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New Challenges Facing System Operators

New Challenges Facing System Operators. Stephen G. Whitley President & Chief Executive Officer New York Independent System Operator Past Present and Future of the Power Grid A Cornell University workshop in honor of Robert J. Thomas Ithaca, NY August 9, 2012. Topics. Growth of the Grid

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New Challenges Facing System Operators

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  1. New Challenges Facing System Operators Stephen G. Whitley President & Chief Executive Officer New York Independent System Operator Past Present and Future of the Power Grid A Cornell University workshop in honor of Robert J. Thomas Ithaca, NY August 9, 2012

  2. Topics • Growth of the Grid • Renewable Resources • Demand Response • Advancing Technology • Regional Collaboration

  3. Pearl Street Station distribution area, New York, Image 69231, Electricity & Modern Physics Collection. National Museum of American History - Smithsonian Institution Growth of the Grid 1882 Pearl Street Station 59 customers 600 kW of generation 10.5 miles of main lines 2012 New York Control Area 7 million electric utility customers 43,000,000 kW of generating capacity, transmission capability & demand-response 11,000 circuit-miles of high-voltage transmission

  4. Looking Ahead • Integrating Renewable Resources • Empowering Consumers • Advancing Technology • Enhancing Collaboration

  5. Wind Power • 2006 – NYISO exempts wind from undergeneration penalties as a variable energy resource • 2008 – NYISO establishes centralized wind forecasting system established • 2009 – NYISO integrates wind into Economic Dispatch system (First in nation) • Growing wind in NY… • Wind-powered generating capacity in NY grew from 48 MW in 2005 to 1,414 MW in 2012 • Another 4,000 MW of wind projects proposed for interconnection to NY grid

  6. 2009 -- NYISO implements first market rules in US enabling storage systems to participate in the markets as frequency regulation providers Energy storage complements development of variable energy resources Energy Storage • NY’s Energy Storage Firsts… • First commercial grid-scale battery-based storage system to operate as a generator in the US • First full-scale flywheel energy storage facility to provide frequency regulation service in the US

  7. Solar Power • 2012 – NYISO exempts solar power from under-generation penalties to compensate solar fully for all energy production • Future – Market evolution for solar resources likely to parallel wind power initiatives • Grid-scale solar in NY… • The largest photovoltaic array in the eastern US is the 32-MW Long Island Solar Farm at Brookhaven National Laboratory – completed in Nov. 2011

  8. Demand Response

  9. Shaving the Peak July 2011 heat waves could have pushed demand to over 35,000 MW -- a new record peak -- had DR programs not served to reduce load by more than 1,400 MW Estimated Load without DR Actual Load with DR

  10. Dynamic Pricing Impact of Dynamic Pricing on Hourly Loads • NYISO/Brattle Group Study • Dynamic pricing can encourage shift to off-peak usage • Potential 10-14% reduction in system peak • Market-based customer cost reductions of 2-5% 10

  11. Smart Grid • Smart Grid Investment Grant (SGIG) • Three-Year project -- $74 Million (DOE SGIG funding of $37 Million to cover 50% of project cost) • Project components • Creation of a statewide Phasor Measurement Network • Installation of Capacitor Banks • Enhanced reliability • PMU Installation one of key DOE recommendations from 2003 blackout study endorsed by FERC and NERC

  12. NYISO Infrastructure • New state-of-the-art primary control center in a facility adjacent to existing corporate center • Renovation of 42-year-old power control facility to serve as alternate control center Existing Corporate Center New Primary Power Control Center

  13. Regional Collaboration • Broader Regional Markets • Address “seams” between regional markets and grid operations • Collaborative effort - NYISO, PJM Interconnection, Midwest ISO, ISO- New England, Ontario’s Independent System Operator and Hydro Quebec • More frequent scheduling can facilitate better regional integration of variable, renewable resources

  14. Interregional Planning • Eastern Interconnection Planning Collaborative • 25 electric system planning authorities in U.S. and Canada representing 95% of Eastern Interconnection • Grassroots effort to integrate local planning interconnection-wide

  15. Moving Forward

  16. The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. www.nyiso.com

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