Market Renewal Newsletter - April Update
April 27, 2021
Every issue we’re featuring an update from someone different on the Market Renewal team to shed light into their line of work.
From the desk of...
Jessica Savage, Program Delivery Executive, Market Renewal Program
I’m pleased to be joining the Market Renewal Program (MRP) in my new role as Program Delivery Executive. It’s been some busy couple months since I’ve stepped into this role and I’m happy to witness the progress we’ve made and excited about our plans ahead.
Engagement on MRP continues to be a priority for us and we remain committed to providing transparency at every stage of the program.
At the March Board of Directors meeting, the Board approved an eight-month extension of the schedule to November 2023. This won’t affect the $800 million in benefits expected to be realized in the first 10 years of implementation. The estimated value to the system, sector and ultimately the Ontario ratepayer remains unchanged.
The revised schedule incorporates lessons learned from the high-level and detailed-design phases, makes best use of existing resources all while delivering a high-quality program.
As the implementation phase ramps up, we remain committed to ensuring both the IESO and market participants are prepared through the development of market rules and market manuals, processes and tools, and ultimately testing and training.
Your willingness to maintain the momentum by continuing to share your input and perspectives will be critical as we continue on the path to making the benefits associated with these fundamental market reforms a priority.
Jessica
What we're working on
Schedule update
The Market Renewal Program is a large, multi-year and complex project, that has a lot of interdependencies. As with any large-scale project, there can be delays that have ripple effects to the ultimate go-live date. Efforts have been undertaken to reassess the existing schedule to account for some pressures, including the need to take into account design considerations influenced by stakeholder feedback, vendor related constraints and the resulting impact on the development of market rules and manuals while ensuring we deliver value to Ontario ratepayers.
As a result of this work, the revised schedule is extended to a new in-service date of November 2023. The scope has not changed, and an estimated $800 million in system benefits is expected to be realized in the first 10 years after implementation.
At the March 22 Stakeholder Engagement Day, an update on the implementation phase market rules and manuals engagement and schedule (PDF) was shared.
Stakeholders can expect to see the batches with the revised schedule:
|
Batch |
Review Start |
Duration (approx.) |
|
Market Entry and Prudential Security |
October 13, 2020 |
4 weeks |
|
Market Power Mitigation |
September 2021 |
16 weeks |
|
Calculation Engines |
Q1 2022 |
12 weeks |
|
Market Settlement, Metering and Billing |
Q3 2022 |
18 weeks |
|
Market and System Operations |
Q4 2022 |
24 weeks |
Note: Dates are tentative.
Following the posting of each batch of materials, an engagement meeting will be held, stakeholders will submit written feedback, and the IESO will respond to the feedback and post revised rules and manuals. Stakeholder feedback on the draft market rules and manuals will be summarized after each batch is released and provided to the Technical Panel and IESO Board of Directors.
Updated versions of the Reference Levels and Quantities written guide and FAQs now available
Updated versions of the Reference Levels and Reference Quantities written guide, instructions and FAQs are now available on the IESO website. Both tracked and clean versions are available that provide additional clarity.
Related IESO news
Engagements Launched to Enable Increased Participation in IESO Markets
The Enabling Resources engagement will seek stakeholder feedback on an integrated plan outlining the sequencing, timing and scope of activities by the IESO to enable existing electricity resources to provide services in the renewed Ontario wholesale market that they cannot, or cannot fully, currently provide.
The engagement on the Hybrid Integration Project will identify participation model(s) to enable hybrid-generation resources in the IESO-administered markets and have the capability to support Ontario’s future system needs.
Stakeholders are invited to review the engagement plans for each of these initiatives and participate in upcoming meetings.
Improving Awareness of System Operating Conditions Engagement
System operating conditions are communicated throughout each day to stakeholders who use this information to plan and prepare their interactions with the market. This new engagement will review what the IESO communicates to stakeholders through advisory and operating state notices with the goal being to improve awareness of system operating conditions.
Key dates
- April 20 – Technical Panel voted to provisionally recommend – Implementation Phase Market Rules and Manuals Batch 1
- April 22 – Engagement Day Update: Testing, Training, and Market Participant Readiness: a high-level overview of the upcoming testing and training activities and future opportunities for engagement
- May 27-28 Engagement Day – Independent Review Process for Market Power Mitigation
- June 16 – Technical Panel Vote to provisionally approve – Implementation Phase Market Rules and Manuals Batch 1
Reminder
Volunteer recruitment is underway for a Technical Advisory Group to advise on plans for tool development, training and testing. Interested stakeholders can email engagement@ieso.ca by May 14. Please indicate which sector you represent, and key technical skills or relevant background.
Did you know?
Electricity markets require a mechanism to cost-effectively transition from day-ahead scheduling to real-time operations. While a day-ahead market can efficiently schedule resources to meet the following day’s expected demand, conditions can and typically do change after the day-ahead scheduling process is complete. There may be changes in Ontario demand due to weather conditions or changes in supply from variable generators, such as wind.
Electricity markets evaluate bids and offers from all resources between the clearing of the day-ahead market until real-time operations, known as the pre-dispatch timeframe. This evaluation addresses deviations between day-ahead and real-time in order to reliably meet real-time demand at the lowest possible cost.
MRP’s Enhanced Real-Time Unit Commitment will help ensure when changes in system needs arise in the pre-dispatch time frame, the most cost-effective set of resources will still be available to meet demand in real-time.