juan c cartagena manager, power resource scheduling may 11th, 2010 iberdrola renewables power...
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Juan C Cartagena Manager, Power Resource SchedulingMay 11th, 2010
Iberdrola RenewablesPower Resource Scheduling
Elk River Wind Power Project, Kansas Elk River Wind Power Project, Kansas
Generation CapacityGeneration Capacity(52% emissions-free)(52% emissions-free)
Gas 19%
Nuclear8%
Traditional Thermal 18%
Hydro23%
Renewables21%
Gas Mexico12%
More than 43,300 MWs of installed capacity More than 43,300 MWs of installed capacity
About Us: Iberdrola Group
33,000 employees in 40 countries33,000 employees in 40 countries
108-year history with roots in hydroelectric
108-year history with roots in hydroelectric
Leading wind producer worldwide with 10 GW installed, 58.4 GW pipeline
Leading wind producer worldwide with 10 GW installed, 58.4 GW pipeline
Strategic focus on US, UK, Latin America and Spain
Strategic focus on US, UK, Latin America and Spain
Installed wind represents 1/12 of the world’s total capacity
Installed wind represents 1/12 of the world’s total capacity
One of the lowest CO2 emissions levels in the electricity sector
One of the lowest CO2 emissions levels in the electricity sector
52%52%
Updated Feb. 24, 2010
Iberdrola Renewables:North American Business
A collection of exceptional assetsA collection of exceptional assets
#2 developer in the U.S. with nearly 3.6 GWs
(1,311 MWs of wind started up in 2009)
#2 developer in the U.S. with nearly 3.6 GWs
(1,311 MWs of wind started up in 2009)
826 employees in 28 U.S. states,DC, India and Canada
826 employees in 28 U.S. states,DC, India and Canada
621 MW of CCGT & peaking capacity on the strategic CA-OR border
621 MW of CCGT & peaking capacity on the strategic CA-OR border
155 BCF of owned & contracted natural gas storage positioned for a volatile future
155 BCF of owned & contracted natural gas storage positioned for a volatile future
U.S. represents 1/3 of earningsU.S. represents 1/3 of earnings
24.5 GWs of wind development pipeline is in the U.S.
24.5 GWs of wind development pipeline is in the U.S.
Wind Power Gas 1,311 MW in‘09 521 MW CCGT
100 MW peaking155 BCF Owned
& Contracted
Updated Feb. 23, 2010
North American Asset Portfolio
Updated March 1. 2010
Wind projects owned or controlled
Gas storage owned
Thermal generation
Biomass cogeneration
Western Wind Assets
Stateline 300 MW
Big Horn 199.5 MW
Klondike24 MW
Klondike II75 MW
Klondike III223.6 MW
Klondike IIIa76.5 MW
High Winds 162 MW
Shiloh150 MW
Dillon 45 MW
Mountain View III 22.44 MW
Twin Buttes75 MW
Colorado Green81 MW
(162 MW Project)
WESTERN REGION
PleasantValley 144 MW
Updated :January 25, 2010
Operating wind projects
Pebble Springs 98.7 MW
Hay Canyon100.8 MW
Dry Lake63 MW
Star Point60.9 MW
Mid-Continent Wind Assets
Updated March 1, 2010
Operating wind projects
MID-CONTINENT MID-CONTINENT REGIONREGION
MinnDakota150 MW
Flying Cloud43.5 MW
Elk River150 MW
Moraine 51 MW
Trimont 101 MW
Winnebago20 MW Providence
Heights72 MW
Top of Iowa II80 MW
Moraine II 49.5 MW
Elm Creek99 MW
Buffalo Ridge50.4 MW
Farmers City146 MW
Penascal202 MW
Barton Chapel
120 MW
Barton160 MW
Rugby149.1 MW
Streator Cayuga Ridge300 MW
Northeast Wind Assets
NORTHEAST NORTHEAST REGIONREGION
Maple Ridge II45.4 MW
(91 MW Project)
Maple Ridge 1115.5 MW
(231 MW Project)
Casselman34.5 MW
Locust Ridge 26 MW
Updated January 25, 2010
Lempster24 MW
Locust Ridge II 102 MW
Operating wind projects
Rae ManseauResource Scheduler
Rae ManseauResource Scheduler
Steve CousenauResource Scheduler
Steve CousenauResource Scheduler
Tara GuilloryResource Scheduler
Tara GuilloryResource Scheduler
Mike PurcellResource Scheduler
Mike PurcellResource Scheduler
Jessica BrizResource Scheduler
Jessica BrizResource Scheduler
Dan TaylorResource Scheduler
Dan TaylorResource Scheduler
VPTim McCabe
VPTim McCabe
ManagerJuan Cartagena
ManagerJuan Cartagena
Resource SchedulingWest / East
Resource SchedulingWest / East
Resource Scheduling – Org Chart
04/10/23 CONFIDENTIAL
9
The Function of Resource Schedulingwithin our Organization
Cash Trading DeskPrompt Month & Dailies•Proprietary Sales & Purchases •Asset Sales and Purchases•Transmission Purchases•Structured Trades•Gas Balancing
Resource DeskDay-Ahead •Scheduling/Pathing•Generation Coordination•Transmission Purchases•Tagging•ISO Scheduling
Forward Trading DeskBOM thru Prompt 2 Cal Years•Proprietary Sales & Purchases •Asset Sales and Purchases•Forward Hedging•Fundamental Based Trading
Hourly DeskIntra-Day•Trading & Marketing•Scheduling/Pathing•Transmission Purchases•Tagging•ISO Bids/Scheduling•Generation Coordination•Transaction Integrity•Gas Balancing
Deal Path
Deal Path
Deal Path
Beginning of our Scheduling Day
10
Signs on Road
11
Frustration Encountered
12
Ending of our Scheduling Day
13
Bunch of Happy Cats
14
04/10/23 CONFIDENTIAL 15
Understanding Transmission & Resource Scheduling
Resource Desk Day0500-0600: Wind forecasts downloaded, scheduled and sent to customers by 0600.
0600-0800: Coordinate transmission, balance positions at all hubs, balance generation assets. Submit MISO intermittent resource schedules .
0800-1200: Create schedules and communicate to counterparties, E-Tags created, Schedules captured in ACES. Submit ERCOT bilateral transactions and resource plan.
0900-1000: Submit CAISO generation trades. Submit APN and PHYS IST transactions.
1000-1400: Transmission & generation schedules are communicated & balanced with BPA, CAISO finals are confirmed.
1400-1500: Real-time folders are prepared, Set-up for next day completed, all day ahead schedules complete by 1500 deadline.
0500 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500Scheduling Timeline
04/10/23 CONFIDENTIAL 16
Understanding Transmission & Resource Scheduling
Deadline Driven Business
Resource scheduling handles over 4.2 million MWhs per month
All power transactions, whether thermal, biomass, or wind, are touched by this group
Anticipate volumes increasing at least 20% Year on Year as Iberdrola Grows Wind and Power Trading businesses
7 day scheduling coverage for CAISO, MISO, and ERCOT
Coordination of schedules with up to 60 counterparties on a daily basis
Support our Realtime Desks with scheduling questions
Regulation & Market Structure
Variable Generation Integration
Laura BeaneManager, Western Market StructureMay 11, 2010
18
Overview
Wind Integration Costs (WIC) are caused by wind’s variability and the difficulty of forecasting its output precisely which drives the need for flexible generation
Historically, the costs associated with integrating wind have been paid by load
Regions with increasing penetration levels of variable generation are starting to re-evaluate the current load-based cost allocation regime and are beginning to allocate integration costs to the generator– Cost-causation reason for allocation shift
Wind Energy’s Impact to the Power System
Wind energy has four characteristics that affect how it is integrated into power systems: its variability its near-zero variable cost the difficulty of forecasting its output precisely its remoteness
These characteristics can be better accommodated in some markets structures than others
The diversity of the US markets has made integration a difficult and fragmented effort
Wind Penetration LevelsCurrent Estimate of Installed Wind Capacity as a Percentage of Peak Load
30 %
6 %
7 %
13 %
5 %
2 %
4 %1 %
Regions that have moved or are moving toward allocating WIC to generators
Source: Ventyx
21
FERC NOI on the Integration of Variable Energy Resources FERC’s recent NOI solicited comments on virtually all aspects of integration of
variable resources Data & Forecasting Scheduling Flexibility Scheduling Incentives Day-Ahead Market Participation Reliability Commitments Balancing Authority Coordination Reserve Products & Ancillary Services Capacity Markets Real-time Adjustments
Iberdrola Renewables submitted comprehensive comments addressing each of the subject areas
The NOI may lead to a rulemaking to establish a policy framework to ensure integration is addressed consistent with the principles of the Federal Power Act
Wind Integration Solutions
HighCost
LowCost
Source: UWIG
Low Wind Penetration Level
High Wind Penetration Level
Markets
Additio
nal
Flexible
Generation
Wind
C
urtailment
Storage
Accessing Intra-hour flexibility
Price Responsive Load
Demand Response
Dynamic Scheduling
Simple Cycle GT
Combined Cycle GT
In Range of 1-2%
Pumped Storage
Batteries
Flywheels
SMES
CAES
Capacitors
PHEV
A
ccurate
Forecasting
Real time forecasting
Centralized Forecasting
• IBR is working to encourage regions to exhaust solutions on the lower half of cost curve before moving to the next solution.
Wind Integration in ISO/RTO Markets
ISO/RTO markets have more favorable integrations characteristics that can better accommodate higher penetrations of wind generation at lower integration costs
– Large electric balancing area with access to neighboring markets– Robust electric grid– Short-term electricity generation markets– Access to Flexible generation and load
However, dysfunctional ISO/RTO markets, such as MISO, could result in increased exposure to wind integration cost at lower penetration levels
– MISO has a high concentration of transmission constrained wind generation (ND, SD, MN)– Examples of dysfunction that could result in emerging wind integration costs include:
• Large concentrations of wind not responding to LMP price signals creating negative LMPs• Interconnections do not address deliverability constraints• Increase in Minimum Generation Events resulting from a supply surplus that result in requests to
reduce output from generators – wind curtailment
Merchant projects could have significant exposure to emerging WIC charges in ISO/RTO markets.
Optimal Wind Integration Conditions
Large electric balancing area with access to neighboring markets– Wind integration costs are significantly lower in large balancing areas– More opportunity for excess generation in one region to be offset by shortfalls in
generation in another region– Larger pool of flexible resources to accommodate variations in electric supply or demand
Robust electric grid– Allowing power flows to neighboring regions requires robust regional interconnections
Short-term electricity generation markets– Shorter dispatch and scheduling windows capture time periods when wind power is
relatively constant (ten-minute intervals) instead of periods when generation may be inconsistent (sixty-minute intervals).
– In regions with hourly markets, significant deviations in wind output over an hour are often accommodated through regulation services, which are expensive
– Since RTOs and Independent System Operators (“ISOs”) often operate both sub-hourly markets, they do not have to rely on expensive regulation services to respond to output variations and thus, typically have lower integration costs.
Optimal Wind Integration Conditions, Cont.
Access to Flexible generation and load– Systems with more flexible generators, i.e. hydro and natural gas, tend to
have lower integration costs
Effective integration of wind forecasts into utility operations– Reliable wind forecasts allow system operators to significantly reduce their
uncertainty about future wind output, thereby lowering the amount of reserves they need to hold to accommodate variations in wind output
Flexible transmission services– Conditional Firm service
– Dynamic line ratings
Northwest Integration Solution
Self-Supply Pilot Program
BPA 2009 Rate Case Outcomes
$5.89/MWh WIC rate Reduced level of allocated operating reserves based on assumed improvements to
scheduling accuracy
Enforcement of Persistent Deviation penalties
Implementation of Phase II of Dispatcher Standing Order 216 (DSO-216) October 1, 2009 BPA implemented DSO-216 to:
– limit wind generation to the scheduled value when there is insufficient DEC balancing reserves available to offset the over-generation of wind
– curtail wind plant’s schedules/e-Tags when their actual generation output is less than their scheduled amount and there are insufficient INC balancing reserves available to offset the under-generation of wind
BPA unbundled the WIC into the three separate categories of reserves to allow customers the option of providing all reserves or a portion of reserves
Regulation Reserves – reserve required to balance error every 4 seconds Following Reserves – reserve required to balance error every 10 minutes Generation Imbalance Reserves – reserve required to balance error outside of 10-
minute window through the balance of the hour
Option for generators to self-supply imbalance reserves
27
Self-Supply Pilot Introduction
Iberdrola Renewables is the only wind generator that has elected to self-supply Generation Imbalance Reserves
Regulation Reserves and Following Reserves will continue to be purchased from BPA
Because Iberdrola is choosing to self-supply only a portion of the balancing reserves, no Balancing Authority (BA) certification is required as BPA will continue to provide the second-to-second balancing of Iberdrola’s generation portfolio
Iberdrola Renewables self-supply program will initially be implemented as pilot program with both parties given the option to discontinue if the program proves to be unworkable
The pilot has a target implementation date of August 1, 2010 and will continue through September 2011
28
Self-Supply Pilot Structure
Today, all if Iberdrola Renewables’ plants are scheduled on an individual basis
Under self-supply all of Iberdrola Renewables northwest wind resources will be aggregated into a single signal and schedule and will be measured on a net basis
BPA will allocate a portion of Regulation and Following reserves to Iberdrola’s generation portfolio and Iberdrola will be responsible to self-supply generation imbalance reserves to resolve any remaining error between the net schedule and net output of the portfolio
Klamath Cogeneration/Peaking facilities will be utilized to provide a portion of the needed INC and DEC to keep Iberdrola’s portfolio balanced
Iberdrola has entered into contractual relationships with dispatchable resources to provide additional INC and DEC capability
29
Self-Supply Diagram
30
Net Actual
Net Schedule
BPA Balancing Authority
K3a
Iberdrola’s Self-Supply Portfolio
Hay Canyon
K1
K3
K2
StarPoint
Big Horn I & II
Stateline
Klamath Cogen
Juniper Canyon
Pebble Springs
PortfolioError
Other ContractedResources
(External to BPA’s BA)Other Contracted
Resources
U.S. CORE
Constellation EnergyAGC Infrastructure
Self-Supply Balancing Illustration
31
-400
-300
-200
-100
0
100
200
300
400
11
:00
a.m
.
10
:00
p.m
.
12
:00
p.m
.
1:0
0 p
.m.
2:0
0 p
.m.
3:0
0 p
.m.
4:0
0 p
.m.
5:0
0 p
.m.
6:0
0 p
.m.
7:0
0 p
.m.
8:0
0 p
.m.
9:0
0 p
.m.
Portfolio Error(Schedule vs. Actual)
Allocated ReserveBand from BPA
Error that must beBalanced underSelf-supply(i.e. the companymust move resourcesto keep the PortfolioError within the band)
Legend
MW
s
Constellation Energy Control & Dispatch
Iberdrola has engaged Constellation Energy Control & Dispatch (CECD) to provide consulting services and Automatic Generation Control (AGC) infrastructure
CECD provides balancing services for 15 Balancing Authorities across the United States including the nation’s first wind-only Balancing Authority
BPA’s willingness to move forward with the pilot program largely stemmed from their confidence in Constellation’s ability to leverage their experience and successfully balance our portfolio
Constellation’s Responsibilitieso Respond on a 4-second basis to the Portfolio Error
Execute dispatch of resources per resource stack– Klamath Cogen & Peakers– External contractual resources– Wind resources
o Monitor and respond to applicable compliance parameters
o Report all aspects of self-supply portfolio Tracking of exercise of external resources Generation Imbalance accounts Compliance with performance parameters
32
Self-Supply Timeline
May 2010: BPA Wind Portfolio Netting Target Implementation Will apply to DSO-216 Should lower curtailment/limit risk
August 1, 2010: Self-Supply Pilot Implementation
33
December2009
August2010
September2011
Self-Supply Pilot Period
Self-Supply PilotImplementation Date
BPA LaunchesSub-hourly Scheduling
October2010
New WIC Rate in EffectDSO-216 Implementation
May2010
Wind Portfolio NettingTarget Implementation
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