electricity infrastructure: overview and issues (2)
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Electricity Infrastructure: Overview and Issues (2). H. Scott Matthews February 5, 2004. Admin Issues. HW #2 Out Today Semester Projects Groups of 1 or 2 (max) Topic on managing infrastructure Pricing can be component but should have higher-level, decision type model. - PowerPoint PPT PresentationTRANSCRIPT
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Electricity Infrastructure: Overview and Issues (2)
H. Scott Matthews
February 5, 2004
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Admin IssuesHW #2 Out Today Semester Projects
Groups of 1 or 2 (max) Topic on managing infrastructure Pricing can be component but should have
higher-level, decision type model
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Recap of Last LectureSource of energy changed dramatically
in 100 years in US Now mostly fuel for transport, elec all else Electricity still mostly fossil fuel dependent Nuclear / renewables still very limited
Electricity grid has developed as needed over time with changing requirements/demands affecting it
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Interstate Commerce (IC) In early US history, states treated each other
like foreign countries Taxes, licensing, port restrictions, etc. States had their own agreements with foreign
countries (e.g. Britain) This activity was not in ‘spirit of Union’
Constitution gave Congress power to regulate IC (as well as foreign nations) Note regulate was intended to mean “make
uniform”
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Electric “Utilities” (Utils) Electricity businesses eventually crossed jurisdictional
lines and became regulated Economies of scale - cheaper to have many users Regulated as “natural monopoly” Strategy was vertical integration (ownership of all local
pieces - generation, trans, dist) Started to interconnect - helps reliability, cost Easier to regulate, but hard to control price Recently USA decided to ‘deregulate’ and push for
wholesale markets to trade power End result: electricity sent over longer distances and
through more systems than originally designed for
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System Statistics (End 2000) 127 million “customers” (all sectors)
Total electric power demand = 3500 TWh/yr Number of power plants
Non-utility: 6500 units, 208 GW (growing - dereg) Utility: 9350, 600 GW
154,000 miles of AC transmission lines 3,300 miles of DC transmission lines Next 10 yrs: 6% transmission (line-miles) growth,
but 20% capacity/demand growth Not a problem, if plants sited near demand But, of course, its not!
http://www.eia.doe.gov/oiaf/aeo/
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Electric System Challenges Unique Instantaneous management of supply and
demand Imagine having built infrastructure that dynamically
reconfigured itself to get you to your destination efficiently, without delay
Maintain 60Hz frequency Passive Transmission
Few control valves Just open and close switches to dispatch transmission
lines
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ImplicationsEvery action can affect everyone else
Need to coordinateCascading problemsNeed to be ready for next contingency
dominates design “what if” planning
Flows near speed of light - need to act fast
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Diagram of U.S. Electric Power Grid Removed
Due to National Security Implications(Seriously!)
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Blackout of November 9, 1965 By 1965, electricity part of everyday life Most of NE US (and Canada!) dark Sign that we were not managing well
Six days to realize source of problem 1 relay failed at station in Canada (Niagara Falls) Caused transmission line to go ‘open’ Caused series of cascading failures all the way back to New
York City Took only 15 minutes to blackout NE US
Caused people to rethink dependence Until then, power systems design geared around
‘isolation’ to prevent damage
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As a Result of 1965 Blackout.. Consumers made contingency plans As did firms and large industrial users At high/policy levels, coordinating entities were formed to
manage North American Elec. Reliability Council (NERC) New York Power Pool (NYPP) Developed industry equipment standards Developed reserve gen. capacity Interconnection and reliability methods
Isolation had led to islands/points of failure Now we more heavily ‘network’ the system so there are
multiple paths for power to flow
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NERC
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Voluntary organization to promote reliability Alternative to being regulated
Sets standards, collects data, etc. No longer sufficient after dereg.
Three majorinterconnectedpower systems in US that coordinateactions to keepreliability
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Reliability ComponentsAdequacy
Does (projected) Supply = Demand? A long-term planning process
Security Robust system against failures (short-term)
NERC transitioning to have enforcement power to meet reliability
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Electric Power ‘Jurisdiction’ FERC - Fed Energy Regulatory Comm.
Regulates trans/sale of energy and fuels Electricity : regulate bulk power
Oversees environmental issues Budget from fees to regulated firms
NERC (already done) Control Areas - fundamental entity (150)
Vary: PJM (50,000 MW) others 100 MW Regional Reliability Councils (10) Interconnects (3) Note State PUCs not mentioned
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Deregulation Effects Transmission built primarily over 100 years by vertically
integrated utilities Originally built close to fuel supply Recap: at first only local transmission built Some interconnections built for reliability, relief Utils cooperated - in mutual best interest
Dereg. sought to lower elec prices by: Making capital available for new capacity Increasing efficiency of operations
Trans. grid ‘interstate’ for wholesale electricity But highway congestion just means delay Electric transmission congestion = lost energy!
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Deregulation (cont.) Now > 50% of power sold wholesale first Congestion - demand & construction of new
generation not matched with new trans. Incentives to cooperated reduced
What happened in California? Depends! Imbalance in supply/demand - not much new supply
approved for construction, demand higher Big part of problem was faulty market design Lack of adequate transmission for competitive power to
come into market to ease prices 1996: FERC opened ‘wires’ to non-utilities
Basically opened market to competition
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Energy Policy Act - 1992 1980s: electricity trading had taken off Act pushed trading: Gen & Trans competition Non-utils to have power plants By 1998: nonutils 13% market share
Called Independent Power Producers (IPP) Don’t forget regulatory process!
Congress : laws + authority, implementation : agencies FERC Order 888: encouraged ISOs
Independent System Operators Independent of commercial interests Could own no generation
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Recent changes ISOs - Independent System Operators
Open and fair access to regional grid; non-discriminatory governance structure; facilitating wholesale electric rates; independent - don’t own gen/trans
1999: FERC Order - RTOs Regional transmission organizations
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Factors for Transmission and Distribution Losses Location of generating plant and load connection points (how
close to demand) Types of connected loads Network configuration Voltage levels and voltage unbalance Dynamic factors (e.g. power factor, harmonics, control of
active and reactive power) Length of the lines - almost linear relationship Current in line - a square law relationship Design of lines, particularly the size, material and type of
cables California / US about 10%
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Cost Issues Average electricity price 7 cents/kWh
Decreasing by new const and coal prices Expected demand growth 2%/yr til 2020 Transmission costs ~10% of total cost
Resulting bottlenecks cause short-term price increases and thus higher costs! Problem areas California, PJM, NY, New England $500M / yr in these areas alone
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Management Metrics Capacity Margin = Generation/Demand Base load - min. amount electricity required
over a given time interval, at steady rate Peak load - max load requirement during a
given time interval Intermediate load - between base & peak
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Energy Balance for Typical Coal Plant
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Energy Balance for Typical Coal Planthttp://www.energy.qld.gov.au/electricity/infosite/elec&env7/roleofenergy7_3/efficiencyinpowerstat/energylosses/energylosses.htm