Minimizing Bulk Power Costs Study - SPP

© ABB Group August 23,2010 | Slide 1

Minimizing Bulk Power Costs Study in the Entergy System

Entergy Regional State Committee (ERSC)Southwest Power Pool (SPP)

November 17, 2010

ABB Inc. , Electric System Consulting Dept.

ERSC

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Minimizing Bulk Power Costs Study

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RMR Plants in the RFP

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Minimizing Bulk Power Costs Study

Objective

“Determine what (if any) transmission expansion, reconfiguration, and/or

upgrades can reduce the production costs of generating units that

Entergy operates as must-run”.

Specifically, identify transmission projects which are cost

effective and meet Transmission Reliability Criteria for:

(1) Displacing those Reliability Must-Run (RMR) generating

units which are presently required to be committed and dispatched

for either voltage support or prevent overloading of transmission

lines, upon contingencies (including base case)

and/or

(2) Displacing those generating units that Entergy operates to

provide “flexible capacity” (e.g., load-following, operating reserves).

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Economic Comparison of Benefits and Costs

FINDING AN OVERALL and ACCEPTABLE BALANCE

RELIABILITY COST

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Study Approach - Overview

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Study Tasks

Task 1 – Develop Data base and System Models

Task 2 – Transmission Analyses with RMR Unit

Task 3 – Transmission Analyses w/o RMR Unit & no Transmission Change

Task 4 – Transmission Analyses w/o RMR Unit & Transmission Change

Task 5 – Production Cost Simulation with RMR Unit

Task 6 – Production Cost Simulation w/o RMR Unit & no related Transfer Limit Constraint

Task 7 – Production Cost Simulation w/o RMR Unit & with Transmission Changes

Task 8 – Economic Comparison of Benefits and Costs

Task 9 – Collate results by Units, Plants and Groups.

Task 10 – Congestion Analysis

Task 11 – Fuel Price Elasticity

Task 12 – Sensitivity Analysis

Task 13 – Perform ATC Calculations

Task 14 – Study Report Preparation, Discussion and Presentation

Task 15 – Additional Transmission Upgrades required for Flexible Capacity

(Optional)

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GridView Software Main Inputs & Outputs

ABB GridView®

Hourly Production

Cost Simulation

Security Constrained

Unit Commitment &

Economic Dispatch

Generation

Units• size• fuel• availability

Transmission

Network• power flow• constraints• availability

Load• location • hourly variation• growth

Total Reserve Level

flows / congestion

system production costwind curtailment

Post Processing

Production Cost Reduction

Flexible Capacity

System Loss Reduction

Emission Reduction

Congestion

Wind Generation• location• hourly production

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Production Cost Input Assumption

Data Source

SPP

Entergy

CBA study report

Public sources: EIA, EPA

Transmission Data

Powerflow case

Flowgate/ Interface details

Load

Annual forecast for peak load and total energy

8760 hourly load curve for each area

Entergy and Non-Entergy load definition

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Production Cost Input Assumption

Thermal unit characteristics

Nuclear units

Hydro units

Renewable resources

Capacity additions and retirements

Emission data

Boundary conditions

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Production Cost Model Assumption

Marginal cost bidding

Marginal loss with distributed reference bus

Wheeling Rates

Fuel Price

Operating reserve requirement (Flexible Capacity)

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Production Costing Considerations

RMR Requirement

Flexible Capacity

Transmission Constraints

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Transmission Constraints’ Enforcement in GridView

Full transmission network representation

Transmission facility (lines and transformers) thermal ratings:

Summer and Winter

Normal, LTE and STE

Interfaces/flowgates limits, non-simultaneous and simultaneous,

including interfaces/flowgates limits or nomograms due to voltage and

stability problems

Interfaces/flowgates and nomograms under contingency conditions

Operating contingency: N-1, N-2 …

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Transmission Analyses

Transmission analyses are needed to…

Identify reliability criteria violations associated with displacement of an

RMR unit (or RMR units / plants) under study

Thermal overloads

Under / over-voltages

Run power flow analysis under all lines in and contingency case conditions

Identify transmission solutions to resolve reliability criteria violations

Test effectiveness of transmission solutions in resolving such violations through

power flow analysis

After identifying candidate solutions, need to come up with cost-

effective transmission (more on this later)

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Transmission Analyses

√ COMPLIANCE WITH THERMAL CRITERIA

√ CONVERGENCE

√ COMPLIANCE WITH VOLTAGE CRITERIA

COMPREHENSIVE CONTINGENCY ANALYSES

Identify possible solutions

• Topology, New Lines, Upgrades

• Compensation levels

THERMAL VIOLATIONS

Perform MUST, OPF

& Conventional Power Flow

NON-CONVERGENCE & VOLTAGE VIOLATIONS

OPF

Characterize reactive

deficiency

Add shunt compensation,

Amount & Location

Flow optimization

Conventional Powerflow

QV Curves

highlight needs for

SVC, STATCOM, etc.

PV Curves

Confirm adequate

margin for voltage

stability

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Economic Comparison of Benefits and Costs

Economic Comparison of Cases A (with RMR) & B (w/o RMR)

1000

3000

5000

7000

9000

11000

13000

1 6 11 16New Transmission Projects

Co

st

Annualized

Capital Cost

for New

Transmission

Pa A

PbB

Ca

Total

Cost

Cb

Ta=Pa + Ca

Tb=Pb +Cb

S

A

V

I

N

G

S

Cost

Ta - Tb = Net Benefit

Annual

Production

Cost

Beside production cost reduction benefit, following benefits can be quantified:

- Transmission loss reduction (MW reduction from peak power-flow case)

- Reduction or elimination of fixed costs (ERSC/SPP to estimate)

- Emission/Carbon reduction (implicitly or explicitly, to be agreed upon at the beginning of the study)

Scales for

Annual

Operating Costs

and Annual

Transmission

Costs are not

one to one and

somewhat

exaggerated for

illustration

purposes.

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Collate results by Units, Plants and Groups

Results by unit(s) in the following 3-phases (in the Original Scope);

Phase I – Top three units based on highest capacity factor (RFP Table)

Phase II – Includes Phase I with next three units in capacity factor order

Phase III – Includes Phase II with remaining units in capacity factor order

Results by Individual Load Pocket in a

Top-down Approach

Phase I – One Load Pocket at a time, independently of other Load pockets

as well as all the Load Pockets together

Other Phases – Depends upon the results from Phase I.

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Q & A

Thank you!

Minimizing Bulk Power Costs Study - SPP

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