This new in-depth two-day program provides a comprehensive and clear explanation of the structure, function, and current status of the Texas ERCOT ISO including its operations, the fundamentals of day-ahead and real-time energy auctions, LMP, CRRs, generation capacity markets (Resource Adequacy) and the new operational and economic issues raised by the integration of solar, wind, distributed generation (“DER”), demand response (“DR”) and demand side management (“DSM”) resources.
Gain an understanding of the dynamic Texas wholesale and retail competitive markets, and learn how these markets interface with ERCOT ISO energy auctions and ISO operations. Understand, enhance and apply knowledge of the ERCOT’ nodal market operations for Energy, Ancillary Services, Market Settlements, Capacity, Retail and Renewables.
This seminar will also address the rapidly expanding new market opportunities in Texas Renewables – Wind, Solar, etc., Distributed Generation (“DER”), Demand Response and Demand Side Management (“DSM”) as well as the new opportunities that will be emerging from the current re-design of ERCOT Ancillary Services, future Ancillary and Capacity market initiatives and the further unbundling of ERCOT services.
What You Will Learn
- ERCOT’s market functions, market participants and players and how they interface and do business.
- The importance of the QSEs’ central role in representing market participants before ERCOT,
- What makes the ERCOT market unique compared to all other ISOs and RTOs.
- What changed after the move to a nodal market design and major transactional differences.
- What the “Shadow Price” is, and why it is important and its relationship to LMP.
- Nodal System: LMPs, congestion management and CRRs and settlement processes.
- The functions and importance of congestion revenue rights and why these financial instruments are used
- ERCOT’s zonal and local congestion management operations and differences
- Day-Ahead and real-time markets for energy, ancillary services and capacity – RUC and HRUC.
- The workings and relationship of the day-ahead and real-time markets
You Will Also Learn
- How Bilateral and Auction Markets interface and how they work independently and together.
- Wholesale pricing, retail market Functions and structures for retail business.
- The key wholesale market settlement operations under the nodal market.
- How ERCOT’s retail market works and what’s going on in this market.
- The controversial relationships between reserve margins and real-time energy price market caps.
- What Generation, Transmission and infrastructure issues ERCOT faces now and over the next ten years.
- ERCOT has targeted demand response deployments, renewable energy and DSM programs and those on the horizon.
- The interconnectivity issues in natural gas and power markets.
- How the different IT systems fit together and are used in the Wholesale and Retail Markets.
- What are the steps for planning and accomplishing resource interconnections with ERCOT
Seminar Agenda
- Understand the different types of players, stakeholders and their different roles and multiple functions.
- The key wholesale and retail stakeholders and market participants are, and how their activities shape ERCOT’s operations.
- The importance of the QSEs’ role and who can participate based on qualifications and objectives.
- The day-ahead auction markets work, the timing issues and the types of products.
- The critical functions and relationships of the day-ahead and real-time markets and how they interact in the wholesale and retail markets.
- Locational marginal pricing (LMP) and why and how it’s used for choosing offers and product pricing.
- How LMP is calculated and used for transaction pricing at nodes, zones and hubs.
- The different functions of ERCOT energy, balancing or “spot market” and ancillary market services.
- What DRUC, HRUC and related capacity markets mean and why these distinctions are important.
- The difference between auction and bilateral bulk power markets and the pros & cons of each.
- How the “Two-Market Settlement” process works and the key wholesale market settlement activities.
- Load Zone versus hub settlements and LMP calculation differences.
- The concerns and relationships between reserve margins real-time energy price market caps and reserve markets.
- New and potential future ancillary services in the works that will change the number of products offered.
- ERCOT’s and the power industry’s perspectives on “forward capacity” markets and price caps.
- The concerns and relationships between reserve margins real-time energy price market caps.
- Generation, Transmission and other infrastructure issues ERCOT faces now and over the next ten years.
- The “smart grid” is in ERCOT and a discussion of the key issues and how the smart grid is likely to develop and impact wholesale and retail price signals.
- A summary of the key issues of today and where the ERCOT is headed, including a discussion of the smart grid, renewable energy and the building of new transmission lines.
- The major issues facing wind energy, solar and other renewables and how these generation sources relate to the proposed buildout of the backbone power grid.
- The ERCOT targeted demand response deployments as cost-effective alternatives to transmission and distribution infrastructure upgrades for local reliability.
- The roles that different distributed energy resources play in a targeted demand management program.
- The drivers for the growing interest in these non-wires distributed generation (“DER”), demand response (“DR”) and related demand side management (“DSM”) initiatives.
- The current and future issues facing ERCOT on DER, DR and DSM alternatives.
- How end-users buy and manage their electric choices and procurement options and what are they today and expected to be in the future.