january 7 2010 stakeholder information session presentation

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Reliable Power Reliable Markets Reliable People Market Services Stakeholder Session Thursday, January 7, 2010 Metropolitan Centre, Calgary

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Reliable Power 

Reliable Markets

Reliable People

Wind Technical Rule

John Kehler 

Senior Technical Specialist

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Agenda

� Purpose of Session

� Why a Wind Technical Rule

� Summary of Key Points

� Authoritative Documents� Inputs to the Wind Technical

Rule

� Overview and Discussion of theWind Technical Rule

� Next Steps

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Background

Market and Operational Framework

� Market and Operational Framework: effective September 26, 2007

� Premise of framework - If the System Operator receives a reasonable

forecast of wind power generation, then they can establish an operating 

 plan to accommodate the forecast wind energy by using the following 

resources/tools:

 ± Forecasting

 ± The Ener gy Market Merit Order 

 ± Regulating Reserves ± Wind Following Services

 ± Wind Power Management

� Market and Operational Framework: effective September 26, 2007

� Premise of framework - If the System Operator receives a reasonable

forecast of wind power generation, then they can establish an operating 

 plan to accommodate the forecast wind energy by using the following 

resources/tools:

 ± Forecasting

 ± The Ener gy Market Merit Order 

 ± Regulating Reserves ± Wind Following Services

 ± Wind Power Management

� AESO Final Recommendations for the implementation of the MOF -June 18, 2009

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Purpose

� Review and discuss the Wind Technical Rule withstakeholders prior to submission of comments (deadline for comment is Jan 22)

� Encourage stakeholders and suppliers of wind facilityequipment to comment on the Wind Technical Rule

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Key Points

� The Wind Technical Rule is:

� For all wind power facilities, any considerations for existing and newfacilities will be addressed in the Rule

� In most cases the technical intent remains the same as in the

predecessor standard� Primarily to add requirements for physical infrastructure at wind

power facilities for wind power forecasting capability, power limiting,ramp rate limiting and over-frequency control

� Proposing effective date of 180 days post  AUC approval to provide

existing facilities a reasonable period of time to add or modify equipmentat wind generating facilities

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Transition of Wind Technical

Requirements

New ISO Rules Frameworkhttp://www.aeso.ca/rulesprocedures/17885.html

AESO Tariff 

Authority for the Technical

Requirements currently under the

Tariff 

Authority for Technical

Requirements will transition to

Part 500 of ISO Rules

Article 4

Customer Interconnection

Requirements

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Transition of Wind Technical

Requirements

Existing Requirements

� Use and consistency of definitions

� Clarify the language and incorporate newor updated definitions

� Clarify the requirements based on last 5 years experience

New Requirements

� Add grandfathering

� Add Over Frequency Control requirements

� Add Ramp and Power Limiting

requirements� Add forecasting and meteorological data

requirements

Example of anInformation

Document

Existing 

Guide

Existing Requirements

New Rule andRequirements

New

Information

DocumentFuture

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Considerations in Developing Wind

Technical Rule

� Current W ind Power Facility Technical Requirements - November 2004

� Wind Power Forecasting Pilot Project Work Group recommendations

� Wind Power Management Protocol Work Group recommendations

� Wind Power Management Technical Requirements Work Group� Transition Of  Authoritative Documents (TOAD) policies, template,

framework, standards and principles

� Any applicable provisions of  Alberta Reliability Standards

� AES

Ofinal recommendations to implement the Market and Operational Framework for W ind Integration - June 2009

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Specific Policy Considerations

� All forms of generation in  Alberta have certain basic obligations

� Wind Technical Rules are specifically for wind power facilities thatconnect to the transmission system

� W ind Power Facility Technical Requirements included ³policy placeholders´ for future technical requirements

� In a separate and future consultation on wind power integration, the AESO will consult on how and when wind power or ramp rate limiting,and wind forecasting, will be used

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Technical Considerations

� Development of technical requirements in Wind TechnicalRule is based on either:

 ± NERC/WECC requirements, or 

 ± AESO requirements� Fairness amongst generating facilities,

� Technical capability of existing wind facility technology

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Performance Points

� Collector Bus ± Maximum

 Authorized MW

 ± Gross MW

 ±

ReactiveP

ower requirements

 ± VoltageRegulation

 ± VoltageOperating

Range ± Over 

FrequencyControl

 ± Monitoring

� Point of Connection ± Voltage Ride

Through

 ± Off NominalFrequency

 ± Power andRamp RateLimiting

 ± Monitoring

� Facility ± Meteorological

data

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Definitions

(Apply to all participants)

General Definitions

� ³generating facilities´

� ³maximum authorized MW´

� ³operator´

� ³person´

� ³wind turbine generator´

� ³transmission system´

� ³voltage regulating system´

� ³owner´

� ³gross MW´

� ³point of connection´

These definitions will move out

of Wind Technical Rule and

into Part 100: General of the

ISO Ruleshttp://www.aeso.ca/rulesprocedures/17885.html

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Applicability Section 1

 Applies to all wind generating facilities

� New facilities must comply

� Existing facilities connected under 2004 technical

requirements must comply

� Grandfathering considerations to those facilities connectedunder 1999 technical requirement

� All wind generating facilities participate in wind power forecasting requirements including meteorological datarequirements

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Example of Grandfathering Rule

3

18 MW grandfathered to the1999 technical requirements

Two 3 MW turbines areupgraded over any period of time. The upgraded 6 MW must fully comply with theWind Technical Rule. The

older 12 MW remain under the 1999 requirements untilsuch time they are upgraded.

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Example of Grandfathering Rule

3

MW

Upgraded portion will be required tocomply with voltage ride through, voltageregulation, reactive power, over frequencycontrol, power limiting, ramp rate limitingand any other requirements that aredeficient to the new Wind Technical Rule

Grandfathered portion is not likely to complywith the voltage ride through and is notrequired to comply with the over frequency

control, power limiting and ramp rate limitingrequirements of the new Wind Technical Rule

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Over Frequency Control

Section 15

� Frequency control requires fast measurement and good resolution of system frequency

 ± 30 samples per second at 0.004 Hz resolution in the standard

� Consistent with conventional generators

 ± 0.036 Hz allowable deadband

 ± Equivalent to 5% speed drop

 ± Response rate equivalent to gas and hydro

� Coordinates with the off nominal frequency requirements

 ± Facilities can disconnect from the grid at 61.7 Hz

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59.8

60

60.2

60.4

60.6

Time (10 Minutes Per Division)

   A   l   b  e  r   t  a   F  r  e  q  u  e  n  c  y   (   H  z   )

60.036 Hz Allowable

deadband

Time (10 Minutes Per Division)

   M   W    (

   I  n   %  o   f   C  a  p  a  c   i   t  y   )

   (   2   0   %  p  e  r   d   i  v   i  s   i  o  n

   )

Illustrative Example of Wind Generating Facility

MW output to an over frequency event "with"

and without" over frequency controls

Over Frequency Control Example

� Example of actual over frequency event in 2009

� Wind MW is illustrative only

� When system frequencyexceeds the allowable dead-band

� Controls will reduce MW output of the wind generatingfacility

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Power Limiting and Ramp Rate

Limiting Section 17

� Power limiting and ramp rate limiting manage the MWsproduced at the Point of Connection

 ± These are the MWs supplied to the market

 ± These are the MWs that will be forecasted

� Power limiting will be manually put in control with a Directive

� The control system must be fast and precise to maintain theMWs within reasonable tolerance of the Power Limit duringvariable and gusting wind conditions

 ± Prevent MW from exceeding the power limit by 2% for normal windconditions and by 5% during gusts

� Ramp rate limiting is required with a default rate of 10% per minute

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Illustrative Example of How Power 

Limiting and Ramp Rate Limiting Could

Coordinate

Illustrative Example of Power Limiting and Ramp Rate

Limiting

10 Minutes Per ivision

      M

Potential M s Power Limit

Combined Power and Ramp Rate Limit Actual M s

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SCADA Requirements Section 31

� New SC AD A signals from the facility to the  AESO

 ± Potential MW capability signal

 ± Power limit signal

 ± On/off status of the power limiting controls

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Description of potential MW

capability

Measured windspeed and

direction

Local computer calculates

potential MW from the turbine

WPF SC AD A

system collectsand sums thepotential MW

from all turbinesat the WPF

Utility SC AD A

system sendsdata to the

 AESO

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Wind Power Forecasting Data

Collection Section 32

� Met tower with 2 weather measurement devices ± measurement at the wind turbine

generator hub height and another takingmeasurements at a height specified by

the ISO

� Measurements are 10 minuteaverage values ± wind speed, wind direction, barometric

pressure and ambient temperature

� AESO is currently working ondetails for data transfer 

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Wind Power Forecasting Data

Collection Section 36

� Historical data and facility information necessary for windpower forecasting

 ± Historical 10 minute averaged meteorological data, containingdetails on wind speed, wind direction, temperature and barometricpressure

 ± Historical data and records referenced in subsection for up to 2calendar years prior to the commissioning period of wind generatingfacilities

 ± Provide wind turbine generator data and records, including hubheight, turbine land coordinates, turbine power curves, high windspeed cut-out, and any applicable temperature cut-outs

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Other Changes

� Transfer trip or anti-islanding schemes are proposedadditions where the facility is not required to voltage ridethrough

� Monitoring requirements were a ³may require´ - we are nowproposing a ³must require´

� Harmonic and Flicker measurements/tests were a ³mustrequire´ - we are proposing a ³may require´

� Figures and tables moved into appendixes

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Next Steps

� January 22, 2010

 ± Stakeholder comments back to the  AESO

� February, 2010

 ± Post Stakeholder comments

 ± Post  AESO response to stakeholder comments

� March 2010**

 ± File Wind Technical Rule with  AUC

**Date may change depending on any material changes as a result of consultation

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Questions ?

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Contact Information

John Kehler 

Ph: 403-539-2622 

[email protected]

Kevin W iens

Ph: 403-539-2672 

[email protected]

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Reliable Power 

Reliable Markets

Reliable People

Wind Power Forecasting 

Update

Rob Baker 

Manager Forecasting

Rob Baker 

Forecasting

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Agenda ± Wind Power Forecasting

� Pilot Study

� Wind Power Forecast RFP

� Purpose and Benefits of Wind Power Forecasts

� Wind Forecast Service Cost Recovery

� Next Steps

� Questions

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Wind Power Forecasting Pilot

Project

� AESO conducted a wind forecasting pilot project in 2006 to

 ± Trial different methods and providers

 ± Identify the most effective forecasting methods in  Alberta

 ± Identify the most effective providers of wind power forecasts

 ± Educate industry on the capabilities of wind power forecasting in Alberta

� Project funded by Dept of Energy,  Alberta Energy ResearchInstitute,  AESO with expertise provided by CanWEA

� Wind forecasters were  AWS Truewind, energy & meteo, andWEPROG

� Industry working group monitored results from pilot projectand provided recommendations to  AESO used to develop

Forecasting Service RFP

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Wind Power Forecasting RFP

� AESO issued a request for proposals in June 2009

� The objective of the RFP is to solicit proposals to deliver accurate wind power forecasts for the  AIES with theseoutcomes:

 ± Availability of a production Wind Power Forecasting Service for the AESO

 ± Accuracy and reduced uncertainty of wind power forecasts

 ± A high quality Wind Power Forecasting Service and ongoingperformance improvements

� AESO involved industry stakeholders (ENM AX, CanadianHydro, Shell, Suncor, Trans Alta, and CanWEA) to provideinput and advice to the  AESO regarding the selection andRFP review process

� Negotiations with a vendor are underway

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Purpose and Benefits of Wind

Power Forecasts

AESO

� Reliable operation of the power system

 ± Ancillary service forecasting and procurement

 ± Supply adequacy

Wind Developers

� Each individual wind generating facility will have access to the forecastfor its facility

Industr y / Market Participants

� Aggregate forecasts provided on the  AESO website

� Transparency of aggregate wind forecasts to market participants

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Wind forecast service cost

recover y

� External wind power forecasting service cost will beallocated amongst wind power facility owners as a $/MWhcharge

� Cost recovery will begin in Q4 2010 and will be levelizedover Q4 2010 and the subsequent 3 years

� An escalation factor of 10% to the $/MWh rate will beapplied

� Variances from forecast costs and revenues will bereconciled on an annual basis

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Questions ?

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Contact Information

Rob Baker 

Ph: 403-539-2614

[email protected]

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Reliable Power 

Reliable Markets

Reliable People

Transmission Constraints

Management (TCM)

Gordon Nadeau

Market Design Specialist

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Agenda

� TCM Rule 9.4  AUC Re-Filing Proposal Discussion Paper 

 ± AUC Decision 2009-042:

� Review  AESO views on Commission findings

� Review  AESO proposals on Commission directions

� Remedial  Action Scheme (R AS) in the planning domain

 ± Review  AESO approach in R AS comment response matrix

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Proposed TCM Rule 9.4

Protocol Steps to Manage Constraints

1. Determine effective generation and load

2. Directives to generate above MC are canceled

3. Dispatch off downstream Dispatch Down Service (DDS) providers

4. Curtail imports/exports as appropriate

5. Curtail downstream Demand Opportunity Service (DOS)6. Dispatch effective TMR (use DDS to reconstitute price)

7. Curtail upstream energy in reverse merit order (RMO) based onenergy offer price followed by pro rata, if congestion is sustainedbeyond T-2 period, use pro rata only

8. Dispatch downstream energy using the merit order up to replace thecurtailed upstream energy

9. Curtail downstream load

10. When curtailing effective upstream assets, curtail ancillary servicesbefore energy

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Review of Findings in

AUC Decision 2009-042 on TCM Rule 9.4

� Economic Dispatch: The use of the merit order for dispatch instructionsis aligned with regulation.

� Price Impact: Price impact of the TCM rule will be reasonable under 

current and anticipated market conditions.

� Compensation: Constrained down payments are not contemplatedunder regulation.

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Review of Findings in

AUC Decision 2009-042 on TCM Rule 9.4

� Transmission ³rights´: Regulation provides for reasonable systemaccess which does not equate to a ³right´. The  AESO is allowed toassign a R AS under regulation where appropriate.

� Use of TMR/DDS: The use of TMR/DDS may be applicable in certainsituations but that it is not appropriate in all constraint situations.

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AESO Proposals regarding Commission

Directions on TCM Rule 9.4

Directions:

� Scope of Rule

� Use of TMR

� Pay as bid protocol

� Define fundamental terms

� Clarify TCM process steps

Proposal:

� 9.4 is real time rule only

� TMR for reliability only and

not price management

� Pay as Bid not recommended

�Definitions provided for loadpocket and other terms

� Explain use of TMR/DDS withinsteps

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Pay as Bid Discussion

Pros

� Price impact of constraintremoved

� Creates separate sidepayments for constraints

� Congestion costs may belower than proposed TCMprotocol

Cons

� Does not promote price fidelityunder current market design

� Not the best price signal and maynot be effective in managingconstraints

� Not a generic, in-market solutionthat applies to all constraint cases

� Operationally and administrativelycomplex to implement

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Pay as Bid Discussion

 AESO Conclusions

� Price signal is the appropriate method of encouraging FEOC behaviour not out of market solutions

� The Rule 9.4 protocol:

 ± Is effective and practical

 ± works within current market framework ± Is a single protocol that deals with all constraints

 ± Promotes price fidelity by minimizing the price impact and level of marketdistortion

� The  AESO does not recommend using any pay as bid protocol withinthe TCM Rule

� Severe market distortions are not constraint management issues andwill be dealt with appropriately through other means

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Reliable Power 

Reliable Markets

Reliable People

Remedial Action Scheme

(RAS) in the Planning Domain

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RAS in the Planning Domain

� Stakeholder comments on the R AS discussion paper and the  AESO response to those comments were published in December 2009

� A review of the  AESO approach is provided to facilitate ongoingstakeholder consultation on R AS

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RAS Discussion

Transmission Regulation gives the  AESO the authority to use R AS

� R AS is permitted under the Transmission Regulation section 15(1),however, R AS is not an alternative to major system upgrades or keytransmission paths

� R AS can be temporary or permanent under section 15(1)

� Specific temporary R AS exceptions are allowed under sections 15(2)and 15(3)

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RAS Discussion

Overarching R AS rules are appropriate

� Requirement for R AS determined by Reliability Criteria and  AlbertaReliability Standards - It is not appropriate to have R AS criteria in theISO rules

� Reliability Criteria documentation to be reviewed in 2010 and specificR AS criteria will be discussed

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RAS Discussion

Two types of R AS: Connection R AS and System R AS, each of whichserve different purposes and require different approaches

Connection RAS

� Assigned to and paid for by customers on a last in first off basis - Alternatively, the customer can choose to wait untilfacilities are built

� Is temporary, however, the  AESO can only provide anestimate of when it is no longer needed

� Customers do not receive compensation for beingconnected to a R AS

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RAS Discussion

System RAS

� May be assigned or procured

� Customers do not receive compensation for being constrained down

� May be permanent

� System R AS applications unique:

 ± May develop over time with no single cause

 ± Variety of solutions may exist

 ± Could involve generation or load or both ± Compensation may be a consideration depending on the purpose and who

benefits from the protection

 ± Each application will require consultation on a case by case basis

 ± May require high level guiding rule

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Next Steps

� Comments on the TCM paper due January 15, 2010

� AESO response to comments will be provided and mayproceed to re-filing Rule 9.4 with the  AUC in Q1

� OPPs will be filed in stages in 2010 and full implementationof Rule 9.4 thru OPPs and systems to proceed on a yet tobe determined schedule

� Consultation to proceed on R AS rules and a R AS

Information Document in Q1

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Contact Information

Gordon Nadeau

Ph: 403-539-2568 

[email protected]