The Smart Grid: An Estimation of the Energy and CO2 Benefits

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Mechanism I: Wind Energy Integration I.1 Introduction This section discusses the role of a smart grid in helping to mitigate challenges for integrating wind energy into the electric system. The contribution of electricity generated by wind turbines is increasing due to a combination of the improved economic competitiveness of wind power, state and federal tax credits, state renewable energy portfolio requirements, and consumer desire to purchase “green” electricity. However, the integration of wind energy poses challenges due to the unpredictability and steep ramp rates of wind resources, which must be compensated by the use of more traditional power plants (termed load following or regulation) that increase costs because of redundancy and maintenance to correct increased wear and tear. Smart grid technologies, primarily communication and control over demand response and distributed generation and storage resources, can help replace fossil fuel capacity used to overcome the unpredictability and ramping issues, and thereby increase the level of wind generation into the electric system. I.2 Review Wind resources are characterized as being intermittent and having fast ramp rates (up and down), both of which increase the need for ancillary services such as regulation, load following, and reserves. The need for these services will increase in order to integrate increasing amounts of wind power penetrating the system. An illustration of the intermittency and ramping problem is illustrated by an event in February 2008, in Texas, in which the Electric Reliability Council of Texas (ERCOT) had to curtail power to interruptible customers when the grid frequency dropped rapidly because wind production suddenly fell 1700 megawatts. The varying time scale for each of the three ancillary services is shown in Figure I.1. Regulation services must be performed all the time and require a fast communication link from the system operator to receive instruction to vary the generation set point on a second-by-second basis. Load following usually is required during significant load changes (ramp-up in the morning and ramp-down in the evening). This service requires changes in generation over several minutes to a few hours. Several organized power markets allow load customers to participate in selected ancillary services markets. For example, the PJM Interconnection in the United States offers participation in the competitive ancillary services markets (PJM 2009). Scheduling involves forecasting/anticipating loads in the next hour to days and assigning generation and transmission resources to meet these loads. I.1

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