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“Making Energy Work” Renewable Energy Portfolio & Reliability Panel North Carolina Sustainable Energy Association February 3, 2009

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Presentation to State, Federal agenices, small businesses and such to discuss transmisson and the reliability of the grid.

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Page 1: Renewable Nc

“Making Energy Work” Renewable Energy Portfolio

& Reliability Panel

North Carolina Sustainable Energy Association

February 3, 2009

Julia A. Souder

Page 2: Renewable Nc

About NERC: Mission

Develop & enforce reliability standards

Assess current and future reliability

Analyze system events & recommend improved practices

Encourage active participation by all stakeholders

Pursue mandatory standards across North America

To ensure the reliability of the North American bulk power system

Page 3: Renewable Nc

2007 & 2008 Emerging Issue Recap

Page 4: Renewable Nc

Current Climate Initiatives

40 U.S. States and all Canadian Provinces are involved in some form of climate change initiative.

Page 5: Renewable Nc

Key Objective: Address Fuel Switching

Early retirements & environmental dispatching of coal plants reduces available capacity

Gas delivery concerns

Gas as base load generation

Past Capacity Announcements vs. Actual Implementation

U.S. Coal-Fired Generation

Page 6: Renewable Nc

Key Objective: Support Transmission

Climate objectives cannot be fulfilled without focus on transmission

“Clean Energy Superhighway” needed

System planning must take a “continental” view

Source: EPRI & NREL

Wind Availability Compared to Demand Centers

Note:o Blue indicates areas with high wind potential, o Brown indicates large demand centers, and o Green indicates areas with little wind potential and smaller demand centers

Page 7: Renewable Nc

Transmission Needed

Figure 6: NERC-Wide Total Existing and Planned Lines: MVA-1000 Miles

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2007

2017

2007

2017

2007

2017

2007

2017

2007

2017

2007

2017

2007

2017

2007

2017

ERCOT FRCC MRO NPCC RFC SERC SPP WECC

MV

A-M

iles

(T

ho

usa

nd

s) All DC

AC765kV

AC500kV

AC345kV

AC230kV

Assumed MVA Capacity 230 kV = 700 MVA 345 kV = 1,300 MVA 500 kV = 2,000 MVA 765 kV = 3,000 MVA ALL DC = 2,000 MVA

NERC-Wide Total Existing & Planned Lines: MVA-1000 Miles

Page 8: Renewable Nc

Key Objective: Demand-Side Resources

Manage Demand Growth

Integration of Variable Generation

US Peak Demand (1994-2017)

500,000

550,000

600,000

650,000

700,000

750,000

800,000

850,000

900,000

950,000

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

Year

Me

gaw

att

s

U.S. peak demand projected to grow by 17% by 2018

Page 9: Renewable Nc

Key Objective: Decision on U.S. Policy

Regulatory certainty needed to enable resource development

Can result in great improvements

• New generation technologies

• Diversified fuel mix

• Strengthened & “smarter” grid

Page 10: Renewable Nc

Wind Projected to Grow

145,000 MW of wind to be added in coming 10 years

Recommendations:

• Flexibility

• Forecasting

• Transmission

Figure 5: Projected Increase in Existing, Planned & Proposed Summer On-Peak Wind Capacity

11.5%

17.2%

13.4%

19.6%

13.1%

26.4%

19.9%19.9%

8.7% 8.7% 9.1%

15.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

2008

2017

2008

2017

2008

2017

2008

2017

2008

2017

2008

2017

2008

2017

2008

2017

ERCOT FRCC MRO NPCC RFC SERC SPP WECC

MW

0%

5%

10%

15%

20%

25%

30%

Existing Planned Proposed % of Expected-Peak Wind Capacity to Nameplate Capacity

Page 11: Renewable Nc

2008/09 Winter Wind Generation Grows

Projected Winter WindTotal Nameplate Capacity

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

ERCOT FRCC MRO NPCC RFC SERC SPP WECC

MW

Existing Planned Proposed

Projected Winter WindTotal Nameplate Capacity

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

ERCOT FRCC MRO NPCC RFC SERC SPP WECC

MW

Existing Planned Proposed

Capacity available on peak ranges from 8.7% to 26%

Page 12: Renewable Nc

Modernized Grid – Integration Key

“Smart Grids” can support reliability

Variable Resources

Demand response

Large deployment of sensor & automation technologies

Innovative applications of electricity

Flexibility

Cyber-Security vital

Page 13: Renewable Nc

Components to the Intelligent Network – Many are focused in vertical silos

Circuit Transformers AMI Load Management

Capacitor Bank Monitoring

Predictive Maintenance Security (Video/Audio) Load Management OMS/DMS Broadband over Power

Lines Advanced SCADA Mesh networks

Voltage Monitoring Outage Detection Theft Detection Asset Failure Alarms Smart substation High Temperature

Superconducting (HTS) Cables

Underground Transmission

HTS Transformers

Real-Time Metering TOU/CPP Pricing Outage Monitoring Voltage Monitoring

Smart switch Smart thermostat Real-time DLC

management and verification

Load profiling Aggregation of curtailed

load

Generation

Wind Solar Geothermal Hydro Biomass Biofuels Carbon capture Nuclear Carbon cap and trade Storage technology Capacitors

Consumer Portal

Page 14: Renewable Nc

Integration of Variable Generation Task Force (IVGTF) Scope

Task Force will prepare: • Concepts document: philosophical

& technical considerations

• Recommendations: practices, requirements & reliability standards

Document will include:• Planning timeframe issues

• Operational Planning and Real-time Operating timeframe issues

• Review NERC Standards for gaps

• Review of future developments: i.e. storage, EHV

• Conclusions and recommendations

Page 15: Renewable Nc

Smart, Modern Grids and Reliability

Planners can• Maintain Future Bulk Power System Reliability

• Change how they design grids

Operators can• More control

• Manage variability/uncertainty

• Pre-position systems

Regulators can• Implement formulas for cost allocation/cost recovery

• Provide certainty & support transmission infrastructure siting, planning, construction

• Flexible on innovative planning

Educators/policy makers can• Promote reliability as incorporating all components “fis”

flexibility- integration- smart

• Tell story with all pieces

Page 16: Renewable Nc

Emerging Issues

Emerging Issues Risk Evolution:

Consequence

Lik

elih

oo

d

High

HighLow

Greenhouse Gas

Reductions

Fuel Storage &

Transportation

Rising Global Demand for

Energy & Equipment

Increased Demand-Side & Distributed

Generation Resources

Transmission of the 21st Century

Limited Water

Availability

Mercury Regulatio

n

1-5 Years6-10 Years

Page 17: Renewable Nc

Reliability Themes

Interoperability

• Smart and Flexible

• Regulatory Certainty

Diverse Fuel Supply

Demand Side Resources

Interconnectivity

• Renewables and Transmission

Page 18: Renewable Nc

Thank you

[email protected] American Electric Reliability Coordination

Director, Inter-Governmental Relations, 202-393-3998