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RampCapabilityProductCostBenefitAnalysis
June2013
NivadNavid,GaryRosenwald,ScottHarvey,RyanSuttonandCongcongWang
TheMISOisexpectedtorequireadditionalflexibilityindispatchablegenerationtoaddressincreasing
volatilityinthenetload(loadminusnetinterchange minusintermittentresourceoutput)thatmustbe
metwithdispatchableMISOgeneration.Thevolatility
mayarisefrombusinessrulechangessuchas
shorterleadtimeforinterchangescheduling(ormoregranularinterchangescheduling)and/orchanges
intheloadorgenerationfleetsuchasanincreasingproportionofintermittentresources.Someofthe
impactsofthisincreasingvolatilityinnetloadonenergyand ancillaryservice
marketswillincludethe
dispatchofhighcostgenerationresources,instancesofreservescarcity,andincreaseduseof
regulation,whichwillbereflectedinpricespikes.
WithintheMISOmarketdesign,theintroductionoframpcapabilityproductscanprovideanattractive
approachtoobtainingneededoperationalflexibilityatalower
costthanotheralternatives,providing
bothmarketandreliability benefits.Benefitstothemarketincludethefollowing:
Reducedfrequencyofres erveshortagesortransmissionviolations,
Lessneedtodispatchhighcostresources;
AvoidedcostofuneconomicCTcommitmentstoprovideramp
Reducedneedforadhocoperator
actionssuchasRTadjustmentsintheUDSOffsetMWandCT
commitmentprovidingincreasedconsistencyofmarketresults
Transparentpricingandincentivesforthesupplyoframpcapability
Rampproductsalsoprovidebenefitsfor systemreliability:
Systematicmechanismtospecifyandprocuretherampcapabilityneeded
torespondtonear
real‐timechangesinsystemrequirements
Provideenhancedincentivesforresourcestoproviderampcapability
Avoidedand/orreducedcostofreserveshortages(orpotentiallytransmissionviolations)
Reducedneedforoperatorinterventioninroutinereal‐timemarketoperations,freeing
operatortimetofocuson
otherissues
Thispaperfocusesonquantifyingthemonetaryimpactsoftherampproducts.Aseriesofexamplesand
simulationcasesillustratedifferentsourcesofpotentialsavings.Someexamplesusesmalldatasetsto
illustratethewayinwhichtherampproductsareintendedtoworkwhileothersreporttheresults
of
simulationscarriedoutdispatchinggenerationovertheentireMISOfootprinttosimulatetheoperation
oftherampproductsoveranhistoricaloperatingday.Theexamplesaredesignedtoillustratespecific
sourcesofthepotentialsavingsandnoneofthemfullycoverthealloftheimpactsinasingle
example.
Tohelpdescribetheimpactinvestigatedintheexamples,themonetaryimpactsarebrokendowninto