Keep
in mind that when the ISO's refer to price interval in their reports and
analysis documents, they are referring to a monetary interval rather than a time
based interval. In other words, there is a $15 price interval between an
LMP of $45/mwh and $60/mwh. Most usage in analysis is asks questions like
"at what price interval do large facilities respond to DR signals". These
kinds of studies influence incentives and subsidies, and may inform rate making
in regulated constructs. However, in the markets, the actual prices
themselves are known well in advance of Dr events since they are set at
auctions.
When
modeling/forecasting for grid operations, the ISO's will use this research to
determine the likelihood of calling an event and the cost of that event, given
weather predictions at various degrees of confidence (of the weather).
Because of the usage, I would reverse the wording somewhat; i.e., that for a
given time interval, there should be a price associated with it.
Recipients would use this data, especially in automated systems either to auto
respond or to signal managers if prices exceeded a pre-set
level.
This
happens to be a period of rapid rules change following a relative period of
stability. Predictions are troublesome at best, but there seems to be a
national trend toward eliminating specific pricing for DR, and paying all
parties the generation equivalent of the energy product produced. this is
not without controversy, so our wisest course might be to allow for showing
prices for DR and for the underlying energy. This would support a value
calculation that encompasses both the overt value of DR plus the value of the
avoided purchase of energy for the same time interval.
Phil
Davis
________________________________________________________________________________________________
Phil
Davis | Senior Manager | Schneider Electric Demand Response
Resource Center | 3103 Medlock
Bridge Road, Ste 100 | Norcross,
GA 30071 | (: 404.567.6090 | 7: 678.672.2433 | Skype:
pddcoo *: | : Website: http://www.schneider-electric.com
From: Girish Ghatikar [mailto:]
Sent: Friday, April 02, 2010 8:06 PM
To:
Subject: [emix] Definition of a "Price
Interval"
This came up during last
week's eMIX TC meeting -- What is the definition of price interval? What
elements/attributes are comprised in it?
For any price, there should
be a standard "Time" factor associated with it (unless the exception is there is
"one" price for all periods).
I think we should make a key distinction
of price schedule versus the interval (if we ever can) and how the generic price
intervals are different from their definition in DR signals (the notion of DR
events).
Let's say for example, a price-responsive DR event in OpenADR
may look something like this (I am not saying this is how eMIX should address it
as the goal of sending the information and subsequent response may differ) --
<p:drEventData>
<p:notificationTime>2010-02-08T15:17:21.000-08:00</p:notificationTime>
<p:startTime>2010-02-09T00:00:00.000-08:00</p:startTime>
<p:endTime>2010-02-09T23:59:59.000-08:00</p:endTime>
<p:eventInfoInstances>
<p:eventInfoTypeID>PRICE_ABSOLUTE</p:eventInfoTypeID>
<p:eventInfoName>price</p:eventInfoName>
<p:eventInfoValues>
<p:value>0.03638841</p:value>
<p:timeOffset>0</p:timeOffset>
</p:eventInfoValues>
</p:eventInfoInstances>
</p:drEventData>
What you see above is a definition of time slot
(start and end time) that has various attributes associated with it. Other
attributes could be for example, load shed, % shed, etc. However, all of these
attributes are associated with one time-slot notion, which is defined by the
period of DR event.
Thank you,
RIsh
--
Rish Ghatikar
Lawrence Berkeley
National Laboratory
1 Cyclotron Road, MS: 90-3111, Berkeley, CA
94720
| +1 510.486.6768 |
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