Creating a Single Version of Operational Truth- Applying Digital Solutions to Bridge Generation and Trading Teams
(Room Garuda 7B, 1st Floor)
19 Sep 18
2:30 PM
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4:00 PM
Tracks:
TRACK F - Capitalizing on Digitalization
By 2030, IEA anticipates that renewables and small scale distributed generation will account for nearly a quarter of power generation. As a result, the revenues of conventional assets will move from base load generation revenues to capacity payments for grid firming and ramping. Many of the world’s conventional thermal assets, some with 30 years of operation or more, were designed for base load operation. For conventional power generation companies operating in increasingly volatile markets, the importance of accurately defining plant physical characteristics and cost profiles has never been more crucial. In addition to making better trading/dispatch decisions, conventional thermal plant operators are cycling more frequently and increasing ramp rates, all of which risk accelerating maintenance intervals and costs. While there is significant risk in operating conventional assets in new modes, the underlying business processes that drive dispatch/trading decisions have changed very little over the past twenty years. For day ahead markets, generation teams rely on highly static models to forecast their capacity, heat rate and start cost estimates for dispatch/trading teams’ day ahead decisions. Current day, digital technology can improve interactions between dispatch/ trading and generation teams y providing a single version of truth to inform day ahead, power market operation decisions. Improved connectivity between digital trading models and generation control systems, as well as broader adoption of closed loop control technologies, allow power generators to make better decisions in day ahead markets while securing consistent operator performance to reduce maintenance impacts. This session will present solutions that bridge the functional gaps between trading/dispatch and operations and an econometric study to illustrate financial benefit of the solution for conventional plant revenues in volatile markets.