Objective: To provide a working knowledge of nodal dispatch and pricing as it applies to the New Zealand electricity spot market, and the ability to recognise the cause of common nodal pricing effects. Discover how energy and instantaneous reserves are managed to secure the supply of electricity, and how the "spring washer effect" can create price spikes and dips.
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.
Videos: Prior to the course, participants should watch this short video covering introductory and overview material for the course. After the course, participants will be given access to two videos, one providing more details on the "spring washer effect" and one providing a brief description of how "SFT constraints" are formed.
- Market Processes and Models for Dispatch and Pricing
Dispatch and pricing processes
Dispatch and pricing models – SPD and RMT
Dispatch cost function
Constraints in dispatch and pricing models
Nodal energy prices and reserve prices defined
Losses and constraints excess
- One Node ‘Markets’
Dispatch and pricing of energy
Reserves risk offsets
Dispatch and pricing of reserves
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
- The National Market for Reserves
Sharing of reserves in the forward and reverse directions
HVDC operating modes and round power
Examples and case studies for various combinations of offers and modes
Price inversions on the HVDC link
- Congested Networks
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.
Prices shown below are GST exclusive