Ancillary Services Fundamentals and Market Dynamics

Ancillary Services Fundamentals & Markets Dynamics

September 22-23, 2022 | Online :: Central Time

“This is my third event, apart from content I appreciate the diversity of attendees. Lawyers, economists, ISO, FERC, generators, marketers, traders, back of the house support, grad students – all provide a different perspective of a single topic.” Sr. Data Architect, Aquilon

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 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:15 – 1:00 p.m.
Lunch Break

9:00 a.m. – 4:45 p.m.
Course Timing

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 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:30 p.m.
Course Timing

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

Instructors

Joe Cavicchi, Vice President, The Analysis Group

Joe Cavicchi is a Vice President with The Analysis Group and is based in Boston, Massachusetts. His expertise is conducting economic analyses of US electricity markets. In particular, he advises clients in Federal Energy Regulatory Commission matters, state regulatory proceedings, and arbitration and court proceedings. He files testimony, affidavits and expert reports supported by economic analyses. Mr. Cavicchi’s work focuses extensively on analyzing the U.S. wholesale electricity markets and developing an in-depth understanding of the operations of the wholesale markets. His work involves conducting economic analyses of wholesale power markets and related regulatory policy to support a wide variety of testimony, presentations and papers. He analyzes power market designs and market power mitigation frameworks; assesses the competitive impact of mergers and acquisitions; evaluates power and fuel contract dispute analysis; assists with power procurement designs; and, oversees the application of complex analytical modeling to assess electricity system operations. He also runs workshops and seminars on power market design features. He has been actively involved in the electricity industry both before and after its restructuring for a total of more than 20 years. Prior to joining The Analysis Group, Mr. Cavicchi was Executive Vice President at Compass Lexecon. Before that he was a staff mechanical engineer and a project manager at the Massachusetts Institute of Technology, overseeing the development, permitting, engineering, construction, and start-up of a $40 million, 20 megawatt gas turbine-based cogeneration facility at the Cambridge campus. Mr. Cavicchi holds an S.M. in technology policy from MIT, an S.M. in environmental engineering from Tufts University and a B.S. in mechanical engineering from the University of Connecticut.


Matthew Lind, Director – Resource Planning & Market Assessments, 1898 & Co.

Matthew Lind is the director of resource planning and market assessments at 1898 & Co., part of Burns & McDonnell.  He has worked as a professional consultant in the utility and energy sector since 2004.  Mr. Lind specializes in system planning and market congestion studies driven by strategic, economic and regulatory considerations for generation or transmission development in markets across North America. He has a Bachelor of Science in industrial engineering from Iowa State University and a Master of Business Administration from the University of Missouri-Kansas City.


Dan LoBue, President, Competitive Energy Consulting

Dan LoBue is President of Competitive Energy Consulting.  He is a subject matter expert with more than 30 years’ experience in power markets, holding both senior management positions at market participating companies and as a consultant in the electric industry.  As a corporate employee, he has held positions in generation, transmission, regulatory and commercial operations; specifically trading and origination. As a consultant, he specializes in advising and providing solutions to decision-makers looking to improve margins and reduce expenses in electricity markets through the application of adept knowledge of the market rules, regulations, risks and use of time proven systems and processes.  Mr. Lobue works on behalf of market participants in MISO, SPP, PJM, CAISO, ISO-NE, and NYISO. He was the lead consultant for the MISO South / Entergy integration, assisting Entergy, MISO and many of the other embedded companies successfully transition and integrate into the market on time. Post-market integration activities have included proving solutions to improve market performance and reduce P&L leakage. He is considered a “go-to-guy” for bridging the gap between theory and practice.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • IMPORTANT NOTE: After November 30, 2021 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

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

REGISTER NOW FOR THIS EVENT:

Ancillary Services Fundamentals & Markets Dynamics

September 22-23, 2022 | Online
Individual attendee(s) - $ 1195.00 each

Volume pricing also available

Individual attendee tickets can be mixed with ticket packs for complete flexibility

Pack of 5 attendees - $ 4,780.00 (20% discount)
Pack of 10 attendees - $ 8,365.00 (30% discount)
Pack of 20 attendees - $ 14,340.00 (40% discount)

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before August 19, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

CEUs

Credits

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 CEUs for this event.

Requirements For Successful Completion Of Program

Participants must sign in/out each day and be in attendance for the entirety of the conference to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations and case studies will be used in program


Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 11.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

Who Should Attend

Power industry personnel who need to have a better understanding of what Ancillary Services are, how they are competitively procured, how they are scheduled, and how and when they are called upon:

  • Portfolio managers and traders responsible for formulating bidding strategies for ancillary services
  • Power-plant and systems operations engineers who would like to understand the impact of ancillary services on their plant profitability
  • Genco and DR executives who need a good understanding of the potential impacts and opportunities of ancillary services markets on their operations
  • Personnel of Independent System Operators (ISOs), attorneys, and regulators who need to understand the function of ancillary services, co-optimization measures, and reliability implications in various markets
  • Power marketing professionals responsible for optimizing their fleet utilization and profitability
  • Demand side, demand response and aggregation services that must capitalize on access opportunities across multiple AS markets

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