future trends in power systems - university of michigan
TRANSCRIPT
Dr Ashok ManglickGroup Manager/Strategic Projects, TransGrid
Future Trends in Power SystemsA Short Course in honour of Professor David Hill
Monday 12 October 2009, University of Sydney
Non-Network Options and Demand Side Response for Network Support –
TransGrid’s Experience
Outline TNSPs and DSR
TransGrid’s Approach to Demand Response
Regulatory Framework for TNSPs
The Planning process
Case Study: Acquisition of 350MW of
network support for summer 2008/09
Future projects
Questions and Discussion
T1
Scale
0 100 km
Queensland
Victoria
CountryEnergy
Integral Energy
energyAustralia
New South Wales
A.C.T.
SnowyACTEW/
AGL
TransGrid’s Network
500 kV500 @ 330 330 kV220 kV132 kVDistributor BoundaryPower Station
Major Substation
TRANSGRID’S CUSTOMERS
Delta Electricity
TransGrid
Generation Transmission DistributionAuthorities
MacquarieGeneration
EraringEnergy
energyAustralia
IntegralEnergy
CountryEnergy
Consumers
ACTEW/AGL
Large IndustrialsSnowy
Other TNSPs
DSR for TNSPs
Eliciting demand side response in terms of reducing peak electricity demand, changing energy usage to other forms of energy sources and/or installing embedded generation to meet part customer peak electricity demand.
Common DSR/DSM Practices
Load control- shift load to off peak Embedded generation Interruptible loads Industrial co-generation Power factor correction Shift to alternative energy sources – wind, gas etc.
TransGrid’s Demand Side Initiatives
Exploring & contracting Non-Network Options, where prudent and efficient
International Participation: IEA and CIGRE (via C6 Australian Panel)
State wide Demand Management Participation
Working with all NSW Distributors on Innovation in Demand Management
Exploring Non-Network Options
Annual Planning Report “Needs Statement” for each constraint describing the
nature of constraints Request For Proposals or similar calls seeking market
input for non-network options to defer (or eliminate) proposed network augmentation
For major network augmentations TransGrid publishes:
Non-Network Alternatives Requests2000-2009
Western Area of NSW Mid-North Coast of NSW NSW Central Coast South West of NSW Far North Coast West & Central West NSW Newcastle-Sydney-Wollongong (N-S-W) area Inner Sydney Metro Area – work in progress
Regulatory Framework for TNSPs
The AER regulatory regime
The AER Revenue Cap Decision
The National Electricity Rules
TNSP’s Obligations in the NER
Applying Regulatory test which requires TNSPs to treat non-network alternatives on equal footing with network proposals
EfficiencyMust be economically more efficient than other options (Reg.
Test) Prudence
TransGrid has obligations to maintain supply reliability to its customers. Non-network alternatives must deliver same level of reliability as network alternatives
Also, non-network alternatives must be feasible (must have a proponent or a likely proponent, able to deliver when required)
Funding from Pass Through
A Network (Grid) Support Event is a material change in the cost (if any) of network support. Can apply for pass-through of the cost
Pass-Through Event must be prudent, efficient & have a financial impact on TransGrid during the Regulatory Control Period.
Pass-Through amount must be material.
Funding from Deferral of Capex
The non-network network support alternative must be cost-effective when compared with the most cost-effective network alternative
Cost of implementing non-network alternative must be less than the benefit from capex deferral related to the proposed network alternative
The Board expects a robust commercial analysis (as different from economic analysis) justifying non-network option including risk management.
The Planning Process
Integration of non-network alternatives in planning process
Seeking and evaluating non-network alternatives as part of the capex decision making process
Identification of needsND&RA
Operational issue
NPO
Asset Condition
NS, NPO
Load & Generation Scenarios
ND&RA
Network Adequacy
ND&RA
Connection Enquiries & Applications
ND&RA
Joint Planning
with DNSPsND&RA
Feasibility StudyCPD
Project Definition Report >$10m
ND&RA
Technical and commercial evaluation of non -network
alternatives ND&RA
Outline PlansND&RA
Funding approval for Construction
CPD, NS, NPO
Risk Assessment
All
Non-network alternatives including DSM and generation
(Request for Proposals if required) ND&RA
Annual Planning Report
Detailed Planning and Options Development
Project Scoping Reports for network alternatives
Option Assessment
ND&RA
ND&RA
Regulatory Consultation Application Notice
DSM/Generation negotiations
ND&RA ND&RA
ND&RA
ND&RA
Project Definition Report <$10m
ND&RA
ND&RA
Decision Gate 1
Decision Gate 2
Sign off to start Regulatory Consultation
ND&RA
Regulatory Consultation Final Report ND&RA
Decision to examine non -network alternatives ND&RA
Sign Non-networkAgreement(s)
Funding approval for contracted DSM /Generation
Network Support
ND NP G3 004
The Planning process
Identify network needs (outside scope of this procedure )
Publish needs document (e.g XX MW required at ‘y’ location on grid in YYYY
Review responses
Pursue non-network option ?NO
STOP
YES
Prepare and publish EOI or RFP
Analyse & evaluate responses to EOI or RFP (technical & commercial)
Undertake Regulatory Test(ND NP G2 003 NER ‘Planning
Consultation Process’ for details )
Option fails
STOP
Option passes
Detailed negotiations with proponents and execution of
NSA
Implement
Review on completion of NSA term
Non-network alternatives:The process
Case study:
Non-network alternatives to defer a 500kV transmission project upgrade
Network Supplying the
Newcastle/Sydney/Wollongong Area
Newcastle
Sydney W ollongong
Hunter Valley Power
Stations
NSW northern load
Power transfers to and from Queensland
Snow y Power Stations
Power transfers to and from Victoria
W estern Power
Stations
Southern load area
Central Coast Power
Stations
Sydney W ollongong
Overall System Limitations
Bayswater Liddell
Power flow to and from north
and
Mt P iper W allerawang
Marulan
Centra l Coast power stations
Multip le lines
330
500 kV construction operating at 330 kV
Line rating lim itation
Voltage control lim itation
Hunter Valley power stations
W estern power stations
Newcastle
Tom ago
G reater Sydney
South Coast Dapto
South west
500kV Western System Upgrade: Non-network Options
Needs Statement (350 MW for summer 2008/9): issued October 2005
RFP issued August 2006, closed Sep. 2006
Classified in portfolios the most cost effective offers, totalling 350 MW (effective)
500kV Western System Upgrade: Non-network Options (2)
Cost components: availability and despatch payments; Total cost of recommended portfolio : $21.9M;
availability & despatch about equal. Recommendations approved by the Board: June 2007 Pass-through approved by the AER, May 2008
Operating procedures & processes
Notification & dispatch procedures Communication protocols Performance verification & payment processes
500kV Western System Upgrade: Non-network Options (3)
Major issues with AER
Materiality
Efficiency
Reasonableness
Major issues for TNSPs
Risk of not being able to meet reliability obligations due to lower reliability of non-network alternatives and uncertain availability
Financial risks & funding
Operational risks o Embedded generatoro Large industrial loado Aggregator
Future DSR Projects
Sydney Metropolitan Development Deferral by one or two years
DM Innovation 2009-2014
Sydney inner metropolitan area system development
TransGrid & Energy Australia joint planning & development in the Sydney Inner Metropolitan;
Complex project – transmission lines (overhead and underground) and associated substation works
Need to identify deferrable portions of the project (e.g. Land acquisition generally cannot be deferred)
TransGrid/EnergyAustralia Sydney Supply Areawhere DM needs to be implemented to defer projects by one year, or two (subject to availabilityof DM capacity)
The AER has approved DM Innovation allowance to DNSPs in NSW & ACT
TransGrid received approval for DM innovation projects for the 2009-2014 regulatory control period
TransGrid proposes to work with the DNSPs and has signed MOUs with them
Implement lessons learnt from the DMPP and Other new initiatives in partnership with distributors in
NSW & ACT
Innovation Demand Management
2009-2014
Questions & Discussion