Electric Power Infrastructure:Electric Power Infrastructure:Status and Challenges for the Status and Challenges for the FutureFuture
Mark LaubyDirector, Reliability Assessments and Performance Analysis
Owners, Operators, and Users
2005 Energy Policy Act:
• All users, owners, and operators of the bulk-power system shall comply with reliability standards
FERC Rule
• All entities subject to the Commission’s reliability jurisdiction… (users, owners, and operators of the bulk-power system) shall comply with applicable Reliability Standards …
U.S. Energy Policy Act of 2005Reliability Legislation
One industry self-regulatory ERO
FERC oversight
• Delegates authority to set and enforce mandatory standards to ERO
• ERO may delegate authority to regional entities
Standards apply to all users, owners, and operators of bulk power system
Independent governance and compliance program
3
North American Electric Reliability Corporation (NERC)
Mission: “To ensure the reliability of the North American bulk power system”
• Formed in 1968
• U.S. Electric Reliability Organization
• Working to gain similar recognition in Canada
Regional Entities
United StatesFederal Energy
Regulatory Commission
MexicoComision Reguladora
de Energia
Electric Reliability Organization Overview
Electric ReliabilityOrganization
RegionalEntities
Other ERO Members
Other ERO Members Bulk Power System
Owners, Operators, Users
Bulk Power System Owners, Operators, Users
ReliabilityStandards
ComplianceEnforcement
Reliability Assessment
Government Oversight
Canada NEB, Alberta, British Columbia,
Manitoba, Ontario, New Brunswick, Nova Scotia,
Quebec, and Saskatchewan
NERC OverviewNERC Overview
NERC Organization
President& CEO
President& CEO
Compliance&
OrganizationCertification
Compliance&
OrganizationCertification
Situation Awareness & Infrastructure
Security
Situation Awareness & Infrastructure
Security
StandardsStandards
Training, Education & Personnel
Certification
Training, Education & Personnel
Certification
Information Technology
Information Technology
Legal & Regulatory
Legal & Regulatory
Finance & Accounting
Finance & Accounting
Reliability Assessment & Performance
Analysis
Reliability Assessment & Performance
Analysis
Human Resources
Human Resources
Funding
Funding for ERO and regional delegated functions allocated to load-serving entities• Bulk power system users
• Based on Net Energy for Load (NEL)
ERO will fund regions for delegated functions
Penalties offset costs• Funded regardless of penalty
collections
…and through the “Virtuous Circle”
MeasurePerformance
AnalyzeResults
AssessNeeds
DevelopSolutions
Implement Solutions
MeasurePerformance
AnalyzeResults
AssessNeeds
DevelopSolutions
Implement Solutions
Standards
Enforcement
Readiness Program
Situation Awareness
Training
Assessments
Regional Delegation Agreements
Delegated functions
• Compliance
• Standards
• Organization registration
• Reliability assessment
• Reliability readiness and improvement
Regional consistency is key
• Transparency
• Predictability
• Uniform outcomes
Ensuring Reliability
Standards Development
Compliance
Situation Awareness
Looking Back: Events Analysis
Looking Forward: Emerging Issues
2007 Emerging Issue Recap
Example of Emerging Issue
Wind Resources Integration
NERC Task Force Status & Recommendations
• Background
• Changes needed by Planners and Operators
• R&D Needs
Way Forward
Projected Winter WindTotal Nameplate Capacity
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
ERCOT FRCC MRO NPCC RFC SERC SPP WECC
MW
Existing Planned Proposed
Projected 2008/09 Winter Wind
Projected Winter WindExpected On-Peak Capacity
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
ERCOT FRCC MRO NPCC RFC SERC SPP WECC
MW
Existing Planned Proposed
Where is Wind Located?
Energy is located remote from demand centers
Unlocking this energy will change:
• Planning
• Operations Source: EPRI & NREL
IVGTF Preliminary Recommendations
R&D Recommendations: Flexibility
Forecasting
Transmission
What Must Change?
Planners: Consistent methods for energy & capacity
Add Probabilistic Expansion Analysis
Design Flexibility during Resource & Transmission Planning to manage variability and uncertainty
System Design must consider Distributed Variable Resources
Transmission, PHEVs, storage & demand response provide resource flexibility
Standard, generic power flow and stability models required
Reference Manual for Planners needed
What Must Change?
Enhanced Standards and Procedures for interconnection are required:
• Voltage & Frequency Ride-Through
• Reactive & Real Power Control
• Frequency & Inertial Response
Operators need to know how to manage added variability and uncertainty
Balancing Areas must have communications to monitor & provide dispatch signals to variable resources
Reference Manual for Operators needed
AESO Wind Power Forecasting Pilot Project
Forecasts delivered Midnight April 14 2008 for the Next 24 Hours
0
100
200
300
400
0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 0:00
April 14, 2008 Hour of Day
MW
Actual Wind fcst 1 fcst 2 fcst 3
Operators: Forecasting should be incorporated into operations
Larger Balancing Areas impact on Reliability requires Study
Preliminary R&D Recommendations
R&D Recommendations: Flexibility
• Probabilistic System Planning
• Demand Response, Storage and other complementary technologies supporting wind integration
• Data requirements for Effective Load Carrying Capability calculations
• Balancing Area size & Ancillary Service Requirements
• Integrating large amounts of Distributed Generation
Variable Resource Forecasting
Transmission
• Interconnection Requirements
• Advanced transmission technologies (HVdc, FACTS, etc.)
Specific Activities Outlined
• Three year plan
• Suggested Assignments
Reports
Standards Review/Creation
Industry Coordination
Vital next step is the need for an Industry Reference Manual
Detailed Recommendations & Work Plan
Emerging Issues
Emerging Issues Risk Evolution:
Consequence
Lik
elih
oo
d
High
HighLow
Greenhouse Gas
Reductions
Fuel Storage &
Transportation
Rising Global Demand for
Energy & Equipment
Increased Demand-Side & Distributed
Generation Resources
Transmission of the 21st Century
Limited Water
Availability
Mercury Regulatio
n
1-5 Years6-10 Years
Thank you
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