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Page 1: SPP’s Operating Region
Page 2: SPP’s Operating Region

SPP’s Operating Region

2

Current

• 77,366 MW of generating capacity

• 46,136 MW of peak demand

• 48,930 miles transmission:

• 69 kV – 12,569 miles

• 115 kV – 10,239 miles

• 138 kV – 9,691 miles

• 161 kV – 5,049 miles

• 230 kV – 3,889 miles

• 345 kV – 7,401 miles

• 500 kV – 93 miles

Future (October 2015)

• Adding 3 new members (WAPA, BEPC, and HCPD)

• + 5,000 MW of peak demand

• + 7,600 MW of generating capacity

• 50% increase in SPP’s current hydro capacity

Page 3: SPP’s Operating Region

SPP’s 2013 Energy Consumption and Capacity

3 13.6% annual reserve margin requirement

Capacity Consumption

Page 4: SPP’s Operating Region

5,127

285

0

5,000

(MW

)

Kansas

1,100

78

0

5,000

(MW

)

Arkansas

SPP’s Current Coal Status for 2018

Derated Capacity

Retired Capacity

Remaining Capacity

LEGEND

Page 5: SPP’s Operating Region

5

EPA’s 2030 Goals for States in SPP

1771 1783 1714

1499

741

1479 1544

1048

910 895 883 791

2439 2368 2331 2320

2256 2162

2010

1798 1722

1562 1533 1420

0

500

1,000

1,500

2,000

2,500

3,000

Mo

nta

na

N. D

ako

ta

Wyo

min

g

Kan

sas

S. D

ako

ta

Neb

rask

a

Mis

sou

ri

New

Mex

ico

Ark

ansa

s

Okl

aho

ma

Lou

isia

na

Texa

s

Final Goal Energy Efficiency Renewable Nuclear Redispatch CCs Heat Rate Improvement

*Includes Future States with IS Generation in SPP (N. Dakota, S. Dakota, Montana, and Wyoming)

Fossil Unit CO2 Emission Rate Goals and Block Application (lbs/MWh)

SPP State

Average 2012

Rate = 1,699

SPP State

Average 2030

Rate = 1,045

Page 6: SPP’s Operating Region

6

% Emission Reduction Goals for States in SPP

*Includes Future States with IS Generation in SPP (N. Dakota, S. Dakota, Montana, and

Wyoming)

0

10

20

30

40

50

60

70

80

S. D

ako

ta

Ark

ansa

s

Texa

s

Okl

aho

ma

Lou

isia

na

New

Mex

ico

Kan

sas

Neb

rask

a

Mo

nta

na

Wyo

min

g

N. D

ako

ta

Mis

sou

ri

Total CO2 Emission Reduction Goals (%)

Average of SPP States = 38.5%

Page 7: SPP’s Operating Region

• SPP performed two types of assessments

– Transmission system impacts

– Reserve margin impacts

• Both assessments modeled EPA’s projected EGU retirements within the SPP region and surrounding areas

• Transmission system impact assessment performed in two parts

– Part 1 assumed unused capacity from generators currently available in SPP’s models would be used to replace retired EGUs

– Part 2 relied upon both currently available generation and new generation added to replace retired EGUs

7

SPP’s CPP Impact Assessments

Page 8: SPP’s Operating Region

8

EPA Projected 2016-2020 EGU Retirements (For SPP and Select Neighboring States)

*Extracted from EPA IPM data

**THESE RETIREMENTS ARE ASSUMED BY EPA – NOT SPP!

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

13000

AR KS MO MT ND NE NM OK SD TX IA LA

MW

Coal Steam Oil/Gas Steam CT

Page 9: SPP’s Operating Region

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EPA’s Projected 2016-2020 EGU Retirements (For SPP and Select Neighboring States)

*Excludes committed retirements prior to 2016

**Extracted from EPA IPM data

***THESE RETIREMENTS ARE ASSUMED BY EPA – NOT SPP!

Page 10: SPP’s Operating Region

10

New Generating Capacity Added in Part 2 of SPP’s TSIA

Page 11: SPP’s Operating Region

• Part 1 – “what happens if CPP compliance begins before generation and transmission infrastructure is added”

‒ Extreme reactive deficiencies of approximately 5,200 MVAR across SPP system

‒ Will result in significant loss of load and violations of NERC reliability standards

• Part 2 – “what happens during CPP compliance without additional transmission infrastructure”

‒ Loading on 38 facilities in SPP exceeds equipment ratings

‒ Some overloads so severe that cascading outages would occur

‒ Would result in violations of NERC reliability standards

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Transmission System Impact Assessment Results

Page 12: SPP’s Operating Region

12

Reactive Deficiencies Observed in Part 1 of TSIA

Page 13: SPP’s Operating Region

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Transmission Overloads Observed in Part 2 of TSIA

Page 14: SPP’s Operating Region

• Used current load forecasts supplied by SPP members, currently planned generator retirements, currently planned new generator capacity with GIAs, and EPA’s assumed retirements

• SPP’s minimum required reserve margin is 13.6%

• By 2020, SPP’s anticipated reserve margin would be 4.7%, representing a capacity margin deficiency of approximately 4,600 MW

• By 2024, SPP’s anticipated reserve margin would be -4.0%, representing a capacity margin deficiency of approximately 10,100 MW

• Out of 14 load serving members assessed, 9 would be deficient by 2020 and 10 by 2024

14

SPP Reserve Margin Assessment

Page 15: SPP’s Operating Region

15

Impact of EPA’s Retirements on Reserve Margin

*Includes current load forecasts, current planned generator additions and retirements, and EPA’s

projected retirements

Page 16: SPP’s Operating Region

Transmission Build Cycle in SPP

16

GI Study (12 mo.)

NTC Process

(3-12 mo.)

Construction (2-6 yr.)

Planning Study (12-18 mo.)

TS Study

(6 mo.)

NTC Process

(3-12 mo.)

Construction (2-6 yr.)

3 ¼

yr.

8 ½

yr.

3 ½

yr.

8 ½

yr.

Transmission Planning Process

GI and Transmission Service Process

Page 17: SPP’s Operating Region

• Significant new generating capacity not currently planned will be needed to replace EPA’s projected retirements

‒ EPA projects about 9,000 MW of retirements in the SPP region by 2020 – almost 6,000 MW more than SPP is currently expecting!

• New transmission infrastructure will be needed, both to connect new generation to grid and to deliver energy reliably

‒ Up to 8.5 years required to study, plan, and construct transmission in SPP

‒ Up to $2.3 million per mile for 345 kV transmission construction

• More comprehensive reliability analysis is needed before final rules are adopted

• Sufficient time is needed to comply in a reliable fashion 17

Conclusions

Page 18: SPP’s Operating Region

Lanny Nickell Vice President, Engineering 501-614-3232 [email protected]

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