November 2007 BGE VISIÓN DE LA PLANEACIÓN DE SISTEMAS DE ENERGÍA FLEXIBLE. January 4, 2008 December 12 and 13 2012. Medellin, Colombia Page 1
Presentation Outline Introduction Vision and context for the themes to present in the seminar Primary and secondary themes Topics to talk in the seminar Attempts for Colombia and North America similarities and contrasts Day 1: Transmission expansion planning techniques to alleviate restrictions Day 2: Integrating the relevant components for better planning flexible energy systems Page 2
Introduction Setting the stage Be sincere; be brief; be seated. Franklin Roosevelt Messaging with profound respect Share successful experiences (many personal experiences) Share the lessons learned from painful mistakes (that is how we grow ) We present the situation in North America and our understanding of your situation in order to connect the dots. Page 3
Vision for planning flexible energy systems Vision and context for the themes to present in the seminar
Vision/context for the themes to present in the seminar Novel Concepts & Practices in Energy planning Electric power demand as active actor Distributed generation Page 5
Vision/context for the themes to present in the seminar Seminar primary and secondary themes Context is strategic to Colombian electric energy power sector Multi disciplinary. The balance of the technical, economical, and political variables plays an fundamental role. The primary and secondary topics of this seminar will be heard many times and are strongly inter-related. The three C s of Price The TEP of Energy Sector Price Electric system Infrastructure Cost Customer Technical Political Competition Economical Page 6
Primary topics for the Seminar Day 2 Distributed generation Mini Hydro Day 1 Power system expansion: Transmission expansion planning Day 2 Demand as active actor Smart meters and real time price signal Day 2 Energy operations planning: Hydro and thermal dispatch Page 7
Four (4) Primary and four (4) secondary topics Topics Sample of activities Classification and rationale 1. Energy operations planning (mid term and long term) 2. Transmission expansion planning Hydro thermal scheduling Plan transmission expansion Primary. Core activity of XM. Primary. There are transmission related restrictions that are affecting energy operations planning. 3. Demand as active actor 4. Distributed generation Interruptible rates, realtime price signal Mini hydro generation <20MW. 5. Energy Planning Energy policies, fuel diversity, environmental items. Primary. Potential impact on energy operations planning. Primary. Colombia is experiencing high penetration of mini hydro generation (about 700 MW) Secondary. This is a function of UPME. XM develops energy and electric operation plans based on this information. Page 8
Four (4) Primary and four (4) secondary topics Topics Sample of activities Classification and rationale 6. Generation expansion 7. Distribution expansion 8. Renewable generation Adequate location of new generation plants Transmission to distribution interface Variable energy sources and its impact in the system operations Secondary. This is coordinated by auctions by CREG and by UMPE. XM develops energy and electric operation plans based on this information. Secondary. While this was identified during the project conversations, it has not direct impact on energy operations planning for this project. Secondary. Current penetration is 0.14% (18 MW) Page 9
Vision for planning flexible energy systems Topics to talk in the seminar
Topics to talk in the seminar Attempts for similarities and contrasts between Colombia and North America Electric and Energy planning Reliability and Economic planning The regulatory framework in Colombia and North America A number of observations Day 1: Transmission expansion planning techniques to alleviate restrictions Regulatory aspects of transmission expansion planning Regional transmission planning success stories: technical and economics perspective Day 2: Integrating the relevant components for better planning flexible energy systems Flexible energy systems: current and futuristic view Elements that impact flexibility of energy systems Tools to better plan the increased flexibility of energy systems Page 11 P T E
Similarities and contrasts between Colombia and North America Electric and Energy planning Reliability and Economic planning The regulatory framework in Colombia and North America A number of observations Page 12
Clarifying some key definitions and concepts OPERATIONS PLANNING, COLOMBIA OPERATIONS PLANNING, USA Electric Planning Energy Planning Reliability Planning Economic Planning The overlap between electric & energy planning is very intense In the future this relationship will only increase in strength Page 13
Simplified Comparison of US and Colombian Functional Structure Government US Executive Branch of Government Colombia Ministerio de Minas y Energía Writes the rules The Federal Energy Regulatory Commission Comisión de regulación de Energía y gas Interprets the rules and develops standards Implements the rules based on Reliability Regulations and System operator Planning Asset owner RTOs/ISOs Planning Coordinators Transmission Planners: functions of RTO /ISOs Utilities: Investor own and government Unidad de Planeación Minero Energética ISA, EPM, and other agents of the electric sector Asset Operator Utilities and ISO s ISA, EPM, and other agents of the electric sector Page 14
Regional Transmission Organizations (RTOs) Page 15
Balancing Authority Areas Page 16 BA Balancing Authority: The functional entity that integrates resource plans ahead of time, maintains generation/load-interchange-balance within a Balancing Authority Area, and contributes to Interconnection frequency in real time.
Functional Responsibility of Various US and Canadian RTOs/ISOs & Utilities and functions of XM Entity Name Region Country BA DP GO GOP IC LSE PC PSE RC RP TO TOP TP TSP ERCOT - RTO ERCOT United States BA IC PC RC RP TOP TSP HQ TransEnergie NPCC Canada BA IC PC RC TO TOP TP TSP ISO-NE - RTO NPCC United States BA IC PC RC RP TOP TP TSP MISO RTO MRO United States BA IC PC RC TSP NYISO- RTO NPCC United States BA IC PC RC RP TOP TP TSP NSP - RTO NPCC Canada BA DP GO GOP IC PC RP TO TOP TP TSP PJM - RTO RFC United States BA IC PC RC RP TOP TP TSP XM Colombia X X X X X Electric Reliability Council of Texas, Inc. (ERCOT) RTO Hydro-Quebec (HQ) TransEnergie ISO-New England (ISO-NE) - RTO Midwest Independent Transmission System Operator, Inc. (MISO) RTO New York Independent System Operator (NYISO) - RTO Nova Scotia Power Inc. (NSP) RTO PJM Interconnection, LLC (PJM) RTO BA Balancing Authority: The functional entity that integrates resource plans ahead of time, maintains generation/load-interchange-balance within a Balancing Authority Area, and contributes to Interconnection frequency in real time. IC Interconnection Coordinator: The Interchange Coordinator collects approvals or denials for Arranged Interchange from Balancing Authorities and Transmission Service Providers and verifies the validity of the source and sink. RC Reliability Coordinator: The functional entity that maintains the Real-time operating reliability of the Bulk Electric System within a Reliability Coordinator Area. Planning Coordinator (PC): The functional entity that coordinates, facilitates, integrates and evaluates (generally one year and beyond) transmission facility and service plans, and resource plans within a Planning Coordinator area and coordinates those plans with adjoining Planning Coordinator areas. TOP Transmission Operator: The functional entity that ensures the Real-time operating reliability of the transmission assets within a Transmission Page 17
Planning & Expansion in North America In North America it was determined that an RTO must have ultimate responsibility for both transmission planning and expansion within its region that will enable it to provide efficient, reliable and nondiscriminatory service and coordinate such efforts with the appropriate state authorities. The rationale for this requirement is that a single entity must coordinate these actions to ensure a least cost outcome that maintains or improves existing reliability levels. In the absence of a single entity performing these functions, there is a danger that separate transmission investments will work at cross-purposes and possibly even hurt reliability. Page 18
Day 1: Transmission expansion planning to alleviate restrictions Regulatory aspects of transmission expansion planning History of blackouts in North America The evolution of NERC from a voluntary organization to mandatory standards FERC perspective Utilities, Regional Transmission Organizations and Independent System Operators perspective Novel concepts & practices in electric transmission expansion planning Experiences and methodologies for regional transmission planning in North America. Successful techniques to accelerate transmission projects from the planning to the execution phase. Stakeholder management. P T E Page 19
Successful transmission expansion planning techniques Value-based planning process. STEP 1: MULTI-FUTURE REGIONAL RESOURCE FORECASTING STEP 2: SITE-GENERATION AND PLACE IN POWERFLOW MODEL STEP 3: DESIGN CONCEPTUAL TRANSMISSION OVERLAYS BY FUTURE IF NECESSARY STEP 4: TEST CONCEPTUAL TRANSMISSION FOR ROBUSTNESS Source: MISO. STEP 7: COST ALLOCATION ANALYSIS STEP 6: EVALUATE CONCEPTUAL TRANSMISSION FOR RELIABILITY STEP 5: CONSOLIDATE & SEQUENCE TRANSMISSION PLANS Page 20 Objective of value based planning is to develop the most robust plan under a variety of scenarios not the least-cost plan under a single scenario The best transmission plan may be different in each policy-based future scenario The transmission plan that is the best-fit (most robust) against all these scenarios should offer the most future value in supporting the future resource mix
Successful transmission expansion planning techniques Regional transmission expansion planning techniques may be directly applicable to National transmission planning initiatives in Colombia. Access Planning* (Customer driven, MISO led) Bottom Up Planning (Locally driven) MISO Planning Approach Policy Assessment (Inform and comply) The MISO planning approach combines a top down / bottom up approach to planning with generator interconnection and a policy needs assessment This combined approach ensures all needs are met All analysis occurs through an open and transparent process Top Down Planning (MISO driven) Source: MISO. Page 21
Day 1: Transmission expansion planning and stakeholder management Successful techniques to accelerate transmission projects from the planning to the execution phase. Needs assessment and methodology description Identification of the alternatives evaluated and performance metrics Cost/ benefit methodologies Stakeholder management and community outreach Stakeholders is an interesting word Translated to Spanish would be something like: all the beneficiaries and affected entities Transmission expansion planning: conceptualization and development of base scenarios and futures Methodologies for scenario development in transmission projects Experiences scenario development in transmission projects Risk mitigations and economic evaluations Page 22
Day 2: Integrating the relevant components for better planning flexible energy systems Flexible energy systems: current and futuristic view Elements that impact flexibility of energy systems Tools to better plan the increased flexibility of energy systems Page 23
Flexible energy systems: current and futuristic view The electric power system is already flexible It immediately responds to the intermittent nature of load variations The are new elements that are/will impact flexibility of energy systems Renewable Variable Generation (Wind and Solar) Distributed Generation (Mini Hydro) Demand as Active actor Flexible Energy Systems New Concepts in Energy Operations Planning Page 24
Tools to better plan the increased flexibility of energy systems Tools to better plan the increased flexibility of energy systems New generation forecasting tools to forecast sub-hourly (i.e. down to a minute). Inclusion of sub-hourly security constrained market simulations in the planning studies. Inclusion of various scenarios of renewable penetration levels in planning studies/simulations. Introduction to a workshop to apply these concepts is planned for the end of Day 2 Page 25
Transition to Day 1 item 6 in the agenda. Vision and context for the themes to present in the seminar Primary and secondary themes Introduction to seminar program. Attempts for Colombia and North America similarities Day 1: Transmission planning expansion techniques to alleviate restrictions Day 2: Integrating the relevant components for better planning flexible energy systems The full story for the seminar is next (by order of appearance). David Hilt: experience with regulatory bodies John Lawhorn: experience with Regional Transmission Organizations Flora Flygt: economics and scenario based planning, utility perspective Page 26
Muchas gracias por su atencion David Elizondo, PhD. Principal Advisor, Transmission Director of Business Development, Latin America Quanta Technology 4020 Westchase Boulevard, Suite 300 Raleigh, North Carolina, USA 27607 Office - 919-334-3089 Cell - 919-455-7567 www.quanta-technology.com Page 27