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© 2018 Electric Power Research Institute, Inc. All rights reserved. John Taber, Technical Leader, EPRI August 20, 2018 Regional Power System Planning Examples from North America

Regional Power System Planning - Microsoft · Year 2010 S1 -EEA Reference Scenario Power 0.0 2.8 0.2 3.7 Texas •Simultaneously assesses new inter-state transmission capacity vs

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  • © 2018 Electric Power Research Institute, Inc. All rights reserved.

    John Taber, Technical Leader, EPRI August 20, 2018

    Regional Power System Planning

    Examples from North America

  • 2 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Agenda for Today’s Webcast

    US-REGEN: Introduction

    Transmission Investment in Two REGEN Cases

    Economic Flows between Regions

  • 3 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Overview of the US-REGEN Model

    Pacific

    California

    Mountain-N

    Texas

    NW-Central

    SW-Central

    Wisconsin

    M-Atlantic

    S-Atlantic SE-Central

    Florida

    NE

    NE-Central

    NY

    Mountain-S

    Georgia Alabama

  • 4 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Synchronized

    Hourly Load, Renewables,

    and Prices

    Updated and Enhanced REGEN Model Capabilities

    Pacific

    Electric Generation 120°W 110°W 100°W 90°W 80°W 70°W

    45°N

    40°N

    35°N

    30°N

    25°N

    Energy End-Use

    Climate zones

    Building types

    Household characteristics

    Industrial mix

    End-use technology detail

    Investment and dispatch

    Transmission

    Intermittent renewables

    Energy and capacity requirements

    State-level policies and constraints

    Model Outputs:

    Economic equilibrium for generation, capacity,

    and end-use mix

    Emissions, air quality, and water use

    U.S. Regional Economy, Greenhouse Gas, and Energy

  • 5 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    US-REGEN Features: Endogenous Co-Investment in New Transmission

    Pacific

    California

    Mountain-N

    Texas

    NW-Central

    SW-Central

    M-Atlantic

    S-Atlantic

    SE-Central

    Florida

    NE

    NY

    Mountain-S

    NE-Central

    0.6

    8.30.4

    1.5

    18

    .4

    2.9

    0.1

    2.1

    2.4

    0.9

    7.4

    1.5

    21.6

    0.0

    Year 2010 S1-EEA Reference Scenario Power

    0.0

    2.8

    0.2

    3.7

    Texas

    • Simultaneously assesses new inter-state transmission capacity vs. new generation capacity in finding least-cost way to meet load

    • Advantages: Captures important degree of freedom in investment and system operations

    • Disadvantages: No sub-state detail for transmission/distribution

  • 6 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Uses and Limitations of Economic Models

    Models like US-REGEN necessarily are numerical abstractions of the complex economic and energy systems they represent. As such, they may contain:

    – Approximation errors

    – Incomplete system dynamics

    – Quality of data issues

    When viewing model results, it is important to keep in mind:

    – Analyses are not intended to be viewed as a prediction of a particular outcome or cluster of outcomes.

    – Insights come by running a variety of cases, comparing the results, and asking “what if” questions.

    – Actual deployment of a model outcome is dependent on many additional factors, such as policy, permitting and siting.

    “Essentially, all models are wrong, but some are useful”. -- George Edward Pelham Box

  • 7 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Two Scenarios in REGEN

    Reference Scenario High Renewables

    Integrated End Use Model, 2017-2050

    EIA Annual Energy Outlook 2018 High Oil & Gas Resource & Technology Natural Gas Prices

    National Electrification Reference Technology Assumptions

    No National RPS 50% National RPS by 2030

    65% National RPS by 2050

  • 8 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Scenario Differences at National Level

  • 9 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Even more at Regional Level (SPP)

  • 10 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Total Difference in Regional Transmission Investment Between Scenarios by 2050

    -12.00

    -10.00

    -8.00

    -6.00

    -4.00

    -2.00

    0.00

    2.00

    4.00

    6.00

    8.00

    10.00

    GW

  • 11 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Efficiency of Interface Flows

  • 12 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Percentage of Scheduled Flows that are Economic

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    NY-NE AC NY-PJMAC

    PJM-MISO SPP-MISO NY-NECSC

    NY-NE1385

    NY-PJMHudson

    NY-PJMLinden

    NY-PJMNeptune

    DA RT

  • 13 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Reasons for Inefficient Interchange

    Latency Delay

    – Time between scheduling and delivery

    12-17+ hours for DA

    20 minutes – 12 hours for RT

    Non-Economic Clearing

    – Not all interchange is coordinated

    Cross-Border Transaction Costs

    – Uplift

    Lack of Information

    – Information about price differences, not volumes

  • 14 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    Together…Shaping the Future of Electricity

    John Taber Technical Leader

    202-420-0138 [email protected]

    mailto:[email protected]

  • 15 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    The EPRI US-REGEN Model

    State-of-the-art simulation model of the U.S. electric sector combined with an integrated economy model, and state level detail

    Determines “best” (i.e., economically optimal) mix of resources to power the economy

    Sub-national granularity (15 regions / 48 state breakdown) makes it possible to capture variability in generation mix, resources, energy demand and other key variables

    Powerful tool to support scenario planning

    Incorporates proprietary EPRI data on the expected costs and performance of generation technologies and environmental controls

    Developed and maintained by EPRI staff

  • 16 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    US-REGEN Model Description

    Pacific

    California

    Mountain-N

    Texas

    NW-Central

    SW-Central

    NE-Central-R

    M-Atlantic

    S-Atlantic

    SE-Central

    Florida

    NE NE-Central-C NY

    Mountain-S

    Electric Sector Model

    • Endogenously Builds/Retrofits/Retires Capacity

    • Simultaneously Capacity Planning and Dispatch

    • Co-Optimizes Transmission

  • 17 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    US-REGEN Model Description

    Pacific

    California

    Mountain-N

    Texas

    NW-Central

    SW-Central

    NE-Central-R

    M-Atlantic

    S-Atlantic

    SE-Central

    Florida

    NE NE-Central-C NY

    Mountain-S

    Energy Demand (Electric &

    Non-Electric)

    • Detailed model of residential, commercial, and light-duty vehicle technologies

    • High level representation of industrial & other transportation sectors

    Electric Sector Model

    • Endogenously Builds/Retrofits/Retires Capacity

    • Simultaneously Capacity Planning and Dispatch

    • Co-Optimizes Transmission

  • 18 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    US-REGEN Model Description

    Pacific

    California

    Mountain-N

    Texas

    NW-Central

    SW-Central

    NE-Central-R

    M-Atlantic

    S-Atlantic

    SE-Central

    Florida

    NE NE-Central-C NY

    Mountain-S

    General Equilibrium

    Economy Model

    • Aggregate Economic Representation

    • Energy Markets for Oil, Natural Gas, Coal, & Bioenergy

    • Foreign Exchange

    Energy Demand (Electric &

    Non-Electric)

    • Detailed model of residential, commercial, and light-duty vehicle technologies

    • High level representation of industrial & other transportation sectors

    Electric Sector Model

    • Endogenously Builds/Retrofits/Retires Capacity

    • Simultaneously Capacity Planning and Dispatch

    • Co-Optimizes Transmission

  • 19 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    US-REGEN Features: Capacity Expansion Model with a Long Horizon to 2050

    • US-REGEN determines the least cost capacity mix to meet load over a 35 year horizon, including economic retirements, additions, and retrofits

    • Advantages: Running the model with multiple sensitivities over input assumptions offers insights on key drivers in the electric sector.

    • Disadvantages: Least-cost assumption does not necessarily reflect political and siting realities; this is not a model for Integrated Resource Planning.

    0

    200

    400

    600

    800

    1000

    1200

    2015 2020 2025 2030 2035 2040 2045 2050

    GW

  • 20 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    US-REGEN Features: Intra-Annual Temporal Resolution

    • US-REGEN employs an innovative “representative hour” selection algorithm to capture hourly wind, load, and solar shapes

    • Advantages: Captures hourly correlations in a long time horizon model better than other approaches (e.g., Seasonal Average Method)

    • Disadvantages: Non-chronological, no subhourly features

  • 21 © 2018 Electric Power Research Institute, Inc. All rights reserved.

    US-REGEN Features: Flexible and Customizable

    • US-REGEN is run in-house at EPRI; giving us the flexibility to customize technologies and update datasets for a given project

    Documentation, articles, and reports at http://eea.epri.com

    http://eea.epri.com/