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New Challenges Facing System Operators. Stephen G. Whitley President & Chief Executive Officer New York Independent System Operator Past Present and Future of the Power Grid A Cornell University workshop in honor of Robert J. Thomas Ithaca, NY August 9, 2012. Topics. Growth of the Grid
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New Challenges Facing System Operators Stephen G. Whitley President & Chief Executive Officer New York Independent System Operator Past Present and Future of the Power Grid A Cornell University workshop in honor of Robert J. Thomas Ithaca, NY August 9, 2012
Topics • Growth of the Grid • Renewable Resources • Demand Response • Advancing Technology • Regional Collaboration
Pearl Street Station distribution area, New York, Image 69231, Electricity & Modern Physics Collection. National Museum of American History - Smithsonian Institution Growth of the Grid 1882 Pearl Street Station 59 customers 600 kW of generation 10.5 miles of main lines 2012 New York Control Area 7 million electric utility customers 43,000,000 kW of generating capacity, transmission capability & demand-response 11,000 circuit-miles of high-voltage transmission
Looking Ahead • Integrating Renewable Resources • Empowering Consumers • Advancing Technology • Enhancing Collaboration
Wind Power • 2006 – NYISO exempts wind from undergeneration penalties as a variable energy resource • 2008 – NYISO establishes centralized wind forecasting system established • 2009 – NYISO integrates wind into Economic Dispatch system (First in nation) • Growing wind in NY… • Wind-powered generating capacity in NY grew from 48 MW in 2005 to 1,414 MW in 2012 • Another 4,000 MW of wind projects proposed for interconnection to NY grid
2009 -- NYISO implements first market rules in US enabling storage systems to participate in the markets as frequency regulation providers Energy storage complements development of variable energy resources Energy Storage • NY’s Energy Storage Firsts… • First commercial grid-scale battery-based storage system to operate as a generator in the US • First full-scale flywheel energy storage facility to provide frequency regulation service in the US
Solar Power • 2012 – NYISO exempts solar power from under-generation penalties to compensate solar fully for all energy production • Future – Market evolution for solar resources likely to parallel wind power initiatives • Grid-scale solar in NY… • The largest photovoltaic array in the eastern US is the 32-MW Long Island Solar Farm at Brookhaven National Laboratory – completed in Nov. 2011
Shaving the Peak July 2011 heat waves could have pushed demand to over 35,000 MW -- a new record peak -- had DR programs not served to reduce load by more than 1,400 MW Estimated Load without DR Actual Load with DR
Dynamic Pricing Impact of Dynamic Pricing on Hourly Loads • NYISO/Brattle Group Study • Dynamic pricing can encourage shift to off-peak usage • Potential 10-14% reduction in system peak • Market-based customer cost reductions of 2-5% 10
Smart Grid • Smart Grid Investment Grant (SGIG) • Three-Year project -- $74 Million (DOE SGIG funding of $37 Million to cover 50% of project cost) • Project components • Creation of a statewide Phasor Measurement Network • Installation of Capacitor Banks • Enhanced reliability • PMU Installation one of key DOE recommendations from 2003 blackout study endorsed by FERC and NERC
NYISO Infrastructure • New state-of-the-art primary control center in a facility adjacent to existing corporate center • Renovation of 42-year-old power control facility to serve as alternate control center Existing Corporate Center New Primary Power Control Center
Regional Collaboration • Broader Regional Markets • Address “seams” between regional markets and grid operations • Collaborative effort - NYISO, PJM Interconnection, Midwest ISO, ISO- New England, Ontario’s Independent System Operator and Hydro Quebec • More frequent scheduling can facilitate better regional integration of variable, renewable resources
Interregional Planning • Eastern Interconnection Planning Collaborative • 25 electric system planning authorities in U.S. and Canada representing 95% of Eastern Interconnection • Grassroots effort to integrate local planning interconnection-wide
The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. www.nyiso.com