Podcast
Questions and Answers
What is true about locational marginal pricing (LMP)?
What is true about locational marginal pricing (LMP)?
- LMP depends on the price of transmission rights. (correct)
- LMP is the same for all locations.
- LMP varies at different nodal prices. (correct)
- LMP does not account for congestion.
How do zonal prices operate compared to nodal prices?
How do zonal prices operate compared to nodal prices?
- Zonal prices can differ within zones but are the same across them. (correct)
- Zonal prices remain constant across all zones.
- Zonal prices are always lower than nodal prices.
- Zonal prices do not account for congestion.
What implications arise when all locational marginal prices are equal?
What implications arise when all locational marginal prices are equal?
- Congestion rent is used to fund congestion revenue rights.
- There is no congestion in the market. (correct)
- There is significant congestion in the market.
- All transmission rights are forfeited.
What does the formula for the price of transmission rights, Psink = Psource, represent?
What does the formula for the price of transmission rights, Psink = Psource, represent?
What does the FTR payoff represent?
What does the FTR payoff represent?
What is the relationship between power and energy in terms of their units?
What is the relationship between power and energy in terms of their units?
Which of the following best describes a primary customer in the electricity distribution system?
Which of the following best describes a primary customer in the electricity distribution system?
What is a potential negative impact of deregulation in the electricity market?
What is a potential negative impact of deregulation in the electricity market?
What is the function of substations in the electricity distribution system?
What is the function of substations in the electricity distribution system?
Which statement is true about regulated prices in electricity markets?
Which statement is true about regulated prices in electricity markets?
What is the definition of peak load in terms of electricity demand?
What is the definition of peak load in terms of electricity demand?
Which voltage levels are typical for secondary customers in the electricity distribution framework?
Which voltage levels are typical for secondary customers in the electricity distribution framework?
What does the term 'baseload' refer to in electricity demand?
What does the term 'baseload' refer to in electricity demand?
What is meant by 'obligation' in this context?
What is meant by 'obligation' in this context?
What initiates a response time of 3 to 5 seconds in this system?
What initiates a response time of 3 to 5 seconds in this system?
What describes regulation up?
What describes regulation up?
What is the primary function of spinning reserves?
What is the primary function of spinning reserves?
What is indicated by non-spinning reserves?
What is indicated by non-spinning reserves?
What is meant by the term 'ramp rate'?
What is meant by the term 'ramp rate'?
How long is the response time for spinning reserves?
How long is the response time for spinning reserves?
What does a service limit indicate?
What does a service limit indicate?
Which of the following countries is NOT associated with the specified regions in the context of the USA?
Which of the following countries is NOT associated with the specified regions in the context of the USA?
What percentage of Canada's renewable energy sector is comprised of hydro energy?
What percentage of Canada's renewable energy sector is comprised of hydro energy?
What is a significant challenge faced by smaller farms in the context of converting organic waste to methane-rich bio gas?
What is a significant challenge faced by smaller farms in the context of converting organic waste to methane-rich bio gas?
Which of the following companies is NOT listed as a key player in the solar energy market?
Which of the following companies is NOT listed as a key player in the solar energy market?
Which of the following statements about hydrogen production is accurate?
Which of the following statements about hydrogen production is accurate?
What is the primary function of baseload generators?
What is the primary function of baseload generators?
What does the capacity factor of a power plant indicate?
What does the capacity factor of a power plant indicate?
In electricity generation, what does 'heat rate' measure?
In electricity generation, what does 'heat rate' measure?
How does the Marginal Cost in an electricity system affect pricing?
How does the Marginal Cost in an electricity system affect pricing?
What is the primary purpose of a Day Ahead Market in electricity trading?
What is the primary purpose of a Day Ahead Market in electricity trading?
What results from a negative balance for a producer in the electricity market?
What results from a negative balance for a producer in the electricity market?
What is the role of network modeling in electricity systems?
What is the role of network modeling in electricity systems?
Which term refers to the financial aspects of electricity transmission rights?
Which term refers to the financial aspects of electricity transmission rights?
What is indicated by the term 'ancillary services' in electricity markets?
What is indicated by the term 'ancillary services' in electricity markets?
What does the 'settlement' process in real-time electricity markets involve?
What does the 'settlement' process in real-time electricity markets involve?
What does the term 'truth telling' refer to in generator offers?
What does the term 'truth telling' refer to in generator offers?
Which type of electricity market allows for last-minute adjustments to generation plans?
Which type of electricity market allows for last-minute adjustments to generation plans?
What do bilateral contracts in electricity markets involve?
What do bilateral contracts in electricity markets involve?
What could excessive reliance on a single type of electricity generation lead to?
What could excessive reliance on a single type of electricity generation lead to?
What is the primary purpose of the capacity margin?
What is the primary purpose of the capacity margin?
Which factor contributes to market power problems in an energy market?
Which factor contributes to market power problems in an energy market?
What does VOLL stand for in energy markets?
What does VOLL stand for in energy markets?
Which of the following describes a 'Peaker' in energy markets?
Which of the following describes a 'Peaker' in energy markets?
What is an investment barrier in combustion turbine markets related to?
What is an investment barrier in combustion turbine markets related to?
What does the term 'capacity market' refer to?
What does the term 'capacity market' refer to?
In which market does Alberta operate?
In which market does Alberta operate?
What is a characteristic of 'downtime' for generators?
What is a characteristic of 'downtime' for generators?
Which pricing concept reflects the maximum price consumers are willing to pay when experiencing a loss of electricity?
Which pricing concept reflects the maximum price consumers are willing to pay when experiencing a loss of electricity?
The price cap for Alberta is set at which amount?
The price cap for Alberta is set at which amount?
What is the role of economic withholding?
What is the role of economic withholding?
What is typically the relationship between energy prices and capacity auctions?
What is typically the relationship between energy prices and capacity auctions?
What is an expected outcome of adjusting operation reserves below 2000?
What is an expected outcome of adjusting operation reserves below 2000?
What is the main goal of regulation in electricity markets?
What is the main goal of regulation in electricity markets?
What is the main disadvantage of deregulation in electricity markets?
What is the main disadvantage of deregulation in electricity markets?
At what voltage levels do secondary customers typically operate?
At what voltage levels do secondary customers typically operate?
What do regulated price caps in electricity markets typically fail to reflect?
What do regulated price caps in electricity markets typically fail to reflect?
In electricity terminology, what does the term 'baseload' refer to?
In electricity terminology, what does the term 'baseload' refer to?
What is indicated by the peak load in the electricity market?
What is indicated by the peak load in the electricity market?
Which of the following represents the relationship between power and energy?
Which of the following represents the relationship between power and energy?
What is the purpose of a substation in the electricity distribution system?
What is the purpose of a substation in the electricity distribution system?
What condition results in all locational marginal prices (LMPs) being equal?
What condition results in all locational marginal prices (LMPs) being equal?
What distinguishes nodal prices from zonal prices in electricity markets?
What distinguishes nodal prices from zonal prices in electricity markets?
In the context of price of transmission rights, how is Psink defined?
In the context of price of transmission rights, how is Psink defined?
Which statement accurately describes the function of Congestion Revenue Rights (CRRs)?
Which statement accurately describes the function of Congestion Revenue Rights (CRRs)?
Which pricing model is primarily utilized in Alberta's electricity market?
Which pricing model is primarily utilized in Alberta's electricity market?
Which renewable energy source represents 83% of Canada's renewable energy sector?
Which renewable energy source represents 83% of Canada's renewable energy sector?
What is a major challenge smaller farms face when converting organic waste to methane-rich bio gas?
What is a major challenge smaller farms face when converting organic waste to methane-rich bio gas?
Which of the following companies is identified as a key player in the solar energy market?
Which of the following companies is identified as a key player in the solar energy market?
What percentage is projected for hydrogen production efficiency in the future?
What percentage is projected for hydrogen production efficiency in the future?
Which region currently has 23% wind energy representation?
Which region currently has 23% wind energy representation?
What is meant by 'regulation down' in the context of energy management?
What is meant by 'regulation down' in the context of energy management?
Which of the following most accurately defines spinning reserves?
Which of the following most accurately defines spinning reserves?
What does the term 'ramp rate' refer to in energy generation?
What does the term 'ramp rate' refer to in energy generation?
Which service is characterized by a fast response time of 3 to 5 seconds?
Which service is characterized by a fast response time of 3 to 5 seconds?
What is the main purpose of non-spinning reserves in an energy system?
What is the main purpose of non-spinning reserves in an energy system?
What characterizes the concept of regulation up?
What characterizes the concept of regulation up?
Which of the following describes an obligation in energy payment terms?
Which of the following describes an obligation in energy payment terms?
What does ancillary service limit refer to in energy regulation?
What does ancillary service limit refer to in energy regulation?
What is the main resource used for electricity generation in New Brunswick?
What is the main resource used for electricity generation in New Brunswick?
Which of the following best defines the 'capacity factor' of a power plant?
Which of the following best defines the 'capacity factor' of a power plant?
What does the term 'marginal cost' refer to in the context of electricity markets?
What does the term 'marginal cost' refer to in the context of electricity markets?
How is the heat rate of a generator defined?
How is the heat rate of a generator defined?
What is the correction mechanism applied during real-time electricity market operations?
What is the correction mechanism applied during real-time electricity market operations?
What does the term 'ancillary services' refer to in electricity markets?
What does the term 'ancillary services' refer to in electricity markets?
Which of the following accurately describes a Day Ahead Market?
Which of the following accurately describes a Day Ahead Market?
In the context of electricity pricing, what is 'truth telling'?
In the context of electricity pricing, what is 'truth telling'?
What do bilateral contracts in electricity markets entail?
What do bilateral contracts in electricity markets entail?
Which factor contributes to the capacity margin in electricity generation?
Which factor contributes to the capacity margin in electricity generation?
What is the primary role of network modeling in electricity systems?
What is the primary role of network modeling in electricity systems?
What is indicated by a negative balance for a consumer in the electricity market?
What is indicated by a negative balance for a consumer in the electricity market?
What is one consequence of using a sealed bid auction in electricity markets?
What is one consequence of using a sealed bid auction in electricity markets?
Which type of adjustments are made during the adjustment period in electricity generation?
Which type of adjustments are made during the adjustment period in electricity generation?
Which of the following descriptions best fits the concept of 'real-time market'?
Which of the following descriptions best fits the concept of 'real-time market'?
What does VOLL represent in energy markets?
What does VOLL represent in energy markets?
Which of the following describes a capacity market?
Which of the following describes a capacity market?
What limitation does Alberta's energy market condition impose?
What limitation does Alberta's energy market condition impose?
What is the likely impact of low energy price caps?
What is the likely impact of low energy price caps?
How does VOLL pricing differ from peak pricing?
How does VOLL pricing differ from peak pricing?
Which aspect characterizes economic withholding in a market?
Which aspect characterizes economic withholding in a market?
What is a characteristic of capacity margins in energy systems?
What is a characteristic of capacity margins in energy systems?
What is a primary reason for price caps in the energy market?
What is a primary reason for price caps in the energy market?
What does 'peaking pricing' imply for marginal cost adjustments?
What does 'peaking pricing' imply for marginal cost adjustments?
What could be a potential side effect of insufficient capacity in the market?
What could be a potential side effect of insufficient capacity in the market?
What is the relationship between operational reserves and market power in energy markets?
What is the relationship between operational reserves and market power in energy markets?
How are payments uplifted shared in energy markets according to the RUC?
How are payments uplifted shared in energy markets according to the RUC?
What defines locational marginal pricing (LMP) in relation to congestion?
What defines locational marginal pricing (LMP) in relation to congestion?
Under which conditions would all LMPs be equal?
Under which conditions would all LMPs be equal?
What is a characteristic of zonal pricing compared to nodal pricing?
What is a characteristic of zonal pricing compared to nodal pricing?
What is a direct consequence of having transmission rights for a consumer?
What is a direct consequence of having transmission rights for a consumer?
What does a congestion revenue right (CRR) primarily fund?
What does a congestion revenue right (CRR) primarily fund?
What does the regulation down process focus on in a power generation system?
What does the regulation down process focus on in a power generation system?
What is the primary role of spinning reserves in an electricity system?
What is the primary role of spinning reserves in an electricity system?
What is the significance of the ramp rate for a generator?
What is the significance of the ramp rate for a generator?
In the context of reserves, what differentiates non-spinning reserves from spinning reserves?
In the context of reserves, what differentiates non-spinning reserves from spinning reserves?
What does the term 'service limit' refer to in the context of generator operations?
What does the term 'service limit' refer to in the context of generator operations?
What triggers the Energy Emergency Alert (EA) in an electricity system?
What triggers the Energy Emergency Alert (EA) in an electricity system?
What aspect of regulation addresses the amount of available energy above the output level?
What aspect of regulation addresses the amount of available energy above the output level?
Which company is NOT recognized as a key player in the solar energy market?
Which company is NOT recognized as a key player in the solar energy market?
What is the typical response time for ancillary services to control signals?
What is the typical response time for ancillary services to control signals?
What is one of the significant challenges faced by smaller farms in converting organic waste to methane-rich bio gas?
What is one of the significant challenges faced by smaller farms in converting organic waste to methane-rich bio gas?
Which energy source currently provides the least percentage of Alberta's renewable energy sector?
Which energy source currently provides the least percentage of Alberta's renewable energy sector?
What is the current efficiency range of electrolyzers in hydrogen production?
What is the current efficiency range of electrolyzers in hydrogen production?
What does the heat rate indicate in power generation?
What does the heat rate indicate in power generation?
What is the purpose of regulation in the electricity market?
What is the purpose of regulation in the electricity market?
Which of the following is a characteristic of the Day Ahead Market?
Which of the following is a characteristic of the Day Ahead Market?
What does the capacity factor of a power plant represent?
What does the capacity factor of a power plant represent?
Which of the following voltage levels is typical for primary customers in the distribution system?
Which of the following voltage levels is typical for primary customers in the distribution system?
What does deregulation in the electricity market primarily aim to achieve?
What does deregulation in the electricity market primarily aim to achieve?
What is the purpose of the CRR auction?
What is the purpose of the CRR auction?
Which of the following represents a con of deregulation?
Which of the following represents a con of deregulation?
How are bilateral contracts characterized in electricity markets?
How are bilateral contracts characterized in electricity markets?
What is indicated by the negative balance for a producer in the electricity market?
What is indicated by the negative balance for a producer in the electricity market?
What do the terms 'peak load' and 'baseload' refer to in electricity demand?
What do the terms 'peak load' and 'baseload' refer to in electricity demand?
Which aspect is primarily evaluated in reliability within electricity systems?
Which aspect is primarily evaluated in reliability within electricity systems?
In the context of electricity generation, what would a regulated price cap typically not reflect?
In the context of electricity generation, what would a regulated price cap typically not reflect?
Which power measurement indicates energy usage over time?
Which power measurement indicates energy usage over time?
What does 'ancillary services' refer to in electricity markets?
What does 'ancillary services' refer to in electricity markets?
What type of auction is mentioned in relation to design and market competition?
What type of auction is mentioned in relation to design and market competition?
How does one megawatt relate to watts?
How does one megawatt relate to watts?
What is the function of network modeling in electricity systems?
What is the function of network modeling in electricity systems?
How does the marginal cost in an electricity system influence pricing?
How does the marginal cost in an electricity system influence pricing?
Which term refers to the adjustment made after electricity generation to meet varying demand?
Which term refers to the adjustment made after electricity generation to meet varying demand?
What role does the adjustment period play in real-time markets?
What role does the adjustment period play in real-time markets?
What is a characteristic of an energy-only market?
What is a characteristic of an energy-only market?
What is the main barrier to entry for combustion turbine investments?
What is the main barrier to entry for combustion turbine investments?
What does the term 'operating reserve' refer to?
What does the term 'operating reserve' refer to?
What distinguishes peaker pricing from VOLL pricing?
What distinguishes peaker pricing from VOLL pricing?
How is capacity margin calculated?
How is capacity margin calculated?
Which of the following price caps is the highest according to the discussed data?
Which of the following price caps is the highest according to the discussed data?
What is the main purpose of a capacity market?
What is the main purpose of a capacity market?
What strategy involves withholding resources from the market to affect price levels?
What strategy involves withholding resources from the market to affect price levels?
What do downward sloping demand curves generally indicate?
What do downward sloping demand curves generally indicate?
Which scenario describes 'deration'?
Which scenario describes 'deration'?
Which of the following markets has the lowest price cap?
Which of the following markets has the lowest price cap?
How is the 'value of lost load' estimated?
How is the 'value of lost load' estimated?
What does a higher VOLL imply for consumers?
What does a higher VOLL imply for consumers?
Flashcards
Electricity Generation
Electricity Generation
The process of creating electricity from various sources, such as power plants.
Electricity Transmission
Electricity Transmission
The transportation of electricity over long distances using high-voltage lines.
Electricity Distribution
Electricity Distribution
The delivery of electricity from transmission lines to consumers.
Peak Load
Peak Load
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Base Load
Base Load
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Watt (Power)
Watt (Power)
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Energy (Joules)
Energy (Joules)
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Electricity Regulation
Electricity Regulation
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Locational Marginal Pricing (LMP)
Locational Marginal Pricing (LMP)
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Nodal Prices
Nodal Prices
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Zonal Prices
Zonal Prices
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Congestion Rent
Congestion Rent
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Transmission Rights (FTR)
Transmission Rights (FTR)
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Quantity Obligation
Quantity Obligation
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Ancillary Services
Ancillary Services
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Spinning Reserves
Spinning Reserves
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Non-Spinning Reserves
Non-Spinning Reserves
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Ramp Rate
Ramp Rate
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Service Limit
Service Limit
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Dispatch Limit
Dispatch Limit
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Energy Emergency Alert (EA)
Energy Emergency Alert (EA)
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Baseload generators
Baseload generators
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Hydro Generation
Hydro Generation
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Nuclear Generation
Nuclear Generation
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Coal Generation
Coal Generation
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Natural Gas Generation
Natural Gas Generation
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Electricity Frequency
Electricity Frequency
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Voltage
Voltage
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Marginal cost
Marginal cost
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Heat rate
Heat rate
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Capacity factor
Capacity factor
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Day-Ahead Market
Day-Ahead Market
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Real-time market
Real-time market
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Reliability
Reliability
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Methane-rich biogas
Methane-rich biogas
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Waste conversion
Waste conversion
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Canadian Solar
Canadian Solar
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Hydropower in Canada
Hydropower in Canada
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Wind Energy in Alberta
Wind Energy in Alberta
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LSL
LSL
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HDL
HDL
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LDL
LDL
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RUC Payments
RUC Payments
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Price Caps
Price Caps
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Market Power
Market Power
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Combustion Turbine
Combustion Turbine
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Combined Cycle Turbine
Combined Cycle Turbine
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Forced Outage
Forced Outage
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Capacity Margin
Capacity Margin
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VOLL (Value of Lost Load)
VOLL (Value of Lost Load)
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Transient Local Shortage
Transient Local Shortage
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Peaker Pricing
Peaker Pricing
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Operation Reserve
Operation Reserve
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Regulation in electricity
Regulation in electricity
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Deregulation in electricity
Deregulation in electricity
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Main Electricity Sources in Canada
Main Electricity Sources in Canada
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What's North American Frequency?
What's North American Frequency?
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Voltage: Electrical Pressure
Voltage: Electrical Pressure
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Total Cost of Electricity
Total Cost of Electricity
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Truth Telling in Auctions
Truth Telling in Auctions
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Submarkets in Electricity: Real-Time and Day-Ahead
Submarkets in Electricity: Real-Time and Day-Ahead
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Day-Ahead Market Function
Day-Ahead Market Function
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Bilateral Contracts
Bilateral Contracts
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Two-Settlement System
Two-Settlement System
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Compare operation reserve and VOLL
Compare operation reserve and VOLL
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Power Plant Types
Power Plant Types
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Peak Load vs. Base Load
Peak Load vs. Base Load
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Electricity Grid Levels
Electricity Grid Levels
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Deregulation: Pros & Cons
Deregulation: Pros & Cons
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Regulation: Price Caps
Regulation: Price Caps
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Energy vs. Power
Energy vs. Power
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North American Frequency
North American Frequency
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Electricity Submarkets: Real-time and Day-ahead
Electricity Submarkets: Real-time and Day-ahead
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Design Bids vs. Auction Prices
Design Bids vs. Auction Prices
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Operation Reserve and VOLL
Operation Reserve and VOLL
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Study Notes
Electricity Final
-
Electricity Flow: Upper stream (generation), Middle stream (transmission), Downstream (distribution). Power plants transmit to substations, then to distribution, finally to customers (primary and secondary). Different voltage levels are used at different stages (e.g., 120V/240V for homes, 13kV and 69kV for transmission).
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Regulation: Aims to prevent monopolies and overcharging. However, regulated price caps may not accurately reflect supply and demand, potentially leading to underregulation where all prices are at regulated rates.
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AESO and IESO: Alberta Electricity System Operator (AESO) and Independent Electricity System Operator (IESO) in Ontario are examples of governing bodies.
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Deregulation Pros and Cons: Pros include cost minimization incentives, marginal cost pricing, and market pricing. Cons include price fluctuations and congestion.
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Power Calculation: Power (watts) = Energy (joules) ÷ Time (seconds).
Unit Conversions
- Units: 1 kilowatt (kW) = 1000 watts (W), 1 megawatt (MW) = 1000 kW, 1 gigawatt (GW) = 1000 MW, 1 terawatt (TW) = 1000 GW.
Electricity Demand
- Peak Load: High demand.
- Base Load: Minimum demand to meet.
Electricity Generation
- Electricity Generation Sources: Hydro, nuclear, coal, and natural gas.
Power Frequency
- Frequency: Rate of current alternation. North American frequency is 60 Hz.
Voltage
- Voltage: Electrical pressure pushing the current.
Marginal Costs in Electricity Market
- Operating Costs: Heat rate (efficiency of a generator using heat content in BTU), Capacity factor (actual output to max possible output), Total cost (heat rate x gas price x 0.8m cost).
- System Costs: Design for competitive prices (auction), Sealed bid auction to increase competition, Truthful generator offers marginal costs, Submarkets for better functioning and reliable real time market.
Electricity Market Operations
- Registration: Suppliers register to take part.
- Network Modelling: Analysis of grid behavior.
- CRR auction: Auction to receive payments when congestion occurs.
- Day Ahead: Submit offers for electricity.
- Reliability: Enough generation capacity to meet demand.
- Adjustment period: Adjustments to generation/consumption plans.
- Real time: Active energy supply to customers.
- Settlement: Parties' payment/charges based on transactions.
- Real Time: Physical reliability and penalties (contracts), Day ahead (financial, one day ahead of real time, voluntary), Ancillary (stability, demand = supply, reliability in day ahead, physical) and Transmission rights (financial, arbitrage, hedging annually, monthly, or weekly). Capacity (physical, financial, annual, monthly).
Bilateral Contracts and Settlement System
- Bilateral Contracts: Contracts signed between parties privately.
- Two Settlement System: Forward market converges with real time, reducing gaming issues and price convergence in the market. Balance for producers and losses are considered.
- Revenue Calculation: Revenue = (Q x P₁) + ((Q₂−Q₁) x P₂) (showing a two-part pricing structure).
- Locational Marginal Pricing (LMP): Pricing based on nodal locations, can vary across locations, but prices can be the same within zonal areas (specified).
Transmission Rights
- FTR payoffs: Based on difference between transmission locations, providing payment/receipts to consumers.
- Obligation: Payments/receipts independent of whether paid/received.
- Options: Not needing to get paid/pay out.
- Acquiring Transmission rights: Auctions, special allocations, bilateral trades, frequency, annually, monthly or day ahead.
- Ancillary services: responding to controls in 3-5 seconds. Regulation in amount up/down (above/below highest or lowest sustainable level).
Spinning and Non-Spinning Reserves
- Spinning Reserves: Resources that help restore system frequency (provided by online resources) in 10 minutes.
- Non-Spinning Reserves: Longer response time but can do it in 30+ minutes (offline).
- High/Low Sustained Limit (HSL/LSL): High/low sustained limit.
- High/Low Ancillary service limit (HASL/LASL): High/low values.
- Ramp rate: How quickly a generator changes output.
- High/Low Dispatch Limit (HDLE/HASL): High/low dispatch limit.
- Operating Point: Mathematical calculation for a specific moment.
Reliability Unit Commitment
- Ensuring Capacity: Enough capacity to meet predicted demand.
- RUC Payments: Cost shared by all consumers.
- Alberta's Energy Market type: Energy only market.
- Price Caps: Varies per location (ERCOT in USA, Australia, Netherlands, and Alberta). Includes the concept of weakness in the markets.
- Market concerns: No price elasticity of demand, price set by supply and market power problems are noted as concerns.
Capacity and System Issues
- Capacity Issues: planned and unplanned outages (maintenance and unforeseen problems), generation deration (intentional or unintentional power output reduction based on issues/demands).
- Reserve Margin: Difference between total supply and predicted peak demand per time load.
- VOLL (Value of Lost Load): The amount a customer is willing to pay for electricity when supply is lost. VOLL pricing is a regulatory constraint in the market.
Price Caps and Market Pricing
- Price Caps: Caps on pricing based on location variations.
- Market Pricing: Based on supply/demand balance, includes transient local shortages and peakers allowed to use marginal costs (starting up costs). Downward sloping of pricing for scarcity and non regulatory operation reserve pricing are described in market circumstances.
- Real Time Pricing: Helps with load-shedding problems (when reserve drops below a certain threshold, immediate adjustments happen), and reserve pricing are explained.
Market Power
- Market Power Issues: ability to alter prices outside competitive levels.
- Strategies: Physical withholding, economic withholding, and the impact on market prices.
Energy Source Groups
- Geothermal: consolidated in some areas.
- Agriculture: converting organic waste to methane/biogas for waste and environmental control for smaller farms.
- Solar: Canadian based solar players make up a significant portion of Canada's renewable energy.
- Hydro: Important source of renewable energy (83% of Canada's renewables).
- Wind: 23% of Alberta's wind sources are noted in the text and problems with access.
- Hydrogen: Electrolysis-based production, current generation, and projections for future growth are summarized. Germany is cited as making a financial commitment.
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Test your knowledge on locational marginal pricing, zonal and nodal prices, and the implications of equal locational marginal prices in electricity markets. Explore key concepts such as transmission rights, customer classifications, and the roles of substations. Delve into the effects of deregulation and understand the definitions of peak load and baseload.
