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MISO Overview Southeastern Wind Coalition March 30, 2016

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Page 1: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

MISO Overview Southeastern Wind

Coalition

March 30, 2016

Page 2: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

Market Footprint by

Region Genera&onCapacity

178,808MW(market)189,390MW(reliability)

HistoricPeakLoad(July20,2011)

127,125MW(market)131,181MW(reliability)

HistoricWindPeak(February19,2016)

13,088MW65,800milesoftransmissionFootprint

15States1CanadianProvinceCityofNewOrleans

2

Page 3: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

Scope of Operations – Market Operations

•  5-minute dispatch •  2,439 pricing nodes

•  $24.7 billion gross market charges (2015)

•  425 market participants

•  42 million end-use customers

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Page 4: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

•  MISO is a service company that provides reliability to the electric grid

•  MISO administers the market for electricity producers and users on a wholesale level

•  MISO does not generate or buy electricity

Our Role

Page 5: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

•  Monitor energy transfers on the high voltage transmission system

•  Schedule transmission service •  Manage power congestion through security-

constrained economic dispatch •  Operate day-ahead and real-time

energy and operating reserves markets •  Regional transmission planning

What We Do

Page 6: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

MISO Evolution

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Page 7: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

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Yearly Wind Growth at MISO

1,1122,462

4,861

7,625

9,22110,601

12,27113,035 13,726

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

DEC2006 DEC2007 DEC2008 DEC2009 DEC2010 DEC2011 DEC2012 DEC2013 DEC2014

MW

YEARLYWINDGROWTHATMISOINMW

WINDGROWTHATMISO

Page 8: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

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Projected Wind Growth at MISO

15,08116,650

18,17519,700

21,010

0

5,000

10,000

15,000

20,000

25,000

DEC2015 DEC2016 DEC2017 DEC2018 DEC2019

MW

PROJECTEDWINDGROWTHATMISOINMW

PROJECTEDWINDGROWTHATMISO

Page 9: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

Current Wind Capacity •  Registered Wind March 2016 Commercial Model = 15,111 MW •  Registered Wind In-service as of 3/25/2016 = 14,773 MW •  Registered as a Dispatchable Intermittent Resource (DIR) = 12,623 MW (84%) •  Registered DIRs In-service as of 3/25/2016 = 12,285 MW •  DIR Exempt = 2,488 MW (16%)

RegisteredDIR,12,623MW(84%)

DIRExempt,2488MW(16%)

March2016RegisteredWind,15,111MW

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Page 10: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

MonthlyWindEnergyGenera&on

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Page 11: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

MonthlyDIRWindEnergyGenera&on

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Page 12: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

DispatchedGenera&onFuelMixbyRegion

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Page 13: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

Projected Solar Growth at MISO •  Approximately 1700 MW of Solar Generation in

various stages of the Interconnection Queue

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Page 14: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

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How are wind integration costs spread over large market footprints and regions? •  Wind Integration Costs

–  Costs of transmission infrastructure necessary to interconnect the wind generation to the BES

–  Costs of delivering wind generation across the footprint •  Infrastructure investment •  Operational costs

•  Interconnection costs –  Local interconnection upgrades paid for largely by generator; 10% of 345 kV and

above upgrades postage stamped across footprint •  Delivery costs – infrastructure investment

–  MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states – 17 EHV transmission projects

–  Costs are postage stamped across the footprint

Page 15: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

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Are Operating Reserves additions needed •  MISO’s geographic diversity, large Balancing Area,

and Dispatchable Intermittent Resource Product have allowed MISO to not increase Operating Reserves to date

Page 16: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

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How do operators ensure reliability in a low load situation

•  MISO uses advance notice of potential Minimum Generation situations to allow generators to choose to do maintenance

•  When in a Minimum Generation situation: –  MISO can use Dispatchable Intermittent Resources to dispatch

down –  MISO can use emergency ranges of generation

Page 17: MISO Overview - Southeastern Wind Coalition · – MISO has multi-value project portfolio that was primarily driven by the Renewable Portfolio Standards mandated within the MISO states

Questions?

Michael McMullen

[email protected]