Transmission in the Western U.S.

Transcription

1 Transmission in the Western U.S. EPA Region X Workshop Presented by Lisa Schwartz April 24, 2012 The Regulatory Assistance Project

2 Transmission Topics Today A few transmission fundamentals USDOE transmission activities Transmission planning Utility, subregional and Western Interconnection-wide FERC Order 1000 transmission planning requirements Other Western transmission initiatives Western Renewable Energy Zones BPA Non-Wires Solutions 2

3 Transmission lines move power from power plants or interties (lines between balancing authority areas*) to transmission or distribution substations. * The collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority. The Balancing Authority maintains loadresource balance within this area. (NERC) 3

4 Network Interconnections Interconnection: a geographic area in which the operation of the bulk-power system components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain reliable operation (DOE FOA, June 15, 2009) Benefits of Interconnection: Reliability backup from entire network for loss of generating capacity Economic energy trading among parties capture load and resource diversity

5 North American Interconnections Quebec Western Interconnection Eastern Interconnection Texas

6 Entities Coordinating Reliability in U.S. 6

7 AC vs. DC Transmission Lines Three phase AC systems adopted in early 20 th Century Standard North American frequency is 60 Hertz (60 cycles per second) AC transmission voltages in the US increased during 20 th Century from 44 kv to 765 kv Voltage choice is based on capacity need, fit to existing system, technology advances and ultimately cost to construct and operate. Advantage of AC systems: Voltage can be increased and decreased by low cost transformers Current can be inexpensively interrupted No direct control of power flow on lines in an AC network Line flow is changed by altering the generation dispatch. Change in generation dispatch affects all lines in network DC lines: AC-DC convertors at each end control power flow No decrease in capacity with distance, but not economical for short lines No capacity loss for underground lines

8 WECC Existing Transmission System 230 kv HVAC 345 kv HVAC 500 kv HVAC kv HVDC

9 USDOE Transmission Activities Recovery Act transmission funding $6 billion for loan guarantees for renewable and transmission technologies $3.25 billion in increased Bonneville Power Administration borrowing authority $3.25 billion in Western Area Power Administration borrowing authority $80 million for facilitating the development of regional transmission plans - East, West and ERCOT (Texas) See Additional Slides on: Transmission congestion studies Coordination of federal transmission permitting Rapid Response Team for Transmission 9

10 Transmission Planning in the Western U.S. 10

11 What Is Transmission Planning? Identification of future infrastructure needs to 1. Serve the expected load reliability 2. Meet public policy directives 3. Minimize cost and environmental impact Identification of future transmission capacity needs given a future set of loads and generation resources 11

12 Transmission System Planning Components Load Forecasting determining the need to be served Annual forecasts out to 10 th year are collected by WECC Load profiles How load behaves from hour-hour over the year Resource Planning selecting the best portfolio of resources that meets multiple objectives Policy objectives Capital and operating costs Operating characteristics Dispatch responsiveness to follow load Locational needs for voltage support or dynamic inertia Transmission Planning dealing with space and time to reliably deliver energy to consumers Make the best possible decision today after examining possible future needs and conditions

13 Transmission Planning in the West 1. Utilities and federal power marketing agencies (e.g., BPA) plan transmission to meet load, transmission service requests and public policy directives. 2. Subregional planning groups conduct detailed studies of aggregate plans of affiliated transmission providers and jointly consider planning issues among members and stakeholders. 3. Western Electricity Coordinating Council (WECC) conducts interconnectionwide planning studies focus today Subregional Planning Groups 13

14 Studies by Subregional Planning Groups and Transmission Providers Subregional Planning Groups Adequacy assessments Power flow studies Dynamic stability studies Production cost simulations (by some subregional planning groups) Transmission Providers and Project Sponsors Power flow and dynamic stability studies For project design To establish path ratings under WECC s Project Rating Process Gateway West project Idaho Power and PacifiCorp 14

15 Utility Resource Planning and Procurement Long term utility resource/procurement plans direct resources developed transmission follows For renewable resources, utilities are focused on acquiring within or close to their service areas. Renewable portfolio standards may limit out-of-state resources or create a preference for in-state resources Developing local resources is a better match with modular renewable resource development Easier to site and recover costs for in-state facilities Siting transmission across borders is difficult Pancaking of transmission charges Utilities prefer resources with existing transmission 15

16 Environmental Conundrum: Long-term vs. short-term concerns Stave off a biodiversity disaster in the future by fasttracking renewable-power development and transmission vs. Protect important habitat and landscapes now no matter long term climate concerns Human nature to focus on short term, tangible, impacts close to home We know and can reasonably control the proximal threats of renewable energy generation and transmission vs. having less knowledge, fewer tools, and less legal ability to influence the impacts of a substantially warmer climate Source: Gary Graham, Western Resource Advocates; chair, WECC Scenario Planning Steering Group

17 Environmental Issues and Stakeholders Bring environmental issues at stake in project siting and routing to transmission planning; treat them with weight equal to that given project economics Earn stakeholder consent: Enabling stakeholder participation in transmission planning can earn stakeholder support for planned projects Source: Ron Lehr, Western Grid Group 17

18 Long Term and Scenario Planning Plan diverse long term scenarios that require different transmission solutions. Note common transmission elements required in most or all scenarios. Replan. Bring external costs and benefits to bear on transmission plans. Use planning information to inform investment due diligence and public approval decisions. Source: Ron Lehr, Western Grid Group 18

19 FERC Order 1000 (1) Each Transmission Provider must participate in a regional planning process that results in a regional plan Define planning region Subregional planning groups to constitute regions, more or less Identify process for making decisions Satisfy Order 890 principles Coordinate with other planning regions Identify and jointly evaluate transmission facilities that are proposed to be in both regions Exchange planning data and information Set procedures to identify transmission needs driven by Public Policy Requirements & evaluate potential solutions Stakeholders must be consulted Transmission cost allocation also part of order FERC mandated a process, not an outcome 19

20 FERC Order 1000 (2) Required scope of Public Policy Requirements to consider is limited to existing state and federal laws or regulations Policies considered in West-wide planning today* Policies that affect resource selection Renewable portfolio standards, demand-side resources, integrated resource planning Carbon and air quality policies Policies with a nexus to electric sector Water, wildlife and environmental resources West s Regional Transmission Plan is good role model for regional plans under Order 1000 Existing state and federal policies for expected or base case Prospective policies for plausible alternative futures Also consider policies with a nexus to electric sector *Western Interstate Energy Board paper will be posted at 20

21 Western Interconnection Regional Transmission Planning Process (RTEP) 21

22 Goals of RTEP Process Expand regional transmission planning activities An extension of existing planning process, with annual study requests from stakeholders under FERC Order 890 provisions Coordinate Subregional Coordinating Group Common Case Transmission Assumptions Create 10 Year Transmission Plan in 2011 and 2013 Create 20 Year Transmission Plan in 2013 Facilitate stakeholder involvement Reach out to groups not traditionally involved Expect process will continue on a biennial cycle Planning process will evolve, adapt and improve with each cycle Focus on studies with Interconnection-wide implications Reliability, cost and emissions 22

23 RTEP Components Two separate but related activities 10-Year Planning A bottom up process: Local and SPG studies produce proposed projects TEPPC evaluated system impact of projects. Output is a 10-Year Regional Transmission Plan based on TEPPC s consideration of proposed projects 20-Year Planning A top down process: TEPPC begins from scratch looking at possible scenarios. TEPPC evaluates likely long-term transmission needs to produce 20-Year Regional Target Transmission Plan. Transmission Expansion Planning Policy Committee TEPPC provides policy direction and management of the regional planning processes and guides analyses and modeling for economic transmission expansion planning. 23

24 Stakeholder and Expert Involvement Scenario Planning Steering Group Guidance on scenarios to be modeled, key assumptions and modeling tools NGO, state, consumers, industry, tribes Environmental Data Task Force Develop method to compare transmission alternatives based on relative risk of facing environmental and cultural constraints Environmental Recommendations for Transmission Planning report at State-Provincial Steering Committee State PUC and provincial energy ministry representatives Demand-Side Management Work Group recommends high energy efficiency, demand response, distributed generation scenarios Subregional Coordination Group Develops Common Case Transmission Assumptions (next slide) TEPPC work groups Develop/review data, modeling methods 24

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26 10-Year Study Model Production cost simulation used to investigate transmission system congestion and congestion relief A least cost hourly dispatch for each hour of the study year Dispatch with constraints of reliable operation, including: Transmission path ratings Generation operating parameters Base cases Loads and resources collected from Balancing Authority Areas Existing generation units Existing transmission network Study Cases New resource portfolios Potential transmission expansion 26

27 20-Year Planning Studies Scenarios cover broad strategic factors. For example: Regional economy activity Public policy Environmental and cultural values Study Case Development Tool Aid to Scenario Planning Steering Group in developing scenarios Convert scenarios into nodal load and resource data Provide segment route possibilities considering environmental impacts Network Expansion Tool Synthesizes feasible networks for study end states Analysis of end-state networks Looks for tendencies where is capacity needed, how much and when Requires analytic judgment not a model Identify significant exemptions low probability but major consequences Repetition of network designs Narrow the range of long-term study case Provides the sequence for facility additions 27

28 20-Year Scenarios

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30 10-Year Regional Transmission Plan for 2020 (Completed September 2011) 30

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33 Renewable Procurement Trends

34 Renewable Resource Relocation Cases 34

35 Resource Relocation Alternatives Transmission Expansion

36 Coal Plant Retirement Study Set to Inactive 36

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39 Observations and Recommendations 1. Some remote renewable resources are cost-effective 2. Consider upgrades for Montana to Northwest path 3. Consider upgrades for Pacific Tie paths 4. Study operational impacts of variable generation 5. Planning cooperation needed 6. Address environmental and cultural considerations in future transmission planning processes 7. Water resources will impact future generation mix 8. Gaps in regional transmission planning processes No new major transmission needed by 2020 to meet load and state policy objectives (e.g., Renewable Portfolio Standards) beyond 44 foundational projects already under development (Map in Additional Slides)

40 Other Western U.S. Transmission Initiatives 40

41 Western Renewable Energy Zones Initiative Western Governors initiative funded by USDOE Identify and develop areas with enough high-quality renewable resources to justify high-capacity transmission lines ( 500 kv AC) in areas with low environmental impacts Including 95,000 MW of wind in 53 hubs Identify WREZs of common interest Explore how to develop these zones and associated transmission Create a critical mass of transmission needs in the same timeframe for efficient build-out Convene multi-state discussions on transmission siting and cost allocation 41

42 WREZ Hubs of Multi-Utility, Multi-State Interest CCTA Common Case Transmission Assumptions in WECC s 2022 Regional Transmission Plan Full map and report: Renewable Resources and Transmission in the West: Interviews on the Western Renewable Energy Zones Initiative, March 2012, 42

43 BPA Non-Wires Solutions NWS are non-traditional solutions, such as distributed generation, demand exchange, demand response, and conservation measures, that may keep costs down, while maintaining reliability. Often constraints on the transmission system are 40 hours or less during extreme weather, in any given year. The traditional approach would be construction of a multi-million dollar transmission line. NWS may be far less expensive and just as reliable. Example projects: Orcas Island (conservation while replacing damaged underwater cable) and Puget Reinforcement Project (conservation plus series capacitors, etc. that avoided voltage collapse and delayed construction of new transmission over Cascades by 10 years) Source: 43

44 About RAP The Regulatory Assistance Project (RAP) is a global, non-profit team of experts that focuses on the long-term economic and environmental sustainability of the power and natural gas sectors. RAP has deep expertise in regulatory and market policies that: Promote economic efficiency Protect the environment Ensure system reliability Allocate system benefits fairly among all consumers Learn more about RAP at Lisa Schwartz, Senior Associate lschwartz@raponline.org (0); (m)

45 Additional Slides 45

46 The Grid Is Weakest Where Wind and Solar Resources Are Best Source of maps: NREL, Platts 46

47 Energy or Peak Demand 2022 WECC Regional Transmission Plan High DSM Case Energy Efficiency Balancing Authority Load Forecast Submitted to WECC Embedded Savings from EE Policies & Programs ( ) Expected EE Savings from Current Policies & Programs ( ) All Cost Effective EE WECC Common Case High DSM/DG Case

48 Overview of RTEP Process NO Scenario Development (SPSG) Stakeholder Requests (Open Season) Study Program Development (Study Plan) Create Study Cases Analysis Scenario Analysis Meets Strategic Guidance YES Publish Report and Plan(s) YES Approval of Plan(s) Recommend Approval Review and Public Comment Process Reporting & Creation of Plan(s) Decision Body Scenario Planning Steering Group TEPPC WECC Board TEPPC Workgroup Consensus Public NO All meetings are noticed and open to the public. The small boxes represent opportunities for stakeholders to be directly involved in planning processes. Diagram does not show multiple feedback loops during process. TEPPC Workgroup activities are open to all and decisions are made by consensus. It is at these meetings where many of the details of the planning process are decided. 48

49 MT - NW COI PDCI

50 WREZs of Common Interest to Utilities AZ_NE PG&E, APS, SRP AZ_NW PG&E, APS, TEP CA_SO PG&E, SCE, SDG&E, IID, APS, SRP ID_EA PacifiCorp, EWEB, Seattle, Idaho Power ID_SW EWEB, Avista, Seattle, Idaho Power NM_EA APS, PSNM, El Paso, Tri-State NV_NO* PG&E, SMUD, IPCo NV_SW* PG&E, SRP OR_NE PG&E, PacifiCorp, PGE, EWEB, Avista, IPCo OR_SO PG&E, SMUD, EWEB OR_WE PG&E, SMUD, PGE, EWEB, Seattle, Tacoma UT_WE PacifiCorp WA_SO PacifiCorp, PGE, EWEB, Avista, PSE, Seattle, Tacoma WY_EA Tri-State, CSU, PacifiCorp WY_EC CSU, PacifiCorp WY_SO Tri-State, CSU, PacifiCorp *Zones identified by WREZ model including NV_NO and NV_SW generally are consistent with NV Energy s viewpoint. Long-term contracts tend to gravitate toward in-state resources, but the utility also seeks offers from out-of-state projects. 50

51 2012 National Electric Transmission Congestion Study Required every three years by Energy Policy Act of Target publication date not set yet, but will be released in Four regional workshops held in December; analysts are now combing through regional source material (RTO/ISO planning studies, state-of-market reports, state energy plans, etc.) DOE will issue 2012 study in draft form, take and consider comments, reissue in final. After considering comments and completing the study, the Secretary may designate one or more National Corridors not required by law to do so.

52 Coordination of Federal Transmission Permitting Section 216(h) of the Federal Power Act, created by EPACT 2005 designated DOE as the lead agency to conduct NEPA review for transmission lines requiring multiple Federal Permits MOU signed by 9 Federal Agencies in October of 2009 to execute section 216(h).

53 Nine Agency MOU Mandated by section 216(h)(7)(B)(i) of the Federal Power Act. Establishes the roles and responsibilities of the nine signatory agencies regarding electric transmission infrastructure project applications Provides single point of contact for coordinating all federal authorizations required to locate electric transmission facilities on federal land Establishes DOE (under authority pursuant to section 216(h) of the FPA) as lead agency for coordinating all federal authorizations and related environmental reviews.

54 DOE MOU Responsibilities Designate lead federal agency for NEPA compliance Provide expertise in determining Qualifying Projects Provide technical assistance in evaluating transmission proposals Assist lead agency in developing the schedule and approve schedule deviations Maintain publicly available project tracking website and links to information from all participating and cooperating agencies.

55 Rapid Response Team for Transmission (RRTT) Builds upon the MOU and the August 31, 2011, Presidential Memorandum on Speeding Infrastructure Development through More Efficient and Effective Permitting and Environmental Review. RRTT aims to improve the overall quality and timeliness of electric transmission infrastructure permitting, review, and consultation by the Federal gov t on both Federal and non Federal lands. RRTT first steps. Selection of Seven Pilot Projects identified through ARRAfunded, independent, broad stakeholder processes led by WECC and EISPC. DOE development of electronic dashboard to track pilot projects.

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