Electricity Infrastructure: Overview and Issues (2) H. Scott Matthews February 5, 2004
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Electricity Infrastructure: Overview and Issues (2) H. Scott Matthews February 5, 2004 Admin Issues HW #2 Out Today Semester Projects Groups of 1 or 2 (max) Topic on managing infrastructure Pricing can be component but should have higher-level, decision type model Recap of Last Lecture Source of energy changed dramatically in 100 years in US Now mostly fuel for transport, elec all else Electricity still mostly fossil fuel dependent Nuclear / renewables still very limited Electricity grid has developed as needed over time with changing requirements/demands affecting it Interstate Commerce (IC) In early US history, states treated each other like foreign countries Taxes, licensing, port restrictions, etc. States had their own agreements with foreign countries (e.g. Britain) This activity was not in ‘spirit of Union’ Constitution gave Congress power to regulate IC (as well as foreign nations) Note regulate was intended to mean “make uniform” Electric “Utilities” (Utils) Electricity businesses eventually crossed jurisdictional lines and became regulated Economies of scale - cheaper to have many users Regulated as “natural monopoly” Strategy was vertical integration (ownership of all local pieces - generation, trans, dist) Started to interconnect - helps reliability, cost Easier to regulate, but hard to control price Recently USA decided to ‘deregulate’ and push for wholesale markets to trade power End result: electricity sent over longer distances and through more systems than originally designed for System Statistics (End 2000) 127 million “customers” (all sectors) Total electric power demand = 3500 TWh/yr Number of power plants Non-utility: 6500 units, 208 GW (growing - dereg) Utility: 9350, 600 GW 154,000 miles of AC transmission lines 3,300 miles of DC transmission lines Next 10 yrs: 6% transmission (line-miles) growth, but 20% capacity/demand growth Not a problem, if plants sited near demand But, of course, its not! http://www.eia.doe.gov/oiaf/aeo/ Electric System Challenges Unique Instantaneous management of supply and demand Imagine having built infrastructure that dynamically reconfigured itself to get you to your destination efficiently, without delay Maintain 60Hz frequency Passive Transmission Few control valves Just open and close switches to dispatch transmission lines Implications Every action can affect everyone else Need to coordinate Cascading problems Need to be ready for next contingency dominates design “what Flows fast if” planning near speed of light - need to act Diagram of U.S. Electric Power Grid Removed Due to National Security Implications (Seriously!) Blackout of November 9, 1965 By 1965, electricity part of everyday life Most of NE US (and Canada!) dark Sign that we were not managing well Six days to realize source of problem 1 relay failed at station in Canada (Niagara Falls) Caused transmission line to go ‘open’ Caused series of cascading failures all the way back to New York City Took only 15 minutes to blackout NE US Caused people to rethink dependence Until then, power systems design geared around ‘isolation’ to prevent damage As a Result of 1965 Blackout.. Consumers made contingency plans As did firms and large industrial users At high/policy levels, coordinating entities were formed to manage North American Elec. Reliability Council (NERC) New York Power Pool (NYPP) Developed industry equipment standards Developed reserve gen. capacity Interconnection and reliability methods Isolation had led to islands/points of failure Now we more heavily ‘network’ the system so there are multiple paths for power to flow NERC Voluntary organization to promote reliability Alternative to being regulated Sets standards, collects data, etc. No longer sufficient after dereg. Three major interconnected power systems in US that coordinate actions to keep reliability QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Reliability Components Adequacy Does (projected) Supply = Demand? A long-term planning process Security Robust NERC system against failures (short-term) transitioning to have enforcement power to meet reliability Electric Power ‘Jurisdiction’ FERC - Fed Energy Regulatory Comm. Regulates trans/sale of energy and fuels Electricity : regulate bulk power Oversees environmental issues Budget from fees to regulated firms NERC (already done) Control Areas - fundamental entity (150) Vary: PJM (50,000 MW) others 100 MW Regional Reliability Councils (10) Interconnects (3) Note State PUCs not mentioned Deregulation Effects Transmission built primarily over 100 years by vertically integrated utilities Dereg. sought to lower elec prices by: Originally built close to fuel supply Recap: at first only local transmission built Some interconnections built for reliability, relief Utils cooperated - in mutual best interest Making capital available for new capacity Increasing efficiency of operations Trans. grid ‘interstate’ for wholesale electricity But highway congestion just means delay Electric transmission congestion = lost energy! Deregulation (cont.) Now > 50% of power sold wholesale first Congestion - demand & construction of new generation not matched with new trans. What happened in California? Depends! Incentives to cooperated reduced Imbalance in supply/demand - not much new supply approved for construction, demand higher Big part of problem was faulty market design Lack of adequate transmission for competitive power to come into market to ease prices 1996: FERC opened ‘wires’ to non-utilities Basically opened market to competition Energy Policy Act - 1992 1980s: electricity trading had taken off Act pushed trading: Gen & Trans competition Non-utils to have power plants By 1998: nonutils 13% market share Don’t forget regulatory process! Called Independent Power Producers (IPP) Congress : laws + authority, implementation : agencies FERC Order 888: encouraged ISOs Independent System Operators Independent of commercial interests Could own no generation Recent changes ISOs - Independent System Operators Open and fair access to regional grid; nondiscriminatory governance structure; facilitating wholesale electric rates; independent - don’t own gen/trans 1999: FERC Order - RTOs Regional transmission organizations Factors for Transmission and Distribution Losses Location of generating plant and load connection points (how close to demand) Types of connected loads Network configuration Voltage levels and voltage unbalance Dynamic factors (e.g. power factor, harmonics, control of active and reactive power) Length of the lines - almost linear relationship Current in line - a square law relationship Design of lines, particularly the size, material and type of cables California / US about 10% Cost Issues Average electricity price 7 cents/kWh Decreasing by new const and coal prices Expected demand growth 2%/yr til 2020 Transmission costs ~10% of total cost Resulting bottlenecks cause short-term price increases and thus higher costs! Problem areas California, PJM, NY, New England $500M / yr in these areas alone Management Metrics Capacity Margin = Generation/Demand Base load - min. amount electricity required over a given time interval, at steady rate Peak load - max load requirement during a given time interval Intermediate load - between base & peak Energy Balance for Typical Coal Plant Energy Balance for Typical Coal Plant http://www.energy.qld.gov.au/electricity/infosite/elec&env7/roleofenergy7_3/ efficiencyinpowerstat/energylosses/energylosses.htm QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.