Dynamic Transfers in the Western Interconnection

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1 Dynamic Transfers in the Western Interconnection Joint Meeting of the Committee on Regional Electric Power Cooperation and the State and Provincial Steering Committee Boise, Idaho April 10, 2013 The Regulatory Assistance Project 50 State Street, Suite 3 Montpelier, VT Phone: web:

2 Introducing the Regulatory Assistance Project (RAP) RAP is a non-advocacy, non-profit organization providing technical and educational assistance to government officials around the world on energy and environmental issues. RAP Staff on this Project: Carl Linvill, Rich Sedano, and John Shenot 2

3 What is the Western Renewable Energy Zones (WREZ) Initiative? An initiative of the Western Governors Association (WGA) Aims to: develop areas in the Western Interconnection with abundant, high-quality renewable resources establish an efficient network of interstate transmission lines to deliver the energy to load centers 3

4 WREZ Initiative - Phase I 4

5 WREZ Initiative - Phase II 5

6 WREZ Initiative - Phase III 6

7 Dynamic Transfers Outreach Project Focuses on implementing just one of the June 2012 recommendations to facilitate dynamic transfers, specifically: Conduct outreach and disseminate information to stakeholders on the implications of dynamic transfer limits and potential system impacts of dynamic scheduling in order to help identify solutions 7

8 Today s Expert Presenters Kyle Hoffman Manager of Energy Scheduling Jim McIntosh Senior V.P., Operations 8

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10 1. Understand how Dynamic Transfers have been utilized historically and can be expanded to contribute toward integrating renewable resources at a lower cost 2. Consider next steps and recommendations going forward Key Objectives 10

11 Overview High Level Scheduling Overview What is Dynamic Transfer? Impacts of Dynamic Transfer Implementation Dynamic Transfer Challenges Questions and Next Steps 11

12 High Level Scheduling Overview Static or Normal Interchange Schedules Today, interchange scheduling consists primarily of hourly blocks of energy 12

13 Western Region Balancing Authorities (BAs) 28 out of 38 BAs have utilized dynamic transfer for decades to transfer energy between them to help maintain their internal supply/demand balance Demand Supply 13

14 Energy (MW) Static or Normal Schedule Functionality 200 Static Hourly Schedule 100 MW 0 One Hour Fixed blocks of energy for the operating hour Limited ability to implement mid-hour or real-time changes Dynamic transfer automates the intra-hour interchange scheduling process 14

15 What is Dynamic Transfer? A High Level Overview of what Dynamic Transfer is, is not, and how Dynamic Transfer fits in with current energy delivery policies 15

16 Dynamic Transfer Applications Defines a Dynamic Transfer as The provision of the real-time monitoring, telemetering, computer software, hardware, communications, engineering, energy accounting (including inadvertent interchange), and administration required to electronically move all or a portion of the real energy services associated with a generator or load out of one Balancing Authority Area into another. Supply Demand Dynamic Transfer provides a means to: Decrease scheduling intervals from the current hourly standard to intra-hour intervals as short as four (4) seconds Facilitate intra-hour transfers between BAs Enable variable energy transfers between BAs Accommodate real-time energy imbalance markets 16

17 Dynamic Transfer Functionality Split Unit Share (Jointly Owned Units) Ancillary Services Regulation Import Operating Reserve Imports Load following Real Time Market / Balancing Energy Dispatch Renewable or Variable Energy Resource (VER) Integration & Scheduling 17

18 Dynamic Transfers in Use Across the Sutter Energy Center, CA Western Region Ancillary Services Energy Markets Copper Mountain Solar, NV Renewable Hoover Dam, Scheduling NV Split Unit Share (Jointly Owned Units) Four Corners, NM Regulation Imports Aragonne Mesa Wind, NM Hoover Dam, NV Renewable Scheduling 18

19 Dynamic Transfer for Split Unit Share Four Corners Power Plant Ownership - Units 4 & 5 El Paso Tucson Electric Electric 7% Power Salt River 7% Project 10% Arizona Public Service Company 15% Dynamic Transfer enables generators with multiple owners to divvy up the energy output produced by the generator and schedule the energy to serve load in their respective BAs. Public Service Company of New Mexico 13% Southern CA Edison 48% Four Corners Power Plant, NM 19

20 Dynamic Transfer of Renewable or Variable Energy Resource Scheduling in Action Dynamic Transfer enables renewable or variable energy resources to transfer the energy produced by the generator to the customer load s BA on an asgenerated basis. Copper Mountain Solar, NV 20

21 Impacts of Dynamic Transfer Implementation How Dynamic Transfer can be a useful tool going forward 21

22 Renewable Integration Dynamic Transfer allows source BAs to transfer energy from areas where resources reside to sink BAs where renewable energy is needed VER rich regions are often located remotely in sparsely populated areas distant from large load centers Sink BA Source BA 22

23 Transfer of VER Balancing Obligation Dynamic Transfer from PNM to APS Dynamic Transfer from SRP to CAISO Dynamic Transfer allows source BAs with large renewable energy potential to interconnect VERs to the grid and dynamically transfer the RPS energy along with the balancing obligation to sink BAs 23

24 0:00 0:41 1:22 2:03 2:44 3:25 4:06 4:47 5:28 6:09 6:50 7:31 8:12 8:53 9:34 10:15 10:56 11:37 12:18 12:59 13:40 14:21 15:02 15:43 16:24 17:05 17:46 18:27 19:08 19:49 20:30 21:11 21:52 22:33 23:14 23:55 Megawatts Supply Diversification MW SOLAR and 6000 MW WIND Nameplate Capacity WIND + SOLAR SOLAR 2000 MW ramp down MW ramp down and then 2000 MW ramp up WIND Dynamic Transfer provides a means to increase VER supply diversity, blending resource s with different production patterns that complement each other, to better match the load curve within the sink BA Source Data: 2010 Energy Storage Summit April 20th, 2010 Hosted by PJM and EPRI Jim Mcintosh 24

25 Geographic Diversification Access to broadly dispersed renewable resources helps with integration 25

26 Increases the Pool of Resources to Call Upon for Services Scheduling Flexibility Ability to change interchange schedules to allow participation in various energy initiatives Access to External Resources Allows for participation by external resources in energy markets within the Trade hour Facilitates Ancillary Services Facilitates Ancillary Services market participation, including AGC Regulation and Flexible Ramping services Bottom Line? Increased options result in decreased cost 26

27 Dynamic Transfer Dynamic Transfers Complement New Energy Initiatives Dynamic transfers are associated with and useful mechanisms for implementation of a number of initiatives throughout the West Dynamic Scheduling Service (DSS) Intra-Hour Scheduling Initiatives (ITAP, FERC 764) Energy Imbalance Market (EIM) 27

28 Dynamic Transfer Challenges What is the best use of transmission capacity? 28

29 Areas Best Suited for Dynamic Transfer Implementation Transmission capacity Ability for BAs to withstand variability of dynamic energy transfers Voltage Limits Reactive Support Outages Source: Wind Integration Study Team Integration of Intermittent Energy into the Grid: Are Dynamic Transfers Needed? October 26,

30 Competing Uses for Transmission Optimize use of existing transmission capacity Energy vs. Integration Services Need for additional transmission capacity is driven by both energy and integration Identify needs in the transmission planning process 30

31 Prioritizing Improvements to Accommodate Dynamic Transfers There are numerous options for system improvements and upgrades. By prioritizing the right improvements, Dynamic Transfers can be implemented to maximize effectiveness with minimum associated cost Transmission system equipment upgrades System control and automation, e.g. Remedial Action Schemes (RAS) and Special Protection Schemes (SPS) System visibility and assessment 31

32 Clarifying Questions?? 32

33 ZGlobal, Inc. Engineering and Energy Solutions 604 Sutter Street, Suite 250 Folsom, CA P: F: This presentation and its contents are the property of ZGlobal, Inc. and may not be copied or reproduced in any manner without written permission from an authorized representative of ZGlobal, Inc. 33

34 Next Steps What remains to be done by RAP and ZGlobal? Publication of a final report that can be used as a resource by regulators and policy makers in the West June 1,

35 Next Steps Actions that States could take: Support determination of availability and limits on your utilities transmission lines Explore technology and operations improvements that could increase availability of capacity on existing transmission Include future needs for dynamic transfer when evaluating transmission additions and electricity system improvements 35

36 Next Steps Actions that SPSC could take: Support state information gathering Collect, compile and publish information on WIEB s proposed Dashboard Dynamic Transfer capacity limits Facilitating Technology deployed Operational practices implemented Planning practices implemented 36

37 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 Carl Linvill: clinvill@raponline.org