Planning for Renewable Energypeople.ece.umn.edu/groups/wind/windworkshop2006/Skarbakka - Uo… ·...

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1 Planning for Renewable Energy Glen Skarbakka Great River Energy Workshop on Renewable Energy for Minnesota October 12, 2006

Transcript of Planning for Renewable Energypeople.ece.umn.edu/groups/wind/windworkshop2006/Skarbakka - Uo… ·...

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Planning for Renewable Energy

Glen SkarbakkaGreat River Energy

Workshop on Renewable Energy for MinnesotaOctober 12, 2006

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Great River Energy Overview

A Generation & Transmission Cooperative28 Member Distribution Cooperatives600,000 Distribution CustomersLong term growth rate ~3%Summer peaking (~2600 MW)

2005 Energy Growth

0-2%8%+

6-8%

4-6%

2-4%

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1200 MW

1200 MWJune - July

GRE is very summer peaking

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GRE’s Supply Portfolio

CapacityEnergy

CoalGasOilWindHydroRDFPurch

*nameplate rating

*

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GRE Generating Facilities

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Wind Power Purchases

<2005: 3 x 6 MW projects = 18 MW2005: Trimont = 100 MW2007: High Prairie = 100 MW

High Prairie

Trimont

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0%

2%

4%

6%

8%

10%

12%

14%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% o

f Ene

rgy

PlannedExist & CommittedREO

GRE is meeting MN's Renewable Energy Objective

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Coping with growth

100 MW / yr

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Environment

Reliability Cost

Planning Objectives

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Environmental Targets

By 2020:Supply 20% of energy with renewablesReduce CO2 emissions to 2000 levels

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The olden days: a physical world

GRE Member Loads

GRE Generators

GRE Gen=

GRE Load

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Midwest ISO

Operates transmission and energy markets.

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Today: a financial world

MISO

GRE Member Loads

MISO MidwestIndependent System Operator

GRE Generators GRE Gen≠

GRE Load

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Market Prices: temporal volatility

($50)

$0

$50

$100

$150

$200

$250

$300

$350

7/31/06 8/1/06 8/2/06 8/3/06

LMP

$/M

Wh

GRE.GREReal-time LMP

Monday WednesdayTuesday

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Market Prices: spatial volatility

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Wind Site Value: Cost v. Revenue

Wind Resource→ Cost of Wind

Market Price (LMP)→ Revenue from Wind

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Queued Generating Projects

3443 MW

10,978 MW

12,572 MW

MISO Generator Interconnection Queue 9/26/06

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Wind Development Issues

SitingEnergy ValueGeographic diversityTransmission availability

TimingTransmission interconnection arrangementsFederal Production Tax Credit deadlines

CostEquipment & installation

TechnicalEquipment reliability (long term)Wind integration / ancillary services

Project SizeEconomies of scale v. small developer preference

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Other renewables

BiomassWaste streams

Municipal wasteWaste woodAg wasteLandfill gas

Energy cropsSwitchgrass, trees, etc.

Co-firing

HydroSolar

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20Saline-Filled

Basalt Formations

Saline-Filled Sedimentary Formations

MajorBit and SubbitCoal Basins

Depleting Oil Fields

Depleting Gas

Basins

Existing Coal PlantsAnnounced Coal Plants

Other ways to reduce CO2

CO2 capture & sequestration

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Other ways to reduce CO2

CO2 capture & sequestrationImproved power plant efficiencies"Energy Factories"

Combined heat and powerpower production <--> industrial process

Coal to liquids or syngas

Distributed Gasification Combined CycleNuclearPoint of use generationConservation!

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Glen Skarbakka

[email protected]

763-241-5775