This in-depth program provides a comprehensive and clear explanation of the structure, function, and current status of the ERCOT ISO and the dynamic Texas power markets including operations, the fundamentals of day-ahead and real-time energy auctions, LMP, CRRs, generation capacity markets (Resource Adequacy) and the new operational and economic issues raised by the integration of solar, wind, distributed generation ("DER"), demand response ("DR") and demand side management ("DSM") resources and energy storage.
Gain an understanding of the dynamic Texas wholesale and retail competitive markets, and learn how these markets interface with ERCOT ISO energy auctions and ISO operations. Understand, enhance and apply knowledge of the ERCOT' market operations including the nodal Energy Market, Ancillary Services Markets, Market Settlements, Installed Capacity, Retail structures and Renewables deployment.
This seminar will also address the rapidly expanding new market opportunities in Texas Renewables - Wind, Solar, etc., Distributed Generation ("DER"), Demand Response and Demand Side Management ("DSM") as well as the new opportunities that will be emerging from the latest re-design of ERCOT Ancillary Services, future Ancillary and market reliability initiatives, and the further unbundling of ERCOT services.
How This Online Course Works
Get the best of both worlds with this blended learning approach.
- Learn at your own pace and on your own schedule as you first enjoy the internet-streamed, on-demand seminar. Speed up, slow down, or repeat sections of the presentation.
- Upon completion, join us for one of our regularly scheduled live online Q&A sessions. A calendar of live Q&A dates and times is provided in the program access instructions you will receive. You can also email your questions directly to the instructor.
Course Access
You will receive immediate online access to the on-demand training presentation. The audio for the online seminar is only available through your computer or other Internet connected device. You will also receive links in your access instructions to PDFs for all the presentation materials in case you want to print or keep a copy.
The on-demand training presentations are available for a total of 45 days from the time any one of the training presentations is first accessed. After 45 days, your access to the on-demand presentations will expire. However the PDF formatted training program slides and other documents you receive are yours to keep.
Course Content
Session 1: Module 1 - The Structure and Function of the ERCOT ISO What You Will Learn- Key wholesale and retail market stakeholders and market participants - How their activities shape ERCOT's operations
- What makes the ERCOT market unique compared to all other ISOs and RTOs.
- Importance of the QSEs' role and who can participate based on qualifications and objectives
- The critical functions and relationships of the Day-Ahead and Real-Time markets - how they interact in the wholesale and retail markets
- ERCOT summer and winter system reliability issues and system wide offer caps
- Summary of the key issues of today and where ERCOT is headed - discussion of the smart grid, renewable energy and the building of new transmission lines
- How do the day-ahead auction markets work? Timing issues and types of products
- Locational marginal pricing (LMP) - why and how it's used for choosing offers and product pricing
- How LMP is calculated - use for transaction pricing at nodes, zones and hubs
- Functions of ERCOT Energy, balancing or "spot market" and Ancillary market services
- The difference between auction and bilateral bulk power markets and the pros & cons of each
- How the "Two-Market Settlement" process works - key wholesale market settlement activities
- Basis Risk - load zone versus Hub settlements and LMP calculation differences
- Concerns and relationships between reserve margins real-time energy price market caps and reserve markets
- Texas rolling brownout events - learnings from these events and steps taken by ERCOT to ensure future reliability
- ERCOT's new Ancillary Services framework - changes in products, their requirements, and implications on the system reliability
- Day-Ahead and Real-Time markets - Energy, Ancillary Services and reliability - RUC and HRUC
- The workings and relationship of the day-ahead and real-time markets
- What changed after the move to a nodal market design - major transactional differences
- What is the "Shadow Price" and why it is important? How is it related to LMP?
- Nodal System: LMPs, congestion management and CRRs and the settlement processes.
- Nodal System: LMPs, congestion management and CRRs, and the settlement processes.
- The functions and importance of congestion revenue rights as a financial instrument
- ERCOT's zonal and local congestion management operations and differences
- Generation, Transmission and other infrastructure issues ERCOT faces now and over the next ten years.
- What DRUC, HRUC and related capacity markets mean and why these distinctions are important
- The controversial relationships between reserve margins, system-wide offer caps, and real-time energy price market caps.
- ERCOT summer and winter system reliability issues
- How end-users buy and manage their electric choices and procurement options and what are they today and expected to be in the future.
- ERCOT's and the power industry's perspectives on "forward capacity" markets and price caps
- Concerns and relationships between reserve margins real-time energy price market caps
- The "smart grid" in ERCOT - a discussion of the key issues and how the smart grid is likely to develop and impact wholesale and retail price signals
- How Bilateral and Auction markets interface and how they work independently and together
- Wholesale pricing, retail market functions and structures for retail business
- How ERCOT's retail market works and what's going on in this market
- Key wholesale market settlement operations under the nodal market
- ERCOT's zonal and local congestion management operations and differences
- ERCOT's new Ancillary Services framework - Changes in the products, their requirements, and implications for system reliability
- Texas rolling brownout events, learnings from the event and steps taken by ERCOT for the future
- ERCOT's current interconnection queue - recent developments in the renewables and storage projects.
- ERCOT's LTSA and the IRP model - Capacity mix forecasts and Energy price forecasts
- ERCOT's roadmap for energy storage and ongoing work by the Battery Energy Storage task force.
- Texas support of new Natural Gas generators - Texas Energy Fund
- ERCOT's upcoming market changes and implications of the new energy mix with renewables and energy storage
- Major issues facing wind energy, solar and other renewables - how these generation sources relate to the proposed buildout of the backbone power grid
- ERCOT targeted demand response deployments as cost-effective alternatives to transmission and distribution infrastructure upgrades for local reliability
- Roles of different distributed energy resources in a targeted demand management program
- Drivers for growing interest in non-wires distributed generation ("DER"), demand response ("DR") and related demand side management ("DSM") initiatives
- Geographical heat maps of energy storage potential across Texas
- The current and future issues facing ERCOT on DER, DR and DSM alternatives.
- ERCOT targeted demand response deployments, renewable energy and DSM programs and those on the horizon.
- The interconnectivity issues in natural gas and power markets.
- How the different IT systems fit together and are used in the Wholesale and Retail Markets.
- What are the steps for planning and accomplishing resource interconnections with ERCOT
- ERCOT's current interconnection queue, recent developments in the renewables and storage projects.
- ERCOT's LTSA and the IRP model with the capacity mix forecasts and energy price forecasts.
- Geographical heat maps of energy storage potential across Texas
Course Provider
Dr Randell Johnson,
CEO ,
AcelerexDr. Johnson is CEO of Acelerex and has expertise and experience in the Valuation, Design, Procurement, and Operations of Grid Batteries Dr. Johnson has been involved in the Energy Storage Road Map for the Maldives, Bermuda Energy Storage Sizing Study, New York Energy Storage Road Map, Massachusetts State of Charge Study, MISO Energy Storage Study, Ontario Energy Storage Study, and numerous other energy storage studies. He was selected by the World Bank to study 100% carbon-free grids with energy storage and Acelerex software and methods were selected by the International Renewable Energy Agency for increasing penetration of renewables with energy storage. Dr. Johnson has invented and developed software for battery analytics and battery real time control. He is expert at power markets and valuation of energy storage to maximize utilization of existing transmission systems and co-optimization of transmission and other resources in addition of co-optimization of energy and ancillary services. A Harvard Business Case has been written for energy storage that includes methods pioneered by Dr. Johnson. Dr. Johnson holds a Ph.D. in Power Engineering from Rensselaer Polytechnic Institute and an MS in Economics from Cass Business School, UK, and a Utility Corporate Finance Certificate for Gas and Electric Utilities from UConn Business School. Dr. Johnson has background in strategy, regulatory finance, economic optimizations, quantitative finance, electricity and energy markets, public policy, technical grid design, real-time optimizations, and high-performance computing.
Who Should Attend
This training program will benefit a wide variety of organizations in the electric power, financial and energy industries. Professionals from banks, energy producers, electric utilities, energy marketers, industrial companies, electric generators, and municipals will gain valuable insights, as will natural gas, oil and electric power executives, traders, marketers, (sales, purchasing & risk management professionals), accountants, economists, trading support staff, auditors, attorneys, government regulators, rate specialists, plant operators, engineers and corporate planners.
