The Future of Power? Power is the Future! University of Minnesota Electric Energy Systems Group Seminar 21 Yakout Mansour President & CEO California ISO September 18, 2009
Who is the California ISO? Began operations in 1998 - Not for Profit Controls 80% of the State grid Federally Regulated Responsibilities: Reliability Market Development Market Operations Market Monitoring Grid Planning Resources: 55,000 MW In-state Generation 10,000 MW Imports Peak Demand of the ISO Footprint: 51,000 MW (2006) Total State peak is about 60,000 MW Slide 2
Reliability Management EMS Load Forecasting Network Model 6,000 buses 1,800 generators 3,200 load points 8,000 circuits 35,000 switching devices 1,200 shunt compensators State Estimator Every minute based on 17,000 measurements Slide 3
Reliability Management EMS (con t) Real Time Contingency Analysis 700 potential scenarios Security Assessment Wide-Area Phasor Measurements Visualization Google Earth Slide 4
Market Operation 15,000 Market Transactions every hour 100 participating entities Day-Ahead Market Integrated Forward Market Hour-Ahead Market Market Power Mitigation & Reliability Requirement Residual Unit Commitment Real Time Unit Commitment Slide 5
Market Operation (con t) Real Time Economic Dispatch Real Time Contingency Dispatch Real Time Manual Dispatch Congestion Revenue Rights Long Start Unit Slide 6
Into the Future The Resources, Beginning Now Accommodating the Climate Change Initiatives 33% of Energy Supply from Renewable Resources by 2020 20% of Energy Supply Renewable By 2010 CO2 Emission Level Rolled Back to 1990 Level by 2020 One Million Roof-Top Photo-Voltaic Storage Ban Once-through Cooling Technology on all Coastal Plants by 20xx Slide 7
What is necessary to integrate 20% renewable generation? We have published engineering studies on how to integrate renewable generation to meet the 20% RPS. Intermittency and timing of renewable resources create operational challenges. Morning and evening ramp will increase 20-30%. Potential wind forecast errors will drive the need for increased regulation capacity (as much as 500 MW) and a much deeper supplemental energy stack. Over-generation will occur during certain hours but can be mitigated by minimal curtailment. Needed integration services can be provided by: Hydro, IF there is enough water. New thermal, IF it has the right characteristics. Existing thermal, IF it is kept operating at certain levels (but could defeat the purpose). Slide 8
What is necessary to integrate 20% renewable generation? (Con t) Other mitigation measures are also necessary: Advanced demand response Curtailment mechanisms Improved technology Better forecasting tools Storage Maintaining existing generation is essential (although replacement or re-powering can work). Slide 9
What does it take to integrate a higher RPS in California? Out of the Box on all fronts! Case GWh Avg. Mw Nameplate Mw 20% RPS (2010) 55,657 6,353 13,614 33% RPS (2020) 102,000 11,600 29,000 Achieving 33% requires us to meet two times load growth with renewables between now and 2020. The increase in need for capacity, ramping, and regulation to achieve 33% RPS is not linear it is much greater. 5-7 major transmission projects. Regional diversification is important technically and economically. Key questions are: How much in the box thinking is still viable? Can we retain and invest in more non base-load facilities? Does retirement or replacement make sense? Slide 10
Wind Production on Peak Heat Days You have to go a very long distance to get diversity! 1,200 1,000 CAISO Wind Generation July 2006 Hot Heat Day Wave Total Wind Generation Installed Capacity = 2,648 MW 800 Wind Generation at Peak 600 400 200 0 07/16/06 07/17/06 07/17/06 07/18/06 07/18/06 07/19/06 07/19/06 07/20/06 07/20/06 07/21/06 07/21/06 07/22/06 07/22/06 07/23/06 07/23/06 07/24/06 07/24/06 07/25/06 07/25/06 07/26/06 07/26/06 MW Wind Generation Wind Generation at Peak Slide 11
Towards RPS Green Energy The capacity element and the crown prince (storage)! Wind Solar PV (non-dg) Solar Thermal Geothermal Capacity Value 15-30% prior CPUC Approx. 3-8% new CPUC 65% 71-80% 80-90% Capacity Factors 18-20% historical <30% new turbines 18-24% 20-28% 80-90% Slide 12
Tehachapi Wind Generation with 100 MW Storage Wind Generation with 100 MW Storage MW 450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 1 25 49 73 97 121 145 169 Hours Wind Generation Wind Generation with 100 MW Storage Slide 13
The Future The Grid The Smarter Grid IT Telecom Power Equipment Demand Side The Greener Grid Slide 14
Into the Future Achieving Statewide 1990 Level Emissions by 2020 (CA Assembly Bill 32) Million metric tonnes CO2e 600 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 Year 1999 2000 2001 2002 2003 2004 Source: CARB Emissions Inventory, updated Nov. 2007 Target Enabler Electricity: In-State Generation Electricity: Imports Transportation Residential Forestry Other Industrial Commercial Agriculture 1990 level Slide 15
Into the Future Electricity Sector Emission Reductions Potential Compared to Historic Electricity Sector Emissions 140 130 120 110 100 90 80 70 60 50 40 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Electricity sector emissions (MMT CO2e) 2014 2016 2018 2020 Total CO2e (MMT) 33% renewable energy 3,000 MW rooftop solar PV "High goals" energy efficiency "High case" combined heat and power Natural gas only build-out 1990 emissions level Gas Build-out Reference Case Accelerated Policy Case Source: Energy & Environment Economics, Inc. (E3) Slide 16
Into the Future - The Demand Smart Homes Smart Appliances Electrification of the Transportation Electrification of Industrial Processes Conservation Distributed Generation Slide 17
Into the Future - The Education The largest vital single element We are all students before becoming teachers Inspiring the new and older generations The ISO Academy The ISO Sabbatical Slide 18