The Utility Wind Integration Group (UWIG) - Utility Variable ...

Membership Profile*In 2009, utilities represented 61% of UWIG’s membershipGovernment Agencies 2%Cooperatives 12%Corporate 31%IOUs 20%Ex Officio 3%Academic 3%ISOs 5%*As of end of 2009Public Power Utilities 24%UWIG Overview -- 4

Comparative Generation CostsSource: NRELUWIG Overview -- 62005$/MWh19901991199219931994199519961997199819992000200120022003200420052006

An All American ResourceRank1234567891011121314151617StateNorth DakotaTexasKansasSouth DakotaMontanaNebraskaWyomingOklahomaMinnesotaIowaColoradoNew MexicoIdahoMichiganNew YorkIllinoisCaliforniaSource: AWEAUWIG Overview -- 7

Wind Resource MappingIdentifies most promising areas forwind energy developmentEmploys geographic informationsystem technology to create layersof key informationUsed by state energy planners,Indian tribes, and developersApproach changing from empiricalto numerical modeling techniquesForecasting, resource assessmentand site specific inflowquantification methods are likelyto converge into a single approachUWIG Overview -- 8

Wind Power Taking Off WorldwideGlobal Installed Wind Capacity 1996-200916000014000012000010000080000600004000020000590914762039431311006100 7600 10200 13600 17400239007405293823157,899120,5500Source: Global Wind Energy CouncilUWIG Overview -- 9

Wind Power is GrowingExpansion of Wind Energy in the United States40000350003515930000250002000015000100005000025237168181160391716370 67404261 46851611 2141 2445 25561997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20082009In the United States, 9,922 MW of wind energy was installed in 2009, bringing US windenergy capacity to 35,159 MW.Source: AWEAUWIG Overview -- 10

US Wind Capacity by StateWind Power CapacityMegawatts1,000 – 2,100100 – 1,00020 – 1001 – 20OR1758CA2794WA1980ID147AZ63UT223MT375WY1101CO1246NM597ND1203SD313NE153KS1014OK1130MN1809IA3670MO309AR0.1WI449IL1547IN1036MI143TN 29OH7 WV330PA748VT6NY1274NH26NJ8ME175RI1MA15TX9410AK8Source: AWEAHI632008 Year End Installed Capacity (in MW)UWIG Overview -- 11

Economic DevelopmentTypical income from land leased foragricultural use:– $150 - $200 per acreTypical profits from wind:– Typically 25-40 acres per turbine– 4 turbines per acre of land taken out ofproduction– Royalties of $2,000 per machine– Income of $8,000 per acre of land takenout of productionWind farming is looking good!UWIG Overview -- 15

Moving OffshoreUWIG Overview Source: NREL -- 16

Perceived Market Barriers Siting– Avian/bat mortality– Noise– Aesthetics Transmission constraints Energy cost Financing Variable output– Large system impacts (transmission level)– Small system impacts (distribution level)UWIG Overview -- 17

Operating Impacts Study ResultsAncillary Services Cost ComparisonSource: UWIGUWIG Overview -- 19

Wind Integration Costs Comparison of study results shows costs are low at low levels ofpenetration and rise with increasing levels of penetration(~$5/MWh @ 20%) Costs are driven by uncertainty in wind plant output Variations in wind and load are important in determining true cost Debate has shifted from if it can be done to how much does it cost So far, costs appear to be moderate More information available on the UWIG web site athttp://www.uwig.org/operatingimpacts.htmlUWIG Overview -- 20

Distributed Wind Impacts Project Large funded research project to develop software tools andapplication guides for installation of wind turbines ondistribution systems Provide guidance and direction for new efforts throughresource materials in the form of measurements databaseand case study library Driven by recognition that analytical tools for distributionsystem planning, design, and operation with radialdistribution feeders may no longer be valid for feedersinterconnected to distributed generatorsUWIG Overview -- 21

Distributed Wind Analytical ToolsDevelopment effort resulted in analytical applets, application guides,case studies, and monitoring of distributed wind sitesComplete details can be found athttp://www.uwig.org/distwind/default.htmUWIG Overview -- 22

Wind Energy Markets – A Future VisionSource: NRELUWIG Overview -- 23

Evolution of the User Groups Recognition of the need for UWIG to take moreproactive role in addressing the ongoing technicalchallenges related to wind generation for the utilityindustry Outgrowth of the favorable response to theleadership provided through UWIG funded researchprojects Response to need for analysis and dissemination ofinformation targeted to utility audienceUWIG Overview -- 24

Operating Impact and IntegrationStudy User Group ScopeCost of ancillary services for wind plant– System regulation– Spinning reserve– Operating reserve– Unit commitmentAncillary service cost sensitivity– Penetration level– Generation mix– Fuel costCapacity credit studiesDomestic and international studiesAssumptions and methodologiesInformation disseminationCapacity Credit ($/kW)% PenetrationUWIG Overview -- 25

Distributed Wind ApplicationUser Group Scope Engineering software tools– Voltage regulation and flicker– Overcurrent protective device coordination– Economic screening Application guides for P1547 and flicker Case study library Measurement database Maintain and disseminate informationUWIG Overview -- 26

Wind Plant Modeling andInterconnection UG Scope Advance state of the art in modeling wind turbinesand plants for power system studies Develop, document, verify, and support modeland techniques for planning and operating studies Monitor development and implementation of gridcodes Generate confidence in those studying powersystem performance, stability, security, andreliabilityUWIG Overview -- 27

Wind Turbine ModelsUWIG Overview -- 28

Market Operation and TransmissionPolicy Best Practices UG Scope Transmission planning process Balancing markets Markets for transmission rights Interconnection standards andpolicies Congestion management Rate pancaking Flexible-firm tariffUWIG Overview -- 29

Wind Turbine Operations andMaintenance User Group Scope Exchange experiences and explore issues related towind turbine operation and maintenance– O&M of wind turbine and other plant components– Warranty and service contracts– Liability– Plant technician training– Condition monitoring and predictive maintenance Key activity is peer-to-peer information exchange,with focus on best practices Open to those who own, operate, or maintain windturbinesUWIG Overview -- 30

Moving Forward With The User Groups UWIG embarking on $4 millionfundraising campaign to expandwork scope of user groups Scope moves user groups moreinto active R&D and informationproduct development role Work scope covers all five usergroups and includes significantcost share and base funding byUWIGUWIG Overview -- 31

UWIG Meetings Two technical workshops held each year– Typically held in region with interest in wind energy– Blend of national, regional, and local interest– Address current technical topics of interest– Site visits to operating facilities Topical User Group meetings held in conjunctionwith meetings Began offering annual wind integration short coursein 2005, forecasting workshop in 2008 Offering topical workshops – wind integrationmethods/models, education initiativesUWIG Overview -- 32

Benefits of UWIG Membership Gain access to leading edge research on a range of utilitywind integration topics Gain access to current thinking on a broad range of marketoperation and transmission policy topics Gain access to easy to understand information on complextopics Benefit from peer-to-peer networking opportunities Benefit from experience of others Participate in User Group activities specifically of interest toyour organizationUWIG Overview -- 33

Outreach Activities IEEE Power & Energy magazine special issue onwind – 2005, 2007, 2009 IEEE/NERC/AWEA/UWIG Wind PolicySymposium – April 2006 in Washington Involvement in Cigré Participation in IEEE– Wind Power Coordinating Committee NERC Wind Generator Task Force NERC Integration of Variable Gen TFUWIG Overview -- 34

For More Information Visit www.uwig.org Email info@uwig.org Phone– Sandy Smith 865-218-4600 x 6141– Charlie Smith 703-860-5160 Fax 865-218-8999 MailUtility Wind Integration GroupPO Box 2787Reston, VA 20195 USAUWIG Overview -- 35