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Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday, March 23, 2009 Metropolitan Centre, Calgary

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Page 1: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

Reliable Power

Reliable Markets

Reliable People

Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session

Monday, March 23, 2009

Metropolitan Centre, Calgary

Page 2: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

2

Agenda

• Welcome and Purpose of Session

• Role of the AESO

• Challenges with Large Scale Wind Integration

• MOF Background

• Recommendation Paper WP Forecasting

WP Management

Supply Surplus

• Implementation and Key Initiatives Transmission Update

• Summary and Next Steps

Page 3: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

3

Purpose of today’s session

• Provide stakeholders an opportunity to ask questions, clarify information in order to submit formal comments to MOF Implementation Recommendation Paper by April 3 deadline

• Review key recommendations in MOF Implementation Paper

WP Forecasting

WP Management

Supply Surplus

• Provide a brief update on key initiatives related to wind integration

• Review next steps in process

Page 4: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

4

Stakeholder consultation principles

• The AESO’s consultation process offers all stakeholders an opportunity for meaningful input

• All stakeholders have the right to comment on the AESO's plans, decisions and actions

• The experience and expertise offered by stakeholders through the consultation process improves the quality and implementation of decisions

• The AESO's consultation process and rationale for decisions are transparent

• All stakeholders have the right to be informed of the AESO’s direction, plans, the status of issues, and decisions in a timely manner

• The AESO measures the effectiveness of its consultation process in order to improve future performance

Page 5: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

5

Alberta’s electric industry

• 9,806 MW peak and 80% LF

• 12,159 MW total generation

• Over 280 generating units

• Wholesale market with about 200 market participants

• > 21,000 km of transmission

• Interties BC (up to 780 MW) & Sask. (up to 150 MW)

BC

AltaSask

5,893 MW

4,686MW(Other renewables)

214 MW

(Wind)

497 MW

869 MW

Over 12,000 MW of Wind Power Interest

Page 6: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

6

AESO - Our core business

• Markets: develop and operate Alberta’s real-time wholesale energy market to facilitate fair, efficient and open competition

• Transmission System Development: plan and develop the transmission system to ensure continued reliability and facilitate the competitive market and investment in new supply

• Transmission System Access: provide system access for both generation and load customers

• System Operations: direct the reliable operation of Alberta’s power grid

Page 7: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

7

Grid and Market Operations – Key functions

• Operate the AIES in a secure and reliable state Forecast and anticipate future operations (1-24 hours) Manage and monitor AIES (flows/volts) – within limits and standards Manage and dispatch transmission must run requirements Manage congestion on the system Manage interchange/transfers on interconnections Coordinate TFO operation & coordinate maintenance (GFO and TFO) Integrate new transmission facilities to interconnect generation and load Manage and direct power system restoration and emergency operations Conduct short term adequacy assessments

• Operate the Alberta market according to AESO Rules and FEOC Use merit orders to meet the supply/demand balance and ancillary services

requirements Comply with Rules for reliability and system performance (spinning and operating

reserves) Consider constraints and characteristics of individual units Ensure fair, efficient and openly competitive operation of the electricity markets

Page 8: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

8

Operational and market uncertainty

• Load varies by seconds, minutes, hours, by day type, and with weather Operators are experienced and familiar with load patterns and it can be forecasted

within reasonable accuracy (within few percent)

• Dispatchable generation can vary - typically within 1% of dispatch order Some uncertainty with conventional supply but high capacity factors, outages are

coordinated and availability is known Supply resources may not be available or limited in capacity due to outages or de-

rates

• Pool price affects supply and demand (price sensitive load)

• Significant integration of wind generation can alter familiar operational “patterns”

Semi-dispatchable resource (only when there is fuel) More challenging to forecast (may be out by several hours and 100% magnitude) Capacity factors vary by weather, season and time of day

• Operational plans are based on best available forecasts of needs and available resources

There is always error and uncertainty in our business - we are good at managing it!

Page 9: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

9

Challenges to integrating large scale wind

• Supply-demand balancing is more challenging with wind power – wind can be unpredictable, increase or decrease rapidly and patterns can be correlated or counter to load

• Limits to how much wind a system can accommodate – need access to flexible resources considering physical limits (ramping and start up times)

• Reliability issues > 900 MW – need mitigating measures, resources and the scale/costs can escalate

• Market Impacts – can increase variability and uncertainty

• Need Transmission – upgrades in southern part of the province and recognizing diversity

Supply Demand

Alberta System Demand and Wind Power Correlated Well Nov 6 2006

7000

7500

8000

8500

9000

Time - 1 Hr per Division

Sy

ste

m D

em

an

d M

W0

80

160

240

320

Sy

ste

m W

ind

Po

we

r

MW

Alberta System Demand and Wind Power Do Not Correlate Well Jan 6, 2006

7000

7500

8000

8500

9000

Time - 1 Hr per Division

Sy

ste

m D

em

an

d M

W

0

80

160

240

320

Sy

ste

m W

ind

Po

we

r

MW

Page 10: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

10

Need dispatchable resources to accommodate wind

Baseload Generation

$0 Offers

Ma

rke

t C

ap

ab

ilit

y

Ab

ov

e B

as

elo

ad

Amount of dispatchable generation varies according to

market conditions

Page 11: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

11

Wind power diversity and ramps

In Alberta there are times when there is diversity amongst wind power facilities

There are times when there is little to no diversity amongst wind power facilities

Page 12: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

12

Correlation between pool price and wind power

• Wind generation offers into the market at zero dollars

• Pool price tends to be lower when there is a significant amount of wind generation

• Three factors influencing wind project development

1. Pool price

2. Federal incentives

3. Environmental attributes

Wind vs. Pool PriceAverage Pool Price for Varying Amounts of Wind

$83.78

$61.85$56.78

$45.19 $44.43

Annual Average Pool Price: $66.95

0

10

20

30

40

50

60

70

80

90

100

0MW to 100MW 100MW to 200MW 200MW to 300MW 300MW to 400MW 400MW to 500MW

Range of Hourly Wind Generation

Av

era

ge

Po

ol P

ric

e (

$/M

Wh

)

2007 Data

Page 13: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

13

Wind power capacity factors

• Over 1,400 GWh of electric energy and annual capacity factor of about 35 % in 2007

• Capacity factors of wind power exceed 50 % during some

periods or minimal capacity on some

days (summer and winter peaks) due to prevailing weather conditions

• AESO and Market participants: Must become familiar with

characteristics and Factor it into day-day

operating practices, decision making processes and offer strategies

0%

10%

20%

30%

40%

50%

60%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ca

pa

cit

y f

ac

tor

Capacity factor by month*Annual average Capacity factor

Alberta wind power generated 1431 GWh of electricity energy in 2007

0%

10%

20%

30%

40%

50%

60%

20% 30% 40% 50% 60% 70% 80% 90% 100%

Total Wind Generation Output

Perce

ntage

of T

ime a

t a G

iven O

utput

Leve

l Spain Wind Power Distribution(2001 – 2005)

Page 14: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

14

AESO’s wind integration journey

2003 2004 2005 2006 2007

Study 1200 MW of Wind

Power

New Standard

specific for Wind Power

Facilities

Phase 1 Study

Study up to 2000 MW

Confirms need for Mitigating

MeasuresPH II Study

and Temporary Threshold

Confirm effectiveness of Mitigating Measures

Market and Operational Framework

(MOF) introduced

AESO-CANWEA

collaboration

Initiate Wind Power

Forecasting Pilot

2008

Workgroups on Supply

Surplus and Wind Power Management

Finalize Forecasting

Pilot

2009

Implement MOF Recommendations

Workgroup findings incorporated into

paper

CanWEA Award

UWIG Award

Page 15: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

15

The AESO’s commitment

“Our ultimate objective… is to refocus the dialogue with industry to integrate as much wind into the Alberta system as feasible without compromising system reliability or the fair, efficient, and openly competitive operation of the market.”

Page 16: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

16

How to add more wind?

• To integrate more wind the operator needs to “know what to do” and “have the necessary resources/tools”

• Current resources/tools

The energy merit order

Regulating reserves

• New resources/tools

Wind power forecasting

Additional regulating reserves

Supply / load following service, (i.e. the service would accommodate pumped storage, batteries, others)

Power and/or ramp-rate limiting of wind power facilities

Page 17: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

17

Challenges and solutions

CHALLENGES MOF SOLUTIONS

Flexible Resources for wind power

EMO, AS, load products and Load-Supply following

Wind variability, supplysurplus, ramping events

Predictability of wind powerWind power forecastingrules and requirements

Wind power management, forecasting & Supply Surplus Protocol

Transmission development Transmission plans, NID’s and forecasts of wind projects

Wind interconnection projects Queue management

Cost AllocationLoad

Transmission & Ancillary Services

Wind Facility OwnersForecasting and Power management

Page 18: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

18

Wind Generation Planned in 2009/2010

0

500

1000

1500

2000

Q1

-20

09

Q2

-20

09

Q3

-20

09

Q4

-20

09

Q1

-20

10

Q2

-20

10

Q3

-20

10

Q4

-20

10

Timeline

Win

d M

W C

ap

ac

ity

High Probability Wind MW Med Probability Wind MW Low Probability Wind MW

Wind power development (2009-2010)

Additional RegulatingReserves

Wind Power Forecasting, Wind Power Management

Supply Surplus, DDST

Page 19: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

19

MOF Recommendation Paper

• Next major step in the implementation of the Market and Operational Framework (MOF)

Represents the culmination of valuable work done through industry work groups.

Provides an overview of the MOF

Describes current system resources and mechanisms used to manage variability and ramps (load and supply) on the power system and challenges with large scale integration

• Provides a set of recommendations regarding enhancements to rules, practices and procedures and requirements needed to implement the MOF:

Wind power forecasting requirements

Wind power curtailment protocol

Supply surplus protocol

Page 20: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

Reliable Power

Reliable Markets

Reliable People

Wind Power Forecasting

John Kehler

Page 21: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

21

Wind Forecasting is a Foundation

• To integrate more wind the operator needs to “know what to do” and “have the necessary resources/tools” over all timeframes

• An wind power forecast (including uncertainty) enhances AESO ability to maintain system reliability

• In order to maintain reliability we must learn how to deal with

Forecast errors: timing and magnitude

Forecast uncertainty

• Forecasting enables the efficient use of resources

Time (hour of day)0 4 8 12 16 20 24

Sys

tem

Lo

ad

(M

W)

seconds to minutes

Regulation

tens of minutes to hours

Load Following

day

Scheduling

Page 22: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

22

Forecasting

• The biggest challenge to forecasting is to predict when ramping starts and ends

• The benefit, if done well, will allow us to make efficient use of resources to manage the ramps

0

50

100

150

200

250

300

350

Sep06 1

2:0

0

Sep06 1

4:2

4

Sep06 1

6:4

8

Sep06 1

9:1

2

Sep06 2

1:3

6

Sep07 0

0:0

0

Sep07 0

2:2

4

1-min MW

fcst 1

fcst 2

fcst 3

2 hour ahead forecast

Page 23: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

23

Ramp Statistics

• In the pilot project the AESO applied a 20% per hour wind capacity criteria to define a wind power ramping event

Pilot Project Results - 234 ramp up/down events

• This metric is not a concern at 545 MW of wind generation

• At higher levels of wind penetration (i.e. 2000 MW +) an event where 20 % of installed wind capacity/hour is ramping will become a significant event depending on when it occurs

A 400 MW/hour in opposition to a typical load ramp will be a significant event

Page 24: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

24

Wind forecasting

• Pilot project 3 vendors – ‘AWS Truewind (USA)’,

‘WEPROG (Denmark)’ and ‘energy and meteo (Germany)’– contracted to study wind characteristics and develop methodologies that work for Alberta:

– Ramping – how to detect large ramps

– Uncertainty – how to determine level of uncertainty in forecast

– Facility Owner – define requirements for wind power facility operators

– Regulating Reserves – how to use forecasts to support AS procurement

– Information to Industry – how to provide forecasts to market participants

Plan to have wind power forecasting operational by December 2009

Forecasts Delivered at 12 AM Apr 14

0

50

100

150

200

250

300

350

400

450

500

Apr1400:00

Apr1404:00

Apr1408:00

Apr1412:00

Apr1416:00

Apr1420:00

Apr1500:00

Apr1504:00

Apr1508:00

Apr1512:00

Apr1516:00

Apr1520:00

Aggr

egat

e of

Exi

stin

g Fa

cilit

ies

(MW

)

Actual Wind fcst 1 fcst 2 fcst 3

Page 25: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

25

What we learned from the pilot Learning = Opportunity

• Alberta difficult to forecast wind with the forecast errors higher than other jurisdictions

Mountains plus Pacific Ocean to west add complexity and limit upwind data density

Complex weather: Chinooks

• Forecasts need to be tuned for system operator needs

Ramping events – some significant ramp events missed. Of missed events, the down ramps were the most challenging

Page 26: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

26

Wind power forecasting recommendations

Recommendation 1

• Centralized forecasting approach

Recommendation 2

• RFP forecasting service provider should proceed as soon as practicable

Recommendation 3

• Commence consultation on rules, procedures, standards and technical requirements regarding submission of wind generator forecast data/information including

data requirement such as turbine availability and on-site meteorological data as described above,

communication protocols, and

data quality required from wind generation facilities (or individual forecasters) to deliver forecasts to the AESO

Page 27: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

27

Wind power forecasting recommendations (cont)

Recommendation 4

• Determine the capability, resources, systems and time required to perform the data management function.

In parallel, the AESO will include data management as an optional requirement in the wind forecasting RFP

Recommendation 5

• Monitor forecasting, market and operational results and develop measures of forecasting accuracy.

The AESO intends to leverage available data and forecasting resources toward this end

Recommendation 6

• Aggregate wind forecasts should be transparent and made available to all market participants, particularly near term to real time.

Page 28: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

28

Recommendation for centralized forecasting

WPF WPF

WPFWPF

WPF

AESO

Wind Power ForecastService Provider

Meteorological data, MW output

and turbine availability from

each WPF

Data from Numerical Weather Prediction models

(i.e. from Environment

Canada)

Wind Power Forecast data and information to the

AESO

Centralized meaning “one wind power forecasting service provider for all WPFs”

Page 29: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

29

WPF forecast data and information

Current MW

Wind Speed

Wind Direction

Barometric Pressure

Wind Power Facility

AESOMet Tower

Temperature

Wind Power Forecaster

MW forecast(s)

Wind Speed

Wind Direction

Pressure

Temp

Me

t D

ata

CurrentTurbine

AvailabilityFuture

TurbineAvailability

Wind Speed

Barometric Pressure

Temperature

Wind Direction

Options discussed for WPF data are:

1) WPF data to Third Party then to Forecaster then to AESO

2) WPF data to AESO then to Forecaster

3) WPF data to Forecaster then to AESO

Preferred options are 2) and 3)

Power Curve for each WPF

Page 30: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

30

Possible cost and allocation to WPF owners

• Based on cost experience during the wind power forecasting pilot project, provision of a forecasting services and data management could be less than $500k annually.

Costs borne at a WPF for met towers, data loggers and communication are not considered in this cost.

With 1000 MW of wind power this would be less than $0.20 per MWh of wind power generators

Page 31: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

Reliable Power

Reliable Markets

Reliable People

Wind Power Management

John Kehler

Page 32: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

32

The operational issues

• There may be times that the system cannot absorb all the wind generation

• The AESO would first consider the forecast demand, the wind power conditions, forecast wind power and what is available in the energy market for dispatch before resorting to wind power management

To help the system controllers recognize and manage these situations, the AESO is developing a Dispatch Decision Support Tool

• The following conditions could trigger the use of wind power management: Forecast loss of wind and insufficient ancillary services or ramping services

Supply surplus conditions

Insufficient ancillary services

Unforeseen (i.e. not forecasted) wind conditions

Disturbance and emergency conditions

• During over frequency conditions wind power facilities will need to participate in frequency control

Page 33: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

33

Wind power managementSystem Operation

There may be times when wind power is forecast to ramp down and dispatching EMMO up may require pre-curtailment of wind generation to ensure supply-demand balance

There may be times when wind power is forecast or is ramping up and limiting wind generation may be required until such time the EMMO can catch up

Page 34: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

34

The operational issue

7am Forecasts on [2007/09/05] for Next Day

0

50

100

150

200

250

300

350

400

450

500

Sep05 19:12

Sep06 00:00

Sep06 04:48

Sep06 09:36

Sep06 14:24

Sep06 19:12

Sep07 00:00

Sep07 04:48

Pre-7AM F1

Pre-7AM F2

Pre-7AM F3

Actual Wind

0

50

100

150

200

250

300

350

Sep06 12:00

Sep06 14:24

Sep06 16:48

Sep06 19:12

Sep06 21:36

Sep07 00:00

Sep07 02:24

1-min MW

fcst 1

fcst 2

fcst 3

Day ahead forecasts miss the event

2 hour ahead forecast miss the event

System Operator would determine how much wind MW the system can accommodate.

Then issue a power limit

Actual MW

Forecast MW

Unforeseen Wind Power Event

Page 35: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

35

WPM recommendations

• Pro-rata allocation of system wide wind curtailments;

• Use of Potential MW Capability to allocate wind power curtailments; and,

• Curtailments should be re-assessed and re-allocated:

– every 20 minutes if the limit for any one WPF has changed by greater than 5 MW

Page 36: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

36

Description of potential MW capability

Measured windspeed and

directionLocal computer

calculatesPotential MW

from the turbine

WPF SCADASystem collectsand sums thePotential MW

from all turbinesat the WPF

Utility SCADAsystem sends

data to theAESO

Page 37: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

37

Illustrative Example of WPM

Start of System Wind Limit event

WPF limits based on current wind power conditions at the time limit is issued

WPF limits re-allocated as Potential MW Capability changes

Potential MW Capability Wind Power generated

End of System Wind Limit event

Page 38: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

Reliable Power

Reliable Markets

Reliable People

Supply and Surplus

Anita Lee, P. Eng.

Manager, Operating Policies and Procedures

Page 39: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

39

Supply and surplus

• Wind generators and co-generation are currently exempt from OPP 103 (Dispatching Multiple $0 Offers) for managing supply surplus conditions

• The MOF clearly indicated that, with higher levels of wind generation, the existing supply surplus management protocol needed to be reviewed

Page 40: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

40

Supply and surplus

• WG recommendation: Market be first given an opportunity to take voluntary actions when $0 SMP is anticipated or is occurring

• Required changes: Provide market indication of potential supply surplus conditions,

similar to Short Term Adequacy (STA) assessments for supply shortfall

Page 41: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

41

Supply and surplus

• WG recommendation: all supply facilities should participate in reducing MW generation during supply surplus conditions subject to a new “Minimum Operating Level (MOL)”

• Required changes: Define MOL as:

A physical, not an economic constraint, and is

The lowest generation level for a generator as limited by the following requirements: legal/regulatory, environmental, health and safety, equipment reliability, operating level required to serve dispatched ancillary services, or operating level required to prevent damages to third party equipment

Page 42: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

42

Supply and surplus

• Required changes (cont’): Define a mechanism/process for pool participants to declare and

submit the MOL

Revise the "inflexible block" current definition to permit partial dispatch of a $0 inflexible offer

Wind generators: MOL = 0 MW and is flexible

Page 43: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

43

Supply and surplus

WG recommendation: $0 SMP Management Protocol

1. Curtail import transactions

2. Considering transmission system operating and reliability constraints (area TMR requirements, etc), apply the following, if effective*:

• Curtail flexible $0 blocks, by pro-rata**

• Curtail one or more inflexible $0 blocks to the asset’s MOL***

3. Curtail one or more assets to 0 MW (go off line), considering the asset’s minimum off time

Page 44: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

44

Supply and surplus

*Consideration for “effectiveness”: If curtailment allocation by pro-rata results in small volumes of

curtailment to a large number of generating assets, it may not be effective.

This issue will be explored in the development of the related OPP.

Page 45: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

45

Supply and surplus

**Consideration for “fairness”: Flexible blocks and inflexible blocks should be used in the protocol

in a fair manner (i.e. one type should not be treated preferentially than the other)

Page 46: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

46

Supply and surplus

***Consideration for impact to a co-gen’s DTS contract: If the generation at a co-gen facility is curtailed (e.g. to its MOL),

the co-gen facility may have to import more supply from the AIES causing ratcheting of its contracted DTS level

This requires further evaluation and if there are inappropriate consequences, the AESO may consider amendments to the AESO tariff

Page 47: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

Reliable Power

Reliable Markets

Reliable People

Technical Requirements/Standards

John Kehler

Page 48: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

48

Technical requirement standards

• Interconnection Standards In Nov 2004, AESO developed and

implemented an interconnection standard specific for wind power facilities

Standard includes voltage ride through (low and high voltage), static and dynamic reactive power and voltage regulation

Standards will be updated to include:

– Wind Power Management (ramp rate limiting, power limiting and over frequency governing)

– SCADA and Communication requirements for Wind Power Management

– Requirements for Wind Power Forecasting

Page 49: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

49

Over frequency control

• Over frequency conditions can occur in Alberta when; Our interconnections trip during a heavy export

Disturbances within WECC

• Arresting the over frequency condition requires governor control systems on the generator units

• To ensure that wind power facilities contribute to arresting an over frequency condition, a virtual governor (over frequency control) is to be added to the wind power facilities.

• Significant over frequency conditions (greater than 60.1 Hz) can occur a couple times per year

• This requirement was identified in the 2004 standard

Page 50: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

50

Illustration of Over Frequency Control

Time

Win

d P

ower

MW

Unconstrained Wind MW

Wind MW with Supplemental OverFrequencyOver Frequency Excursion

Illustrative Over Frequency Event

Over frequency control

• Reduce the MW output to ‘over frequency’ conditions

Page 51: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

51

Over frequency control

• System frequency can momentarily go above 60.036 Hz 2008 data suggests

– 5% probability between 60.036 Hz and 60.1 Hz

– 0.01% above 60.1 Hz

Based on the proposed droop characteristic for WPFs this would have been less than 0.02% production in 2008.

Page 52: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

Reliable Power

Reliable Markets

Reliable People

System Operator Tools

John Kehler

Page 53: Reliable Power Reliable Markets Reliable People Implementation of Market & Operational Framework for Wind Integration Stakeholder Information Session Monday,

53

Supply-demand balancing inputWhat is changing?

How good is the load forecast today?

How good is the load forecast today?

What is the wind power forecast? What is the ramp rate?

What is the wind power forecast? What is the ramp rate?

What are the Interconnection schedules?

What are the Interconnection schedules?

What is the load forecast change? What is the ramp rate?

What is the load forecast change? What is the ramp rate?

How good is the wind power forecast today?

How good is the wind power forecast today?

Net ChangeRamp rate requirement

Is the merit order changing?

Is the merit order changing?

What generators are still ramping from the last dispatch? How much energy is still to come?

What generators are still ramping from the last dispatch? How much energy is still to come?

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Supply-demand balancingDispatch decision

What are the Regulating Reserve units doing?

What are the Regulating Reserve units doing?

What is the ramp rate capability in the merit order over the next 10, 20, 30 minutes?

What is the ramp rate capability in the merit order over the next 10, 20, 30 minutes?

How much capacity to dispatch to get the required ramp

rate?

How much capacity to dispatch to get the required ramp

rate?

Do I need to dispatch more ancillary services?

Do I need to dispatch more ancillary services? Will I need to

activate any Wind Power Management procedures?

Will I need to activate any Wind Power Management procedures?

Dispatch Decision

Will I need to activate Supply Surplus / Shortfall procedures?

Will I need to activate Supply Surplus / Shortfall procedures?

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55

Repeat when necessary

What are the Regulating Reserve units doing?

What are the Regulating Reserve units doing?

What is the ramp rate capability in the merit order over the next 10, 20, 30 minutes?

What is the ramp rate capability in the merit order over the next 10, 20, 30 minutes?

How much capacity to dispatch to get the required ramp

rate?

How much capacity to dispatch to get the required ramp

rate?

Do I need to dispatch more ancillary services?

Do I need to dispatch more ancillary services? Will I need to

activate any WPM procedures?

Will I need to activate any WPM procedures?

Dispatch Decision

Will I need to activate Supply Surplus / Shortfall procedures?

Will I need to activate Supply Surplus / Shortfall procedures?

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56

System operator tools

• Dispatch Decision Support Tool (NEW) Provide visibility of capacity and ramping

capability of the energy market Incorporate wind power forecasting Provide hourly and 6 hour outlook on market

conditions (including wind) Prototyping/testing with operators

• Wind Power Forecasting Tool (NEW) Incorporate requirements from the wind power

forecasting pilot project

• Wind Power Management Tool (NEW) Automate the wind power management protocol

and procedures (limits or ramp rate limiting)

• Supply Surplus Tool (update existing tools) Automate the supply surplus protocol and

procedures

• Short Term Adequacy Tool (update existing tools)

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57

Functionality of DDST

Resources• Energy Market Merit Order

• Generator ramping characteristics

• Regulating reserve merit order

• Load Supply Following (future)

• Wind Power Management (new)

What Is Going to Change

System Change• Load forecast

• Actual and forecast Interchange Schedules

•3 Modes for Wind power forecast

•Input External Wind Power Forecast

•Persistence Forecast

•Persistence Ramp Forecast

System Considerations• ATC Limits

• Uncertainty Analysis

Where We Are At

System Status• What supply has been dispatched

• What is the Actual generator output

Heart of DDSTProvide 1 hr forecast of supply

demand balance and a6 hr outlook

What If?

System Control can toggle up and down

the merit order to see the impact of the dispatch on the

forecast imbalance

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Reliable Power

Reliable Markets

Reliable People

Update on Key Initiatives and Next Steps

Warren Frost, P. Eng.

Vice President, Operations & Reliability

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59

Transmission is a key enabler

• Transmission and intertie capacity are critical enablers for the development of wind generation resources in order to

Interconnect variable energy resources located in remote regions of the province

Deliver ramping and ancillary services from inside and outside Alberta to balance supply and demand

Exchange any surplus energy with other jurisdictions.

• Direction is consistent with the PES (announced in December 2008), which sets the context for comprehensive upgrades to the transmission system

Develop transmission to areas of renewable and low-emission energy

Ddevelop additional interties to ensure access to adequate electricity supply and to provide great export opportunities for producers

• AESO has advanced plans for the south region of the province to accommodate the large scale development of wind generation

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60

Wind capacity and generation scenarios

1000

1500

500

2008 2009 2010 2011 2012 2013 2014 2015 2016

2000

2500

3000

3500

4000

2017

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61

Transmission development to interconnect wind generation

SW Facilities Application• AUC approved AltaLink’s application March 10• 240 kV Pincher Creek to Lethbridge• Interconnect 1000 MW of wind

South NID• AUC filed Notice of Hearing March 9• 240 kV loop to interconnect up to 2,700 MW of

wind over next 10 years

East Central Alberta (Hanna area) • Consultation on need underway (10 Open

Houses recently completed)• Interconnect 1,400 MW of wind

•Interconnection Queue Management• Strong interest in wind development – over

12,000 MW in the queue• Queue Management Business Practice and

associated project milestones ensure that projects are progressing

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62

Summary and next steps

• Recommendation Paper & Comment Matrix posted to AESO website – March 5

• Stakeholder Consultation Session – March 23

• Deadline for stakeholder comments on the paper – April 3

• AESO publishes stakeholder comments received to website – April 17

• Final Recommendation Paper posted to AESO website (includes stakeholder comments & AESO responses) – Q2 2009

• First Phase of System Operator Tools Operational – Q2 2009

• Wind Power Forecasting RFP Issued – 2Q 2009

• Consultation on proposed ISO and OPP Rule changes indicated in the Final Recommendation Paper  Forecasting Obligations Wind Power Management Supply Surplus Protocol

• File with AUC, rules, operating policies and procedures that govern the integration of wind integration including wind power management, forecasting obligations, and supply surplus conditions – Fall 2009

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Process

Comments on

Recommendation paper

Post comments

Post final recommendations

Develop Draft rule/OPPs

Post Draft rule/OPPsfor review

Post comments

Post final rule/OPPs

Approve and file with AUC

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Next steps

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Summary

• 543 MW on AIES without operational issues or increase in AS There has been no requirement to increase Regulating Reserves volumes System performance is good (CPS2 at 98% and no OTC violations) This is consistent with our study results from 2005

• Gaining experience (ISO and industry) and learning from events Collaborative relationship with CanWEA has been invaluable Weekly wind reports published and continuous learning NERC IVGTF Continued collaboration with UWIG

• We must be prepared for the large scale integration of wind

• This is the next major step in the implementation of the Market and Operational Framework (MOF)

Need your input on the recommendations regarding enhancements to rules, practices and procedures and requirements needed to implement the MOF:

– Wind power forecasting requirements

– Wind power curtailment protocol

– Supply surplus protocol

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Questions