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CAISO PUBLICCAISO PUBLIC
Challenges for the 21st Century Grid
Neil Millar
Executive Director, Infrastructure Development
Power Association of Northern California Annual Seminar
May 2nd, 2018
CAISO PUBLIC
California ISO by the numbers
Serves 80% of state
30 million consumers
26,000 miles of wires
72,000 MW plants
50,270 MW record peak demand (July 24, 2006)
240 million megawatt-hours of electricity delivered annually (2016)
$9 billion market
Page 2
CAISO PUBLIC
We are facing a rapidly changing mix of resource
types and technologies
Page 3
Inverter-based solar setting
the pace and inverter
based storage also
growing rapidly
CAISO PUBLIC
Oversupply and ramping: A new challenge as more
renewables are integrated into the grid
Typical Spring Day
Net Load 11,663
MW on May 15,
2016
Actual 3-hour ramp
12,960 MW on
December 18, 2016
• ISO has already seen the need to
curtail generation
• Oversupply may lead to
curtailment because of dispatch
limitations on some resources,
such as
o geothermal
o nuclear
o small hydro
o combined heat and power
Potential
over-supply
Ramping
needs increase
CAISO PUBLIC
A suite of solutions to address the challenges
Page 5
CAISO PUBLIC
The changes to the grid-connected generation fleet are
only part of the picture:
Community
Choice
50% goal
Growth in
Rooftop
Solar
Federal
Policies
Possible
100% goal
Grid
Modernization
Fossil
Retirements
A Regional
Grid
EIM
Growth
Aliso
Canyon
Consumer
Control and
Participation
The T-D
Interface
CAISO PUBLIC
The ISO’s annual transmission planning process
provides a foundation for many of these challenges
Page 7
ISO Annual Transmission
Planning Process
CPUC Integrated Resource Planning Process
CEC Integrated
Energy Resource Plan (Demand Side Forecasting)
Reliability needs
Renewable delivery
(policy) needs
Economic needs
Provides basis for special
studies on emerging issues
Includes interregional
transmission planning
coordination with
neighboring planning
regions
CAISO PUBLIC
Beyond the annual planning activities, the ISO is
actively participating in addressing other issues:
• Among the first adopters of the “composite load model” to more accurately represent impacts of customer load with behind-the-meter generation
• Addressing emerging issues with new technologies:
– Supporting NERC and WECC working groups to improve modeling of grid-connected inverter responses to voltage fluctuations during and after transmission line faults
– Worked with industry to address inadvertent loss of inverter-based generation due to frequency calculation issues
– Pursuing a NERC standard to set transient and post-fault performance requirements for inverters
• Participation in testing of solar generation’s ability to provide “inertia-like” response for frequency control
Page 8
CAISO PUBLIC
The ISO process also addresses many of the
resilience issues being discussed in the industry
• FERC Order 1000 planning process already considers extreme
events and common mode impacts
• ISO planning standards augment national and WECC
requirements, and, in particular, focus on certain extreme event
considerations such as San Francisco Peninsula concerns and
high density urban load areas
• ISO planning, procurement, coordination, reliability, and other
efforts have produced a robust and diverse infrastructure and
“set of tools” that have helped the ISO to remain reliable and
resilient in the face of significant threats such as Aliso Canyon,
SONGS, severe droughts and fires, and the solar eclipse
• Other special studies consider issues such as risk of early
retirement of the gas fleet, and gas/electric reliability
coordinationPage 9
CAISO PUBLIC
FERC terminates rulemaking on Grid Reliability and
Resilience Pricing
• FERC concluded that the Proposed Rule did not satisfy the statutory regulatory requirements under section 206 of the FPA
• But the effort “shed light” on the continued need to consider the impact that current economic, environmental, and policy drivers are changing the way electricity is procured and used
• To develop a common understanding among FERC, industry, and others of what resilience means and requires
• How each RTO/ISO assesses resilience in its geographic footprint
• To use this information to evaluate whether additional FERCaction regarding resilience is needed
Page 10
CAISO PUBLIC
The ISO suggested that FERC take a holistic approach
in defining “resilience” to accommodate regional
differences
• Not practical to guard against every possible event, but the ISO has developed a robust “set of tools” that have helped the ISO to remain reliable and resilient
• Responsibility for resilience does not solely rest with the RTO/ISO
• Proposed definition is general and somewhat vague because it does not provide a clear objective criteria, metrics, or standards to evaluate whether the existing grid is resilient
• No consideration of cost/benefit of addressing extensive resilience efforts
• Proposed definition appears to relate to reliability which is already addressed by well established reliability standards
• Potential overlap between resilience and reliability is not clearly articulated and why a new, wholly separate concept is needed
Page 11
CAISO PUBLIC
Questions?
Page 12