Navigating I T
- 1. European Wind Energy Conference: April 22, 2010Navigating Interconnection and Transmission in the Major US MarketsRhonda Peters, Ph.D.Grid Interconnection and Transmission EngineerKevin Brokish, M.SGrid Interconnection and Transmission CoordinatorClipper Windpower Development Co., Inc.Carpinteria, CA© 2010 Clipper Windpower, Inc. and subsidiaries. All rights reserved.
- 2. AgendaNavigating Interconnection and Transmission in the Major US MarketsClipper Snapshot1Background: Key Transmission Policy Issues2FERC “Pro Forma” Generator Interconnection Process3Regional Interconnection Processes4Navigating Interconnection52
- 3. Clipper SnapshotEstablished in 2001
- 5. Wind Turbine Design/Engineering (R&D)
- 9. Headquarters: Carpinteria, California, USA / London, UK
- 10. Wind Turbine Assembly: Cedar Rapids, Iowa, USA
- 11. Publicly Traded on the London AIM Market 3
- 13. Offshore
- 15. 2.5 MW
- 16. Onshore
- 18. Manufacturing: Cedar Rapids, Iowa, USA4
- 19. AgendaNavigating Interconnection and Transmission in the Major US MarketsClipper Snapshot1Background: Key Transmission Policy Issues2FERC “Pro Forma” Generator Interconnection Process3Regional Interconnection Processes4Navigating Interconnection 55
- 20. Electricity Business Regulatory StructureFederal Energy Regulatory Commission (FERC)
- 21. Agency with jurisdiction over interstate electricity sales and wholesale electric rates
- 22. Independent System Operator / Regional Transmission Operator (ISO/RTO)
- 23. Coordinates, controls, and monitors the grid.
- 24. Public Utility Commission (PUC)
- 25. State-specific governing body that regulates the rates and services of public utilities.FERCEntitiesISO/ RTOUtilityLoadGenPUC6
- 26. Cost Allocation of TransmissionA Hotly Contested IssueWind shouldn’t get a free rideTotal Cost = Generation + TransmissionSeparating generation from its transmission creates inaccurate economic signalsDeciding which load should pay is difficultLoad will pay in the end, anywayGenerators with power purchase agreements can pass the cost through to consumersCost Causers ≠ Sole BeneficiariesWhy should generators fund:
- 27. Lower emissions
- 28. Increased reliability and security
- 30. Capacity for future expansionCharging multiple generators is ineffectiveWhen a project drops, its obligation can be “backfilled” with a new project, but the new project may not be prepared to fund a share of the transmission.
- 31. Developer cost of capital is much higher than utility cost of capital.Ad hoc system planning is inefficientThe system should be planned for both today and the future, but generators should not be charged for overbuilding.Load will pay in the end, anywayMake Generators Pay!Make Load Pay!7
- 32. Who Wants Regional Transmission Built?My load shouldn’t pay. They aren’t using the transmission.I don’t want to pay, either.I want in-state wind because it brings jobs and property taxes.Very Windy StateLow LoadLow Wind StateHigh LoadTransmission?8
- 33. AgendaNavigating Interconnection and Transmission in the Major US MarketsClipper Snapshot1Background: Key Transmission Policy Issues2FERC “Pro Forma” Generator Interconnection Process3Regional Interconnection Processes4Navigating Interconnection59
- 34. FERC “Pro Forma”Large Generator Interconnection ProceduresTransmission CreditsTransmission charges are discounted until network upgrade costs have been reimbursed.Interconnection Request$10,000 (€7.500)
- 35. Site Control or an additional $10,000 (€7.500)Network Upgrade Reimbursement?Feasibility Study$10,000 (€7.500)
- 36. Technical DataSystem Impact Study$50,000 (€37.000)
- 37. More Site ControlFacilities Study$100,000 (€75.000)
- 38. More Technical DataLarge Generator Interconnection Agreement10
- 39. The Clogging of the QueueReason #1: Interconnection Requests Are CheapEXPENSIVE UPGRADESProject #7Project #6“Cost Causers”Project #5Project #4Project #3Available Capacity“Free Riders”Project #2Project #1Used Capacity11
- 40. The Clogging of the QueueReason #2: SuspensionProject #7 (Waiting…)MORE UP-GRADESProject #6 (Waiting…)Project #4’s UpgradeProject #5 (Waiting…)Project #4 SUSPENDEDUsed CapacityProject #3Project #2 SUSPENDEDProject #1Speculative suspended projects claim available system capacityQueued generation faces uncertainty
- 41. Queued generation faces expensive upgrades12
- 42. AgendaNavigating Interconnection and Transmission in the Major US MarketsClipper Snapshot1Background: Key Transmission Policy Issues2FERC “Pro Forma” Generator Interconnection Process3Regional Interconnection Processes4Navigating Interconnection5NOTE: Many LGIP details have paraphrased/simplified in the interests of time.Please refer to Open Access Transmission Tariffs for the definitive rules of Generator Interconnection Processes.13
- 43. MISO: Midwest ISOInterconnection RequestSize Dependent (<6MW to >1GW)$10,000 - $120,000 (€7.500 - €90.000)Site Control or an additional $100,000 (€75.000)In FluxToday: No (10% if 345kV or above)
- 44. Tomorrow: …?Feasibility “Test” determines if system upgrades are minimal and project can skip the “SPA” phaseNetwork Upgrade Reimbursement?System Planning and Analysis Phase (“SPA”)Optional 135-day “parking” Definitive Planning Phase (“DPP”)Size Dependent (<6MW to >1GW)$40,000 - $520,000 (€30.000 - €390.000)M2* Demonstration of Project Seriousness
- 45. M3** Demonstration of Project SeriousnessInterconnection AgreementCannot suspend*Milestone 2 (M2) is two of the following: application for air or land permits, PUC approval, approval to proceed from the project’s board of directors, purchase order or agreement for generating equipment, security equal to one month of transmission service (approx $2000/MW).** Milestone 3 (M3) is one of the following: security equal to the cost of network upgrades, PPA, or a purchase/agreement for generating equipment14
- 46. SPP: Southwest Power PoolInterconnection Request$10,000 (€7.500)Feasibility Study$10,000 (€7.500)Preliminary Interconnection System Impact Study$60,000 (€45.000)
- 47. Demonstration of Site ControlNetwork Upgrade Reimbursement?Customer chooses where to enter processDefinitive Interconnection System Impact Study$150,000 (€112.500)
- 48. *Demonstration of Project SeriousnessFacilities StudyRevenue CreditsGenerators are reimbursed as the network upgrades are used for transmission service.Generator Interconnection AgreementShared upgrades cannot be suspended
- 49. Suspension limit of 18 months, $5,000,000 (€3.750.000) deposit due at 6 months.*Demonstration of project seriousness means one of the following: Letter of Credit for Network Upgrades, Power Purchase Agreement, evidence of a “Designated Resource”, Purchase Order for Generating Equipment, Application for Air Permit, Filing of FAA Notice15
- 50. CaISO: California Independent System OperatorDirect repaymentOver a 5 year periodInterconnection Request$250,000 (€190.000)
- 51. $100,000 (€ 75.000) is not refundable
- 52. Site Exclusivity or an additional $250,000 (€190.000) Network Upgrade Reimbursement?Phase I Interconnection StudyPhase II Interconnection StudyThe Lesser of
- 53. 15% of network upgrade cost or
- 55. $7,500,000 (€5.600.000)Large Generator Interconnection Agreement16
- 56. PJM InterconnectionInterconnection Request$100 - $200/MW (€75 - €150/MW) up to $100,000
- 57. Plus $10,000 - $30,000 (€7.500 - €22.500) Depending on timing in 3 month submit windowDemonstration of site controlNetwork Upgrade Reimbursement?Feasibility StudySystem Impact Study$50,000 (€37.500)Facilities Study$100,000 (€75.000)Interconnection Service AgreementNo.17
- 58. ERCOT:Electric Reliability Council of TexasYes.Security is required, but the utility funds network upgradesNetwork Upgrade Reimbursement?Generator Interconnection Request$1,000 - $5,000 (€750 - €3.700)
- 59. Not refundableSecurity Screening StudyCan delay up to 180 daysFull Interconnection StudyCost dependent upon project and utility
- 60. Demonstration of Site ControlLarge Generator Interconnection Agreement18
- 61. AgendaNavigating Interconnection and Transmission in the Major US MarketsClipper Snapshot1Background: Key Transmission Policy Issues2FERC “Pro Forma” Generator Interconnection Process3Regional Interconnection Processes4Navigating Interconnection519
- 62. Navigating InterconnectionOften the interconnection rules/tariff change mid process making it critical to attend ISO/RTO stakeholder meetings.Midwest ISO2008: Interconnection Process Task Force (IPTF) Change from first in/ first out to milestone based queue process, suspension no longer allowed, and up to $120k to enter queue plus $520k to complete studies
- 63. 2009: Regional Expansion Criteria and Benefits Task Force (RECBTF)—change from 50% reimbursement for network upgrades to 0% if less than 345kV, 10% if 345kV and aboveSPP2009: Generator Interconnection Task Force (GITF) changed from first in/ first out to milestone based queue process, suspension limited and more costly, higher deposits requiredCAISO2008/2009 Generator interconnection changed from serial to cluster study, two phase process with $250k to enter queue and up to $7.5M security required to enter Phase II study20
- 64. The challenges faced by the US wind industry cannot be met by individual companies. Industry Organizations play a critical role in responding to policies that create barriers to wind developmentWind on the Wires (“WoW”) – MISO, MidwestThe Wind Coalition – SPP, ERCOTAWEA Transmission Committee – NationalCenter for Energy Efficiency and Renewable Technologies – CAISO and WestCALWEA—California Wind Energy Association – CAISOInterwest Energy Alliance – WestMid Atlantic Renewable Energy CoalitionRENEW New England – ISO-NERenewable Northwest Project (“RNP”) – BPAAlliance for Clean Energy New York – NYISONWCC-Northwest Wind Coordinating Committee21
- 65. Thank You Rhonda Peters, Ph.D.Grid Interconnection and Transmission EngineerTel: +1 (805)-576-1188Email: rpeters@clipperwind.com22
Editor's Notes
- #3: PLEASE FILL IN YOUR OWN AGENDA TITLES AND TEXT. Change the blue bar location and add check marks as you move through the agenda.
- #6: PLEASE FILL IN YOUR OWN AGENDA TITLES AND TEXT. Change the blue bar location and add check marks as you move through the agenda.
- #7: This is a ’smart object’ so you can add or delete bubbles using the gadget on the upper left of the selected graphic.
- #10: PLEASE FILL IN YOUR OWN AGENDA TITLES AND TEXT. Change the blue bar location and add check marks as you move through the agenda.
- #14: PLEASE FILL IN YOUR OWN AGENDA TITLES AND TEXT. Change the blue bar location and add check marks as you move through the agenda.
- #20: PLEASE FILL IN YOUR OWN AGENDA TITLES AND TEXT. Change the blue bar location and add check marks as you move through the agenda.
- #23: THIS PAGE MUST BE USED IN ORDER TO PROTECT CLIPPER’S INTELLECUAL PROPERTY RIGHTS. DO NOT DELETE