Ancillary Services Fundamentals and Markets Dynamics
Live Streaming Online September 22-23, 2022
A BankWebinars.com Program
Click Here to register $1195
If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event
The emergence of renewable and variable energy resources has drawn attention to the supplemental services — as a group, known as ancillary services – that bulk power systems and balancing areas require to ensure grid stability.
This course is perfect primer for power industry personnel who need to have a better understanding of what ancillary services are, how they are competitively procured, how they are scheduled, as well as how and when they are called upon by ISOs and other bulk power systems. It will explain the functions performed by each ancillary service with a focus on the real-power services. The program will also provide an in-depth treatment of several features of ancillary services, regulation and reserve market design. And, it will explain in depth the complex market design approaches to scheduling, pricing and bidding these services.
Learning Outcomes
- Identify what ancillary services are and why the power system needs them
- Discuss what is required to provide ancillary services, regulation and reserve products
- Examine what the cost drivers are for ancillary services, regulation and reserve products
- Assess the reasons that co-optimization of energy and ancillary services is becoming a standard feature of wholesale power markets and how they function
- Examine the relationship between ramp constraints, regulation shortage prices, price variability, and the returns to being on dispatch
- Identify the options of faster ramp and more accurate provision of regulation
- Identify how the increasing penetration of renewable energy, storage and distributed energy resources influence the need and provision of ancillary services, regulation and reserve products
- Interpret FERC Orders and other actions that affect ancillary services, regulation and reserve markets
- Address participation challenges in the ancillary services, regulation markets and reserve markets
- Evaluate ancillary services, regulation and reserve products’ cost, value and bidding approaches
- Examine the need for inertia, virtual trading and other new ancillary services, regulation and reserve products, services and pricing models
- Analyze and understand how the development of demand ancillary services regulation and reserve products is related to the level of price caps and the introduction of meaningful shortage pricing
Agenda
THURSDAY, SEPTEMBER 22, 2022
9:00 a.m. – 4:45 p.m. Central Time
9:00 – 9:15 a.m. :: Overview & Introductions
9:15 – 10:15 a.m. :: Context for Emergence & Importance of Ancillary Services
- Shift from centralized to distributed power system
- Accelerating penetration of intermittent and variable renewable energy resources
- Prosumerism and user preference for green energy
- Customer
- Commercial
- Government
- Policy drivers
- Renewable portfolio standards
- De-carbonization
- Economic drivers
- LCOE reductions in renewable energy
- Shift in marginal cost of energy in market regimes
- Retirement of baseload power
10:15 – 10:30 a.m. :: Morning Break
10:30 a.m. – 12:15 p.m. :: Ancillary Services Basics
- Background / Who is in control
- What Are Ancillary Services (AS)?
- Reliability Performance Requirements
- Normal Conditions
- Frequency Regulation
- Load Following
- Energy Imbalance
- Contingency Conditions
- Frequency Response
- Supplemental Reserves
- Other Ancillary Services
- Voltage Control and Reactive Supply
- Black Start
- Scheduling, System Control and Dispatch
- Impact of FERC Orders
12:15 – 1:00 p.m. :: Lunch Break
1:00 – 2:45 p.m. :: Ancillary Services Basics (continued)
- Sources of Ancillary Services
- Generation
- Energy Storage
- Demand Response
- Synthetic
- Comparison of Ancillary Services Across All ISOs
- California ISO
- ERCOT
- ISO New England
- Midcontinent ISO
- New York ISO
- PJM Interconnection
- Southwest Power Pool
2:45 – 3:00 p.m. :: Afternoon Break
3:00 – 4:45 p.m. :: Current Trends in Ancillary Services
- Trends in Ancillary Services
- Impact of FERC orders
- Impact of State Initiatives (New York, California)
- Texas and ERCOT-specific AS conditions, initiative and outcome
- Impact of Variable Energy Resources (wind and solar)
- Aggregated supply from Distributed Energy Resources
- Shifts in resource ownership and offerings
- Multiple services possibilities and practicalities
4:45 pm :: Program Adjourns for Day
FRIDAY, SEPTEMBER 23, 2022
9:00 a.m. – 12:30 p.m. Central Time
9:00 a.m. 10:30 p.m. :: Overview of Ancillary Services, Regulation and Reserve Products in Wholesale Markets
- Co-optimization of energy and ancillary services
- Why is co-optimization needed for economic efficiency?
- How does co-optimization work?
- Reserve and regulation shortage pricing
- Overview of alternative scarcity pricing mechanisms
- The advantages of reserve shortage pricing
- How does reserve shortage pricing work
- Determining energy prices in markets with reserves shortage pricing and co-optimized energy and ancillary service markets
- ERCOT’s operating reserve demand curve
- Ramp constraints, price spikes and regulation shortage values
- The role of scarcity pricing in markets with capacity requirements
10:30 – 10:45 a.m. :: Morning Break
10:45 a.m. – 12:30 p.m. :: Overview of Ancillary Services, Regulation and Reserve Products in Wholesale Markets (continued)
- Ramping products
- Storage and demand side ancillary services
- Overview of current storage and demand side ancillary service ISO products
- Economics of storage and demand side ancillary services for provision of ISO products
- Expected evolution of energy storage products and likelihood of broader valuation of multiple uses
- Comparison of ancillary services, regulation and reserve market values across all ISOs
12:30 p.m. :: Program Adjournment