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DNV KEMA KERMIT OverviewERCOT Joint Regional Planning Group / Long Term Study Task ForceAustin, TXJuly 13, 2012

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Agenda

Introduction to DNV KEMA

Overview of Moment to Moment Balancing

Introduction to KERMIT

Review of ERCOT KERMIT Project

Details of KERMIT and Demo

Discussion

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Agenda

Introduction to DNV KEMA

Overview of Moment to Moment Balancing

Introduction to KERMIT

Review of ERCOT KERMIT Project

Details of KERMIT and Demo

Discussion

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The DNV Group

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10,400employees

300offices

100countries

DNV KEMA Energy & Sustainability offers innovative solutions to customers across the energy value chain, ensuring reliable, efficient and sustainable energy supply, now and in the future.

2,300+ experts across all continents

KEMA and DNV combined: a heritage of nearly 150 years

Headquartered in Arnhem, the Netherlands

Offices and agents in over 30 countries around the globe

DNV KEMA Energy & Sustainability

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One company serving the needs of the energy market place

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Business and technical consultancy, expert advice, operational services

Testing, inspections, certification, verification

Risk, performance, and quality management

Research & innovation

Markets and RegulationRenewables Services and integration AnalysisCarbon ServicesWholesale Energy Market DesignRetail Energy Market Services and Competitive DesignRegulatory and Energy Policy ManagementStrategic and Analytical Services

Operational ExcellenceTrading, Retail and Market ProcessesMeter-to-Bill-Operations  Organizational ConsultingIT Advisory

Power Systems and OperationsControl System Operations System expertise in SCADA, EMS, DMS, OMSPower Delivery Operations AnalysisOperations benchmarking, best practices, Control Room design

Operational TelecommunicationsUtility Network DevelopmentCommunication Network Architecture and Design Communication Protocol testingCommunication Protocol test softwareIntegrated Network Management Systems DevelopmentSystems Security Planning, Architecture, & TestingMarket Entry and Evaluation

Smart Technology Deployment (Smart Grid)Utility AMI DevelopmentHome Area Networks Consumer DevelopmentInteroperability Testing of Systems Security Planning Architecture  

Service OfferingsProviding unique insight leveraging cross regional experience

Markets 3.0

Operations 3.0

Smart Grid 3.0

• Provide thought leadership in wholesale and retail convergence, and micro-grid modeling

•Lead in future design of energy planning and delivery with DR/DG multi-d. power flow

•Identify business improvement and process optimization across utility business lines

•Lead in SG Technology optimization, business case and interoperability (2.0-3.0)

Networks 3.0

•Lead in network design and cyber security services to drive OT within a smart grid

Excellence3.0

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DNV KEMA Markets and Regulation Consulting- Renewables Services

- Market opportunities in growing solar market (DG and utility scale solar PV and CST)

- Financial and technical due diligence capabilities- Wholesale Energy Markets

- ISO/RTO Services around Markets 3.0- Focus on Renewables Integration studies leveraging KEMA’s

KERMIT model - Strategic and Analytical Services capabilities in US- Modeling tools and capabilities, i.e. PLEXOS

- Retail Energy Markets- REM strategic services- Multi – Client projects - Forum - Provides executives a knowledge sharing forum- Customized analytically and benchmarking services- Business Strategy Consulting

- Regulatory Services- Regulatory Strategy Development- Compliance Services, Legislative Policy Analysis- Financial Modeling & Business Case Preparation- Testimony Support, Expert Testimony, Position Papers- Evaluation of RPS Requirements / Renewables Strategy- Feed-In-Tariff Designs- Federal Information Collection Requests (ICRs)

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Agenda

Introduction to DNV KEMA

Overview of Moment to Moment Balancing

Introduction to KERMIT

Review of ERCOT KERMIT Project

Details of KERMIT and Demo

Discussion

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Introduction to Moment to Moment Balancing For any period of time, the amount of electricity produced must be the same as the electricity

consumed- Necessary to keep the frequency at 60 Hz- If more power is generated than is being consumed, then frequency increases above 60 Hz- If less power is generated, the system frequency decreases below 60 Hz

Loads are not constant- System operators can not control when a homeowner will turn lights on or off- As a result, system operators vary the output of generators to “balance” a system

Generation is not constant, either –- Variable energy resources (wind, solar) fluctuate- Plants can have outages or variations

Generation providing regulation and balancing services must account for the difference- System operators use generators to compensate for variability in their system- Governors provide automatic “primary” response, regulation provides controlled “secondary” response

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Systems use generators to compensate for variability in a system to keep it stable

What is AGC?

Regulation is provided by Automatic Generation Control (AGC)- AGC makes use of Reg Up and Reg Down services to control system frequency

AGC is designed to control system frequency within operational limits- Signals are sent every 4 seconds to generators based on ACE- AGC measures a system deviations from:

- System frequency (60 Hz)- In a control area that is interconnected as in a control area within WECC, interchange schedules are

also part of Area Control Error - ERCOT controls frequency (only)

The goal is to minimize frequency error to be within a given deadband

Ideally regulation up / down is a net zero energy product. The Real-time Market is used to reset the regulation market every 5 minutes.

In ERCOT, regulation is provided on a capacity bases and regulation providers are paid to reserve capacity on their Resources to provide this service

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Regulation Up/Down Service

Regulation helps ERCOT deal with second-to-second demand changes

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Shaded portion is what must be met

by Regulation

Agenda

Introduction to DNV KEMA

Overview of Moment to Moment Balancing

Introduction to KERMIT

Review of ERCOT KERMIT Project

Details of KERMIT and Demo

Discussion

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Overview of KERMIT

Developed using two software platforms:- Matlab / Simulink for performing simulations- Microsoft Excel for entering data and post processing / analysis of results

What is KERMIT?- KEMA’s Renewable Market Integration Tool- Originally developed to study how integrating large penetrations of renewable power affects

sub-hourly operations

KERMIT has expanded in scope and is now a tool for systems to examine operational strategies for handling variability in their system

This includes:- Renewable integration studies- Automatic generation control design and development- Evaluating the benefits of increased storage deployment- Analysis support for federal and ISO/RTO policy development

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KERMIT Time Scales of Focus

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1 msecond 1 day 1 month 1 year1 hour10 minutes1 minute1 second1 cycle

HarmonicsProtection

Stability

Frequency responseRegulation

Balancing

Capacity

Economics

Transient and harmonics analysisShort circuit analysis

· PSS/E· DigSILENT

AGC and balancing· KERMIT

Production costingMarket simulationSystem planning

· ProMod· GE MAPS

Overview of KERMIT Architecture

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Inputs:LoadPlant SchedulesGeneration PortfolioGrid ParametersMarket/Balancing

Outputs:Power Plant MW OutputsArea InterchangeFrequency Deviation

Scenarios:Increasing Wind Adding ReservesStorage ParametersTest AGC ParametersTrip Events

KERMIT 24h Simulation

Generation•Conventional•Renewable

Inter-connection

FrequencyResponse

Real Time Market

Generator trip

Load rejection

Wind power forecast versus actual

Volatility in renewable resources

Key Elements of KERMIT Detailed IEEE standard dynamic models of a variety of generation types including:

- Steam (coal or gas fired)- Combined cycle gas turbine- Combustion turbine- Wind,- Storage- Hydro, and - General distributed generation resources.

Representation of generator governors, combustion and turbine controls – especially for primary frequency response and response to dispatch/regulation controls

Models of generation company portfolio dispatch and scheduling

Models of ISO real-time dispatch and AGC systems. It is also possible (and has been done) to precisely represent specific ISO AGC algorithms.

Representation of the dynamic frequency response of system load and second by second load and variable energy resource volatility.

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Key Elements of KERMIT (2) Power system inertial response to generation-load imbalance including load dynamic response

and generator primary frequency response

Simulation of system frequency

Models of the interconnected control areas (when such exist) including a DC change to AC losses and models of inter-area regions with transmission constraints- Load flow and swing angle simulation- The load flow dynamically simulates transmission path flows among control areas as the relative phase

angles of the interconnected control areas respond to local and system generation–load imbalance caused by load variations, wind/solar variation, outages, etc.

- KERMIT has also been used successfully in island systems that do not have synchronous interconnections.

Representation of day-ahead hourly interchange and generation scheduling, load forecasting, and forecast errors. Hourly ramping behavior is also captured.

And many more modules…

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Our goal was to include and model all sources of variability and uncertainty in a system

Agenda

Introduction to DNV KEMA

Overview of Moment to Moment Balancing

Introduction to KERMIT

Review of ERCOT KERMIT Project

Details of KERMIT and Demo

Discussion

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Overview of Project Requirements Deliver a tool to ERCOT capable of analyzing ERCOT’s system resources to:

- Ensure adequate grid reliability; - Maintain system frequency within current NERC standards; - Provide for timely replacement of lost resources due to unit outages or unit variability; - Adequate control for risks due to unforeseen future occurrences in the real-time operations time-frame- Study future scenarios of renewable and conventional generation portfolio development and assess the

ability of the market and system to manage inherent variability in renewables- Study hypothetical changes in scheduling and market time frames, for example

DNV KEMA will develop:- A calibrated version of KERMIT for ERCOT’s system, market configuration, - Two future scenarios that ERCOT can use for the Long Term Study- New demand response modules for KERMIT to reflect potential future market participants

In addition, DNV KEMA will help support ERCOT in their KERMIT analyses to help ensure the objectives of ERCOT’s Long Term Study are met

DNV KEMA will train ERCOT staff and provide knowledge transfer to enable ERCOT to utilize KERMIT independently if desired, or to enable ERCOT own development of enhanced models, control algorithms, etc.

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Study Benefits of Utilizing KERMIT

The primary benefit will be to support the long term resource planning/assessment process especially around adequacy of reserves and regulation capacity.

This includes:- The ability to examine and verify adequate ancillary service requirements- Ensuring real time dispatch solutions and use of regulation products are feasible and reliable- Testing future alternative market products or policy requirements for their effect on

transmission flows

The results of KERMIT analyses help ensure that future resource portfolios will provide sufficient flexibility for system dispatch and operations, including reserves and regulation, especially wrt managing renewable variability.

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Project Team

Principal in Charge – Ralph Masiello / Jeff Bladen

Project Manager / Technical Expert – Dr. Warren Katzenstein

KERMIT Technical Expert – Dr. Khoi Vu

System Modeling Expert – Alan Roark

System Modelers / KERMIT Experts- James Hansell- Sudipta Lahiri- Andrew Stryker

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Agenda

Introduction to DNV KEMA

Overview of Moment to Moment Balancing

Introduction to KERMIT

Review of ERCOT KERMIT Project

Details of KERMIT and Demo

Discussion

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Agenda

Introduction to DNV KEMA

Overview of Moment to Moment Balancing

Introduction to KERMIT

Review of ERCOT KERMIT Project

Details of KERMIT

Demo

Discussion

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Global presence DNV KEMA

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HEAD OFFICEArnhem, The Netherlands