1. Jump to first page National Instantaneous Reserves Market Vladimir Krichtal Transpower New Zealand

2. Jump to first page 2 HVDC transfer model NI SI Power transfer Reserves Transfer

3. Jump to first page 3 Economics behind reserve transfer Reserves Reserves price Risk 0 New Reserve price Reserve price function Reserve price New Reserves price function Local Reserves cleared Reserves Import Reserve Revenue saving Reserve price decrease

4. Jump to first page 4 Frequency Stabiliser and Instantaneous Reserves Sharing Time (sec.) Reserves sharing (MW) 30sec Frequency stabiliser dynamic Instantaneous reserves sharing Guaranteed reserves sharing level 250 MW

5. Jump to first page 5 500100 800 250 0 -400 Amount of time (%) North received (MW) -250 Power transfer NI reserves transfer SI reserves transfer HVDC load duration curve & reserves transfer ability

6. Jump to first page 6 Structure of power and reserves flows at the HVDC line NI Reserves RampUp NI power transfer NI & SI Modulation Limits 0 Power flow limit overload Power flow limit - stable state Power dead band SI Reserves RampDown SI reserves transfer NI reserves transfer

7. Jump to first page 7 Existing Risk-Reserve model ILR Gn RiskG1 Risk Manual Risk DC Risk HVDC Zone Res. pool Biggest Zone Risk = max(G1,..,Gn,Man,DCE,DCECE)= G1 GEN Island’s Reserve Price

8. Jump to first page 8 New Reserves model n HVDC reserves transfer capability. Using instantaneous reserves from one reserve zone to cover generation risks in the other reserve zone. n New reserves price structure.

9. Jump to first page 9 Proposed Risk-Reserves model ILR G2 RiskG1 Risk Manual Risk G1 Res pool HVDC G2 Res pool Man Res pool HVDC Res pool Res Export Res Import GEN DC Risk G1 Res pool price

10. Jump to first page 10 New Reserves model (1)

11. Jump to first page 11 New Reserves model (2)

12. Jump to first page 12 Reserve transfer constraints (1)

13. Jump to first page 13 Reserve transfer constraints (2)

14. Jump to first page 14 Zonal reserve price

15. Jump to first page 15 Old- New Reserves Revenue Difference

16. Jump to first page 16 The SPD model prototype : n HVDC configuration aggregation. n HVDC Losses adjustment. n Estimating parameters of HVDC reserve transfer capabilities. n The SPD prototype coding for simulation a new SPD model with HVDC reserve transfer ability.

17. Jump to first page 17 Reduction of Energy and Reserves revenue and cost: n Reserves sharing between islands. n Co-optimisation between Energy and Reserves. n Applying shadow price of each binding risk in case of multiple risk contingency instead of one price for each reserve zone.

18. Jump to first page 18 Revenue Difference (May 2004)

19. Jump to first page 19 Total Cost Difference (May 2004)

20. Jump to first page 20 Results  Total revenue saving reaches $9.6m. over 4 months.  Net economic benefit reaches $0.68m. over 4 months.