Energy System Resilience
36th Annual Seminar on Fuels, Power Markets and Resource Planning
Katie Jereza, Deputy Assistant Secretary
November 9, 2017
17cv01906 Sierra Club v. EPA
ED_001523_00006049-00001
17cv01906 Sierra Club v. EPA
ED_001523_00006049-00002
The memo asked staff to examine:
The evolution of wholesale electricity markets
Compensation for resilience in wholesale energy and capacity markets
Premature baseload power plant retirements
17cv01906 Sierra Club v. EPA
., u
WT i r
ENERGY
ED_001523_00006049-00003
Figure 1.2. Schematic of Typical Daily Load Curve Showing Base Load13
Load (MW) 50,000 .
40,000 .
30,000
20,001
0;00l
0 1 am
5 am
9-am:
"1 pm
i wy (f/wr)
5 pm
pr'i.itinj Rc'-e-ves P ak ; oal
Iriiomeriiate k> L " B.i >i< i oal
Baseload power plants:
9pm-
Source: FERC report
- High, sustained output levels
- High capacity factors
- Limited cycling or ramping
' 0 h* ' * M 5 p
{ JU / . q
-------------------------------------------------------------------------- ENERGY r
17cv01906 Sierra Club v. EPA
ED_001523_00006049-00004
Premature retirement: subjective term
Power plant engineers FO/ISO/reliability organization " >licy maker or legislator Mayor or employee Merchant competitor Vertically integrated utility executive Nuclear or hydroelectric plant owners and
regulators "ectricity economists
HenrWy ilivery 5------------------------------------------------------------------------------------------------------------------------------------------------------- ENERGi & Fwrqy RehubP.h
17cv01906 Sierra Club v. EPA
ED_001523_00006049-00005
Retirements: Key drivers
1. Advantaged economics of natural gas-fired generation
2. Low growth in electricity hmand 3. Investments in environmental regulations 4. Dispatch of VRE
17cv01906 Sierra Club v. EPA
HenrWy ! livery ENERGY & Fwrqy RehubP.h
ED_001523_00006049-00006
|||||||li^^
, - Exhibits Attribute - ramany txhiurts AtHttra4Mu>HS y Dws Hot Exhibit Attribute
Ffe^-mr R^n'.p .llHtM S
WUy Control
I Resource Type
3^:;
fliel B!W
. H^dis
iO1-"
Natwa! Gas - Combustion Tuibiiw Oli -SUam Coal - Steam
III
"
:o ill lll^ i ijll
e
C J
tetwal Gas - Steam
o
Oil/ Diesel - Combustion Turbme
O-
O'
gRy. ;
Kadeai
o
Battery/Storage
) illy
-
' Solar
Wind
*
: IJ
III -
Oi
KgKtKt^ " -
"1
.1..js;..
- -
o
-
: - |
&
11 i ?<,SS 1 \9r i JJF
i||
'
-
17cv01906 Sierra Club v. EPA
PJM: determine how different resources can provide ERS
More work is needed to fully define, value, procure, and compensate ERS
EtiEBmi- omcr- ol Hennrdy iw ENERGY & Fr,nrqy Hehub^fv
ED_001523_00006049-00007
Reliability vs. Resilience
2002
2009
2016
Capacity
w 2 2
Generation
2 0 1' .2 .
1 3'.
-----Coal
Ij'.U.jI bJl ' J ,
W-'di Out, 'n.;
!'<dtC-JL 'Ll/
'UoJ L.i. iS ' >
'ui-leo!
Hydro
-.Vr.d
'Jl>
Sola'
O'J'tr
PJM simulation: subjected to a polar vortex event, only 34 were also resilient
17cv01906 Sierra Club v. EPA
EMEBmi- crhir-ol bfecirrrMty ! livery ENERGY & Fwrqy RehubP.h
ED_001523_00006049-00008
- '> > k SlBfii
JO--
laea
o
: h
; .-
siaig
Wholesale-retail disconnect
Limited work 3ne to-date on
the affordability of the BPS as a system or portfolio
at
-anti
10
3fiW
:iow
17cv01906 Sierra Club v. EPA
EMEBm# O:r-o1 HenhrJ !hv. ENERGY & Fr,nrqy HekiiM
ED_001523_00006049-00009
Department of Energy
Support industry efforts and focus R&D to enhance system resilience (for example, OE awards)
Accelerate and reduce costs for re/licensing and permitting Facilitate programs for workforce development Prioritize energy dominance and EO 13783 Increase coordination of electric and natural gas industries
Federal Energy Regulatory Commission (FERC)
Expedite efforts to reform energy price formation
Value new/existing essential reliability services
Environmental Protection Agency (EPA)
Allow coal-fired power plants to improve efficiency and reliability without triggering new regulatory approvals and associated costs
Nuclear Regulatory Commission (NRC)
Revisit nuclear safety rules
Ensure safety without unnecessarily adding costs
17cv01906 Sierra Club v. EPA
., u
WT i r
ENERGY
ED_001523_00006049-00010
Study mechanisms to enable equitable, value- based remuneration for desired grid attributes
Evaluate ongoing capacity market reforms
Develop policy metrics and tools for evaluating system-wide provision of these attributes
Examine ways to improve power generator fuel delivery data collection
17cv01906 Sierra Club v. EPA
Estimate systemwide costs of different generation mixes and sensitivities to fuel price fluctuations
Update analysis of subsidies and support for electricity production
Explore potential to utilize existing authorities to ensure system reliability and resilience
Explore costs and benefits of states applying cost-ofservice regulation to at-risk plants
--------------------- ENERGY
ED_001523_00006049-00011
17cv01906 Sierra Club v. EPA
ED_O01523_00006049-00012