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 Renewables challenge utility interconnections Apr 29, 2009 - Bill Opalka - EnergyBiz Insider When wind farm developers lined up at a grid                                 operator's or utility's door a few years ago,                                 plans to add a new project didn't cause undue                                 concern. After all, 10 megawatts here, 50                                 megawatts there, weren't going to significantly                                 change the scheduling.  Now that wind projects are measuring in the                                 hundreds of megawatts in recent years, they are                                 not only creating interconnection issues on their                                 own, but are also occupying a more prominent place                                 in the overall resource mix in large or                                 multi-state regions.  And while utilities are still adding smaller                                 projects, they present their own challenges as                                 many are even smaller than the original wind                                 projects, like solar PV installations on a                                 warehouse roof or hundreds of individual homes.  While wind can't be expected to provide                                 on-demand or base-load power, a larger share of                                 generation is being counted on in the states and                                 by an expected federal mandate for renewal energy                                 over the coming decade. However, with many states                                 mandating increased use of renewable energy, wind                                 generation is often given priority when it is                                 available and traditional forms of power sources                                 have to be backed off to accommodate it.  Various scenarios have been created by wind                                 energy advocates and the U.S. Department of Energy                                 under which up to 20 percent of U.S. electric                                 generation could be supplied by wind by 2030, so                                 this is no longer just an academic exercise.  Texas is the national leader in wind nameplate                                 capacity, by far, with more than 7,000 megawatts,                                 with another 52,000 megawatts under review. The                                 grid operator for most of the state, the Electric                                 Reliability Corporation of Texas (ERCOT), manages                                 the flow of electricity from the sparsely                                 populated West Texas wind region to the populated                                 load centers of Dallas and other eastern cities.                                 The state has recently adopted a transmission                                 development plan with a funding mechanism --                                 competitive renewable energy zones -- with a $5                                 billion price tag that will accommodate up to                                 18,000 megawatts of wind when it is completed. A                                 similar plan to create National Renewable Energy                                 Zones was introduced into Congress last year.  Bonneville Power Administration in the Pacific                                 Northwest states also has an exploding growth                                 curve, with 1,600 megawatts of wind currently it                                 its territory, with the potential for 10,000                                 megawatts by 2016, counting projects under                                 development or in the transmission interconnection                                 queue.  Never was the need for plans for integrating                                 large quantities of wind more evident than on Feb.                                 26, 2008, when dying wind caused a sudden drop-off                                 in generation and forced ERCOT to use its plans                                 for interruptible customers to balance the system                                 during the event. The grid operator blamed                                 inaccurate wind forecasts and a fast ramp-up in                                 demand for the shortage.  Confronting Issues  What the event did was expedite work already                                 started by ERCOT to more smoothly integrate large                                 quantities of wind generation, said Dottie Roark,                                 ERCOT's communication manager. "There is a                                 stakeholders' committee with ERCOT reviewing                                 protocol changes that would involve all the                                 participants." These initiatives include                                 developing more forecasting tools with a wind                                 assessment company, improving control room                                 operator awareness through automated tools and                                 developing a risk based management program.  The BPA has different issues to confront, with                                 Oregon and Washington State among the national                                 leaders in wind capacity. While seemingly blessed                                 with copious amounts of hydropower that can                                 supplement wind, nuclear and fossil fuel                                 generation sources when needed, there are                                 limitations. While true, the process isn't always                                 as simple as ramping up hydro assets as soon as                                 wind speeds appear to be declining. "An example is                                 when we need generation it's not just a matter of                                 spilling runoff because there are fish management                                 issues, especially during spawning season," said                                 Eric King, program manager for wind integration at                                 BPA.  Solar power presents its own set of challenges,                                 not only by its smaller scale than most commercial                                 operations, but because of the more gradual                                 appearance and retreat it makes on the power grid.                                 But the challenges solar power presents no less                                 daunting, as many commercial sites may generate                                 one to two megawatts at peak, while home systems                                 are measured in a few kilowatts.  "When you're thinking about a landfill topped                                 with a solar array, that's quite a different                                 scenario from a homeowner's roof," said Ed White,                                 acting head of customer strategy for National Grid                                 in Waltham, Mass., where the state is now                                 expanding eligibility for net metering that allows                                 such users to sell back into the grid. "There's a                                 whole different loading considerations,                                 instrumentation, and there's a different sort of                                 marketing issues."  Dan Zaweski, assistant vice president for                                 energy efficiency and distributed generation at                                 the Long Island Power Authority (LIPA), said the                                 home- and business-based generation systems do not                                 yet create operational challenges for the public                                 utility that serves Long Island, N.Y. There are                                 about 1,600 residential solar systems out of a                                 customer base of about 990,000, and 83 commercial                                 customers out of a base of 1.1 million.  For a utility that operates with megawatts as                                 its crucial unit measure, smaller generating                                 stations present new issues. Its operations                                 strategy is running one to two megawatts on a                                 distribution feeder. "An average homeowner with a                                 solar PV system might generate six kilowatts at                                 peak, so there has to be 333 of them operating                                 before you really see any grid impact."    Business operations are also impacted on Long                                 Island, as elsewhere, when smaller renewable                                 energy systems are added. Utility systems are                                 geared toward the amount of revenue gathered from                                 retail sales, but savings from reduced demand                                 don't create income for the utility. Billing is                                 the most obvious area affected both in terms of                                 the potential impact on the utility's bottom line,                                 but also the upfront costs of meters and any other                                 operational expenses and customer care processes                                 needed to accommodate these energy sources. 
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