Request for Information – Non-emitting Resources Webinar and information session December 21, 2017
Agenda • This presentation outlines the Non-Emitting Resource Request for Information (RFI) and how it interacts with Market Renewal and the work of the Non-Emitting Resource Subcommittee (NER-SC). • The presentation provides detail on: – Background and update on Market Renewal – The MRWG and NER-SC roles – Alignment between the RFI and the MRWG and NER-SC – The roll-out and processes related to the RFI – Initial outline of the type of questions anticipated in the RFI 2
Market Renewal Background 3
What is Market Renewal? • Market Renewal is the most ambitious set of enhancements to Ontario’s electricity market design since our market opened in 2002. It will: – Address known issues with our existing design and deliver ratepayer value by meeting system needs more cost- effectively. – Deliver a market place that will send transparent price signals to meet different system needs. • Market Renewal will put in place a foundation to manage a range of potential energy futures driven by decentralisation, digitisation and decarbonisation 4
MRP Mission and Guiding Principles The IESO has worked closely with stakeholders to develop an agreed upon mission and set of principles for Market Renewal Mission 5
Market Renewal initiatives • Market Renewal is setting the foundation for the future market where all streams together will provide incentives for existing and new resources, rather than one single tool or program Work Stream Primary Objective Initiatives • Single Schedule Market (SSM) Energy Reduce cost and gain • Day-Ahead Market (DAM) efficiency scheduling energy • Enhanced Real-Time Unit to meet provincial demand Commitment (ERTUC) • Capacity Reduce cost of procuring Capacity Trade (CT) • Incremental Capacity Auction resources to meet long-term (ICA) demand 6
Stakeholder engagement structure Substantial consensus 7
Market Renewal Status Update • Making progress on SSM and ICA design options and decisions but time remains for analysis and discussion before final decisions are made • The capacity export and enabling system flexibility engagements have also been integrated into Market Renewal to ensure a cohesive approach across initiatives 8
The Future Market • Building on the foundation set by Market Renewal, all resources should have the opportunity to compete, and will earn more or less revenue depending upon how they can meet what the system needs Future Market Digitisation Decarbonisation Decentralisation Market Renewal
The Future Market and Clean Energy Policy • Market Renewal can work seamlessly with additional market mechanisms to support low carbon resources • Competitive market-based mechanisms will ensure these policy goals are met in the most cost-effective and innovative manner ⁻ Like Cap and Trade, there is an opportunity to create greater harmonisation with other markets to allow for trading Cap and Trade Cap and Trade is an efficient mechanism to meet carbon REC Market goals. Many other mechanisms can be RPS Policy explored to work Clean Energy Auctions alongside cap and trade and market Tax Credits renewal. Other options TBD 10
Defining the Market Renewal Program The Future Market Initiatives Market in advance Renewal Other Market- of MRP Program Important and based Products strategic opportunities Intertie Interim for IESO to advance Scheduling Flexibility/ and renew the entire Evolved Roles & Permanent for DER/LDC market and sector, but Flexibility Operating not part of the current Product Reserve Changes scope for the Market Environmental (TBD) Renewal Program Attributes Single Market Schedule, Day-Ahead MRP lays the Flexibility & Market, foundation for Ancillary These mechanisms Real-time a renewed Market ; Services will likely have to Unit without these continue to be Commitment changes, IESO will enhanced even after Energy Market continue to have to MRP is done to keep DR Auction use inefficient tools Capacity pace with the changes Enhancements & Capacity to adapt to changes Auction in the sector Capacity Exports Product and implement policy 11
Market Renewal Working Group and Non-Emitting Resources Subcommittee 12
Role of the MRWG • The MRWG works alongside the IESO to ensure that initiatives identified under market renewal are progressing • Ensure that the initiatives are developed, designed, and Project delivery implemented in an effective and timely manner • Provide advice and guidance on issues that may arise Expertise through market renewal engagement initiatives • Help address strategic and seams issues associated with Issue resolution design changes and implementation proposals • Help ensure effective coordination and integration of Coordination market renewal engagements and Work-streams • Assist with communicating developments and issues to Communication stakeholders and other interested parties to help support transparency 13
Relationship between MRWG and NER-SC Technical knowledge MRWG The NER-SC will provide the technical expertise needed to help inform strategic (Strategic discussions on Market Renewal at the MRWG discussions) Research / Analysis Scope management Scope The MRWG will support the work of the NER-SC by providing a scope for research and discussion around non-emitting resources Feedback NER-SC NER-SC work will be brought back to MRWG for their consideration and (Technical feedback discussions) 14
NER-SC Scope and objectives The Non-Emitting Resource Subcommittee will: 1. Ensure the unique characteristics of non-emitting resources are appropriately reflected in the Market Renewal design 2. Begin to identify how Ontario can build upon the foundation established by Market Renewal to prepare for the system of the future The NER-SC scope of work falls into three main categories: Participation will look at the future integration and Participation barriers to participation for non-emitting resources in the proposed Market Renewal design scope Market Market Efficiencies will look at market impacts associated with higher levels of non-emitting resources Efficiencies with very low to zero marginal costs Commercial Mechanisms will look at the pros and cons Commercial as well as the potential need for additional incentive Mechanisms mechanisms to value environmental attributes and support net zero / low carbon emission facilities 15
RFI and NER-SC Alignment • Phase 1 of the RFI is intended to support the work of the NER-SC; Phase 2 will inform the next steps that follow from the work of the NER-SC • The timelines below are approximate; the information requested and timelines for each phase will be finalized with stakeholder input Q1 Q2 Q3 Q4 2019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 Participation NER-SC - Phase 1 NER-SC - Phase 2 Market Efficiencies Incentive Mechanisms NER-SC - Phase 2 Initial Technical Component RFI - Phase 1 Activities RFI - Phase 2 Activities Detailed Technical, Project, Costing component NER-SC Milestones Technical NER-SC Report to conference MRWG RFI Milestones Issue Phase 1 of RFI - IESO response Issue Phase 1 submission Phase 2 submission IESO response to Target week coomencing to phase 1 Phase 2 of deadline deadline phase 2 submissions 29 Jan submissions RFI 16
Non-Emitting Resources RFI 17
Request for Information (RFI) Objectives • The Request for Information (RFI) will inform the IESO on a broad level, and in specific support Market Renewal and the work of the Non-Emitting Resource Subcommittee (NER-SC) • The RFI will provide information on new projects and upgrades to existing resources with a focus on the potential technical and commercial aspects and how they will participate in the market to help meet present and future system needs • The aim is to establish a two phase RFI and conclude the process within a year – Phase 1 supports the Market Renewal Program – Phase 2 focuses on the broader considerations of non-emitting resources 18
RFI Phase 1 – Market-based Information • Phase 1 will focus on supporting Market Renewal by gathering information from non-emitting projects at various stages of development to understand – the products and services they can provide – and the potential barriers to their participation in the market • Requested information will include, but not be limited to: – Project information and operating characteristics – What electricity products and services can/could your asset provide? – What technical considerations need to be taken into account in order to deliver identified products and services? – From an operations perspective how do you see your asset participating in the renewed market design (e.g., day ahead and real time energy, capacity, and other essential reliability and operability services)? – Are there identified/potential barriers to your participation in the market design being contemplated? • Phase 1 expected to be launched in February 2018 19
Recommend
More recommend
