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Introducing WATT Working for Advanced Transmission Technologies November 7, 2017

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Page 1: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

Introducing WATT

Working for Advanced Transmission Technologies

November 7, 2017

Page 2: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

High Congestion

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Co

st o

f Co

ng

esti

on

($

M)

CAISO ERCOT ISO-NE MISO NYISO PJM SPP

Data Sources: Multiple sources. Go to www.advancedtransmission.org for more information

© 2017 WATT Coalition2

Page 3: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

0%10%20%30%40%50%60%70%80%90%

100%

52 30 66 19 36 10 27 48 11 65 18 3 47 8 35 9 42 1 83 31 79 14 20 78 16 17 22 23 29 49 50 51 60 61 75 76

Pa

th U

75 V

alu

e

Path Number

2015 WECC Path U75 DataU75 = the percentage of time the path loading is greater than 75%

33% of these Paths never exceed 75% loading

Low Utilization

Data Source: https://www.wecc.biz/Reliability/2016%20SOTI%20Final.pdf More on the U75 metric can be found here: https://www.wecc.biz/Reliability/2010_WI_TransPath_UtilizationStudy.pdf

© 2017 WATT Coalition3

Page 4: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

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High Congestion & Low Utilization

3 Contributing Factors

1. Plan for peak but load is rarely at peak

2. Security constraints, planning & operating standards leave headroom for reliability and resiliency

3. The system has yet to embrace advanced transmission technologies that deliver more watts

Apparent Paradox Explained

Source: https://hub.globalccsinstitute.com/publications/simulating-value-concentrating-solar-power-thermal-energy-storage-production-cost-model/4-test-system

Advanced transmission technologies can unlock much of this unused capacity and provide reliability and economic benefits today

© 2017 WATT Coalition4

Advanced Transmission Technologies

Page 5: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

Advanced Technologies Change DemandNew Build

Three Types of Transmission Tools

The grid needs all three5 © 2017 WATT Coalition

Page 6: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

WATT

Dynamic Line Rating Advanced Topology ControlAdvanced Power Flow Control

Get more out of the current grid

Members

Working for Advanced Transmission Technologies

© 2017 WATT Coalition6

Page 7: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

WATT• Coalition of advanced transmission technologies that increase the utilization of the

transmission system

• Coordinate our education and outreach

• Advocates for the removal of barriers to increased adoption of advanced transmission technologies

– Education

– Utilities are penalized for innovation

– Transparency in transmission planning process

Members

Get more out of the current grid

Working for Advanced Transmission Technologies

© 2017 WATT Coalition7

Page 8: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

8

Benefits of WATT Technologies

More Transmission Capacity– Up to 2x capacity from real-time measurements (DLR) under low temperature and high wind

conditions – Up to 1.25x capacity from optimized system configuration and flow control settings under

peak demand conditions

Less Congestion– Reduce the $6 billion/year in congestion cost by 1/3, saving consumers $20 billion over ten

years in the US alone

Higher Reliability– Detect instances when the current calculated limits do not comply with reliability standards– Relieve transmission overloads without need to shed load

Improved Renewables Integration– Reduced renewables curtailment (waste)– Adapt the system operation to the changing system conditions (wind, solar)

Economic, Reliability and Clean Energy Benefits

© 2017 WATT Coalition8

Page 9: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

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Barriers to Adoption

Awareness• Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced transmission technologies and their

benefits

No Incentive to Innovation• In most industries, innovation takes risk, extra work and effort, but pays off big. • Not the case for transmission

– Risk is highly discouraged – Reliability is above all else– Utility staff are overworked with little time to dedicate to new initiatives– There is not big payoff for innovation

Are Advanced Transmission Solutions being Considered? • The grid is typically operated in a static and passive way

– Fixed ratings – based on planning calculations– Fixed settings – power flow controls are rarely employed, even when available– Fixed topology/configuration – normal (planning) open/close breaker status are used

• Most planning regions do not require utilities to propose alternative projects• Fewer yet require those alternatives to be publically viewable• Advanced Transmission Technologies tend to not be used in operations, and it is impossible to know if utilities are considering them in

planning

Why are these beneficial technologies not being used

© 2017 WATT Coalition9

Page 10: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

Little Incentive to Innovate

Advanced Transmission Technologies solve problems for a fraction of the costs of tradition transmission investments. This graphic shows how this reduction in capital costs results in a penalty to the utility through decreased revenue.

• The vertical axis is a measure of how much revenue a utility earns on a project.

• The horizontal axis represents the cost of traditional transmission investment cost. P

ost

-Ta

x E

arn

ing

s (P

V $

M)

Traditional Transmission Investment(Upfront Capital Cost $M)

For example, for a $50M traditional investment, a utility earns just under $25M in present value post-tax earnings. For an advanced transmission solutions that is 50% of the capital cost of the tradition solution ($25M), the utility earns just under $12M in post-tax earnings (present value). The utility loses ~$12M in earnings when they choose the advanced technology solution. This is no incentive for innovation; there is a penalty for saving money.

© 2017 WATT Coalition10

Page 11: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

Rarely is advanced transmission considered

0

20

40

60

2013-2014 2014-2015 2015-2016 2016-2017Nu

mb

er o

f P

roje

cts

Proposed Projects from 2013-2016 in anonymous region

Total Projects Proposed

Proposal included an Alternative

Proposal included an Advanced Transmission Technology

More often than not, projects are proposed without any alternatives suggested.

In the past 4 years, of the 102 projects proposed only 3 projects included an Advanced Transmission Technology in the alternative.

© 2017 WATT Coalition11

Page 12: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

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Solutions to Barriers

Awareness

Remove the penalty to utility innovation– Allow utilities to share in the benefits when they

• Use advanced transmission technologies, AND• Create significant savings for consumers

Consider all alternative: wires, non-wires, and advanced technologies– Provide multiple alternatives to each reliability need– Make these alternatives publically available for review and discussion– Provide enough data available to appropriate stakeholders that experts can

suggest additional alternatives such as advanced transmission technologies

© 2017 WATT Coalition12

Page 13: Introducing WATT - WordPress.com · 2017-11-07 · 9 Barriers to Adoption Awareness • Many planners, utility executives, regulators, and stakeholders are unfamiliar with advanced

Working for Advanced Transmission Technologies

For more information contact

Rob Gramlich / [email protected]