Gas-Electric Coordination A NYISO Perspective

Transcription

1 Gas-Electric Coordination A NYISO Perspective Rana Mukerji Senior Vice President Market Structures New York Independent System Operator Energy in the Northeast Boston, MA September 9, 2013

2 Generation Capacity Generating Capacity by Fuel Source 2013 Natural gas supplies 55% of New York s generating capacity (47% of which is dual fuel capable of using gas or oil) Source: 2013 Load and Capacity Data Report, New York Independent System Operator, April

3 Proposed Generation Projects using natural gas (gas and dual fuel) account for nearly 70% of proposed capacity * includes methane, wood & solid waste 3

4 Generation Trends Natural Gas & Oil: Electricity generated in NY by natural gas grew from 27,000 GWh in 2004 to nearly 60,000 GWh in 2012 Oil-fired generation declined from 21,000 GWh in 2004 to fewer than 600 GWH in 2012 Source: U.S. Energy Information Administration 4

5 Local Reliability Rules NYS Reliability Council Minimum Oil Burn Requirements I-R3: Loss of Generator Gas Supply (New York City) The NYS Bulk Power System shall be operated so that the loss of a single gas facility does not result in the loss of electric load within the New York City zone. I-R5: Loss of Generator Gas Supply (Long Island) Con Edison Dual Fuel Interconnection Requirement* *Transmission Owner (Con Edison) requiring dual fuel capability for new projects seeking interconnection. The NYS Bulk Power System shall be operated so that a loss of a single gas facility does not result in the uncontrolled loss of electric load within the Long Island zone. 5

6 NYISO Gas Study Findings Winter Heating Season Slack Deliverability Assessment Pipeline capacity serving New York has been frequently constrained during the heating season (November-March) These congestion events potentially impact fuel availability for secondary firm and interruptible transportation customers such as power plant Dual fuel capabilities promote, but do not guarantee fuel adequacy Pipeline contingency analysis shows as many as 4,000 MW of generating capacity could be at risk of losing supply under worstcase scenarios (e.g., cyber attack, complete loss of compressor station) Most contingencies can be mitigated to minimize impact on generation except during peak demand periods for gas 6

7 New Pipeline Capacity Major pipeline expansions are scheduled to be commercialized in Q4 of 2013 Spectra New Jersey-New York Expansion Project 800 MDth/day of new capacity Transco Northeast Supply Link 250 MDth/day of new capacity of which, 200 MDth will flow into New York Expansion projects expected to increase deliverability into the New York Facilities System by 30% New capacity enough to fuel about 6,000 MW of generation at full capacity in the New York Facilities System 7

8 NYISO Working Group Electric and Gas Coordination Working Group Includes representatives of wholesale electricity market sectors, gas producers and suppliers, pipeline operators, natural gas local distribution companies, and the New York State Department of Public Service Provides forum to: Promote better understanding of how each industry plans, operates, and maintains its system Evaluate the challenges and barriers to reliably operate a coordinated electric and gas system Recommend improvements in current coordination practices and communications 8

9 Differences in Market Timing Operating Day Differences Gas Day: 10 a.m. 10 a.m. (ET) Electric Day: 12:00 a.m. 12:00 a.m. Scheduling Differences Day Ahead Electric Day Day Ahead Gas Day Bids: 5 a.m. RTC/RTD: 75 min and 5 min Timely Nomination Cycle: 12:30 p.m. Intraday 1 (ID1) Cycle: 11:00 a.m. Schedule: 11 a.m. Evening Nomination Cycle: 7:00 p.m. Intraday 2 (ID2) Cycle: 6:00 p.m. 9

10 Coordination Topics Timing processes Price certainty versus volume certainty Scheduling (Supply) Holiday issues, off-peak Nomination (Transportation) NAESB schedules & gas tariff flexibility Balancing Gas Operating Day Timing Cost Recovery Discussions (e.g. IBRT) Actual implications of Operational Flow Orders (OFOs) Actual peak performance of both gas and electric systems Seasonal Assessments Fuel Capability Surveys Input to Regional Study Scope & Objectives 10

11 Coordination Topics Infrastructure Maintenance NYISO has initiated a process to review and monitor pipeline, transmission, and generation outages NYISO Control Center Visualization Gas Pipeline System OFOs and status of pipeline alerts During cold snaps - gas nominations, gas burned, and alternate fuel capability & inventory 11

12 Fuel Assurance Exploring nexus of electricity and gas markets to develop market designs recognizing value of fuel assurance Market-based incentives to determine most efficient approach dual-fuel generating facilities gas transportation/storage infrastructure, various types of supply contracts 12

13 The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state s bulk electricity grid, administering New York s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. 13