Evaluation of Production Cost Savings from Consolidation of Balancing Authorities in the US Western Interconnection under High Wind and Solar Penetration

Conference · Wed Dec 24 04:00:00 EST 2014

DOI:https://doi.org/10.1109/SusTech.2014.7046210· OSTI ID:1171899

Nguyen, Tony B.; Samaan, Nader A.; Jin, Chunlian

This paper introduces a comprehensive analysis to quantify the potential savings in production cost due to consolidation of 32 US western interconnection Balancing Authorities (BAs). Three simulation scenarios are developed: current Western Electricity Coordinating Council (WECC) BAs structure, full copper-sheet consolidation, and full consolidation with transmission congestion considered. The study uses WECC Transmission Expansion Planning Policy Committee (TEPPC) model that was developed for the year 2020. The model assumes 8% wind and 3% solar energy penetration as percentage of total WECC demand in 2020. Sensitivity analyses are carried out to assess the impact of transmission hurdle rates between WECC BAs on potential benefits. The study shows savings that ranges from $400 Million (2.4% of total one year production cost) to $600 Million (3.2%) per year in thermal units production cost due to consolidation can be achieved. The copper sheet consolidation scenario shows an extra savings of $240 Million (1.4%) per year.

• Research Organization: Pacific Northwest National Laboratory (PNNL), Richland, WA (US)
• Sponsoring Organization: USDOE
• DOE Contract Number: AC05-76RL01830
• OSTI ID: 1171899
• Report Number(s): PNNL-SA-99913; TE1101000
• Country of Publication: United States
• Language: English

Related Subjects

Balancing authorities
hurdle rates
economic dispatch
consolidation
production cost modeling
security constrained unit commitment