wind energy in the national electricity market · some wind turbine designs: – may cause voltage...
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© CEEM 2006
Wind Energy in the National Electricity Market
2Wind energy in the NEM © CEEM 2006
OutlineStochastic renewable energy resourcesIntermittent generation- definition & issuesTrends in wind farm installations in AustraliaPlanning issuesNetwork-related issues Power variability issues– Forecasting; spot & derivative markets
Commercial viability of wind farms in the NEM
3Wind energy in the NEM © CEEM 2006
Stochastic renewable energy resourcesRenewable energy (RE) fluxes are time-varying:– Solar, wind, hydro (tidal), biomass, geothermal, wave– They can be be partially predicted
RE resources are often non-storable & publicly owned:– There may be a public role in their prediction
Generators transform RE resources to electrical energy:– Generators are often privately owned & operated
Risk issues associated with stochastic RE:– Traditional electricity industry relies on storable primary energy– Non-storable stochastic RE introduces a new set of risks due to:
Spatial distribution of RE fluxes (shared risks)RE generator performance (individual & shared risks)Security & market impacts (shared risks)
4Wind energy in the NEM © CEEM 2006
Wind farms as “intermittent generation”National Electricity Rules (NER) define intermittent generation as:– “A generating unit whose output is not readily
predictable, including, without limitation, solar generators, wave turbine generators, wind turbine generators and hydro generators without any material storage capability”
Issues identified by NEMMCO:– Forecasting; Frequency Control Ancillary Services
(FCAS); voltage control; management of network flows
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The power in the wind
Doubling the wind speed increases the power eightfoldbut doubling the turbine area only doubles the power.
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Australian wind resource(Estimate of background wind (m/s) – AGO)
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Antarctic vortex strengthening & shrinking, taking
rainfall south(ABC TV, 18/9/03)
The drought risk: rainfall in Australia, 2002 What about wind? (WMO Annual Report 2002)
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Comparing AusWEA forecast (www.auswea.com.au) & readily acceptable (RA) wind capacity for Australia
8900500500500220031002100RA MW
193010028012003008013Total MW
132067220800207620App MW
6102967400921713Inst MW
AusWATasSAVicNSWQld
9Wind energy in the NEM © CEEM 2006
Australian wind farm planning
AusWEA best practice guidelines:– www.auswea.com.au
Stages in the process (AusWEA guidelines):– Site selection; feasibility; detailed assessment,
development application; construction; operation; decommissioning
State handbooks & planning protocols:– Project-based, some variations between states
Australian conditions favour large wind farms connected at high voltage
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Australian wind farm planning experience to date
Limited experience to date:– Some strong support, some strong opposition
Mixed federal, state & local government approvals process lacks coherence:– Project based - may not manage cumulative issues &
interactions wellOther industries have a comprehensive planning framework, eg:– Strong, state-based planning framework for the
minerals industry
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Network issues for wind farms #1Networks are shared, centrally planned resources:– Must limit network disturbances caused by wind farms– Wind farms must survive disturbances from the network
Renewable resources are often distributed differently from fossil fuel resources:– Weak network conditions likely to be more common in
Australia & New Zealand than Europe or North AmericaNetwork must be built to carry peak flows:– Want good estimates of aggregation & seasonal effects
Benefits of staged development of wind resources:– Network savings; reduced voltage & frequency impacts
12Wind energy in the NEM © CEEM 2006
Network issues for wind farms #2Wind turbine starting & stopping transients:– Severity can be alleviated by:
Soft-startHigh wind-speed power-management
Some wind turbine designs:– May cause voltage distortions:
Harmonics &/or transients
– May have poor power factor, eg:Uncompensated induction generator
– May not ride-through system disturbancesTemporary voltage or frequency excursions
– However, wind turbine technology is rapidly improving
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Wind turbine type comparison(Slootweg & Kling, 2003, http://local.iee.org/ireland/Senior/Wind%20Event.htm)
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Size of wind turbines used by Western Power (www.wpc.com.au)
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Network connection issues & examples
Approximate ability of a transmission line to accept a wind farm:– 66kV ≤ 20MVA– 132kV ≤ 100MVA– 330kV ≤ 200MVA– Constraints may be determined by several factors:
Thermal, voltage, fault clearance, quality of supplyThermal ratings depend on line temperature & wind speed
Relevant wind farm rating is its maximum output, not the sum of turbine rated powers:– Coincident output of the connected wind turbines
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Connection costs to 330kV(Transgrid, 2002)
15028.32004
18017.71002
65012.9201
2,50012.751
Conn.cost$/kW
Conn. cost $MTotal wind MW
Wind farm number
Important to capture economies of scale of grid connection
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SA wind regions with existing transmission access (green)Still potential impacts on existing generation & interconnector rating
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SA regions with limited transmission access (yellow)
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Eyre Peninsula Backbone network upgrade to support 500MW wind
(Meritec, 2002)
Estimated cost of 275kV backbone upgrade: $140M or $280/MW assuming equally shared by 500MW of wind.
Wind may not have to pay full cost of backbone upgrade.
Approx. 500 km
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Managing supply-demand balance in the electricity industry
Frequency is a measure of supply-demand balance:– always varying due to fluctuations in the power flows
associated with particular devices– Wind energy is only one of many fluctuating power flows
Thermalpower stations
Wind farms
Hydrogenerators
Industrial
Commercial
Residential
Generator input power Load electrical powerplus network losses
+ _
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Future state space managedby decentralised decisions
Managing system security in the NEM
Possible futures managedby decentralised(market-based) decisions
Possiblefuturesmanaged bycentraliseddecisions
Presentstate
Growing uncertainty
Time
5 min
Unreachable orunacceptable
futures
Emergency control
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NEMMCO concerns about wind energy (NEMMCO, 2003)
Frequency control in normal operation:– Frequency regulating service costs ~5 $/MWH
Security control - largest single contingency– Will wind farms ride-through disturbances?
Interconnection flow fluctuations:– Exceeding flow limit may cause high spot price
Forecast errors due to wind resource uncertainty:– Five minute dispatch forecast (spot price)– Pre-dispatch & longer term (PASA & SOO) forecasts
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Simulated dispatch with 500MW wind in SA(Oakeshott, 2005)
0
500
1,000
1,500
2,000
2,500
3,000
19/1
2/20
02 1
9:30
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2/20
02 0
1:30
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2/20
02 0
7:30
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02 1
3:30
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9:30
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02 0
1:30
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02 0
7:30
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2/20
02 1
3:30
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02 1
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2/20
02 0
1:30
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02 0
7:30
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02 1
3:30
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2/20
02 0
1:30
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2/20
02 0
7:30
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2/20
02 1
3:30
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2/20
02 1
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2/20
02 0
1:30
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2/20
02 0
7:30
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2/20
02 1
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2/20
02 1
9:30
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2/20
02 0
1:30
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2/20
02 0
7:30
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2/20
02 1
3:30
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2/20
02 0
1:30
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2/20
02 0
7:30
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2/20
02 1
3:30
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2/20
02 1
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2/20
02 0
1:30
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2/20
02 0
7:30
27/1
2/20
02 1
3:30
27/1
2/20
02 1
9:30
28/1
2/20
02 0
1:30
28/1
2/20
02 0
7:30
28/1
2/20
02 1
3:30
28/1
2/20
02 1
9:30
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2/20
02 0
1:30
29/1
2/20
02 0
7:30
29/1
2/20
02 1
3:30
29/1
2/20
02 1
9:30
Ladbroke OSB-AG Northern PLAYB-AG PPCCGT Torrens B Torrens A Quarantine Total Wind Load Total Wind24Wind energy in the NEM © CEEM 2006
1000 MW wind, SA: 1% likelihood variation (ESIPC, 2005)
1 per day
1 per week
1 per month
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Western Power’s proposed wind penalty charge (c/kWh) (Western Power, 2002)
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Demand forecast errorsSouth Australia,2004 Q4 (NECA, 04Q4 Stats, 2005)
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Spectral analysis of Danish long-term wind data (17 years of data)
Spectral gap between weatherand local turbulence phenomena
(Sorensen, 2001, Fig 2.110, p194) 28Wind energy in the NEM © CEEM 2006
Forecasting the output of wind farms30 minute horizon (FCAS & spot market):– Turbulence spectrum - likely to be uncorrelated for
turbines spaced > 20 km:Then % power fluctuations ~ N-0.5
– eg for 100 identical wind farms spaced >20 km apart, %fluctuation in total power ~ 0.1x%fluctuation for 1 farm
30 minutes to ~3 hours:– ARMA model may be best predictor of future output
> 3 hours - NWP model may be best predictor:– Key issue: predicting large changes in output of
appropriate groups of wind farms
29Wind energy in the NEM © CEEM 2006
SOO & ANTS (to 10 years)
30Wind energy in the NEM © CEEM 2006Forecasts are for individual wind farms & specified groups of wind farms
NEMMCO AWEFS spec. (www.nemmco.com.au)
60sec10min735daysDailyWeekly10%, 50% & 90%
MT PASA
60sec<3min8days30min30min10%, 50% & 90%
ST PASA
60sec<3min2-3days30min30min10%, 50% & 90%
Predisp
90sec<30sec24x 5min5 min5min50%Predisp
40sec<10sec15min5min50%Dispatch
LeadtimeTime to produce
No. of intervals
ResolutionFrequencyPOEPurpose
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2-hour prediction for Lake Benton wind farm, USA138 turbines, 103.5MW, hourly data (Hirst, 2001)
Two-hour ahead prediction of wind power:MWPred(T+2) = 2.7 +0.9xMW(T) + [MW(T) - MW(T-1)]
32Wind energy in the NEM © CEEM 2006
Combined output of 2 wind farms 80 km apart (Gardner et al, 2003)
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Cross-correlation function between the output powers of 2 wind farms 80 km apart (Gardner et al, 2003)
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Cross-correlations between measured power outputs of German wind farms
(Giebel (2000) Riso National Lab, Denmark)
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Predicting the output of a wind turbine 6, 12, 18, 24, 36 & 48 hours ahead (Focken et al, 2002)
48 & 36 hr predictions: Front timing ok but not magnitude
48 & 36 hr predictions: Front timing later than actual
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Wind power scenario forecasting(Jende, 2005)
Actual: ----
Aust Govt is spending $15m ona wind power forecasting system to facilitate high levels of wind power penetration
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S1: Infra-red satellite map (BoM Aust,1125 UTC 24/4/05)
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CSIRO WindscapeTM model (www.clw.csiro.au/products/windenergy)
Windscape derives location-specific wind forecasts from a Numerical Weather Prediction model
(Steggle et al, CSIRO, March 2002)
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• Windscape predictions of annual mean wind speed at 65 m, showing nested model results
• More rapid changes in colour probably imply higher local turbulence
(Steggle et al, CSIRO, March 2002)
40Wind energy in the NEM © CEEM 2006
SEDA NSW Wind atlas(www.seda.nsw.gov.au)
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Hampton Wind Farm, NSW (2x660 kW Vestas, connected to different 11 kV feeders)
3 Second data being collected
Turbulence probably fairly high at this site
Induction generatorsmay not ride throughvoltage dips well.
42Wind energy in the NEM © CEEM 2006
Issues for NEM spot marketWind farms will operate as “price takers”:– Generate whenever wind is blowing
NEM spot market prices are volatile with a “rectangular” price distribution:– Prices are usually low, sometimes high– Timing of high prices not easily predicted
Value of wind energy in the spot market:– Will depend on how regularly wind farms are
producing when spot prices are high
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Price-demand plots for NEMregionsNSW (top) & SA (bottom)Jan-Mar 2004
($/MWH vs MW)(NECA, 04Q1 Stats, 2004)
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Smoothed NEM Regional Ref Prices (RRPs) since market inception (NECA, 04Q4 Stats, 2005)
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Annual average RRP flat contract prices (NECA, 04Q4 Stats, 2005)
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Forward prices for wind energyWind farms may have to accept a lower price than “flat contract” due to uncertainty in production: – Daily– Seasonal, – Annual
(Giebel (2000) Riso National Lab, Denmark)
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Renewable Energy Certificate Prices (A$/MWH) (Offer, 2003)
20
25
30
35
40
45
50
55
60
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202048Wind energy in the NEM © CEEM 2006
Wind farms marginal at $70/MWH(PWC, 2002)
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Conclusions on wind energy in the NEMBrings new challenges for electricity industry restructuring (technical, market design, regulation)Network connection issues:– Wind energy distributed differently from fossil fuels
Planning issues - visual & bird impacts:– Regional, rather than project specific
Forecasting & system security issues:– Regional, rather than project specific
Wind not competitive on NEM electricity price:– Requires additional income from selling Renewable
Energy Certificates (RECs) but now fully subscribed50Wind energy in the NEM © CEEM 2006
Many of our publications are available at:www.ceem.unsw.edu.au