Melissa SeymourMidwest Market StructureIberdrola Renewables
June 7, 2010Mid-America Regulatory ConferenceKansas City, MO
Integrating Renewables on the Grid: Meeting the Challenge of the Midwest's Energy Future
Elk River Wind Power Project, Kansas
Iberdrola Renewables:A Leader in Execution
… with excellent growth prospects
A collection of exceptional assets…#2 developer in the U.S. with nearly 3.6
GWs(1,311 MWs of wind started up in 2009)
851 employees in 28 U.S. states,DC, and Canada
621 MW of CCGT & peaking capacity on the strategic CA-OR border
155 BCF of owned & contracted natural gas storage positioned for a volatile future
U.S. represents 1/3 of earnings
24.5 GWs of wind development pipeline is in the U.S.
US Renewables
Corporate Support
Wind Power Gas 3,600+ MW 521 MW CCGT
100 MW peaking155 BCF Owned
& Contracted
Updated Feb. 23, 2010
Mid-Continent Wind Assets
Updated March 1, 2010
Operating wind projects
MID-CONTINENT REGION
MinnDakota150 MW Owned
Flying Cloud43.5 MW Owned
Elk River150 MW Owned
Moraine 51 MW Owned
Trimont 101 MW Owned
Winnebago20 MW Owned Providence
Heights72 MW Owned
Top of Iowa II80 MW Owned
Moraine II 49.5 MW Owned
Elm Creek99 MW Owned
Buffalo Ridge50.4 MW Owned
Farmers City146 MW Owned
Penascal202 MW Owned
Barton Chapel
120 MW Owned
Barton160 MW Owned
Rugby149.1 MW Owned
Streator Cayuga Ridge300 MW Owned
U.S. Markets for Renewable Energy:
Those states ~= 50% of US KWh (map shows population density)
States with circles:• RPS• high KWh use• high electricity price
28 states with mandatory RPS requirements
Source of maps: UCS, US Census
Connecting Renewables to Loads
• The best wind resources in the U.S. are located in areas where the grid is the weakest
Source of maps: NREL, Platts
Wind Integration Solutions
HighCost
LowCost
Source: UWIG
Low Wind Penetration Level
High Wind Penetration Level
Markets
Additional
Flexible
Generation
Wind
Curtailment
Storage
Accessing Intra-hour flexibility
Price Responsive Load
Demand Response
Dynamic Scheduling
Simple Cycle GT
Combined Cycle GT
In Range of 1-2%
Pumped Storage
Batteries
Flywheels
SMES
CAES
Capacitors
PHEV
A
ccurate
Forecasting
Real time forecasting
Centralized Forecasting
Integrating wind is a cost issue, not a reliability issue
Mid-Continent Market Attributes for Optimal Wind IntegrationFavorable Areas for ImprovementLarge balancing areas Incenting and utilizing accurate wind
forecasts
Robust regional interconnections (MISO and SPP)
Construction of transmission infrastructure to link remote resources to loads
Access to intra-hour flexibility Ensuring low-cost integration solutions are implemented
Flexible transmission service
Robust regional transmission planning processes
8
Summary
• The Mid-Continent has many favorable market attributes for cost-effectively integrating renewables
• Successful wind integration in the Mid-Continent will require transmission expansion - transmission costs are a small fraction of the total costs of the power system
• Incenting accurate forecasting and incorporating forecasting in system operations will significantly reduce the uncertainty about future wind output
• Need to continue to develop market rules, processes, incentives, and products that ensure that low-cost wind integration solutions are developed prior to implementing higher costs solutions