Maximizing Renewable Energy in the US Electric Grid

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Maximizing Renewable Energy in the US Electric Grid Presented at: 2011 Workshop -- The Road to a 100% Renewable Energy System Patricia Hoffman Assistant Secretary, Office of Electricity Delivery and Energy Reliability August 1, 2011 www.oe.energy.gov U.S. Department of Energy National 1000 Academy Independence of Engineering Ave., -SW BMED Washington, DC 20585 8/2/2011 1

Why Clean Electricity Generation Economy economic development and growth Security and Reliability diversified generation and storage Environment Air and water President Obama s clean energy initiatives to reach: 80% of electricity from clean energy sources by 2035 1 million electric vehicles on the road by 2015 2

Impacts Benefit Category Economic Reliability (and Risk) Environmental Energy Diversity Economics Benefit Sub-category Improved Asset Utilization T&D Capital Savings T&D O&M Savings Theft Reduction Energy Efficiency Electricity Cost Savings Power Interruptions Power Quality Air Emissions Energy Security Market Operations Policy - Incentives Specific Outcomes Optimized Generator Operation (utility/ratepayer) Deferred Generation Capacity Investments (utility/ratepayer) Reduced Ancillary Service Cost (utility/ratepayer) Reduced Congestion Cost (utility/ratepayer) Deferred Transmission Capacity Investments (utility/ratepayer) Deferred Distribution Capacity Investments (utility/ratepayer) Reduced Equipment Failures (utility/ratepayer) Reduced Distribution Equipment Maintenance Cost (utility/ratepayer) Reduced Distribution Operations Cost (utility/ratepayer) Reduced Meter Reading Cost (utility/ratepayer) Reduced Electricity Theft (utility/ratepayer) Reduced Electricity Losses (utility/ratepayer) Reduced Electricity Cost (consumer) Reduced Sustained Outages (consumer) Reduced Major Outages (consumer) Reduced Restoration Cost (utility/ratepayer) Reduced Momentary Outages (consumer) Reduced Sags and Swells (consumer) Reduced Carbon Dioxide Emissions (society) Reduced SO X, NO X, and PM-10 Emissions (society) Reduced Oil Usage (society) Reduced Wide-scale Blackouts (society) Reduced volatility Minimize Electricity Cost (consumer) Adapted from *Methodological Approach for Estimating the Benefits and Costs of Smart Grid Demonstration Projects, EPRI, January 2010.

Strategy Advance Grid Functionality/flexibility - technologies, markets and policies Build in security and resiliency Systems Now Near-term Long-Term Generation Coal, Natural Gas, Nuclear, Central Optimized Generation Balance central/distributed Transmission System monitoring by based on limited parameters Sensor-based monitoring by operators Automatic switchable network Expanded Contingency Analysis Distribution Customer Utilities perform operations manually (high latency) Some demandresponse programs, especially among commercial and industrial customers; most residential customers on fixed rates Real-time tools to improve reliability and system efficiency All customers being offered a variety of technologies and pricing policies to better establish demand-side management practices Integration of PEVs, real-time operations and dynamic reconfiguration and protection- Ability to Microgrid Customers are partners with utilities in the management of electricity. Utility business model: neutral arbitrator of the grid or an energy service company?

Challenges

U.S. Renewable Resources Source: NREL 6

Transmission and Clean Energy Clean Diversified Generation Fleet 7

Renewable Electricity Futures Study Renewable Electricity Generation Today: 10% of Total U.S. Electricity Supply Renewable Electricity Generation by 2050: 80% Scenarios Biomass (0.6%) Geothermal (0.4%) Solar (0.1%) 50 40 50% 30-40% Wind (1.8%) 40 30 Hydropower (7%) 20 10 0 Variable Renewables Disapatchable Renewables Emerging Technologies Potential to displace commercial tech up December to 4% each 2008 8

Core 80% Renewable Electricity Scenario Dispatch stack: summer peak in 2050 Dispatch stack: spring (off-peak) in 2050 Source: Renewable Electricity Futures Study: Executive Summary, October 2010 9

Enhanced Flexibility Needed for Electric Grid with Increasing RE Penetration Source: NREL 1 0

Simulation, Modeling, and Control Integration of forecasting and renewable energy production tools into grid resource planning and operation tools Forecasting generation capacity and ramp ranges needed to balance the system (orange bands) Incorporating all sources of uncertainty/variability: wind and solar generation and demand Example Outcome: predicting generation deficiency above the available range (gray band) Tool is installed at the CAISO Control Center to help real-time dispatchers anticipate and address ramping needs.; Planned deployment to other ISOs 11

Energy Storage Technologies Energy Pumped Hydro Compressed Air Energy Storage (CAES) Batteries o o o o o o Sodium Sulfur (NaS) Flow Batteries Lead Acid, Lead Carbon Lithium Ion NiMH NiCad Flywheels Electrochemical Capacitors Pumped Hydro (Taum Sauk) 400 MW Sodium Sulfur Battery 2 MW Flywheels 1 20 MW Power 12

Basics: Energy Storage Time Scales Seconds to Minutes Minutes - one Hour Several Hours - one Day Regulation Ramping Peak shaving, load leveling Different Time Regimes will Require Different Storage Solutions

Frequency Regulation 100kW/15 min Flywheel system Demos CEC / DOE and NYSERDA / DOE 2 x 1MW / 15 min Flywheels in NE-ISO 4 x 1MW / 15min Li-Ion in PJM. Potentially twice as effective as gas turbines (Y. Makarov, PNNL, ) Potentially a 70-80% Reduction in CO2 emission over present methods (Fioravanti, KEMA, 2007)

Utility-Scale Storage on the Grid Concept Storage defers upgrade; Opens possibility for regional islanding, renewables First 1MW/6hr in 2007, 3 in 2009 + Duke, First Energy, PG&E 3x2MW/6hr In 2009 NaS, Flow Batteries, Lead Carbon 3 ARRA Projects -- 53MW 15

Community Energy Storage 25 kw / 2 hrs 15 year life time Backup, Platform for Solar, Utility Dispatchable ARRA Project: 20 Li-Ion CES Units on Detroit Edison Grid

discharging charging New Electric Vehicle Load as a Grid Resource Use plug-in hybrid electric vehicles to aid in renewable generation source integration Determine balancing requirements for 10 GW of additional wind NWPP oriented Represents 12% RPS requirement Determine resource availability Use 2001 NHTS Data for driving habits and population information Use V2GHalf and V2GFull charging Balancing Requirements Resource Availability Max. charging (3.6 kw = 240V*15A) Max. discharging (-3.6 kw) V2GFull V2GHalf discharging charging Max. charging (3.6 kw) Never discharge! 17

New Electric Vehicle Load as a Grid Resource Completed report with the following key insights All new balancing requirements for 10GW of new wind capacity in NWPP by 2020 could be furnished by electric vehicles Solution insensitive to battery size Availability of infrastructure during day is essential % of NWPP vehicle fleet to meet new balancing requirements Population to meet additional balancing based on work charging availability 18

Automated Demand Response and Energy Efficiency -Saves Capacity and Energy Electric Load Profile of Auto DR Participants on 8/30/2007 Source: PG&E 19

Hawaii s Wealth of Renewable Potential Molokai Kauai Oahu Maui Lanai Wind Solar OTEC/ Wave MSW Geothermal Pumped Storage Biomass/ Biofuel DSM/Energy Efficiency Hawaii

Grid Modeling/Planning

Hawaii Case Study Issues Facing Hawaii Grids 21.0 19.0 Apollo Wind Farm Medium Wind, One Hour 60.15 60.10 Balancing and Frequency Regulation 17.0 15.0 13.0 60.05 60.00 59.95 Ride-Through 11.0 9.0 59.90 59.85 Anti-Islanding 4/3/2007 2:15:00 PM 4/3/2007 2:25:00 PM 4/3/2007 2:35:00 PM 4/3/2007 2:45:00 PM 4/3/2007 2:55:00 PM 4/3/2007 3:05:00 PM 4/3/2007 3:15:00 PM Wind Farm MW Wind Speed KTS System Frequency Hz Reserve Requirements Excess Energy 22

Cyber Security Measure and Assess Security Posture Develop and Integrate Protective Measures Detect Intrusion & Implement Response Strategies Sustain Security Improvements Energy asset owners are able to perform fully automated security state monitoring and control systems networks with real-time remediation Nextgeneration control systems components and architectures produced with built-in, endto-end security will replace older Control systems networks will inform operator response to provide contingency and remedial actions in response to attempted Implement effective incentives through Federal and state governments to accelerate investment in secure control system technologies and practices

Planned R&D to Address High RE Penetration OE/EERE collaboration areas on system integration of RE Better forecasting to ensure reserves and manage uncertainty Developing comprehensive sub-hourly and real-time models for simulation of grid operations and for planning Improving scheduling, dispatch and control systems for managing uncertainty Developing coordinated wide-area control approaches and algorithms Increasing flexibility of existing grid assets, DR, and storage to facilitate RE integration Examination of multi-terminal HVDC/AC for offshore wind development Adapting foreign RE integration and grid operations experience to the U.S. where prudent TECHNOLOGIES- MARKETS- POLICIES Zone A Energy flow Information flow Zone B Zone C Zone D Transmission System Zonal Model Load Storage Wind Solar Hydro Nuclear/ Thermal/ Nat. Gas 1 min 1 min 1 hr 1 hr Resource Resource Resource Commitment Resource Dispatch Commitment Dispatch Probability of Sufficient Balance Probability of GHG Effluent Exceeding Limit Parameter Sensitivity Probability of Ciritical Path Congestion Mean Cost of Commitment and Dispatch Probability of Violating CPS and BAAL Scores Comparison of Alternative Cases Renewable Integration Model 24