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if FRRP <= min(TPmin , SRMC+) then PT = -10
PT for the next three dispatch intervals
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The latest dispatch price (ActRRP) is also included in the definition of PT for the first three dispatch intervals. Hence the following definition applies: iff t <= current_datetime + m then if min(ActRRP, FRRPt) > max(TPmax , SRMC+) then PTt = 10 if min(ActRRP, FRRPt) > min(TPmax , SRMC+) and min(ActRRP, FRRPt) <= max(TPmax , SRMC+) then PTt= 1 if min(ActRRP, FRRPt) > min(TPmin , SRMC+) and min(ActRRP, FRRPt) <= min(TPmax , SRMC+) then PTt = -1 if min(ActRRP, FRRPt) <= min(TPmin , SRMC+) then PTt = -10 The reason to include ActRRP for the first three dispatch intervals is that we have found earnings outcomes can be consistently improved when the dispatch price is below SRMC but the forecastRRP is greater than TPmax. Effectively the price forecast is not reflecting actual price outcomes and hence without considering dispatch price the bid allocation can maintain volume allocation to priceband 1 which ensures a positive target even though prices are below SRMC. |
Price_phase (PP)
A Price_phase (PP) is assigned to each dispatch interval and is a function of the current and future PT. The idea is to characterise the future price expectations beyond any given dispatch interval. The PP is defined as follows.
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The physical trader has an important role in selecting appropriate values for TPmin , SRMC, TPmax and the pricebands as bid.
Review the supply curve around your SRMC (say -$40, an example is shown below).
Choose a price point that is 100MW (say) below your SRMC but where the price point is not too much less than SRMC (enter this price point under Settings/Algo Bid Parameters as trader priceband min, TPmin). In the example I’ve chosen -$52.
Similarly choose a price point 100MW (say) above your SRMC but where the price point is not too much greater than SRMC (enter this price point as trader priceband max, TPmax). In the example I’ve chosen -$35.
Then choose PB2, PB3, PB4 and PB5 as shown below.
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Note that pricebands and trader priceband min and max are mostly static numbers. They should only be adjusted to fine tune results or when there is a change to the SRMC. In total the above requires 6 pricebands, the four described above plus PB1 and PB10. PB6 - PB9 should be chosen either to provide spot trading flexibility (for example portfolio optimisation) or for the rare occasion when FCAS liability is significant. Otherwise PB6-9 is effectively redundant.