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Distributed Renewable Energy Operating Impacts and Valuation Study

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Section 5<br />

Figure 5-1: Coincidence of Solar DE Output with the APS System Load Shape, Solar DE at 10% of Peak<br />

8,000<br />

1,200<br />

Dem<strong>and</strong><br />

7,000<br />

243 MW Peak<br />

Reduction<br />

1,000<br />

Dem<strong>and</strong> After Solar<br />

Solar Resources<br />

Hourly Electric System Dem<strong>and</strong> (MW)<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

713 MW Solar<br />

Capacity<br />

800<br />

600<br />

400<br />

Hourly Solar DE Production (MW)<br />

1,000<br />

200<br />

0<br />

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24<br />

Hour Ending<br />

0<br />

Transmission <strong>and</strong> distribution planning is usually concerned with the peak dem<strong>and</strong> placed on the<br />

electric facilities; therefore, an analysis of the coincidence of the solar DE capability at the time<br />

of the peak on the electric facilities is sufficient to determine the impact of solar DE capacity.<br />

However, power supply planning is concerned with the ability of a given resource portfolio to<br />

reliably serve the total system load – not just at the time of the peak but across all hours of the<br />

year. The capability of solar DE resources to displace power supply resources must, therefore,<br />

be determined through a different analysis than that used for the transmission <strong>and</strong> distribution<br />

analyses.<br />

Determining Power Supply Capacity Reliability<br />

Power supply planning is typically performed such that resources are added to meet a given level<br />

of capacity reserves above the forecast peak dem<strong>and</strong>, or reserve margin. In the case of APS, the<br />

planning reserve margin is 15 percent. While a planning reserve margin reflects a reasonable<br />

rule-of-thumb for long-term planning purposes, the 15 percent reserve margin is actually derived<br />

through a more rigorous analysis of the quantity of resources needed to maintain a minimum<br />

level of reliability to serve customer loads. The electric industry has adopted several similar<br />

methods to compute such reliability metrics; generally they are all related to a specific measure<br />

of how likely a utility will be able to serve the loads of its customers.<br />

5-6 R. W. Beck, Inc. Arizona Public Service

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