status of the western energy imbalance market and regional ... · status of the western energy...
TRANSCRIPT
Status of the western energy imbalance
market and regional initiatives
Presentation to
2016 NWPPA Power Supply Conference
Don Fuller – Director Strategic Alliances
August 1, 2016
Today’s topics
• Renewable portfolio continues to grow
• Energy Imbalance market
• EIM governance
• Regional integration
Page 2
Power industry transformation
Goals:
Higher expectation
of reliability
Higher expectation
of security
Smart Grid
Situational
awareness through
Visualization
Main Drivers:
California RPS
GHG reduction
Once-through-cooled
plants retirement
Wind
• Unpredictable Output
• 4769 MW Peak – April 12, 2014
Solar Thermal / Photo Voltaic
•Semi – Predictable Output
•8030 MW Peak – July 12, 2016
Roof Top Solar
• Semi – Predictable Output
• Behind the meter – Residential
• 3500 MW Estimated Capacity
Slide 3
Hydro vs. solar monthly production --- 2012 through
October 2015
Slide4
0
500
1,000
1,500
2,000
2,500
3,000
3,500
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O
2012 2013 2014 2015
GW
h
Hydro vs. Solar Monthly Production
Hydro Production Solar Production
Original estimate of net-load as more renewables
are integrated into the grid
Typical Spring Day
Net Load 11,663 MW
on May 15, 2016
Actual 3-hour ramp
10,892 MW on
February 1, 2016
Energy imbalance market (EIM) is an easily-scalable
extension of the real-time market to broader region
• Supports integration of
renewables
• Enhances reliability through
improved situational
awareness
• Brings down costs thru access
to a wider array of resources
• Balancing authorities maintain
control and responsibility for
the their system
Page 6
EIM implementation and operation
• Systems needs
– Network modeling EMS system communications
– Outage management
– Metering – simplified rules
– Settlements
• Settlement process
• Intertie bidding
• Implementation challenges
– IT and operations culture
– Training, briefings, BAA operator tools
Page 7
Example of BAA operator screen
slide 8
Benefits from the Energy Imbalance Market are
consistent with earlier analysis and growing
Millions Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016TOTAL
ISO 1.24 1.45 2.46 3.48 5.28 6.35 7.89 28.15
PacifiCorp 4.73 3.81 7.72 8.52 6.17 10.85 10.51 52.31
NV Energy 0.84 1.70 5.20 7.74
Total 5.97 5.26 10.18 12.00 12.29 18.90 23.60 88.20
• Reduced renewable energy economic curtailment displaced
greenhouse gas emitting resources:
• In Q1, reduced 48,342 metric tons of CO2
• In Q2, reduced 67,930 metric tons of CO2
• Reduced flexible ramping requirements across footprint –
35-36% savings during 2016
Page 9
Page 10
Wind/Solar avoided curtailment has significantly increased
due to EIM.
Avoided curtailment
began to increase
significantly after NV
Energy joined the EIM
Nov 2015.
CAISO began tracking
avoided curtailment
since Apr 2015.
EIM Transitional Committee governance proposal
approved and implementation underway
EIM Governing Body seated June 28, 2016
• Carl Linvill, Principal, The Regulatory Assistance Project
• Doug Howe, Consultant, Vanry & Associates
• John Prescott, (Retired) President and Chief Executive Officer,
Pacific Northwest Generating Cooperative
• Kristine Schmidt, President, Swan Consulting Services
• Valerie Fong, (Retired) Director of Utilities, City of Palo Alto
Body of state regulators – to advise EIM Governing Body and ISO
Board on matters of interest, representing 8 states
Regional Issues Forum – public vehicle for discussion of EIM-related
issues, including impacts to neighboring balancing authority areas, next
meeting scheduled for August 4 in Boise, ID
Page 11
Overall benefits to California ratepayers are robust, ranging
from over $700 million/year to $1.7 billion/year by 2030* -
expected to be sustained over the long-term, beyond 2030.
Page 12
Regional market helps to further reduce electricity sector
CO2 emissions for California and WECC-wide in the longer
term – though study shows a very slight increase in 2020
Page
13
CO2 emissions for California load WECC-wide CO2 emissions
Notes:
[1] On the left chart, the higher value reflects the CARB’s GHG accounting for GHG imports. The lower value includes
an adjustment to “credit” California for GHG exports, which is not currently part of the CARB’s accounting.
[2] In 2020 regional case (CAISO+PAC) slight increase in CO2 emissions for California (0.3%) and WECC-wide (0.2%)
Timeline for regional integration activities
SB 350 studiesAssemble team, study
assumptions, seek input,
conduct studies
Policy stakeholder processesDevelop policy for transmission access charge, greenhouse gas compliance, resource adequacy & others, FERC filings
Q4
2015
Q1 Q2 Q3 Q4
2016
Q1 Q2 Q3 Q4
2017 2018
Implementation
Note: Designed to allow PacifiCorp to obtain state regulatory approvals before the end of 2017
Version April 4, 2016
ISO review of additional implementation items
ex. Tariff review of transmission planning process
2019
Go live(Jan)
SB 350 governance modificationsConsultation among states,
development of principles and key
issues, public input, ISO
engagement in processes
PacifiCorp state regulatory proceedings(States include CA, ID, OR, UT, WA, WY)
SB 350 Joint agency workshop; material to Governor’s office; possible legislative action
Page 14
Regional Governance Principles and Process
Page 15
• Process
– Study results and governance proposal presented at July 26 joint
agency workshop hosted by CEC/CPUC/CARB
– New governance structure based on these principles requires
state legislative action, as contemplated by SB350.
• Eight overarching principles for governing a regional ISO, including:
– Preserving state authority over matters currently regulated by
states
– Developing method for selecting board members
– Establishing a Western States Committee with a representative
from each state in the regional footprint
– A transitional committee of stakeholders and state
representatives would be appointed (similar to EIM transitional
committee) to develop details consistent with the principles
