Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded...
Transcript of Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded...
![Page 1: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/1.jpg)
Advice Pertaining to ERC Resolution No.16 and the Role of Hybrid Generation Advice with respect to specific questions from PIPPA
George Horvath
Month Day, Year
![Page 2: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/2.jpg)
Part A Introduction
From Power Grid #1, to Power Grid #2
George Horvath - AECOM
Month Day, Year
![Page 3: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/3.jpg)
6/16/2014 Presentation Title Page 3
![Page 4: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/4.jpg)
6/16/2014 Presentation Title Page 4
![Page 5: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/5.jpg)
I used to get my electricity from something like this.
6/16/2014 Presentation Title Page 5
![Page 6: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/6.jpg)
Mobile Phone Market
6/16/2014 Presentation Title Page 6
![Page 7: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/7.jpg)
6/16/2014 Presentation Title Page 7
![Page 8: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/8.jpg)
I still get my electricity from something like this.
6/16/2014 Presentation Title Page 8
![Page 9: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/9.jpg)
6/16/2014 Presentation Title Page 9
Why is this so?
![Page 10: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/10.jpg)
Healthy markets are about room for diversity and choice
•“Plenty of room in the market.”
•Diversity brings innovation and wealth.
•Wealth is freedom to chose what is best for each participant.
6/16/2014 Presentation Title Page 10
![Page 11: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/11.jpg)
Electricity Markets around the world are not real markets.
•There is very limited freedom of choice for market participants
•The Rules are made by small select groups – mostly with technical rather than marketing backgrounds.
•Technical barriers to market entry are too high for many new players to enter
6/16/2014 Presentation Title Page 11
![Page 12: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/12.jpg)
Power Grid #1 – “The Stone Age of Power”
6/16/2014 Presentation Title Page 12
![Page 13: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/13.jpg)
Generation – We need much more – We need to Control Greenhouse Gasses
6/16/2014 Presentation Title Page 13
![Page 14: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/14.jpg)
Not Enough Transmission – We need to Extend – We need new Capabilities
6/16/2014 Presentation Title Page 14
![Page 15: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/15.jpg)
Municipal Grid – Growing Too Fast – Growing Too Old Need to Extend and Replace while Improving Services
June 16, 2014 Presentation Title Page 15
![Page 16: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/16.jpg)
Business Customers – Need More Reliability
6/16/2014 Presentation Title Page 16
![Page 17: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/17.jpg)
Residents –Need to control cost of energy – Need Real Choice – Regarding Supplier
6/16/2014 Presentation Title Page 17
![Page 18: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/18.jpg)
New Forms of Generation – Need New Grid Services
6/16/2014 Presentation Title Page 18
Large Scale Wind Generation is Here
Large Scale SolarPV Generation (Coming)
![Page 19: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/19.jpg)
Distribution System – Will become a “Smart Grid” system Hosting Hybrid & Embedded Generation
June 16, 2014 Presentation Title Page 19
GENERATION
GENERATION
![Page 20: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/20.jpg)
Will all “Distribution” Then be a “Transmission System”?
June 16, 2014 Presentation Title Page 20
GENERATION
GENERATION
![Page 21: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/21.jpg)
The Big Opportunity is – EV Power Storage
6/16/2014 Presentation Title Page 21
GRID SERVICESGRID SERVICES
GRID SERVICES
![Page 22: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/22.jpg)
Page 22
Power Grid #2 - when we can say:-
6/16/2014 Presentation Title
We run our cars on 100% green energy.
What is more: - We get it for free!
![Page 23: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/23.jpg)
A healthy Energy market room for diversity and choice
•“Plenty of room in the Energy Market.”
•Diversity in the Energy Market brings innovation and wealth and reduction in cost for consumers.
•Wealth is customer participation through freedom of choice.
6/16/2014 Presentation Title Page 23
![Page 24: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/24.jpg)
Energy Market Governance Must Adapt to Enable a Diverse and Vibrant Energy Market
6/16/2014 Presentation Title Page 24
![Page 25: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/25.jpg)
Part B
Summary of PIPPA’s Questions together with
Summary of AECOM’s Advice
![Page 26: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/26.jpg)
PIPPA Topic 1
Given that Section 4.2, Annex A of Energy Regulatory Commission (“ERC”) Resolution 16, series of 2011 is inconsistent with diagram 4 of the same ERC Resolution;
PIPPA would like advice on the following:-
6/16/2014 Presentation Title Page 26
![Page 27: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/27.jpg)
PIPPA Topic 1
Question 1(a) from PIPPA:
Is the definition of “Connection Assets” in Section 2.0, Annex A of Reso. 16 consistent with the definition of connection assets in other jurisdictions?
AECOM Answer - Advice to PIPPA:
The definition of “Connection Assets” is consistent with the definition of connection assets in some other jurisdictions
In practice, there is a broad diversity in connection assets, which depends on the intended operational and business purposes they will serve.
6/16/2014 Presentation Title Page 27
![Page 28: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/28.jpg)
PIPPA Topic 1
Question 1(b) from PIPPA:
What specific types of assets or equipment are considered “Connection Assets” in other jurisdictions?
AECOM Answer - Advice to PIPPA:
Connection assets are links in the electricity network that are constructed to connect one grid customer at a location in the network.
There is a broad diversity in types of assets which serve as connection assets, ranging from entire switchyards and transmission lines, to as simple as the conductors that link a generator to a transmission switchyard. The form depends on the purpose they will fulfil.
6/16/2014 Presentation Title Page 28
![Page 29: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/29.jpg)
PIPPA Topic 1
Question 1(c) from PIPPA:
Is the definition of “Connection Assets for Generation Customers of Transmission Provider” in Section 4.2, Annex A of Reso. 16 consistent with the definition of connection assets in other jurisdictions?
AECOM Answer - Advice to PIPPA:
There is a wide diversity in the forms and the extent of connection assets of power plants in other jurisdictions.
There is also wide diversity in the forms and extent of connection assets of distribution customers, which may in turn, connect generation with the grid.
6/16/2014 Presentation Title Page 29
![Page 30: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/30.jpg)
Connection Assets
6/16/2014 Presentation Title Page 30
POWER PLANTCONNECTION
ASSET
![Page 31: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/31.jpg)
Example - The 500 kV Connection Assets of Nam Theun 2 Corporation - Laos
6/16/2014 Presentation Title Page 31
![Page 32: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/32.jpg)
Also: ~ 320 km of 500 kV Transmission Line Connecting NT2 to EGAT RE2 Substation.
6/16/2014 Presentation Title Page 32
![Page 33: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/33.jpg)
Captive Power Plant Built or Taken Over, By a Generation Company - Examples
At; Industry Parks - Steel Mills – Oil & Gas Facilities – Pulp & Paper Mills – Sugar Refineries – Mines – Port Facilities – Municipal Substations - - - -
6/16/2014 Presentation Title Page 33
G2G1
Transmission Grid
CAPTIVE POWER PLANTESTABLISHED OR TAKEN OVER BY IPP
INDUSTRY-OWNED SWITCHYARD
SUPPLYING LOCAL DEMAND
EXPORTING TO THE GRID
![Page 34: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/34.jpg)
PIPPA Topic 2
With regard to a switchyard being an integral part of a power plant;
PIPPA would like advice on the following:-
6/16/2014 Presentation Title Page 34
![Page 35: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/35.jpg)
PIPPA Topic 2
Question 2(a) from PIPPA:
Do you agree with the proposition that a switchyard is an integral part of a power plant? Why, or why not?
AECOM Answer - Advice to PIPPA:
Yes, a switchyard is part of a power plant, if it has been built primarily for the purpose of conducting the business of power generation.
A switchyard is not part of a power plant if it has been built primarily for the purposes of the shared grid, even if power plant connects to it.
6/16/2014 Presentation Title Page 35
![Page 36: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/36.jpg)
PIPPA Topic 2
Question 2(b) from PIPPA:
Are you aware of any power plant without its own switchyard? If yes, please explain the circumstances in which that plant is being operated.
AECOM Answer - Advice to PIPPA:
Yes, when assets of a state-owned combined generation and transmission corporation was split into two state-owned entities –> a Generation Corporation, and Transmission company – Before generation is sold off.
New power plant is developed near its fuel source. It will have a switchyard – for its own operational & business purposes – reliability, maintenance, expansion, etc.
6/16/2014 Presentation Title Page 36
![Page 37: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/37.jpg)
PIPPA Topic 3
With regard to the statement:
“The acquisition of a power plant’s switchyard does not affect Grid Security.”
PIPPA would like advice on the following:-
6/16/2014 Presentation Title Page 37
![Page 38: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/38.jpg)
PIPPA Topic 3
Question 3(a) from PIPPA:
NGCP has asserted that it needs to acquire the switchyard of certain power plants (particularly those that also directly connect the plant to a distribution utility) for grid security. What are your comments on this?.
AECOM Answer - Advice to PIPPA:
There are no means by which the acquisition of a grid-user customer’s assets could be justified under a regulated, grid investment process.
If there is a need for any asset, then the Grid Investment Process ensures that grid company can fund its own asset. I know of no mandate by which it could disrupt its customers’ businesses by breaking them up.
6/16/2014 Presentation Title Page 38
![Page 39: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/39.jpg)
I know of no cases wherein Power Plant switchyards have been compulsorily acquired from Power Plant Owners by the Grid Company.
I have been Expert Witness in the break up of a Power Generation Business wherein the High Court decided that:-
“Any assets created as part of Power Plant are parts of the Power Plant and must remain with the Power Plant in the division of assets to be sold separately.”
6/16/2014 Presentation Title Page 39
![Page 40: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/40.jpg)
PIPPA Topic 3 Question 3(b) from PIPPA:
Assuming that the acquisition of a power plant’s switchyard may enhance grid security, are there other more effective ways to achieve such purpose? If yes, what are they? Why are they more effective?
AECOM Answer - Advice to PIPPA:
It is my opinion that transferring ownership of power plant switchyards would DECREASE RELIABILITY and INCREASE THE COST of the grid for users and the public.
There are many ways of improving grid reliability other than increasing the number of assets, and these alternatives would involve lesser cost and have produced verifiably positive results.
6/16/2014 Presentation Title Page 40
![Page 41: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/41.jpg)
PIPPA Topic 3 – Ways of Improving Grid Reliability
Better designs - better materials – more standardisation – Reliability Centred Maintenance – (FEMCA) – clear and exacting systems performance requirements – better condition monitoring and testing – better in-service training of engineers – stricter compliance and reporting – proactive investigations of non-compliances – well developed codes and standards of performance –
and also: “N-1 and “N-2”
6/16/2014 Presentation Title Page 41
![Page 42: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/42.jpg)
PIPPA Topic 3 – Ways of Improving Grid Reliability
AECOM Answer - Advice to PIPPA:
For the Transmission Industry; the formal consideration of reliability centres on “N-1” and “N-2”, which is not efficient.
Other reliability techniques are not formally implemented within utilities. Grid reliability would benefit from any and all of the initiatives listed on the previous slide.
Current initiatives being undertaken by utilities include:
Changing the utility’s culture from being “CAPEX-led” to being “Services-led” with “Asset Management” as the focus.
Improving the quality of organisational function e.g., training and adopting PAS55, is the current target for leading utilities.
6/16/2014 Presentation Title Page 42
![Page 43: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/43.jpg)
PIPPA Topic 3
Question 3(c) from PIPPA:
What is the impact, if any, upon grid security if a power plant’s switchyard connects the plant to the grid and at the same time directly connects the plant to a distribution utility?
AECOM Answer - Advice to PIPPA:
There is no effect, provided that the arrangement is correctly engineered and adequate planning and operational processes are followed.
There is a recognised commercial problem - the reduction in Grid Company Revenues resulting from such connections.
The commercial concerns of the grid company can be addressed, but not by restricting connections.
6/16/2014 Presentation Title Page 43
![Page 44: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/44.jpg)
PIPPA Topic 4
Allowing a power plant to directly connect to a distribution utility enhances a power plant’s operational efficiency.
PIPPA would like advice on the following:-
6/16/2014 Presentation Title Page 44
![Page 45: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/45.jpg)
PIPPA Topic 4
Question 4(a) from PIPPA:
Do you agree with this proposition that the power plant efficiency is improved by this? Why or why not?
AECOM Answer - Advice to PIPPA:
I agree firmly with this proposition. Serving local load reduces transmission losses and therefore increases power plant efficiency.
In fact, many/ most System Operators formally practice “Locational Marginal Pricing” (LMP) to weight the bid-prices in favour of power plants that are closest to the load prior to determining the order of dispatch. The method of determining LMPs is to consider the system losses.
6/16/2014 Presentation Title Page 45
![Page 46: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/46.jpg)
PIPPA Topic 4
Question 4(b) from PIPPA:
What are the technical advantages and disadvantages of connecting a distribution utility directly to the switchyard of a power plant? If there are disadvantages, what are the mitigating measures that can be implemented?
AECOM Answer - Advice to PIPPA:
The main advantage is an improvement the efficiency of the utilisation of the transmission grid assets.
Improvement in the reliability of supply for the local distribution customers. Also, lower cost power to local communities.
There are no disadvantages. 6/16/2014 Presentation Title Page 46
![Page 47: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/47.jpg)
PIPPA Topic 5
Hybrid embedded generation (where a power plant is connected to a grid and at the same time directly connected to a distribution utility or other end user) is allowed in other jurisdictions.
PIPPA would like advice on the following:-
6/16/2014 Presentation Title Page 47
![Page 48: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/48.jpg)
PIPPA Topic 5
Question 5(a) from PIPPA:
Do you agree with this proposition? Why or why not?
AECOM Answer - Advice to PIPPA:
I firmly agree that Hybrid and Embedded generation is allowed in other jurisdictions.
In fact, it is very actively encouraged by governments, through their departments of energy and other governmental and quasi-governmental organisations.
Hybrid and Embedded generation is actively facilitated by Electricity Regulators through preparation of suitable codes and standards for planning, connections and operations.
6/16/2014 Presentation Title Page 48
![Page 49: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/49.jpg)
PIPPA Topic 5
Question 5(b) from PIPPA:
What are the issues (technical or otherwise) that were considered in determining whether or not hybrid embedded generation should be allowed?
AECOM Answer - Advice to PIPPA:
Precedent – they existed in isolation before the grid, and continue operation after grid connection.
Requirement for green energy, and energy efficiency.
Advances in technology have created many new forms.
Effective international standards have been prepared allowing ease of connection and operation.
6/16/2014 Presentation Title Page 49
![Page 50: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/50.jpg)
Hybrid & Embedded Generation is Encouraged in -
All States of the European Union - The United Sates –Australia - New Zealand - The Pacific Islands - Parts of Asia – e.g. Singapore, Laos. It is the Future
6/16/2014 Presentation Title Page 50
TransmissionNetwork
Sub-transNetwork
DG
DG
LOAD
DistributionNetwork
DG
DG
LOAD
Low VoltageNetwork
DG
DG
LOAD
LV Load Bus
LV Distribution
BusMV Distribution
Bus
MV Load Bus
Sub-trans Load BusTransmission
Load Bus
Sub-trans Distribution
Bus
CG LOAD
DMR
DMR
DMR
DA
DA
DA
DMR
![Page 51: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/51.jpg)
PIPPA Topic 5
Question 5(b) from PIPPA:
What are the issues (technical or otherwise) that were considered in determining why they are not allowed?
AECOM Answer - Advice to PIPPA (Continued):
Opposition from Grid Companies about loss of revenue and increasing operational complexity of the grid.
Lack of grid planning processes that incorporate consideration of the effects and the needs of HG/EG.
Poor technical administration of connection processes
Misplaced concerns about the security impacts on the grid
6/16/2014 Presentation Title Page 51
![Page 52: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/52.jpg)
PIPPA Topic 5
Question 5(c) from PIPPA:
In other jurisdictions where hybrid embedded generation was allowed, what were the consideration for allowing this?
AECOM Answer - Advice to PIPPA (Continued):
Effective technical arrangements – and Least Cost!
Negotiations between PP Owner and the Connecting Party. Less costly for the community than grid supply. Improves community support for the PP Development.
Sometimes, there is a government agency requirement to offer supply to local communities.
6/16/2014 Presentation Title Page 52
![Page 53: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/53.jpg)
PIPPA Topic 5
Question 5(d) from PIPPA:
In other jurisdictions where hybrid embedded generation was allowed, how were these implemented (e.g., how was the plant connected the grid and to a distribution utility or other end user)?
AECOM Answer - Advice to PIPPA (Continued):
Preparation of Appropriate Codes of Practice for technical and commercial administration of the connections
Current Best practice in my opinion is according to IEEE Standard 1547 – 2003 Standard for Interconnecting Distributed Resources with Electric Power Systems.
6/16/2014 Presentation Title Page 53
![Page 54: Advice Pertaining to ERC Resolution No.16 and the Role of ......system Hosting Hybrid & Embedded Generation. Presentation Title . June 16, 2014 Page 19 . GENERATION ... CAPTIVE POWER](https://reader034.fdocuments.us/reader034/viewer/2022042207/5eaa0d701aeb4d473b43db5c/html5/thumbnails/54.jpg)
Regulatory Roadmap for Development of Grid Services
6/16/2014 Presentation Title Page 54
Rev
iew