Integrating Wind on Weak Grids – CREZ Panhandle Region Sharyland Utilities July 16, 2014

Background In parallel with the ERCOT PREZ Study, Sharyland has been evaluating the transmission system performance in the Panhandle region, specifically: Including generation resources meeting Section 6.9 of the ERCOT Planning Guides Completing steady state voltage security, transient voltage stability and system strength assessments for the Panhandle region with updated generation models Including the trigger levels identified in the ERCOT PREZ study report Evaluating the assumptions of the 2400 MW Panhandle export limit and the corresponding 2,160 MW used in the ERCOT economic study

Sensitivity analysis around 200 MW @ Ogallala Evaluated Background ALIBATES WINDMILL TULE CANYON COTTONWOOD GRAY 0 MW 500MW 750MW 400 MW 559MW 355 MW AJ Swope OGALLALA 299 MW RAILHEAD WHITE RIVER Sensitivity analysis around 200 MW @ Ogallala Evaluated Panhandle WGRs meeting Section 6.9 of ERCOT Planning Guide (May 2014)

Investigation Objectives Update steady state and dynamic analysis based on the latest set of generation resources meeting Section 6.9 requirements of the ERCOT Planning Guide Evaluate ability of the as-is CREZ Panhandle transmission system to accommodate the units meeting the ERCOT requirements Perform futuristic steady state voltage security, transient voltage stability and system strength assessments for the following scenarios 2nd circuit on the Alibates – Windmill – Ogallala – Tule Canyon loop Large re-furbished SCs (320/250 MVAR) Two (2) 50 MVAR SCs Two (2) 100 MVAR SCs Any other combinations derived from the Composite Short Circuit Ratio (CSCR) assessment Key issues addressed by the analysis to date Is the current system adequate to accommodate the resources meeting ERCOT Planning Guide Section 6.9 requirements (“FC Units”) from steady state and dynamic standpoint

Investigation Objectives Key issues addressed by the analysis to date Cost effective system additions required to accommodate FC Units + Signed IAs (with 2014 and 2015 COD – 4545 MW) Evaluate effectiveness of 2nd loop only Evaluate effectiveness of large re-furbished SCs only Evaluate a combination of large re-furbished SCs and 2nd loop Evaluate minimum amount of SC required to accommodate 4545 MW of generation in the Panhandle (in addition to the 2nd loop) System Strength Assessment Composite Short Circuit Ratio (CSCR) analysis for FC Units Comparison with ERCOT’s WSCR approach CSCR analysis for FC Units + Signed IAs (with 2014 and 2015 COD) Additional SC requirements to ensure a minimum CSCR threshold to prevent control instability due to weak system conditions Discussion on the “minimum CSCR/WSCR threshold” requirement Wind turbine vendor survey – distinguish between POI SCR and CSCR/WSCR Evaluate other options available in the industry for integration of wind generation to weak grids

Short Circuit Ratio Assessment Study Approach Composite SCR analysis performed to evaluate the following: Assess the CSCR levels associated with Panhandle generation limited to FC units Evaluate the Panhandle generation levels with FC units + Signed IAs (with COD of 2014 and 2015) Identify adequate CSCR threshold level (for control stability) and associated SC requirements Composite SCR definition Model the gen tie line and the 34.5/345kV station transformer(s) associated with each WGR for the specific scenario Gang the 34.5kV buses across all WGRs for the specific scenario (with a zero impedance connection) Note that the fault contribution from the WGRs themselves is not included Utilize the short circuit MVA on the 34.5kV bus in conjunction with the WGR capacity (MW) to determine CSCR Perform the CSCR analysis across contingency conditions associated with loosing interfaces between Panhandle region and remaining ERCOT system

Short Circuit Ratio Assessment Composite SCR Analysis – Illustrative Example

Short Circuit Ratio Assessment Composite SCR Analysis – Panhandle Region – FC Units, 3263MW (assuming Xs=Xd” = 0.2 per unit based on data from CREZ Reactive Power Study) Composite SCR Analysis – Panhandle Region – FC Units + Signed IAs (2014/15), 4545MW

Dynamic Assessment CREZ Panhandle Dynamic Assessment – Summary Results

Dynamic Assessment Scenario 2-a, Sustained Oscillations, Tule Canyon – Tesla DBL Outage

Dynamic Assessment Scenario 2-j, Damped Oscillations, Tule Canyon – Tesla DBL Outage

Short Circuit Ratio Assessment Comparative Analysis, Composite SCR Vs ERCOT Proposed Weighted SCR Approach

Key Investigation Needs – System Strength Issues Discussion around the “technical basis” for identification of WSCR/CSCR threshold requirement for Panhandle Important to differentiate between POI SCR requirements (turbine manufacturers typically specify this) and system level or super-node SCR requirements Limited experience across industry (including manufacturers) in relating system level SCR requirements to control stability – this is a system level requirement Sharyland developed survey for various wind turbine manufacturers Request minimum POI/terminal SCR requirements to ensure control stability Provide illustrative example of WSCR and/or CSCR approach Request commentary on minimum WSCR/CSCR requirements - if vendors can comment on this Survey spanned all major turbine vendors expected to comprise Panhandle WGRs Sharyland passed survey by ERCOT prior to distribution to turbine vendors and intends to share results with ERCOT also Other options being explored by Sharyland to provide “safety margin” on Panhandle weak grid issue Weak grid model provided by certain turbine vendors – tuned controls specifically for weak grid conditions Observed to have material impact on voltage recovery and alleviates control stability oscillations

Key Investigation Aspects for Future Voltage (pu) Dynamic VAR Issue or System Strength Issue?

Key Investigation Aspects for Future Weak Grid Control assists in voltage recovery and damps oscillations but does not eliminate oscillations for 100% dispatch CREZ Panhandle Voltage Response w/o and with Weak Grid Control

Key Discussion Points Over-all CREZ Panhandle voltage stability and adequacy of various solutions presented by Sharyland not the focus of discussion at this workshop Investigations performed by ERCOT & Sharyland have demonstrated potential control instability issues in the Panhandle due to low SCR and weak grid conditions Synchronous Condensers have been proposed as one of the potential solutions for boosting system strength Amount and nature of SCs required are a function of the desired system strength Sharyland stressed on the need for a “technical basis” to arrive at a threshold for the CSCR/WSCR to be utilized for determining any additional equipment requirements Sharyland also requested ERCOT to evaluate other options Weak grid models for turbines expected to be utilized in the Panhandle Wind turbine vendor survey – Sharyland conducted one and summary results are presented in this discussion Any other technical analysis to further investigate the cause and potential mitigation for control instability oscillations stemming from weak grid conditions Combination of weak grid models, SCs and other mitigation options expected to require close collaboration between WGRs and the operating TSP in the region

Wind Turbine Vendor Survey - Summary Survey Request #1: Provide the minimum network SCR requirements at the POI that can be adequately handled by your wind turbine(s) when utilizing standard controls, without any control instability issues. If the turbine vendor has performed some tests to demonstrate the adequacy of the standard controls for the said SCR threshold, Sharyland requests documentation of the same. Wind Turbine Vendor Response Response #1 – 1.7 @ 34.5kV station (so SCR limitations at POI will be higher and depend on the impedance between the 34.5kV and POI) Response #2 – Current design based on an SCR of 5 or greater at the medium voltage bus (although could go lower if required and based on specific designs) Response #3 – Anywhere between 1.5 and 2.5 depending on the implementation of control modifications (or not)

Wind Turbine Vendor Survey - Summary Survey Request #2: Turbine vendors offer “weak grid” versions of their turbine controls (both in terms of model and actual variations in controls in the field) that are specifically designed for turbines that are expected to connect to weak grids. In relation to the above, please provide the following information: Does the turbine vendor support a “weak grid” version of the turbine? Response #1 – Site specific studies may allow vendor to go lower than standard Response #2 – Vendor has developed control parameters for low SCR applications (as low as 1.5) and applied them as needed Response #3 – No, currently there is no specific WTG version for weak grids marketed at this time Are the modifications required to derive a “weak grid” version limited to firmware upgrades for control loop settings or does the vendor anticipate major changes in the turbine design to derive the weak grid version? Response #1 – Modifications made to the plant were strictly software settings Response #2 – Mainly software changes, but improved HW filtering may be needed Response #3 – Limited to control changes

Wind Turbine Vendor Survey - Summary Survey Request #2: Turbine vendors offer “weak grid” versions of their turbine controls (both in terms of model and actual variations in controls in the field) that are specifically designed for turbines that are expected to connect to weak grids. In relation to the above, please provide the following information: Does the turbine vendor have a “Weak grid” model in PSS/e to be studied as part of the planning studies? Response #1 – Vendor’s experience that weak grid instabilities cannot be simulated accurately in PSS/E. Although most of the setting modifications associated with weak grid operation can be implemented in the PSS/E model, the basic instability associated with weak grid interconnections (i.e., oscillatory instability) cannot be simulated reliably in a simplified positive sequence model like PSS/E. Response #2 – Model is the same but some parameters will be tuned Response #3 – Vendor doesn´t have a special PSSE model of weak grid connections Can the turbine vendor confirm that this weak grid version has been deployed successfully in the field in some part of NA or across the world with similar weak grid issues? Response #1 – N/A Response #2 – Yes, with an SCR of 1.3 for several months now Response #3 – Yes, with an SCR of 1.5 as reported in publications

Wind Turbine Vendor Survey - Summary Survey Request #3: Provide the minimum CSCR requirements for a region such as the Panhandle based on the representative example provided in Appendix A Response #1 – Use of a single simplified regional parameter of merit, like the CSCR or WSCR, can lead to incorrect conclusions, particularly if mixed technologies (e.g., full converter and DFIG) are used. Hence no recommendations Response #2 – 1.7 standard. Will need site specific studies to determine how much lower we can go. Response #3 – 5 (POI SCR) along with additional comment that dynamic simulations are needed to clarify the impact of other WPPs in the area and come with a final number. No comment on CSCR threshold Survey Request #4: Provide the minimum WSCR requirements for a region such as the Panhandle based on the representative example provided in Appendix B Response #1 – 5 (POI SCR) along with additional comment that dynamic simulations are needed to clarify the impact of other WPPs in the area and come with a final number. No comment on WSCR threshold Response #2 – Information to answer request is not available. A special Panhandle area specific study will be needed to determine the answer to this question. Response #3 – Use of a single simplified regional parameter of merit, like the CSCR or WSCR, can lead to incorrect conclusions, particularly if mixed technologies (e.g., full converter and DFIG) are used. Hence no recommendation

Additional Investigation by Sharyland CSCR/WSCR “purely indicative metrics” of potential control instability when viewed in isolation Additional uncertainty due to absence of any industry standard on “comfortable thresholds” for such metrics Such metrics are also system dependent since both CSCR and WSCR are not based on a single POI location albeit on a combination of few stations (weak region of the grid) Hence the “non-committal” response on CSCR/WSCR limits by turbine vendors Need to further develop a “technical theory” that links WSCR/CSCR with necessary/sufficient conditions for damped and/or growing oscillations Key ingredients for development of such a theory Voltage controller gain estimation – As viewed from the grid System strength estimation – As a function of volt-VAR variation Under varying conditions of interest i.e. critical contingencies Linking the above to system strength and SCR conditions Arrive at necessary and sufficient condition for damped system oscillations Possibly also at the same N&S condition for un-damped system oscillations DNV GL/PWR Solutions, in collaboration with Sharyland, will present an overview of such a “technical approach

Questions ?