Demand Response Auction (SE-DR)

Transcription

1 Demand Response Auction () Minutes of Meeting Date held: October 1, 2014 Time held: 1:00 pm 4:00 pm Location held: Toronto Congress Centre Invited/Attended Company Name Attendance Status (A)ttended; (T)eleconference Fonger, Jim Ameresco A Mortage, Hamza AMPCO A Wu, Julien Brookfield Renewable Energy Group A Villegas, Gabriel Bruce Power A Chihata, Bill City of Toronto A Morris, Richard City of Toronto A Koff, Chaim City of Toronto T Dobson, Jonathan Conestoga Cold Storage A Scott, Trevor Conestoga Cold Storage A Chintapalli, Raj Customized Energy Solutions T Tinkler, Mark Customized Energy Solutions A Wang, Cynthia Delta Energy LLC T Silva, Carlos Enbala A Jayaraman, Jay Enbridge A Pieniazek, Marie Energy Curtailment Specialists Inc. A Griffiths, Sarah EnerNOC, Inc. A Paul, Rob Goreway Station Partnership T Martell, Ed Holcim (US) Inc. T Plante, Matthieu HQ Energy Marketing Inc. A Yakupova, Kelima London Economics T Ronson, Peter Markham District Energy T Kersman, Paul Ministry of Energy A Qureshi, Musab Ministry of Energy A Tuck, Jennifer NextEra Energy Canada, ULC A DiRuscio, Carmine NRG Matters Corp. A Gibbons, Jack Ontario Clean Air Alliance A Brown, David Ontario Energy Board A Chen, Simon Ontario Power Authority A Byers, Darren Ontario Power Authority A McNally, Julia Ontario Power Authority A Peterson, David Ontario Power Generation A Kuriychuk, Michael Pathchoice Energy Consulting Inc. A October 28, 2014 Public Page 1 of 5

2 Date held: October 1, 2014 Time held: 1:00 pm 4:00 pm Location held: Toronto Congress Centre Invited/Attended Company Name Attendance Status (A)ttended; (T)eleconference Cumming, Alison Power Advisory LLC A Burnham, Steve RBC Capital Markets T Doolittle, Robin RBC Capital Markets T Degelman, Cara Resolute Forest Products A Langill, Jane Rodan Energy Solutions Inc. T Ingram, Rachel Rodan Energy Solutions Inc. A Dudka, Marko Rodan Energy Solutions Inc. A Grod, Paul Rodan Energy Solutions Inc. T Kerr, Paul Shell Energy T Soufi, Safouh SMS Energy Engineering A Hilbig, Tom Sygration A Laflamme, Serge Tembec A Clarke, Alan The New Energy Group A Nguyen, Thanh TransAlta T Kuntz, Margaret TransCanada A Lithgow, Michael The Regional Municipality of York A Alford, Mike Z3 Controls Inc. A Backman, Karen IESO T Bruno, Juliana IESO A Campbell, Alexandra IESO T De Matos, Nuno IESO A Dow, Andrew IESO T Drake, Gordon IESO A Grbavac, Jason IESO A Harrison, Susan IESO A Kwok, Jason IESO A Murray, Patricia IESO T Wright-Hilbig, Rhonda IESO A Scribe: Brennan Louw, Market Development Advisor, IESO Please report any corrections, additions or deletions to scribe. All meeting material is available on the IESO web site at: October 28, 2014 Public Page 2 of 5

3 This was the first meeting of the Demand Response (DR) Auction Stakeholder Engagement. The session introduced how the auction would be developed, proposed a number of design features, and gave stakeholders an opportunity to provide input on the specific elements introduced. Item 1 Welcome Remarks Susan Harrison and Brian Rivard of the IESO welcomed attendees to the session. Introductory remarks included an update on the IESO s progress with DR to date and comments on how development of the DR Auction and Capacity Auction would be occurring in parallel. Best efforts will be made to align the two initiatives but, at times, different solutions for each may be most appropriate. Item 2 Presentations Gordon Drake of the IESO presented on timelines for the stakeholder engagement. The presentation highlighted the need for regular SE meetings throughout the fall of 2014 in order to move to the design and implementation phase in January Jason Kwok and Juliana Bruno of the IESO presented on a number of the design elements to be included in the DR Auction. Presentations focused on the MW target, participant authorization, and capacity qualification for the DR Auction. Gordon Drake of the IESO presented on DR Auction reports. The presentation outlined the type of information that would be included in both pre- and post-auction reports. Stakeholder Questions and Comments, with IESO responses in italics: An attendee asked how DR Auction design elements will align with the Capacity Auction stakeholder engagement. The IESO responded that the DR Auction will be designed based on the same principles as the Capacity Auction but with a unique DR-specific perspective. In some cases the approach taken in the DR Auction will differ from the Capacity Auction. An example of this is the forward period. In the DR Auction a forward period can be chosen to meet DR-specific requirements while in a Capacity Auction the forward period will consider all resource types. The internal DR Auction and Capacity Auction design teams are working closely together to coordinate their efforts. An attendee asked if DR resources that clear in the auction would be paid the price at which they bid or the price at which the auction clears. The IESO indicated that cleared resources will receive the same auction clearing price unless there are locational constraints. October 28, 2014 Public Page 3 of 5

4 An attendee asked if the DR Auction will continue after the Capacity Auction and how DR Auction elements might be incorporated into the Capacity Auction. The IESO responded that once the Capacity Auction is in place, the DR Auction will not continue and DR resources will move into the Capacity Auction. The Capacity Auction will consider what is developed in the DR Auction as a starting point but design elements may ultimately differ between the two. An attendee asked how the Long-Term Energy Plan target for DR is reflected in the Capacity Auction. The IESO responded that the Long-Term Energy Plan target for DR is 10% of peak demand and that this target was set based on the expected competitiveness of DR in meeting system needs. With the DR Auction the cost curve for DR will continue to be bent and we will move away from a proscribed quantity to a more competitive process. An attendee asked how new aggregators will enter the auction process and what type of information they will need to provide. The IESO answered that the process will be similar for new or existing aggregators which will both need to provide data on the loads that will be included in their portfolios. While new entrants will be welcomed, eligibility requirements will be established to provide reasonable assurance that a resource can provide the capacity to which it has committed. An attendee asked how resources that clear in the DR Auction will participate in the energy market. The IESO responded that resources that clear in the auction will be required to participate in the energy market. Revenue from the DR Auction will provide an availability-type payment and resources will offer into the energy market and operating reserve market at a price that will allow them to be effectively dispatched relative to other resources. How DR resources will participate in the energy market will be discussed in more detail in meeting 3. An attendee asked if there will be a minimum requirement for what a resource can bid into the DR Auction. The IESO indicated that there will be a minimum size to participate in the auction, the size will be specified later in the design process, and stakeholder feedback on this question would be welcome. An attendee asked if a baseline methodology has been defined yet and if it will be the same as the DR3 baseline. The IESO responded that a baseline has not yet been set. The topic will be discussed at a later meeting and the DR3 baseline will provide a starting point for considering the appropriate methodology. October 28, 2014 Public Page 4 of 5

5 An attendee asked how a resource s response time might be reflected in the DR Auction. The IESO answered that the DR Auction will not consider operational characteristics. The purpose of the auction is to procure capacity not ramp ability. While ramp ability certainly has value it should be reflected in other markets not through DR Auction capacity payments. Participants will need to consider all potential revenue streams when establishing an offer price for the DR Auction. An attendee asked how potential shorter response times for automated dispatchable load are being considered. The IESO responded that DR pilot programs are looking at load response on different timelines. Learnings from those programs will be incorporated into future auctions. Item 3 Wrap up and Next Steps Susan Harrison of the IESO thanked members for their participation and noted that, given the tight timelines for the engagement, the IESO s goal is to provide materials by three days before meetings. October 28, 2014 Public Page 5 of 5