Integration of Variable Generation, Cost-Causation, and Integration Costs

Electricity Journal

Volumn 24, Issue 9, 2011, Pages 51-63

  Milligan, Michael ^a   Ela, Erik ^a   Hodge, Bri Mathias ^a   Kirby, Brendan ^a   Lew, Debra ^a   Clark, Charlton ^a   DeCesaro, Jennifer ^a   Lynn, Kevin ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 81155137736     PISSN: 10406190     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.tej.2011.10.011     Document Type: Article

References (14)

1. M. Milligan and B. Kirby, Calculating Wind Integration Costs: Separating Wind Energy Value from Integration Cost Impacts, NREL Report No. TP-550-46275, July 2009.
2. B. Kirby and M. Milligan, Capacity Requirements to Support Inter-Balancing Area Wind Delivery, NREL Report No. TP-550-46274, July 2009.
3. Hydro generators, reciprocating engine driven generators, and some fast-start combustion turbines do not require significant preparation time before they can start operating.
4. We do not mean to trivialize the difficulty of performing this analysis. As will be discussed below, significant data is required and significant care must be taken to perform the analysis correctly. There are many common errors that some analysts continue to make.
5. E. Hirst and B. Kirby, Ancillary- Service Details: Regulation, Load Following, and Generator Response, ORNL/CON-433, Oak Ridge National Laboratory, Oak Ridge, TN, Sept. 1996.
6. E. Hirst and B. Kirby, Allocating Costs of Ancillary Services: Contingency Reserves and Regulation, ORNL/TM 2003/152, Oak Ridge National Laboratory, Oak Ridge TN, June 2003.
7. B. Kirby, Ancillary Services: Technical and Commercial Insights, WärtsiläNorth America Inc., June 2007, at www.consultkirby.com.
8. The classic example is a sheep. A farmer raises a sheep. She sells mutton, hide, and wool. These are joint products. She incurs various costs for raising the sheep, the joint costs of production. The electric system produces joint products: reliability, energy, capacity, convenient system access, ancillary services. The costs for producing these joint products must be allocated to the joint products. The most common allocation principle is relative use, the more you use, the more you pay.
9. See B. Kirby, M. Milligan and Y. Wan, Cost-Causation-Based Tariffs for Wind Ancillary Service Impacts: Preprint, NREL Report No. CP-500-40073, 2006, at http://www.nrel.gov/docs/fy06osti/40073.pdf.
10. E. Hirst and B. Kirby, Electric- Power Ancillary Services, ORNL/CON-426, Oak Ridge National Laboratory, Oak Ridge, TN, Feb. 1996.
11. See Y.H. Wan, Wind Power Plant Behaviors: Analyses of Long-Term Wind Power Data, NREL Report No. TP-500-36551, 2004
12. Y.H. Wan, Primer on Wind Power for Utility Applications, NREL Report No. TP-500-36230, 2005.
13. See B.-M. Hodge and M. Milligan, Wind Power Forecasting Errors over Multiple Timescales, NREL Report No. CP-5500-50614, 2011.
14. M. Milligan, B. Kirby, and S. Beuning, Combining Balancing Areas' Variability: Impacts on Wind Integration in the Western Interconnection, at http://www.nrel.gov/docs/fy10osti/48249.pdf.