MISO Market Transformation The Intersection Of Renewables, Transmission And Technology Raj Singamsetti Executive Director of Portfolio Strategy,

Slides:



Advertisements
Similar presentations
Achieving Price-Responsive Demand in New England Henry Yoshimura Director, Demand Resource Strategy ISO New England National Town Meeting on Demand Response.
Advertisements

NARUC The 21 st Century Grid 1 Energy Consumption Ancillary Services Traditional Power Generation Solar Generation Commercial and Industrial Transmission.
Amendment 3/5 Workshop.
Energy Storage Definitions/Definitions ETWG 18 Feb 2013.
1 TTP Texas Technology Partners Sierra Club Earth, Wind and Fire Energy Summit The Future of Energy Fuel Sources Texas Technology Partners
Citizens League Electrical Energy: Affordability and Competitive Pricing Working Team Electric Transmission.
Susan Covino Senior Consultant, Emerging Markets March 31, 2015
GE Energy Asia Development Bank Wind Energy Grid Integration Workshop: Issues and Challenges for systems with high penetration of Wind Power Nicholas W.
1 Transmission Development at Ameren and in the Midwest ISO Mid-America Regulatory Conference Maureen A. Borkowski June 8, 2010.
Lynn Coles, PE National Wind Technology Center National Renewable Energy Laboratory Golden, Colorado USA 10 FAQ’s (Frequently Asked Questions) About Wind.
Warren Lasher Director, System Planning October 4, 2014 Our Energy Future.
GE Energy Financial Services Policy Options Shaping Private Investments in Clean Tech Kevin Walsh Managing Director, Power & Renewables May 1, 2009.
Overview of the North American and Canadian Markets 2008 APEX Conference in Sydney, Australia October 13, 2008 Hung-po Chao Director, Market Strategy and.
Power Plant BI POWER GENERATION Evolution of Plant Ownership From Regulated Era Regulated Utility Monopolies To “Partially” Deregulated Era Independent.
Liberalization of Electricity Market in Taiwan Su, Jin-sheng Energy Commission Ministry of Economic Affairs August 8, 2001.
PJM©2009www.pjm.com Implications of Electric Transportation for the National Grid Ken Huber PJM Interconnection February 19, 2010.
Texas Wind Energy American Meteorological Society Summer Community Meeting – Norman Oklahoma Henry Durrwachter, P.E. August 12, 2009.
Lisa Linowes 2010 Mid-America Regulatory Conference Consumer Forum June 6 - 9, 2010 Kansas City, Missouri Wind Energy: An Assessment.
1 Clean Line Energy National Association of State Utility Consumer Advocates Charleston SC Annual Meeting June 2012.
Energy Security Powered by Microgrid Infrastructure Presented By: Colin Kelly Principal Distributed Energy Development Improving energy infrastructure.
PJM©2012www.pjm.com PJM’s Experience with Capacity Markets Terry Boston President & CEO PJM Interconnection Power Across Texas September 21, 2012.
Demand Response: What It Is and Why It’s Important 2007 APPA National Conference San Antonio, Texas June 26, :00 a.m. to Noon Glenn M. Wilson Director.
©2005 PJM 1 APEx The Mature PJM Market Kenneth W. Laughlin PJM October 31, 2005 Orlando, FL.
IWWG Annual Conference Wind Management at MISO July 22, 2011.
Electric Reliability Council of Texas (ERCOT) A Success Story… In Progress Ingmar Sterzing United States Association of Energy Economics (USAEE) Pittsburgh.
Lessons Learned from Existing RTOs John Moore January WCEA Meeting January 7 th, 2016.
Shaping Up The Duck Chart Independent Energy Producers Association Annual Meeting Mark Rothleder Vice President, Market Quality and Renewable Integration.
The Midwest ISO – Platform to Meet Tomorrow’s Challenges Wisconsin Industrial Energy Group August 7, 2008.
ABOUT PUBLIC POWER PRESENTER’S NAME TITLE AMERICAN PUBLIC POWER ASSOCIATION Data from the Energy Information Administration, 2014 and Public.
APTA Sustainability Workshop 2016
2018 LTSA Workshop August 2017 RPG Meeting Welcome to.
Making the Future Happen: AZ G&T Cooperative’s 57th Annual Meeting
EI-WECC Seams Study Needed
Wind Management at MISO
Asia-Pacific Energy Regulatory Forum
AZGT Annual Meeting Ted Vatnsdal - Senior VP & COO May 10, 2017
Integrating State Public Policy Resources into Markets June 2, 2017 Chairman Gladys M. Brown, Pa Public Utility Commission.
North American Markets Status
Flexible Forward Contracts for Renewable Energy Generators
Evolving Economic Dispatch in SPP
MRES Resource Operations in SPP
Teaching The Duck To Fly
Wholesale Electricity Marketing & Trading Fundamentals
Economics of Electricity Transformation
Operating a modern renewable-based grid
The Future of Demand Response in New England
Renewable Energy Markets
APTA Sustainability Workshop 2016
Opportunities in the Changing Energy System
ELECTRICITY MARKET GAME CHANGERS: TRANSFORMING TO A CLEANER, GREENER,
Transmission Planning at PJM Interconnection LLC
CHILE CALIFORNIA COUNCIL
Draft 2013 Energy-Efficiency Forecast
MIT tour of the California ISO Control Center March 31, 2015
31st USAEE/IAEE North American Conference
New England Electricity Restructuring Roundtable
Meet the Battery Revolution
2500 R Midtown Sacramento Municipal Utility District
Trends in U.S. Electric Power Markets and Renewable Integration
Peak-loads – driving New energy challenge
Lebanon Community Power & Liberty Utilities TOU Rate & Battery Pilot December 11, 2018 by City Councilor Clifton Below, Chair, Lebanon.
Forecasting and Operations CAISO Case
New England Economic Partnership James Daly Vice President Energy Supply Energy Market Perspectives Reliable Energy, Competitive Prices and.
Solar Energy Commercialization
Wholesale Electricity Costs
Jim Mcintosh Director, Executive Operations Advisor California ISO
The Risks to Coal Plants in Coming Years
Transforming the Electric Grid with Storage
The Future Grid and Energy Storage
Status of Energy Storage Policy in the U.S.
Presentation transcript:

MISO Market Transformation The Intersection Of Renewables, Transmission And Technology Raj Singamsetti Executive Director of Portfolio Strategy, ACES

Agenda: Impacts of Emerging Technologies Impacts of New Technologies Fracking (Market Prices) Energy Efficiency Declining Costs of Wind & Solar Generation Impacts of New Technologies Clean Line HVDC Transmission Energy Storage

Who Is ACES? Owned By 21 G&Ts and 1 Distribution Co-Op Provide Services to Additional 40+ Customers Municipals, Cooperatives, IPPs, Financial Institutions, Joint Action Agencies, Renewable Developers Individual Portfolio Management; Combined Assets Total: 50,000 MW of Generation From 300 Plants 50,000 MW of Load 3.0 Bcf/Day Peak Natural Gas 4 Regional Trading Centers Arizona, Indiana, Minnesota, and North Carolina Approximately 250 Employees

ACES Business Model ACES is Active in the National Marketplace Does Not Trade Its Own Book ACES Operates Similar to a Fund or Trust Manager ACES is Owned By Not-For-Profit Entities Shares Similar Values as Members ACES Keeps Costs Down Sharing Costs of Systems and Resources Across Members/Customers ACES’ Approach to Portfolio Optimization & Risk Management is Participatory & Hands-On

Natural Gas Forward Curve

Shale Producer Cost Example

Forward Gas Prices 10-Year Strip, Consumers and Chicago Citygate: ~$2.85/MMBtu NE Gas Averages 12% Lower

Impacts of Energy Efficiency

Energy Efficiency Savings From Electricity Efficiency Programs in 2015 Totaled Approximately 26.5 Million MWh Source: ACEEE

Reserve Margin Requirement (GW) MISO Load Decline Demand Forecast (GW) Reserve Margin Requirement (GW) Supply (GW) Reserves (GW) 2015/16 PY 127.3 145.5 150.3 23.0 (18%) 2016/17 PY 125.9 145.1 148.8 22.9 (18.2%) 2017/18 PY 125.0 144.8 148.5 23.5 (18.8%) 2017/18 Minimum Reserve Requirements: 15.8%

Declining Cost of Wind Decrease of 66% Source: Lazard

U.S Installed Wind Source: EIA

MISO Wind Capacity Source: MISO

Declining Costs of Solar Source: Lazard

Cumulative U.S. Solar PV Installations Source: NRCO / ACES

MISO Solar Capacity Source: MISO

Changes in Locational Marginal Price Shapes New Products Morning Ramp 7:00 - 8:00 Duck Belly 9:00 - 16:00 Evening Ramp 17:00 - 22:00 CAISO / WECC

Low Energy Prices MISO Minn Hub’s Low Prices Reflect Wind Penetration

Clean Line HVDC Projects Source: cleanlineenergy.com

Current Status of Projects Contingencies Rock Island Grain Belt Plains & Eastern Project Cost $2.0 Billion $2.2 Billion $2.5 Billion Project Miles 500 780 700 Project MW 3,500 4,000 Announced PPA MW 200* 100** FERC Approval? May 2012 May 2014 DOE State Permitting Waiting on Iowa, IL Supreme Court Waiting on Missouri Arkansas Contesting Interconnect Approval Needed PJM, MISO SPP, MISO, PJM SPP, MISO, TVA *Missouri Joint Municipal Electric Utility Commission **Tallahassee, FL (50 MW), East Texas Cooperatives (50 MW Option); TVA Has Agreed to Consider Project

Who Is Buying ? Simplify and Standardize Direct Renewable Energy Transactions Address Unique Renewable Contract Needs of Internet and Data Center Companies

Corporate PPA Locations

U.S. Storage Projects Source: UBS

Common Theme: Rapid Decline in Costs https://www.greentechmedia.com/articles/read/everyone-is-revising-electric-vehicle-forecasts-upward So why exactly is the forecast changing so drastically? Battery costs are coming down fast. We're already ahead of lithium-ion battery costs projected For 2030. And with 10 battery gigafactories under development around the world, battery costs and prices are expected to further outpace projections. Wood Mackenzie predicted that the cost of battery storage would decline to $200/KWh by 2030. As you can see in the graph, Tesla, with GM and Nissan closely behind, has surpassed that mark.

Revenue Streams Energy Arbitrage Regulation Payments Storing Energy When Market Prices Are Low, Dispatching When Prices Are High Value is Dependent on Wholesale Power Prices Regulation Payments Compensation Varies From Market to Market PJM Dynamic Regulation Signal (RegD)

Deferring Transmission Investment Provide Local Generation During 20 to 30 Peak Power Demand Days Per Year One of the First Projects in the Nation to Be Proposed Solely to Cost-Effectively Defer Transmission Investment http://www.utilitydive.com/news/alectra-utilitie http://www.utilitydive.com/news/aps-to-deploy-8-mwh-of-battery-storage-to-defer-transmission-investment/448965/s-ceo-someones-going-to-cannibalize-our-business-it-ma/504934/

Market Phases For Technology Adaption in Markets Phase 1: Market Experiments Phase 2: Market Integrates Phase 3: Market Coordinates

Questions?