Day-Ahead Commitment Process (DACP)
The IESO originally introduced the DACP in June 2006 to address reliability concerns. The DACP allows the commitment of certain dispatchable resources, and the economic scheduling of imports in the day-ahead time frame, in return for a financial guarantee.
The orginal DACP provided the following:
- A dependable view of the next day’s available supply (capacity and energy) and anticipated demand.
- An opportunity for participants to use their energy-limited resources to most effectively meet reliability needs.
- An incentive to imports that have been scheduled day-ahead to flow in real-time.
- An incentive to ensure sufficient internal generation resources are on-line in real-time.
- A way to mitigate the financial risk of commitment for importers and generation facilities.
- A mechanism for us to commit generation facilities, with the participant’s agreement, when market-driven attempts don’t meet reliability needs.
Changes were later introduced to the DACP in order to enhance the efficiency of the process for scheduling and committing resources, while continuing to ensure reliability. These new or revised features include the following:
- Optimization of energy and operating reserve over a 24-hour dispatch day.
- Optimization using total costs for not quick start generation facilities (i.e., start-up, speed-no-load, and incremental energy costs via three-part offers).
- Revisions to cost guarantee principles.
- Revisions and additions to failure charges.
- Inclusion of exports and linked wheel transactions.
- A model for combined cycle facilities that provides better scheduling of these facilities.
- A daily opportunity to revise certain parameters associated with generation units when the technical characteristics of the facility change.