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 Proposed for review 

Interaction of DR and Two Settlement Markets

Level 1 Requirements (Sponsor)

  1. The system shall enable the study of the interaction between an LSE, ISO, generators and consumers.

Level 2 Requirements (Systems)

  1. The system shall enable modeling the bidding strategy of an LSE in the DA market
  2. The system shall enable each LSE to have a separate portfolio (e.g., mix) of contracts in all available markets, including bilateral contracts outside the markets.
  3. The system shall enable modeling of the ISO behavior when demand response is included.
  4. The system shall enable a different price and quantity in the DA and RT markets.
  5. The system shall enable centralized scheduling of generation at the wholesale level.
  6. The system shall enable self-dispatch of supply and demand resources at the retail level.
  7. The system shall enable the determination of peak load reduction and load shifting.
  8. The system shall permit the exploration of the risk management strategy of LSE operations.
  9. The system shall permit tracking of limit and dispatch violations and penalties.
  10. The system shall differentiate loads according to their load class (e.g., commercial, residential, industrial, agricultural).
  11. The system shall represent the flexibility of energy and power consumption as a function of price.
  12. Load power and energy shall be sensitive to weather, time-of-day, day-of-week, month-of-year, and annual load growth.
  13. System behavior shall consider the effect of control bands, population diversity of demand response, previous use/history, over/under utilization on load behavior.
  14. The system shall evaluate the producer surplus and the change in consumer surplus.
  15. The system shall evaluate the appliance cycling time and rate.
  16. The system shall evaluate the lag between a price peak and the correspond load minimum, and between a price minimum and the correspond load peak.
  17. The LSE model shall incorporate the ability to adjust business strategies based on previous performance results.
  18. The system shall evaluate market power of producers and consumers.

Level 3 Requirements (Modules)

  1. The system shall represent the data flow structure of the bidding and market clearing strategy.
  2. The system shall represent multiple contracts for each purchasing/selling LSE, generators, and consumers.
  3. The system shall represent the dispatch schedule at the wholesale.
  4. The system shall provide the data necessary for self-dispatch at the retail level.
  5. The system shall allow the extraction of net & gross revenue, net profit, net earnings, producer surplus, average and marginal cost data from LSE, generators, and ISO.
  6. The system shall allow the recording of all bids submitted to all markets at all times.
  7. The system shall record the dispatched/scheduled load, and the actual load.
  8. The system shall generate the correlation between profit different supply and demand contracts.
  9. The system shall generate LSE pro formas, balance sheets, cost/benefit analysis results, and profitability reports.
  10. The system shall implement cross-correlation portfolio analysis.
  11. The risk management method shall use Lotus (which is preferred?) risk management approach.
  12. The system shall compute the payback time for an LSE technology/program investment.
  13. The system shall compute the fractional change in reserve requirements resulting from a technology/program investment.
  14. The system shall compute market power indices (?).
  15. The system shall provide mechanisms for load to shift in time, preheat/precool, use electrical and thermal storage, and use alternative approach to delivering comfort to consumers.
  16. The system shall provide mechanism to model the impact of consumer fatigue, consumer resistance, program attrition, and the impact of supplier reliability, repair costs, and availability on retail market participation.

Level 4 Requirements (Objects)

  1. Model of contracts shall include…
  2. Model of bids shall include…
  3. Model of market clearing shall include…
  4. Model of dispatch schedule shall include…
  5. Model of self-dispatch data shall include…

Demand Response (and Generation)

Level 1 Requirements (Sponsor)

  1. The system shall be required to enable the study of the effects of demand response on multiple levels of the power system, including generation, transmission, distribution, households, appliances, and consumers.

Level 2 Requirements (Systems)

  1. The system shall facilitate the comparison of demand and energy consumption at various levels of the model and the effect that demand response has on them.
    1. Power system elements that are changeable (loads, distributed energy resources, etc.) in response to a signal shall be supported.
      1. The system shall support both locally generated and centralized signals.
      2. Minimally, the system shall support frequency, voltage, price, setpoint, state (ON/OFF), and random signals.
    2. Standard load flow outputs shall be available (V, I, P, Q as functions of time) at any given element in the system at any given time.
    3. The state of the element shall be measurable at any given time during a demand response event (before, after, and during).
  2. Bidding abilities and cost curves shall be available for generators.
    1. The capability to build customizable cost curves shall be included.
      1. Piece-wise, linear, and cubic shall be included.
      2. Cost curves shall be a function of time and include various reasons for providing (e.g. spinning reserves versus power production).
    2. Once costs are determined, generators shall be able to bid into an "object" that can resolve the system bids.
      1. A mechanism for determining actual price based on cost (and other variables) shall be included.
      2. The ability to include various bidding strategies shall be supported.
    3. Markets shall be required to accept a range of bids (e.g. 10-20 instead of only 10).
    4. Generators shall be required to handle de-commitment.
    5. Generators shall be required to observe limits (e.g. P, Q, power factor, etc.).
    6. Multiple layers of market systems shall be incorporated (e.g. peer-to-peer, peer-to-aggregate, aggregate-to-utility, aggregate-to-aggregate, etc.).
    7. Generators models shall be customizable by the user.
  3. The system shall support bidding strategies which includes all components (transmission lines, feeders, generators, etc.).
    1. The limit on number of agents support shall be determined.
  4. The system shall support incorporation of demand response signals into energy storage and generator control strategies.
    1. This shall minimally include the ability to support user addition of optimal placement strategies, optimal operation strategies, optimal cycling strategies, cost and ownership contingencies.
  5. The system shall support an interface for adding optimization strategies which will minimally include the ability to create multiple area networks for control (home area networks, communities, feeders, etc.).
  6. The shall included customizable, centralized plant models.
    1. These shall include generic base plant models and wind farm models.
  7. The system shall include an automated Monte Carlo simulator to test varieties of cases.
  8. The system shall support multiple weather regions within a single system.

Communications

Level 1 Requirements (Sponsor)

  1. The system shall facilitate the study of communication impacts (latency, bandwidth, outages, etc.) on a modeled system.

Level 2 Requirements (Systems)

  1. The system shall model traffic latency for different communication schemes and mediums (e.g., cable, wireless, optical).
  2. The system shall model bandwidth restrictions for different communication schemes.
  3. The system shall model support outages, in conjunction with the reliability module.
  4. The system shall model different noise levels and types on the medium (e.g., white noise, burst noise, impulse events, etc.).
  5. The system shall support unicast and multicast messaging schemes.

Level 3 Requirements (Modules)

  1. The system shall model inter-device communications.
  2. The system shall handle protocol and encoding aspects of the communications.
  3. The system shall provide a messaging framework to objects.
  4. The system shall indicate the failure states of the underlying communication network, when they occur.

Level 4 Requirements (Objects)

  1. Models shall provide messaging data into the communication system.
  2. Models shall be able to receive messaging data from the communications system.
  3. Models shall intrinsically model responses to outages or disruptions in communications.