Wind_Reserve_Cost_Andrew.pdfVIP

Estimating Reserve Costs for Wind Power Andrew Mills April 2011 1 Purpose of Presentation •  Provide conceptual overview of how system operators can manage increased variability and uncertainty due to wind •  Summarize simple methods for estimating impacts and costs of reserves •  Highlight important questions that should be the focus in more detailed studies 2 Presentation Outline •  Description of reserves and practices for procuring reserves •  Estimating the cost of holding and deploying reserves as a function of imbalances •  Estimating imbalances for the net load •  Balancing reserves estimates with increased wind and associated costs from literature 3 Resources that Can Provide Reserves •  Spinning Resources: -  Spare capacity on committed units that are operating at part-load -  Portion of spinning resources can be dispatched by system operator, other portion is under automatic generation control (AGC) •  Standing Resources: -  Plants that are not scheduled to be online, but can be started quickly (or are kept “hot” in a standby mode) in case additional energy is needed •  Availability of these resources to system operators: -  Active provision: system operator schedules unit to ensure adequate reserves are available -  Inherent provision: normal schedule may inherently leave room to maneuver dispatchable plants upward or downward 4 Reasons to Procure Reserves •  Contingency reserves: maintained in case of emergency -  Many system operators keep enough emergency reserves to cover the loss of the single largest contingency (loss of power