FERC’s new rule on compensation for demand resources tips the market balance toward negawatts. Arguably the commission’s economic analysis is flawed, and the rule represents a covert policy...
Green Power Control
Preparing the grid for large-scale renewables.
In NYISO’s FERC order, two items stand out regarding the use of these LESRs. Point No. 7 of the NYISO order is important to note because NYISO is taking an active role to install flywheels around its territory with the understanding that the integration of wind power is here to stay. Item No. 20 of the NYISO order is important because, again, since there’s no legislative obligation being placed on renewable resources to provide any additional mitigation equipment, some ISOs have taken a proactive role to install these devices for better system control.
Similarly, the Midwest ISO has initiated a FERC process (Docket ER09-1126) to address significant modifications to its energy and operating reserve markets tariff, based on the impact of integrating stored energy resources onto the bulk-power system. [Editor’s Note: FERC ruled on MISO’s filing on Dec. 31, 2009, and May 10, 2010.]
The need for storage energy resources becomes more apparent considering the wind-related capacity emergency that occurred in Electric Reliability Council of Texas (ERCOT) in February 2008. It’s important to note that declining wind production played only a partial role in this event, as discussed in a report published by the National Renewable Electric Laboratory (NREL) (NREL/TP-500-43373, June 2008) . However, with more new wind farms being sited and installed in Texas, now is a good time to evaluate the opportunity to not only strategically install flywheel technology, but also to integrate dynamic reactive resources, such as SVC or STATCON into the transmission infrastructure plan. Doing so will build in some accountability for the fluctuating voltage and frequency levels created by wind energy facilities on the deployment horizon.
Moving forward, the industry will have to decide whether the two major transmission reliability factors—dynamic voltage support and system frequency management—need to be resolved by renewable resources, or if they should become a cost of doing business for each transmission provider and reliability coordinator. Again, each transmission service provider will have to critically evaluate their generation interconnection requirements as they relate to integrating new renewable resources. These green energy resources will aid in supplying valuable power to the bulk electric system, but pose some challenges to transmission reliability. With the clock ticking on the retirement of key based-loaded generation across the country, the industry needs to resolve this challenge sooner than later.