Transcript THE TRES AMIGAS SUPERSTATION

UNITING THE NATION’S ELECTRIC POWER GRID
THE TRES AMIGAS
SUPERSTATION
Transmission Summit 2013
February 28, 2013
Project Value Creation
Connects the three US asynchronous power grids through a DC hub that can regulate the
direction and level of power flows between the grids
Provides economic incentives to further drive the growth of the nation’s renewable resources
Optimizes the value of existing and planned AC and DC/ HTS infrastructure
Provides open-access and cost-effective transmission services consistent with NERC
standards and regional reliability requirements
Provides voltage support, capacity firming and other value-added and ancillary services
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Scope of the Business
The Tres Amigas Transmission Superstation can be mapped against the NIST Smart Grid Conceptual
Model to illustrate the scope of the Tres Amigas business.
Transmission: The fundamental offering of
Tres Amigas is transmission service. From this
base it is possible to offer other services, both
to support stable system operations, in the
interconnected grids, and to facilitate
commercial transactions.
Operations: Tres Amigas Operations will
serve as the hub for both the transmission
operator and market/exchange services. It will
ensure reliability and interchange coordination,
and it will carry out a number of core market
functions necessary to support robust markets
Source: The National Institute of Standards and
Technology (NIST) Smart Grid Conceptual Model
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The Location: Regional Renewable Resource
Potential
Source: NREL
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From the 2010 Transmission Summit in
Sweetwater
w/ HVDC Proposals
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Site Location in New Mexico
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First Phase Scope of Construction
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Alstom Grid HVDC MaxSine Technology
•Voltage Sourced
Converter (VSC)
technology
•Modular multi-level
converter design
VSC HVDC scheme
+V
-V
+V
-V
= chain link module
•Control of real and
reactive power flow into
AC grids
•Harmonic free output
voltage
Ideal for use on weak AC
grids
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Folded Back-to-Back Convertor Layout
DC Bus Connections
Provides for AC and DC HTS
bus
interconnections
AC Bus Connections
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China: Current HVDC National Grid Plan
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Europe: Extended Grid Plan
• From Iceland
(Northwest) to
Israel (Southeast)
= 3,200 mi
• Concept of grid is
25,000 miles of line
Solar Power
Wind Power
Geothermal
Hydro
Biomass
Connections
already in place
or planned
Vision of ABB
and DLR
The new high-voltage network would range from the Sahara to the polar cap. The concept calls for main lines that are 40,000 kilometers long. And
parts of it already exist.
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Friends of the Super Grid Quote:
•“The full significance of a switchable HVDC innovation has not yet been
appreciated by policy makers or by the business community. It is clear that a
network incorporating a HVDC grid with the redundancy and reliability of current AC
grids is now a reality and that the limits of what is technologically possible have
been greatly expanded.”
•“HVDC technology will open markets, strengthen security of supply and create
another global opportunity for European companies to export sustainable energy
technology. The technology underpinning the Supergrid will give competitive
advantage to the companies involved with its specification and design. This type of
integrated AC/DC grid will be a template for what will be needed in other global
markets including the US and China.”
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Design
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Phase 1 & 2 Transmission Lines
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Products & Services - How Will Customers Use TA
Services?
Customer Action
Tres Amigas Service
Customer
ThirdParty
Local
Storage Genco
Genco
Load
Energy
Merchnt
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● Trade Execution (cash) &
Clearing (cash)
● Delivery Integration
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Buy and sell forward electricity and
RECs
● Trade Execution (forward) &
Clearing (forward)
● Market Information
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Offer ancillary services produced
from one interconnect into another
● PTP Transmission
● Ancillary Service Coordination
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Provide electricity storage services
● Direct Connection
● Energy Storage Management
Move electricity into market of
choice
● Direct Connection
● PTP Transmission
● Scheduling, System Control &
Dispatch
● Trade Execution (cash) &
Clearing (Cash)
● Delivery Integration
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Firm/shape renewable generation
● Firming & Shaping
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Utilize system control services
Scheduling, System Control &
Dispatch
Transport electricity from one
interconnect to another
Move electricity in/out of stationconnected storage
Buy and sell spot/cash electricity
and RECs
● PTP Transmission
● PTP Transmission
Purchase reactive power
● Voltage Control
Purchase other ancillary services
● Ancillary Service Coordination
(with AS providers)
DSM
ERCOT
PNM
SPP
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Products & Services - Operations Services
Tres Amigas Operations can be mapped against a generic electricity market structure, illustrating TA Operations
core functions – system operations, spot market operations and information services. Tres Amigas will most likely
engage an established clearinghouse to support forward trading and clearing.
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Products & Services - Transmission
Transmission service will be sold in blocks ranging from one to 20 years in duration, as well as on a seasonal,
monthly, weekly, daily and hourly basis.
20 years
Anchor Tenant
Agreements
Annual
Open Season
AT Auction
Annual Auction
Monthly
Daily
Hourly
Spot Sales
(via Portal)
Any available long-term firm capacity
Up to 50% of firm
capacity
remaining available firm
capacity after Anchor
Tenant Agreements
remaining available firm
capacity after Anchor
Tennant Agreements and
Anchor Tennant Auction
Additional short-term firm capacity
All non-firm capacity
Secondary trading of previously
purchased capacity
FIRM SALES
NON-FIRM SALES
Three distinct mechanisms will be used to sell transmission service:
• Negotiated, long-term ‘Anchor Tenant Agreements’
• Competitive ‘open seasons’, mostly for annual service, but also including
an initial ‘Anchor Tenant Auction’ for terms up to 20 years.
• Web-based real-time portal, for non-firm and shorter-term firm capacity,
with a duration less than one year (e.g. monthly, weekly, daily, hourly).
• Additionally, the real-time portal will facilitate a secondary market for Tres
Amigas customers to trade transmission capacity purchased previously.
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Development of the Price Coupling of
Regions (PCR) Initiative since 2009
Markets initially included in PCR - 2860 TWh
Markets which showed interest to join
Markets that could join next as part of an agreed European
roadmap
 2/3 of the European power
consumption is today
covered by 5 PXs only
* Source: UCTE 2007 power consumption data
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Integrated Clearing
Integrated Clearing
WECC
SPP
ERCOT
Clearing
Reports
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Funding – Tres Amigas Merchant Transmission
Unlike traditional transmission facilities, merchant transmission project owners assume all market risk.
Tres Amigas has been successful in receiving significant capital through investors and private
placements.
Phase II – III
1.5B
Phase I
500 M
2013
Preconstruction
12M
2012
Startup
8M
Concept
2M
2015
Phase II-III: construction & operations, Texas node, additional HVDC
converters, facilities, and business infrastructure
Phase I: construction & operations, East/West transmission node,
including HVDC converters, buildings and business infrastructure, EMS
Operations
Preconstruction: detailed engineering, vendor selection/contracts,
product development, additional filings and detailed business plans.
2010
Startup: research, regulatory and local filings, ROW, preliminary
engineering, environmental, economics and business plan.
2008
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Tres Amigas SuperStation….
Uniting the Electric Grid
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