OPSI Annual Meeting

Session 4: Future Generation Mix in PJM

Arshad Mansoor

Senior Vice President

October 7, 2013

Power System Transformation

2© 2013 Electric Power Research Institute, Inc. All rights reserved.

Unprecedented Pace and Scale of Change

Driven by Technology, Policy, and Consumer Expectation

• Shale gas

• Variable generation (wind and solar)

• Local generation

• Demand for electricity

• Cyber & Physical security

• Energy and environment policy

3© 2013 Electric Power Research Institute, Inc. All rights reserved.

Adapting to ChangePower System Transformation

A Highly Interconnected Power System that Optimizes Energy ResourcesA Resilient, Flexible, and Connected System

4© 2013 Electric Power Research Institute, Inc. All rights reserved.

The Imperative for Transformation: Grid Reliability & Energy Affordability

The European Network of Transmission System Operators for Electricity (Entsoe)

October 04, 2013

• Major Capacity outage during times of high variable generation would pose “a severe risk for the system to collapse.”

• The reduction in fault levels weakens the overall strength of the network resulting in quality of supply issues such as large voltage steps, harmonics and flicker

Energy Affordability

• German Residential Electricity Price: 40c/kWh and rising

• Spain: $25.5B Euro deficit since renewable subsidies were not recovered through rates because of price cap