holistic planning (for the good of the whole)
DESCRIPTION
Presentation made to the San Francisco Chapter of the IEEE PES Society in March 2008TRANSCRIPT
![Page 1: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/1.jpg)
Holistic Transmission and Resource Planning- For the Good of the Whole
Stephen LeeSenior Technical ExecutivePower System Planning and OperationMarch 3, 2008
IEEE Power and Energy Magazine, Sept/Oct 2007
Presented to IEEE Power Engineering SocietySan Francisco Chapter
Hosted by California PUC, San Francisco
![Page 2: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/2.jpg)
2© 2007 Electric Power Research Institute, Inc. All rights reserved.
Outline
• Electricity – Central Planning or Free Market• What is Holistic Planning?• Integrated Planning Revisited• Reliability Assessment of Whole Operating Space• Holistic Transmission Planning• Holistic Resource Planning• Concept of Unity in Diversity• Optimal Holistic Resource Mix with CO2 Cost• Costs and Benefits Distribution• Demonstration of the CAR software
![Page 3: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/3.jpg)
3© 2007 Electric Power Research Institute, Inc. All rights reserved.
Electricity – Central Planning or Free Market
• Decades of the regulatory model or “Central Planning”– Problems of cost-overrun and/or over-capacity– Central planning does not handle uncertainties well
• Power markets– California market meltdown and bankruptcy of Enron– Free markets tend to be short-sighted and not social
conscious• Lessons learned
– Both systems have problems
![Page 4: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/4.jpg)
4© 2007 Electric Power Research Institute, Inc. All rights reserved.
Need for New Approach
• With restructuring and greater market activities, the power grid is being used in ways not in the original designs
• Increased reliability risk to grid operation• Increased burden on greater situational awareness by
operators• It is time to revisit the way we plan the power grid• The power grid should again be designed to be operated
in the new ways it will be used, and perhaps even in unanticipated uses
• Key words: HOLISTIC, ROBUST, FLEXIBLE
![Page 5: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/5.jpg)
5© 2007 Electric Power Research Institute, Inc. All rights reserved.
What is Holistic Planning?
• Holistic Planning is to develop a whole or a part of the electric power system, with full consideration of all its parts, responsive to the public, modeling all reasonably probable scenarios of uncertainties affecting planning as well as future power system operating conditions, with additional tests to assess the robustness of the system when exposed to “unlikely” but potentially devastating disturbances or other events, in order to achieve a system which has:– Economic efficiency– Adequate reliability– Acceptable environmental impacts
![Page 6: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/6.jpg)
6© 2007 Electric Power Research Institute, Inc. All rights reserved.
Principles of Holistic Planning
• To compare alternative plans, a comprehensive and quantitative metric which corresponds to the maximization of public benefits for the whole system.
• Probabilistic reliability criteria in lieu of deterministic criteria; otherwise, transmission investments could be driven equally by contingencies that have widely different probabilities, resulting in non-optimal resource allocation.
• The scope of the whole system extends beyond the power system toinclude the local, regional and global environment.
• Fair and equitable method for allocating costs and benefits having a causal and proportional relationship between the use of the assets and the costs or benefits to be borne by the parties.
• The rules of the road for each party should be such that its incentive does not induce decisions against the global objective of the whole system. Instead, each party would stand to gain if the whole system achieves more and more global optimality. By following individual and diverse incentives, unity in global objective should be achieved.
![Page 7: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/7.jpg)
7© 2007 Electric Power Research Institute, Inc. All rights reserved.
Integrated Planning Revisited
• The ideological platform is “optimal resource allocation”• A balanced evaluation of the supply side and the demand
side in which all energy supply alternatives and all conversion of energy into energy services are subject to evaluation on a level playing field.
• Involves individuals as well as collective preferences• For example, on the individual side, customers want full
control of choices which they make based on the options presented to them; on the collective side, customers do accept affiliation to a group and therefore admit to assume their share of a collective responsibility
• Integrated planning can be viewed as a process for balancing individual as well as collective preferences.
![Page 8: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/8.jpg)
8© 2007 Electric Power Research Institute, Inc. All rights reserved.
Reliability Assessment of Whole Operating Space
• We assess reliability for limited operating conditions, e.g.,– Annual peak load– All transmission lines in service
• What about? – Other load levels or other hours– Maintenance schedules of transmission and
generation– External or market transactions
![Page 9: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/9.jpg)
9© 2007 Electric Power Research Institute, Inc. All rights reserved.
Boundary Conditions
Transmission and GeneratorConnectivity and Topology
Power Flows –
MW
Load
and
Vol
tage
Pro
file
OperatingState – “You are here”
Inside Boundary Conditions
System OperatingLimits
Outside BoundaryConditions
Transmission and GeneratorConnectivity and Topology
Power Flows –
MW
Load
and
Vol
tage
Pro
file
OperatingState – “You are here”
Inside Boundary Conditions
System OperatingLimits
Outside BoundaryConditions
Load
Genera
tion Disp
atch
![Page 10: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/10.jpg)
10© 2007 Electric Power Research Institute, Inc. All rights reserved.
G1 >0
G2 >0
G3 >0
A1 A2
A3 A4
CCommunityommunity
AActivityctivity
RRoomoom
G3=3000
G3=2000
G3= -3000
G3= -2000
G3= 0
A 4-Area Interconnection
A floor plan is a two-dimensional nomogram.
G1 is net export out of area A1, when positive.G2 is net export out of area A2, when positive.G3 is net export out of area A3, when positive.G4 = - G1 - G2 - G3, is automatically given, when G1, G2, and G3 are specified.
The Constraints on Any Combinationof Net Exports (G1, G2, G3 and G4)
are walls of this 3-D “CAR”
![Page 11: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/11.jpg)
11© 2007 Electric Power Research Institute, Inc. All rights reserved.
G1 >0
G2 >0
G3 >0
G3=3000
G3= -3000
G3= 0
![Page 12: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/12.jpg)
12© 2007 Electric Power Research Institute, Inc. All rights reserved.
N-1
N-0
Boundary = N-1 Contingency Criteria
![Page 13: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/13.jpg)
13© 2007 Electric Power Research Institute, Inc. All rights reserved.
Boundary = N-2 Contingency Criteria
N-1 criteria enforce possibly uneven reliability
N-1
![Page 14: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/14.jpg)
14© 2007 Electric Power Research Institute, Inc. All rights reserved.
CAR Provides Statistics of Contingency Constraints to TNB (Malaysia)
![Page 15: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/15.jpg)
15© 2007 Electric Power Research Institute, Inc. All rights reserved.
Bar Chart for a Month
![Page 16: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/16.jpg)
16© 2007 Electric Power Research Institute, Inc. All rights reserved.
Holistic Transmission Planning
• White space is the inside of the CAR (community Activity Room) where operation is reliable
• Future growth requires operating outside the white space
• How do we expand the grid to fit all future operating conditions (described by the ellipse?)
• CAR gives the holistic answer by moving all necessary walls the right amount (increase capacities of line 1-4 by 2500 MW and 2-4 by 1200 MW)
Line 2-4
Line 1-4
![Page 17: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/17.jpg)
17© 2007 Electric Power Research Institute, Inc. All rights reserved.
Load Level
Dur
atio
n
Variation of CAR with Different Load Levels
![Page 18: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/18.jpg)
18© 2007 Electric Power Research Institute, Inc. All rights reserved.
Relate Monthly Load Duration Curves to Scheduled Outages
Monthly Load Duration Curves
0 5000 10000 15000 20000 25000
Hou
rs
Load (MW)
![Page 19: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/19.jpg)
19© 2007 Electric Power Research Institute, Inc. All rights reserved.
No. of Simultaneous Scheduled and Unscheduled Line Outages (Within Same Day) Over 12 Months of a Year (Maximum, Average and Minimum)
Simultaneous Line Outages (All)
0.0
5.0
10.0
15.0
20.0
1 2 3 4 5 6 7 8 9 10 11 12
Month
No.
of L
ines
Max Outages / Day Min Outages / Day Average Outages / Day
![Page 20: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/20.jpg)
20© 2007 Electric Power Research Institute, Inc. All rights reserved.
Holistic Resource Planning
• How to achieve results of integrated planning in today’s non-vertical utility structure?
• Parts of the whole maximizing their separate incentives may work against achieving the good of the whole
![Page 21: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/21.jpg)
21© 2007 Electric Power Research Institute, Inc. All rights reserved.
Unity in Diversity
• Diversity means the exercise of an individual’s right of free choices.
• Unity in Diversity means creating unity while preservingdiversity, or allowing diversity to achieve unity.
• Hypothesis –– Align an individual’s selfish incentive more with the
socially optimal objective– Then the creative energy of individuals would achieve
the social objective.
![Page 22: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/22.jpg)
22© 2007 Electric Power Research Institute, Inc. All rights reserved.
Tier 1 Costs(Direct Costs)
Total Cost = Tier 1 Cost + Tier 2 Cost
* Best Decision
Tier 2 Costs (Public Good)
Decision is not optimal if Tier 2 costs are ignored
Optimal Decisions
![Page 23: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/23.jpg)
23© 2007 Electric Power Research Institute, Inc. All rights reserved.
Common Property of the Human Race?
• Tier 2 assets (e.g., air, water, land) with PROPERTY RIGHTS belonging to the inhabitants
• Create a Tier 2 class of ownership• Distribute Tier 2 revenues and benefits to all Tier 2 owners
through Public Benefits Funds (PBF)• People will then behave in accordance with the objectives of
minimizing the total Cost (direct Tier 1 + Tier 2 costs)
“It is a position not to be controverted that the earth, in its natural, cultivated state was, and ever would have continued to be, the common property of the human race.” -- Thomas Paine, Agrarian Justice
![Page 24: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/24.jpg)
24© 2007 Electric Power Research Institute, Inc. All rights reserved.
Basic Principles of UDi-ism (Unity in Diversity)
• Tier 2 Assets and Prices to capture externalities• Tier 2 Ownership and Property Rights
What if the price of a hamburger includes a medical cost due to health effect?
What benefits will it bring to the consumer and to the country?
What new and healthier food will become good businesses?
![Page 25: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/25.jpg)
25© 2007 Electric Power Research Institute, Inc. All rights reserved.
Levelized Annual Cost for Six Power Plant Types with CO2 Cost = $40/ton
0
100
200
300
400
500
600
700
800
900
1000
0 1000 2000 3000 4000 5000 6000 7000 8000
Hours per Year Operation
$/kW
/yr
NuclearCOALComb CycleIGCCCTWind/Solar w Storage
![Page 26: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/26.jpg)
26© 2007 Electric Power Research Institute, Inc. All rights reserved.
CO2 Price Sensitivity of Electric Generation Market Shares with Oil Price at 60 $/bbl, Coal Price at 4 $/MBTU and
Wind/Solar w Storage at 5000 $/kW
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
CO2 Cost ($/ton)
Mar
ket S
hare
Wind/Solar w StorageCTIGCCComb CycleCOALNuclear
![Page 27: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/27.jpg)
27© 2007 Electric Power Research Institute, Inc. All rights reserved.
![Page 28: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/28.jpg)
28© 2007 Electric Power Research Institute, Inc. All rights reserved.
Oil Price = $60 / bbl
![Page 29: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/29.jpg)
29© 2007 Electric Power Research Institute, Inc. All rights reserved.
Oil Price = $90 / bbl
![Page 30: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/30.jpg)
30© 2007 Electric Power Research Institute, Inc. All rights reserved.
Flow of Money for Cap and Trade System
Green Power Plant Non-compliant Power Plant
Exchange
$
Allowance Certificates
$
Electricity ConsumersElectricity
$$
Electricity
Green Power Plant Non-compliant Power Plant
Exchange
$
Allowance Certificates
$
Electricity ConsumersElectricity
$$
Electricity
![Page 31: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/31.jpg)
31© 2007 Electric Power Research Institute, Inc. All rights reserved.
Flow of Money with CO2 Public Benefits Fund
Green Power Plant Non-compliant Power Plant
Trustee ofCO2 Charge
0 or Low $ High $
Electricity ConsumersElectricity
$$
Accountable to International Agreements
Electricity
Rebate incentives and Electricity subsidies
Green Power Plant Non-compliant Power Plant
Trustee ofCO2 Charge
0 or Low $ High $
Electricity ConsumersElectricity
$$
Accountable to International Agreements
Electricity
Rebate incentives and Electricity subsidies
![Page 32: Holistic Planning (For the Good of the Whole)](https://reader033.vdocuments.net/reader033/viewer/2022060107/554acce4b4c90524738b5331/html5/thumbnails/32.jpg)
32© 2007 Electric Power Research Institute, Inc. All rights reserved.
Costs and Benefits Distribution
• Economics should be based on costs and not on prices• Rational decisions by non-public entities are based on
financial incentives (selfish) + other factors of persuasion• If costs and benefits are not distributed equitably, rational
decisions may not be compatible with optimal resource allocation for the Good of the Whole