Integration of Variable Generation

Transcription

1 Integration of Variable Generation Joe Rowley Vice President Project Development WSPP Operating Committee Meeting October 26, 2012 Sempra U.S. Gas & Power is not the same company as the utility, SDG&E or SoCalGas, and Sempra U.S. Gas & Power is not regulated by the California Public Utilities Commission.

2 Sempra Energy Overview Fortune 500 company 2011 Revenues: $10 billion 17,500 employees serving more than 31 million customers worldwide California Utilities Global Infrastructure San Diego Gas & Electric Southern California Gas Co Sempra International Sempra U.S. Gas & Power 3.5 million customers Largest U.S. gas utility Gas/power utilities in Latin America U.S. natural gas infrastructure 4,100 square mile service territory 20.7 million customers Gas pipelines in Mexico Renewable electric generation 20,000 square mile service territory LNG Southeast gas distribution assets Commodity services 2

3 Sempra USGP Projects and Facilities Solar Photovoltaic Wind Natural Gas 900 MW solar and wind operating or in construction ~$2 billion invested in renewables since ,250 MW gas-fired generation 1.5 Bcfd LNG and 23 Bcf natural gas storage Interest in 1,700 miles of natural gas pipelines Natural gas distribution utilities (1) Reflects Sempra s net ownership interest (2) Sempra ownership interest is 25% 3

4 Gas-Fired Project Developed by Sempra USGP Mesquite Power El Dorado Energy Elk Hills Power Termoeléctrica de Mexicali Palomar Energy Project Name Location Operation Date Capacity Status El Dorado Energy Boulder City, NV MW sold to SDG&E (2011) Mesquite Power Maricopa County, AZ & ,250 MW owned Elk Hills Power Kern County, CA MW sold to Oxy (2010) Termoeléctrica de Mexicali Baja California, MX MW moved to Sempra Intl Palomar Energy Escondido, CA MW sold to SDG&E (2006) 4

5 Solar Project in Operation Boulder City, NV Copper Mountain Solar 1 58 MW on 469 acres Interconnection at Merchant Substation (now in the CAISO BAA) In operation since Dec 2008 (10 MW) and Dec 2010 (48 MW) 5

6 Solar Project in Construction Boulder City, NV Copper Mountain Solar MW on 1,129 acres Interconnection at Merchant Sub Construction began in late MW currently in operation 92 MW expected by Dec 2012 Remainder by mid

7 Solar Project in Construction near PVNGS, AZ Mesquite Solar 700 MW on 3,760 acres Interconnection at the Palo Verde Common Bus Phase MW on 924 acres Construction began in mid MW currently in operation Completion expected by Dec 2012 Additional Phases 530 MW on 2,836 acres Currently uncommitted 7

8 Solar Project in Development Antelope Valley, CA Rosamond Solar 300 MW on 1,360 acres Currently uncommitted Interconnection at SCE Whirlwind Sub or LADWP Barren Ridge-Rinaldi line Rosamond Solar (300 MW) 8

9 Renewable Energy Driven by State RPS Targets 15% by % by 2025* 23.8% by % by % by % by % by 2015* 25% by % by 2020 Hawaii: 40% by % by % by % by 2025* 15% by % by % by % by 2015* 20% by % by 2015* 105 MW* 10% by % by % by % by % by % by % by 2025* 18% by % by 2022* 29% by % by % by % by % by % by ,880 MW by 2015 Source: Wood MacKenzie * Voluntary goal 9

10 Integration of Variable Generation the Challenge The grid is divided into Balancing Authority Areas Each Balancing Authority (BA) maintains reliability in its respective BAA Not just whether the power is on, but also the quality of the power Frequency: 60 Hz (not 59 or 61 Hz) Voltage: e.g., 230 kv (not 220 or 240 kv) Requires precise balancing of generation vs. customer loads However... The power output of solar and wind generators is variable i.e., it goes up and down uncontrollably, depending on clouds and wind This burdens the precise balancing of generation vs. customer loads If the output of a variable generator is sent to a neighboring BA, its burden on balancing can be sent to that BA as well, via dynamic transfer This does not solve the integration challenge, but puts it in the right hands 10

11 Integration of Variable Generation the Challenge Imbalance causes a drop in power voltage and/or frequency MW Rapid loss of generation (wind farm cut off due to high wind, solar ramp down due to moving clouds, etc.) Other generation resources respond to BA direction to fill the shortfall (most typically gas-fired generation) Time (a few seconds to a few minutes) 11

12 Least Cost Integration Guiding Principles Only the BA is in a position to know integration needs Not transmission owners, not power purchasers, not generators Integration needs are manifest as Ancillary Service needs Spinning reserves, regulation, etc... But not energy storage per se* Generators may understand their own variability, but... They have no knowledge of the BA s A/S needs (i.e., the quality and quantity of overall A/S requirements vs. available A/S resources) Requiring a variable generator to meet its own A/S burden is like sending a blind man to buy groceries every Thursday, whether they are needed or not Only the BA can cause least cost creation of A/S BAs must project A/S needs and send price signals early enough to support development and construction of the specific A/S resources needed 12

13 * the exception if the BAA is a literal island... Project Name Auwahi Wind and Energy Storage Location Ulupalakua Ranch, Maui, Hawaii Capacity 21 MW Wind + 10 MW Energy Storage Technology PPA COD Market Wind Turbines & Battery Storage 20-year 21 MW PPA with MECO, approved by the HPUC Construction began in March 2012; COD by Dec 2012 HECO / MECO Auwahi Project Site Wind Site Approx. 1,500 acres Interconnection MECO 69 kv substn via 9-mile gen-tie Interconnection Agreement in PPA Permits Major permitting completed in

14 Assignment of Cost Guiding Principles Power purchasers may desire to include integration costs in evaluating renewable energy bids Only the BA is in a position to provide such integration cost information The cost of integrating a given variable generator may be high in one set of BA circumstances, and low in a different set of BA circumstances e.g., If fast ramping spinning reserves are projected to be scarce, integration cost may be high, and if they are projected to be plentiful, integration cost may be low Integration costs could be socialized, assigned to power purchasers, or assigned to generators, however... Directly or indirectly, load pays for everything Only the BA is in a position to keep the cost as low as possible By providing integration cost projections to prospective power purchasers By sending accurate price signals for A/S resources, and selecting the cheapest 14