Integration of Variable GenerationIntegration of Variable Generation Task Force (IVGTF) & Emerging IssuesTask Force (IVGTF) & Emerging Issues

Mark LaubyMark LaubyManager, Reliability AssessmentsManager, Reliability Assessmentsmark.lauby@nerc.netmark.lauby@nerc.net

About NERCAbout NERC

The electric industry’s “self-regulatory organization” for reliability

• Balances the interests of all stakeholders

• Represents industry consensus

• Independently acts in the best interest of reliability

• International “charter” lending government support and oversight to SRO activities, ensuring that the best interests of society-at-large are represented Federally recognized “Electric Reliability Organization” in the

U.S.

Agreements in place with several Canadian provinces and developing these agreements in others

About NERC: MissionAbout NERC: Mission

Develop & enforce reliability standards

Assess current and future reliability

Analyze system events & recommend improved practices

Encourage active participation by all stakeholders

Pursue mandatory standards in all areas of the interconnection

To ensure the reliability of the North American bulk power system

2007 LTRA Report2007 LTRA Report

Operational challenges must be resolved

Transmission needed to support renewable development

• “Clean Energy Superhighway”

NERC to monitor federal carbon legislation for impact on reliability

Integration of Wind & Solar Resources Require Special Considerations in Planning, Design, & Operation

NERC’s ActionsNERC’s Actions

Evaluate operational requirements

Recommend standards.

Develop a consistent approach for rating variable resources

• Available capacity at time of system peak

Developed Integration of Variable Generation Task Force

Engaging Industry ExpertsEngaging Industry Experts

Integration must support a reliable bulk power system

Variable Resources affect planning/operations

Reviewed by the Operating & Planning Committees in December 2007

Integration of Variable Generation Task Force

The Task Force will prepare • A concepts document that includes the philosophical and

technical considerations for integrating variable resources

• Specific recommendations for practices and requirements, including reliability standards, that cover the planning, operations planning, and real-time operating timeframes.

The document will include:• Planning timeframe issues, such as contribution to reserve

margins and modeling requirements to test system reliability,

• Operational Planning and Real-time operating timeframe issues, including Interconnection frequency, and primary and secondary generation control

• Review NERC Standards for any gaps

• Conclusions and recommendations.

IVGTF ScopeIVGTF Scope

Bulk power system reliability must be maintained, regardless of the generation mix

All generation must contribute to overall bulk power system reliability

Standards and criteria established must be fair, transparent and performance-based

Planners and operators must understand the challenges presented by large scale integration of variable generation

Wind and other variable generation must effectively integrate into planning and operations practices to ensure reliability

New Planning/operating tool requirements will be described in terms of bulk power system reliability performance

IVGTF Guiding PrinciplesIVGTF Guiding Principles

Characteristics of Variable Generation

Planning and Technical Impacts

System Operations

Other and Future Considerations

NERC Standard Review

Conclusions & Recommendations

Glossary

IVGTF Outline of White PaperIVGTF Outline of White Paper

High Industry Interest

• 50 Nominations received

Liaisons being built with Industry Groups

• American Wind Energy Association (AWEA)

• Canadian Wind Energy Association (CanWEA)

• Utility Wind Integration Group (UWIG)

• Solar Energy Industries Association (SEIA)

• IEEE-PES

• EPRI

• U.S. Department of Energy

• Union for the Co-ordination of Transmission of Electricity (UCTE)

IVGTF StatusIVGTF Status

IVGTF Status: Work PlanIVGTF Status: Work Plan

Item Goal Lead 2008 Milestones

Conf. Call Review Report outline & assignments Lauby February

OC/PC Status Report Frost & Lauby March

Meeting Review assignments first drafts Task Force March

Meeting Review Second drafts Task Force May

OC/PC Status Report & preliminary findings Frost & Lauby June

Meeting Review Final Draft Report Lauby August

OC/PC Present Final Draft Report Capacity Method

RecommendationsFrost & Lauby September

MeetingReview OC/PC Comments & develop

Final ReportTask Force August

OC/PCPresent Final Report and

recommendationsFrost & Lauby December

Meeting/Workshop

Open Meeting to Present results Task Force January, 2009

Emerging Issues & ScenariosEmerging Issues & Scenarios

Collaborative Effort with NERC Staff

“Packaging”• Condense focus to no more than five “key” emerging issues

• Broader issues do not change year to year –create separate document

Divide Key Findings section into:

• Key Findings – from Regional Assessments

• Emerging Issues – from the industry

Specific Emerging Issues identified

“Progress from 2007 Report” section

2008 Key Findings & Emerging Issues2008 Key Findings & Emerging Issues

Risk Assessment of Emerging IssuesRisk Assessment of Emerging Issues

Emerging Issues is critical driver for:

• Assessment concentration

• Scenario analysis

Industry experts to identify Emerging Issues for prioritization

Ranking based on combination of likelihood & severity (consequences)

To manage expectations and speculation by regulators & legislators about how utilities should respond to these issues

To inform the policy debate

7 Issues Identified by NERC Staff & RAS, prioritized:

1. Greenhouse gas reductions

2. Fuel storage & transportation3. Rising global demand for energy & equipment, increased off-shore

manufacturing of raw & finished materials

4. Increasing adoption of demand-side & distributed generation resources

5. Replacing and upgrading transmission infrastructure for the 21st century

6. Water usage

7. Mercury emissions

RAS will expand on a number of these in the 2008 LTRA

2008 LTRA Emerging Issues2008 LTRA Emerging Issues

Priority

Candidate ScenariosCandidate Scenarios

Should have significant impact on the reliability of the bulk power system

Must be a future condition providing enough lead-time for assessment to inform a solution

Selected with consideration for the definition of Adequate Level of Reliability

Will be ranked by NERC PC based on likelihood & severity

Emerging Issues & ScenariosEmerging Issues & Scenarios

LTRA PublishedNERC Staff

PC assigns RIS, RAS & TIS to develop list of

emerging issues

PC agrees to scenarios for the following year, based on risk

assessment of emerging issues.

Regions develop Scenario Study Outline

RAS assigns scenarios. Sends with LTRA Data Request.

Regions perform Scenario Reliability Assessment

RAS Peer Review Scenario

Year 1 Year 2

Scenario study outline peer reviewed by RAS & PC

Scenario #1: Study renewable integration in 2009. If there is little or no impact of Scenario #1 on a region, then the Region must perform Scenario #2

Scenario #2: A scenario picked by the Region for study in 2009

Details of scenarios would be proposed by Regions, coordinated with RAS, and approved by the PC at June 2008 meeting

2008 Emerging Issues & Scenario 2008 Emerging Issues & Scenario AnalysisAnalysis

Thank YouThank You