2012 TRANSMISSION PLANNING WIND INTEGRATION CHALLENGES IN KANSAS AND DEVELOPMENT CONFERENCE

Transcription

1 2012 TRANSMISSION PLANNING AND DEVELOPMENT CONFERENCE WIND INTEGRATION CHALLENGES IN KANSAS NOMAN WILLIAMS V.P. TRANSMISSION POLICY SUNFLOWER ELECTRIC POWER CORPORATION SEPTEMBER 12, 2012

2 Outline Who are we? Kansas wind resources Integration Issues Questions o Economic Benefits o Energy Storage o PTC Issues o Gas Pricing

3 Sunflower Background Formed in 1957 Six member cooperatives include o Lane-Scott Electric Cooperative o Pioneer Electric Cooperative o Prairie Land Electric Cooperative o Victory Electric Cooperative o Western Cooperative Electric o Wheatland Electric Cooperative Headquartered in Hays, KS

4 Mid-Kansas Electric Company, LLC (Mid-Kansas) Background Formed to purchase the Kansas assets of Aquila, Inc. Six Member Owners include o Lane-Scott Electric Cooperative o Southern Pioneer Electric Company o Prairie Land Electric Cooperative o Victory Electric Cooperative o Western Cooperative Electric o Wheatland Electric Cooperative Headquartered in Hays, KS Sunflower performs all maintenance and operations of the Mid-Kansas assets.

5 Service Area

6 Kansas Transmission System & Wind Resources Map 6 A Touchstone Energy Cooperative

7 Combined Generation - Sunflower 43% 2011 System Peak 1,143 Natural Gas Wind 20% Coal 37% Based on Name Plate

8 Wind Integration - Sunflower 8 Kansas is a prime site to harvest wind resources o Wind farms currently make up 20% of SEPC energy for Member load Current Wind Power Purchase Agreements o As of December 2012, 229 MW (name plate) of purchased wind power

9 2011 Kansas Energy Resources c

10 10 Installed Wind/Future per state (GW)

11 11

12 Installed Wind Sunflower Transmission Kansas Wind Projects Existing projects 1,405 MW Additions in ,309 MW In 2012 Kansas will more than double installed capacity Kansas leads nation in wind under construction Kansas ranks 2 nd in US for wind resources (NREL) Currently 9,400 MW in queue Projects connected to Sunflower transmission Existing operating projects 667 MW Additions in MW Approximately 5,000 in active queue (or signed GIA) in Sunflower BA

13 20% Wind Integration Regional Transmission Upgrades 13 Conceptual transmission plan to accommodate 400 GW of wind energy (AEP 2007) *Source: NREL, July 2008 Report

14 Maximizing Energy Transfers Using New EHV Transmission from U.S. Areas with High Solar & Wind Resources High Solar High Wind & High Solar

15 Wind Integration Challenges 15 Wind Injection: operating and maintaining the power system with added variability and uncertainty of available power o Grid standard and operation (Balancing Authority) o Gas turbines must be online to chase the wind o Voltage Criteria Transmission: upgrades needed to connect new wind generation to the load Distribution: impact of high wind penetration on existing distribution facilities

16 Studies Needed for Regional Transmission Planning 16 Reduction in voltage stability Margins Q-V analysis for voltage stability margin impact Impact of high voltage capacitance when lines are lightly loaded Use of reactors Back-to-back switching reactor Transient overvoltage Temporary Overvoltage (TOV), Transient Recovery Voltage (TRV) & Rate of Rise of Recovery Voltage (RRRV) Harmonic voltage distortion and resonance frequency

17 Wind Integration Transmission Challenges Multiple generator tap substations on long (100+ miles) 345 kv lines may cause the addition of fixed shunt reactors Challenges with fixed shunt reactors o Required due to switching surge issues and are determined through special study (EMTP study) o Cannot be switched off during periods of heavy loading and can possibly cause low-voltage conditions during heavy loading (as opposed to switchable shunt reactors) o Increase the impedance of the line reducing the amount of ATC available on the line

18 Wind Integration Transmission Challenges 18 Grid Losses Power generated in Kansas and moved to other regions creates additional losses that may deplete available reactive resources needed for N-1 & N-2 conditions Reactive Power o Reactive Power is reduced as conventional generation is recommitted Changes to Most Critical contingencies Location of new renewable generation Inertia (Frequency Regulation) o System inertia and frequency regulation capability is reduced as conventional generation is recommitted

19 Wind Integration Local Transmission Challenges 19 Transmission system infrastructure and lead time o New wind means new transmission development o Wind and solar projects can be built in less than 2 years while transmission lines take 3 to 5 years or longer o Delays due to excessive number of transmission outages for construction Legal Period for Connection Period for Renewable Plant Grid and Substation Transmission Line 0 2 Years 4 6

20 Economic Benefits 20 Jobs o Localized manufacturing o Installation o Supply and maintenance Landowners receive land use payments Benefits the utility by: o Utility savings (O&M, fuel, etc. expenses), thus passed on to ratepayers o Estimated savings due to reducing traditional emissions

21 Economic Benefits 21 Investment in wind power is an investment: jobs in operations and maintenance, construction, manufacturing many support sectors. Total direct and indirect jobs supported in 2011: 2,001-3,000 Annual in kind tax payments by wind project owners: $3.7 million Annual land lease payments: $3.8 million

22 Energy Storage Systems (ESS) / Renewables 22 ESS have the potential to revolutionize the electrical grid as as new renewable generation is developed. Path to commercialization and deployment of energy storage, however, is still unclear What technologies show promise for renewable (wind) generation Compress Air Energy Storage (CAES), Pumped Hydro, Iron Chromium Redox

23 Energy Storage Systems (ESS) / Renewables 23 What renewable issues does ESS address/support frequency regulation, spinning reserves, capacity firming, voltage support Few viable energy storage scenarios have been identified, based on current storage technology, anticipated storage price points, typical utility financing hurdle rates, carbon policy, renewable penetration level,

24 Impacts of the Loss of PTC 24 Loss of the PTC will have a damping effect on renewable wind generation development, Will this drive new RPS (national or state)? The loss of the PTC may drive the development of higher value wind resources Western high plains Dakotas, Nebraska, Kansas, Oklahoma, Texas Only time will tell but from a utility perspective the break in activity will be welcome and will allow Completion of current projects for existing generation interconnections Complete major transmission necessary to deliver existing and committed projects.

25 Impacts of Gas Prices 25 Current gas prices have a negative impact on new renewable development Especially true in areas without RPS Drives the renewable industry to become more competitive Higher value (wind) have a competitive advantage Situation is good for customer/utilities looking for good long-term pricing How long will current gas pricing situation last? What will be long-term impact on the industry?

26 WIND INTEGRATION CHALLENGES IN KANSAS 26 In conclusion: Renewables have a place in the overall resource mix Integration has issues that need to addressed as penetration levels increase especially on smaller systems Renewables develop continues to be highly influenced by external issues beyond the control of the developers and the utility industry. This begs the question is an energy policy that is renewable centric a good long-term policy for consumers?

27 WIND INTEGRATION CHALLENGES IN KANSAS 27 Questions? NOMAN WILLIAMS V.P. TRANSMISSION POLICY SUNFLOWER ELECTRIC POWER CORPORATION