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This article provides an overview of NERC's evolution towards a culture of compliance, the importance of organized and bilateral markets, and the challenges and opportunities in transmission planning. It also discusses the need for transmission growth and the role of smart grid applications in the future.
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The Transmission Imperative November 3, 2011 Jay Caspary
Overview • NERC’s Evolution to Today’s Culture of Compliance • Organized and Bilateral Markets • No Standard Market Design • Regional Planning is working and improving • Interregional Planning in process • Smart Grid Applications for Transmission in Future
Electric Reliability Organization Canada NEB, Alberta, British Columbia, Manitoba, Ontario, New Brunswick, Nova Scotia, Quebec, and Saskatchewan United States Federal Energy Regulatory Commission Mexico ComisionReguladora de Energia Reliability Standards Government Oversight Compliance Enforcement Electric Reliability Organization Regional Entities Reliability Assessment Other ERO Members Bulk Power System Owners, Operators, Users
Regions and Interconnections NERC Reporting Areas = Subregions 2010 Reporting Areas Based on Load/Capacity Areas defined by NERC Subregions
Need for Transmission High levels of variable generation will require significant transmission additions and reinforcements. • Challenge • Interconnect variable energy resources in remote areas • Smooth the variable generation output across a broad geographical region and resource portfolio • Deliver ramping capability and ancillary services from inside and outside a Balancing Area to equalize supply and demand. • Construct/site/permit the needed transmission and supporting facilities to deliver power across long distances.
Transmission… • represents only a fraction of a consumers total energy bill (5-10%) • enables and defines markets • can no longer be an undervalued asset since it provides tremendous benefits in reducing congestion costs, improving value of diverse/variable resources, enhances grid efficiencies and dynamic performance • is aging infrastructure in existing ROWs that could provide tremendous value and capability as it is replaced and rightsized, where appropriate
Merchant Developers like Clean Line are Proposing Large HVDC Projects
US 500 kV and above AC plus HVDC Transmission FERC Order 1000
Future in SPP • Renewable development beyond member needs of 12GW in SPP will depend on level of exports. While focus to date has been wind, solar will be next, then… • Asset management with aging infrastructure will be a challenge. Effective use of new and existing ROWs will be key success factor • Future is bright with more robust planning and certainty of cost allocations, but we need smart grid applications to minimize renewable curtailments in advance of grid build-out and to manage flows using new technology, e.g., HVDC, as well as system reconfiguration/ optimization tools
So…where are we going? • ITP in process, Integrated Marketplace in place 1Q14 • EIPC Federal Futures project >100GW wind in SPP • Customers have requested dozens of Firm Transmission Service Requests with more than 7GW of wind exports from SPP to SERC, with firm/contingent firm service on adjacent systems. Most under study, with few granted • SPP reviewing through and out rates which should help potential rightsizing of facilities in a key corridor or two • Compliance filings for FERC Order 1000 for regional and interregional planning due October 2012 and April 2013, respectively