On October 30, we will be holding a webinar about the New York ISO (NYISO) market. In particular we’ll look at the data, analytic and integration challenges around this market and some of the ways in which ZEMA can help.
In the coming few weeks we’ll dissect each of these challenges in blogs and discuss how these challenges can be resolved through the use of a well-equipped enterprise data management system.
The New York Independent System Operator (NYISO)
The NYISO was created to fulfill the Federal Energy Regulatory Commission (FERC) mandate to provide fair and open access to the electrical Markets in New York. In 1998, FERC conditionally authorized the establishment of the New York Independent System Operator, but it wasn’t until 1999 that NYISO was up and running (The Evolution & History of NYISO).
NYISO operates the high-voltage reliable transmission and generation of electricity to the state of New York through “11,000 miles of high-voltage transmission and the dispatch of over 500 electric power generators (NYISO).
NYISO’s core purpose and responsibilities can be broken down into four main areas: reliability (managing transmission lines and generating units “on a minute-to-minute basis, 24 hours-a-day, seven days-a-week”), markets (“administering and monitoring New York’s wholesale electricity markets, which average 7.5 billion annually”), planning (“conducting long-term assessments of New York State’s electricity resources and needs”), and technology (“developing and deploying state-of-the-art technology”) (NYISO). The current markets trade an average of $7.5 billion in electricity and related products annually.
Some key points on the energy markets are that NYISO runs day-ahead and real-time markets for electricity. In addition, the NYISO handles the scheduling of direct transactions bilaterally -between buyers and sellers.
According to NYISO, some statistics regarding the transactions are as follows: “Roughly 98% of energy is scheduled in the day-ahead market, while the remaining 2% is accounted for in the real-time market.” Bilateral contracts count for nearly half of the energy settled in the day-ahead market (NYISO). The NYISO is also a highly interconnected market, tied directly to PJM, IESO, Hydro Quebec and NEISO. All of these interties mean that large players in the NYISO are also concerned with loads, net flows and pricing within each of these mark ets.
From a data perspective, capturing data from multiple markets and normalizing all of it is difficult, time consuming and costly. Automating this process is essential to efficiently trade and manage risk in these markets.
Furthermore, the data requirements go well beyond just power markets. Most clients that we see with exposure to NYISO are armed with an arsenal of weather forecasts, natural gas prices and storage volumes. Multiple complex forward curves are being utilized extensively to better understand the dynamic New York area. To this end, the ZEMA Suite provides a set of tools to easily collect, normalize and validate all of this data. Our data collection tool can schedule the collection of virtually any digital data source regardless of the frequency or format. This includes all public, private and behind certificate data that the NYISO publishes. ZEMA’s curve building capabilities provide additional value to those who use our software.
To learn more about how the ZEMA Suite helps to resolve this data challenge, please register for our upcoming webinar.