Integrating Rhode Island

Renewable Energy Projects into

the Region’s Electric Grid

Jon Black

Engineer, System Planning

Regional Planning & Coordination

ISO New England

Environmental Business Council of New England

Energy Environment Economy

F E B R U A R Y 1 2 , 2 0 1 4 | P R O V I D E N C E , R I

Jon Black E N G I N E E R , R E G I O N A L P L A N N I N G & C O O R D I N A T I O N

Environmental Business Council Rhode Island Chapter

Integrating Renewable Energy Projects into the Electric Grid

Mary Louise Nuara E X T E R N A L A F F A I R S R E P R E S E N T A T I V E

Presentation Overview

• ISO New England Overview

• Drivers of Renewable Energy – State Renewable Portfolio Standards – Long-Term Contracting

• Integration of Renewable Energy – Wind Energy – Distributed Generation (DG) – Large-Scale Hydropower

• New England Governors’ Commitment to Regional Cooperation on Energy Infrastructure 2

ISO NEW ENGLAND OVERVIEW

About ISO New England

• Not-for-profit corporation created in 1997 to oversee New England’s restructured electric power system

– Regulated by the Federal Energy Regulatory Commission (FERC)

• Regional Transmission Organization

– Independent of companies doing business in the market

– No financial interest in companies participating in the market

– Neutral as to resource fuel type

• Major Responsibilities – Operating the Regional Power System – Administering Wholesale Electricity Markets – Regional Power System Planning

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New England’s Electric Power Grid at a Glance

• 6.5 million households and businesses; population 14 million

• 350+ generators

• 8,000+ miles of high-voltage transmission lines (115 kV and above)

• 13 interconnections to electricity systems in New York and Canada

• 31,750+ megawatts (MW) of generating capacity and approximately 1,850 MW of demand resources

• 28,130 MW all-time peak demand, set on August 2, 2006

• 500+ buyers and sellers in the region’s wholesale electricity markets

• $5 billion in transmission investment since 2002; approximately $6 billion planned over next 5 years

• $5 billion total energy market value in 2012

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Industry Structure in New England

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*NESCOE: New England States Committee on Electricity *NECPUC: New England Conference of Public Utilities Commissioners

Federal Energy Regulatory Commission

North American Electric Reliability Corporation

Northeast Power Coordinating Council

Independent Board of Directors

ISO New England New England Electricity

Market Participants (NEPOOL)

New England States

Policymakers

Public Utility Commissions (NECPUC)*

Environmental Regulators

Energy Boards and Commissions

Governors (NESCOE)*

Consumer Advocates,

Attorneys General, Consumer Liaison

Group

Six Sectors: Generators, Transmission Owners,

Suppliers, Publicly Owned Entities, End

Users, Alternative Resources

Participants Committee and Technical Committees

Markets, Reliability, and Transmission

Committees

Operating the Power System

Administering Wholesale

Electricity Markets

Power System Planning

Comprehensive Regional Planning Process through

Planning Advisory Committee

ISO New England’s Strategic Planning Initiative Focused on developing solutions to the top five challenges facing the region

1. Resource Performance and Flexibility

2. Increased Reliance on Natural Gas-Fired Capacity

3. Retirement of Generators

4. Integration of a Greater Level of Variable Resources

5. Alignment of Markets with Planning

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Natural Gas has Become the Dominant Fuel for Power Generation in New England

Existing Generation

Natural gas 52%

Nuclear 31%

Renewable Energy

13%

Pumped storage

1%

Coal 3% Oil <1%

Proposed Capacity

Natural gas 55%

Wind 40%

Other 5%

Energy by Fuel Type, 2012 ISO Generator Interconnection Queue (January 2014)

Natural gas is the fuel of choice for new capacity and gas-fired generators will be needed to balance variable energy resources

Natural gas has largely displaced oil- and coal-fired generation

8

Generator Proposals in the ISO Queue Approximately 5,000 MW

By Type

Natural gas,

2,733, 55%

Wind, 2,000, 40%

Hydro, 14, 0%

Pumped-storage

hydro, 50, 1%

Biomass, 175, 4% Solar, 10,

0%

By State

ME, 1,300, 26%

NH, 220, 4%

VT, 180, 4%

MA, 2,050, 41%

CT, 1,230, 25%

Source: ISO Generator Interconnection Queue (January 2014) Note: Natural gas and biomass include dual fuel units (oil)

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DRIVERS OF RENEWABLE ENERGY

State Renewable Portfolio Standards

• RPS are state-legislated targets to obtain a specific percentage of energy to be supplied from renewable resources – Generally applicable to electric utilities and competitive retail electric

suppliers

• Entities can make Alternative Compliance Payments (ACP) for any RPS deficiency – ACP generally used to fund new renewable energy projects – ACP serve as price caps on Renewable Energy Certificates (RECs)

• RPS are typically structured into “existing” and “new” resource categories, and in some states, special technology categories also exist – The “new” classes of RPS grow as an increasing percentage of the

competitive retail supplier load

• Some states also have related goals for energy efficiency which could reduce the need for supply-side resources

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RPS Classes in New England

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State RPS Classes RPS Target by 2022

Connecticut I New 20%

II Existing 3%

III CHP/EE (Existing) 4%

Maine “Existing” 30%

New capacity 10% by 2017

Massachusetts New (incl. Solar Carve-out) 16%

Existing I and II 3.6% (I) 3.5% (II)

New Hampshire I New (incl. “useful thermal energy”) 12.3% by 2022

II Solar 0.3% by 2015

III Existing Biomass 8% by 2015

IV Existing small hydro 1.5% by 2015

Rhode Island Existing 2%

New 14% by 2019

Vermont Has no formal RPS Goal of 20% by 2017

SPEED Program All energy growth above 2005

Technologies to Meet State RPS

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Common Technologies State Special Technologies or Restrictions

Solar thermal, photovoltaic, ocean thermal, wave, tidal, wind, biomass (MA: subject to eligibility

requirements), hydro, landfill gas, fuel cells

Maine

Municipal Solid Waste (MSW) with recycling, cogeneration, and geothermal, “useful thermal energy”

Massachusetts Fuel cells only with renewable fuels, MSW

Connecticut

Hydro < 30 MW, sustainable biomass, MSW, fuel cells, energy efficiency and combined heat and power (CHP), large-scale hydro (only if shortfall in Class I resources, capped at 5% in 2020)

Rhode Island Fuel cells only with renewable fuels, geothermal

Vermont* Agricultural wastes, no ocean thermal, wave or tidal power

New Hampshire Geothermal, no fuel cells

* Vermont does not have a formal RPS

Rhode Island’s Renewable Energy Supply to the ISO Grid in 2012

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Capacity = 43.65 MW

Hydro13.59 GWh

11.8%

LFG/Wood/Refuse100.39 GWh

86.8%

Solar/Wind1.64 GWh

1.4%

Energy = 115.62 GWh

Hydro0.38 MW

0.9%

LFG/Wood/Refuse97.7%

Solar/Wind0.62 MW

1.4%

Source: Summer Seasonal Claimed Capability (SCC) Data, 2013 CELT; settlements data

Long-Term Contracts Facilitate Development of Renewable Resources Examples of recent agreements with utilities

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Groton Wind 48 MW

(PPA with NSTAR)

Housatonic Wind 28 MW

(PPA with NSTAR)

Lempster Wind 24 MW

(PPA with PSNH & NH Elec. Coop)

Laidlaw Biomass 70 MW

(PPA with PSNH)

5 Independent Biomass Plants (PPA with PSNH)

Fusion Solar Center 20 MW

(PPA with CLP & UI)

Number 9 Wind 250 MW

(PPA with CLP & UI)

Block Island Wind 30 MW

(PPA with National Grid)

Cape Wind 130 MW

(PPA with NU/NSTAR)

Granite Reliable Wind 99 MW

(PPA with Vermont Utilities)

Mars Hill Wind 42 MW

(PPA with New Brunswick Power)

Rollins Hill Wind 60 MW

(PPA with CMP & BHE)

Verso Paper Bucksport Biomass 35 MW

(PPA with CMP)

Oakfield Wind 147 MW

(PPA with Mass Utilities)

Bingham Wind 186 MW

(PPA with Mass Utilities)

Sheffield Wind 40 MW

(PPA with Vermont Utilities)

As of December 2013; Source: publicly available information

Wild Meadows Wind 76 MW

(PPA with Mass Utilities)

Bowers Wind 48 MW

(PPA with National Grid)

INTEGRATION OF RENEWABLE ENERGY

Renewable Resource Integration Studies and Coordination

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• Wind – The ISO is identifying and

addressing challenges for wind integration

– A wind power forecast has gone live on the ISO website

– Progress is being made on modified operating procedures and data requirements and, over the longer term, the dispatch rules for wind

• Large-Scale Hydro – Potential for increased imports

of large-scale hydro • 2013 Economic Study

• Photovoltaic (PV) – This growing resource is posing unique

challenges – Research is being conducted to

establish an operational forecast – Historic loads reflect PV embedded in

the system FCM resources are known to the ISO

– The ISO is working with the states on interconnection requirements for distributed generation (DG)

– Distributed Generation Forecast Working Group has been created

• Will inform the ISO and the region on future PV development, which will improve modeling in planning studies

New England has Significant Wind Potential

• Population and electric demand are concentrated along the coast in central and southern New England

• 12,000 MW of onshore and offshore wind potential – Preliminary screening

eliminated wind sites near urban areas and sensitive geographic locations (e.g., Appalachian Trail)

• Transmission will be required to connect potential wind resources to load centers in New England

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Wind zones

Electricity Demand

• Over 2,000 MW of wind proposed (includes non-FERC jurisdictional)

• Majority of wind development proposals in Maine and northern New England

• Offshore projects proposed in Maine, Massachusetts and Rhode Island

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MA 480 MW

ME 1,300 MW

NH 135

MW

VT 110 MW

RI 30

MW

Note: Cumulative numbers for each state may include non-FERC

jurisdictional proposals as well as

both on- and off-shore proposals

Source: ISO Generator Interconnection Queue (January 2014)

Wind Proposed for the Region Represents 40% of proposed generation

New England Wind Integration Study (NEWIS)

• Comprehensive two-year wind integration study completed in December 2010 – Developed a detailed on- and

off-shore New England wind model

• Snapshot of the year 2020 with hypothetical small, medium and large wind power penetrations

• Highlights the impact of each wind development scenario on New England’s power system

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NEWIS: Major Findings and Key Challenges

• Large-scale wind integration in New England is possible – As much as 24% is achievable under certain conditions

• Large-scale wind integration will require: – Significant transmission upgrades – Increases in regulation and operating reserves

• The region needs to maintain a system with flexible resources to manage variability and uncertainty of wind – Natural gas fleet can provide flexibility

• Centralized wind power forecasting is required – Large-scale wind integration will require accurate intra-day and day-ahead

wind-power forecasts to ensure efficient unit commitment and market operation

• Regional and local transmission constraints can lead to curtailments

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Other Wind Integration Activities

• 2011 Economic Study – Wind Scenarios – Examined impact of relieving transmission constraints between

wind project development areas and regional power system in New England

• Strategic Transmission Analysis – Wind Integration Study – Effort to understand the various transmission constraints which

can limit variable energy resources and consider the scope of transmission upgrades to mitigate constraints

• Market Development – Energy market offer flexibility enhancements, which go into

effect December 2014 • Including negative offers

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a. Northern Pass – Hydro Quebec/Northeast Utilities

b. Northeast Energy Link – Bangor Hydro/National Grid

c. Green Line – New England ITC

d. Bay State Offshore Wind Transmission System – Anbaric Transmission

e. Northeast Energy Corridor – Maine and New Brunswick

f. Muskrat Falls/Lower Churchill – Nalcor/Emera

g. Maine Yankee–Greater Boston h. Maine–Greater Boston i. Northern Maine–New England j. Plattsburgh, NY–New Haven, VT k. New England Clean Power Link – TDI New England

b

d

a c e

h j

i New Brunswick

Nova Scotia

Québec

New York

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On- and Off-shore Transmission Proposals Vying to Move Renewable Energy to New England Load Centers

f

From Newfoundland & Labrador

g

Note: These projects are NOT reliability projects, but ISO New England’ s role is to ensure the reliable interconnection of these types of projects.

Representative Projects and Concept Proposals

k

November 2013: Publicly available information

Region Experiencing Growth of PV and Other DG

• Regionally: More than 2,000 MW of DG anticipated by 2021 – PV will be the dominant DG technology

• 250 MW installed by end of 2012; approximately 125 MW in 2012 alone

• Massachusetts: reached its 250 MW PV goal three years early – May 2013: announced expanded goal of 1,600 MW of PV by 2020*

• Connecticut: Public Act 11-80 is stimulating growth in DG – Could result in more than 300 MW of DG by 2022, mostly PV

• Vermont: State goal of 127.5 MW of DG by 2022 – Approximately 26 MW of PV installed by the end of 2012

• Rhode Island: DG Standard Contract Program aimed at stimulating 40 MW of DG by end of 2014 – Rhode Island may decide to expand the program beyond 2014 – Program awarded contracts to 14.6 MW of PV through the end of 2012

• New Hampshire: Class II RPS will require about 25 MW of PV by 2015

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* Note: All numbers represent nameplate capacity. The MA goal is based on total DC nameplate ratings. As a result of numerous DC-to-AC derate factors, AC power rating is typically in the range of 75%-85% of the DC nameplate rating. A description of the various derate factors can be found at: http://www.nrel.gov/rredc/pvwatts/changing_parameters.html

Key Challenges of DG Integration

• Increased awareness of DG development and planning is needed – ISO has limited data concerning DG resources and will need increased

knowledge about DG developments as they are planned and built (e.g., location, size, technology types)

• A lack of real-time observability/controllability – The variability and uncertainty of intermittent DG (i.e., PV) output will

eventually impact reserve/regulation operational requirements – ISO will need real-time data to support both a solar “nowcast” and solar

forecast to enhance situational awareness and enable the efficient commitment and dispatch of resources

• Growing penetrations of DG could impact grid reliability, both in terms of system operations and system planning – Efforts are needed to harmonize state-jurisdictional interconnection

standards with FERC-jurisdictional standards and other relevant NPCC and NERC standards

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Distributed Generation Forecast Working Group

• The ISO is working with the states and regional utilities to forecast long-term incremental DG growth

• In support of this effort, the ISO created a regional Distributed Generation Forecast Working Group (DGFWG) as a vehicle to collect data on DG policies and implementation from states and utilities

• DGFWG will assist the ISO in developing a forecast methodology

• DGFWG will focus on the following types of DG resources – Under 5 MW – Connected to the distribution system – Not visible to the ISO directly – Pose both operational challenges and benefits – Focus on solar PV, the largest DG component

• Work is underway on an Interim DG Forecast for the region

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ISO Forecasts Growth in PV (Preliminary Draft) Summer MW Capacity Ratings after Discounts

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Potential for Increased Imports of Large-Scale Canadian Hydropower

• To meet renewable energy goals and enhance fuel diversity in the region, many New England states considered large-scale hydro as a potential energy option, particularly its procurement through long-term contracting – Connecticut restructured its Renewable Portfolio Standard (RPS) to

allow large-scale hydro to count toward its Class I RPS target in the event of Class I supply shortages (capped at 5% by 2020)

• 2013 Economic Study (requested by National Grid)* – Evaluates the impact of different levels of imports on HQ Phase II

• New England Governors’ Energy Infrastructure Initiative – New electric transmission infrastructure to add more wind and hydro

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* See January 23, 2014 PAC presentation for GridView Simulation Results: http://www.iso-ne.com/committees/comm_wkgrps/prtcpnts_comm/pac/mtrls/2014/jan232014/index.html

New England Governors Commit to Regional Cooperation on Energy Infrastructure Issues

• Dec. 2013: Region’s governors announced the need for strategic investments in energy resources and infrastructure:

– Energy efficiency – Renewable generation – Natural gas pipelines – Electric transmission

• Ensure a reliable, affordable and diverse energy system

• Enable states to meet clean energy and greenhouse gas reduction goals and improve economic competitiveness

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Conclusion

• Energy landscape is changing rapidly in New England – Federal and state policies foster growth of renewables

• Wind: makes up about half of known future generation resources • Solar: seeing rapid growth • Hydro: states looking to access large-scale hydro resources in Canada

• ISO is developing new tools to keep pace with these changes and to ensure reliable integration – Wind

• Transmission studies • Hourly forecasting program to help grid operators • Market rule changes

– Solar • Forecast of previously unseen amounts of solar • Working to improve interconnection standards

– Hydro • Studies underway to help identify transmission solutions • Working with states to help meet policy goals

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