Western Energy Imbalance Market and Regional Initiatives

Transcription

1 Western Energy Imbalance Market and Regional Initiatives Presentation to mid-c Seminar Don Fuller Director Strategic Alliances July 27, 2016

2 Today s topics Renewable portfolio continues to grow Energy Imbalance market EIM governance Regional integration Page 2

3 Power industry transformation Wind Unpredictable Output 4769 MW Peak April 12, 2014 Solar Thermal / Photo Voltaic Semi Predictable Output 8030 MW Peak July 12, 2016 Roof Top Solar Semi Predictable Output Behind the meter Residential 3500 MW Estimated Capacity Main Drivers: California RPS GHG reduction Once-through-cooled plants retirement Goals: Higher expectation of reliability Higher expectation of security Smart Grid Situational awareness through Visualization Slide 3

4 Hydro vs. solar monthly production through October ,500 Hydro vs. Solar Monthly Production 3,000 2,500 2,000 GWh 1,500 1, J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O Hydro Production Solar Production Slide4

5 Original estimate of net-load as more renewables are integrated into the grid Typical Spring Day Actual 3-hour ramp 10,892 MW on February 1, 2016 Net Load 11,663 MW on May 15, 2016

6 Energy imbalance market (EIM) is an easily-scalable extension of the real-time market to broader region Supports integration of renewables Enhances reliability through improved situational awareness Brings down costs thru access to a wider array of resources Balancing authorities maintain control and responsibility for the their system Page 6

7 Benefits from the Energy Imbalance Market are consistent with earlier analysis Q Q Q2 2015* Q3 2015* Q4 2015* Q TOTAL ISO PacifiCorp *** ** NV Energy Total Reduced renewable energy curtailment Displaced greenhouse gas emitting resources 112,948 Mwh curtailment avoided in Q1 2016, displacing 48,342 metric tons of CO2. Reduced flexible ramping requirements across footprint 35% savings during Q1 Page 7

8 Wind/Solar avoided curtailment has significantly increased due to EIM. CAISO began tracking avoided curtailment since Apr Avoided curtailment began to increase significantly after NV Energy joined the EIM Nov Page 8

9 EIM Transitional Committee governance proposal approved and implementation underway EIM Governing Body seated June 28, 2016 Carl Linvill, Principal, The Regulatory Assistance Project Doug Howe, Consultant, Vanry & Associates John Prescott, (Retired) President and Chief Executive Officer, Pacific Northwest Generating Cooperative Kristine Schmidt, President, Swan Consulting Services Valerie Fong, (Retired) Director of Utilities, City of Palo Alto Body of state regulators to advise EIM Governing Body and ISO Board on matters of interest, representing 8 states Regional Issues Forum public vehicle for discussion of EIM-related issues, including impacts to neighboring balancing authority areas, next meeting scheduled for August 4 in Boise, ID Page 9

10 Overall benefits to California ratepayers are robust, ranging from over $700 million/year to $1.7 billion/year by 2030* expected to be sustained over the long-term, beyond Page 10

11 Regional market helps to further reduce electricity sector CO2 emissions for California and WECC-wide in the longer term though study shows a very slight increase in 2020 CO2 emissions for California load WECC-wide CO2 emissions Notes: [1] On the left chart, the higher value reflects the CARB s GHG accounting for GHG imports. The lower value includes an adjustment to credit California for GHG exports, which is not currently part of the CARB s accounting. [2] In 2020 regional case (CAISO+PAC) slight increase in CO2 emissions for California (0.3%) and WECC-wide (0.2%) Page 11

12 Timeline for regional integration activities Note: Designed to allow PacifiCorp to obtain state regulatory approvals before the end of 2017 SB 350 studies Assemble team, study assumptions, seek input, conduct studies SB 350 governance modifications Consultation among states, development of principles and key issues, public input, ISO engagement in processes SB 350 Joint agency workshop; material to Governor s office; possible legislative action Policy stakeholder processes Develop policy for transmission access charge, greenhouse gas compliance, resource adequacy & others, FERC filings Implementation ISO review of additional implementation items ex. Tariff review of transmission planning process PacifiCorp state regulatory proceedings Go live (Jan) (States include CA, ID, OR, UT, WA, WY) Q Q1 Q2 Q Q4 Q1 Q2 Q Q Page 12 Version April 4, 2016

13 Regional Governance Principles and Process Process Study results and governance proposal presented at July 26 joint agency workshop hosted by CEC/CPUC/CARB New governance structure based on these principles requires state legislative action, as contemplated by SB350. Eight overarching principles for governing a regional ISO, including: Preserving state authority over matters currently regulated by states Developing method for selecting board members Establishing a Western States Committee with a representative from each state in the regional footprint A transitional committee of stakeholders and state representatives would be appointed (similar to EIM transitional committee) to develop details consistent with the principles Page 13

14 Don Fuller THANK YOU