Ancillary Services Fundamentals & Market Dynamics

Ancillary Services Fundamentals & Market Dynamics

June 17-18, 2024 | 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 a 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
  • How and when they are called upon by ISOs and other bulk power systems
  • The functions performed by each ancillary service with a focus on the real-power services
  • The complex market design approaches to scheduling, pricing and bidding ancillary services

Join our expert instructor as he guides you through the features of ancillary services, regulation and reserve market design. Special group discounts are available starting at 20% off for teams of five or more!

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 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

Monday, June 17, 2024 : 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
    • Decarbonization
    • FERC Order 755
  • Economic drivers
    • LCOE reductions in renewable energy
    • Shift in marginal cost of energy in market regimes
    • Retirement of baseload power
    • Technological advances and economics

10:15 – 10:30 a.m. :: Morning Break

10:30 a.m. – 12:15 p.m. :: Ancillary Services in the Regulatory Context

  • Who is in control
  • What are ancillary services (AS)?
  • Ancillary services and reliability
  • NERC reliability performance requirements
  • Impact of FERC Orders

12:15 – 1:00 p.m. :: Lunch Break

1:00 – 2:00 p.m. :: Ancillary Services Technical and Engineering Aspects

  • 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

2:00 – 3:00 p.m. :: Sources of Ancillary Services

  • Conventional generation
  • Renewables
  • Energy storage
  • Demand response
  • Synthetic

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 4:45 p.m. :: Sources of Ancillary Services (continued)

  • Conventional generation
  • Renewables
  • Energy storage
  • Demand response
  • Synthetic

4:45 pm :: Program Adjourns for Day

 

Tuesday, June 18, 2024 : Central Time

8:45 – 9:00 a.m.
Log In

12:15 – 1:00 p.m.
Lunch Break

9:00 a.m. – 4:45 p.m.
Course Timing

 

9:00 – 10:30 a.m. :: Ancillary Services Market Offerings

  • Balancing areas (BAs) where there are no regional markets
  • Comparisons of ancillary services products across all ISOs
    • California ISO
    • ERCOT
    • ISO New England
    • Midcontinent ISO
    • New York ISO
    • PJM Interconnection
    • Southwest Power Pool

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: Ancillary Services Market Offerings

  • Comparisons of ancillary services products across all ISOs (continued)
    • California ISO
    • ERCOT
    • ISO New England
    • Midcontinent ISO
    • New York ISO
    • PJM Interconnection
    • Southwest Power Pool

12:15 – 1:00 p.m. :: Lunch Break

1:00 – 2:45 p.m. :: Market Finances/Economics of Bidding Ancillary Services

  • Pricing and value overview of ancillary services, regulation and reserve products across all ISOs/wholesale markets
  • 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

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 4:45 p.m. :: Market Finances/Economics of Bidding Ancillary Services (continued)

  • 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

4:45 p.m. :: Program Adjournment

Instructors

Raj Rana is President of Rana Energy Consulting.  Before starting his consulting practice in 2011, he served as RestorePower Program Manager at Edison Electric Institute (EEI) and in several roles at American Electric Power (AEP) for more than three decades.  While serving as the director of RTO Policy and NERC Compliance at AEP, he was responsible for coordination of energy, transmission, market structure, finance, and governance-related RTO policy issues among the company’ s business units, development of corporate positions/policies, and advocacy of such positions at regulatory agencies and stakeholder forums in PJM, SPP, and ERCOT RTOs. Mr. Rana was also responsible for the development and coordination of strategic direction of AEP’s power system reliability compliance program among all business units, as well as coordination and facilitation of compliance plans, policies, and procedures within the company to ensure timely and successful compliance of NERC and regional reliability standards.  He also worked in AEP’s System Planning department in various positions, including planning and operation of the bulk transmission network, generation interconnections, tariff and regulatory/legislative issues, system integration, asset management, mergers and acquisitions, as well as planning and engineering studies for international transmission and generation projects.  Mr. Rana holds a BSEE degree from M. S. University (India), an MSEE degree from West Virginia University, and an MBA degree from University of Dayton.

Joseph Cavicchi is Vice President with Analysis Group and is based in Boston, Massachusetts.  He is an energy economist whose expertise is focused on wholesale and retail electricity markets. He conducts economic analyses evaluating the impact of regulatory policies on electricity markets, applies rigorous analytical modeling tools to power system operations, conducts power market antitrust analyses, and leads economic analyses in association with a variety of wholesale and retail power contracting arrangements. Mr. Cavicchi has extensive experience as an expert witness before the Federal Energy Regulatory Commission (FERC) and other federal and state regulatory authorities. He also presents and publishes frequently on issues relevant to electricity market design and evolution.  Prior to joining Analysis Group, he 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.  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. 

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.

  • Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
  • 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 attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

Ancillary Services Fundamentals & Market Dynamics

June 17-18, 2024 | Online
Individual attendee(s) - $ 1295.00 each

Volume pricing also available

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

Pack of 5 attendees - $ 5,180.00 (20% discount)
Pack of 10 attendees - $ 9,065.00 (30% discount)
Pack of 20 attendees - $ 15,540.00 (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 May 17, 2024 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 1.3 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: 15.0
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

  • 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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