1!13r'2015 PJM

- RenewablelniB!J'ation StuiyRepcrls 

# 3{ m

Heme Canmlttees & Groups SubcDnmfttees Intermittent Resa.irces Subcanmlttee Renewm,le lntejl"'lttm Study Reports 

# Renewable Integration Study Reports lntrDcl.tct1

### on The Integration 

### of renewable energyInto the PJM Interconnection system has Increased steadilyIn the past severalyears primarilyasa result of renewable enef'IY goals in most ofthe stateswithin the PJM footprint. At the request ofits stakeholders, PJM commissioned a studyIn May 2011 to understand theImpacts to grid operations If renewable energy

### goals over the next 1 5 years areachieved orexceeded. An Executive Summary [ PDF

## Ifor the studyIs now available on the PJM web site. The studyteam was headed 

### by GE Enef'IY along with AWS Truepower, EnerNex, Exeter Assodates, lntertekAsset Integrity Management and PowerGEM. Theteam used a combination of publicLy available and confidential data to model the Eastern Interconnection, PJM and the generating plants within P.IM. Ten scenarios were chosen, ranging from a business-as-usual referencecasewith wind and solar resources at 201 1 levels, to a scenario with 30-percent of energyowra yearprovided 

### bywind and solarresources. The studyexplored the characteristics of load, wind and solar proffles; regulating and operating reserves; transmission system upgrades; the Impact of renewables on annual PJM operations; sub-hourlyoperations and real-time market; capadtyvalue ofwind and solar; the Impact ofcycling duty on Variable Operation and Maintenance (YOM) costs; powerplantemissions; Industry practices and experience on renewables Integration; and methods to Improve system performance. Conclusions and recommendations were presented, and topics for future study were identified. The studyassumed that the penetration of renewable resources would Increase and Investigated how the PJM system would be affected. The economics of renewable resources and quantifying the capital investment required to install additional wind and solarinfrastructure were beyond the scope 

### of this study and were notInvestigated. SimilarLy, the study did notevaluatedistribution system Impacts, potentiaL voltage and frequencycontrol issues, and costs to maintain resource adequacy (reserves). Key Flndlnp
• The study's main conclusion isthat the PJM system, with adequate transmission eJCpansion**~up** to $13.7 billion) and additional regulation reserves (up to an additfonal1,500 MW), would not haw anysignificant reliabilityissues operatingwith upto 30 percent ofIts energy {as distinct from capacity) provided bywind and solargeneration. PJM has 

### Long held that ISOs and RTOs are betterable to integrate variable energyresources because oftheirorganized mart<ets and regional infrastructure planning processes, butthe studyfound that PJM's large geographic footprint also provides 51!rflflcant benefit for Integrating wind and solar generation because It greatlyreduces the magnitude ofvariability-related challenges. • Every scenario examined resulted fn lower PJM fuel and YOM costs aswell as Lower average Locational Marginal Pr1ces. The lower 

### LMPs, whencombined with the reduced capadtyfactors, resulted In lower 

### gross and net revenues for the conventional generation resources. • The renewable generation increased the amount 

### of cycling (start up, shut down and ramping) on the existing fleet ofgenerators, which will result fn Increased YOM costs on these units. However, these Increased costs were small relativeto thevalue of thefuel displacement. Recommendations I Suaesttons for FurtherStudy The study makes a few recommendations:
• Determining Reserve Requirements- Itfs recommended that PJM develop a method to determine reserve requirements based on

forecasted levels 

### ofwind and solarproduction. • Intra-Day Unit Commitment · It is recommended that PJM consider intra-clay unit commitment using such a mid-range forecast in real-time operations to update the commitmentofIntermediate units (such as combined cycle units that could start In a few hours). • Improving Resource Aexlblllty

- It Is recommended that PJM explore the reasons for rampln!l constraints on spedffc units, determine

whetherthe limitation aretechnical, contractual, orotherwise, and investigate possible methods for improving resource flexibility. The studyalso suggested a few topics for further study: hllp:Jiwww.pjm**.com/commltlae&-ant-~lbcommllilleallrslprls.aspc:** 

### 1128131'2015 PJM

- Renewable lnlegralion study Reports • Impacts of Reduced Energy Revenues for Conventional Power Plants- The study results show that as renewable penetration increases,

energy market revenues for conventional generation resources will decline significantly. To remain economicallyviable, these plants would either need to receive a larger share of their revenues from a capadty market or perhaps increase energy prices to help cover fixed costs. It is suggested that PJM investigate the potential consequences of reduced energy market revenues on its conventional generation fleet. • Flexibility Improvement for Conventional Power Plants- It is suggested that PJM investigate possible methods for increasing the

flexibility of power plants with limited ramping or cycling capabilities that have been traditionally operated as baseload units. • Active Power Controls on Wind and Solar Plants

- Another potential source of system flexibility is from wind and solar plants. In the

past decade, manufacturers have made significant advancements in control methods that can make plant power output responsive to grid-level controls, including frequency response and down-regulation. It would be prudent for PJM to investigate how wind and solar plants could contribute to frequency response and worktowards interconnection requirements that ensure PJM will continue to meet its grid-level performance targets. The recommendations and suggestions for future studywill be presented to PJM stakeholders for their review and consideration. Reports PRIS PJM Cover Letter (PDF 

### I PRIS Executive Summary 

### IPDF 

### I PRIS Introduction 

### I PDF 

### I PRIS Final Project Review (PDF ! PRIS Task 1 Presentation 

### I PDF 

### I PRISTask 1 Wind and Solar Power Profiles

- Final Report 

### IPDF 

### I PRIS Task 

### 2 Presentation 

### I PDF 

### I PRISTask 

### 2 Scenario Development

- Final Report 

### IPDF 

### I PRIS Task 3B Best Practices from Other Markets - Final Report 

### IPDF 

### I PRIS Task 3A Part A - Modeling and Scenarios 

### I PDF 

### I PRIS Task 3A Part B - Statistical Analysis and Reserves 1 PDF 

### I PRIS Task 3A Part 

### C- Transmission Analysis 

### IPDF 

### I PRIS Task 3A Part D - Production Cost Analysis 

### IPDF 

### I PRIS Task 3A Part E - Sub-Hourly Analysis ( PDF 

### I PRIS Task 3A Part F - CapadtyValuation 

### IPDF 1 PRIS Task 3A Part G - Plant Cycling and Emissions 

### IPDF 

### I PRIS Tasks 3B & 

### 4

- Market Analysis and Mitigation 

### IPDF 

### I

tt.tp"llwww**.pjm.corn/committees-and-~ra¢sltx:anmitteeslirs!Jris.aspx:** Date 

### 2.28.2014 2.28.2014 2.28.2014 2.28.2014 2.17.2012 2.17.2012 2.17.2012 2.17.2012 11.28.2012 3.31.2014 3.31.2014 3.31.2014 3.31.2014 3.31.2014 3.31.2014 3.31.2014 3.31.2014

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