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1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting in Marina Del Rey By Paul F. Arnold Vice President, ColumbiaGrid

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Page 1: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting Integration of Renewable Generation

Presentation to the Market Interface Committee

At the October 30, 2008 Meeting in Marina Del Rey

By

Paul F. ArnoldVice President, ColumbiaGrid

Page 2: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting Integration of Renewable Generation

Background – ColumbiaGrid Efforts on Redispatch

In 2007, ColumbiaGrid under contract with it’s members provided an independent evaluation of BPA’s 2007 Redispatch Pilot Program– Redispatch is much more effective than curtailment to control line

overloading. – Identified need for broader participation, including generators

outside the BPA BA– But low utilization of generators and infrequent opportunity for

redispatch is a problem to incent market participation– Added Load Following to increase generator participation and

solve huge problem with wind integration

Page 3: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting

Integration of Renewable Generation

Background- Developing Intra-hour Load Following

• Intra-hour Load Following can be done using similar redispatch scheduling protocols

• Market participants can bid incs and decs to transfer energy to and from Balancing Areas to create regulating room for intermittent Wind Generation

Page 4: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

Intra-Hour Regulating ReliefIncreasing-Need for Regulating Relief - Simplified Diagram

A

C

B

D

Area B Requires 100 MW Increasing Regulating Reserve

TechnicalPlatform

ColumbiaGrid

Gen/IPP/D provides 50 MW INCGen/BA/C provides 20 MW INC

Gen/IPP/A provides 30 MW INC

30 MW

20 MW

50 MW

20 MW

Bidding-Platform

IPPGenD

IPPGenA

GenC

GENS

BA/PO (transacting party)

ICCP Data Link

BA’s

DataSharing

DataSharing

Intra-hour Block Energy Sell Bids (“INC”)Intra-hour Block Energy Buy Bids (“DEC”)

DataSharing

4

Page 5: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

Intra-Hour Regulating ReliefDecreasing-Need for Regulating Relief - Simplified Diagram

A

C

B

D

Area B requires 100 MW Decreasing Regulating Reserve

TechnicalPlatform

ColumbiaGrid

Gen/IPP/D takes 50 MW DECGen/BA/C takes 20 MW DEC

Gen/IPP/A takes 30 MW DEC

30 MW

20 MW

50 MW

20 MW

Bidding-Platform

IPPGenD

IPPGenA

GenC

GENS

BA/PO (transacting party)

ICCP Data Link

BA’s

DataSharing

DataSharing

Intra-hour Block Energy Sell Bids (“INC”)Intra-hour Block Energy Buy Bids (“DEC”)

DataSharing

5

Page 6: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting Integration of Renewable Generation

BPA Wind Integration Projection

Page 7: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting Integration of Renewable Generation

What is Needed?• Ability to regulate for intermittent resources, mostly wind

• Ready Access to Generation Resources– Within the Balancing Area– Outside the Balancing Area

• Methodology– Dynamic Scheduling– Intra-hour Load Following– Other

Page 8: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting Integration of Renewable Generation

What is Needed?• Opportunity- for Generators to bid Intra-hour Load Following and Dynamic Scheduling over

a wide area

• Visibility -Tools for balancing authorities/grid operators to access bidding generators across a wide area

• Cooperation- Active participation by BAs who can directly benefit and by BAs who can facilitate dynamic scheduling and intra-hour services

Page 9: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting

Integration of Renewable Generation What is Needed?• Standard Business Practices – Flexible to allow mid-hour scheduling and tagging (make

the schedule change and tag after the fact like reserve sharing?)

• Automation--Ultimately need to support up to 10 minute changes (automate the scheduling and tagging process?)

• Manual-- Need to make mid-hour changes across multiple balancing authorities is urgent (one or several changes per hour?)

Page 10: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting

Integration of Renewable Generation

Getting Regional Interest • ColumbiaGrid made a presentation at the WECC MIC

meeting in March 2008 on its efforts to develop Redispatch and Energy Balancing markets which generated interest from WestConnect and NTTG parties.

• In May 2008, ColumbiaGrid approached NTTG to consider a Joint Initiative which we both agreed to explore.

Page 11: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting Integration of Renewable Generation

Joint Initiative• At a June 30 NTTG meeting in Boise, broad concepts

were introduced and ColumbiaGrid, NTTG, and WestConnect representatives agreed to explore co-sponsoring a Joint Initiative.

• On July 8 in Portland, the first exploratory stakeholder meeting was held

• Joint Initiative meetings were held in Reno on August 26 and in Salt Lake on September 29

Page 12: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting

Integration of Renewable Generation

Joint Initiative Goals and Focus

• Goal: work jointly with other sub-regional groups, utilities and interested persons to find solutions to broader regional problems.

• Current problem focus: integration of rapidly growing amounts of variable-output generation (primarily wind generation) into existing balancing authority areas.

Page 13: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting

Integration of Renewable Generation Joint Initiative--Two Strike Teams and One Think Tank• The Infrastructure Strike Team is focused on delivering a common

communications infrastructure and protocols for dynamic scheduling—jointly staffed

• The Products and Services Strike Team is focused on delivering Intra-hour Load Following services -- jointly staffed

• The Think Tank is a broader stakeholder group that provides policy and direction and is jointly facilitated by ColumbiaGrid, NTTG, and WestConnect

Page 14: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting Integration of Renewable Generation

Joint Initiative- Parties involved:

• BPA, Snohomish, Tacoma, SCL, Grant, CG staff

• PAC, PGE, Idaho, Northwestern, NTTG staff

• APS, Excel, WestConnect staff

• OATi, WECC staff, PPC, NIPPC, and others

Page 15: 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting

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ColumbiaGrid Activities Supporting

Integration of Renewable Generation

Joint Initiative- Defining Success

• Get Intra-hour services and/or dynamic scheduling approaches to implementation within 10 to 18 months

• Get used to thinking in terms of regional problem solving and getting things done