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Accommodating High Levels of Variable Generation - NERC

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Transmission Planning & Resource Adequacy<br />

generation are added to a system with a given correlation between the existing and added wind<br />

capacity, the incremental contributions to reliability decrease. Once the LOLP in a given hour is<br />

sufficiently small, the addition <strong>of</strong> more capacity in that hour has a relatively small contribution to<br />

reliability.<br />

Figure 3.3: Alternative peak periods are used to assess wind capacity value in the U.S. 56<br />

In high variable generation penetration scenarios, a larger portion <strong>of</strong> the total supply resource<br />

portfolio, in comparison to today’s power systems, will be increasingly comprised <strong>of</strong> energylimited<br />

resources – meaning that their availability at times <strong>of</strong> peak electricity demand is limited.<br />

Energy output from variable resources is not as consistent as output from thermal power plants<br />

and cannot be dispatched when the fuel (wind, solar, etc.) is not available. This fact somewhat<br />

complicates, but does not fundamentally change existing, capacity-driven resource adequacy<br />

planning processes in that the process must still be driven by a reliability-based metric such as<br />

LOLE, LOLP, or EUE. Consistent methods are required to represent capacity values <strong>of</strong> variable<br />

generation suitable for <strong>NERC</strong> reliability assessments. Therefore, the recommended <strong>NERC</strong> action<br />

is:<br />

56 Note PNM does not have an <strong>of</strong>ficial method for calculating Capacity Value.<br />

<strong>Accommodating</strong> <strong>High</strong> <strong>Levels</strong> <strong>of</strong> <strong>Variable</strong> <strong>Generation</strong> 40

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