Embed Size (px)
Citation preview
Transmission Expansion
Kansas Wind and Renewable Energy Conference
Topeka, KSSeptember 23, 2008
www.spp.org
3
Overview
• SPP Background• SPP Transmission Expansion Plan• 2008 EHV Overlay Study • Joint Coordinated System Plan• Cost Allocations in SPP
www.spp.org
4
SPP System: 230 kV and above
www.spp.org
5
Transmission Expansion
Amount of Transmission
Co
st
Congestion Management Cost
Transmission Expansion
Reliability
SPP Today
Infinite Bus
Minimum Transmission
Need for More Transmission
www.spp.org
6
Quote from MISO RECB Order Issued July 23, 2007
“We need a true nationwide transmission version of our interstate highway system; a grid of extra-high voltage backbone transmission lines reaching out to remote resources and overlaying, reinforcing, and tying together the existing grid in each interconnection to an extent never before seen. . . . Indeed I would tend to assume that a large multi-state 500 or 765 kV transmission line would not have much difficulty showing net benefits over a very broad region. . .”
• Suedeen Kelly, FERC Commissioner
www.spp.org 7
STEPWhat Is It?
www.spp.org
8
SPP Transmission Expansion Plan
• SPP Transmission Expansion Plan (STEP)• “Everything pertaining to transmission
development”
1. Generation Interconnection Upgrades
2. Transmission Service Upgrades
3. Reliability Standards Upgrades
4. Economic / Sponsored Upgrades
5. Planned Upgrades
6. EHV Overlay / JCSP +
www.spp.org
9
www.spp.org
10
www.spp.org
11
www.spp.org
12
SPP Generation Interconnections (KS)
SPP Wind Farm statistics based on nameplate capacities (KS data)• 1,800 MWs in-service (350 MW)• 2,100 MWs under construction (1,405 MW)• 1,600 MWs with signed IAs on suspension (549 MW)• 4,800 MWs with IAs pending/Facility Studies (1,555 MW)• 6,300 MWs with Impact/Feasibility Studies in process (2,953 MW)• Almost 32,000 MW with Feasibility Studies requested (7,702 MW)
Explosion of Generation Interconnection Requests • 161 active requests (14,639 MW of Wind in KS)• Significantly more wind than SPP peak demand
Generation Queuing Task Force (GQTF) • Limit queue• ID project milestones• Possible GI clustering
Target MOPC/BOD October meetings for recommendations
www.spp.org
13
Transmission Service Issues
FERC 890 compliance.
3rd party impacts, seams issues are problematic.
Aggregate Study Improvement Task Force (ASITF) recommendations approved by MOPC in April to expedite and improve the Aggregate Study process.
Proposing to pair AG studies to allow SPP to catch up in processing past and future requests.
www.spp.org
14
Reliability Standards Planning
NERC Reliability Standards match SPP Criteria. Projects needed for reliability are base plan funded with revenue requirement cost allocations of 33% to all loads and 67% to project benefactors as measured by MW-MI impacts.
Some members have stricter standards for load pockets. Projects to meet higher standards for TOs are eligible for zonal cost recovery.
Appropriate definition of reliability is being discussed to consider probabilistic metrics
www.spp.org
15
Economic Planning
Reliability and Economics are Inseparable
Economic Upgrades – sponsored under existing tariff but eligible for credits based on new service sold
Balanced Portfolio • Postage stamp cost allocations for a portfolio of
Economic Upgrades which benefit SPP as a whole, and for which each zone realizes benefits in excess of their costs
• Tariff language has been approved and filed at FERC• Balanced Portfolio in final stages of development
www.spp.org
1616
Portfolio 3Portfolio 3
www.spp.org
17
Portfolio 3-APortfolio 3-AIatan
Nashua
Seminole
Muskogee
El Dorado
Longwood
Chesapeake
Tolk
Reno CoSpearville
Wichita
ClevelandSooner
Anadarko XF
Swissvale – Stilwel Tap
SummitKnoll
Axtell
Potter
Substation UpgradeNew Transmission Circuit
www.spp.org
18
Portfolio 3-BPortfolio 3-BIatan
Nashua
El Dorado
Longwood
Chesapeake
Reno CoSpearville
Wichita
ClevelandSooner
Anadarko XF
Swissvale – Stilwel Tap
SummitKnoll
Axtell
Seminole
Muskogee
Substation UpgradeNew Transmission Circuit
www.spp.org
19
Adjusted Production Cost Results
• Results shown for both 345 kV and 765 kV construction (with 345 kV operation)
• 765 kV includes• Spearville – Knoll 765 kV• Seminole – Muskogee 765 kV
• Wind modeled at 2,600 MW (year end, 2008 levels)
2012Project Cost ($M)
Proj 10 Year SPP Benefit ($M) SPP B/C
Portfolio 3-A $585 $776 1.33 Portfolio 3-B $545 $693 1.27
Portfolio 3-A $761 $776 1.02 Portfolio 3-B $721 $693 0.96
345 kV Construction
765 kV Construction
www.spp.org
20
B/C Per Zone
(1.00)
(0.50)
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
AEPWEM
DE
GRDA
KCPL
MID
WM
IPU
OKGE
SPCIUT
SUNC
SWPS
WEFA
WEPL
WERE
Zone
B/C
(10
yr)
Portfolio 3a
Portfolio 3b
Portfolio Balance
1.0 = Balanced
www.spp.org
21
Next Steps on Balanced Portfolio• CAWG meeting tomorrow in Dallas• SPP Staff recommends that Portfolio 3 and 3-A be
used for future analysis• Future (2017, 2023) analyses • Scenarios
1. Higher Wind
2. Carbon Regulation• Impact on reliability plan (negative and
positive)• Leading portfolio moved forward to
construction
www.spp.org
2222
2008-2017 STEP
• 2008-2017 SPP Transmission Expansion Plan (STEP) approved by BOD in January 2008
• $2.2 B of transmission projects over 10 year horizon with almost $800M of transmission projects requiring financial commitments in 2008-2011 and $465M of major economic upgrades primarily in KS (costed at 345 kV)
www.spp.org
23
www.spp.org
2424
Updated EHV Overlay Study
• Quanta Technology Report posted at http://www.spp.org/section.asp?group=1216&pageID=27
• Analysis of Alternative 5 from original study does not support continued grid build out at 345 kV, but demonstrates that 765 kV solution is appropriate when wind penetration exceeds 4,600 MW
• Soliciting input from stakeholders on results to date, issues, concerns at [email protected]
www.spp.org
2525
New Wind in Updated EHV Overlay Study
Kansas 6,600 MW 31.9%
Missouri 750 MW 3.6%
New Mexico 300 MW 1.4%
Oklahoma 8,550 MW* 41.3%
Texas 4,500 MW 21.7%
TOTAL 20,700 MW 100% * Includes 4,450 MW in Oklahoma Panhandle
www.spp.org
2626
Potential EHV Overlay Mid-Point Design for 13.5 GW Wind
Potential EHV Overlay Mid-Point Design for 13.5 GW
Wind
www.spp.org
2727
Updated EHV Overlay Study Findings
Focus on midpoint designs to collect / deliver 13.5 GW of new wind in SPP• 5.5 GW to SPP• 3 GW to WECC via HVDC• 2.5 GW to northeast• 2.5 GW to southeast
$8 billion at $2 million / mile engineering and construction costs + $65,000 / mile for Rights-of-Way• 2,250 miles of 765 and 500 kV in SPP• Almost 600 miles of 765 kV in new
interconnections and connectivity in neighboring systems
www.spp.org
2828
2008 EHV Overlay Next Steps
• SPP Transmission Working Group supports further work• Scope being finalized to identify alternative plans and
sensitivities for economic analyses to be concluded in 4th Quarter 2008
• Review and incorporate new data, objectives, etc. as appropriate into concurrent plans• e.g., see DOE’s “20% Wind Energy by 2030” report released
May 12th at www.20percentwind.org. • Nebraska entities integration into SPP• Must be robust, flexible and coordinate with neighbors’ plans.
• Must demonstrate incremental value and merits of 765 vs. 345 kV overlay in SPP
www.spp.org
29
www.spp.org
30
www.spp.org
31
JCSP Next Steps
• Evaluate existing RPS baselines, as well as a 20% National RPS as part of 2008 NREL/DOE Eastern Wind Integration Transmission Study (EWITS)
• Next Meeting October 2 in Carmel, IN
• Studies will be used to demonstrate the value of bulk power transmission to harvest best wind resources in central plains, rather than build local wind to met local requirements.
• Check out www.jcspstudy.org
www.spp.org
32
Wind Integration Issues
• Operational issues / reliability concerns warrant further investigation to address wind integration challenges• Developing scopes of wind integration and penetration
studies
• Further dynamics and reactive compensation analyses required
• SPP staff / members involved in numerous industry initiatives on wind integration
• EHV build out, regardless of drivers, will require changes to power system planning and operations
www.spp.org
3333
Cost Allocations Are Key
• Cost allocations can be a barrier to effective transmission expansion planning, but need not be. Witness EHV expansion by South Central Electric Companies in the 1960s.
• FERC Order 890 is forcing industry to address this topic
• SPP Cost Allocation Working Group in process of finalizing recommendations on Balanced Economic Portfolio of 345 kV transmission expansion projects, primarily, with associated postage stamp cost recovery.
• Power industry can not afford to undervalue transmission anymore.
www.spp.org
3434
Reliability
Base Plan Funding
33% / 67%
Criteria or
Designated Resource
Transmission
2005
Economic
Balanced Portfolio
Postage Stamp
Benefits / Cost ≥ 1
345 kV and above
Filed on 08/15/08
EHV
Postage Stamp
765 kV
Work in Progress
www.spp.org
35
Questions?
