Sioshansi F.P. Smart Grid: Integrating Renewable, Distributed & Efficient Energy
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Chapter 10. Riding the Wave
Using Demand Response for Integrating Intermittent
Resources
Philip Hanser, Kamen Madjarov, Warren Katzenstein
and Judy Chang
1
1
The views expressed in this chapter are solely those of the authors and
should not be construed to be either those of The Brattle Group or those
of The Brattle Group's clients.
Chapter Outline
Introduction 235
Overview of System Operation Flexibility Issues 238
Wind Integration Studies and Ancillary Service
Requirements 241
Additional System Challenges 243
Load as a Flexible Resource – System Programs and
Experience 247
Structuring Load Control Products for Intermittent
Resources 251
Conclusions 254
References 255
495
Wind and solar power penetration is expected to increase dramatically over the next decade The chief
concern for system operators and planners is the effect of wind variability and unpredictability on
system operation and stability Although traditional generation resources can assist in this integration,
demand-side resources can also play a role This chapter reviews the operational and technical
challenges of integrating renewable generation and focuses on aspects of flexible operating services
such as load-following and regulation in the context of designing load-control products that
successfully provide such ancillary services This chapter further discusses traditional and new tools
that have been used in wind integration studies or the design of load-control products The chapter also
discusses the optimal use of demand response vs generation, the costs involved in deploying demand
response as an ancillary service resource, and the benefits of substituting it for generation
Smart grid, wind integration, intermittent energy
Introduction
Renewable power's share in total generation is expected to
grow significantly over the next decade and beyond. As of
early 2011, 29 U.S. states have adopted renewable portfolio
standards (RPS) and 7 states have established goals.
2
The
U.S. Energy Information Administration projects that the
share of generation coming from renewable fuels, including
conventional hydro, will grow from 11% in 2009 to 14% in
2035 (see Figure 10.1).
3
Furthermore, states like California
have established ambitious targets for the level of renewable
penetration for their electricity grids—California's target
stands at 33% renewable generation by 2020.
2
Source: Database for State Incentives for Renewables & Efficiency
(DSIRE) [1].
3
Annual Energy Outlook 2011 [2].
496
Figure 10.1
2009–2035 renewable electricity generation by energy source (billion kWh).
Source: Annual Energy Outlook 2011, U.S. DOE, EIA
System operators and planners have increasingly focused
their attention on the challenge of integrating these growing
quantities of renewable generation, primarily wind and solar.
Unlike conventional generation, wind and solar plants cannot
be dispatched on a predetermined schedule, and their output is
dependent on variable and largely unpredictable fluctuations
in weather conditions—wind, cloud cover, air temperature,
etc. This variability and unpredictability are the two principal
characteristics of wind and solar generation that affect power
system operations and reliability. To further complicate
matters, system operators are required to accommodate
renewable generation as a “must-take” generation resource
and allow it to deliver its variable and unpredictable output on
the system without significant curtailment. With growing
497
renewable generation penetration levels, therefore, the issues
of variability and unpredictability must be addressed in a
comprehensive manner.
The range and depth of issues associated with the integration
of significant levels of intermittent renewable generation have
become the focus of much attention, discussion, and research
for utilities, regional transmission organizations,
4
public
utility commissions, and other entities tasked with the reliable
operation of the grid. Over the past few years, a number of
studies by these entities have been completed. The North
American Electric Reliability Corporation (NERC) examined
the emerging importance of the operational and reliability
impacts that renewable resources may have on the grid in the
2008 report titled “Accommodating High Levels of Variable
Generation.”
5 and 6
Among the ISO/RTO reports are the 2007
CAISO Integration of Renewable Resources studies [3] and
that of 2007–2011,
7 and 8
the New England Wind Integration
Study (2010),
9
NYISO 2010 Wind Generation Study,
10
and
the Analysis of Wind Generation Impact on ERCOT
Ancillary Services Requirements (2008).
11
The utility studies
include the Minnesota Wind Integration Study (2006),
12
the
Wind Integration Study for Public Service Company of
Colorado (2006, 2008),
13
and the study, Operational Impacts
of Integrating Wind Generation into Idaho Power's Existing
Resource Portfolio (2007).
14
These studies, and many others,
have provided a range of tools and methodologies designed to
establish the needed changes in operational practices,
conventional resource procurement, and ancillary service
deployments.
4
Chapter 6 by Sanders et al, for example, discusses the issues confronting
CAISO with 33% RPS by 2020.
498
5
http://www.nerc.com/docs/pc/ivgtf/IVGTF_Outline_Report_040708.pdf.
6
One of the seemingly mundane operational questions faced is simply
creating a uniform approach to the reporting of renewable resource
outages and deratings that is comparable to that for conventional
generation. See http://collaborate nist.gov/twiki-sggrid/pub/SmartGrid/
PAP16Objective1/
NERC_GADS_Wind_Turbine_Generation_DRI_100709_FINAL.pdf.
7
http://www.caiso.com/Documents/
Integration-RenewableResourcesReport.pdf.
8
http://www.caiso.com/Documents/
IntegrationRenewableResourcesOperationalRequirementsandGenerationFleetCapabilityA
9
http://www.iso-ne.com/committees/comm_wkgrps/prtcpnts_comm/pac/
reports/2010/newis_es.pdf.
10
http://www.nyiso.com/public/webdocs/newsroom/press_releases/2010/
GROWING_WIND_Final_Report_of_the_NYISO_2010_Wind_Generation_Study.pdf.
11
http://www.uwig.org/AttchB-ERCOT_A-S_Study_Final_Report.pdf.
12
http://www.state mn.us/portal/mn/jsp/
content.do?contentid=536904447&contenttype=EDITORIAL&hpage=true&agency=Co
13
http://www.nrel.gov/wind/systemsintegration/pdfs/
colorado_public_service_windintegstudy.pdfhttp://www.uwig.org/
CRPWindIntegrationStudy.pdf.
14
http://www.idahopower.com/AboutUs/PlanningForFuture/WindStudy/
default.cfm.
499
While the reports differ in some technical aspects, each
recognizes that a large penetration of solar and wind
generation will result in a greater need for ancillary services
such as regulation and load-following. In addition, flexible
resources providing those services will be expected to exhibit
faster ramp rates and will be called on more frequently to
provide such services. Some studies have suggested that a
new type of regulation service might need to be defined in
order to recognize the faster response and faster ramping
capabilities that will be needed in the future. The Federal
Regulatory Energy Commission (FERC) has responded to
this last issue by issuing a proposal to create a new market for
regulation that rewards storage technologies for providing
such service.
15
15
Frequency Regulation Compensation in the Organized Wholesale Power
Markets, Notice of Proposed Rulemaking, 18 CFR 35 (Feb. 17, 2011),
FERC Stats. & Regs. 61,124 (2011) (NOPR). http://www.ferc.gov/
whats-new/comm-meet/2011/021711/E-4.pdf.
Fewer attempts have been made, however, to study in greater
detail the various roles that load can play in providing
ancillary services and thus actively assist in the integration of
renewable generation. This chapter provides an overview of
the nature of sub-hourly flexible operating reserves given
their growing importance in balancing intermittent generation
on the system grid. This chapter is organized as follows:
“Overview of System Operation Flexibility Issues” discusses
flexible operating reserves in the context of increasing
penetration of renewable generation; “Wind Integration
Studies and Ancillary Service Requirements” reviews
essential methodologies and tools deployed by wind
integration studies; “Additional System Challenges” and Load
500