© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
New Challenges Facing System OperatorsStephen G. WhitleyPresident & Chief Executive OfficerNew York Independent System Operator
Past Present and Future of the Power GridA Cornell University workshop in honor of Robert J. ThomasIthaca, NYAugust 9, 2012
© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
Topics• Growth of the Grid• Renewable Resources• Demand Response• Advancing Technology• Regional Collaboration
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Growth of the Grid
Pearl Street Station distribution area, New York, Image 69231, Electricity & Modern Physics Collection. National Museum of American History - Smithsonian Institution
1882Pearl Street Station
59 customers
600 kW of generation
10.5 miles of main lines
2012New York Control Area
7 million electric utility customers
43,000,000 kWof generating capacity,
transmission capability & demand-response
11,000 circuit-miles of high-voltage transmission
© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
Looking Ahead• Integrating Renewable Resources• Empowering Consumers• Advancing Technology• Enhancing Collaboration
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Wind Power• 2006 – NYISO exempts wind from undergeneration
penalties as a variable energy resource• 2008 – NYISO establishes centralized wind
forecasting system established• 2009 – NYISO integrates wind into Economic
Dispatch system (First in nation)
Growing wind in NY… Wind-powered generating capacity in NY grew
from 48 MW in 2005 to 1,414 MW in 2012 Another 4,000 MW of wind projects proposed
for interconnection to NY grid
© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
2009 -- NYISO implements first market rules in US enabling storage systems to participate in the markets as frequency regulation providers
Energy storage complements development of variable energy resources
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Energy Storage
NY’s Energy Storage Firsts… First commercial grid-scale battery-based storage
system to operate as a generator in the US First full-scale flywheel energy storage facility to
provide frequency regulation service in the US
© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
2012 – NYISO exempts solar power from under-generation penalties to compensate solar fully for all energy production
Future – Market evolution for solar resources likely to parallel wind power initiatives
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Solar Power
Grid-scale solar in NY… The largest photovoltaic array in the
eastern US is the 32-MW Long Island Solar Farm at Brookhaven National Laboratory – completed in Nov. 2011
© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
Demand Response
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Shaving the Peak
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NYCA 2011 Peak DayWith & Without Demand Response
20,000
22,000
24,000
26,000
28,000
30,000
32,000
34,000
36,000
38,000
1 2 3 4 5 6 7 8 9 1011 12 13 1415 16 171819 202122 2324
Actual Without Demand Response
Actual Load with DR
Estimated Load without DR
July 2011 heat waves could have
pushed demand to over 35,000 MW
-- a new record peak -- had DR
programs not served to reduce
load by more than 1,400 MW
© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
Dynamic Pricing
NYISO/Brattle Group Study Dynamic pricing can encourage shift to off-peak usage Potential 10-14% reduction in system peak Market-based customer cost reductions of 2-5%
Impact of Dynamic Pricing on Hourly Loads
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Smart Grid Smart Grid Investment Grant (SGIG)
Three-Year project -- $74 Million (DOE SGIG funding of $37 Million to cover 50% of project cost)
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Project components Creation of a statewide Phasor
Measurement Network Installation of Capacitor Banks
Enhanced reliability PMU Installation one of key DOE recommendations
from 2003 blackout study endorsed by FERC and NERC
© 2000-2012 New York Independent System Operator, Inc. All Rights Reserved.
NYISO Infrastructure New state-of-the-art
primary control center in a facility adjacent to existing corporate center
Renovation of 42-year-old power control facility to serve as alternate control center Existing
Corporate Center
New Primary Power Control
Center
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Regional Collaboration• Broader Regional Markets
Address “seams” between regional markets and grid operations
Collaborative effort - NYISO, PJM Interconnection, Midwest ISO, ISO- New England, Ontario’s Independent System Operator and Hydro Quebec
More frequent scheduling can facilitate better regional integration of variable, renewable resources
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Interregional Planning
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Eastern Interconnection Planning Collaborative 25 electric system planning
authorities in U.S. and Canada representing 95% of Eastern Interconnection
Grassroots effort to integrate local planning interconnection-wide
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Moving Forward
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The New York Independent System Operator (NYISO) is a not-for-profit corporation
responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets,
conducting comprehensive long-term planning for the state’s electric power system, and
advancing the technological infrastructure of the electric system serving the Empire State.
www.nyiso.com