The Regulatory Assistance Project 50 State Street, Suite 3Montpelier, VT 05602
Phone: 802-223-8199www.raponline.org
Renewable Integration in the US
Institute of Energy, Economics and Financial Analysis
New York City
Presented by Richard Sedano
March 15, 2016
Introducing RAP and Rich
• RAP is a non-profit organization providing technical and educational assistance to government officials on energy and environmental issues. RAP staff have extensive utility regulatory experience. RAP technical assistance to states is supported by US DOE, US EPA and foundations.
─ Richard Sedano directs RAP’s US Program. He was commissioner of the Vermont Department of Public Service from 1991-2001 and is an engineer.
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VisionOne Path: An Integrated Grid
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US Interconnections
Connections between interconnections are with DC lines that can be dispatched
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Renewable Integration
• Technical analysis of Interconnections
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Renewable Integration
• Technical analysis – green lights
• The question is no longer “is there a reliability threat from high penetration renewables?”
• The task is to maintain reliability while intensive renewables are deployed
─ Doable
─ Different
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Question: where will RE come from?
• A few years ago: large scale Mid-continent wind dominant source
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Where is the Biggest Wind?
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Question: where will RE come from?
• A few years ago: large scale Mid-continent wind dominant source
• Emerging Deployment Rate Questions:
– Distribution deployment (especially solar PV)
– Offshore wind
– Storage
• Thermal (e.g. Grid Integrated Water Heaters, Ice)
• Electric (Battery, including Electric Vehicles)
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Integration Challenges: Management, Policy alignment
• Wholesale/Transmission • Retail/Distribution
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Wholesale/Transmission Topics
• RTO receptivity (regional transmission organization)
• Western Govs Association (WGA) measures
• Critical role of flexible resources and monetizing their value
• CREZ (competitive renewable energy zones)
• Siting (single state, multi-state)
– Utility owned facilities vs. independent transmission
• Interconnection
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The Bulk Power System in Context
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Bulk Power System• Transmits power from
generators at extra high voltage.
• The higher the voltage, the greater the amount of power transmitted
• Some capacity needs to be reserved in case something big fails
• Transformers step down the voltage for delivery to us.
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RTOs/ISOs
ReliabilityMarketsPlanningCost Allocation
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Regional Transmission Organizations
• Manage reliability
– Enough power -- adequacy
– Smooth operations -- stability
• Manage markets
– Energy
– Capacity
– Ancillary services
• Governance
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Less revenue from energy Means
More revenue needed from capacity
& ancillary svc
Challenges to Institutions
• From Large Scale RE
– Congestion, low prices, curtailment risk
– Operating during low demand, high RE periods
– New Contingencies
– Forecasting resources not under operator control
• From small scale RE
– Control, forecasting variability, contingencies, replacing ancillary services
• New Transmission strengthens the system, but is costly, we would hope to avoid it
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WGA Report: Nine Paths to Big RE
• Sub-hourly Dispatch and Scheduling
• Dynamic Transfers bet. Balancing Auth.
• Energy Imbalance Market
• Forecasting: Weather, Wind, Solar
• Geographic Diversity
• Reserves Management
• Demand Response
• Generation Dispatch
• Generation Flexibility
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Tenth Western Initiative
• Expansion of California ISO
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Gross/net demand comparison
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Little demand for baseload, big demand for mid-merit, demand for peaking pretty much unchanged
Gross Demand Net Demand
After taking all wind and solar, this is the operator’s task
Flexible generation is just one piece of the puzzle
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Source: IEA Energy Technology Perspectives 2014
Flexible generation is just one piece of the puzzle
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Source: IEA Energy Technology Perspectives 2014
Principal Sources of Flexibility
• Customers
– Demand response
– Storage
• The Grid
– Load following capacity in thermal plants
– Storage
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Demand Response
• Progress
• Much more to do
– Markets for flexibility (ramping, cycling)
• Ancillary Services
– Better planning to identify valuable times and locations
– Pricing to motivate customers
– Programs to connect services with customers and monetize benefits
– Technology to operationalize DR benefits
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Eastern Wind Integration and Transmission
Study
20% wind with no offshore
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Eastern Wind Integration and Transmission
Study
20% wind with
aggressive offshore
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Eastern Wind Integration and Transmission
Study
30% wind with
aggressive offshore
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Distribution/Retail Topics
• Distribution planning, platform, IDSO
─ IDSO: independent distribution system operator
• Different physical Upgrades needed
• Two-way/all-way operations
• Interconnection
• Teaching the Duck to Fly
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The Distribution System in Context
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Distribution System• Delivers power from
step down transformers• Collects power from
customers, feeds excess into the transmission system
• Interconnection assures safety in case of distribution outage
• Protection systems assure customer generation does not damage transformers
Typical Utility Distribution Planning
• Opaque process
– Prime Directives:
• Safety
• Do not drive rate increases
– Typical concerns:
• Address load growth
• Address end of life assets (replace before failure)
• Deferred maintenance is raising costs
• Now comes Lots of Distributed Generation
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Fully under state PUC or local municipal/cooperative control
Updated Distribution Planning
• Integration Capacity
• Locational (nodal) values
• Forecasting Distributed Energy Resources
• Updated protection systems
– Especially to protect transformers at high DG, low demand times
• DG on both sides of the meter
• Demos, Deployment, Data
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41PG&E’s Distribution Resources Plan (DRP) 19
Publishing Integration Capacity on PG&E RAM Map
PG&E analyzed all three
phase line sections for all
the 3,000+ distribution
circuits
• Results for approx.
102,000 line sections • Average of 34 line sections per
feeder
• Largest number of line sections for
one feeder was found to be 310
• Locational results
published by each DER
type
• Granular down to fuse
devices
• Initially colored by PV
Results • Line Section IC / Feeder IC
• Red, Amber, Green color
scheme with green being higher
capacities
An N-Way System
An N-Way
System
An N-Way System
An N-Way System
It’s Easy To Spot a Water Heater
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Dramatic Impact on Net Load
Ten Ready Solutions to Accommodating Growing PV
• Teaching the Duck to Fly
– 2nd Edition emphasis on water
• Pumping
• Heating
• Ice
• Storage
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Role of the Utility
• Delivery, yes
• A “Platform” provider
─ Enabling services, policy goals
• A distribution system operator (like an RTO?)
─ Should an independent entity, IDSO, do this?
• How does the utility of 2030 earn revenue and net income
─ Fewer energy/delivery sales, more services?
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Perspective Question
• How should the integration challenge be framed?
─ How will new renewable sources fit into the existing grid?
─ New and more renewable sources are a given, so how will the grid adapt to them?
• Note that in the first, legacy assets and process are not assumed to change, while they are assumed to change in the second
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Pivotal Question
• If PV takes off toward ubiquity…
─ Will we need that much more transmission?
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Resources
• National Renewable Energy Lab
─ Renewable Energy Futures
─ Integration Studies, East and West
• Teaching the Duck to Fly
• Clean Energy Keeps the Lights On
• Designing DG Tariffs Well
• All the RTOs have deep websites
• EU Roadmap 2050
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About RAP
The Regulatory Assistance Project (RAP) is a global, non-profit team of experts that focuses on the long-term economic and environmental sustainability of the power sector. RAP has deep expertise in regulatory and market policies that:
Promote economic efficiency Protect the environment Ensure system reliability Allocate system benefits fairly among all consumers
Learn more about RAP at www.raponline.org
Regional Relationships - ERCs
Regional Relationships - Interconnections
Connections between interconnections are with DC lines that can be dispatched
Regional Relationships – RTOs/ISOs
ReliabilityMarketsPlanningCost Allocation
Regional Relationships – Control Areas
AESO – Alberta Electric
System Operator
AZPS – Arizona Public
Service Company
AVA – Avista Corporation
BANC – Balancing
Authority of Northern CA
BPAT – Bonneville
Power Admin
Transmission
BCHA – British Columbia
Hydro Authority
CISO – California ISO
CFE – Comision Federal
de Electricidad
DEAA – Arlington Valley,
LLC
EPE – El Paso Electric
Company
GRMA – Gila River
Power , LP
GRIF – Griffith Energy,
LLC
IPCO – Idaho Power
Company
IID – Imperial Irrigation
District
LDWP – Los Angeles
Dept. of Water and
Power
GWA – NaturEner Power
Watch, LLC
NEVP – Nevada Power
Company
HGMA – New
Harquahala GenCo LLC
NWMT – NorthWestern
Company
PACE – PacifiCorp East
PACW – Pacificorp
West
PGE – Portland
General Electric
PSCO – Public Service
of Colorado
PNM – Public Service
of New Mexico
CHPD – Chelan County
PUD
DOPD – Douglas
County PUD
GCPD – Grant County
PUD
PSEI – Puget Sound
Energy
SRP – Salt River
Project
SCL – Seattle City Light
SPPC – Sierra Pacific
Power Company
TPWR – Tacoma Public
Utilities
TEPC – Tucson Electric
Power Co.
TIDC – Turlock
Irrigation District
WACM – Western
Colorado Missouri
Region
WALC – Western Lower
Colorado Region
WAUW –Western
Upper Great Plains
West
WWA – NaturEnur
Wind Watch, LLC
