Code: ELNP1

Objective: To provide a working knowledge of nodal dispatch and pricing as it applies to the New Zealand electricity spot market, including simple formulae to apply and the ability to recognise the cause of certain nodal pricing effects.

Prerequisites: EL0.  Alternatively, some familiarity with the electricity spot market including an overview knowledge of the SPD and RMT models, and with the processes and timing of publication of final, and other prices.

Market Processes and Models for Dispatch and Pricing

Dispatch and pricing processes

Marginal pricing

Dispatch and pricing models – SPD and RMT

Dispatch cost function

Constraints in dispatch and pricing models

Shadow prices

Nodal energy prices and reserve prices defined

Losses and constraints surplus

Scarcity pricing

One Node ‘Markets’

Dispatch and pricing of energy

Reserves risk offsets

Dispatch and pricing of reserve

Dispatch and pricing effects for energy-reserve constrained dispatch

Dispatch and pricing dominated by reserves

Adding Lines and Losses

Pricing effects of losses in AC and DC lines

Linear versus quadratic losses

Contribution of losses to the losses and constraints surplus

Loss modelling in SPD

Congested Networks

Line limits

Pricing effects of simple line constraints

Contribution of constrained lines to the losses and constraints surplus

“Spring washer effect” due to line constraints in loops in the Grid

Note:    Only simple arithmetic is used in this course.  Simple examples using a few nodes at most are used to assist learning.  Course material may also vary from the above on the day.