John Norden, Manager, Renewable Resource Integration ISO New England Inc NASUCA Mid-Year Meeting June 30, 2009 Roadmap to Renewable Integration in New England

New England’s Future Grid Distributed and renewable resources becoming main- stream –Demand Resources –Storage devices such as flywheels, batteries and plug-in electric vehicles –Wind and other intermittent renewable resources Wind resources present the largest source of renewable generation in New England © 2009 ISO New England Inc. 2

Integrating Wind Resources Will need: –Transmission infrastructure to deliver large-scale wind from remote areas to load centers –Transmission funding mechanisms i.e., participant funding, cost sharing agreements, federal incentives –Favorable investment and regulatory environment –Identification and resolution of operational challenges © 2009 ISO New England Inc. 3

Wind Integration Challenges: Operational Near-term forecast uncertainty –Can cause over/under commitment Variability –Regulation time-scale May require increased regulation capability –Load following time-scale May require additional ramping capability –Day ahead time-frame Complicates unit commitment Minimum generation issues Congestion management © 2009 ISO New England Inc. 4

Wind Integration Challenges: Operational, Cont. Coordination with other Balancing Areas –Sharing the variability (and reduce overall variability) –Wind from other areas (who pays/who owns?) Spinning reserve –Usually no effect—only large generators/lines Unless loss of wind (or forecast error) exceeds 2 nd largest contingency Non-spin reserve –Wind may increase non-spin reserve requirements © 2009 ISO New England Inc. 5

Wind Integration Challenges: Markets & Planning Markets –Over-commitment of wind may: Lead to inefficient use of resources Depress LMPs and/or raise out-of-merit compensation –Under-commitment of wind may: Increase price volatility –Real-time vs. Day-ahead Planning –Resource adequacy issues –Effective Load Carrying Capacity (ELCC) System wide, zonal, per generator (incremental)? © 2009 ISO New England Inc. 6

ME 1255 MW NH 330 MW VT 155 MW MA 30 MW MA Off-Shore 460 MW RI Off-Shore 350 MW On-Shore = 1770 MW Off-Shore = 810 MW Total = 2580 MW 7 © 2009 ISO New England Inc. * ISO-NE Interconnection Queue, June 2009 Wind Projects Proposed in ISO Queue

New England Wind Integration Study Objectives: –Determine technical requirements –Create wind model including on- shore and off-shore capability –Assess impact of wind development scenarios on system operations –Identify best practices to forecast wind –Determine contribution of wind to system adequacy © 2009 ISO New England Inc. 8

Conclusions The New England power system will undergo major changes in the next two decades The integration of wind will cause an evolution in the operation and planning of the power system ISO-NE is responding to the immediate challenges of the evolving grid and planning for the future needs of the power system © 2009 ISO New England Inc. 9