Transcript Document
Demand-Side Management Influence on Reliability NERC Demand-Side Management Task Force (DSMTF) Rick Voytas, Chair November 2007 Presented To The U.S. Demand Response Coordinating Committeee National Town Hall Meeting Washington, D.C. June 3, 2008 1 DSMTF Initial Charter Review Current Data Collection methods. Review Energy Efficiency influence on reliability Evaluate existing DSM reliability performance metrics. Discussion and summary of the above tasks integrated into a White Paper for review by the 1. 2. ● Resource Issues Subcommittee Operating & Planning Committee at their December 3-4, 2007 NOTE: Subsequent NERC task force formed to delve into data collection metrics 2 DSM & NERC’s Data Collection Demand Side Management (DSM) Demand Response Dispatchable Controllable Capacity Ancillary EnergyVoluntary Energy Efficiency Non-Dispatchable Economic Time-Sensitive Pricing Time-of-Use Energy-Price NERC Currently Collects Data Critical Peak Pricing Direct Load Control Spinning Reserves Interruptible Demand Non-Spin Reserves Critical Peak Pricing w/Control Emergency Regulation Demand Bidding & Buyback Real Time Pricing System Peak Response Transmission Tariff Phase 2 Areas of Interest Load as a Capacity Resource Phase 1 Areas of Interest 3 NERC Definition Of Reliability 4 Reliability Discussion Continued - Avoided Capacity Concept – measured as the amount of capacity that can be displaced while meeting the systems reliability criterion. Avoided Capacity Cost vs Benefit Avoided Capacity Benefit ACB = (G + T) x D X CE G - avoided cost of generation in dollars per kW year (incl. fixed O&M) T – avoided cost of transmission in dollars per kW per year D – system coincident peak demand reduction associated with the program in kW CE – Capacity Equivalence of the potential program, expressed as kW of capacity value per kW reduced at system coincident peak 5 Avoided Capacity Capacity Equivalence What is Capacity Equivalence (CE)? Capacity Equivalence is the true capacity value of a program (DSM, DR, wind, hydro, etc) Bottom line: 1 MW of DSM ≠ 1 MW of Gas ≠ 1 MW of Coal Generation Why? The calculation of the amount of reserve MW at time of system peak may not provide an indication of the capacity, or load relief, that will be available throughout the entire year to meet customer requirements. Two important properties: Determined at system level with adjustments for reserve margin and distribution losses Varies according to the pattern of load relief afforded by the potential program 6 Avoided Capacity Capacity Equivalence Example using a DSM program that relies on AC reduction: ACME Utillity Company Max Capability Generation Coal plant #1 200 Coal plant #2 300 Combustion Turbine 50 DR program 50 600 TOTAL Customer Demand Percent Reserves Scenario #1 Summer 200 300 50 50 600 Scenario #2 Scenario #3 (1) (2) Winter 490 18% Winter 100 300 50 0 450 200 0 50 0 250 390 13% 390 N/A (1) plant #1 is sheduled for maintenance (2) plant #2 has an unforced outage short reserves! short capacity! 7 Avoided Capacity Reserve Margin History of Reserve Margin Earlier years of utility, “percentage reserve” evolved as the means for communicating the “reliability” of a utility system “Percentage reserve” at system peak established an amount of capacity in MW that would be available to the system at peak and throughout the year Problem: The amount of capacity actually available at any point in time would be reduced due to random forced outages and scheduled maintenance In 1978, many reliability councils adopt Loss Of Load Probability (LOLP) methodology Most reliability councils adopted the industry standard of .1 day per year (LOLP = .1) .1 day/year = 1 day in 10 years = one day in 2500 workdays Using a LOLP =.1, minimum reserve margins can be calculated 8 NERC Historical On-Going Metrics and Data Requirements 9