Kansas Community Wind Workshop Kansas Electric Cooperatives 28 Distribution Cooperatives 2 Generation and Transmission Cooperatives KEPCo Sunflower.
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Transcript Kansas Community Wind Workshop Kansas Electric Cooperatives 28 Distribution Cooperatives 2 Generation and Transmission Cooperatives KEPCo Sunflower.
Kansas Community Wind
Workshop
Kansas Electric Cooperatives
28 Distribution Cooperatives
2 Generation and Transmission
Cooperatives
KEPCo
Sunflower
All-requirements contract
Provides credit support for
generation/transmission component of
electric cooperative
Promotes equity among members
Can accommodate wind energy
Role of Rural Utilities Service
Community Wind
No single definition of Community
Wind
For discussion, definition does not
include typical residential/commercial
interconnection.
Residential >25 kw
Commercial >100 kw
Cooperative members in
Community Wind transaction
Member/owner of cooperative
Public Utility Consumer
Investor in community wind project
Landowner/investor wanting lease
payments
Cooperative members in
Community Wind transaction
Cooperative has legal obligation to focus
on:
Member/owner of cooperative
Public Utility Consumer
Cooperative has economic development
interest in supporting:
Investor in community wind project
Landowner wanting lease payments
Cooperative members in
Community Wind transaction
Cooperative must structure transaction
with Community Wind developer in a
way that will benefit the entire
Cooperative.
Can’t harm members in the name of
economic development.
Terms of agreement must be fair.
Specific issues in Community
Wind transaction
Interconnection
Operational and Reliability Concerns must
be addressed.
Price/buyback rate
Who can or will purchase energy?
What will price be?
All factors must be considered to determine if
project is viable.
Specific issues in Community
Wind transaction
Interconnection
Three party contract between
Transmission/Distribution owner, Southwest
Power Pool (if transmission provider), and
Wind Generator.
Address technical and operational issues
Interconnection issues in
Community Wind transaction
Technical and Operational issues
Safety of utility employees and the public—
IEEE 1547.
FERC protocols and procedures
Standardized contracts
Common industry considerations
Interconnection issues in
Community Wind transaction
Technical and Operational issues (cont.)
Purpose of interconnection
Offset localized electric load—simple
Place power on grid—more complex
Primary access to transmission.
Size of interconnected wind facility
Larger interconnects more complex
Localized system designed for reverse flows?
Interconnection issues in
Community Wind transaction
Technical and Operational issues (cont.)
Intermittency—Additional costs:
Requires load following in real time
Requires ancillary services such as load
balancing
Address issues in collaborative process with
interconnecting utility.
Price issues in Community
Wind transaction
Price/buyback rate
Compare apples to apples
What cost is offset by wind resource?
Gas—more expensive fuel.
Less than 5% of all generation in Kansas
Coal—less expensive fuel.
80% of generation in Kansas.
What is the availability of the wind resource?
Typical capacity factor for wind—40%
Typical capacity factor for coal—85%
Price issues in Community
Wind transaction
Price/buyback rate (cont.)
Avoided cost rates—PURPA
The cost of acquiring energy through another
source.
Other source in this case would be cost of
purchases or utility owned generation at the
same delivery point.
Each supplier will have different avoided cost at
each delivery point.
Price issues in Community
Wind transaction
Price/buyback rate (cont.)
Avoided cost rates—PURPA (cont.)
Intermittency (again). Avoided cost will look at
energy portion of cost, not demand.
Installation of new wind does not offset need for
capacity. Those costs are not avoided.
Interconnection Contacts
Sunflower Electric Power Corp.
Mr. Bob Johnson
Telephone: 785.623.3319
email: [email protected]
Midwest Energy
Mr. Bill Dowling
email: [email protected]
Kansas Electric Power Cooperative, Inc.
Mr. Les Evans
Telephone: 785.271.4839
email: [email protected]
Conclusion
Community of Interest
+
Communication
+
Collaboration
The best answer for all parties concerned!