By - Jon Brown

Dumping Energy: Renewable Energy, Cost-Effective Curtailment and Remediating Negative Pricing Conditions
July 11-12, 2018 | Minneapolis, MN

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Overview

The “surplus” generation of renewable energy resources — wind, solar and in some cases, hydro — that exceeds the ability of the power system to deploy the energy available, is increasingly resulting in incidences of curtailment.  These episodes of “turning off the spigot” can be the source of great consternation among project developers, utilities and renewable resource advocates. 

Rejection of available renewable energy is counterintuitive.  In the face of vigorous de-carbonization efforts, expanding renewable portfolio mandates, tax and other incentives to stimulate greater renewable energy production, why would “free, clean and green” fuel-sourced power be dismissed at certain times?  This seeming contradiction is present where renewable and distributed energy resources proliferate in a few areas of North America today; tomorrow, it is likely to be widespread.

The problem remains that when more renewable energy is available than can be absorbed by the system, grid stability suffers and real-time market performance erodes.  These system conflicts can be reduced through other measures, such as transmission capacity expansion, market enlargement, storage, and flexibility improvements in baseload generation resources. At present, though, these options are either jurisdictionally, technically or economically infeasible.  That leaves curtailment as one of the few, remaining, plausible methods for shedding this orphan power.

This program will examine the power system issues associated with renewable energy over-production relative to load and system capacity.  It will review what tools are available to minimize these impacts, devoting particular attention to curtailment.  The symposium will also consider ways that curtailment is being addressed today, how market and bilateral transactions are adapting compensation to accommodate curtailment, case studies of active network management of curtailment in the U.S. and Europe, and how renewable energy goals are achievable if curtailment is deployed.

Learning Outcomes

  • Discuss challenges associated with “surplus” renewable energy on the grid
  • Review economic and financial impacts of variable renewable energy on wholesale power markets
  • Evaluate options to address “surplus” renewable energy output
  • Examine optimization of economic outcomes through curtailment
  • Assess examples of active network management of renewable energy generation
  • Analyze whether overbuilding capacity and curtailing excess production can still result in renewable energy goals attainment
  • Discuss adapting market compensation to accommodate curtailment
  • Identify negative pricing patterns in wholesale energy markets
  • Discuss case studies of market participants favored and dis-favored by negative pricing
  • Assess project developer perspectives of negative pricing and possible remedies

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.5 CEUs for this conference and 0.4 CEUs for the workshop.

Requirements For Successful Completion Of Program

Participants must sign in/out each day and be in attendance for the entirety of the conference to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations and case studies will be used in program.

 

Agenda

Wednesday, July 11, 2018

8:30 – 9:00 a.m. :: Registration and Continental Breakfast

9:00 – 9:15 a.m. :: Program Overview


9:15 – 10:30 a.m. :: Challenges Associated with Too Much of a Good Thing — “Surplus” Power

  • Impacts on power system
    • Grid stability issues
    • Reduced Power quality
    • Negative pricing
    • Disruptive effect on existing thermal fleet
    • Disincentive for additional renewable energy development

Erik Ela, Principal Technical Leader, Electric Power Research Institute (EPRI)

10:30 – 10:45 a.m. :: Morning Break


10:45 a.m. – 12:00 p.m. :: Impacts of Variable Renewable Energy on Wholesale Power Markets

  • Observed historical impacts of wind and solar on annual average wholesale prices
  • Impacts of other trends on wholesale prices, including natural gas prices and customer load
  • Past and recent impacts of wind and solar on temporal and geographic pricing patterns
  • Growth in negative wholesale prices, and trends in wind and solar curtailment
  • Modeled effects of increased wind and solar penetration on average wholesale prices
  • Consequences of increased wind and solar penetration on temporal patterns of prices
  • Implications for profitability of wind and solar as well as conventional thermal assets

Dr. Ryan Wiser, Senior Scientist and Group Leader – Electricity Markets and Policy Group, Lawrence Berkeley National Laboratory (LBNL)

12:00 – 1:00 p.m. :: Group Luncheon


1:00 – 2:00 p.m. :: Evaluating Options to Address “Surplus” Renewable Energy Output

  • Transmission capacity expansion
  • Market enlargement
  • Storage
  • Demand response
  • Time of use rates
  • Flexibility improvements in baseload generation resources
  • Curtailment

Paul Denholm, Principal Energy Analyst, National Renewable Energy Laboratory (NREL)


2:00 – 3:00 p.m. :: Focus: Optimizing Economic Outcomes through Curtailment

  • Identifying the lowest-cost generation solution
  • Why curtailment is the [least worst/best] path to take under present conditions
  • Will there be a “tipping point” for (an)other path(s) to supersede curtailment?
    • Relevant strike economics of alternative remedies

Morgan Putnam, Director, Clean Power Research

John Sterling, Director – Market & Policy Affairs, First Solar

3:00 – 3:15 p.m. :: Afternoon Break


3:15 – 4:15 p.m. :: Opportunities and Challenges with Utilizing Curtailment on the Distribution Grid

  • Overview of the technical issues that one can solve with curtailment
    • Discussion of hosting capacity and technical screens
  • There are regulatory and market issues with utilizing curtailment to its full potential
    • Implications of the utility’s “requirement to serve” and possible modifications to address curtailment of distributed generation
    • Administrative vs. market-based settlement mechanisms

 Jeff Roark, Technical Executive – Power Delivery & Utilization, Electric Power Research Institute (EPRI)


4:15 – 5:30 p.m. :: Active Network Management of Renewable Energy Generation

Rapid development of wind energy in Scotland over the past decade led to exhaustion of the available static capacity of the distribution systems to which these projects were connecting. Once capacity in good wind resources was used up, the traditional route would have led to reinforcement of the system. However, through the development of innovation in the form of real-time monitoring and controls – including curtailment and reactive power management – and associated connection agreements to manage this new approach to integrating renewables to the system, the UK was able to greatly increase the amount of generation connected to the same system.  The presentation will provide extensive background on the methods used in the UK and will tie this to current initiatives underway in Minnesota state to address their own challenges to meet the state’s renewable energy targets.

Chad Abbey, Global Head – Consultancy, Smarter Grid Solutions (SGS)

5:30 p.m. :: Program Adjourns for Day


Thursday, July 12, 2018

7:30 – 8:00 a.m. :: Continental Breakfast


8:00 – 9:15 a.m. :: Panel on Curtailment and Interconnection

The link between curtailment and accommodating increased renewable energy generation on the power grid is both non-intuitive and highly polarized. Beyond overcoming the stigma often associated with curtailment, it also entails a number of complex technical and commercial consequences, not to mention an entirely different approach to operation of the distribution system. Drawing on expertise across the concerned stakeholders and different jurisdictions tackling with these issues, the expert panel will address many of the hurdles and competing technologies that challenge the adoption of curtailment and related smart grid controls for integration of renewable energy.

Moderator

Chad Abbey, Global Head of Consultancy, Smarter Grid Solutions (SGS)

Panelists

Brian Conroy, Director – Network Projects & Initiatives, Avangrid

Lise Trudeau, Energy Analyst, MN Dept of Commerce


9:15 – 10:30 a.m. :: Achieve Renewable Energy Goals by Overbuilding Capacity and Curtailing Excess Production

  • The key challenge to >70% renewables — addressing sustained periods of low production
  • How curtailment addresses periods of low renewables production
  • Why load shifting can’t provide the same benefits
  • Trading off curtailment against production from stranded coal and gas assets

Morgan Putnam, Director, Clean Power Research

10:30 – 10:45 a.m. :: Morning Break


10:45 a.m. – 12:00 p.m. :: Adapting Compensation to Accommodate Curtailment

  • Ways that curtailment is being addressed today
    • US market overview
    • Germany
  • New ways to compensate asset owners that provide them with long-term stability
  • What does it cost to consume electricity that would have otherwise been curtailed?
  • Pricing in capacity markets
    • Negative power pricing and other market effects
    • Impact on different market players

 Congcong Wang, Market Design Engineer, Midcontinent ISO (MISO)

Guillermo Bautista Alderete, Director of Market Analysis & Forecasting – Market Quality & Renewable Integration, California ISO (CAISO)

12:00 – 1:15 p.m. :: Group Luncheon


1:15 – 2:15 p.m. :: The Other Side of the Curtailment “Coin”: Negative Pricing Patterns in Wholesale Energy Markets

Negative price conditions are more pervasive and persistent as rapidly falling energy prices for wind and solar resources compete against higher cost energy resources in the wholesale markets.  Merchant generators, utilities, system operators, and project developers each have their distinct challenges with this phenomenon and how best to adapt to the unprecedented new market dynamics this creates.  This segment will review the negative pricing conditions in wholesale power markets where high renewable energy penetration currently exists or where such consequences are likely to emerge in the future:

  • CAISO
  • ERCOT
  • MISO

Joseph Cavicchi, Executive Vice President, Compass Lexecon


2:15 – 3:30 p.m. :: Market Participant Outcomes Favored and Dis-favored by Negative Pricing and General Price Suppression

Favored

  • Solar in Calif EIM
  • Hydro in CAISO

Dis-favored

  • Solar in CAISO
  • Wind in MISO
  • Gas in ERCOT

Developing arbitrage opportunities

Enhanced scarcity pricing

Ping Wang, Senior Manager – RTO Analysis, The Energy Authority

2:45 – 3:00 p.m. :: Afternoon Break


3:00 – 4:30 p.m. :: Market Participant and Developer Perspectives of Negative Pricing and Possible Remedies

  • Valuing the impact on new renewable energy production
  • Valuing the impact on acquired renewable energy production
  • Valuing the impact on thermal/baseload energy production
  • Valuing the impact of storage

John Sterling, Director – Market & Policy Affairs, First Solar

Brian Conroy, Director – Network Projects & Initiatives, Avangrid

4:30 p.m. :: Program Adjournment

 

Speakers

Chad Abbey, Global Head of Consultancy, Smarter Grid Solutions (SGS), Smarter Grid Solutions

Guillermo Bautista Alderete, Director of Market Analysis & Forecasting – Market Quality & Renewable Integration, California ISO (CAISO)

Joseph Cavicchi, Executive Vice President, Compass Lexecon

Brian Conroy, Director – Network Projects & Initiatives, Avangrid

Paul Denholm, Principal Energy Analyst, National Renewable Energy Laboratory (NREL)

 Erik Ela, Principal Technical Leader, Electric Power Research Institute (EPRI)

Morgan Putnam, Director, Clean Power Research

Jeff Roark, Technical Executive – Power Delivery & Utilization, Electric Power Research Institute (EPRI)

John Sterling, Director – Market & Policy Affairs, First Solar

Lise Trudeau, Energy Analyst, MN Dept of Commerce

Congcong Wang, Market Design Engineer, Midcontinent ISO (MISO)

Ping Wang, Senior Manager – RTO Analysis, The Energy Authority

Dr. Ryan Wiser, Senior Scientist and Group Leader – Electricity Markets and Policy Group, Lawrence Berkeley National Laboratory (LBNL)

Location

Marriott Minneapolis City Center
30 South 7th Street
Minneapolis, MN 55402

To reserve your room, please call 1-612-349-4000
Please indicate that you are with the EUCI group to receive the group rate.

Click here to book online

Room Rate:

The room rate is $204.00 single or double plus applicable taxes.

Room Block Dates:

A room block has been reserved for the nights of July 10 – 12, 2018.

Rate Available Until:

Make your reservations prior to June 26, 2018. There are a limited number of rooms available at the conference rate. Please make your reservations early.

Register

EventStandard RateAttendees
Proceedings packageUS $ 395.00

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