as Financial Instruments

71

72

$5/MWh

$10/MWh

$15/MWh

Source A

Source C

Sink B

Obligation AB Payment = $5.00

Obligation CB Payment = -$5.00

Point-to-Point (PTP) ObligationsEXAMPLE


?

73

Option AB Payment = $5.00

Option CB Payment = $0.00

$5/MWh

$15/MWh

Source A

Source C

Sink B

Point-to-Point (PTP) OptionsEXAMPLE


?

$10/MWh

• CRR Auction• Allocation (Special Case)• Bilateral Trades


Three ways of acquiring CRRs:

74

Auction

Allocation

Trade

CRRs

http://ep.ercot.com/npt/ERCOT%20Nodal%20Graphics/Certificate.PNG

http://ep.ercot.com/npt/ERCOT%20Nodal%20Graphics/Certificate.PNG

• Time-of-Use Blocks• One month strips


CRRs are auctioned and allocated by:

75

• CRR Auction• Monthly and Semi-Annual Auctions• Based on Network Operations Model


76

http://ep.ercot.com/npt/ERCOT%20Nodal%20Graphics/allocation_titled.png

http://ep.ercot.com/npt/ERCOT%20Nodal%20Graphics/allocation_titled.png

• Pre-Assigned CRRs (PCRRs)• Allocated to Non-Opt-In Entities (NOIEs)• Based on long-term supply contracts• May be allocated as Options or Obligations• No charge or a percentage of the Auction clearing price


Allocation of CRRs

77

mailto:[email protected]


http://nodal.ercot.com/protocols/index.html

http://nodal.ercot.com/protocols/index.html

http://nodal.ercot.com/training/courses/index.html

http://nodal.ercot.com/training/courses/index.html

• PTP Options• PTP Obligations• Characteristics remain unchanged• Both parties must meet credit requirements


Trading CRRs Bilaterally

78

Three Settlement Processes• CRR Auction Settlement• CRR Settlement• CRR Balancing Account


CRR Settlements

79

Congestion Revenue Rights Settlements

CRR Auction Settlements

80

Settlements

Payments

Charges


CRR Auction Settlements Timeline

81

Auction Completed Day 1* Day 3** Day 4**

Auction Invoice

PaymentsDue to ERCOT

PaymentsDue to CRR Account Holders

Auction Results

Day 2** Day 5***

** Bank Business Day

*** Business Day and Bank Business Day

* Business Day


CRR Auction Settlement

82

Monthly

CRR Auction Revenues

+PCRR Revenues

Pay to QSEs representing Load

http://nodal.ercot.com/







CRR Settlement

83

CRRs are settled in the Day-Ahead Market

Payments

Charges

Payment due toCRR Account Holders

Hourly


CRR Settlement

84


Hourly


CRR Settlement

85

may be short paid in some hours


MonthlyPay to QSEs representing Load


CRR Balancing Account

86



CRR Balancing Account

87

Monthly

X

may remain short paid


Posted after each Auction:

88

• CRRs awarded • CRR Account Holders• Auction clearing prices• CRR Bids and offers

$100


89

Assigned, awarded, or traded!


$25

A fund that is used to pay CRR Account Holders what they are due!$50

A fund that is uplifted to QSEs representing Load!

Day-Ahead Market

• Purpose of Day-Ahead Market• Market Participants• Day-Ahead Market Process• Process Inputs and Outputs• Settlements• Market Information System

Overview


91

You Are Here!

92

• Centralized Forward Market• Buy and sell Energy• Sell Ancillary Services to ERCOT• Forward market provides price

certainty

Day-Ahead Market

Purpose of the Day-Ahead Market

93

Day-Ahead Market

94

Only QSEs participate in the Day-Ahead Market.

Day-Ahead Market

95

CRRs are settled with Day-Ahead Market Prices

When does the Day-Ahead Market occur?• Market opens at 0600• Clearing Process begins at 1000• Results posted by 1330

Day-Ahead Market

96

0600 1330 0000 Real-TimeOperations

An Offer is a proposal to sell:• A Product• At a Location• For a Price

A Bid is a proposal to buy:• A Product• At a Location• For a Price

Day-Ahead Market

97

EnergyLoadZone 4

$40

Day-Ahead Market

The Day-Ahead Market

98

Day-Ahead Market


99

Day-Ahead Market


100

Types of Offers:• Three-Part Supply Offer • Ancillary Service (AS) Offer• Day-Ahead Market Energy-Only Offer

Startup Offer Minimum-Energy Offer Energy Offer Curve

$ / MWh (at LSL) $ / MWh (above LSL)

$ / Start

Day-Ahead Market

Three-Part Supply Offer

101

Energy Offer Curve can be submitted without Start-up or Minimum Energy Offers

• Resource specific • Regulation Reserve• Responsive Reserve• Non-Spinning Reserve

• A Resource may be offered• For multiple Ancillary Services• For Energy and Ancillary

Services

Day-Ahead Market

Ancillary Service (AS) Offers:

102

Ancillary Service Offer

• Proposal to sell energy in DAM• Offered at any Settlement Point

Day-Ahead Market

Day-Ahead Market Energy-Only Offer

103

DAM Energy-Only Offer

h

Valid only in the Day-Ahead Market

Financial obligation in Real-Time

Slide 103

Day-Ahead Market


104

Types of Bids:• Energy Bid• PTP Obligation Bid

• Proposal to buy energy• Submitted at any Settlement Point

DAM Energy Bid

h

Day-Ahead Market

Day-Ahead Market Energy Bid

105

Valid only in the Day-Ahead Market

Financial credit in Real-Time

Purpose of DAM PTP Obligations

• Hedge against congestion costs in Real-Time

• Charge or payment when Grid is congested in Real-Time

Day-Ahead Market

Day-Ahead Market PTP Obligation Bids

106

• Like coupled Energy Bid and Energy Offer• Purchased at DAM Settlement Point Price Spread• Settled at Real-Time Settlement Point Price Spread

Day-Ahead Market

Day-Ahead Market PTP Obligation Bids

107

Source A

Sink BEnergy Offer

Energy Bid

PTP Obligation

DAM PTP Obligation canresult in a payment or

charge

108

Day-Ahead Market PTP ObligationsEXAMPLE

Day-Ahead Market

QSE charge in Day Ahead Market = $2

QSE payment in Real Time = $7 ?

?

$10/MWh $12/MWh

Source A Sink B

PTP Obligation

DAM :

$8/MWh $15/MWhReal-Time :

Settlement Point Prices {{

Day-Ahead Market

109

CRR Auction Day-Ahead Market Real-Time

Day-Ahead Market

110


• Anticipated Resource operating conditions• Resource Status• Resource Limits• Ancillary Service Commitments

• Submitted by QSE

Day-Ahead Market

The Current Operating Plan (COP)

111

QSE must maintain the COP for each hour of the next 7 days

Day-Ahead Market


112

• Day-Ahead Market does not solve reliability issues

• System must support the Day-Ahead Market solution

Day-Ahead Market

The Network Model in the Day-Ahead Market

113

The Network Operations Model ensures that DAM solution

respects system limits

Day-Ahead Market


114

Day-Ahead Market


115

Cleared Offers = Costs

Cleared Bids = Revenues

Day-Ahead Market

The Day-Ahead Market clearing process

116

MaximizeThe Gap

Bid-based Revenues

Offer-based Costs

Offer-based Costs

MaximizeThe Gap

Bid-based Revenues

Day-Ahead Market

The Day-Ahead Market clearing process

117

Energy&AncillaryService Costs

The Day-Ahead Market is a Co-optimized Market

Day-Ahead Market


118

QSEs may update COP• Awarded Energy Offers• Ancillary Service Commitments

QSEs may submit Trades

Day-Ahead Market

After Day-Ahead Market

119

• QSE-QSE transactions• Transfers financial responsibility• Types

• Capacity• Energy• Ancillary Service

Day-Ahead Market

Trades

120

Trades are used only in Settlements

Day-Ahead Market Settlements

121

Payments

Charges

Daily statements include • Payments due• Charges incurred

Day-Ahead Market

Day-Ahead Settlement Timeline

122

Operating Day

Day 2Day Ahead

DAM Statement

Day 1

Daily invoices include• DAM Statements• RTM Statements

Day-Ahead Market

Single Daily Settlement Invoice

123

Operating Day

Day 5 Day 6

ERCOT Issues DAM

Statement & Invoice Payment Due

(to ERCOT)

Payment Due (to Market Participant)

Day 2

17001700

Day Ahead

InvoiceDay + 2

InvoiceDay + 3

ERCOT Issues Invoice• DAM Statements • RTM Statements Payment Due

(to ERCOT)

Payment Due (to Market

Participant)

InvoiceDay

17001700


Posted by 0600 Day-Ahead:

124

• Network Operations Model

• Weather Assumptions • Load Forecasts (next 7 days)• Forecasted Load Profiles



125

• LMPs • Settlement Point Prices• MCPCs for each Ancillary Service• Energy bought and sold

$100


126

Inputs that indicate a willingness to buy or sell products in DAM!


$25

A DAM transaction that creates a financial credit in Real-time!$50

Products that may be offered simultaneously from the same Resource!

• Purpose of Reliability Unit Commitment (RUC)• Market Participants involved • The RUC Process• Settlements• Capacity Shortfall• Market Information System

Overview


128

You Are Here!

129

It ensures:

• Enough capacity is committed to serve the forecasted load

• Committed capacity is in the right locations


Purpose of Reliability Unit Commitment (RUC)

130


131

Operational impacts on:QSEs with Resources


132

Funds collected from:• Capacity-Short QSEs

• QSEs representing Load


The Reliability Unit Commitment Process

133


Committing Enough Capacity

134


Committing Capacity in the Right Locations

135


What if ERCOT must commit additional capacity?

136


Potential Results of RUC Process:

137

• Resource Commitments• Resource Decommitments• No additional Commitments

• Day-Ahead Reliability Unit Commitment (DRUC)• Hourly Reliability Unit Commitment (HRUC)


When does Reliability Unit Commitment (RUC) occur?

138

HRUCDRUC

Make-Whole

Payments


139

*RUC-Committed Resources

Capacity Short

Charges

Make-Whole Uplift

Charges

• Make-Whole Payments• RUC-committed Resources recover their

commitment costs


140

Resource Costs

Resource Revenues

$

RUC Make-Whole Payment

Make-Whole Payment


Capacity Short Charge

141

Capacity Obligations

Capacity Supply

Capacity Shortfall

QSEs with Capacity Shortfall may be assessed Capacity Short Charges

• Load (Adjusted Metered Load)• Capacity Trades where the QSE is a seller• Energy Trade where the QSE is a seller• Cleared DAM Energy Offer


What is included in the QSE’s capacity obligation?

142

Capacity Required to meet QSE Obligations


• Show capacity from its Resources in its COP• Capacity Trades where the QSE is a buyer• Energy Trades where the QSE is a buyer• Cleared DAM Energy bids


How can a QSE arrange to meet these obligations?

143

Capacity arranged by QSE

Capacity Supply

QSE must arrange for enough Capacity to meet Obligations


To Minimize Capacity Short Charges…

144


Capacity Supply

Capacity Shortfall

Difference uplifted to QSEs representing Load


Revenues may not be enough for make-Whole Payments

145

Gen 1

RUC Make-Whole

Payments

Make-WholeUplift

Charges

CapacityShortfallCharges

Capacity Short


146

Make-Whole

Payments Capacity Short

Charges

Make-Whole Uplift

Charges

RUC Payments and Charges are included in Real-Time Settlements


Posted after process completion:

147

• Resources committed • Resources decommitted• Active transmission constraints

$100


148

An input used by RUC to determine how much capacity is needed!


$25

Possible result of a snapshot of a QSE’s obligations!$50

An input used by RUC to determine the least cost solution to commit a Resource!

• Purpose of Real-Time Operations• Market Participants• Real-Time Operations Process

• Security Constrained Economic Dispatch• Load Frequency Control

• Settlements• Market Information System

Overview


150

You Are Here!

151

• Manage reliability• Match generation with demand• Operate transmission system

within established limits• Operate the system at least cost


Purpose of Real-Time Operations

152


153

ERCOT provides dispatch instructions to QSEs with Resources


154

ERCOT may also provide dispatch instructions to TSP’s

• Operating Period• Includes Operating Hour and Hour-Ahead


When do Real-Time Operations occur?

155

60 mins.prior to

Operating Hour

00000600 Real-TimeOperations

• Operating Hour - Real-Time dispatch of energy• Hour-Ahead – Preparations for Real-Time Operations


The Operating Period includes:

156

60 mins.prior to

Operating Hour

0000Real-TimeOperations

0600


157

• Network Security Analysisidentifies transmission constraints

• Security Constrained Economic Dispatch (SCED) determines least-cost solution


Network Security Analysis and SCED

158

NetworkSecurityAnalysis

SecurityConstrainedEconomicDispatch



Provide Real-Time system data

159


Identify Constraints, both Transmission & Resource

160

TransmissionConstraints& ResourceDispatch Limits


SCED evaluates Offers to determine least-cost solution

161

TransmissionConstraints& ResourceDispatch Limits


SCED uses Energy Offer Curves:

162

Energy Offer Curve Submitted by QSEs:• Three-Part Supply Offer• Stand Alone Energy Offer Curve

During:• Day-Ahead Market• Adjustment Period


SCED produces Prices and Dispatch Instructions

163


How often does all this happen?

164

At least every 5 minutes

Every 5 minutes (when SCED runs)LMPs• Electrical buses

Every 15 minutesSettlement Point Prices• Resource Nodes• Load Zones• Hubs


Real-Time Price Calculations

165

Reserve Price Adders• ERCOT-wide

SCED

• Matches generation with demand• Manages congestion• Achieves least cost dispatch


Security Constrained Economic Dispatch (SCED)

166

SCED

SCED

5 minutes 5 minutes

Base points

Base points

Base points

• Matches generation with demand• Responds to frequency deviations• Deploys Regulation Reserve Service


Load Frequency Control (LFC)

167

Frequency (Hz)

60. 0000

5 minutes 5 minutes

Base points

Base points

Base points

Real-Time Operations Settlements

168

Payment for Net Supply

Charge for Net Obligation

• Metered Generation• DAM Purchase• Trades as Buyer

Examples•__________________ •__________________•__________________


169

•Metered Load•DAM Sale•Trades as Seller

Examples•__________________ •__________________•__________________


170

Daily statements include • Payments due• Charges incurred


Real-Time Settlement Timeline

171

Day 180

Operating Day

Day 5

Initial Statement

Final Statement

True-Up Statement

Day 55

Daily invoices include• DAM Statement• RTM Statements


Single Daily Settlement Invoice

172

Operating Day

Day 5 Day 6

ERCOT Issues DAM

Statement & Invoice Payment Due

(to ERCOT)

Payment Due (to Market Participant)

Day 2

17001700

Day Ahead

InvoiceDay + 2

InvoiceDay + 3

ERCOT Issues Invoice• DAM • RTM Initial• RTM Final• RTM True-up

Payment Due (to ERCOT)

Payment Due (to Market

Participant)

InvoiceDay

17001700


Posted after completion of SCED:

173

• Locational Marginal Prices• Settlement Point Prices

• Active transmission constraints

$100


174

The QSE’s submitted energy offer for a specific Resource!


$25

The first leg of the Operating Period!$50

Real-Time value of reserves across the wide range of ERCOT!

Course Conclusion

NODAL MARKET CURRICULUM ** available as web-based courseNodal 101 ** An introduction to the ERCOT Nodal Market.

Retail 101 An introduction to the competitive retail market in the ERCOT Region.

LSE 201 ** Market tools to manage cost of serving Load in the ERCOT Nodal Market.

Basic Training Program Comprehensive overview of Market and System Operations in the Nodal Market design.

CRR Market Comprehensive overview of Congestion Revenue Rights.

Settlements 301 Comprehensive overview of financial settlements in the ERCOT Nodal Market.

Credit Management Comprehensive overview of financial credit management in the ERCOT Nodal Market.

Transmission 101 Overview of processes in the planning and operation of the ERCOT grid.

Nodal Market Education

ERCOT Market Education [email protected]

ERCOT Training Cataloghttp://www.ercot.com/services/training/


http://www.ercot.com/services/training/

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APPENDIX

Checkpoint Jeopardy Answers

180

Module 1 – ERCOT ResponsibilitiesAnswer: ERCOT finds the balance!Question: How does reliability and markets work together?

Answer: Capacities reserved for responding quickly to changing conditions.Question: What are Ancillary Services?

Answer: The process of keeping the transmission system operating within limits.Question: What is congestion management?

Module 3 – LMPAnswer: These Settlement Points come in half-a-dozen!Question: How many Hub Settlement Points are there?

Answer: Energy and congestion.Question: What are the two components of LMP?

Answer: A price formed by combining LMP’s with Reserve Price Adders.Question: What is a Settlement Point Price?


181

Module 4 – Congestion Revenue RightsAnswer: Assigned, awarded, or traded!Question: How can a CRRAH acquire a CRR?

Answer: A fund that is used to pay CRR Account Holders what they are due.Question: What is Congestion Rent?

Answer: A fund that is uplifted to QSEs representing Load.Question: What is CRR Auction Revenue?

Module 5 – Day-Ahead MarketAnswer: Inputs that indicate a willingness to buy or sell products in DAM.Question: What are Bids and Offers?

Answer: A DAM transaction that creates a financial credit in Real-time.Question: What is a cleared Energy Bid?

Answer: Products that may be offered simultaneously from the same Resource.Question: What are Energy and Ancillary Services?


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Module 6 – Reliability Unit CommittmentAnswer: An input used by RUC to determine how much capacity is needed.Question: What is the Load Forecast?

Answer: Possible result of a test in time of a QSE’s obligations!Question: Why might a QSE receive a Capacity Short charge?

Answer: An input used by RUC to determine the least cost solution to commit a Resource.Question: What is the Three-Part Supply Offer?

Module 7 – Real-Time OperationsAnswer: The QSE’s submitted energy offer for a specific Resource!Question: What is the primary input into SCED?

Answer: The first leg of the Operating Period!Question: When does Hour-Ahead occur?

Answer: Real-Time value of reserves across the wide range of ERCOT!Question: What are Reserve Price Adders?

Appendix: Pathways to Referenced Data

Access Market Information System from ERCOT public website:

183

Digital Certificate required

LMP Contour Map: http://www.ercot.com/content/cdr/contours/rtmLmpHg.html


184


Public access: http://www.ercot.com/mktinfo/crr/index.html

CRR Auction section, Auction Results posting (zip folder)• CRRs, CRRAHs awarded, and Auction Clearing Prices

• Common Market Results file (CSV or XML format) • CRR Bids and Offers

• Common Auction Bids and Offers file (CSV or XML format)


CRR Auction Results

185

http://www.ercot.com/mktinfo/crr/index.html


CRR Auction Results via Market Information System

186


Day-Ahead Network Operations Model (posted by 0600)

187



188

• Weather assumptions• Public access:

http://www.ercot.com/mktinfo/dam/index.html, under System Conditions

• MIS Secure: Markets > Day-Ahead Market > Day-Ahead Public Information

• Forecasted Load Profiles• Public access:

http://www.ercot.com/mktinfo/loadprofile/index.html, under Current Information

• MIS Secure: Markets > Load Profiling > Load Profiling Reports and Extracts (Public)

http://www.ercot.com/mktinfo/dam/index.html

http://www.ercot.com/mktinfo/loadprofile/index.html



189

• Load Forecasts (next 7 days)• Public access:

http://www.ercot.com/gridinfo/load/index.html, under Current Information

• MIS Secure: Grid > Forecasts > Significant System Conditions

• List of transmission constraints• Public access:

http://www.ercot.com/gridinfo/generation/index.html, under Current Information

• MIS Secure: Grid > Generation > Public Generation Information > Weekly RUC Active and Binding Transmission Constraints

http://www.ercot.com/gridinfo/load/index.html

http://www.ercot.com/gridinfo/generation/index.html



190

• DAM Hourly LMPs• DAM Settlement Point Prices• DAM Clearing Prices for Capacity• DAM Total Energy Purchased• DAM Total Energy sold

• Public access: http://www.ercot.com/mktinfo/dam/index.html, under Day-Ahead Market Results Reports

• MIS Secure: Markets > Day-Ahead Market > Day-Ahead Market Results

http://www.ercot.com/mktinfo/dam/index.html


Posted after RUC completion:

191

• RUC Committed or DecommittedResources

• MIS Secure: Grid > Generation > Reliability Unit Commitment

• Active transmission constraints• Public access:

http://www.ercot.com/gridinfo/generation/index.html under Current Information

• MIS Secure: Grid > Generation > Public Generation Information

http://www.ercot.com/gridinfo/generation/index.html


Posted after completion of SCED:

192

• Locational Marginal Prices• Settlement Point Prices

• Public access: http://www.ercot.com/mktinfo/rtm/index.html, under Real-Time Prices Reports

• MIS Secure: Markets > Real-Time Market > Real-Time Prices

• Active transmission constraints• MIS Secure: Markets > Real-Time Market >


http://www.ercot.com/mktinfo/rtm/index.html

ercot nodal 101 · congestion revenue rights. day-ahead market. reliability unit commitment....

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