21st Century Power Grids: Reliable, Controllable and Resilient Terry Boston President & CEO PJM Interconnection NAESO February 5, 2014
Greatest Engineering Achievements of the 20 th Century 10. Air Conditioning/ Refrigeration 9. Telephone 8. Computers 7. Agricultural Mechanization 6. Radio and Television 5. Electronics 4. Water Supply and Distribution 3. Airplane 2. Automobile 1. The Grid/ Electrification Source: National Academy of Engineering 2
Microgrids New York City After Superstorm Sandy 3
PJM as Part of the Eastern Interconnection KEY STATISTICS Member companies 950+ Millions of people served 61 Peak load in megawatts 165,492 MWs of generating capacity 183,604 Miles of transmission lines 62,556 2013 GWh of annual energy 791,089 Generation sources 1,376 21% of U.S. GDP produced in PJM Square miles of territory 243,417 States served 13 + DC As of 1/2015 4
Reliability Grid Operations Supply/Demand Balance Transmission monitoring 1 PJM Focus on 3 Things Regional Planning 15-Year Outlook 2 Market Operation Energy Capacity Ancillary Services 3 5
Top Challenges Facing the Industry Electricity demand Extreme earth and space weather World s largest fuel switch: Reliably managing switching to low-carbon fuel sources Natural gas operations coordination Integration of intermittent and demand side resources 21st century expectations for the grid: Need more HVDC Each Challenge is Also an Opportunity Adapted from: EPRI 6
Demand Growth from PHEVs? 35.3 % of U.S. energy use is oil 8.8 of 10 Americans commute using cars Wind and shale gas can power PHEVs 7
Market Test: Electric Vehicles and Ancillary Services Fast response frequency regulation Operating in PJM s Regulation Market Electrifying 2% of PJM s light-duty fleet would double storage capacity in the region 8
2011 - How Hot Was It? New Jersey: 108 F 9
Summer Derecho 90 High voltage and extra high voltage lines out. 4.2 million customers without electricity. 10
Sandy October 29, 2012 9:10 a.m. EDT 11
Superstorm Sandy s Toll 12
Restoring Electric Service An Army of 65,000 Linemen and Tree Crews Responded 13
Extreme Weather 2014 Polar Vortex 8 of 10 PJM Winter peak loads occurred in Jan. 2014 Source: Polar vortex via NASA 14
January 7: PJM Peak Load vs. Typical Load 15
Wind Chill vs. Forced Outage PJM Western Zone 16
Fuel Switch - Transitioning from Coal to Gas 2009 to Date: 26,000 MW in Retirement Notices 17
Managing a Sea-Change 18
PJM New Generation by Fuel Type Gas = 75% Since Capacity Market Began in 2007 35,040 MW Total 19
PJM Average Emissions 20
PJM Average CO 2 Emissions Requirement Under the EPA s Clean Power Plan Building Blocks CO 2 (lbs/mwh) 6% improvement in existing steam turbine coal units heat rate efficiency Existing Natural Gas Combined Cycles dispatched up-to 70% Renewables and Energy Efficiency grow to 7.5% of 2012 Load EPA Requirements Renewables and Energy Efficiency grow to 16.3% of 2012 Load Renewables and Energy Efficiency grow to 24% of 2012 Load 21
Cumulative Nameplate MW Wind Generation in PJM Operational and Proposed 25,000 20,000 If you like wind 22,300 MW 15,000 In planning queues - 12/31/2013 10,000 5,000 You have to love Storage Operational RPS Requirement 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 22
PJM Capacity Market Enables Demand Resources 23
PJM Pilot Water Heater power consumption +/-2.25 Kw base point PJM Frequency Regulation Signal Jan. 14, 2011, midnight to 3:00 a.m. 105-gallon electric water heater minimizes cost, helps frequency regulation. 24
More HVDC Would Benefit the U.S. HVDC in service HVDC under construction Back-to-back terminals 25
Central Grid Control Uncertainty: What Lies Ahead? High Future Growth Concentrated Fuel Portfolio Centralized Supply by Large Units Distributed Self-Supply By Smaller Units Highly Diverse Fuel Portfolio Low Future Growth Autonomous Micro-grid Control 26
Today: Looking Forward Source: EPRI 27
Meeting the Challenge Source: EPRI 28
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A Tale of Two Nuclear Power Plants Daiichi Daini Only six miles apart, but a world apart in coping with the tsunami. At the Daini plant, operators responded with something like the U.S. nuclear industry s FLEX strategy and saved all four reactors. Source: NEI 30
You Can See Prosperity It s Where the Lights are On. 31