Transcript Scott Benner PJM FastDR PLMA
Demand Side Response Participation In the Energy & Ancillary Service Markets
Scott Benner PJM Interconnection, LLC PJM©2012 www.pjm.com
• 26% of generation in Eastern Interconnection • 28% of load in Eastern Interconnection • 19% of transmission assets in Eastern Interconnection PJM as Part of the Eastern Interconnection
KEY STATISTICS
PJM member companies millions of people served peak load in megawatts MWs of generating capacity 750+ 60 163,848 185,600 miles of transmission lines GWh of annual energy generation sources 65,441 832,331 1,365 square miles of territory 214,000 area served 13 states + DC Internal/external tie lines 142
21% of U.S. GDP produced in PJM
As of 1/4/2012 PJM©2012 www.pjm.com
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Demand Response Registrations & Business Segments • Demand Response are represented by Registrations • Registrations are made up of one or more Locations (sites) – Each Location is an EDC Account / meter point • Locations contain one or more Devices that can provide wholesale ancillary services
1. Retail 2. Industrial/Manufacturing
3. Office Building 4. School 5. Hospital 6. Food Service 7. Warehouse 8. Residential HVAC Lighting Environmental Controls (Temperature) Energy Storage Manufacturing Processes PJM©2012 www.pjm.com
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Demand Side Participation in PJM
• Where we’ve been.
• Where we are.
• Where we’re going . . .
PJM©2012 www.pjm.com
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Demand Response History at PJM • On 6/1/2006, PJM enacted tariff & market rule changes to allow Demand Side Resources to participate in the capacity, energy and ancillary service markets – Resources 500kW and larger were eligible to participate in the ancillary services – No more than 25% of each ancillary service market’s requirement could be serviced by demand side resources • Synchronous Reserve • Frequency Regulation • Day-Ahead Scheduling Reserves PJM©2012 www.pjm.com
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Demand Response in the Capacity Market • RPM delivery year 2007-2008 was the first containing DR products, most as Interruptible Load for Reliability • Looking forward to DY2012-2013, Demand Side Resources providing emergency energy curtailments & efficiency improvements will make up 7% of the “installed capacity” in PJM
Nuclear; 33708; 17% Natural Gas; 49183; 25% Coal; 77696; 39% Petrolium; 14475; 7% Renewables; 10115; 5% Demand Side; 14007; 7%
PJM©2012 www.pjm.com
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Demand Response in Synchronized Reserve • In Sept 2006, PJM qualified its first DSR to provide synchronous reserve – A resource that is consuming energy provides reserve by curtailing its demand within 10 minutes upon request – A Curtailment Service Provider (CSP) offers the resource to the market and coordinates with PJM Dispatch – PJM requires 1-minute interval data submitted via eLRS for M&V • On 10/14/2006, PJM issued its first synchronized reserve event with an assigned demand side resource • While individually small, many resources can collectively provide the same MW of reserve as a generator PJM©2012 www.pjm.com
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10.0% 7.5% 5.0% 2.5% 0.0% 25.0% 22.5% 20.0% 17.5% 15.0% 12.5% www.pjm.com
Demand Response Participation in Synchronous Reserve
Synchronous Reserve DR Participation by Month
1400 1260 1120 980 840 700 560 420 280 140 0 As of 5/15/2012 PJM©2012 8
Addressing Barriers to Entry to the Ancillary Service Markets • Advanced Technology Pilot (ATR) Program – Asset owners work with Applied Solutions dept. to investigate technologies that don’t quite fit current market rules – Over time, pilots move to production, and compensation • In Summer 2011, PJM began the stakeholder process to lower the qualification limits from 500kW to 100kW – FERC approval was effective 10/20/2011 – PJM & members agreed to delay implementation to after AC2 PJM©2012 www.pjm.com
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Demand Response in Frequency Regulation • On 11/21/2011, two Demand Side Resources began participation in PJM’s Regulation Ancillary Service Market – A resource that is consuming energy continuously increases or decreases demand in response to a PJM issued control signal – PJM requires 10-second interval metering via DNP3 for M&V • Demand Side Resources provide regulation service using – Pumps at a municipal wastewater treatment plant – Battery bank at a manufacturing facility – Ceramic “thermal storage” bricks in residential communities – Electric vehicles parked at charging stations PJM©2012 www.pjm.com
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www.pjm.com
Typical Demand Response to Regulation Control Signal 0.10
0.08
0.06
0.04
0.02
0.00
-0.02
-0.04
-0.06
-0.08
This registration is a network of many pumps, each raising and lowering consumption relative to the regulation signal while honoring local operating constraints (pond levels) -0.10
Regulation Signal 11 Response PJM©2012
Demand Response in Day-ahead Scheduling Reserve • Day-Ahead Scheduling Reserve (DASR) Market, formerly the Operating Reserve service – PJM maintains an operating reserve for each hour of the day • When the reserve requirement is not met, either additional generation is dispatched on-line or DR is assigned to curtail – A resource that is consuming energy is paid to curtail energy in the assigned hours, if directed to curtail by PJM Dispatch • Market clearing price correlates to high demand days – For year 2012, the reserve requirement is 7.03% of forecasted demand $1,000.00
$100.00
$10.00
$1.00
$0.10
$0.01
J F M A M J J A S O N D 2011 PJM©2012 www.pjm.com
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Demand Side Participation in PJM
• Where we’ve been.
• Where we are.
• Where we’re going . . .
PJM©2012 www.pjm.com
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It’s Been a Busy 2012 So Far . . .
• Raising the 25% DR Participation Limit – Although the limit has never been reached, this is considered a barrier-to-entry by the industry • The highest DR participation in the synchronous reserve market in a single hour to date was 22.3% in Mar 2012 – On 4/23/2012, in the Demand Response Subcommittee, PJM began the stakeholder process to alter the limit • Continued investigation into advanced technologies – Behind-the-meter energy storage devices (thermal, batteries) – “ Ultrabattery ” ultra-capacitor / lead-acid battery hybrid – Networked mobile electric vehicles providing regulation PJM©2012 www.pjm.com
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Demand Response in the Energy Markets • Day-Ahead and Real-Time Energy Markets – A resource that is consuming energy curtails its demand via Emergency Energy directives by Dispatch • On April 1 st , 2012, implemented FERC Order 745 – Supply-side offer curves for Economic DR participants – DR can set LMP, get paid full LMP for curtailments – Net Benefits Test • On May 14 th , 2012, FERC accepted PJM’s Price Responsive Demand (PRD) filing – Demand-side offer curves for Economic DR participants PJM©2012 www.pjm.com
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Performance Based Regulation • On May 17 th , 2012, FERC issued a ruling approving PJM’s Performance Based Regulation • Continuous, hourly performance scores for each regulating resource based on – Accuracy – Timeliness – Precision • Payment based on performance
AND
offered into the market MW PJM©2012 www.pjm.com
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Demand Side Participation in PJM
• Where we’ve been.
• Where we are.
• Where we’re going . . .
PJM©2012 www.pjm.com
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Changes in Registration Aggregation • In Winter 2011, PJM began the stakeholder process to address metering and grouping of Registrations – Registrations cannot use sub-metering for M&V – Registrations cannot group Locations across transmission zones, or resources > 100 kW – PJM Markets use offers at the Registration level • On April 2 nd , 2012, PJM filed with FERC to allow sub metering for Regulation M&V, effective June 1 st , 2012 – Also allows multiple CSP at same location, different devices • Aggregation currently being discussed in – Demand Response Subcommittee for Energy – Regulation Performance Senior Task Force for Regulation PJM©2012 www.pjm.com
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Coming Attractions • Implementing Performance Based Regulation – Scheduled for production on Oct 1 st , 2012 • Smart Meters & “Prices to Devices” – Price Responsive Demand Nodal Pricing • “Unrestricted” Load Forecasting – PJM predicts load using historical similar days, weather – Models will adjust for DR curtailing for Economics PJM©2012 www.pjm.com
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Fast Demand Response Opportunities
• Fast Demand Response can provide
– Price-sensitive Energy curtailments – Synchronous Reserve service – Frequency Regulation service
… any wholesale service that a generator can provide !
PJM©2012 www.pjm.com
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