Grid Operations and the Increasing Challenges of Balancing Renewable Energy ALBUQUERQUE QUALITY NETWORK

Transcription

1 Grid Operations and the Increasing Challenges of Balancing Renewable Energy JANUARY 18 ALBUQUERQUE QUALITY NETWORK JANUARY 18, 2018

2 AGENDA Overview and History of PNM Grid Operation Challenges Generation Portfolio Changes Q & A SLIDE 2 JANUARY 18, 2018

3 SLIDE 3 JANUARY 18, 2018 OVERVIEW AND HISTORY OF PNM

4 CORPORATE OVERVIEW PNM Resources - Albuquerque Energy holding company for PNM and TNMP Serves 766,000 homes & businesses in New Mexico and Texas 2016 Revenues of $1.4B Approximately 1,710 employees PNM Utility Serves about 520,000 electricity customers statewide Founded in 1917 New Mexico's largest electricity provider Transmission and distribution service provider with over 15,000 miles of lines Also sells electricity on the wholesale market TNMP Serves approximately 246,000 homes and businesses throughout Texas Transmission and distribution service provider with over 9,000 miles of lines SLIDE 4 JANUARY 18, 2018

5 SERVICE TERRITORIES SLIDE 5 JANUARY 18, 2018

6 PNM COMMUNITY SERVICE Proudly support more than 400 New Mexico organizations each year through grants, volunteer work and event participation Employee Volunteers 790 employees volunteering 10,800 employee volunteer hours 550 community events 3,804 families assisted 287 directly supported organizations SLIDE 6 JANUARY 18, 2018

7 HISTORY: ELECTRIC INDUSTRY FORMATION In the beginning Most initial utility use was for commercial / industrial purposes By 1910, only 10% of households nationwide were wired for electricity Great opportunity for expansion of services Utilities offered to wire individual residences Offerings of gas and electric appliance for home began proliferating By 1920s Most urban areas are electrified State regulation of utilities expands Limited federal regulation of multi-state utilities ABQ Gas, Electric Light & Power Crew 1908 SLIDE 7 JANUARY 18, 2018

8 ALBUQUERQUE SAWMILL POWER PLANT ABQ Electric Power Co. formed Aug 1904 to build & operate generation Power production began in 1905 With 2 new generators at sawmill, ABQ power capacity was doubled ABQ Sawmill plant, as expanded over time, was to be the primary source for electricity for ABQ for the next 47 years! SLIDE 8 JANUARY 18,

9 QUIZ IN 1912, WHAT WAS THE MOST POPULAR HOME ELECTRICAL APPLIANCE AFTER THE LIGHT BULB? SLIDE 9 JANUARY 18,

10 NEW ELECTRIC IRONS (REPLACING STOVE HEATED IRONS) SLIDE 10 JANUARY 18,

11 PNM S FIRST ELECTRIC TRANSMISSION LINE mile long, 44 kv Line Built from Bernalillo Power Plant to Santa Fe- Water Street Power Plant Allows sharing of generation for economy and reliability SLIDE 11 JANUARY 18,

12 PNM S CURRENT GENERATION AND TRANSMISSION SYSTEM Green dots are PNM Generation sites Red lines are the primary backbone transmission lines in NM Lower voltage lines provide a portion of the transmission capability to deliver resources and distribute power to outlying smaller load areas distant from Albuquerque and El Paso Not shown on map is PNM s 108 MW solar on the distribution system SLIDE 12 JANUARY 18,

13 HOW DOES THE SYSTEM WORK? 1. Electricity is generated and leaves the power plant 2. Its voltage is increased at a step-up substation 3. The energy travels along a transmission line to the area where the power is needed 4. Once there, the voltage is decreased or stepped-down at another substation 5. A distribution power line carries the electricity 6. Electricity reaches your home or business SLIDE 13 JANUARY 18, 2018

14 ALTERNATING CURRENT IN YOUR HOME Frequency 60 Hertz SLIDE 14 JANUARY 18, 2018

15 THE WESTERN TRANSMISSION GRID COVERS 14 WESTERN UNITED STATES AND PARTS OF CANADA AND MEXICO SLIDE 15 JANUARY 18, 2018

16 BALANCING GENERATION AND LOAD Losses Loads Exports Power Generated Imports Demand Supply Electricity by nature is difficult to store Supply must equal demand at any given instant Frequency needs to be maintained close to 60 Hz at all times SLIDE 16 JANUARY 18, 2018

17 2018 PROPORTION OF ENERGY PRODUCED BY FUEL TYPE PNM projects that over 44% of the 2018 energy will be from a carbon free source! SLIDE 17 JANUARY 18, 2018

18 TERMS: Electric Power Rate, per unit time, at which electric energy is generated or consumed. Typically measured in watts, kw s or MW s Kilowatt (kw) measure of electric capacity equal to 1,000 watts Megawatt (MW) measure of electric capacity equal to 1,000 kilowatts Generation Capacity (Power) is the maximum electric output an generator can produce typically measured in MW s Electric Energy Production/Consumption over a period of time (typically one hour) and measured in kwh s, MWh s, or GWh s Factoids: Average U.S. residence will consume 10,700 kwh per year, or 29.3 kwh per day A 1 MW generator could theoretically supply enough energy for 819 average U.S. residences SLIDE 18 JANUARY 18, 2018

19 DISPATCHABLE GENERATING RESOURCES Baseload Resource Coal, Nuclear Intermediate Resource Combined Cycle Gas Peaking Resource Simple Cycle Gas, Reciprocating Engine SLIDE 19 JANUARY 18, 2018

20 INTERMITTENT MUST TAKE GENERATING RESOURCES Solar Wind SLIDE 20 JANUARY 18, 2018

21 SLIDE 21 JANUARY 18, 2018 MANAGING THE GRID WITH INCREASING RENEWABLE PENETRATION

22 MW SUMMER LOAD CURVE Time of Day System Load SLIDE 22 JANUARY 18, 2018

23 MW ECONOMIC DISPATCH Time of Day Palo Verde Four Corners San Juan Solar Wind System Load SLIDE 23 JANUARY 18, 2018

24 MW SUMMER LOAD CURVE + SOLAR Time of Day Solar System Load SLIDE 24 JANUARY 18, 2018

25 MW SUMMER LOAD CURVE + SOLAR + WIND Time of Day Wind Solar System Load SLIDE 25 JANUARY 18, 2018

26 MW NET SUMMER LOAD CURVE Time of Day Net Load Wind Solar System Load SLIDE 26 JANUARY 18, 2018

27 MW SUMMER LOAD CURVE INCREASING SOLAR Time of Day Solar Net Load Wind System Load SLIDE 27 JANUARY 18, 2018

28 MW SUMMER LOAD CURVE INCREASING SOLAR Time of Day Solar Net Load Wind System Load SLIDE 28 JANUARY 18, 2018

29 MW SPRING SEASON NET LOAD CURVE Time of Day Solar Wind Net Load Wind System Load SLIDE 29 JANUARY 18, 2018

30 MW SPRING SEASON LOAD CURVE INCREASING SOLAR Time of Day Solar Net Load Wind System Load SLIDE 30 JANUARY 18, 2018

31 MW SPRING SEASON LOAD CURVE INCREASING SOLAR Time of Day Solar Net Load Wind System Load SLIDE 31 JANUARY 18, 2018

32 MW SPRING SEASON LOAD CURVE, INCREASING SOLAR: PNM DUCK CURVE Time of Day Net Load System Load SLIDE 32 JANUARY 18, 2018

33 Net Load (MW) CURRENT AND FUTURE YEARS LOAD SHAPES 1,600 1,400 1,200 1, SLIDE 33 JANUARY 18, 2018

34 Percentage ACTUAL RENEWABLE PENETRATION MARCH 24 TH, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 41% 42% 42% 41% 43% 42% 39% 36% 33% 29% 30% 31% 25% 27% 30% 25% 24% 24% 22% 23% 20% 19% 14% 10% Time of Day Renewable Percentage of Load Average SLIDE 34 JANUARY 18, 2018

35 MITIGATION MEASURES Flexible Dynamic Generation Resources Expand Footprint Organized Market Demand Response Energy Storage Improved System Planning Techniques Improved Renewable Generation Forecasting SLIDE 35 JANUARY 18, 2018

36 GENERATION PORTFOLIO CHANGES SLIDE 36 JANUARY 18, 2018

37 LONG RANGE PROJECTIONS WITHOUT SJGS SLIDE 37 JANUARY 18, 2018

38 POTENTIAL REPLACEMENT RESOURCES Solar Intermediate Resource Combined Cycle Gas Wind Battery Peaking Resource Simple Cycle Gas, Reciprocating Engine SLIDE 38 JANUARY 18, 2018

39 PAST AND PROJECTED ENERGY BY FUEL TYPE Decreasing Share Coal Increasing Share Gas Renewables Nuclear 65% of the energy will be carbon free in 2025! SLIDE 39 JANUARY 18, 2018

40 PROJECTED CARBON FREE PENETRATION SLIDE 40 JANUARY 18, 2018

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