Connecting New Generation in New Zealand Len Gould Customer Services Manager Transpower New Zealand Ltd
Outline New Zealand s power system & Transpower s roles The planning process for new generation The changing face of the National Grid Summary
The New Zealand System Supply Installed generation capacity 8,800 MW North Island 5,300 MW South Island 3,500 MW Includes hydro, geothermal, coal, gas and wind generation Approx 90% of generation is grid connected, 10% embedded in lines distribution networks or onsite Demand Peak 6,748MW (June 2006) 20% of total demand from Transpower s 10 connected customers
Transpower s role Owner, operator and transmission planner for the National Grid 14,500 km of 110 and 220 kv lines 611 km HVDC Link, inc 40km across Cook Strait 173 GXPs Connected customers 7 generation customers 26 lines customers 10 large industrial customers Transport energy, often located in remote areas, to major load centres. Balance demand and supply between regions during generation station outages (including intermittent generation) Core grid investment planned to ensure security of supply, $4 billion over the next decade, will also improve access for renewables located in central North Island and further south
Connection of new or modified generating units Obligations for generating units 1 MW or greater, either directly connected to the National Grid or embedded in a distribution network : Generator obligations Advice to the System Operator of intention Capacity information for embedded generation > 10 MW Commissioning plan with the System Operator If connecting to the National Grid, obligations under Connections contract (Benchmark / Transmission Agreement), Connection Policy (Connection Code) Distributor obligations Required under Connections Contract to advise Transpower of embedded generation System Operator obligations Under the Electricity Governance Rules, assess and monitor generator compliance with the Asset Owner Performance Obligations and Technical Codes
Connecting to Transpower starts with an enquiry Connecting New Generation in New Zealand Enquiry First point of contact: Customer Services Manager Feasibility Transpower s two primary roles Grid Owner Assess compliance with EGRs Effect of connection on other grid users System Operator Requirements of EGRs ACS, dispensations or equivalence arrangements Commissioning plan Contracting Construction Commissioning Operation
MoU Environmental Assessment and Resource Consent Process for Transmission (and Substation/Switching Station)
Dispatch Process Overview Basic principal security constrained economic dispatch Co-optimisation of energy and reserve Part G of the Electricity Governance Rules Transpower as System Operator schedules and dispatches generation on the basis of the bids and offers made by purchasers and generators. Dispatch rules established for intermittent (wind) generation (www.electricitycommission.govt.nz/opdev/comqual/windgen). Most participants can change their offer up to two hours ahead of dispatch, schedules up to 72 hours in advance give an indication of the likely dispatch quantities and prices. There is no day ahead or unit commitment market
Dispatch based on offers with locational marginal pricing (Nodal Pricing) to arrive at the overall lowest cost dispatch solution SPD model. http://www.transpower.co.nz/?id=5969
Risks for generation developers to consider Connection to Transpower s assets does not provide transmission capacity or dispatch rights. Dispatch of generation and trading of electricity occurs within the framework of the Electricity Governance Rules Transmission constraints Constraints on Commissioning Activities Electricity market volatility Generation dispatch patterns Electricity demand patterns Network configuration Asset availability Regulatory risk.
Connecting to local networks Talk to the distributor early in the process Typically different rules for different scale projects, eg < 10kW 10kW to < 500kW 500kW and above Basic info on most lineco websites (links at www.ena.org.nz) Often network specific issues
The Changing face of the National Grid Transmission provides the level playing field on which participants in the whole electricity market complete. The Government s NZES will move supply side investment in a particular direction The regulatory framework will need to change in order to allow the National Grid to provide the timely robust/flexible transmission system when it is required. Transpower is developing an integrated planning approach to transmission development: Discussing with EC and Ministry of Economic Development; and Will seek further engagement from all affected parties
Basic information available from Transpower The Annual Planning Report Existing National Grid including the capability of transmission assets forming part of it over the next 10 years Planned or possible upgrades to National Grid assets over the next 10 years Demand and generation forecasts for the next 10 years Existing transmission constraints particular to the region in which the generator proposes to connect The System Security Forecast Identifies and explains the transmission constraints on the National Grid over a ten year forecast period Published by Transpower as System Operator
More information Transpower: www.transpower.co.nz Connecting New Generation in New Zealand Commissioning Procedure (Draft) System Security Report Grid Reliability Report Annual Planning Report (next edition due April 2007) Electricity Commission: www.electricitycommission.govt.nz Transmission investment Rules & Regulations Electricity Networks Association: www.ena.org.nz Links and contacts for all distribution companies Electricity market data - Energy Market Services www.ems.co.nz
Summary Connection does not guarantee dispatch rights Generation has to meet regulatory requirements Changes to GPS and NZES increases the emphasis on renewables Engage with Transpower early so that your expectations are able to be met
Questions?