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ENERGY CENTER State Utility Forecasting Group (SUFG) Integrating Renewable Energy into Supply Planning Presented by: Douglas J. Gotham State Utility Forecasting Group Energy Center Purdue University Presented to: Institute of Public Utilities 13 th Advanced Regulatory Studies Program October 8, 2008

Integrating Renewable Energy into Supply Planning

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ENERGY CENTER

State Utility Forecasting Group (SUFG)

Integrating Renewable

Energy into Supply Planning

Presented by:

Douglas J. Gotham

State Utility Forecasting Group

Energy Center

Purdue University

Presented to:

Institute of Public Utilities

13th Advanced Regulatory Studies Program

October 8, 2008

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Renewable Portfolio

Standards

Source: DSIRE2

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Historical Renewable Energy

in the U.S.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

19

49

19

52

19

55

19

58

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

Bil

lio

n B

tu

Hydroelectric Geothermal Solar/PV Wind Biomass Renewables Total

Data source: EIA

3

ENERGY CENTER

State Utility Forecasting Group (SUFG)

2006 U.S. Electricity

Generation by Energy Source

Coal49.0%

Petroleum liquids1.1%

Petroleum Coke0.5%

Natural gas20.0%

Other gases0.4%

Nuclear19.4%

Other0.3%

Hydroelectric Conventional

76.3%

Hydroelectric pumped storage-1.7%

Waste Biomass4.2%

Wood & derived fuels10.2%

Geothermal3.8%

Solar0.1%

Wind7.0%

Renewable9.3%

Data source: EIA 4

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Barriers to Renewables

• Cost

– most renewable technologies have high capital costs

– Electricity is relatively cheap in many areas

• Limited resources are also a problem for some technologies

– solar/photovoltaics, hydropower, wind, geothermal

• Intermittency

5

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Incentives for Renewables

• Federal– tax credits and exemptions (production tax credit)

– grant programs

• State– net metering rule

– grant programs

– tax credits

– emissions credits

• Utilities– green pricing programs

6

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Wind

• Advantages

– inexhaustible

– free fuel

– clean

– modular

– scalable

– high system

reliability

– uses no water

• Disadvantages

– intermittent

– usually located far

from load centers

– bird mortality

– radar interference

– somewhat

geographically

limited

7

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Wind Resources

8

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Growth in U.S. Wind Power

9

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Wind Power Capacity

10

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Energy Crops

• Sources

– fast growing

hardwood trees

• hybrid poplar

• willow

– grasses

• switchgrass

• Miscanthus

– food crop byproducts

• corn stover

• Barriers

– other high-value

uses for the land

– harvesting and

transportation costs

– price of competing

fossil fuels

11

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Organic Waste Biomass

• Wood waste

• Landfill gas

• Municipal solid waste

• Animal waste biogas

• Wastewater treatment

12

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Biomass Resources

13

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Geothermal

• Advantages

– clean

– free fuel

– high availability (95

percent)

– nearly inexhaustible

• Disadvantages

– geographically

limited

– usually located far

from load centers

14

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Geothermal Resources

Source: EERE 15

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Solar

• Advantages

– inexhaustible

– free fuel

– clean

– modular

– scalable

– high system

reliability

– uses no water

• Disadvantages

– intermittent

– high capital cost

– geographically

limited

16

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Flat Panel Solar Resources

17

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Concentrating Solar Resources

18

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Hydroelectricity

• Advantages

– inexhaustible

– free fuel

– clean

– operational flexibility

• Disadvantages

– geographically

limited

– impact on aquatic life

– changes in water

quantity/quality

downstream

19

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Hydroelectric Resources

Source: EERE 20

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Intermittency

• All generators have some amount of

uncertainty when it comes to availability

– mechanical failure

– environmental factors

• Some renewable resources experience

this problem on a far greater scale

21

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Intermittency Problems

• Operational

– Low output + high demand

– High output + low demand

– Rapid change in output

• Scheduling

– Unit commitment

– Gas purchase

• Planning22

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Intermittency in Planning

• Need to estimate two factors

– Amount of capacity that will be available

when needed (MW)

– Type of capacity (baseload, intermediate,

cycling)

23

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Rule of Thumb Method

• Simple and easy to understand

• There is no standard

• Does not account for geographic

variability of load or resource

24

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Historical Availability

• Use the percentage of full output that is

available when the system peak

demand occurs

• Accounts for local factors

• Large variations from one year to

another

25

ENERGY CENTER

State Utility Forecasting Group (SUFG)

MISO Availability on Peak

2005 2006 2007

Wind power available (percent) 11.8 66.5 1.6

26

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Effective Load Carrying

Capability• ELCC is the amount of new load that

can be added with a given amount of

new generation while maintaining a

constant loss of load probability

27

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Estimated Wind Capacity

• A number of entities have estimated the

capacity value of wind

• Results vary considerably, from a low of

5% (Idaho Power) to 33% (Portland

General Electric)

• SUFG used 10% in its most recent

forecast projections

28

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Perceptions about Wind

• Wind is strongest in the winter/spring

and weakest in the summer

• Wind is strongest in the middle of the

night

• Wind speed is low when electricity

demand is high

29

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Indiana Average Wind Speed

Data source: Indiana Office of Energy and Defense Development 30

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Solar Power

• Solar power is also intermittent, but is

more predictable than wind

– the sun will not be out in the middle of the

night

– solar intensity tends to be greater in the

summer

– cloud cover can introduce short term

variations in output

31

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Power Output for Week

Starting August 20, 2008

Inv. 1 is output from sun-tracking panel. Inv. 2 is output from the stationary panel

Data source: Duke Energy32

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Water Power

• Run-of-the-river hydroelectric power is

also variable

• Output is very predictable in the short

term

• Wave and tidal power are also variable

but largely predictable

33

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Hydrothermal Coordination

• If the amount of water is limited in an

impoundment hydro facility (a dam), the

economic dispatch order is changed

34

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Geographic Diversity

• As intermittent resources are developed

in diverse locations, intermittency issues

tend to be mitigated somewhat

– If the wind stops blowing at one location, it

may be still blowing at another

35

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Wind Speeds for 3 Days in May

0

5

10

15

20

25

30

35

40

Goodland Haubstadt

36

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Variability of Wind Speed &

Equivalent Power OutputGoodland Haubstadt Combined

wind

speed

(mph)

power

(MW)

wind

speed

(mph)

power

(MW)

power

(MW)

Mean 18.02 1.002 13.18 0.456 1.458

Standard

deviation

7.08 0.939 5.04 0.407 1.160

Standard

deviation

as % of

mean

39.3% 93.3% 38.2% 89.1% 79.6%

37

ENERGY CENTER

State Utility Forecasting Group (SUFG)

An Academic Exercise

38

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Actual Indiana Data

• Statewide electricity consumption data

for every hour of the year

• Wind speed data for every 10 minutes

over a 12-month period

– 5 missing data points, values interpolated

• Consumption and wind speed data

come from different years

– Correlation between wind and demand is

lost 39

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Average Load

0

2000

4000

6000

8000

10000

12000

14000

16000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

40

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Average Wind Power for

Eastern Indiana Site

0

0.1

0.2

0.3

0.4

0.5

0.6

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

41

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Average Daily Load Shape

0

2000

4000

6000

8000

10000

12000

14000

16000

1 2 3 4 5 6 7 8 9 1011 12131415161718192021222324

42

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Power Output for Average Day

0

0.1

0.2

0.3

0.4

0.5

0.6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

43

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Annual Load Duration Curve

0

5000

10000

15000

20000

25000

1339

677

1015

1353

1691

2029

2367

2705

3043

3381

3719

4057

4395

4733

5071

5409

5747

6085

6423

6761

7099

7437

7775

8113

8451

44

ENERGY CENTER

State Utility Forecasting Group (SUFG)

For Simplicity’s Sake

• Assume load levels that occur at least

60 % of the time is met by baseload

resource

• Assume that load in excess of the 10%

of the time amount is met by peaking

resources

• Assume remainder is met by

intermediate resources45

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Thus

• Required baseload resources = load

level at hour (8760*0.6) of the LDC

• Required peaking resources = load

level at hour 1 of the LDC minus load

level at hour (8760*0.1) of the LDC

• Required intermediate resources = load

level at hour 1 of the LDC minus

baseload and peaking resources46

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Required Resources

• Peaking = 5077 MW

• Intermediate = 3012 MW

• Baseload = 11750 MW

• Total = 19839 MW

• Peak demand occurs on Aug 21 at 3:00

47

ENERGY CENTER

State Utility Forecasting Group (SUFG)

If We Add 100 MW of Wind at

Eastern Indiana Site• Subtract wind output from each hour’s

load and repeat

– Peaking = 5035 MW (42 MW less)

– Intermediate = 3021 MW (9 MW more)

– Baseload = 11709 MW (41 MW less)

– Total = 19765 MW (74 MW less)

• Peak demand occurs on Aug 21 at 3:00

48

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Various Levels of Wind

0 MW 100 MW 500 MW 1000 MW 5000 MW

Peaking 5077 5035 4908 5012 5550

Intermediate 3012 3021 3092 3174 4074

Baseload 11750 11709 11515 11272 9485

Total 19839 19765 19515 19458 19109

Peak demand 8/21, 3:00 8/21, 3:00 8/21, 5:00 8/21, 5:00 8/28, 4:00

49

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Geographic Diversity

• Artificially simulate geographic wind

diversity by delaying wind profile by 24

hours to create second site

• Keeps average wind for a given hour

the same

• Does not change seasonal wind speeds

• Some correlation exists between 2 sites

50

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Repeat Splitting Wind

Capacity Between 2 Sites

0 MW 100 MW 500 MW 1000 MW 5000 MW

Peaking 5077 5038 4883 4961 5507

Intermediate 3012 3023 3085 3166 3840

Baseload 11750 11706 11519 11276 9506

Total 19839 19766 19487 19403 18854

Peak demand 8/21, 3:00 8/21, 3:00 8/21, 5:00 8/21, 5:00 8/28, 4:00

51

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Summary

• Adding large scale wind tends to

decrease remaining capacity needs

– reduces remaining baseload needs

– increases remaining peaking &

intermediate needs

• Geographic diversity tends to increase

capacity value

52

ENERGY CENTER

State Utility Forecasting Group (SUFG)

Further Information

• State Utility Forecasting Group

– http://www.purdue.edu/dp/energy/SUFG/

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