GHG, Renewables, and Reliability IEP ANNUAL MEETING SEPTEMBER 29, 2015 Carrie Bentley Resero Consulting

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Presentation transcript:

GHG, Renewables, and Reliability IEP ANNUAL MEETING SEPTEMBER 29, 2015 Carrie Bentley Resero Consulting

It’s not about reliability- it’s about reliability through markets  The ISO can maintain grid reliability through manual dispatch and procurement  Energy: exceptional dispatch, pro-rata curtailments  Capacity: risk-of-retirement backstop mechanisms  Manual intervention is only a short-term solution  In the long-term the ISO must adapt the market to transparently and competitively price all resource capabilities needed for grid reliability

State policy green goals affect the energy and resource adequacy markets  Energy market:  Directly increase the variable costs of thermal generation  Indirectly lower the variable costs of renewable resources  Resource Adequacy:  Lower demand for thermal generation  Increase in demand for renewable resources

Energy and reserves are not the only products needed to maintain grid reliability  The grid can no longer take for granted that the bulk of the fleet will provide sufficient:  Ramping capabilities – upward and downward  Frequency response  Voltage support  Short start-up and shut-down capabilities  These needed grid attributes are not currently priced in the energy market

Markets and planning must change to account for state policy green goals  ISO has many initiatives/processes that are in response to grid reliability challenges:  Frequency response, Reactive power, FRAC MOO II, Flexible Ramping Product, EIM and Pac integration initiatives, LTPP, Interconnection enhancements…  If you are only going to follow two ISO initiatives;  FRAC MOO – flexible resource adequacy capacity requirement  Flexible Ramping Product – energy market enhancement to compensate for flexible ramping

What does the grid look like in years?  There is a need to question big assumptions and let the little assumptions go  Are all new wind and solar resources built between now and 2030 going to self-schedule?  Is economic curtailment of renewables a bad thing?  How much can the grid rely on imports and exports for balancing and flexible ramping, i.e. what are the physical constraints?  How much should the grid rely on imports and exports for balancing and flexible ramping?