Nodal Pricing

This course will help you build a working knowledge of nodal dispatch and pricing as it applies to the NZ electricity spot market, including simple formulae to apply. It will also build on participant's ability to recognise the cause of certain nodal pricing effects.

Objective: To provide a working knowledge of nodal dispatch and pricing as it applies to the New Zealand electricity spot market, and the ability to recognise the cause of common nodal pricing effects.  Discover how energy and instantaneous reserves are managed to secure the supply of electricity, and how the "spring washer effect" can create price spikes and dips.

Prerequisites: Intro to the Electricity Market.  Alternatively, some familiarity with the electricity spot market including an overview knowledge of the SPD and RMT models, and with the processes and timing of publication of final, and other prices.

Videos:  Prior to the course, participants should watch this short video covering introductory and overview(link is external) material for the course.  After the course, participants will be given access to two videos, one providing more details on the "spring washer effect" and one providing a brief description of how "SFT constraints" are formed.

  1. Market Processes and Models for Dispatch and Pricing
    Dispatch and pricing processes
    Dispatch and pricing models – SPD and RMT
    Dispatch cost function
    Constraints in dispatch and pricing models
    Shadow prices
    Nodal energy prices and reserve prices defined
    Losses and constraints excess
  2. One Node ‘Markets’
    Dispatch and pricing of energy
    Reserves risk offsets
    Dispatch and pricing of reserves
    Dispatch and pricing effects for energy-reserve constrained dispatch
    Dispatch and pricing dominated by reserves
  3. Adding Lines and Losses
    Pricing effects of losses in AC and DC lines
    Linear versus quadratic losses
    Contribution of losses to the ‘losses and constraints excess’
    Loss modelling in SPD
  4. The National Market for Reserves
    Sharing of reserves in the forward and reverse directions
    HVDC operating modes and round power
    Examples and case studies for various combinations of offers and modes
  5. Congested Networks
    Line limits
    Pricing effects of simple line constraints
    Contribution of constrained lines to the losses and constraints excess
    “Spring washer effect” due to line constraints in loops in the Grid

Note: Only simple arithmetic is used in this course.  Simple examples using a few nodes at most are used to assist learning.  Course material may also vary from the above on the day.

Prices shown are GST exclusive - Download Course PDF