Accommodating High Levels of Variable Generation. EPRI Managing Complexity for Safety and Reliability September 14-15, 15, 2009

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Accommodating High Levels of Variable Generation EPRI Managing Complexity for Safety and Reliability September 14-15, 15, 2009

Agenda About NERC About the Integration of Variable Generation Task Force (IVGTF) Variable Resources Recommendations Next Steps

Variable Resources Variable resources are types of electric power generation that rely on an uncontrolled, variable fuel (e.g. wind, sunlight, waves, tidal forces, and some types of rivers) to generate electricity. Most renewables fall into this category. Reliably integrating these resources into the bulk power system will require significant changes to traditional methods used for system planning and operation. Ongoing efforts brought together by today s report have the potential to fundamentally change how the system is planned, operated, and used from the grid operator to the average customer.

About NERC International regulatory authority for electric reliability in North America Develop & enforce reliability standards Analyze system outages and near-misses & recommend improved practices Assess current and future reliability

Integration of Variable Generation Task Force Formed by NERC s Planning & Operating Committees in December 2007 47 participants, 23 official members Utilities, ISO / RTO s, wind and solar manufacturers, associations, government Strong cross-border collaboration (U.S. & Canada) Focus on reliability

Significant Growth Expected New policies & environmental priorities driving growth 145,000 MW of wind proposed in coming 10 years Increases seen in solar (i.e. 30,000 MW in California ISO queue) 60,000 Projected Summer Wind On-Peak: Total Nameplate Capacity 50,000 40,000 MW 30,000 20,000 10,000 0 2008 2017 2008 2017 2008 2017 2008 2017 2008 2017 2008 2017 2008 2017 2008 2017 ERCOT FRCC MRO NPCC RFC SERC SPP WECC Existing Planned Proposed

Bulk Power System Designed to Meet Demand in Real Time Typical Daily Demand Curve Operating Reserves Peak Load Intermediate Load Capacity: Instantaneous measure of electricity available at peak Base Load Energy: Electricity Produced over Time

Variable Fuels Must Be Used When Available Variable generation often does not positively correlate with electricity demand Only 8 26% of wind s nameplate capacity is available at times of peak demand for electricity Ramps in availability can challenge grid operators Wind & Solar Electricity Production Appears Complementary While variable generation differs from traditional generation in important ways, properly integrated variable resources do not reduce reliability or otherwise negatively affect the grid.

Variable Fuels Must Be Used Where Available Variable generation often located in areas remote from demand centers and existing transmission infrastructure Legend Demand Centers High Wind Availability

Keeping Reliability in the Balance Bulk power system reliability must be maintained, regardless of the generation mix; All generation must contribute to system reliability within their physical capabilities; and Industry standards and criteria must be fair, transparent and performance-based.

Areas of Further Study & Effort High levels of variable generation will require significant transmission additions and reinforcements. Barriers to transmission development should be addressed Additional flexible resources, such as demand response, plug-in hybrid electric vehicles, and energy storage may help balance steep ramps Improved measurement, forecasting, and modeling of variable generation output is needed 2010 All Electric Chevrolet Volt Courtesy of General Motors

Areas of Further Study & Effort More comprehensive planning approaches and operational practices are needed, including probabilistic planning approaches In aggregate, variable generation connected at the distribution level (i.e. local wind generation and rooftop solar panels) may impact bulk power system reliability Deploying complementary types of variable generation (e.g. wind and solar), leveraging fuel diversity over large geographic regions, and advanced control technologies show promise in managing unique operating characteristics Greater access to larger pools of generation and demand may facilitate the large-scale integration of variable resources

Next Steps Specific Activities Outlined Three-year plan Assignments Reports Standards Review/Creation Industry Coordination Industry Reference Manual to be completed by March, 2010

IVGTF Operating Committee Activities 2nd Qtr. 2009 End Date: 2nd Qtr. 2010 Forecasting techniques must be incorporated into day-to-day operational planning and real-time operations routines/practices including unit commitment and dispatch 2nd Qtr. 2009 End Date: 1st Qtr. 2010 Balancing areas must have sufficient communications for monitoring and sending dispatch instructions to variable resources.

IVGTF Operating Committee Activities 2nd Qtr. 2009 End Date: 1st Qtr. 2010 Impact of securing ancillary services through larger balancing areas or participation in wider-area balancing management on bulk power system reliability must be investigated 1st Qtr. 2010 End Date: 2nd Qtr. 2011 Operating practices, procedures and tools will need to be enhanced and modified

IVGTF Operating Committee Activities 2nd Qtr. 2009 End Date: 1st Qtr. 2010 Operators would benefit from a reference manual which describes the changes required to plan and operate the bulk power and distribution systems to accommodate large amounts of variable generation

Question & Answer Contact: Mark Lauby Director of Reliability Assessments & Performance Analysis mark.lauby@nerc.net 609.524.7077