U.S. regulator proposes reliability standards to assist renewables

PRINCETON, New Jersey, US, November 1, 2006 (Refocus Weekly)

The Federal Energy Regulatory Commission will approve 83 new reliability standards for the U.S. power grid, which should create mandatory and enforceable standards before next summer.

In July, FERC named the North American Electric Reliability Corporation (NERC) as the country's official Electric Reliability Organization and NERC, in its new role, proposed 107 standards of which FERC accepted 83.

The effort to increase reliability is a response to the power outage of 2003, but NERC's first power assessment sees a long-term threat from a lack of new generating capacity. Electricity demand in the U.S. is expected to increase 19% over the next decade, but confirmed power projects will increase generating capacity by only 6% and NERC warns that dropping capacity margins could threaten power reliability in many regions.

“Long-term electricity supply adequacy requires a broad and balanced portfolio of generation and fuel types, transmission, demand response, renewables and distributed generation,” the report notes. “All supply-side and demand-side options need to be available.”

In recent years, several large projects to expand transmission capacity have been proposed by entities across North America, with the main objectives to access renewable resources, eliminate regional transmission system congestion and promote fuel diversity. “Although the typical attribute of these projects is that they are intended to enhance the economic efficiency of the bulk power system or to access renewables, they will also have a reliability benefit by increasing operational flexibility.”

Large-scale transmission projects have the “potential to profoundly change the operations and planning of the transmission system in these areas” and development of projects has the potential to “significantly impact overall electric system reliability in a variety of ways,” the report notes. “To the extent the new transmission expansion leads to integration of increased renewable resources, operational and reserve requirement issues associated with intermittent and energy limited resources discussed in the renewable resources section will also need to be addressed to assure continued system reliability.”

“Renewable energy and nuclear power are being pursued as an alternative to the ever increasing consumption of fossil fuels in North America, with several states and provinces in North America having established standards requiring that a minimum percentage of energy consumed be derived from renewable resources,” it continues. At the federal level, the U.S. Energy Policy Act of 2005 provides subsidies for wind generation and encourages research into tidal and other renewables.

“In the near term, renewable energy will largely be supplied by existing hydroelectric facilities and the growing numbers of wind generators entering the grid,” the report notes. Nearly 14,000 MW of wind, solar, biomass, geothermal, hydro, wave/tidal, landfill gas and municipal or biomass waste are projected to be added over the next ten years throughout North America.

Currently, 21 states have adopted renewable portfolio standards for the purchase of green power and wind “is expected to provide the bulk of the energy required to meet requirements for additional generation from renewable sources,” it explains. “Wind generation is often located in remote areas, which requires new transmission construction to deliver its energy to load (and) because wind and some other renewable sources of electric power are intermittent in nature, actual generating capacity available at times of peak demand is less predictable than it is for capacity produced from more traditional technologies.”

“Another characteristic of renewable sources is that typically the actual electricity produced in relation to the available capacity is relatively small,” it adds. “Although a large amount of capacity based on maximum output may be planned, these resources will be energy-limited and produce a relatively low level of MW-hours compared to their maximum capacity.”

Intermittent renewables require that sufficient dispatchable resources and transmission capacity be available to assure system resource adequacy and operating security at all times, and one strategy is to “discount the total installed capacity from renewable sources to a level that reflects their expected operating capacity at the time of highest system demand.” Renewables also have unique characteristics that need to be analyzed to determine their ability to operate within the capacity of local transmission facilities, including reactive power capability, voltage regulation and low-voltage ride-through capability.

“These characteristics have historically been problematic for wind generation; however, as amounts of wind generation are increasing, the manufacturers are improving the capabilities of the equipment being installed,” the report adds. “In the past year, FERC has adopted standard interconnection requirements that apply to new wind generation capacity. These new requirements should help assure that new renewable generation being added does not degrade system reliability.”


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