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HomeMy WebLinkAbout20140617June 2014 Solar Integration Study.pdfRr'c'[lvi- 1') ?$1\ JUH l', Pt{ 3: 0B ul J,?H L*cir,q,.1 iE s r i; i', 3rffi*. AN IDACORP COMDANV June 17,2014 VIA HAND DELIVERY Jean D. Jewell, Secretary ldaho Public Utilities Commission 472 West Washington Street Boise, ldaho 83720 Re: June 2014 Solar lntegration Study Report Dear Ms. Jewell: ln Order No. 33043, Case No. IPC-E-14-09, the ldaho Public Utilities Commission ("Commission") directed ldaho Power Company ("ldaho Powed' or "Company") to "complete its solar integration study as soon as possible." The study is complete. Enclosed please find five (5) copies of ldaho Powe/s June 2014 Solar lntegration Study Report. ldaho Power is preparing an application case filing where it will ask the Commission to implement a solar integration charge based upon this study. The Company anticipates this filing will be made within the next two weeks. Please contact me at (208) 388-5317 if you have any questions. DONOVAN E. WALKER Lead Counsel DEW:csb Enclosures ,5L?c/a Donovan E. Walker 1221 W. ldaho St. (83702) PO. Box 70 Boise, lD 83707 i' r E C.!: l\i -.i)I '.:- v ''* - ?01\ JUi{ l1 PH 31 0B Solar lntegration Study Report rem. June 2014 @ 2014 Idaho Power ul lifii[$-co-i*:ti!s ldaho Power Company Solar lntegration Study Report Page 1 Solar lntegration Study Report ldaho Power Company LIST OF TABLES Table I Solar build-out scenarios studied ......................3 Table 2 Average integration cost per MWh for solar build-out scenarios.... ..........................3 Table 3 Solar build-out scenarios studied ......................6 Table 4 AgriMet site latitude, longitude, and elevation used in IPC's solar integration study .................7 Table 5 Forecast error for the hour-ahead solar production forecast...... ...........10 Table 6 Forecasted incremental and decremental capacity held in reserve, water year 2012 .................1 I Table 7 Inputs for the solar integration study production cost simulations............ ..............12 Table 8 Average integration cost per MWh for solar build-out scenarios.... ........................15 Table 9 Incremental integration cost results for solar build-out scenarios ........15 LIST OF FIGURES Figure I AgriMet sites used in IPC's solar integration study ............7 LIsT OF APPENDICES Appendix I Solar integration study appendix.... .................21 Page2 ldaho Power Gompany Solar lntegration Study Report ExecuTME SUMMARY Electric power from solar photovoltaic resources exhibits greater variability and uncertainty than energy from conventional generators. The greater variability and uncertainty exhibited by solar photovoltaic resources require an electric utility integrating solar to modiS the operation of dispatchable generating resources. The modified operation involves the sub-optimal dispatch of generators to carry extra capacity in resenre for responding to unplanned solar excursions. The objective of the Idaho Power solar integration study is to determine the costs of the operational modifications necessary to integrate solar photovoltaic plant generation. This study determines these costs for four solar build-out scenarios provided in Table l. Table 1 Solar build-out scenarios studied !nstalled Capacity of Solar Build-Out Scenarios Site 100 megawatts (MW)300 Mw 500 Mw 700 Mw Parma, lD Boise, lD Grand View, lD Twin Falls, lD Picabo, lD Aberdeen, lD TotalMW 10 20 20 20 10 20 r00 30 60 60 60 30 60 300 50 100 100 100 50 100 500 100 100 150 100 100 150 700 The study determines solar integration costs through paired simulations of the ldaho Power system for each solar build-out scenario. Each pair of simulations consists of a test case in which extra capacity in reserve is required ofdispatchable generators to allow them to respond to unplanned solar excursions and a base case in which no extra capacity in reserve is required. The solar integration costs indicated by the simulations are provided in Table 2. Table 2 Average integration cost per MWh for solar build-out scenarios 0-100 Mw 0-300 Mw 0-s00 Mw 0-700 Mw !ntegration cost $0.4O/]'/VVh $1.2olMwh $1.80/[/VVh $2.5O/tvlvvh Note: Costs arein 2014 dollars and rounded from simulation results to the nearest $0.'10. Page 3 Solar lntegration Study Report ldaho Power Company This page left blank intentionally. Page 4 ldaho Power Company Solar lntegration Study Report AcxT.IoWLEDGMENTS Idaho Power acknowledges the important contribution of the Technical Review Committee (TRC) in this solar integration study. The TRC has been involved from the study outset in August 2013 and has provided substantial guidance. [daho Power especially thanks the TRC for the collegial discussions of solar integration during TRC meetings. These discussions helped shape the study methods followed and are consistent with the TRC guidelines as provided by the Utility Variable-Generation lntegration Group (WIG) and the National Renewable Energy Laboratory NREL) GIVIG and NREL n.d.). The following are members of the Idaho Power solar integration study TRC: o Brian Johnson, University of Idaho o Jimmy Lindsay, Portland General Electric (formerly of Renewable Northwest Project) o Kurt Myers, Idaho National Laboratory o Paul Woods, (formerly of City of Boise) o Cameron Yourkowski, Renewable Northwest Project (replacing Jimmy Lindsay) Staff from the ldaho and Oregon regulatory commissions have participated as observers throughout the process. The following staff have been observers of the process: o Brittany Andrus, Public Utility Commission of Oregon (OPUC) staff o John Crider, OPUC staff o Rick Sterling,Idaho Public Utilities Commission (IPUC) staff TRC members and regulatory observers serve either voluntarily or are paid by their own employers and receive no compensation from ldaho Power. The company is grateful for the TRC's time spent supporting the study and recognizes this support has led to a better study. lrurnooucnoN Electric power from solar photovoltaic resources exhibits greater variability and uncertainty than energy from conventional generators. Because of the greater variability and uncertainty, electric utilities incur increased costs when their other generators are called on to integrate photovoltaic solar plant generation. These costs occur because power systems are operated less optimally in order to successfully integrate solar plant generation without compromising the reliable delivery of electrical power to customers. Idaho Power has studied the modifications it must make to power system operations to integrate solar photovoltaic power plant generation connecting to its system. The objective of this solar integration study is to determine the costs of the operational modifications necessary to integrate solar plant generation. This report is intended to describe the operational modifications and the resulting costs. Page 5 Solar lntegration Study Report ldaho Power Company In collaboration with the TRC, Idaho Power organized the study into four primary steps: 1. Data gathering and scenario development 2. Statistical-based analysis of solar characteristics 3. Production cost simulation analysis 4. Study conclusions and results These steps were formulated based on an article published by the Institute of Electrical and Electronics Engineers (IEEE) describing methods for studying wind integration (Ela et al. 2009). While the IEEE article, which was authored by leading researchers at the NREL, was written from the perspective of studying grid integration of wind generation, the principles underlying the study of wind integration are readily transferrable to the study of solar integration. Both wind and solar bring increased variability and uncertainty to power system operation, and a key objective of an integration study for each is to understand how variability and uncertainty lead to impacts and costs. Dara GarnenrNc AND Scerunnro DEVELopMENT A critical element of the solar integration study is the solar generation data developed for the studied solar build-out scenarios. For Idaho Power's solar integration study, the solar build-out scenarios in Table 3 were studied. Table 3 Solar build-out scenarios studied lnstalled Capacity of Solar Build-Out Scenarios 100 megawatts (MW)300 Mw 5OO MW 7OO MW Parma, lD Boise, lD Grand View, lD Twin Falls, lD Picabo, lD Aberdeen, lD Total MW 10 20 20 20 't0 20 100 30 60 60 60 30 60 300 50 100 100 100 50 100 500 100 100 150 100 100 150 700 The above build-out scenarios were developed in consultation with the TRC to represent geographically dispersed build-outs of solar power plant capacity. The importance of geographic dispersion in reducing integration impacts and costs is discussed in greater detail later in this report. The sites from the solar build-out scenarios are part of the established United States (U.S.) Bureau of Reclamation (USBR) AgriMet Network (AgdMet). AgriMet is a satellite-based network of automated agricultural weather stations operated and maintained by the USBR. The stations are located in irrigated agricultural areas throughout the Pacific Northwest and are Page 6 ldaho Power Company Solar lntegration Study Report dedicated to regional crop water-use modeling, agricultural research, frost monitoring, and integrated pest and fertility management. The six sites are spread across southern Idaho and cover over 220 miles from east to west (Figure I ). Sites represent elevations ranging from 2,300 feet to 4,900 feet (Table 4). \J*.-,t"'*fl;t.l -J'k it ffi- i, Parma .i ,, Aberdeen l t.. Thin Falls Figure 1 AgriMet sites used in IPC's solar integration study Table 4 AgriMet site latitude, longitude, and elevation used in IPC's solar integration study Latitude (N)Longitude (west)Elevation (feet) Elevation (meter) Parma Boise Grand View Twin Falls Picabo Aberdeen 116.93 1 16.1 I 116.06 114.35 114.17 112.83 43.'t8 43.60 42.91 42.55 43.31 42.95 2,305 2,720 2,580 3,920 4,900 4,400 702 829 786 1 ,195 1,494 1,341 All data used in the integration study are 5-minute interval global horizontal irradiance data from each site. Idaho Power worked directly with the USBR Pacific Northwest Region AgriMet manager to obtain data for the sites. AgriMet data was augmented with data from the University of Oregon Solar Radiation Monitoring Laboratory when AgriMet data was incomplete. The use of high-resolution (5-minute interval) data is critical to characterizing the variability of solar. An alternative data-gathering approach was necessary for the Grand View site, for which only 15-minute data was available. To acquire 5-minute data for Grand View, Idaho Power contracted Page 7 Solar lntegration Study Report ldaho Power Company with SolarAnywhere to provide high-resolution modeled solar data. SolarAnywhere uses hourly satellite images processed using the most current algorithms developed and maintained by Dr. Richard Perez at the University at Albany (SI-INrY). The algorithm extracts cloud indices from the satellite's visible channel using a self-calibrating feedback process capable of adjusting for arbitrary ground surfaces. The cloud indices are used to modulate physically-based radiative transfer models describing localized clear-sky climatology. Wavelet-Based Variability Model AgriMet solar data represents conditions at a single point. To better reflect conditions at a solar plant size, the TRC recommended the use of the wavelet-based variability model (WVM) developed by Dr. Matt Lave of Sandia National Labs (Lave et al. 20l3a,b). WVM is designed for simulating solar photovoltaic power plant output given a single irradiance point-sensor time series. The application of the W\IM to the point-sensor time series produces a variability reduction reflecting an upscaling of the point-source data to a solar plant-sized area. Research and use into the WVM showed it is not useable at time steps (intervals) greater than l0 minutes and that times steps greater than 5 minutes may under-represent variability in dispersed systems. Solar Plant Characteristics This study assumes solar plants comprising the build-out scenarios occupy 7 acres per MW of installed capacity. Solar plant sizes in the build-out scenarios, as well as figures presented for solar generation, are in terms of AC (alternating current) MW. Photovoltaic panels are assumed to be of standard crystalline silicon manufacture. Panels are assumed to be fixed south facing and tilted at latitude. While panel orientation and tracking capability are key factors in the determination of avoided costs, these attributes are of lesser importance with respect to the variability and uncertainty driving integration costs. Illustrations and data summarizing the solar production of the studied build-outs are provided in Appendix l. SrnnsncAL-BASED Aruarvsrs oF Soun GnenncrERrsncs The intent of the statistical-based analysis of solar characteristics is to translate solar's variability and uncertainty into an increased requirement for ancillary services, where ancillary services in this context relate to the electrical system's capacity to maintain a balance between customer demand and generation. For the study, the variability and uncertainty associated with solar generation were viewed from the perspective of hour-ahead scheduling of the Idaho Power system. There are three critical elements from this perspective: l. Forecast hourly average solar production for the operating hour being scheduled 2. Lower bound for instantaneous solar production during the operating hour 3. Upper bound for instantaneous solar production during the operating hour From the perspective of real-time generation scheduling in practice, the lower and upper bounds would be considered an interval or band on solar production, and the occurrence of Page 8 ldaho Power Company Solar lntegration Study Report solar production outside the interval at any moment during the hour is highly unlikely. Moreover, while under prudent operating practices the occurrence of solar production outside the lower and upper bounds should be infrequent, occasional solar excursions outside these bounds do not necessarily bring about events for which system reliability is jeopardized. Conversely, the occurrence of solar production within the interval between the lower and upper bounds would be considered likely enough to warrant the scheduling of dispatchable generators to have capacity to respond if solar production varies during the hour from the forecasted level of production toward either bound. An understanding of ldaho Power's participation in the regional electric power market is critical to this approach. Idaho Power primarily participates in the Pacific Northwest's Mid-Columbia (Mid-C) electric power market. The company participates in the Mid-C market at multiple time frames ranging from years or months in advance for long-term operations planning to hour-ahead generation scheduling in real time. The focus for this study is the real-time market activities occurring as part of hour-ahead system scheduling. The study assumes hour-ahead schedulers require the delivery of forecast hourly average solar production and the above-described lower and upper bounds 45 minutes prior to the start of the operating hour being scheduled. Hour-ahead scheduling is assumed binding, and unexpected conditions occurring during the operating hour being scheduled must be managed by changing production for Idaho Power-owned dispatchable resources. Idaho Power recognizes efforts to establish intra-hour trading in U.S. electric power markets. However, company experience has shown the intra-hour market to be currently highly illiquid. Therefore, the last opportunity to participate in the electric power market is at the hour-ahead time frame; unexpected conditions occurring during the operating hour (e.g., unexpected levels of solar production) cannot be managed through market activity at this time. Hour-Ahead Solar Production Forecast The hour-ahead solar production forecast was developed to predict hourly average solar production for the operating hour being scheduled and lower and upper bounds for instantaneous solar production during the operating hour. This forecast was developed using a persistence-based technique that relies on observations from the previous hours to inform the model about subsequent forecast hours. The results ofthe forecast are a unique set of values (average production, upper bound, and lower bound) for every hour in the year. The average production forecast is derived based on two components. The first component accounts for the amount of generation the system observed from the last 20 minutes of the preceding forecast hour. This component is referred to as the persistence component. The persistence component serves as a mechanism to increase the average forecast during times of high solar production and decrease the average forecast during times of low solar production. These increases and decreases are made to the forecast hourly and account for changes in solar production. In general, the shape of the production from a solar photovoltaic system increases before solar noon and decreases after solar noon. Every day ofthe year has a unique clear-day shape. Generally, summer days are long and have a high potential for solar production while winter days are shorter and have less potential. The forecast accounts for the uniqueness of each Page 9 Solar lntegration Study Report value for every hour in the year. The shaping component is a ratio of the maximum solar potential of the forecast hour divided by the maximum potential of the previous hour. By utilizing a shaping component and a persistence component, the average production forecast captures hourly changes due to atmospheric conditions and seasonal effects. Table 5 provides the forecast error for the hour-ahead solar production forecast. Table 5 Forecast error for the hour-ahead solar production forecast 't00 Mw 300 Mw 500 Mw 7OO MW day by applylng an hourly shaping factor. This shaping component, or shaping factor, is a unique Absolute Mean Hourly Error (MW)12.2 Table 5 reports the absolute mean error calculated on an hourly basis for water year 2012. The absolute hourly error is calculated as the absolute difference between the average hourly forecast and the average of 5-minute observed production data for a given hour. It is noted that the 5-minute observed production data is the output of the WVM. The absolute mean hour errors range from 1.9 MW to 12.2 MW for the 100 MW and 700 MW build-out scenarios, respectively. The lower bound for instantaneous solar production during the operating hour is forecasted as a percentage ofthe forecast average. tn addition to the application ofa percentage ofaverage, the forecasting tool adjusts the lower bound forecast upward if the previous lower bound forecast was substantially too low. As a result of this secondary adjustment to the lower bound, the amount of incremental capacity held in reserye for the coming hour is reduced. Similar to the lower bound, the upper bound for instantaneous solar production during the operating hour is forecasted as a percentage ofthe forecast average. In addition to the application of a percentage of average, the forecasting tool adjusts the upper bound forecast downward if the previous upper bound forecast was substantially too high. As a result of this secondary adjustrnent to the upper bound, the amount of decremental capacity held in reserve for the coming hour is reduced. The upper and lower bounds are expected to capture the overwhelming majority of the variability observed in solar production. The upper bound is forecasted in such away that only 2.5 percent of all observations exceed the upper bound for the entire year. Similarly, the lower bound is defined in such a way that only 2.5 percent of all observations are below the lower bound for the entire year. The hour-ahead forecast for the average production, lower bound for instantaneous solar, and upper bound for instantaneous solar are calculated for every hour of the year. The amount of incremental capacity held in reserve for a given hour is calculated as the difference between the average production forecast and the lower bound. The amount of decremental capacity held in reserve for a given hour is calculated as the difference between the average production forecast and the upper bound. The total amount of capacity held in reserve for a given hour is used by the production cost model to calculate an integration cost. These reserve amounts, as well as the hour-ahead forecast for solar production, are input to the production cost model on an hour-by- hour basis, simulating the practice of real-time generation scheduling. Table 6 reports the 9.65.81.9 Page 10 ldaho Power Company Solar lntegration Study Report forecasted amount of capacity held in reserve for water year 2012. Further explanation of the derivation of the hour-ahead solar production forecast and the lower and upper bounds is provided in Appendix l. Table 6 Forecasted incremental and decremental capacity held in reserve, water year 2012 Solar Build.Out Scenarios 100 Mw 300 Mw 500 Mw 700 Mw Average hourly production (MW) Average hourly capacity held in reservs-incremental (MW) Average hourly capacity held in reserve-decremental (MW) 17.0 4.9 4.9 52.5 13.2 15.2 89.0 21.2 26.9 118.2 27.6 34.8 PnooucnoN Cosr SrurulnnoN ANALysrs The production cost simulations are designed to isolate the effects on the system associated with integrating solar. Under this design, production cost simulations are paired into a base case and test case, with all inputs to the paired simulations equivalent except an amount of capacity held in reserve in the test case simulation for integrating solar. The capacity held in reserve for the test case varies hourly depending on the hour-ahead forecast of solar production for a given operating hour and the lower and upper bounds on instantaneous solar production for the operating hour. The derivation of the hour-ahead solar production forecast and the lower and upper bounds is described in the previous section of this report. Design of Simulations The production cost simulations are set up on a water-year calendar, where by convention a water year is from October 1 to September 30 and is designated by the calendar year in which the l2-month period ends. For example, water year 2013 is the l2-month period from October 1, 2012, through September 30, 2013. The Idaho Power generating system as it exists at the time of issue of this report is assumed for the production cost simulations. Critical elements of the simulated system of generating resources include 17 hydroelectric facilities totaling 1,709 MW of nameplate capacity, 3 coal-fired facilities totaling 1,1l8 MW of nameplate capacity, and 3 natural gas-fired facilities totaling 762MW of nameplate capacity. An illustration of the generating resources is provided in Appendix 1. Idaho Power's critical interconnections to the regional market are over the Idaho-Northwest, Idaho-Utah (Path C), and ldaho-Montana paths. For the solar integration study modeling, the separate paths were combined to an aggregate path for off-system access. Purchases from the regional market are treated separately from sales to the regional market. Net firm purchases from the market are limited on a monthly basis to only the capacity and energy required to serve Page 11 Solar lntegration Study Report ldaho Power Company Idaho Power's retail load. Sales to the market are limited to 500 MW in every hour. This profile of purchases and sales reflects the current capabilities of Idaho Power's transmission system. Idaho Power is pursuing the development of the Boardman to Hemingway Transmission Project (B2H), which will increase ldaho Power's access to the Northwest to make additional purchases and sales. However, the transmission line's current in-service date is at least five years into the future. Previous integration studies have shown that unless there is a liquid capacity balancing market, B2H will not significantly impact the solar integration cost. ldaho Power is actively engaged in regional market discussions that could exist when B2H is completed, but the benefits of a market are highly dependent on its design, and it is premature to speculate or incorporate in this integration study. Simulation lnputs Table 7 provides key inputs to the solar integration study production cost simulations. Table 7 lnputs for the solar integration study production cost simulations lnput Assumed input level Solar production Snake River streamflows Customer demand Nymex-Natural gas prices Mid-C-Electric power market prices Non-wind PURPAI Wind (PURPA and PPA)1 Geothermal PPAs Waler year 2Q12 Water year 2012 (median-type streamflows) Waleryear2012 Water year 2012 Waler year 2012 Water year 2012 Water year 2013 Waler year 2014 ' PPA and PURPA represent facilities from which generation is contractually purchased as a power purchase agreement (PPA) or under the federal Public Utility Regulatory Policies Act of 1978 (PURPA). The selection of water year 2012 for the majority of the inputs was driven by the selection of Snake River streamflows for water year 2012 (October 1,2}l1-September 30,2012) and the objective to use time-synchronous input data to the greatest possible extent. Snake River Basin streamflow conditions as observed in water year 2012 were selected because the observed water year 2012 Brownlee reservoir inflow volume of 13.6 million acre-feet is representative of median-type streamflow conditions. A graph of Brownlee inflow volumes for water years 1990 to 2013 is provided in Appendix 1. The solar production data used in the production cost simulations are considered to be the solar production that would have been observed during water year 2012had the four studied solar build-out scenarios existed. As described previously, the solar production data is developed by applyng a wavelet smoothing transformation technique to 5-minute interval AgriMet and SolarAnywhere data. Importantly, the use of observed customer demand from water year 2012 allows time synchronization between solar and customer demand data in the study. While customer demand has grown since 2012, the benefit of using time-synchronous Page 12 ldaho Power Company Solar lntegration Study Report customer demand and solar production data is considered to justify the use of 2012 customer demand data. Monthly average customer demand used in the modeling is provided in Appendix 1. Water year 2012 Nymex natural gas prices and Mid-C electric power market prices are inputs to the simulations. These prices, expressed as a monthly average, are provided in Appendix 1. Wind capacity under contract with Idaho Power grew by more than 60 percent during water year 2012, expanding from 395 MW of installed capacity to 638 MW. Because of the non-constant amount of on-line wind capacity during water year 2012,the simulations used observed hourly wind production data for water year 2013. The amount of on-line wind capacity during water year 2013 changed only by the addition of a single 40 MW project added during December 2013 that brought wind to the current on-line capacity of 678 MW. Monthly energy production used in the modeling is included in Appendix l. The remaining energy purchased from non-wind PURPA qualiffing facilities is input into the simulations as observed during water year 2012.The monthly energy from the non-wind PURPA facilities in included in Appendix l. Baseload generation from geothermal facilities confractually selling to ldaho Power under PPAs is input as curently projected from these facilities. The amount of baseload generation delivered from these facilities varies seasonally. The amount used in the production cost simulations ranges from22 MW to 32 MW. Simulation Model Idaho Power used an internally developed system operations model for the solar integration study. The model determines optimal hourly scheduling of dispatchable hydro and thermal generators with the objective of minimizing production costs while honoring constraints imposed on the system. System constraints used in the model capture numerous restrictions goveming the operation of the power system, including the following: o Reservoir headwater constraints o Minimum reservoir outflow constraints o Reservoir outflow ramping rate constraints o Generator minimum/maximum output levels o Marketpurchase/saleconstraints o Generator ramping rates The model also stipulated that demand and resources were exactly in balance and importantly that hourly reserve requirements were satisfied. The extra capacity in reserve held to manage variability and uncertainty in solar production drives the production cost differences between the Page 13 study's two cases. The derivation of the extra capacity in reserve held for solar is described previously in this report. Solar lntegration Study Report Wind and Load Reserves Capacity in reserve to manage variability and uncertainty in load and wind is included in the simulations in equivalent amounts for the study's two cases. By carrying equivalent amounts in reserve for load and wind, the production cost differences yielded by the study's simulations can be attributed to the extra capacity held in reserve for solar. Thus, while reserves carried for load and wind are not drivers of production cost differences in the paired simulations, it is nevertheless desirable in simulating the system as accurately as possible to incorporate reserve levels for load and wind representative of levels carried in practice. To manage variability and uncertainty in load, capacity in reserve equal to 3 percent of load is held on dispatchable generators in the modeling for the solar integration study. The amount of simulated capacity in reserve for balancing wind is based on an analysis performed for the Idaho Power wind integration study as described in the February 2013 Wind Integration Study Report (Idaho Power 2013). The simulated reserves for the solar integration study are based on a scaling of the reserves at the wind study's 800 MW wind build-out scenario to the water year 2013 wind build-out of 678 MW. Conti ngency Reserve Obl igation The study of integration impacts and costs focuses on the need to carry bidirectional capacity in reserve for maintaining compliance with reliability standards. However, balancing authorities, such as Idaho Power, are also required to carry unloaded capacity in reserve for responding to system contingency events, which have traditionally been viewed as large and relatively infrequent system disturbances affecting the production or transmission of power (e.g., the loss of a major generating unit or major transmission line). System modeling for the solar integration study imposes a contingency reserve intended to reflect this obligation equal to 3 percent of load and 3 percent of generation, setting aside this capacity for both study cases (i.e., base and test). Flexible Capacity Resources As described previously, the focus of the production cost simulations for the solar integration study is the real-time market activities occurring as part of hour-ahead system scheduling. The study assumes hour-ahead schedulers require the delivery of forecast hourly average solar production and the lower and upper bounds for solar production 45 minutes prior to the start of the operating hour being scheduled. Hour-ahead scheduling is then assumed binding, and unexpected levels of solar production occurring during the operating hour being scheduled must be managed by Idaho Power's system. To manage deviations in solar production from the forecast during the operating hour, Idaho Power must schedule incremental and decremental capacity in reserve on dispatchable generators. In the modeling for the study, this capacity in reserve is scheduled on Hells Canyon Complex (HCC) hydroelectric generators (Brownlee, Oxbow, and Hells Canyon), natural gas-fired generators (Langley Gulch, Danskin, and Bennett Mountain), and Jim Bridger Page 14 ldaho Power Company Solar lntegration Study Report coal-fired generators. The allocation of reserve to these generators matches Idaho Power's practice for balancing variations in wind production and load. Resurrs The objective of the Idaho Power solar integration study is to determine the costs of the operational modifications necessary to integrate solar photovoltaic power plant generation. The integration costs are driven by the need to carry extra capacity in reserve to allow bidirectional response from dispatchable generators to unplanned excursions in solar production. The simulations performed for the ldaho Power solar integration study indicate the following costs associated with holding the extra capacity in reserve (Table 8). The provided costs are the costs to integrate solar production for calendar year 2014, and are not costs averaged or levelized over the life of a solar power plant. Table 8 Average integration cost per MWh for solar build-out scenarios 0-100 MW 0-300 Mw 0-500 MW 0-700 MW lntegration cost $0.40/MWh $1.20l[4VVh $1.80/[A /h $2.50/MWh Note: Costs are in 2014 dollars and rounded from simulation results to the nearest $0.10. The integration cost results in Table 8 are the cost per MWh to integrate the full installed solar power plant capacity at the respective scenarios studied. For example, the integtation cost results indicate the total solar power plant capacity making up the 500 MW build-out scenario brings about costs of $1.80 for each megawatt-hour (MWh) integrated. lntegration costs can be expressed altematively in terms of incremental costs. Integration costs when expressed incrementally assume early projects are assessed lesser integration costs, and later projects need to make up the difference to allow full cost recovery for a given build-out scenario. For example, if solar plants comprising the first 100 MW build-out are assessed integration costs of $0.40iMWh, then plants comprising the increment between 100 MW and 300 MW need assessed integration costs of $l.50iMWh to allow full recovery of the $1.204/twh costs to integrate 300 MW of solar plant capacity. lncremental solar integration costs are provided in Table 9. Table 9 lncremental integration cost results for solar build-out scenarios 0-100 Mw t00-300 Mw 300-500 Mw s00-700 Mw lncrcmental integration cost $0.40/l\llVVh $1.50/MWh $2.8o/MWh $4.40/t\Mh Note: Costs are in 2014 dollars and rounded from simulation results to the nearest $0.10. Page 15 Solar lntegration Study Report ldaho Power Company Study Findings Hour-Ahead Sola r Production Forecasting Analyses suggest a persistence-based forecast with adjustrnent to account for known changes in the sun's position provides a reasonable production forecast for hour-ahead operations scheduling. The persistence-based hour-ahead solar production forecast used for the study is based entirely on observed production and consequently could be readily adopted in practice. While a day-ahead solar production forecast would be necessary in practice for a balancing authority integrating solar, deviations from the day-ahead forecast can be managed through a combination of market transactions and operations modifications, and consequently the study imposes no reserve requirement to cover deviations for day-ahead solar production forecasts. Compared to wind, system operators managing a balancing authority integrating solar would have the benefit of at least six hours at the start of day with no or little solar production. During this period of no or little solar production, system operators could evaluate the day-ahead solar production forecast using information from updated weather forecast products and begin to plan for necessary actions to manage deviations from the day-ahead solar production forecast. In contrast, deviations from the hour-ahead solar production forecast can only be covered by Idaho Power's dispatchable generators. The analysis for the solar integration study by design determines the amounts of bidirectional capacity in reserve that system operators would need to schedule to position dispatchable generators to cover possible deviations from the hour-ahead solar production forecast. Integration costs are a result of the sub-optimal scheduling of the dispatchable generators associated with holding the solar-caused capacity in reserve. Comparison to Wind lntegration This study indicates solar plant integration costs are lower than wind plant integration costs. The lower integration costs associated with solar are fundamentally the result of less variability and uncertainty. As described in the preceding section, the study assumes deviations in solar plant production from day-ahead forecast levels can be managed through a combination of market transactions and operations modifications, allowing day-ahead generation scheduling to avoid extra reserye burden. Therefore, reserves carried for solar generation can be focused on readying dispatchable generators to respond to unplanned solar excursions from hour-ahead production forecasts. Moreover, logic incorporated in the derivation of lower and upper bounds on the hour-ahead production forecast, which can be readily adopted in practice, allows the adjustrnent of the bounds in response to observed solar production patterns. ln effect, the hour-ahead forecast is based on a persistence oflevel ofproduction (adjusted for the known change in the sun's position), as well as a persistence of variability in production. The consequence of these methods is that bidirectional capacity held in reserve on dispatchable generators to respond to solar variability and uncertainty is less than that required for responding to wind. Qualitatively, solar is more predictable than wind. Sunrise and sunset times, as well as the time of solar noon, are a certainty. The theoretical maximum level of production can be Page 16 ldaho Power Company Solar lntegration Study Report readily derived, reflecting patterns on daily, monthly, and seasonal time scales. Finally, land requfuements for a solar power plant are likely to promote a relatively high level of dispersion, which is critical to the mitigation of impacts from severe and abrupt ramps in production exhibited by individual panels in response to passing clouds. The effects of geographic dispersion are discussed further in the following section. Geographic Dispersion Production for a single solar photovoltaic panel exhibits severe and abrupt intermittency during variably cloudy conditions; a TRC member expressed during a meeting that for a single panel, the drop in production from a cloud is effectively instantaneous. The effect of severe and abrupt intermittency is commonly attributed to the absence of inertia in the photovoltaic process. While the intermittency effect is severe for a single panel, dampening occurs when considering the production from a solar plant-sized aggregation of panels, and even further dampening occurs when considering the production from several solar plants spread over a region such as southern Idaho. Therefore, geographic dispersion has significant influence on solar integration impacts and is perhaps of greater importance for solar than wind. The four studied solar build-out scenarios each have capacity installed at six southem Idaho locations spread over more than 220 miles from east to west. Because of the substantial geographic dispersion, severe instantaneous ramps in solar production for the study data are relatively infrequent. If solar plant development in southem ldaho occurs in a more clustered fashion than assumed for this study, actual integration impacts and costs will be higher than the results of this study. Transmission and Distribution The focus of tdaho Power's solar integration study is a macro-level investigation of the operations modifications necessary to maintain balance between power supply and customer demand for a balancing authority integrating photovoltaic solar plant generation. The objective is to understand the impacts and costs of the sub-optimal operation of dispatchable generating capacity. The study is not an investigation of integration issues related to the delivery of energy from proposed solar photovoltaic power plants to the retail customer; these issues are addressed in individual interconnection studies performed on a plant-by-plant basis. Spring-Season I nteg rati on The production cost simulations suggest reserve requirements are particularly problematic when hydroelectric resources are highly constrained, such as frequently occurs during spring-season periods characterized by high water, low customer demand, and high generation from variable generating resources, such as wind and solar. Experience has shown wind integration to be particularly challenging during these periods, and the simulations suggest similar challenges integrating solar. This study finding is corroborated by NREL in the Western Wind and Solar Integration Study Phase 2 (Lew et al. 2013), which reports the need for flexibility is notably high during the spring and that during these periods the curtailment of variable generation is one source of flexibility enabling the balancing of generation and customer demand. Page 17 Solar lntegration Study Report ldaho Power Company Cottcr-usroNS The cost to integrate the variable and uncertain delivery of energy from solar photovoltaic power plants is driven by the need to carry extra capacity in reserve. This extra capacity in reserve is necessary to allow bidirectional response from dispatchable generators to unplanned excursions in solar production. The simulations performed for Idaho Power's solar integration study indicate the costs associated with holding the extra capacity in reserve (Table 8). Further Study The integration of variable generation, including the study of methods for determining integration impacts and costs, continues to be the subject of considerable research. The breadth of this research highlights the interest in variable-generation integration, as well as the evolution of study methods. Idaho Power appreciates the level of interest in its study of integration of variable generation and recognizes the likelihood of a second-phase study with expanded scope. During the course of the solar integration study, in discussions with the TRC and participants of the public workshop, Idaho Power has received suggestions for a second-phase study of solar integration. Suggestions for a second phase include the study of the following: o Altemative water-year types (e.g., low-t1,pe and high-type) o Intra-hourtradingopportunities o Shortening the hour-ahead forecast lead time from 45 minutes to 30 minutes o Clustered solar build-out scenarios o Smaller solar build-out scenarios (e.g., 50 MW of installed capacity) o Other solar plant technologies (e.9., tracking systems or varied fixed-panel orientation) o Distributed solar systems (i.e., rooftop systems) o Correlation between solar, wind, and load variability and uncertainty o Improved forecasting methods . Energy imbalance markets o Voltage/frequencyregulation Idaho Power will consider these suggestions during the development of scope for a second-phase study. Page 18 ldaho Power Company Solar lntegration Study Report LrenRrURE Greo Ela E., M. Milligan, B. Parsons, D. Lew, and D. Corbus. 2009. The evolution of wind power integration studies: Past, present, and future. IEEE Power & Energy Society General Meeting,2009 PES '09. Idaho Power.2013. Wind Integration Study Report. Boise, ID: Idaho Power. Lave, M., A. Ellis, and J. Stein. 2013a. Simulating solar power plant variability: A review of current methods. Sandia report-SAND2013-4757. http://enerey. sandia. eov/wp/wp-contenUeallery/uploads/SAND20 I 3 - 4757_Simulatine Solar_Power Plant Variability A_Review of Current_Methods_Fl NAL.pdf. Accessed June 2014. Lave, M., J. Kleissl, J. S. Stein. 2013b. A wavelet-based variability model (W\IM) for solar PV power plants. IEEE Transactions on Sustainable Energy, Vol. 4, No. 2. Lew, D., G. Brinkman, A. Ibanez, A. Florita, M. Heaney, B. M. Hodge, M. Hummon, G. Stark, J. King, S. A. Lefton, N. Kumar, D. Agan, G. Jordan, and S. Venkataraman.2013. Westem Wind and Solar Integration Study Phase 2. NREL/TP-5500-55588. Golden, CO: National Renewable Energy Laboratory. http://www.nrel.gov/docs/ff13osti/55588.pdf. Accessed June 2014. ILIVIG and NREL]. Utility Variable-Generation Integration Group and National Renewable Energy Laboratory. No date. Principles forTechnical Review Committee (TRC) involvement in studies of variable generation integration into electric power systems. http://variablegen.org/wp-contenVuploadsl2009l05/TRCPrincipleslune2012.pdf. Accessed June 2014. Page 19 Solar lntegration Study Report ldaho Power Company This page left blank intentionally. ldaho Power Company Solar lntegration Study Report Appendix 1 Solar integration study appendix Table of Contents Introduction Technical Review Committee List of TRC Members Regulatory Commission Staff Observers TRC Schedule and Agenda Public Workshop Schedule and Agenda Data Inputs and Assumptions Natural Gas Price Assumptions Market Power Price Assumptions IPC Customer Load Data Idaho Power Existing Generation Hydroelectric Generation Data Run-of-River Projects Wind Generation Data Aggregate PPA and PURPA Projects Non-Wind PURPA Generation Data Solar Production Data Derivation of Hour-Ahead Solar Production Forecast and Upper/Lower Bounds Page 21 Solar lntegration Study Report ldaho Power Company lrurRooucnoN This appendix contains supporting data and explanatory materials used to develop Idaho Power's 2014 Solar Integration Study. The main document, the 2014 Solar Integration Study, contains a full narrative of Idaho Power's process for studying solar integration costs. For information or questions concerning the study, contact Idaho Power: Idaho Power-Resource Planning l22l W.ldaho St. Boise,Idaho 83702 208-388-2623 Tecn rurcAL Revrew Gorvuu rree The Technical Review Committee (TRC) was formed during surlmer 2013 to provide input, review, and guidance for the study. It is comprised of participants from outside of Idaho Power that have an interest and/or expertise with the integration of intermittent resources onto utility systems. As part of preparing the 2014 Solar Integration Study,Idaho Power held one public meeting and four TRC meetings. Idaho Power values these opportunities to convene, and the TRC members have made significant contributions to this plan. List of TRC Members Brian Johnson...................University of Idaho Jimmy Lindsay.................Portland General Electric (formerly of Renewable Northwest Project) Kurt Myers ....Idaho National Laboratory Paul Woods ......................(formerly of City of Boise) Cameron Yourkowski......Renewable Northwest Project (replacing Jimmy Lindsay) Regulatory Commission Staff Obseruers Brittany Andrus................Public Utility Commission of Oregon (OPUC) staff John Crider ....OPUC Staff Rick Sterling....................Idaho Public Utilities Commission (IPUC) staff ldaho Power Company Solar lntegration Study Report TRC Schedule and Agenda Meeting Dates Agenda Items 2013 Thursday, August 15 lntroductions and role of TRC ldaho Power system overview Formulation of basic study design Establish solar futures Techniques for building solar generation data Closing thoughts and comments 2013 Thursday, September 19 Study design Key study components Hydro-WY 201 1 vs. WY 2012 vs. WY 2013 Solar-WY 2011 vs. WY 2012 vs. WY 2013 Market power prices Natural gas prices Solar penetration levels 2014 Monday, January 6 Review of Study Design Solar Data Availability Wavelet-based Variability Model Analysis Conclusions 2014 Friday, May 16 Review of lntegration Study Design Review of IPUC Filing Development of Reserve Requirement for solar scenarios 2014 Thursday, May 29 Review of Operating Reserves Review of Production Cost Model Public Workshop Schedule and Agenda Meeting Dates Agenda ltems 2014 Thursday, May 1 lntroduction of Technical Review Committee ldaho Power system overview Study objective Study design System modeling Next steps Page 23 Solar lntegration Study Report ldaho Power Company Natural Gas Price Assumptions Table 1 Actual monthly average Nymex price for water year 2012 Average Monthly Price Dara lnpurs AND AssulvtproNs $3.76 $3.52 $3.36 $3.08 $2.68 $2.45 $2.19 $2.04 $2.43 $2.77 $3.01 $2.63 $26.02 $30.81 $30.13 $24.s3 $23.50 $16.30 $8.9e $5.81 $4.50 $12.0s $24.75 $24.47 2011 2012 October November December January February March April May June July August September October November December January February March April May June July August September Market Power Price Assumptions Table 2 Actual average Mid-Columbia dollars/megawatt-hour (MWh) for water year 2012 Average Monthly Price 2011 2012 Page 24 ldaho Power Company Solar lntegration Study Report IPC Customer Load Data Table 3 Actual average megawatt (MW) for waler year 2012 Year Month Average Load 2011 1,403 1,s63 1,729 1,680 1,s97 1,457 1,504 1,742 2,108 2,388 2,197 'l,679 2012 Hydroelectric Facllities and ilamepLte Capadtles I xells ca;rron 391.5 Mw 190.0 MW 585.4MW 12.4 MW 27.2 MW 82.8 MW 75.0 MW 13.5 MW 8.3 Mtr' @ tow€rsalmon 60.0MW E Upp€rsalmm 34.5Mw Elhousandsprings 8.8Mw OREGOI{ E oeartalc 2.5 MW E Sho.hon€Falls 12.5Mw E Twin talh El Milner E American Falls ??:lMw Iord 1,709.0 tt ! ^t{orth \hlmy NEVADA Figure 1 Existing ldaho Power generating resources Therm.l F.cllltlcs And C.p.cttles Coal A Jim B.i4er 770.5 MW' A l{sth lblmy 283.5 MW' A Eoadman _,91!iry,' ror.l _1|1lqj? !ll!v t.rtrrd G8 A B€nnettMountain l72.8Mw A Danstin 270.9MW A Lantleyculch !!8.5MW rot l ,62.2 MW Ole3el Salmon Diesel 5.0 MW tor.l 1,885.4 MW WYOMIITIG October November December January February March April May June July August September ldaho Power Existing Generation E oxlow ! arownlee E c.$ade E Swan talls E c l. str*e E uiss E Lourer Mahd E UppeMalad WASHII{GTON fiEJP s2.9 MW 59.1MW Page 25 Solar lntegration Study Report ldaho Power Company aa E zs.o?., I.l E 2o.o =E.E r's.o =o EE 1o.oato ot s.o. 1951-2013 avcraSc a oo.)l o.o 1949 Figure 2 Brownlee Reservoir inflow by water year 447 4',t8 4'.t5 358 365 380 388 252 337 292 251 208 February March Apill May June July Hydroelectric Generation Data Run-of-River Proiects Table 4 Actual monthly average MW (aMW) for water year 2012 2011 October November December January2012 August September Page 26 ldaho Power Company Solar lntegration Study Report Aggregate PPA and PURPA Projects Table 5 Actual monthly aMW for water year 2013 2011 2012 Non-Wind PURPA Generation Table 6 Actual monthly aMW for water year 2012 Wind Generation Data October November December January February March April May June July August September 95 190 120 194 167 191 172 166 163 144 131 116 Data 2011 2012 October November December January February March April May June July August September 96 52 45 43 43 54 104 135 131 140 130 '111 Page27 Solar lntegration Study Report ldaho Power Company Solar Production Data Disper3ed 100 ilW: Soasonal Aveiage Daily Shapo rm 90 - SmmsAvsage Ju, Jd, AW -SpnngAsAq Mz, AW,W 80 -70o 3* 5 t*iz3+oI{l30 m 10 0 0 - - Amrd AwAe: Oct- S€p "-"". FdlAvsee: S€p, Oct, tlov .-- WirtsAveree: D6, Ja, Feb 00 l:m 2:00 3:00 4:00 5:00 6:00 7:00 8i00 9:00 10:00 '11:00 12:m 13:00 Tlm ol Day ."""t:.;":$511;:.5i5!$5:Xlgl.''.""""".""s Figure 3 Dispersed 100 MW ,"$}:l;'"' Dispersed 100 MW-Productlon Page 28 ldaho Power Company Solar lntegration Study Report l l l 300 2fi 2@ 24 m 9r*I3 raoE 5 160c t ',+o! f,ro .fI,* 80 40 m 0 0 1:00 2:00 3:00 4:00 5:00 6:00 7:00 Oispeced 300 MW: Seasonal Avorags Daily Shapo -SmmsAvsage Jm, Jd, Aug -SpringAvq{6: Mil, Apr, May 8:00 9:m 10:m 11:m 12:@ 13.00 14im 1100 16:00 17:m lAm 19m 20100 21:m 22:@ 2}@ Tlmof Day Dispe.sed 300 iilw-Production 90 80 70 60 50 40 30 20 10 0 Figure 4 Dispersed 300 MW o 3. ""Ii jl.:-1":"":t1"*oo":.:".-}:}',. Page 29 Solar lntegration Study Report ldaho Power Company Oisp€rsed 500 MW: Seasonal Average Daily Shape 500 450 400 _ 350o =*3!$r*oi 2zmtIo- tso 1m - S0msAvsagerJm, Jd, ArB -Spring Avseei Mar, Apr, May - - Am€lAwrage:Oct- Sep FallAvdago: S€p, Ocl, Nov - - V\4rtsAsage D@, Ja, Feb 0r i I 0100 1:00 2:00 3100 4:m 5:00 6:00 7:00 8:00 9:00 10:m 11:m 12:00 13:00 t4:m 15:m ,6:m 17:m 18rm 1900 20:00 2t:00 2,:n 2}n Tlm of Oa!, Disperced 500 Mw-Production l .C.,""" o,9 ,S"ooot'.d'o.doo ,"." .""" C """ "so"sd".s$asdao"""".r"s".rr' -$ -$ -'"o -\s -Sa.C ".c" -".do ".d"" a.dt "f -.S -\s "--1$si""."1.."s F.- Figure 5 Dispersed 500 MW o ==I I 4'l Page 30 f'"."$$"t' ldaho Power Company Solar lntegration Study Report Dispersed 700 MW: Sea$nalAvtrage Daily Shape 7m 650 6m 550 500 o Io*. Eo* $ gsoo ;*!l rrotN 150 1m 50 0 -l - Smms Av6age: J0, Jrl, Aug ] llrl - Sp.irE Avtr4e: Ma, Apr, May Ill - - Amul Avsage: Oct- Sep il i IFallAvsage: Sep, Oct, Nov i I WintsAvtrage:D6, Jil, Feb I l 6:00 7:00 8:00 9:00 10:00 11:00 12:00 1300 14rm 15:00 16:00 17:00 18rm 1gm 2A0o 21.N 22N 23tc[ Tlmof Day "..::1.:..1.:i.51ti..:1.:_...$1I1X91.,""""..,"."..d Figure 6 Dispersed 700 MW -$ -s -*d -..f ""1isi"-'-'t"""c Page 31 Solar lntegration Study Report ldaho Power Company Derivation of Hour-Ahead Solar Production Forecast and Upper/Lower Bounds 95 90 85 80 75 70 9.' Euo .E* E'o Eot0,940 !3soul 30 20 15 10 . AdJl@WOdF -[ Dry h* k., da 'tt tu.@. . brdlhrkil . kor^h.dtu.-tA[ . hr.ci UpFr &und 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 Figure 8 Hour-ahead forecast example The average forecast is shown on Figure 8 as the green series. For each hour of the day, the forecast average is calculated by applying the follow equation: Forecast AugG) : Forecast Obs(MW)(r-r,oo- r_1:15) * Where: I : forecast hour Aug CSI56:oo+ r:55) Av g C S I S g_zilo+r_1:15) C^S/S: Clear Sky lndex Surrogate The Clear Sky Index Surrogate (CSN) is an important measure of the maximum amount of solar generation the system could experience in any given hour. The CSIS is a component of the average solar production forecast and accounts for the seasonal changes that influence solar photovoltaic generation. This value is unique for every hour of the year. The CSIS is calculated using 5-minute, modeled production data from the wavelet-based variability model (WVM). The CSIS is calculated by taking the maximum S-minute observation for a given hour. This maximum value is the absolute maximum for a given hour over a lO-day period. After identifying the absolute maximum from water year 2011, the forecast also identifies the absolute maxima for water years2012 and 2013. With the three absolute maxima identified from the three water years analyzed, the forecast applies the maximum CSIS observed in three years 0 5:00 7l8l2OL2 Page 32 ldaho Power Company Solar lntegration Study Report of data for a given hour. It is noted that the ratio of the CSIS values, described in the above equation, result in the least amount of average production forecast error. Multiple variations of this ratio were tested, and the final version of the ratio was the most accurate. The process detailing the calculation of the CSIS is described in the equations below. CSIS(1; = L4ax ([cslslw**r ear2ort)], [cstslr*- yeu2072)f,lcstsg**r,,,rorr)]) Where: cslslweteryeorzott'1 = uax (fsminobs(MW)u,,,-r],[srinoatl,uw)a>ro-rf,...,[s*inobs(Ml{r)1a,o-,",]) cslSlwatertear*o.2) = uax ([sminobs(MW)u,,r-r],[srin obs(MW)1g1,r-r],...,[srninoat{ruw).r,0-,r]) cslslwttcrvcorzorr) = uot ([sminobs(MW)u,,r-r],[srin lbs(MW)1r1ro-r],..,[srninoat{uw),r,o--,]) Where: f= forecast hour d= forecast day Figure 8 is a good example of how the persistence-based forecast does very well under the majority of solar conditions and how a forecasting model struggles with extreme weather events. Despite the limitations of a persistence forecast, within a short period of time the forecast retumed to accurate predictions. Figure 8 is a select, extremely variable generation profile. The aftemoon observations that fall beneath the lower bound forecast are included in the 2.5 percent of lower forecast error reported in the solar integration study. Generally, the forecast does well capturing the variability in production due to solar. The forecast has the ability to tighten the range between the upper and lower bounds. This ensures the amount of capacity held in reserve is sufficient but not unduly large. Page 33 Solar lntegration Study Report ldaho Power Company This page left blank intentionally.