Sixth Northwest Conservation & Electric Power Plan Discussion of Proposed Generating Resource Action Items Jeff King Northwest Power and Conservation Council Generating Resources Advisory Committee May 6, 2009

2 Considerations Actionable recommendations: Platitudes vs: micro-detail Comprehensiveness: Significant vs: less-significant issues

3 Generating resource action areas Continue acquisition of cost-effective low-carbon resources Wind, geothermal, cost-effective small-scale renewables and CHP (to meet state RPS?) Geothermal development risk (??) Resource parity (state and federal financial incentives, RPS qualification) Ensure adequate flexibility to integrate variable renewable resources Improved wind forecasting control up-ramps Dynamic scheduling Upgrade thermal resources to provide balancing services (gas) Assess flexibility adequacy Assess comparative cost-effectiveness of flexibility augmentation options Develop balancing resources as needed and cost-effective Capacity to maintain reserve requirements Expand availability of cost-effective low carbon resource options for future acquisition Identification of sensitive environmental areas (wind, geothermal, biomass, wave) Wave energy confirmation plan Pilot projects (wave, forest residue biomass, PV?) Transmission development Basalt sequestration Support development of retrofit CO2 separation Enhanced biomass production/CO2 recycling Planning support Assess resource potential (inventory potential, monitor cost and performance) Monitor deepwater wind, nuclear, coal gasification Assess diversity benefits

4 Acquisition of cost-effective low-carbon generating resources Issue: Utilities need to secure resources to meet state RPS Objective: To encourage the development of the most cost- effective low-carbon resources Actions: Acquire most cost-effective qualifying resources considering available alternatives and full lifecycle cost of project development, operation and integration. (utilities) Encourage resource parity in terms of financial incentives and RPS qualification (states, utilities) Geothermal development risk management?? Survey for non-wind development opportunities (Bonneville, utilities) Priority: Moderate

5 Ensure adequate flexibility to integrate variable renewable resources Issue: Wind will continue to be the predominant renewable resource to be acquired in the near-term. Current and anticipated wind development is stressing the ability to integrate using conventional approaches. Regional and individual utility needs may differ. Objective: To ensure adequate and cost-effective balancing services (regulation and load-following) Actions: Improved real-time wind forecasting (Wind operators, Bonneville, utilities) Identify cost-effective level of wind ramping curtailment Expand dynamic scheduling capability (institutional and technical aspects) Upgrade thermal resources to provide balancing services (Thermal plant operators) Assess flexibility adequacy (Wind Integration Forum) Assess the availability and cost-effectivness of flexibility augmentation options (CC, GT, demand management, pump storage) Acquire balancing resources as needed and cost-effective (Bonneville, utilities) Evaluate and address the issues associated with integrating marine energy projects into the Northwest power grid (Wind Integration Forum). Priority: High

6 Ensure capacity to maintain peak reserve requirements Issue: Reserves to meet peak period loads appears sufficient on a regional basis, but individual utilities may need reserves in the near-term. Objective: To provide adequate and cost-effective capacity to meet peaking reserve requirements Actions: Acquire peak reserve resources as needed and cost-effective (Balancing authorities) Simultaneously consider capacity, energy and flexibility benefits of generation, storage and DR options for adding peaking capacity (Balancing authorities). Priority: Varies by balancing authority

7 Expand future availability of cost-effective low carbon resource options Issue: Currently available low-carbon resources are limited in scope and quantity. The supply of cost-effective low carbon resource options should be expanded to meet possible future needs. Objective: To provide a diversity of cost-effective low-carbon resource options for possible future development Actions: Support and review proactive efforts of the NRDC, Nature Conservancy and others to identifiy sensitive environmental areas potentially impacted by energy resource development Implement marine energy (wave & tidal current) confirmation plan (Oregon Wave Energy Trust) Develop pilot projects that will lay the framework for demonstration and commercial development of promising resources including wave, tidal current and forest residue biomass. Assist industry in identifying environmental issues and mitigation strategies. Transmission development (See transmission actions) Support development of geologic CO2 sequestration options with emphasis on those showing promise for the Northwest (saline acquifer and basalt sequestration) Support development of technologies for retrofit of CO2 separation capability to existing coal-fired facilities Support development of CO2-enhanced biomass production/CO2 recycling processes Priority: Moderate

8 Planning support Issue: Up-to-date information is needed to guide decisions in an increasingly dynamic power resoruce development environment. Objective: To provide supporting information and analysis to promote development of cost- effective generating resources Actions: Assess diversity benefits and economic tradeoffs of incorporating remote and promising resources into the regional power system (remore wind and solar, wave, tidal current, deepwater wind) Assess the cost-effectiveness and power generation potential of promising resources: Wave Tidal current Hydropower upgrades New small hydropower Cogeneration (Biomass & Gas) Biogas (Landfill gas, wastewater, food & agricultural residues Periodically review the development of technologies with possible future application to the Northwest, but with strong development support elsewhere: Deepwater windpower Nuclear Coal gasification Concentrating solar power Central-station photovoltaics Priority: Moderate

9 Possible additions Solar support actions (resource assessment, integration, pilot projects) REC stripping assessment (action in the revised wind integration action plan).