the history of load participation in ercot · weighted average price for rrs ($) 12.93 12.61 28.68...

The History of Load

Participation in ERCOT

DOE Workshop—Washington, DC

Mark Patterson

ERCOT Manager of Demand Integration

October 25, 2011

In the Beginning….

2002

– Texas Energy Markets are opened to competition

– Legacy interruptible programs are eliminated

– Large Industrial customers want to participate in Ancillary Service

Markets

– Market Rules (Protocols) changed to add new type of resource called

Loads acting as a Resource (LaaR)

– Instantaneous Interruptible customers transition to Responsive Reserve

Service (RRS)

– 10 minute and 30 minute customers initially consider providing Non-

Spinning Reserve Service but quickly transition to RRS

– Limits placed on maximum participation (25% of RRS capacity)

– Loads must meet similar requirements as generators

• Real Time Telemetry

• Dispatchable via a verbal dispatch instruction

• UFR for Frequency Response

2

10/25/2011

2002 to 2004

• Deployments are done for System Capacity Insufficiency and

Management of Zonal and Local Congestion

• Loads must have a relatively flat load profile in order to provide RRS

(batch process loads are not allowed to provide service)

• Loads must pass a qualification test to provide service

• 25% limit is raised to 33%

• Protocols are changed to create a new type of Resource called a

CLR but system changes are extensive and not implemented

• Numerous deployments for Zonal and Local Congestion

3 10/25/2011

2005 – 2006

• Protocols are changed to remove zonal deployments

• 33% limit is changed to 50%

• Firm Load Shed in April 2006 and first system wide deployment of

LaaRs

• Some Performance Issues Identified

– 20 minute initial response times

– Real time telemetry issues

– Qualification tests allow simulated testing

4 10/25/2011

• Protocol changes implemented to correct issues

– Simulated testing no longer acceptable – qualification tests

must include an actual deployment

– Tightened telemetry standards

– Provisions added to suspend LaaRs that fail to perform

• Response times go from 20 minute timeframe to 7-8 minutes

• Tests run to demonstrate viability of CLR

• Zonal market ends in December 2010

2007 – 2010

10/25/2011

5

2011

• Nodal Market Implementation

– Deployments now include XML message prior to the verbal

dispatch instruction

– Split deployment stack created

– Full implementation of CLR

6 10/25/2011

7 10/25/2011

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

Apr-02 Apr-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11

MW

sLoad Resources Registered and Qualified for

ERCOT AS Market

Impact of Load Resources on AS Markets

10/25/2011

8

ERCOT Load Resources Participating in Responsive Reserve Market

Summary

2006 2007 2008 2009 2010 2011***

Number of Participants 130 130 143 160 181 189

Registered Load (MW) 1966 2069 2153 2063 2382 2391

Load Resource RRS Awards ($ millions) * 48.4 53.2 115.8 41.6 54.1 108.3

Estimate for Total Load Resource Contribution

($ millions) ** 130.0 125.7 267.9 95.5 89.5 182.9

Weighted Average Price for RRS ($) 12.93 12.61 28.68 10.17 9.03 25.27

* Represents only portion that was awarded through ERCOT AS Market Auction

** Estimate for Total Load Resource Contribution uses the weighted average price for RRS as a proxy price for self provided Load Resources

*** Results thru 9/30/2011

Load Resource Response on 2/2/2011

10/25/2011

59.5

59.6

59.7

59.8

59.9

60

60.1

60.2

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00

Load

Res

ou

rces

Dep

loye

d (M

W)

Time (hr:mm)

ERCOT Load Resource RRS Deployment 2/2/2011

Load Resources Deployed (MW) Frequency

9

Load Resource Response on 8/4/2011

10/25/2011

10

59.8

59.9

60

60.1

60.2

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

14:00 14:15 14:30 14:45 15:00 15:15 15:30 15:45 16:00 16:15 16:30 16:45 17:00 17:15 17:30 17:45 18:00 18:15 18:30 18:45

Load

Res

ou

rces

Dep

loye

d (M

W)

Time (hr:mm)

ERCOT Load Resource RRS Deployment 8/4/2011

Load Resources Deployed (MW) Frequency

Emergency Interruptible Load Service (EILS)

11 10/25/2011

• Service provided by end use customers willing to interrupt during an

electric grid emergency

• An additional tool for ERCOT Operations, deployed ONLY in the late

stages of a grid emergency

• Requirements:

– Can be individual loads or aggregations

– 15-minute interval metering or statistically valid sample approved by

ERCOT

– Capability of interrupting at least 1 MW of load on 10 minutes notice at

any time during the committed hours

– No telemetry required, and not modeled in the Network Operations

Model

– 3 Contract Periods per year, each has 4 time periods

– Performance based on both availability and deployment metrics

– Dispatching and financial performance is between ERCOT and a QSE

12 10/25/2011

0

100

200

300

400

500

600

FebMay08 Oct08Jan09 JunSept09 FebMay10 Oct10Jan11 AprMay11 Oct11Jan12

BH1 BH2 BH3 NBH

Nu

mb

er

of

MW

Pro

cu

red

0

200

400

600

800

1000

1200

14000:

15

0:45

1:15

1:45

2:15

2:45

3:15

3:45

4:15

4:45

5:15

5:45

6:15

6:45

7:15

7:45

8:15

8:45

9:15

9:45

10:1

5

10:4

5

11:1

5

11:4

5

12:1

5

12:4

5

13:1

5

13:4

5

14:1

5

14:4

5

15:1

5

15:4

5

16:1

5

16:4

5

17:1

5

17:4

5

18:1

5

18:4

5

19:1

5

19:4

5

20:1

5

20:4

5

21:1

5

21:4

5

22:1

5

22:4

5

23:1

5

23:4

5

MW

EILS Load Reduction 08/04/2011

Actual MW Baseline MW Obligation Load Reduction

Questions?

ON

OFF

10/25/2011

14