1!13r'2015 PJM - RenewablelniB!J'ation Stuiy Repcrls 

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

Renewable Integration Study Reports 

lntrDcl.t ct1 on 

The Integration of renewable energy Into the PJM Interconnection system has Increased steadily In the past several years primarily as a 

result of renewable enef'IY goals in most of the states within the PJM footprint. At the request of its stakeholders, PJM commissioned a 

study In May 2011 to understand the Impacts to grid operations If renewable energy goals over the next 1 5 years are achieved or exceeded. 

An Executive Summary [ PDF I for the study Is now available on the PJM web site. 

The study team was headed by GE Enef'IY along with AWS Truepower, EnerNex, Exeter Assodates, lntertek Asset Integrity Management and 

PowerGEM. The team 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 reference case with wind and solar resources at 

201 1 levels, to a scenario with 30-percent of energy owr a year provided by wind and solar resources. 

The study explored the characteristics of load, wind and solar proffles; regulating and operating reserves; transmission system upgrades; the 

Impact of renewables on annual PJM operations; sub-hourly operations and real-time market; capadty value of wind and solar; the Impact 

of cycling duty on Variable Operation and Maintenance (YOM) costs; power plant emissions; 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 study assumed 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 solar infrastructure were 

beyond the scope of this study and were not Investigated. SimilarLy, the study did not evaluate distribution system Impacts, potentiaL 

voltage and frequency control issues, and costs to maintain resource adequacy (reserves). 

Key Flndlnp 

• The study's main conclusion is that 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 any significant reliability issues operating with up to 30 percent 

of Its energy {as distinct from capacity) provided by wind and solar generation. PJM has Long held that ISOs and RTOs are better able 

to integrate variable energy resources because of their organized mart<ets and regional infrastructure planning processes, but the 

study found that PJM's large geographic footprint also provides 51!rflflcant benefit for Integrating wind and solar generation because 

It greatly reduces the magnitude of variability-related challenges. 

• Every scenario examined resulted fn lower PJM fuel and YOM costs as well as Lower average Locational Marginal Pr1ces. The lower 

LMPs, when combined with the reduced capadty factors, 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 of generators, 

which will result fn Increased YOM costs on these units. However, these Increased costs were small relative to the value of the fuel 

displacement. 

Recommendations I Suaesttons for Further Study 

The study makes a few recommendations: 

• Determining Reserve Requirements- It fs recommended that PJM develop a method to determine reserve requirements based on 

forecasted levels of wind and solar production. 

• 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 commitment of Intermediate 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 

whether the limitation are technical, contractual, or otherwise, and investigate possible methods for improving resource flexibility. 

The study also suggested a few topics for further study: 

hllp:Jiwww.pjm .com/commltlae&-ant-~lbcommllilleallrslprls.aspc: 112 
8131'2015 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 economically viable, 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 work towards interconnection requirements that ensure PJM will continue to meet 

its grid-level performance targets. 

The recommendations and suggestions for future study will be presented to PJM stakeholders for their review and consideration. 

Reports 

PRIS PJM Cover Letter (PDF I 

PRIS Executive Summary I PDF I 

PRIS Introduction I PDF I 

PRIS Final Project Review (PDF ! 

PRIS Task 1 Presentation I PDF I 

PRI S Task 1 Wind and Solar Power Profiles - Final Report I PDF I 

PRIS Task 2 Presentation I PDF I 

PRI S Task 2 Scenario Development - Final Report I PDF I 

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

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

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

PRIS Task 3A Part F - Capadty Valuation I PDF 1 

PRIS Task 3A Part G - Plant Cycling and Emissions I PDF I 

PRIS Tasks 3B & 4 - Market Analysis and Mitigation I PDF 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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