Use Demand Curve Column (optional)
Column Type = Boolean

The optional Use Demand Curve column is used to calculate capacity prices based on the intersection of an input demand curve and the resource capacity stack. Existing resources which don’t clear the capacity market in a given year will not receive capacity payments for that year (that information is recorded in the RMT for use in additional simulations).

NOTE: When set to True, the Capacity Pricing Function and Capacity Price Base columns need to also be populated.

When this column is set to True, demand curve logic is activated for that zone/pool and capacity prices are calculated using a different method. A demand curve for each year is formulated with values using the Capacity Price Base multiplied by the intersection of the reserve margin with the Capacity Pricing Function. Instead of all existing resources with reliable capacity in the system receiving a capacity payment, only those that qualify in each year will receive the payment.

Here is the general approach, after a given LT iteration makes its decisions, Aurora will loop through each of the years and do the following:

If a zone and its pool both have Use Demand Curve specified, Aurora will calculate a capacity price for both and use the highest value for the zone price. In that case, if a resource is determined eligible for capacity revenue in either the zone or pool calculation for a given year, it will receive the capacity payment. In the subsequent iteration, only those resources which were marked as eligible for the capacity prices each year will receive capacity revenue, and their valuation in the next LT decision (MIP) will include the consideration of that revenue. Once the final LT decision has been made, Aurora writes the RMT and includes a special string in the Capacity Revenue Multiplier column to indicate which years the existing resources are eligible for capacity revenue, so the information can flow through to the final run and subsequent non-LT runs.

 Input Tables

 Zone Definition Table

 Use Demand Curve Column


For further assistance, please contact Aurora Support.

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