The Central America Electricity Market Cartagena de Indias Colombia October 2003 APEX MEETING 2003 Pablo Corredor Avella Manager of National Dispatch Center.

Presentación del tema: "The Central America Electricity Market Cartagena de Indias Colombia October 2003 APEX MEETING 2003 Pablo Corredor Avella Manager of National Dispatch Center."— Transcripción de la presentación:

1 The Central America Electricity Market Cartagena de Indias Colombia October 2003 APEX MEETING 2003 Pablo Corredor Avella Manager of National Dispatch Center Interconexión Electrica S.A. ISA

2 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Table of Contents Governance Principles The Market System and Market Operation Settlement Financial Guarantees

3 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Governance

4 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León Regional Electricity Market Regional Electricity Market National S & MOs National Regulators GOVTS CRIE Regional Regulato r EOR Regiona l S & MOs

5 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Principles

6 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León COMPETITION GRADUALLY RECIPROCITY PRINCIPLES OF THE TREATY

7 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León PRINCIPAL ISSUES  The objective is to create a Regional Wholesale Electric Market  It will not eliminate the existing National Markets  The Regional Electricity Market is a “Seventh Market”  Qualified Agents from any of the six countries will participate

8 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León OBJETIVES OF THE REGIONAL MARKET  Have larger generating plants  Exchange of surplus power  Climate and load diversity  Increased quality  Lower prices  More private investment sources

9 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia The Market

10 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León Contracts Market  Bilateral agreement  Duration: Minimun one day Contracts Market  Bilateral agreement  Duration: Minimun one day REGIONAL MARKET REGIONAL MARKET Spot Market  Day Ahead Market  Injecction offers and retirement bids (price based)  Exchange of surplus power  Nodal prices  Nodal prices reflect short run marginal costs and constraints Spot Market  Day Ahead Market  Injecction offers and retirement bids (price based)  Exchange of surplus power  Nodal prices  Nodal prices reflect short run marginal costs and constraints

11 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León Financial Physical Flexible CONTRACTS MARKET CONTRACTS MARKET Non-Firm Non-Firm Firm Firm

12 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León  They can be hedged in the Spot Market  The Transmission Services can be offered FIRM NON-FIRM CONTRACTS CHARACTERISTICS    They can be hedged in the Spot Market  Congestion Right  Firm Energy Delivery

13 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León Injection offers Retirement bits Country 1 Day Ahead Dispatch Scheduled TransactionsNodal Prices Country 2 SPOT MARKET Retirement bits EOR

14 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León $/MWh E (MWh) 1 2 3 5 4 $/MWh E (MWh) 5 1 42 3 Injection Offers Retirements Bids Retirements Bids Transmission Services Offers Transmission Services Offers

15 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia System and Market Operation

16 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León,, First National Dispatch Regional Dispatch National Agents Final National Dispatch Transactions and Nodal Prices REGIONAL DISPATCH

17 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Subject to: Reserve Requirements; Transmission Constraints and Voltage Requirements

18 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León REAL TIME OPERATION Security, Quality, Reliability and Economy of the Regional Electric System Security, Quality, Reliability and Economy of the Regional Electric System

19 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León REGIONAL ANCILARY SERVICES Reactive Power Reactive Power Operating Reserves Operating Reserves Black Start Black Start Load Shedding Load Shedding

20 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León REAL TIME IMBALANCES Node Meter Ir Scheduled Injection Meter Rr Scheduled Retirement Retirement Imbalance = Rr - Rp Injection Imbalance = Ir - Ip Rr : Measured Retirement Rp : Scheduled Retirement Ir : Measured Injection Ip : Scheduled Injection

21 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León POSTDISPATCH Injection offers and Retirement Bids Price E (MWh) Ir POST DISPATCH MODEL Measured Injections Measured Retirements Regional Transmission Grid Nodal Ex-Post Price

22 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León Ir 1 Regional Transmission Grid Real Losses Ir n............ Rr 1 Rr n It´s necessary to relax the measured injections, due to the measure errors and the losses Max  i,k (Price transaction i, period k * P transaction i, period k )-  i,k (FacAdju *  transaction i, period k )

23 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Settlement

24 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León Retirement : (Scheduled Retirement - Contract)*Nodal Price Retirement : (Scheduled Retirement - Contract)*Nodal Price Contracts and Spot Market Settlement Contracts and Spot Market Settlement Injection: (Scheduled Injection - Contract)*Nodal Price Injection: (Scheduled Injection - Contract)*Nodal Price

25 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León IMBALANCES TYPES Normal SignificantMajor AUTHORIZED UNAUTHORIZED

26 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Financial Guarantees

27 The Central America Electricity Market APEX 2003 Cartagena de Indias Colombia Golfo de Panama Canal Suyapa Panama Guate Este Nejapa Guate Norte Cañas Ticuantepe Parrita Pavana Rio Claro Veladero Cajón Rio Lindo Pepesca 15 de Sept. Ahuachapán León  Cash  Trust Company  Securities  Credit Letter In Guarantee of:  Expected Transactions in the Day Ahead Market*(1 + %)  Regulated Charges in the Market  Penalties GUARANTEES IN THE REGIONAL MARKET

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