iso new england overview · 2011. 1. 20. · iso new england’s core responsibilities....
TRANSCRIPT
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ISO New England Overview
Michael S. Giaimo, ISO New England William Ferdinand, Eaton PeabodyJanuary 20, 2011 Augusta, Maine
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About ISO New England & Regional Grid
ISO New England • Private not-for-profit • Regulated by FERC• Created in 1997 • Independent of companies doing
business in market• Located In western Massachusetts
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ISO New England Control Area Includes all
New England states
Excludes northern portion of Maine
Note: Map not to scale
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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New England’s Electric Power SystemA Complex and Tightly Integrated System
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400 miles650 km
320 miles520 km
• Population 14 million• 6.5 million residents/businesses• > 350 generators• > 5000 demand assets• > 8,000 miles high-voltage
transmission• 13 interconnections• > 31,000 MW of total supply • > 2,500 MW of demand resources• All-time peak demand of 28,130 MW
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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ISO New England’s Core ResponsibilitiesInterconnected and Interdependent
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1. Operate the Power SystemMinute-to-minute reliable
operation of region’s generation and transmission system
2. Administer Wholesale Electric Markets Oversee region’s wholesale marketplace for energy, capacity and reserves
3. Power System
PlanningEnsure reliable and
efficient power system to meet current and future
power needs
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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ISO’s Major Responsibilities1. Operate the Power System
– Maintain minute-to-minute reliable operation of region’s power grid
– Perform centralized dispatch of the lowest-priced resources
– Coordinate operations with neighboring power systems
2. Administer Wholesale Electric Markets– Administer New England's wholesale electricity markets
• Energy, Capacity and Reserves
– Internal and external market monitoring
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ISO’s Major Responsibilities
3. Power System Planning– Administer requests for
interconnection of generation, and regional transmission system access
– Conduct transmission system needs assessments
– Develop 10-year transmission plan to ensure a reliable and efficient power system if market responses do not fully address system needs
6ISO New England Briefing: Joint Energy, Utilities & Technology Committee
January 20, 2011 © 2011 ISO New England Inc.
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Regional Success a Function of Stakeholder Participation
NESCOE
New England
Governors’ Conference
NEPOOL Participants
Consumer Advocates & Attorneys
General
Consumer Liaison Group
NECPUC
• Comprehensive stakeholder involvement and participation has helped region achieve success– Six states and market
participants actively engaged in regional stakeholder process
– Competitive markets stimulate investment in transmission, generation and demand resources
– More efficient and cleaner generation developed
– New transmission allows for economic dispatch
7ISO New England Briefing: Joint Energy, Utilities & Technology Committee
January 20, 2011 © 2011 ISO New England Inc.
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Transmission Projects Maintain Reliability $4 Billion invested since 2002, $5 Billion on horizon
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4
5
12
7
9
8b
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101. Southwest CT Phase I2. Southwest CT Phase II3. NSTAR 345 kV Project, Phases I & II4. Northwest Vermont5. Northeast Reliability Interconnect6. Monadnock Area7. New England East-West Solution8. Southeast Massachusetts
a. Short-term upgradesb. Long-term Lower SEMA Project
9. Maine Power Reliability Program10.Vermont Southern Loop
In service
Under construction
Under study
DOE highlights progress in New EnglandIn the Energy Policy Act of 2005, Congress directed the U.S. Department of Energy to conduct a study every three years
on electric transmission congestion and constraints.
In its latest (2009) study, DOE dropped New England from its list of “Congestion Areas of Concern” citing the region’s
success in developing transmission, generation, and demand-side resources.
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ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Regional Transmission Cost Allocation
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ME 8.6%
NH 9.1%
VT 4.2%
CT 25.6%
RI 6.9%
MA 45.6%
Percent of 2009 Network Load by State
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Demand Resources Growing in New EnglandMaine among leaders in DR activity in region
CT 930
VT 148
MA 1,379
NH 129
ME 444
RI 231
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Capacity(MW)
FCM
2010/11–2013/14: Total DR cleared in FCAs 1–4 (New and Existing); Real-Time Emergency Generation capped at 600 MW.
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Enrollment in ISO programs prior to start of FCM
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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New Generation Additions in New England10,800 MW added since 1999; plus 3,600 MW committed for 2010-2014
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2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Capacity (MW)
Annual Additions Cumulative Additions
FCM
■ New Supply Cleared for FCAs 1–4
1111ISO New England Briefing: Joint Energy, Utilities & Technology Committee
January 20, 2011 © 2011 ISO New England Inc.
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New England Capacity by Fuel TypeSummer 2010
Natural Gas13,181 41%
Oil, 6,866 , 21%
Nuclear4,629 15%
Coal2,756 9%
Pumped Storage1,679 5%
Hydro1,712 5%
Other1,142 4%
Total: 31,965 MW
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Source: RSP10. Values shown in megawatts (MW) and percent (%). “Other” includes landfill gas, other biomass gas, refuse, wood and wood waste, wind, and misc. fuels.
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Electricity Prices Follow Natural Gas PricesNatural Gas represents approximately 42% of region’s energy
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Real-Time LMP Natural Gas Price
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Average Day-Ahead Wholesale PricesMaine traditionally lowest average Day-Ahead and Real-Time wholesale prices in the region
0102030405060708090
Hub CT ME RI VT NH SEMA WCMA NEMA
2007 2008 2009 2010 (Jan-Nov)
$/M
Wh
Average Day-Ahead Wholesale Prices
14ISO New England Briefing: Joint Energy, Utilities & Technology Committee
January 20, 2011 © 2011 ISO New England Inc.
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Shift in Region’s Fuel Mix
• New highly efficient natural-gas-fired generators have displaced use of fuel oil
• Generator emissions rates have declined over the past decade– SO2 rate 67%– NOX rate 62%– CO2 rate 12%
21.8% 42.4%
14.8%
0.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2009
Sources of Energy
Other
Hydro
Pumped storageCoal
Nuclear
Oil
Nat. Gas
15ISO New England Briefing: Joint Energy, Utilities & Technology Committee
January 20, 2011 © 2011 ISO New England Inc.
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Regional Fuel Mix Will Continue to Change
• Generation fleet in region getting older – Currently over 8,600 MW of
generation are 30+ yrs old
• Factors that may expedite plant retirements:• Transmission improvements • Energy Efficiency• Demand Resources• Natural gas • Renewables
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Age as of 2030 Total MW of Coal and Oil Units
> 50 years old 8,600> 60 years old 4,300> 70 years old 1,200
Looking Forward
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Hydro, 33, 1%
Biomass, 431, 13%
Landfill Gas, 34, 1%
Wind, 2836, 85%
MW Renewables in January 2011 Queue by Fuel Type
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Renewable Projects Proposed by Fuel Type+3,300 MW of Renewables in ISO Queue, Wind dominant fuel
Includes: Landfill Gas, Hydro, Wind , Solar and Biomass. Pump Storage projects in the ISO Queue are not included.
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Renewable Projects Proposed by State
MA, 719, 21%CT, 38, 1%
NH, 356, 11%
VT,222, 7%
RI, 598, 18% ME Hydro, 6, 0%
ME Wind, 1336, 40%
ME Biomass, 60, 2%
Maine, 1400, 42%
MW Renewables in January 2011 Queue
REGION MAINE
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Includes: Landfill Gas, Hydro, Wind , Solar and Biomass. Pump Storage projects in the ISO Queue are not included.
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Renewable Resources Remote from Demand Transmission development can help stimulate renewables
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Wind zones
Electricity Demand
• Population and electricity demand concentrated in southern New England
• Wind resources do not overlap with high demand areas
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Maine State Specific Information
• Represents approximately 9% of the region’s population; and represents 9% of region’s energy use
• ISO forecasts, on average over next decade– Overall electricity demand will annually grow
• .9%; consistent with .9% regional average– Peak electricity demand will annually grow
• 1.5%; slightly above 1.4% regional average
• Natural Gas and Oil represent approximately– 60% of regional generation capacity and 70% of Maine’s capacity
20ISO New England Briefing: Joint Energy, Utilities & Technology Committee
January 20, 2011 © 2011 ISO New England Inc.
http://www.google.com/imgres?imgurl=http://pursuitmag.com/wp-content/uploads/2010/08/maine.jpg&imgrefurl=http://pursuitmag.com/maine-licensed-private-investigators-association-mlpia-to-host-annual-seminar-in-portland-me/&usg=__SFC6-4BI42PQy_rbcK08DXFEvvI=&h=333&w=500&sz=49&hl=en&start=8&zoom=1&itbs=1&tbnid=I82WZRS_bJ_MiM:&tbnh=87&tbnw=130&prev=/images?q=maine&hl=en&sa=N&tbs=isch:1
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Maine’s Supply, Demand, and Fuel Mix
Natural gas 45%,
Oil, 26%
Hydro, 18%
Other, 11%
1914 MW
2315 MW
0
500
1000
1500
2000
2500
3000
3500
4000
2010 Generating Capacity
2010 Actual Peak Demand
2019 Projected Peak Demand
3400 MW
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11% of regional generating capacity
ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011
© 2011 ISO New England Inc.
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Looking forward …
• Region has benefited from regional system planning and competitive markets– Expanded transmission development– New generation and demand resources– Economic and environmental benefits
• Region has strong renewable potential – Additional transmission may be required– The addition of renewables may accelerate the retirement of older
fossil-fired generation– States will decide renewable policies
22ISO New England Briefing: Joint Energy, Utilities & Technology Committee
January 20, 2011 © 2011 ISO New England Inc.
ISO New England Overview�About ISO New England & Regional Grid �New England’s Electric Power System�A Complex and Tightly Integrated SystemISO New England’s Core Responsibilities�Interconnected and InterdependentISO’s Major ResponsibilitiesISO’s Major ResponsibilitiesRegional Success a Function of Stakeholder Participation�Transmission Projects Maintain Reliability �$4 Billion invested since 2002, $5 Billion on horizon �Regional Transmission Cost AllocationDemand Resources Growing in New England�Maine among leaders in DR activity in regionNew Generation Additions in New England�10,800 MW added since 1999; plus 3,600 MW committed for 2010-2014New England Capacity by Fuel Type�Summer 2010Slide Number 13Average Day-Ahead Wholesale Prices�Maine traditionally lowest average Day-Ahead and Real-Time wholesale prices in the regionShift in Region’s Fuel MixRegional Fuel Mix Will Continue to ChangeRenewable Projects Proposed by Fuel Type�+3,300 MW of Renewables in ISO Queue, Wind dominant fuelRenewable Projects Proposed by State Renewable Resources Remote from Demand �Transmission development can help stimulate renewables�Maine State Specific InformationMaine’s Supply, Demand, and Fuel Mix�Looking forward …