Western Energy Imbalance Market Q4 benefits surpass 12m
NV Energy entry showed significant benefits during initial month of operation
California Independent System Operator (ISO) reports increased benefits realized in the 2015 fourth quarter from the western Energy Imbalance Market (EIM). Total benefits were $12.29 million, which increases the total benefit since the November 2014 EIM launch to $45.7 million. These benefits accrue to all EIM participants and their customers, which now include NV Energy and PacifiCorp, as well as the ISO. The totals are in line with initial projections and as expected, increased participation benefits all EIM participants.
Benefits for October were $2.51 million, down slightly from the summer months because of reduced transmission capacity resulting from a line outage. With the line restored to service, benefits increased again in November to $3.69 million. With NVE’s entry into EIM in December, the benefits jumped to $6.29 million, including $840,000 that accrued to NVE and its customers and also additional benefits to PacifiCorp and ISO customers because of NVE’s participation and additional transfer capability that they bring to the EIM operation.
NV Energy entering the real-time market in December 2015 produced significant benefits because their participation increases transfer capability between the participants. Interregional transfers enabled in EIM allows each balancing area to take advantage of lower cost resources in other areas. Besides the benefits produced by interregional transfers, savings were also realized by avoiding having to reduce renewable resources’ output in the ISO control area during times of oversupply. The total avoided energy reduction for Q4 was 17,573 megawatt-hours, which greatly outpaced the avoided reductions of 828 megawatt-hours in Q3. Avoiding the renewables output reductions in Q4 displaced an estimated 7,521 metric tons of carbon emissions.
To read the fourth quarter report and learn more about EIM, click here.
Steven Greenlee | sgreenlee@caiso.com | 916 608-7170 | 916 990-4295
California ISO Media Hotline | 888.516.6397
250 Outcropping Way | Folsom, California 95630 | www.caiso.com
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The California ISO provides open and non-discriminatory access to one of the largest power grids in the world. The vast network of high-voltage transmission power lines is supported by a competitive energy market and comprehensive grid planning. Partnering with about a hundred clients, the nonprofit public benefit corporation is dedicated to the continual development and reliable operation of a modern grid that operates for the benefit of consumers. Recognizing the importance of the global climate challenge, the ISO is at the forefront of integrating renewable power and advanced technologies that will help meet a sustainable energy future efficiently and cleanly.
