The Critical Role of Asset Market Operations in Renewable Energy Projects

SYSO has significant expertise in achieving optimal performance and market design for renewable energy projects.  Understanding factors that affect performance in wholesale market integration, energy asset management, and market operations, as well as attaining ongoing project reliability, pose a set of challenges that many asset owners do not generally anticipate or have expertise in. Identifying an experienced market operations partner early in an asset’s design lifecycle can drive significant impact in the project and its overall viability.

Management of a large-scale solar project involves several strategic objectives. First, it is imperative that wholesale market integration processes are seamless and do not interrupt development plans. After the project is live, the day-to-day operation of the asset determines its performance and profitability. SYSO’s approach to solar market operations includes ensuring solar architectures are properly structured to optimize performance around solar clipping, capturing solar clipping with optimally sized BESS assets, real-time solar production monitoring, managing RTUs for wholesale market integration, and more. Planning a successful market integration and revenue stream arbitrage strategy early in a project’s development lifecycle is a best practice that has led to a number of successes for SYSO clients.  

Let’s explore these focus areas in more detail. 

Wholesale Market Integration

Integrating a renewable energy project with the wholesale energy market, particularly an ISO or RTO, presents a number of challenges. It is a multi-step process that involves technical planning and regulatory approval. Let’s explore some of the aspects of renewable energy wholesale market integration in more detail: 

Interconnection requests are an early step in  to the ISO or RTO. This request needs to include the technical details of the project, including its size, location, and forecasted energy output.  Prior to submitting an interconnection request, SYSO can provide input into site feasibility and revenue quality for the prospective asset.  SYSO provides a detailed view of revenue stream availability and quality for assets that are planned for wholesale market integration.

Feasibility & System Impact Study (SIS): The system operator will conduct a feasibility study to determine if the new solar project can integrate with the existing system infrastructure at the project location. This study evaluates transmission capacity and local system constraints. A SIS is also conducted to evaluate the project’s impact on system reliability, specifically local congestion, voltage, and frequency regulation.

Challenges with System Integration: There are several challenges renewable energy asset owners face when attempting to integrate projects with the power system. 

• Transmission Capacity & Congestion: A significant challenge is evaluating the capacity of local transmission infrastructure and local energy congestion in the location of the project. If there is not enough capacity, it can be challenging for the system operator to accept additional power generation without upgrading the transmission infrastructure. 
• Curtailment Risk: Another challenge relates to the system operator’s right to curtail the energy load coming from the new project. If the system cannot absorb the full output of the solar asset, it might reduce or cut off the project’s production capacity. Asset owners must plan for this when forecasting the project’s revenue.
• Regulatory Challenges: Each ISO and RTO has its own set of rules governing how renewable energy generation must operate within the market. Having a clear understanding of these regulations and a plan to adhere to them is critical for the project’s success. 
  

Solar Clipping Capture

SYSO has comprehensive solutions related to solar clipping and solar clipping capture.  Solar clipping occurs when a solar system’s production exceeds system operator imposed or asset limits. The excess energy output is “clipped” or lost as the system cannot handle the production. Please find an example below.  Solar clipping capture involves coupling solar systems with battery energy storage systems (BESS) to capture the additional energy production that cannot enter the power system. This becomes an important element of renewable asset management as that power can later be dispatched in real-time markets for profit.:

Solar clipping losses can be minimized  through SYSO’s professional services related to solar and BESS asset sizing and design. Sizing systems effectively and conducting a thorough financial analysis to determine optimal asset configuration takes significant expertise.  Identifying the right partner for this design phase is imperative to optimizing an assets overall margin potential. 

Production Monitoring & RTUs

Remote Terminal Units (RTUs) play an important role in solar asset management, acting as a communication channel between the solar farm and the system operator. RTUs gather real-time energy production data from solar projects, securely transmitting it to a central control system. These devices ensure that the solar system is dispatching electricity at the right times, adjusting energy output based on real-time power system conditions and needs. Proper management of a solar asset includes production monitoring and output controls to integrate with the power system seamlessly. SYSO has comprehensive RTU solutions to effectively and efficiently manage power system integration and communication.

Ongoing Market Operations

Being online and available to produce power during peak times of day is critically important to solar and or BESS assets.  In the event that an asset trips offline during this peak period, it will not be able to generate energy or charge/discharge it into the right periods.  Managing an energy asset for overall system reliability and uptime is paramount to its commercial success.  Selecting a Network Operation Center (NOC) services provider with a successful track record of alarm management and cycle time to clear or escalate the alarm to the onsite operations & maintenance team is crucial.  SYSO’s NOC offering includes active reliability management solutions with issue acknowledgement, resolution or escalation in a matter of minutes.  This attention to asset reliability creates significant competitive advantage for our clients.

SYSO offers a comprehensive energy management process that covers the entire lifecycle of a renewable energy asset, from the initial design stages to ongoing market participation. This approach ensures that solar systems are not only effectively commissioned but also continuously optimized for maximum efficiency and revenue generation in the energy market.

Commissioning Support and Revenue Forecasting

SYSO’s expertise begins with commissioning support, providing precise revenue forecasting to align project expectations with market realities. During cold commissioning, SYSO ensures that all systems are thoroughly tested and meet technical requirements. Hot commissioning involves overseeing the activation of the system and verifying that each component operates correctly under real-world conditions. This leads to market commissioning, where SYSO ensures the asset is properly registered and ready for participation in day-ahead and real-time markets.

Data Science and Optimization

SYSO combines cutting-edge data science with hands-on expertise, using a “human in the loop” approach. This means that while advanced algorithms process and analyze real-time data from the asset, SYSO’s experts continuously monitor and adjust strategies to optimize performance. This blend of automated insights and human oversight ensures the solar system is always operating at peak efficiency.

SYSO’s Market Operations and NOC Services

SYSO’s Network Operations Center (NOC) provides around-the-clock monitoring and management to maintain asset availability. The NOC is organized into three rows, each with a specialized role. Front-row operators handle real-time market participation, executing day-ahead and real-time strategies. Second-row trainers and managers focus on process and strategic adjustments, ensuring alignment with market trends. Third-row data specialists drive long-term strategy using in-depth analysis to refine operations, making SYSO’s NOC a powerhouse of expert oversight.

SYSO’s Process for Solar System Operation

Phase I: SYSO’s involvement in an energy project begins well in advance of Notice to Proceed (NTP).  SYSO’s energy market experts provide early stage professional services support to energy developers at this stage to select the most lucrative revenue streams for an asset and manage market processes through asset market integration. For projects bidding into the energy market, SYSO handles the registration as a generator with the relevant ISO. For those entering the capacity market, SYSO will lead and manage offer and qualification processes, including document submissions like permits, interconnection documents, and energy production profiles (8760s), securing capacity commitments for future auctions.

Phase II: As the project progresses, SYSO manages communication with EPC (Engineering, Procurement, and Construction) contractors and OEMs (Original Equipment Manufacturers) to ensure a smooth transition to cold commissioning and later hot commissioning. SYSO drafts and executes test checklists during market commissioning, operating the asset through the initial synchronization tests with the ISO.

Phase III: Once the system successfully completes final tests and initial synchronization with the grid, it goes live. At this stage, the asset is turned over to SYSO’s NOC for 24/7 market operations and ongoing optimization, ensuring the asset’s continuous success throughout its lifecycle.

Want To Learn More About SYSO’s Renewable Energy Asset Operations Program?

SYSO’s end-to-end renewable energy asset operations program is designed to maximize the value of your solar and storage projects from day one through their entire lifecycle. Whether you’re navigating the complexities of commissioning, optimizing real-time operations, or accessing new market opportunities, SYSO’s expertise ensures your assets perform at their best. Contact us today to see how we can help you unlock the full potential of your renewable energy investment and achieve greater returns.