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Transcript of SPP.org 1. SPP, Wind, and Transmission Expansion Oklahoma Clean Energy Independence Commission...
![Page 1: SPP.org 1. SPP, Wind, and Transmission Expansion Oklahoma Clean Energy Independence Commission February 25, 2010 Les Dillahunty, Senior Vice President,](https://reader033.fdocuments.net/reader033/viewer/2022052820/551ab864550346856e8b52a3/html5/thumbnails/1.jpg)
SPP.org 1
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SPP, Wind, and Transmission Expansion
Oklahoma Clean Energy Independence CommissionFebruary 25, 2010
Les Dillahunty, Senior Vice President, Engineering and Regulatory Policy
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SPP.org3
Introduction
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SPP.org 4
Our Beginning
• Founded 1941 with 11 members
Utilities pooled resources to keep Arkansas aluminum plant powered for critical defense
• Maintained after WWII for reliability and coordination
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SPP.org 5
3 Interconnections / 8 NERC Regions
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SPP.org 66
Operating Region
• 370,000 square miles service territory
• 50,575 miles transmission lines:
69 kV – 16,182 miles115 kV – 10,041 miles138 kV – 9,284 miles161 kV – 4,469 miles230 kV – 3,831 miles345 kV – 6,662 miles500 kV – 106 miles
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SPP.org 7
Members in nine states:
Arkansas
Kansas
Louisiana
Mississippi
Missouri
Nebraska
New Mexico
Oklahoma
Texas
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SPP.org 8
56 SPP Members
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SPP.org 9
Quick Statistics
• 66,175 megawatts capacity resources
• 847 plants – 6,079 substations
Fuel Type Percentage Capacity
Coal 40%
Gas/Oil 42%
Nuclear 3%
Hydro 4%
Wind 4%
Other 7%
9
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SPP.org 10
Wind Integration and Transmission Expansion
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Wind In Service: 2001
Source: NREL
2009
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Wind Installed by Year (2002-2009)
13Source: SPP
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SPP.org 1414
Renewable Energy Standards By State
Source: SPP
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SPP.org 16
w/ HVDC Proposals
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Generation Interconnection Requests
17
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Generation Interconnection Clusters and Major Cities
18
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500 kV-DC
116’
800 kV-DC
138’
765 kV-AC
133’
345 kV-AC
88’
500 kV-AC
103’
50m Wind Turbine
164’
92’
80m Wind Turbine
262’
151’
100m Wind Turbine
328’
164’
To Scale Height Comparison
Made by JT
Produced by Midwest ISO
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Correlation Between Wind and Load
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Wind Status in Oklahoma
• 865 MW installed through 3Q 2009
• 3% wind generation in 2008
• Ranks 12th total wind installation
Installed WindOnline Manufacturing
21Source: AWEA, NREL
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Oklahoma Weatherford Wind Energy Center
• $300,000 in annual lease payments to landowners
• $17 million in property taxes over 20 years
• 147 MW
• 150 workers during construction peak; 6 full-time O&M positions
22Source: NREL
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Oklahoma CPV – OU Spirit project
• Annual allocations from addition of 2.3 MW Siemens turbines
$1,057,000 in new tax dollars for two school districts
CareerTech allocation from county revenue will increase by $227,000
County general funds will increase by $190,000 –will assist with building new jail
EMS services will receive $57,000 increase
County Heal services will receive $20,000 increase
23Source: Woodward County Assessor
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Oklahoma, Wind, and Economic Development
24Source: NREL; Cole, Hargrave Snodgrass, and Associates; Oklahoma Department of Commerce
• Economic benefit of 1,000 MW = $1.25 billion
5,530 construction jobs, 215 permanent jobs
• Average wages in component manufacturing industry = $40,709 - 15% higher than average state wage
• Strong correlation between Western OK counties that have lost population in recent decades with counties that have significant wind resources
• In many cases, land suited for wind development has lower per-acre returns for agricultural use
• Sooner Survey of 600 registered voters:
72% of Oklahomans willing to pay more for wind-generated electricity
91% approve of further development of wind farms
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Component Manufacturing-Oklahoma, Kansas
• Bergey WindPower (Oklahoma)
Employs 42, manufactures one turbine per day
• DMI Industries (Oklahoma)
Employs 215
• Siemens (Kansas)
• Broke ground September 2009
• Will invest $50 million in new facility
• Expected to employ 400 workers by 2012 @ >$16/hour
• Planned annual output = 650 nacelles
25Sources: NREL, Wichita Eagle
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SPP.org
Arkansas Becoming Manufacturing Hub• LM Glasfiber
Employs 300 workers @ $12-$15/hour
Invested $95 million in Little Rock
• Mitsubishi Power Systems
Announced October 2009
$100 million plant will bring 400 jobs in 2011
• Nordex
Sept 2009 - Broke ground on $100 million plant
Expected to employ 700 by 2014
• Emergya Wind Technologies/Polymarin
Plans to invest $16 M and create 830 jobs @ $15/hour26
Installed WindExisting Manufacturing
Announced manufacturing
Sources: NREL, AR Economic Dev. Commission, Nordex, Arkansas Business
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SPP.org 27
SPP is Building TransmissionNEW SPP Transmission - Circuit Miles
0
100
200
300
400
500
600
700
800
2006 2007 2008 2009 2010
YEAR
Cir
cuit
Mile
s 700 kV
300 kV
200 kV
100 kV
69 kV
ProjectedHistorical
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Transmission Expansion - CostsCost of New SPP Transmission - Circuit Miles and
Associated Upgrades
0
50
100
150
200
250
300
350
400
2006 2007 2008 2009 2010
YEAR
Co
st in
Mill
ion
s
Historical Projected
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Transmission Expansion - MilesNEW SPP Transmission - Circuit Miles
0
100
200
300
400
500
600
700
800
2006 2007 2008 2009 2010
YEAR
Cir
cuit
Mile
s 300 kV
200 kV
100 kV
69 kV
ProjectedHistorical
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SPP.org 30
Draft EHV Overlay
30
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SPP.org 31
Group 2
Priority Projects
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SPP.org 32
Quantitative Benefits
• Study quantified NPV benefits of $1.5 billion over 40 years
• B/C Ratio of 0.74
Total $$ B/C Ratio
APC $819 M 0.41
Losses $ 26 M 0.01
Wind Revenue* $266 M 0.13
Fuel Diversity $399 M 0.20
Reliability $ -20 M (0.01)*(Adjusted down) $1.5 B 0.74
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SPP.org 33
Qualitative Benefits
Total (B/C at 20% of $$) $$ B/C Ratio
Taxes (table 28): $ 34 M 0.00
Econ. Trans (table 27) $1,000 M 0.10
Wind Earning (table 5a) $ 560 M 0.06
Econ Operating (table 5a) $1,900 M 0.19
Wind Earning Construct (table 5a) $ 766 M 0.08
Econ Construction (table 5a) $2,300 M 0.23
Total $6,500 B 0.66
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Examples of Other Transmission Benefits
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Larger Transmission Reduces Right of Way
35
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Cost Allocation
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Regional State Committee (RSC)
Cost Allocation Working Group (CAWG)
Arkansas Chairman Suskie Sam Loudenslager / Pat Mosier
Kansas Commissioner Wright Tom DeBaun / Jim Sanderson
Oklahoma Commissioner Cloud Bob Vandewater / Bill Reid
Missouri Chairman Davis Adam McKinnie
Nebraska Chairman Siedschlag Tim Texel
New Mexico Commissioner King Craig Dunbar
Texas Chairman Smitherman Richard Greffe / Bridget Headrick
3737
RSC and CAWG
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Highway/Byway Cost Allocation
38
Voltage Regional Zonal
300 kV and above 100% 0%
100 kV - 299 kV 1/3 2/3
Below 100 kV 0% 100%
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Current and Future Markets
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SPP.org 4040
What kind of markets does SPP have now?
• Transmission: Participants buy and sell use of regional transmission lines that are owned by different parties
2009 transmission market transactions = $486 million
• Energy Imbalance Service (EIS): Participants buy and sell wholesale electricity in real-time
Market uses least expensive energy from regional resources to serve demand (load) first
SPP monitors resource/load balance to ensure system reliability
2009 wholesale market transactions = $1.14 billion
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SPP.org 41
• Provides “one-stop shopping”for use of regional transmission lines
• Consistent rates, terms, conditions
• Independent
• Process > 12,000 transactions/month
• 2009 transmission market transactions = $486 million
Transmission Service
…a 1,621 page transmission tariff on behalf of our
members and customers.
As “Sales Agents,” we administer …
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Transmission Service
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SPP.org 43
Transmission Service
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SPP.org 44
EIS Market Operation
…and follows over 200 pages of market protocols.
SPP’s energy market is like the “NYSE”…
• Monitors supply/demand balance
• Ensures economic dispatchwhile meeting system reliability
• Provides settlement data
• 2009 wholesale market transactions = $1.14 billion
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Benefits of current real-time energy market
45
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SPP Pricing Zone Information
47
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Impact of Congestion on Locational Prices
48
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Impact of Congestion on Locational Prices
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SPP.org 5252
Why develop new markets?
• SPP conducts complex cost-benefit studies before beginning any new market development
Under Regional State Committee oversight
2005 Charles River and Associates (CRA) analysis of the EIS market:
Estimated benefit of $86 million for first year
Actual benefit of $103 million for first year
• New markets will bring estimated average additional benefits of $100 million
According to 2009 Ventyx analysis
52
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SPP.org 5353
What type of new markets is SPP implementing?
• Day Ahead: SPP determines what generating units should run the next day for maximum cost-effectiveness
• Ancillary Services: Market to buy and sell reserve energy that:
Meets emergency needs
Regulates instantaneous load and generation changes
Maintain electricity quality (keeping voltage up, etc.)
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Day Ahead market makes regional generation choices
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Day Ahead market offers regional diversity
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SPP.org 565656
Benefits of Ancillary Services market• Greater access to reserve electricity
• Improve regional balancing of supply and demand
• Facilitate the integration of renewable resources
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Perfect Storm of Complex Issues
Growth in demand
Aging infrastructure
Rising gas prices
Lack of transmission
Growth in uncommitted capacity
Challenges with integrating
renewables into grid
Political and technical challenges
Greenhouse gas emissions
Lengthy permitting for
new generation
Trade imbalance
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SPP.org 58Source: EPRI
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SPP.org
Summary/Recommendations/Next Steps
• Know the players
• Is it local, state, national, or international?
• Are you really “green”?
• Know the facts – take a position.
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