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Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment Jerry Mossing Director, Operations Planning Paul Barry Director, Market Services

Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

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Page 1: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

Reliable Power

Reliable Markets

Reliable People

Reliable Power

Reliable Markets

Reliable People

Demand Response Working GroupAESO ‘As Is’ and Needs Assessment

Jerry Mossing

Director, Operations Planning

Paul Barry

Director, Market Services

Page 2: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

2

Purpose

• Provide information to the Demand Response Work Group (DRWG) that helps the group understand :

– what operational situations that may require resources to manage,

– What resources are currently available,

– How these resources are used, and

– Experience to date

• Opportunity for the DRWG to ask questions and provide feedback.

Page 3: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

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AESO Operations Concern

• There is a strong possibility that sometime in the next several years;

– transmission constraints may increase, • Delays in north south, south west, etc.

– supply shortfall events may be more frequent, • LTA metrics indicate decreasing supply margin however no trigger action at this time

– wind’s fast down-ramps exceeding system ramp up capability.• MOF implementation underway. Approximately 11,000 MW in the queue.

– Each of these operating situations:

• will be managed using procedures that ultimately end in manual load curtailment procedures. (e.g. OPP 5xx, OPP 801, etc.)

• contains a gap between the point where supply runs out and manual (involuntary) load curtailment is necessary. The gap is demand response.

Page 4: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

4

AESO Operations

• Price responsive loads acting independently have an impact to the energy market

– Independent action by a significant amount of load in response to System Marginal Price (SMP) has a direct impact to AIES supply demand balance.

– Regulating reserve volumes may mask some of the effect but most often a generator dispatch is required.

– System Marginal Price changes with generator dispatch

– The cycle may repeat, depending on many factors including volumes and prices in the merit order

Page 5: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

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Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

Page 6: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

6

Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

•No requirement to be in the merit order•Independent action by load(s) has a direct impact to the supply/demand balance and will cause generator dispatch and SMP will change•E.g. An unintended consequence - 50 MW need for supply could result in 300 MW load response

Page 7: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

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Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

• Manual processes involving phone calls and paper. •Doesn’t scale to large number of participants•No measurable response other in real time•The program exists but no MW (only kW)

Page 8: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

8

Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

• Inter-ties – emergency energy agreements• Many steps, not many MW•LSS, DOS are likely price responsive loads•3% voltage reduction, pleas, non-essential loads = fluff

Page 9: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

9

Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

•AESO directs DFO curtailment volume as a percentage of load.•DFO procedures identify load breakers to trip. TFOs carry out the procedures as they have 24/7 control. SCADA required to be effective in 10 minutes. Load curtailments may be rotated between breakers during longer duration events.•The breakers used in these procedures must be coordinated with UFLS (so as to preserve load in some of the UFLS blocks)•This is typically when the terms rotating outages or brown outs are used, even for short duration events.

Page 10: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

10

Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

•Under frequency event caused by BC tie line trip during high BC import•Also used when Alberta is islanded •Automatic action, load breakers are tripped by relay (either UF or tie trip)•Allows operating criteria to be met while enabling high BC imports though preventing firm load loss for N-1.•LSS loads may be price responsive.

Page 11: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

11

Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

•Safety net for extremely large loss of generation •This is the last automatic action to keep the system up before generators trip to protect their equipment.•WECC requirement•The breakers used in these procedures must be coordinated with manual load shed procedures (so as to preserve some load in the manual load shed blocks)

Page 12: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

12

Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

•Contingency Reserves •WECC requirement•No concurrent use•Technical requirements well defined, including performance requirement

Page 13: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

13

Current Load Response

Supply Shortfall

Transmission Constraint(Downstream or Load pocket)

Wind Fast Ramp Down

High Import

Large Loss of Generation(Alberta or in WECC)

Loss of One Generator

Operating Situation ENMO & ASMO Procedures Last Resort

PRL VLCP Inter-tiesLSSSUPL

InvoluntaryCurtailment

InvoluntaryCurtailment

InvoluntaryCurtailment

ILRASLSS UFLS

SUPL

UFLS

Fluff

DOSEOS Trigger DTS

Time

•The possibility exists that in the next few years supply shortfall, transmission constraints and wind power ramps will result in more frequent involuntary curtailment. •No reasonable mechanism or program exists to fills this gap. •Demand response programs that establish loads who can voluntarily curtail load prior to involuntary curtailments seems a reasonable approach to preserve reliability and FEOC?•Can a comprehensive demand response program be implemented in time? When exactly is the need? Whose job is it?

Page 14: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

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Demand Response Commercial Experience

Page 15: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

15

AESO Commercial Experiences

• Load Participation

– 20MW for supplemental reserves

– 120MW for under frequency mitigation

– An incremental 100MW expressed interest recently in providing an under frequency mitigation service

• Majority of dealings with pulp and paper related customers

• AESO yet to contract with a Demand Aggregator

• Up to 240MW for ILRAS during supply shortfall events

• * VLCP – created by way of EUB Negotiated Settlement in 2000 to balance supply/demand – no longer used

• * DOS – alleviates abnormal conditions(* not AESO Commercial dealings)

Page 16: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

16

Questions/Commentson Implementation

Page 17: Reliable Power Reliable Markets Reliable People Reliable Power Reliable Markets Reliable People Demand Response Working Group AESO ‘As Is’ and Needs Assessment

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Thank you!