1. 30 Minute Reserves
EPFSTF
January 4, 2019

2. Proposed Reserve Market Architecture
Secondary Reserves
(Renamed from Day-ahead Scheduling Reserves)
Secondary Reserves
ORDCs and Offer Price Caps will be consistent between DA & RT for each product

3. Reserve Product Nesting
30 Minute Reserves
Primary Reserves
Synchronized Reserves

4. Important Terms to Know
Synchronized Reserves
10 minute online resources
MRR = 100% of Largest Contingency
Primary Reserves
10 minute online and offline
resources
Balance met with 10 minute online or offline resources
MRR = 150% of Largest Contingency
30 Minute Reserves
Secondary Reserves
10-30 minute online and offline resources
Balance met with online or offline resources
MRR = 3000 MW (approximately 200% of largest contingency)

5. Reserve Services and Products
30 Minute Reserves
Secondary Reserve Market
Secondary Reserves
(Response in minutes from on and offline resources)
Primary Reserves
(Response in minutes 1-10)
Non-Synch Reserves
Synch Reserves
Reserve Products
Each product has a market.

6. 30 Minute Reserves Participation
A resource will be considered eligible to provide 30 Minute reserves if it…
Is electrically located within PJM
Is synchronized to the grid or
Is not synchronized to the grid but has start-up plus notification time of less than or equal to 30 minutes
Is not part of an active gas contingency

7. Resource Type Eligibility
In general, resources that are available for energy are eligible to provide 30 Minute Reserves if they are able to respond within 30 minutes.
Consistent with the rules for provision of Synchronized Reserves, certain resource types are by default excluded from reserve calculations, except where exceptions have been made
Nuclear
Wind
Solar
Demand Response

8. Secondary Reserve Offer Parameters
Availability
Offer MW
Offer Price
If available for energy, then considered available for secondary reserves
Same rules as 10 minute reserves
Reserve must offer applies to secondary reserves, consistent with rules for synchronized reserve must offer
Consistent with treatment for Synchronized Reserves, PJM will calculate the offer MW for both online and offline resources which are available for energy based on submitted energy offer parameters and Synch Reserve Max MW, with the exception of hydro, energy storage and demand response.
Hydro, energy storage and Demand Resources will have the ability to specify an offer MW amount
Secondary Reserve is a cost-based market.
No offer margin allowed
Each resource’s cost to provide secondary reserves is based solely on lost opportunity cost
Secondary Reserves is a cost-based market so Three Pivotal Supplier test is not required.

9. Allowable Concurrent Assignments
Resources can be committed for secondary reserves if they are committed for the following in the same interval:
Energy and 10 minute synchronized reserve
Non-synchronized reserve
Resources cannot be committed for secondary reserves if they are committed for regulation during the same interval

10. Calculation of Secondary Reserve Capability: Synchronized Resources
For synchronized resources, the secondary reserve capability of each resource will be calculated similar to synchronized reserve capability, except it looks at how the unit can respond in minutes
For online resources:
Secondary Reserve capability = 30 minute ramping capability, limited by difference between EcoMax (or Synch Reserve Max) and dispatch point, minus Synch Reserve capability
For condensers:
Secondary Reserve capability = EcoMin + [(30 min – Condense to Gen time) * Energy Ramp Rate], limited by EcoMax or SpinMax, minus Synch Reserve capability

11. Example Calculation of Secondary Reserve Capability for Online Resource
Example Assumptions:
Eco Min: 20 MW Ramp Rate: 1 MW/min
Eco Max / Synch Reserve Max: 200 MW
Initial Output: 50 MW
Secondary Reserve capability = 30 minute ramping capability, limited by difference between EcoMax (or Synch Reserve Max) and dispatch point, minus Synch Reserve capability
Example 1: Capability is Limited by Ramp Rate
30 Min Reserve Capability: Min (30 min * 1 MW/min, 200 MW – 50 MW) = 30 MW
SR Capability: Min (10 min * 1 MW/min, 200 MW - 50 MW) = 10 MW
Secondary Reserve Capability: 30 MW MW = 20 MW

12. Example Calculation of Secondary Reserve Capability for Online Resource
Example Assumptions:
Eco Min: 20 MW Ramp Rate: 1 MW/min
Eco Max / Synch Reserve Max: 200 MW
Initial Output: 180 MW
Secondary Reserve capability = 30 minute ramping capability, limited by difference between EcoMax (or Synch Reserve Max) and dispatch point, minus Synch Reserve capability
Example 2: Capability is Limited by Eco Max / Synch Reserve Max
30 Min Reserve Capability: Min (30 min * 1 MW/min, 200 MW – 180 MW) = 20 MW
SR Capability: Min (10 Min * 1 MW/min, 200 MW MW) = 10 MW
Secondary Reserve Capability: 20 MW – 10 MW = 10 MW

13. Calculation of Secondary Reserve Capability: Offline Resources
For offline resources, the secondary reserve capability of each resource will be calculated similar to non-synchronized reserve capability, except it looks at how the unit can respond in minutes
Secondary Reserve capability = Eco Min + [30 Minutes – startup time + notification time) * energy ramp rate)], limited by eco max or Synch Reserve Max, minus NSR capability

14. Example Calculation of Secondary Reserve Capability for Offline Resource
Assumptions for Offline Unit:
Eco Min: 20 MW Ramp Rate: 1 MW/min
Eco Max / Synch Reserve Max: 200 MW Time to Start: 15 min
Secondary Reserve capability = Eco Min + [30 Minutes – startup time + notification time) * energy ramp rate)], limited by eco max or Synch Reserve Max, minus NSR capability
Example 1: Unit is limited by Ramp Rate
30 Min Reserve Capability: Min (20 MW + (30 Min – 15 Min) * 1 MW/Min, 200 MW) = 35 MW
NSR Capability: 0 MW (Time to Start exceeds 10 minutes)
Secondary Reserve Capability: 35 MW – 0 MW = 35 MW

15. Example Calculation of Secondary Reserve Capability for Offline Resource
Example Assumptions:
Eco Min: 20 MW Ramp Rate: 1 MW/min
Eco Max / Synch Reserve Max: 35 MW Time to Start: 5 min
Secondary Reserve capability = Eco Min + [30 Minutes – startup time + notification time) * energy ramp rate)], limited by eco max or Synch Reserve Max, minus NSR capability
Example 2: Unit is limited by EcoMax / Synch Reserve Max
30 Min Reserve Capability: Min (20 MW + (30 Min – 5 Min) * 1 MW/Min, 35 MW) = 35 MW
NSR Capability: Min (20 MW + (10 Min – 5 Min) * 1 MW/min, 35 MW) = 25 MW
Secondary Reserve Capability: 35 MW – 25 MW = 10 MW

16. RT Market Clearing Engines & Secondary Reserve Clearing
ASO
ITSCED
RTSCED
Ancillary Services Optimizer
Intermediate Term Security Constrained Economic Dispatch
Real-Time Security Constrained Economic Dispatch
1 Hour Ahead
30 Minutes Ahead
10 Minutes Ahead
Primary Objective: commit inflexible resources, such as condensers and Demand Response based on hour-ahead forecast
Primary Objective: Recommend additional inflexible resources if needed
Recommend additional resources to bring on for energy and create additional reserves
Primary Objective: Dispatch flexible resources to meet the reserve requirements
Can only create additional 30 minute reserves by dispatching more Synch Reserves

17. Changes to Current DASR Market to Align DA & RT 30 Min Reserves
Changes to the Day-Ahead Scheduling Reserve Market are necessary to foster alignment between the DA and RT reserve markets
Change the name of the market to “Day-Ahead Secondary Reserve”
Offer structure follows rules for RT Secondary Reserves
No price specified for offers
Availability is based off of day-ahead availability for energy
Offer MW will continue to be calculated by PJM, except:
Hydro, Demand Resources and Energy Storage can submit offer MW
All pump storage and run of river hydro resources may participate in the market

18. Changes to Current DASR Market continued
Add a sub-zone for DASR, will only be modeled when needed for gas contingencies or other conservative operations
Implement ORDC
Identical ORDCs (MRR and downward slope) for DA and RT 30 Minute Reserves
DASR requirement no longer based on annual average EFORd and day-ahead load forecast error
DASR requirement no longer grossed up for underbid load during Hot Weather Alert / Cold Weather Alert
Balancing settlement for Secondary Reserves replaces revenue forfeiture when resource is unable to provide reserves in RT

19. Secondary Reserve Topics for Further Discussion at January Meetings
30 Minute Reserve ORDC (MRR and downward sloping shape)
Locational modeling of Secondary Reserves
Secondary Reserve Market Clearing Examples
Additional Balancing Settlement Examples