IWWG Annual Conference
description
Transcript of IWWG Annual Conference
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IWWG Annual Conference
Wind Management at MISO
July 22, 2011
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MISO Overview
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Growth of MISO’s value creation
1996
Discussions begin to form MISO
First Board of Directors elected
FERC approvalas an RTOReliability Coordination
Tariff Administrationunder MISO OATT
Energy Markets Begin
2001
Ancillary Services Market Initiative begins
Joint Operating Agreement with PJM
Balancing Authority AlignmentASM Testing
ASM begins
2002
2003
2005
2006
2007
2009
1999
FERC issues order 2000
FERC orders 888/889
FERC issues order 890
Legislative Timeline1996 20071999
Start-UpReliability Coordination & Tariff Administration Energy Markets
Energy and Ancillary Services Markets (ASM)
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MISO Overview
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MISO Reliability Coordination Area, June 2011
• Independent• Non-profit• 2001 - Reliability Coordinator• 2005 - Energy Markets• 2009 – Ancillary Services• Large Footprint
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Scope of Operationsas of June 1, 2011
• Generation Capacity
– 134,850 MW (market)
– 146,497 MW (reliability)• Historic Peak Load
(set July 31, 2006)
– 116,030 MW (market)
– 136,520 MW (reliability)
• 53,203 miles of transmission
• 12 states, 1 Canadian province
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• 5-minute dispatch
• 1,966 pricing nodes
• 5,774 generating units in the network model
• ~ $27.5 billion per year settled in energy markets (2010)
• 368 market participants serving 40+ million people
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MISO Market Footprint
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As of June 2011
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2010 Value Proposition
$221-$244
$121-$134
($254)
$280-$350
$322-$482
$68-$75
1Figures shown reflect annual benefits and costs expected for20102These benefits will be realized when the load / supply balance narrows3Adjusted total net benefits exclude benefits driven by load / supply balance
Benefit by Value Driver1
(in $ millions)
$136-$151
$12-$19$54-$68
Market – Commitment and Dispatch
$259-$323
Generation Investment Deferral
Demand Response
$1,253-$1,634
Imp
rove
d
Rel
iab
ility
1
$34-$42
Dis
pa
tch
of
Ene
rgy
2
Unl
oa
de
d C
apa
city
3
Reg
ula
tion
4
Spi
nn
ing
R
ese
rve
s
5
Win
d
Inte
gra
tion
6
Fo
otp
rin
t D
ive
rsity
7
Gen
erat
or
Ava
ilabi
lity
Impr
ovem
ent
8
Dyn
am
ic
Pric
ing
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Dire
ct L
oad
Con
trol
- In
terr
uptib
les
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MIS
O C
ost
Str
uctu
re
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To
tal N
et
Ben
efit
s
Benefits Driven by Load / Supply Balance2
Adj
ust
ed
T
ota
l Ne
t B
ene
fits3
$648-$8743
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Wind Development
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Wind Generation in Midwest ISO Market
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Transmission Congestion
• High penetration of wind generation in areas that have historically had little generation
• Rapid development of wind has outpaced the associated transmission development– Who pays to expand the transmission system?
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How Does this Impact Operations?
• Original market design classified wind as an ‘Intermittent Resource’ and could not economically dispatch
• In areas with high wind penetration, it is difficult for the Security Constrained Economic Dispatch (SCED) to manage congestion with only dispatchable resources
• Reliability Coordinators must resort to manual curtailment of wind resources adversely impacting constraints
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2010 vs. 2011
2009 Total 2010 Total 2011 YTD
No of Wind Curtailments 1,141 2,117 996Estimated MWh Curtailed 292,000 824,000 289,000Duration (Hours) 8,005 19,951 7,447
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Operational Concerns
• While Manual Curtailment of Wind is effective as a constraint mitigation option, it has several drawbacks:– Highly manual process, and extremely time consuming for the
Reliability Coordinator– Tracking of Resources with Firm vs. Non-Firm Transmission
service is time consuming– The Manual Curtailments can not be accounted for in the
Security Constrained Economic Dispatch (SCED), therefore there is loss of price transparency
– Manual Curtailments are generally less economically optimal as the automated SCED
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Intermittent Resource in MISO Market
MW
Time
XX:00 XX:05 XX:10 XX:15
0
10
15
20 Interval Dispatch Target
Actual Resource Output
UDS will issue a DispatchTarget Equal to observedoutput at the time of theState Estimator snapshotfor that case.
Intermittent Resources- Cannot make RT economicoffers
- Cannot set price
- Subject to RSG
- Not Eligible for Make Whole Payments
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What is Dispatchable Intermittent Resource?
• DIRs are treated much the same as other Generation Resources with one exception:– Instead of using an hourly Economic Max offer, DIRs must
submit a ‘Forecast Limit’ for each 5-minute interval. The UDS will use this Forecast limit as the Economic Max for the given interval.
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DIR Examples
MW
Time
XX:00 XX:05 XX:10 XX:15LMP = $50 LMP = $52 LMP = $35 LMP = $46
0
10
15
20
Dispatch Interval Forecast
Interval Dispatch Target
Actual Resource Output
MW
Time
XX:00 XX:05 XX:10 XX:15LMP = $50 LMP = -$40 LMP = -$55 LMP = -$40
0
10
15
20
Dispatch Interval Forecast
Interval Dispatch Target
Actual Resource Output
Unconstrained Nearby Congestion
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IWWG Annual Conference
Wind Management at MISO
July 22, 2011