Klondike Wind Power Project, Oregon Donald Furman Senior Vice President - Business Policy and...
-
Upload
annice-fitzgerald -
Category
Documents
-
view
214 -
download
0
Transcript of Klondike Wind Power Project, Oregon Donald Furman Senior Vice President - Business Policy and...
Klondike Wind Power Project, Oregon
Donald Furman Senior Vice President - Business Policy and DevelopmentDecember 3, 2009
Energy Bar Association Mid-Year Meeting
Integrating Renewables into the Electricity Grid-Tariff and Market Issues
Iberdrola Renewables:A Leader in Execution
… with excellent growth prospects… with excellent growth prospects
A collection of exceptional assets…A collection of exceptional assets…
#2 developer in the U.S. with 3.1 GWs(1,337 MWs of new wind in 2008)
#2 developer in the U.S. with 3.1 GWs(1,337 MWs of new wind in 2008)
826 employees in 28 U.S. states,DC, India and Canada
826 employees in 28 U.S. states,DC, India and Canada
636 MW of CCGT & peaking capacity on the strategic CA-OR border
636 MW of CCGT & peaking capacity on the strategic CA-OR border
155 BCF of owned & contracted natural gas storage positioned for a volatile future
155 BCF of owned & contracted natural gas storage positioned for a volatile future
U.S. represents 1/3 of earningsU.S. represents 1/3 of earnings
40% of the industry’s largest development pipeline is in the U.S.
40% of the industry’s largest development pipeline is in the U.S.
US RenewablesUS Renewables
Corporate SupportCorporate Support
Wind Power Gas 2,876 MW in‘08 536 MW CCGT
100 MW peaking155 BCF Owned
& Contracted
2
North American Asset Portfolio
Updated September 1, 2009
Wind projects owned or controlled
Wind projects under construction
Gas storage owned
Thermal generation
Biomass under construction
Biomass cogeneration
Wind Energy’s Impact to the Power System
• Four unique characteristics that affect integration:– variability– near-zero variable cost– difficulty of forecasting– remoteness
• These characteristics can be better accommodated in some markets structures than others
Balkanized US markets makes integration difficultBalkanized US markets makes integration difficult
Optimal Wind Integration Conditions
• Large balancing area with access to neighboring markets
• Short-term generation markets• Ancillary services markets• Effective use of wind forecasts by system operators• Flexible transmission services
Organized markets are far better for integrationOrganized markets are far better for integration
Benefits of Larger Balancing Areas
• Diversity benefit• Greater logistical flexibility - Larger pool of resources to
manage variations in electric supply or demand• Reduced correlation of wind resource• Result is substantial cost savings
– Midwest ISO estimates savings from consolidating its 26 balancing areas into one are 3.7 to 6.7 times greater than the costs
– Savings are large even on power systems without wind energy
• Consolidation can be done physically or virtually
Short-term ElectricityGeneration Markets
• Hourly markets = high integration costs– Variations accomodated using regulation services– Expensive
• 10 minute markets = low integration costs– Schedules and transactions can change 6 times per hour– Parties to the transaction adjust rather than system operator
RTOs tend to provide lower integrations costsRTOs tend to provide lower integrations costs
Expanded Market Use
• Ancillary services markets provide incentives for generators, demand response, and other flexible resources to offer their services to the grid
• Markets ensure that lowest-cost resources provide needed flexibility services
Wind Forecasting
• Wind integration costs are largely due to uncertainty about the next day’s wind output
• Wind energy forecasts are already remarkably accurate
• Reliable wind forecasts allow system operators to significantly reduce their uncertainty about future wind output, thereby lowering the amount of reserves they need to hold to accommodate variations in wind output
• Largest opportunities for improvement:
– Better integrating forecasts into power system operations
– Providing grid operators with useful information
Flexible Transmission Services
• Transmission capacity is often physically available when wind output is highest, but contractual and operating rules prevent use of this capacity
• Conditional firm allows available transmission capacity to be used by others outside of a few peak hours
• Dynamic line rating determines real-time capacity of a line, instead of relying on rules of thumb that greatly underestimate available capacity
Wind Integration Solutions
HighCost
LowCost
Source: UWIG
Low Wind Penetration Level
High Wind Penetration Level
Markets
Additio
nal
Flexible
Generation
Wind
C
urtailment
Storage
Accessing Intra-hour flexibility
Price Responsive Load
Demand Response
Dynamic Scheduling
Simple Cycle GT
Combined Cycle GT
In Range of 1-2%
Pumped Storage
Batteries
Flywheels
SMES
CAES
Capacitors
PHEV
A
ccurate
Forecasting
Real time forecasting
Centralized Forecasting