ISO New England Overview · 2011. 1. 20. · ISO New England’s Core Responsibilities....

ISO New England Overview

Michael S. Giaimo, ISO New England William Ferdinand, Eaton PeabodyJanuary 20, 2011 Augusta, Maine

About ISO New England & Regional Grid

ISO New England • Private not-for-profit • Regulated by FERC• Created in 1997 • Independent of companies doing

business in market• Located In western Massachusetts

2

ISO New England Control Area Includes all

New England states

Excludes northern portion of Maine

Note: Map not to scale

ISO New England Briefing: Joint Energy, Utilities & Technology Committee January 20, 2011

© 2011 ISO New England Inc.

New England’s Electric Power SystemA Complex and Tightly Integrated System

3

400 miles650 km

320 miles520 km

• Population 14 million• 6.5 million residents/businesses• > 350 generators• > 5000 demand assets• > 8,000 miles high-voltage

transmission• 13 interconnections• > 31,000 MW of total supply • > 2,500 MW of demand resources• All-time peak demand of 28,130 MW



ISO New England’s Core ResponsibilitiesInterconnected and Interdependent

4

1. Operate the Power SystemMinute-to-minute reliable

operation of region’s generation and transmission system

2. Administer Wholesale Electric Markets Oversee region’s wholesale marketplace for energy, capacity and reserves

3. Power System

PlanningEnsure reliable and

efficient power system to meet current and future

power needs



ISO’s Major Responsibilities1. Operate the Power System

– Maintain minute-to-minute reliable operation of region’s power grid

– Perform centralized dispatch of the lowest-priced resources

– Coordinate operations with neighboring power systems

2. Administer Wholesale Electric Markets– Administer New England's wholesale electricity markets

• Energy, Capacity and Reserves

– Internal and external market monitoring

5

ISO’s Major Responsibilities

3. Power System Planning– Administer requests for

interconnection of generation, and regional transmission system access

– Conduct transmission system needs assessments

– Develop 10-year transmission plan to ensure a reliable and efficient power system if market responses do not fully address system needs

6ISO New England Briefing: Joint Energy, Utilities & Technology Committee

January 20, 2011 © 2011 ISO New England Inc.

Regional Success a Function of Stakeholder Participation

NESCOE

New England

Governors’ Conference

NEPOOL Participants

Consumer Advocates & Attorneys

General

Consumer Liaison Group

NECPUC

• Comprehensive stakeholder involvement and participation has helped region achieve success– Six states and market

participants actively engaged in regional stakeholder process

– Competitive markets stimulate investment in transmission, generation and demand resources

– More efficient and cleaner generation developed

– New transmission allows for economic dispatch



Transmission Projects Maintain Reliability $4 Billion invested since 2002, $5 Billion on horizon

8

4

5

12

7

9

8b

3

6

101. Southwest CT Phase I2. Southwest CT Phase II3. NSTAR 345 kV Project, Phases I & II4. Northwest Vermont5. Northeast Reliability Interconnect6. Monadnock Area7. New England East-West Solution8. Southeast Massachusetts

a. Short-term upgradesb. Long-term Lower SEMA Project

9. Maine Power Reliability Program10.Vermont Southern Loop

In service

Under construction

Under study

DOE highlights progress in New EnglandIn the Energy Policy Act of 2005, Congress directed the U.S. Department of Energy to conduct a study every three years

on electric transmission congestion and constraints.

In its latest (2009) study, DOE dropped New England from its list of “Congestion Areas of Concern” citing the region’s

success in developing transmission, generation, and demand-side resources.

8a



Regional Transmission Cost Allocation

9

ME 8.6%

NH 9.1%

VT 4.2%

CT 25.6%

RI 6.9%

MA 45.6%

Percent of 2009 Network Load by State



Demand Resources Growing in New EnglandMaine among leaders in DR activity in region

CT 930

VT 148

MA 1,379

NH 129

ME 444

RI 231

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Capacity(MW)

FCM

2010/11–2013/14: Total DR cleared in FCAs 1–4 (New and Existing); Real-Time Emergency Generation capped at 600 MW.

10

Enrollment in ISO programs prior to start of FCM



New Generation Additions in New England10,800 MW added since 1999; plus 3,600 MW committed for 2010-2014

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Capacity (MW)

Annual Additions Cumulative Additions

FCM

■ New Supply Cleared for FCAs 1–4



New England Capacity by Fuel TypeSummer 2010

Natural Gas13,181 41%

Oil, 6,866 , 21%

Nuclear4,629 15%

Coal2,756 9%

Pumped Storage1,679 5%

Hydro1,712 5%

Other1,142 4%

Total: 31,965 MW

12

Source: RSP10. Values shown in megawatts (MW) and percent (%). “Other” includes landfill gas, other biomass gas, refuse, wood and wood waste, wind, and misc. fuels.



Electricity Prices Follow Natural Gas PricesNatural Gas represents approximately 42% of region’s energy

13

$0

$4

$8

$12

$16

$20

$24

$0

$20

$40

$60

$80

$100

$120M

ar-0

3A

ug-0

3Ja

n-04

Jun-

04N

ov-0

4A

pr-0

5S

ep-0

5Fe

b-06

Jul-0

6D

ec-0

6M

ay-0

7O

ct-0

7M

ar-0

8A

ug-0

8Ja

n-09

Jun-

09N

ov-0

9A

pr-1

0S

ep-1

0

Gas

Pric

e ($

/MM

Btu

)

RT

Hub

LM

P ($

/MW

h)

Real-Time LMP Natural Gas Price



Average Day-Ahead Wholesale PricesMaine traditionally lowest average Day-Ahead and Real-Time wholesale prices in the region

0102030405060708090

Hub CT ME RI VT NH SEMA WCMA NEMA

2007 2008 2009 2010 (Jan-Nov)

$/M

Wh

Average Day-Ahead Wholesale Prices



Shift in Region’s Fuel Mix

• New highly efficient natural-gas-fired generators have displaced use of fuel oil

• Generator emissions rates have declined over the past decade– SO2 rate 67%– NOX rate 62%– CO2 rate 12%

21.8% 42.4%

14.8%

0.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2009

Sources of Energy

Other

Hydro

Pumped storageCoal

Nuclear

Oil

Nat. Gas



Regional Fuel Mix Will Continue to Change

• Generation fleet in region getting older – Currently over 8,600 MW of

generation are 30+ yrs old

• Factors that may expedite plant retirements:• Transmission improvements • Energy Efficiency• Demand Resources• Natural gas • Renewables

16

Age as of 2030 Total MW of Coal and Oil Units

> 50 years old 8,600> 60 years old 4,300> 70 years old 1,200

Looking Forward



Hydro, 33, 1%

Biomass, 431, 13%

Landfill Gas, 34, 1%

Wind, 2836, 85%

MW Renewables in January 2011 Queue by Fuel Type

17

Renewable Projects Proposed by Fuel Type+3,300 MW of Renewables in ISO Queue, Wind dominant fuel

Includes: Landfill Gas, Hydro, Wind , Solar and Biomass. Pump Storage projects in the ISO Queue are not included.



Renewable Projects Proposed by State

MA, 719, 21%CT, 38, 1%

NH, 356, 11%

VT,222, 7%

RI, 598, 18% ME Hydro, 6, 0%

ME Wind, 1336, 40%

ME Biomass, 60, 2%

Maine, 1400, 42%

MW Renewables in January 2011 Queue

REGION MAINE

18

Includes: Landfill Gas, Hydro, Wind , Solar and Biomass. Pump Storage projects in the ISO Queue are not included.



Renewable Resources Remote from Demand Transmission development can help stimulate renewables

19

Wind zones

Electricity Demand

• Population and electricity demand concentrated in southern New England

• Wind resources do not overlap with high demand areas



Maine State Specific Information

• Represents approximately 9% of the region’s population; and represents 9% of region’s energy use

• ISO forecasts, on average over next decade– Overall electricity demand will annually grow

• .9%; consistent with .9% regional average– Peak electricity demand will annually grow

• 1.5%; slightly above 1.4% regional average

• Natural Gas and Oil represent approximately– 60% of regional generation capacity and 70% of Maine’s capacity



http://www.google.com/imgres?imgurl=http://pursuitmag.com/wp-content/uploads/2010/08/maine.jpg&imgrefurl=http://pursuitmag.com/maine-licensed-private-investigators-association-mlpia-to-host-annual-seminar-in-portland-me/&usg=__SFC6-4BI42PQy_rbcK08DXFEvvI=&h=333&w=500&sz=49&hl=en&start=8&zoom=1&itbs=1&tbnid=I82WZRS_bJ_MiM:&tbnh=87&tbnw=130&prev=/images?q=maine&hl=en&sa=N&tbs=isch:1

Maine’s Supply, Demand, and Fuel Mix

Natural gas 45%,

Oil, 26%

Hydro, 18%

Other, 11%

1914 MW

2315 MW

0

500

1000

1500

2000

2500

3000

3500

4000

2010 Generating Capacity

2010 Actual Peak Demand

2019 Projected Peak Demand

3400 MW

21

11% of regional generating capacity



Looking forward …

• Region has benefited from regional system planning and competitive markets– Expanded transmission development– New generation and demand resources– Economic and environmental benefits

• Region has strong renewable potential – Additional transmission may be required– The addition of renewables may accelerate the retirement of older

fossil-fired generation– States will decide renewable policies



ISO New England Overview�About ISO New England & Regional Grid �New England’s Electric Power System�A Complex and Tightly Integrated SystemISO New England’s Core Responsibilities�Interconnected and InterdependentISO’s Major ResponsibilitiesISO’s Major ResponsibilitiesRegional Success a Function of Stakeholder Participation�Transmission Projects Maintain Reliability �$4 Billion invested since 2002, $5 Billion on horizon �Regional Transmission Cost AllocationDemand Resources Growing in New England�Maine among leaders in DR activity in regionNew Generation Additions in New England�10,800 MW added since 1999; plus 3,600 MW committed for 2010-2014New England Capacity by Fuel Type�Summer 2010Slide Number 13Average Day-Ahead Wholesale Prices�Maine traditionally lowest average Day-Ahead and Real-Time wholesale prices in the regionShift in Region’s Fuel MixRegional Fuel Mix Will Continue to ChangeRenewable Projects Proposed by Fuel Type�+3,300 MW of Renewables in ISO Queue, Wind dominant fuelRenewable Projects Proposed by State Renewable Resources Remote from Demand �Transmission development can help stimulate renewables�Maine State Specific InformationMaine’s Supply, Demand, and Fuel Mix�Looking forward …

ISO New England Overview · 2011. 1. 20. · ISO New England’s Core Responsibilities....

Documents

Transcript of ISO New England Overview · 2011. 1. 20. · ISO New England’s Core Responsibilities....