Renewables California Update Mid-C 2010
Transcript of Renewables California Update Mid-C 2010
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California Update
14th Annual Mid-C Seminar
Wenatchee, Washington
July 19, 2010
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Disclaimer
The conclusions and opinions in this presentation are the authors. They do not
reflect the opinions, conclusions or policy positions of the Western Power TradingForum or its members, Resero Consulting or its clients, WECC or the VGS, or the
CAISO.
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Dynamic Transfers
Topics
TRECSIndependentTransmission
SupplyVariability
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Copyright 2010 Resero Corporation4
TRECS (Tradable Renewable Energy Credits) Scorecard
CPUC decision issued on March 11, 2010
Through 2011, 25% of RPS target could be met with TRECS
After 2011, no cap on TRECS
IOU quotas were essentially filled at the time
Decision was stayed immediately
TRECS cant be used to meet RPS at all
CARB issued separate rules that do allow use of TRECS to meet 33% RPS
Separate initiative underway to broker a compromise (also SB 722)
60% in-state, 15% dynamic transfer, 25% TRECS
TRECS
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Copyright 2010 Resero Corporation5
Practical Implications of TRECS
Out-of-state renewable development has limitations
Availability of dynamic transfer capability (500 MW at COI)
Ability of BAs to absorb VG (BPAs DSO 216)
Availability and cost of transmission
Availability and cost of balancing, firming, shaping
In-state development has limitations
Costs of siting, permitting and construction
Public resistance to new infrastructure
Availability, quality and suitability of in-state resources
CPUC decision and SB 722 likely to face challenges under Commerce Clause
Lends urgency to Joint Initiative, Efficient Dispatch Toolkit, similar efforts
TRECS
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aka, Who Can Build What?
~ December, 2009
CAISO proposes to confer right of first refusal to incumbent TOs for renewable
energy projects in their service territories
Independent developers complain
CPUCcomplains
~ April, 2009
CAISO backs off ROFR
Devil is in the details
Trans-Bay Cable - $400 million HVDC connecting SF with Pittsburg
Western Grid Development Proposals
Independent Transmission
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Supply Variability
Indicative ResultsSource: CAISO Renewable Issues Forum 2010: Market and Product Review
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Supply Variability
Indicative ResultsSource: CAISO Renewable Issues Forum 2010: Market and Product Review
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Copyright 2010 Resero Corporation9
Supply Variability
Indicative ResultsSource: CAISO Renewable Issues Forum 2010: Market and Product Review
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Supply Variability
Indicative ResultsSource: CAISO Renewable Issues Forum 2010: Market and Product Review
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Supply Variability
Renewable (VG) Integration Issues
Managing variability and uncertainty
Whos responsible: producer, buyer, someone else?
Where is it done: gen bus, source BA, sink BA?
What tools are available: dynamic transfer, on-site supplemental resources, firming
and shaping services, changes in scheduling, etc.?
Are new grid services needed?
Ramp product for speed of response
Load following product for long-duration response
Should VG pay for its impacts on the grid?
Should VG be incentivized to bid day-ahead? Should it be required to provide
flexibility?
Is compensation for suppliers of flexibility adequate?
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Supply Variability
What the Future MightLook Like*
Slow phase-out of the Day-Ahead/Hour-Ahead Markets
Continuous delivery of power is incompatible with infrequent, periodic spot markets
at defined points in time
VG and Smart Grid require frequent opportunities to update market positions
Facilitated by transition to more flexible supply and price-responsive demand
Addition of five minute energy markets, 15 minute scheduling intervals at the interties
Mitigates the impact of block hour schedules
Allows VG to do its own balancing
Automation and technology make it possible
CPS1 and CPS2 will be replaced by RBC or something else
Free-flowing interties necessary to maximize VG production Interconnection frequency and local voltages are the real reliability metrics
* See the disclaimer
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Thanks!
Any Questions?
Contact:
Jack Ellis
Resero Consulting