Market Renewal Newsletter - July Update
July 11, 2022
Every issue we feature an update from someone different on the Market Renewal team to shed light into their work.
From the desk of...
Tim Lam, Senior Specialist, Energy Implementation, Market Renewal Program (MRP)
The Energy Implementation team is made up of a broad range of subject matter experts with a diverse background in power system operations and market administration. We are primarily responsible for the drafting of internal and market manuals that will govern market participant and Independent Electricity System Operator (IESO) activities in the renewed market; from the submission of dispatch data prior to the start of every day-ahead market run, through to real-time market operations and everything in between.
I’ve been on MRP almost since the beginning, with my current area of focus on market participant submission of dispatch data for use in the calculation engines, including the introduction of the daily dispatch data construct that is replacing daily generator data currently used in today’s day-ahead commitment process. I am also involved in the design implementation of generator-offer-guarantee eligible resource participation under MRP, including processes and tools that will enable the new pre-dispatch engine to issue operational commitments to these resources.
I have had the pleasure of collaborating with a broad range of experts across the organization in bringing the concepts and ideas contemplated during the design phase of MRP one-step closer to implementation, and engaging with our stakeholders through our many outreach efforts, and I'm excited to see the results of our efforts when MRP proceeds to in-service.
What we're working on
MRP Implementation Engagement
Day in the Life
Thirteen “Day in the Life” guides are now available to provide participant types with insights into what their participation looks like in the renewed market. These guides outline the magnitude of the change, and will help participants begin their own readiness planning activities, such as updates to their processes, and allocating resources to participate in training, testing and education.
Transmission Rights Transitional Design
At the June MRP stakeholder engagement meeting, the IESO proposed a solution to reconcile Transmission Rights (TR) ownership periods that bridge current and future post-MRP TR market settlement. You can view the recording of the presentation where the IESO provided an overview of the proposed transitional design. Stakeholders can submit questions and feedback to engagement@ieso.ca by July 15.
Navigating Design Solutions - Thermal State Transition
As a result of previous stakeholder feedback on thermal state transition periods, a proposed design change is being considered. Market Participants submit Minimum Generation Block Down-Time (MGBDT) hot/warm/cold parameters that identify the hourly transitional breakpoints for the hot/warm/cold thermal states. Stakeholders have indicated that the transition times between the Hot-to-Warm and Warm-to-Cold thermal states can be longer than the current 24-hour maximum limit applied to MGBDT submissions. The proposed design change adjusts the maximum number that can be submitted, to 24 hours for MGBDT Hot, and 99 hours for Warm/Cold. Stakeholders can submit questions or provide feedback to engagement@ieso.ca by July 15.
IESO news
Q2 2022 Reliability Outlook Now Available
Ontario is expected to have an adequate supply of electricity to meet the needs of residents, businesses and communities for the next 18 months. However, the province has entered a period of tighter electricity supply conditions that will require active outage management and increased import volumes during certain periods.
Total consumption in 2022 is expected to reach 136.0 terawatt-hours (TWh), an increase of 1.7% over 2021. The demand forecast continues to evolve in response to inflation, supply chain disruptions and geopolitical tensions, among other factors. The IESO is monitoring the situation and will adjust the forecast as needed.
On the supply side, concurrent nuclear outages coupled with regional transmission constraints have reduced the amount of supply available to meet the province’s energy needs. Discussions with nuclear generators are ongoing and the refurbishment schedule for 2023 is expected to change, resulting in an improved adequacy outlook. New wind and hydroelectric resources will also be available to help meet demand. The full report is available on the IESO website.
Request for Qualifications Released for Long-Term Procurement
The final Long-Term Request for Qualifications (LT1 RFQ) document, part of the development of the first Long-Term RFP (LT1 RFP) for new-build facilities, has now been posted. The LT1 RFQ will qualify applicants for both the LT1 RFP and the Expedited Long-Term RFP (Expedited Process). The RFQ aims to ensure interested parties have the capability to undertake project development by evaluating both corporate and employee experience. Qualified applicants for the first Long-Term RFP and Expedited Process are expected to be announced later this summer.
Reminders
- July 15 - Opportunity for stakeholders to submit feedback on the transitional design which proposes to cancel Transmission Rights auctions that overlap with MRP go-live. Questions and feedback due to engagement@ieso.ca.
- July 15 – Stakeholders can submit feedback on the proposed Thermal State Transition design changes. Questions and feedback due to engagement@ieso.ca.
Key dates
- July 21 Engagement: Register now - MPM Market Manual Update, RSS Project Implementation Update
- September Engagement: Interim Alignment Market Rules and Manuals
- To include incorporation of storage in previous batches; updates to delineate resource versus facility level obligations; among other items
- Posting in early September, with stakeholder feedback expected by early November
Did you know?
When Ontario’s electricity market opened in 2002, the landscape looked very different from today. Coal-fired generation has since been phased out; wind and solar generation have joined the provincial supply mix; and new types of demand response and storage resources are also helping to meet the province's demand for electricity. Back then we had around 240 market participants and now we have more than 600 - representing a diverse range of organizations – many of which didn’t exist in 2002.
A wholesale market is the most reliable and cost-effective tool for operating an increasingly diverse and decentralized system of resources. In light of the sector changes underway, modernizing our real-time markets is critical. With an increasingly diverse and decentralized system of resources, we need to ensure the market is positioned to support this transformation. By making change now, the IESO and its stakeholders can best prepare the province to manage the challenges and benefit from the opportunities of an evolving electricity sector.
Through MRP, we are rebuilding the market platform and enhancing it to ensure we can continue to operate an evolving resource mix. The changes we are making through MRP will ensure our market manages the day-to-day operation of the electricity system in a way that is robust, transparent and provides the price signals needed to deliver efficient market outcomes and maximum value to Ontario ratepayers.