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Dispatch, LRA and FTR Simulators
In 2009 Transpower developed some LRA simulators to help explain the Locational Rental Allocation (LRA) concept then proposed by the Electricity Commission. We have included a two-node model and modification of our 3 and 7 node dispatch models to include LRAs.
There are three models representing different facets of the LRA concept:
| 2 node | 3 node | 7 node | |
|---|---|---|---|
| Representing | Simplest LRA case | One island or national LRA | Two islanded LRAs with interconnecting HVDC FTR |
| Full LRA formula with participation factors | Yes | Yes | |
| Simpler LRA formula | Yes | Yes | Yes |
| Includes options for treatment of HVDC | - | - | Yes |
| Includes purchaser hub/zone as counterfactual | Yes | - | - |
| Automated sensitivity analysis | Yes | - | - |
| Losses | - | - | - |
The LRA formulae used in our models are based on our understanding of the Electricity Commission and its consultant’s papers on the subject, aided by useful discussions with Electricity Commission staff, consultants and members of the electricity industry. The simpler formula used in the seven node model is developed by Transpower and works off prices directly. The simplified formaula does not require participation factors.
Download the simulators
The simulators are Excel programs, so you need to download them to disc before you run them.
NB - these models are for demonstration purposes only and may not be robust to entry of extreme values and conditions.
Two-node dispatch and LRA model
Transpower two-node LRA model [184kB]
The two-node model is a basic simulator that introduces LRA concepts and financial flows on a simple two node system with two trading periods (constrained and unconstrained). It includes a full sensitivity analysis, so that the impact of LRA allocations on marginal cost pricing signals can be observed.
Three and seven-node dispatch, LRA and FTR simulator
- Excel must be set up correctly first
- Follow the installation instructions provided in the pdf below carefully.
FTR & LRA Simulator Instructions [159kB]
Using the simulators
The three and seven node LRA simulator is a modification of the Dispatch and FTR simulator extended to include LRAs.
The Dispatch and FTR simulator is designed to demonstrate the workings of:
- security constrained economic dispatch
- the consequent nodal prices and rentals
- financial transmission right auctions, awards and settlement
The three and seven-node LRA simulators add an LRA calculation that automatically updates for any new dispatch.
The seven-node model (which in the Dispatch and FTR simulator provides a very basic representation of New Zealand’s North Island grid) has been modified to represent a two island system to allow exploration of the Commission’s option of a hybrid LRA system, with two island LRA zones and FTRs on the interconnecting HVDC. For simplicity of construction, the seven-node LRA model does this without changing node names, so please don’t take them literally.
The LRA model retains the FTR model, but FTRs cannot be used as well as LRAs, as they are both funded by the rentals. The simulator does not check this, and models FTRs and LRAs independently.
Feedback
We hope you find the simulator useful and informative. We welcome feedback on it - use the feedback function in the simulator to let us know what you think.