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Title: Balancing Authority Cooperation Concepts to Reduce Variable Generation Integration Costs in the Western Interconnection: Consolidating Balancing Authorities and Sharing Balancing Reserves

Abstract

The study described in this chapter demonstrates the benefits of BA consolidation with the help of a detailed WECC system model and advanced methodology, which is also described in this chapter. The study aims to determine the potential savings in production cost and reduction in balancing reserve requirements in the WECC system. The study has found that effective use of the diversity in load and variable generation over a wide area can indeed help to achieve significant savings. The implementation cost for the consolidation was beyond the scope of this study. The analysis was performed for two different scenarios of VG penetration: 11% (8% wind and 3% solar) and 33% (24% wind and 9% solar) of WECC projected energy demand in 2020. In analysis of balancing reserves, the objective was to determine the reduction in balancing reserve requirements due to BA consolidation, in terms of required capacity and ramp-rates. Hour-ahead and 10-minute ahead forecast errors for load, wind, and solar were simulated. In addition, 1-minute resolution load, wind and solar data were used to derive balancing reserve requirements i.e. load-following and regulation requirements for each individual BA and for the consolidated BA (CBA). The reduction in balancing reserves was determinedmore » by calculating the difference between total reserve requirements that need to be carried by different BAs if they operate individually, and reserve requirements that need to be carried by the CBA. The study results show that the consolidated WECC system would have about a 50% overall reduction in balancing reserves for the 11% penetration scenario and a 65% reduction for the 33% penetration scenario in comparison with total reserve requirements that need to be carried by different BAs if they operate individually.« less

Authors:
; ; ;
Publication Date:
Research Org.:
Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Sponsoring Org.:
USDOE
OSTI Identifier:
1361987
Report Number(s):
PNNL-SA-126264
EB2502010
DOE Contract Number:
AC05-76RL01830
Resource Type:
Book
Resource Relation:
Related Information: Integration of Large-Scale Renewable Energy into Bulk Power Systems, 189-226
Country of Publication:
United States
Language:
English
Subject:
Balancing authority; balancing authorities consolidation; cross correlation; wind forecast error; renewable integration; variable generation; Production Cost Modeling

Citation Formats

Samaan, Nader A., Makarov, Yuri V., Nguyen, Tony B., and Diao, Ruisheng. Balancing Authority Cooperation Concepts to Reduce Variable Generation Integration Costs in the Western Interconnection: Consolidating Balancing Authorities and Sharing Balancing Reserves. United States: N. p., 2017. Web. doi:10.1007/978-3-319-55581-2_6.
Samaan, Nader A., Makarov, Yuri V., Nguyen, Tony B., & Diao, Ruisheng. Balancing Authority Cooperation Concepts to Reduce Variable Generation Integration Costs in the Western Interconnection: Consolidating Balancing Authorities and Sharing Balancing Reserves. United States. doi:10.1007/978-3-319-55581-2_6.
Samaan, Nader A., Makarov, Yuri V., Nguyen, Tony B., and Diao, Ruisheng. Sun . "Balancing Authority Cooperation Concepts to Reduce Variable Generation Integration Costs in the Western Interconnection: Consolidating Balancing Authorities and Sharing Balancing Reserves". United States. doi:10.1007/978-3-319-55581-2_6.
@article{osti_1361987,
title = {Balancing Authority Cooperation Concepts to Reduce Variable Generation Integration Costs in the Western Interconnection: Consolidating Balancing Authorities and Sharing Balancing Reserves},
author = {Samaan, Nader A. and Makarov, Yuri V. and Nguyen, Tony B. and Diao, Ruisheng},
abstractNote = {The study described in this chapter demonstrates the benefits of BA consolidation with the help of a detailed WECC system model and advanced methodology, which is also described in this chapter. The study aims to determine the potential savings in production cost and reduction in balancing reserve requirements in the WECC system. The study has found that effective use of the diversity in load and variable generation over a wide area can indeed help to achieve significant savings. The implementation cost for the consolidation was beyond the scope of this study. The analysis was performed for two different scenarios of VG penetration: 11% (8% wind and 3% solar) and 33% (24% wind and 9% solar) of WECC projected energy demand in 2020. In analysis of balancing reserves, the objective was to determine the reduction in balancing reserve requirements due to BA consolidation, in terms of required capacity and ramp-rates. Hour-ahead and 10-minute ahead forecast errors for load, wind, and solar were simulated. In addition, 1-minute resolution load, wind and solar data were used to derive balancing reserve requirements i.e. load-following and regulation requirements for each individual BA and for the consolidated BA (CBA). The reduction in balancing reserves was determined by calculating the difference between total reserve requirements that need to be carried by different BAs if they operate individually, and reserve requirements that need to be carried by the CBA. The study results show that the consolidated WECC system would have about a 50% overall reduction in balancing reserves for the 11% penetration scenario and a 65% reduction for the 33% penetration scenario in comparison with total reserve requirements that need to be carried by different BAs if they operate individually.},
doi = {10.1007/978-3-319-55581-2_6},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun May 07 00:00:00 EDT 2017},
month = {Sun May 07 00:00:00 EDT 2017}
}

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  • With the rapidly growing penetration level of wind and solar generation, the challenges of managing variability and the uncertainty of intermittent renewable generation become more and more significant. The problem of power variability and uncertainty gets exacerbated when each balancing authority (BA) works locally and separately to balance its own subsystem. The virtual BA concept is based on various forms of collaboration between individual BAs to manage power variability and uncertainty. The virtual BA will have a wide area control capability in managing its operational balancing requirements in different time frames. This coordination results in the improvement of efficiency andmore » reliability of power system operation while facilitating the high level integration of green, intermittent energy resources. Several strategies for virtual BA implementation, such as Area Control Error (ACE) diversity interchange (ADI), variable generation only BA, BA consolidation, dynamic scheduling, and regulation and load following sharing are discussed in this paper. The objective of such strategies is to allow individual BAs within a large power grid to help each other dealing with power variability. Innovative methods have been developed to simulate the balancing operation of BAs. These methods evaluate the BA operation through a number of metrics such as capacity, ramp rate, ramp duration, energy and cycling requirements to evaluate the performance of different virtual BA strategies.« less
  • As more and more variable generation is integrated into power grids, many challenges and concerns arise for an individual balancing authority (BA) to balance the system with limited resources. Consolidating balancing authorities provides a promising method to mitigate these problems by enabling the sharing of resources through operating different BAs as a single BA. The diversity in load and renewable generation over a wide area can be effectively leveraged, which makes it possible to achieve significant savings in balancing requirements. This paper develops a detailed procedure to compute savings in load following and regulation service requirements due to BAs consolidation.more » It proposes several evaluation metrics for demonstrating the benefits of BA consolidation. Several study scenarios are designed for a set of BAs in the western United States to test the proposed procedure. Results have shown significant savings in the capacity, ramp rate, and energy of balancing service requirements. Important factors affecting the savings, such as forecast accuracy and cross correlation between forecast errors, are also discussed.« less
  • This presentation describes the analysis of the impact of balancing area cooperation on the operation of the Western Interconnection with wind and solar generation, including a discussion of operating reserves, ramping, production simulation, and conclusions.
  • With the rapidly growing penetration level of wind and solar generation, the challenges of managing variability and the uncertainty of intermittent renewable generation become more and more significant. The problem of power variability and uncertainty gets exacerbated when each balancing authority (BA) works locally and separately to balance its own subsystem. The virtual BA concept means various forms of collaboration between individual BAs must manage power variability and uncertainty. The virtual BA will have a wide area control capability in managing its operational balancing requirements in different time frames. This coordination results in the improvement of efficiency and reliability ofmore » power system operation while facilitating the high level integration of green, intermittent energy resources. Several strategies for virtual BA implementation, such as ACE diversity interchange (ADI), wind only BA, BA consolidation, dynamic scheduling, regulation and load following sharing, extreme event impact study are discussed in this report. The objective of such strategies is to allow individual BAs within a large power grid to help each other deal with power variability. Innovative methods have been developed to simulate the balancing operation of BAs. These methods evaluate the BA operation through a number of metrics — such as capacity, ramp rate, ramp duration, energy and cycling requirements — to evaluate the performances of different virtual BA strategies. The report builds a systematic framework for evaluating BA consolidation and coordination. Results for case studies show that significant economic and reliability benefits can be gained. The merits and limitation of each virtual BA strategy are investigated. The report provides guidelines for the power industry to evaluate the coordination or consolidation method. The application of the developed strategies in cooperation with several regional BAs is in progress for several off-spring projects.« less
  • 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 BAsmore » 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.« less