1 / 20

Emerging Issues Policy Forum November 10, 2009

Emerging Issues Policy Forum November 10, 2009. Gordon van Welie President & CEO ISO New England Inc. . The Foundation of New England’s Power System. Full complement of competitive markets provide transparent price signals for investment in supply and demand resources

king
Download Presentation

Emerging Issues Policy Forum November 10, 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Emerging Issues Policy ForumNovember 10, 2009 Gordon van Welie President & CEO ISO New England Inc.

  2. The Foundation of New England’s Power System Full complement of competitive marketsprovide transparent price signals for investment in supply and demand resources An open, robust planningprocess identifies system needs and needed transmission infrastructure Active engagement of the six states State and Federal government requirements and incentives help promote the development of clean resources and grid technologies © 2009 ISO New England Inc.

  3. New Generation Additions in New England10,500 MW added since 1999; plus 3,500 MW committed for 2010-2012 FCM  ■ New Supply Cleared through FCA-1, 2, 3 © 2009 ISO New England Inc.

  4. Growth in Demand Resources in RegionCapacity Market Promotes Growth FCM  © 2009 ISO New England Inc.

  5. Transmission Investment Throughout the Region Reliability projects create a foundation for “economic transmission” • Southwest CT Phase I • SWCT Phase II • NSTAR 345 kV Project, Phase I and II • Northwest Vermont • Northeast Reliability Interconnect • Monadnock Area • New England East-West Solution • Southeast Massachusetts • Maine Power Reliability Program 9 5 4 6 In service 3 Under construction Under study 7 8 ~$4 Billion in service ~$5 Billion in planning, siting and under construction 1 2 © 2009 ISO New England Inc.

  6. Growing RPS & Energy Efficiency TargetsRenewables comprised approximately 13% of energy in 2008 50,000 45,000 40,000 Other Renewables 35,000 New RPS 30,000 25,000 GWh 20,000 Existing RPS 15,000 10,000 Energy Efficiency/CHP 5,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year 30% 11.7% © 2009 ISO New England Inc.

  7. Renewable Power in Development Queue Wind is most promising renewable, but commercialization is slow © 2009 ISO New England Inc.

  8. Challenges for the Region • Integrating new resources and technologies • Demand resources in the near term • Wind and smart-grid technologies in the long term • Cost allocation for transmission • Mechanism exists for reliability projects • No agreement yet on large scale “economic/renewable” projects • Planning to meet environmental goals

  9. New England Governors Adopt Long-term Renewable Energy Vision States’ Blueprint as guiding policy and regulatory framework ISO economic study as technical support © 2009 ISO New England Inc.

  10. New England’s Economic Study Approach -- A Model for National Planning • “Scenario analysis” of varying levels of renewable development • Up to 12,000 MW of onshore and offshore wind • Wind site screening • Imports, demand resources, plug-in electric vehicles, energy storage • Long-term horizon: approx. 20 years in the future (around 2030) • Retire and repower units in service for 50 / 60 / 70 years • Deploy new technologies • Sensitivity analysis • Policymakers approve study assumptions © 2009 ISO New England Inc.

  11. Study Results – Lots of Information to Guide Decisions • Economic metrics: • Wholesale energy prices and emissions allowance prices • Production costs • Transmission cost estimates • Environmental metrics: • SOx, NOx and CO2 emission levels • Comparison of scenarios based on: • Renewable energy produced • Energy produced by fuel type i.e. from gas, wind and coal, etc. • New circuit-miles of transmission and transmission costs estimates © 2009 ISO New England Inc.

  12. Study Conclusions: Large Wind Resources Remote from Demand, But Transmission is Possible • Population and electricity demand concentrated in southern New England • Wind resources do not overlap with high energy demand areas • New “backbone” transmission needed • Many options available Electricity Demand Wind zones © 2009 ISO New England Inc.

  13. Transmission to Connect Offshore and Inland Wind Appears Cost-Effective Relative to Other Options • Potential transmission to connect 4,000 MW of offshore and 1,500 MW of inland wind • New 345 kV line from Maine to Connecticut • New HVDC underwater cable from Maine to Boston • Local loops to collect wind in Maine • Achieves 12% renewable energy for the region • Preliminary cost estimate: $6 billion

  14. Transmission Pathways to Connect Renewable-Rich Areas in Eastern Canada A Logical Option • Potential new transmission ties to Quebec and New Brunswick • Import 1,500 MW via new +/-450 kV HVDC line from Southern Quebec • Import 1,500 MW via new +/-450 kV HVDC line from New Brunswick • Preliminary cost estimate: $3.5 billion © 2009 ISO New England Inc.

  15. Transmission Overlay to Connect Significant Onshore and Offshore Wind Also Possible • New higher voltage backbone loop around New England • Could New England become a net exporter of renewable power? • What makes economic sense? • Policymakers and regulators the ultimate decision makers ■ ■ ■ ■ New 500 kV or 765 kV by 2030 ■ ■ ■ ■ New 345 kV by 2030 ■ ■ ■ ■ 115 kV Upgrades by 2030 © 2009 ISO New England Inc.

  16. National Transmission from Midwest Sources Has Significant Uncertainties N. Dakota: 1,800 miles Québec: 250 mi. New Brunswick: 500 mi. Boston Hydro Wind © 2009 ISO New England Inc.

  17. New intra-regional transmission also needed to deliver imports from the Midwest • New 500 kV or 765 kV backbone loop from New York-New England border to load centers in southern New England • Preliminary cost estimate: • Reinforcements needed in New England $5B - $11B plus • Midwest to New England $160 Billion • New England’s share of this could be as high as $36 Billion © 2009 ISO New England Inc.

  18. Governors’ Blueprint Findings: New England States’ Committee on Electricity • New England States’ Committee on Electricity (NESCOE), September 2009 “New England has essential elements in place to help bring our cost-effective, secure, low carbon resources to market.” • Natural resources • Technical analysis to inform policy choices • Cooperative experience and authority to do more • Statutory flexibility • Mutual state and national interest in increasing renewable power © 2009 ISO New England Inc.

  19. New England Supports Interconnection-wide Planning That Builds on Regional Planning • Planning authorities submit bid to U.S. DOE for “Eastern Interconnection Planning Collaborative” • Analysis and scenarios using regional plans as foundation • “Bottom-up” approach ensures New England characteristics, including Governors’ Blueprint and off-shore wind potential, are considered • 40 states submit companion bid to take participate in EIPC, consult on scenarios and assumptions © 2009 ISO New England Inc.

  20. Conclusion New England is actively planning for its energy future Efforts to address challenges must continue Federal and state actions will greatly impact the outcome © 2009 ISO New England Inc.

More Related