Utility Scale Integration of Wind and Solar Power Charles Reinhold WestConnect Project Manager Southwest Renewable Energy Conference Flagstaff, AZ
Presentation Overview WestConnect Background Area Control Error (ACE) Diversity Interchange WestConnect Regional Transmission Tariff Joint Initiatives: Intra-Hour Transmission Reservations & Scheduling Intra-Hour Transmission Accelerator Platform Dynamic Scheduling System 2
WestConnect Purposes Investigation of feasibility of costeffective wholesale market enhancements Work cooperatively with other Western Grid Organizations and market participants 3
WestConnect Arizona Public Service El Paso Electric Imperial Irrigation District Nevada Power Company Public Service Colorado Public Service New Mexico Sacramento Municipal Utility District Salt River Project Sierra Pacific Power Company Southwest Transmission Cooperative Transmission Agency of Northern California Tri-State G & T Association Tucson Electric Power Western Area Power Administration - Rocky Mountain Region - Desert Southwest Region -Sierra Nevada Region -CRSP Management Office TOTALS Jan. 2008 46,000 MW of Load 33,000 Miles of Transmission Line 7.0 Million Retail Customers Served 4
WestConnect Transmission Footprint LEGEND WestConnect Lines California Lines LADWP Lines DC Lines 5
ACE Diversity Interchange 6
What is ADI? ADI stands for Area Control Error (ACE) Diversity Interchange. ADI is the pooling of individual Area Control Errors (ACE) to take advantage of control error diversity (sign differences associated with the momentary generation/load imbalances of each control or balancing area). 7
Benefits of ADI By pooling ACE, participants are able to: Reduce control burden on individual control areas through the ADI equal share allocation method; Reduce generator movement; Reduce sensitivity to intermittent resource output; and, Improve Control Performance and reduce CPS2 violations. 8
What ADI is not An ancillary service; A process that will impact the terms and conditions of transmission or energy service; An energy sale nor does it necessitate the purchase of transmission; A commercial activity; A tool for making economic dispatch decisions; or, A burden on other areas. ADI is a reliability tool 9
ADI Project Implementation ACE Diversity Interchange Agreement (including the Technical Design) was executed November, 2006. Operating Group s goal to GO LIVE March 31, 2007 was achieved; due to EMS commitments, Idaho Power Company s GO LIVE date was June, 2007. On-going discussions regarding ADI (British Columbia stakeholders, CAISO, ColumbiaGrid, FERC, NWPP entities, Northwest Wind Integration Workgroup, PNW Regional Council, Pacific NW Security Coordinator, WECC, WestConnect members, Western Governors Association, Utility Wind Integration Group, CAISO, etc.). 10
Second Phase of ADI Participating Control Areas include: Arizona Public Service Bonneville Power Administration British Columbia Transmission Corporation (and the Host) Idaho Power Company NaturEner PS New Mexico Nevada Power NorthWestern Energy PacifiCorp East PacifiCorp West Puget Sound Energy Salt River Project Seattle City Light Sierra Pacific Tucson Electric PS Colorado (Xcel) Expanded evaluation (real-time screen shot) and reporting tools. BC Hydro System 11
Key ADI Design Principles Reliable operations of ADI assured by suspension protocols, e.g., Transmission overloads Directed by Reliability Coordinator Frequency deviation Reserve sharing Participants can suspend or trigger a global suspension, e.g., Idaho Power triggered a global suspension on July 30, 2008 and a global resumption on August 28, 2008. Suspension defaults to normal (i.e., without ADI) operations; this provides a fail-safe back-up. Adjacency requirement between/among Participants ensures transmission connectivity. 12
WestConnect Regional Transmission Tariff 13
Regional Transmission Pricing Status: Pricing Experiment began July 01, 2009 and will run for 2 years. FERC Petition to clarify Tariff provisions approved August, 2009 OATI Providing Scheduling & Billing platform Minimal activity to date 14
The Experiment 2-Year Pilot Eliminates transmission rate pancaking for limited transactions. Continues to pancake ancillary services and losses. Retains participants posted OATT rates. Start-up/implementation costs borne by Transmission Customers (thru OATI). Can be implemented through westtrans platform. Did not Require FERC filing for NJs. No State approval required. Fail-safe clause for NJs. Revenue distributed pro rata based on posted rates 15
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Joint Initiatives 17
Goal of the Joint Initiative Facilitated by WestConnect, Columbia Grid and Northern Tier Transmission Group Encourage and facilitate Western Interconnection parties to develop and implement high-value cost-effective regional products Broader focus than integration of variable generation, but immediate wind and solar integration issues provide significant motivation 18
Joint Initiatives Intra-Hour Scheduling/Reservation 19
Within-Hour Transmission Purchase and Scheduling Business Practices Strike Team recommends that Transmission Service Providers (TSP) accept within-hour schedule changes to the extent the schedules can be accommodated within TSP s existing infrastructure and without negatively impacting reliability of its system Strike Team recommends that TSPs sell hourly transmission products to commence within the current hour 20
Within-Hour Transmission Purchase and Scheduling Business Practices BAs/TSPs already allow within-hour schedules to address Emergencies Broader use of within-hour scheduling to be accomplished through TSP business practices or corresponding BA operating procedures No new transmission products No modifications of existing tariffs 21
Within-Hour Transmission Purchase and Scheduling Business Practices Strike Team has posted proposed business practices As each system is different, proposed practices take a fill in the blank approach, e.g., Approval Process Nature of Transmission How often and when within-hour schedules will be implemented Appropriate straddle ramp, the ramp duration, and the required notice Recognize that adjacent systems will need to coordinate on some elements 22
Within-In Hour Transmission Business Practices Update NV Energy has within-hour transmission business practices in place PacifiCorp, Puget, and Avista have draft business practices posted BPA has announced pilot project that will result in new schedules to address increases in wind generation to be accepted on the half-hour beginning 12/09 23 23
Within-In Hour Transmission Business Practices Update Other TSPs/BAs working on getting practices in place, hope to have coordination meeting in the next month 24 24
Joint Initiatives Intra-Hour Transmission Accelerator Platform I-TAP 25
I-TAP Facilitate intra-hour bilateral transactions within and outside of BA s area by providing information, communications links, and user interfaces Not limited to intra-hour, but anticipate that this is where it will provide greatest benefit Not centralized market User optionality 26
I-TAP Automated Information Exchange Information regarding state of participating systems, including individual generator s ability and prices to move up (inc) or down (dec) Leads to greater visibility regarding needs, opportunities, and costs Automated Mechanisms to access system flexibility swiftly and efficiently Communications links Links to OASIS Links to e-tag author and approval 27
I-TAP Update Business Case, Technical Specifications for RFP, and Agreement of Interest should be finalized and out to the Western Interconnection by end of August If sufficient interest RFP will be issued in September Informal polling show significant interest in moving I-TAP forward 28
Joint Initiatives Dynamic Scheduling System DSS 29
Dynamic Scheduling System (DSS) The DSS is a communications infrastructure that exchanges dynamic signals via e-tag and ICCP links Each participant will interface with the DSS via e-tag requests and ICCP links. The aggregate dynamic signal will be communicated to and from each participant via ICCP every two to four seconds. Following the operational hour, the integrated hourly values for the individual signals will be communicated to the participants via automated etag adjustments Minimal changes to existing processes and procedures DSS does not require any specific tariff changes or changes in business practices by the participating Transmission Providers 30
Dynamic Scheduling System (DSS) DSS allows participants to take advantage of load and resource diversity Supports increased utilization of the electric grid by providing the ability to implement dynamic schedules between any number of BAs at any scheduling granularity, depending upon need and capability Replaces the month s it takes today to negotiate and make system changes with a one-time DSS implementation that can accommodate any number of future dynamic schedules Contract negotiations can follow the same process used today for striking block energy deals, but taking just minutes rather than months 31
DSS facilitates Additional Benefits Development of intermittent resources More efficient use of generating resources Potential reduction in imbalance charges Potential market opportunities that may result in lower portfolio costs NERC and WECC standards and business practices 32
Contacts and Information WestConnect (www.westconnect.com) Charles Reinhold Project Manager reinhold@ctcweb.net 208-253-6916 33