Sixth Northwest Conservation

1
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

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).