Spring 2018 IESO Operations Outreach "Integration" - June 2018

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Spring 2018 IESO Operations Outreach "Integration" - June 2018
Spring 2018 IESO Operations Outreach
            “Integration”

 June 2018
Spring 2018 IESO Operations Outreach "Integration" - June 2018
Agenda
Time      Agenda Item                              Responsible Party   Expected Actions
8:45am    Coffee
9:15am    Opening/Welcome Remarks                  Dave Devereaux      Information
9:20am    Operations Update                        Pedro Rebellon      Information and
          •    Review of Winter Operations                             Discussion
          •    Ice Storm Preparation
          •    Summer Outlook

09:50am   Break
10:00am   Quarterly Outage Assessments             Joseph Ricasio      Information and
                                                                       Discussion

10:25am   Market Update                            Jessica Tang        Information and
          •    Review of Price Spikes                                  Discussion
          •    30 Minute Reserve for Flexibility

10:40am   Break
10:55am   New Technology                           Diljeet Singh       Information and
                                                                       Discussion

11:10am   Integrating New Facilities / Equipment   Samuel Jager        Information and
                                                   Bryan Hartwell      Discussion

11:40am   Closing Remarks                          Dave Devereaux      Information

                                                                                          2
Spring 2018 IESO Operations Outreach "Integration" - June 2018
Spring 2018 IESO Operations Outreach
Operations Integration Update

Pedro Rebellon
Engineering Manager Operations Planning

June 20, 2018
Spring 2018 IESO Operations Outreach "Integration" - June 2018
Presentation Outline

• Winter 2017-2018 Review
    – Winter colder than usual, increased reliance on gas resources;
• April 2018 Ice Storm Review
    – Forecast, anticipated impact, integration to secure power system
    – Preparations showed value – limited impact on load/generation
• 2018 Summer Outlook
    – Reliability Outlook remains positive for Summer 2018

 Positive outlook is the result of the consistent effort and contribution
  by all stakeholders – thank you!

                                                                         4
Spring 2018 IESO Operations Outreach "Integration" - June 2018
Winter 2017-2018 Review

                          5
Spring 2018 IESO Operations Outreach "Integration" - June 2018
Energy Adequacy Assessment Winter 2017-18
Source: 18-month Outlook, October 2017-March 2019

  Winter 2017-18 forecast showed sufficient energy supply for the firm scenario
  Integration of gas units ensured availability and operability

                                                                             6
Spring 2018 IESO Operations Outreach "Integration" - June 2018
Generator Output by Fuel – Monthly Report
Source: IESO Web Site Public Reports

   Winter 2017-18 colder than usual; integration of higher
    demand and more reliance on gas-fired resources           7
Spring 2018 IESO Operations Outreach "Integration" - June 2018
April 13-16 2018 Ice Storm Review

                                    8
Spring 2018 IESO Operations Outreach "Integration" - June 2018
Ice Effects on Power System Equipment
•   Ice build-up on insulators increases risk of
    outages due to flashover, exacerbated by
    high contamination levels;
•   Ice accumulation on overhead conductors
    may lead to catastrophic failure of poles,
    line towers and structures;
•   Possible consequences:
      – Pole damage, permanent faults;
      – Flashover/trip of multiple circuits,
         entire switchyards and stations;
      – Widespread load/generation loss

                                                    Ice may impact multiple
                                                     elements and facilities, well
                                                     beyond power system
                                                     design criteria

                                                                               9
Spring 2018 IESO Operations Outreach "Integration" - June 2018
April 2018 Ice Storm Forecast and Outcome
Weather Forecast Fri 13 - Mon 16          Weather summary for Ontario and the national capital
April 2018:                               region issued by Environment Canada at 4:57 p.m. EDT
                                          Monday 16 April 2018:
Strong winds, heavy rain, ice pellets,    A major winter storm struck Southern Ontario over the
up to 30 mm freezing rain; storm moving   weekend seriously affecting travel and causing numerous
from Southwest to Eastern Ontario;        power outages due to falling trees and wires. Here is a
                                          summary of the weather that the storm has produced in
                                          some places. Total precipitation amounts are from early
                                          Saturday morning until 2 pm this afternoon.
                                          •    Toronto: 18 hours of ice pellets, 6 hours of freezing
                                               rain, packed ice pellet depth 7 to 12 cm. Winds
                                               gusted as high as 96 km/h
                                          •    Ottawa: 9 hours freezing rain Sunday and 6 hours
                                               freezing rain today; winds gusts of 60 to 70 km/h
                                          •    Hamilton: 11 hours of ice pellets Saturday, 6 hours
                                               of ice pellets mixed with freezing rain Sunday, then
                                               8 hours of freezing rain. Winds gusts to 87 km/h
                                               Sunday afternoon. Maximum packed ice pellet depth
                                               15 cm.
                                          •    London: 14 hours of freezing rain mixed with ice
                                               pellets;
                                          •    Windsor: 6 hours of freezing rain

                                                                                             10
Integration to Secure Power System
               Storm Preparation Actions                             Stakeholders
Cancelled outages planned for the weekend                  Generators, transmitters, loads
Recalled ongoing outages of major transmission circuits    Transmitters
Committed additional generation resources and staffing     Generators
Confirmed gas supply availability, return units on outage Gas transmitters, generators
Coordinated assistance with neighboring jurisdictions      Reliability Coordinators
Verified insulator contamination levels at various stations Transmitters
Improved safe posture limits to preserve energy in
                                                            Generators, transmitters
Northeast and Northwest regions of Ontario
Increased operability posture (FETT interface)             Generators, transmitters
Informed Crisis Management Support Team (CMST)             CMST

                             Storm preparations proved valuable, storm impact on
                              load and generation was limited and contained

                                                                                       11
Impact of April 2018 Ontario Ice Storm
                               More than twenty 115 & 230 kV circuit trips, mostly
                                caused by high winds and galloping conductors
                                earlier in the storm; several structures damaged;
                               After the ice storm was over, heavy rain caused a
                                roof leak at a major transformer station, leading to
                                more trips of transmission circuits;
                               Near 400 MW total cumulative load loss

                                   Significant impact
                                    on wind turbines
                                    due to blade icing,
                                    causing unplanned
                                    power derates and
                                    shutdowns

 Ice accumulation on towers and conductors less than forecasted;
  some evidence ice buildup varied depending on elevation                       12
Summer 2018 Outlook

                      13
Summer 2018 Weather Forecast

                             Summer weather
                              forecast: above
                              normal

 Severe weather forecast:
 hotter and drier than
 usual in some regions

                                                14
Reserve Above Requirements
Source: IESO 18-month Outlook Jul 2018 – Dec 2019

                                     Reserve Above Requirement = Available Resources – (Demand + Required Reserve)

                      10,000
Reserve Above Requirement [MW]

                                 8,000     Firm Scenario
                                          Normal Weather
                                 6,000

                                 4,000

                                 2,000

                                    0
                                                                            Firm Scenario
                          -2,000                                          Extreme Weather

                          -4,000
                             01 Jul 2018      16 Sep 2018   02 Dec 2018     17 Feb 2019   05 May 2019   21 Jul 2019   06 Oct 2019   22 Dec 2019

                                                                                   Week Ending

                                          Reserves are at or above requirement for Summer 2018

                                                                                                                                              15
Forecast peak demand Summer 2018
Source: IESO 18-month Outlook Jul 2018 – Dec 2019
                  Season                     Normal Weather Peak (MW)                  Extreme Weather Peak (MW)

              Summer 2018                              22,076                                        24,535
              Winter 2018-19                           21,328                                        22,235
              Summer 2019                              22,016                                        24,460
                   Year                     Normal Weather Energy (TWh)                   % Growth in Energy

                   2015                                 136.2                                        -1.9%
                   2016                                 136.2                                         0.0%
                   2017                                 132.3                                        -2.8%
              2018 (Forecast)                           133.7                                         1.0%
              2019 (Forecast)                           134.0                                         0.3%

                                                       Summer Peak 2018       Winter Peak 2019           Summer Peak 2019
      Notes                 Description                  Firm     Planned      Firm       Planned         Firm     Planned
                                                       Scenario   Scenario   Scenario     Scenario      Scenario   Scenario
       1               Installed Resources (MW)         37,044     37,060     36,922       37,998        36,866     38,396
       2         Total Reductions in Resources (MW)     12,122     12,127     10,449       10,461        10,254     10,722
       3               Demand Measures (MW)               630        630        793          793          533        533
       4         Firm Imports (+) / Exports (-) (MW)     -102       -102       -500         -500            0          0
       5              Available Resources (MW)          25,451     25,462     26,766       27,830        27,144     28,207

 Sufficient resources for the firm scenario peak demand, with no anticipated
  reliance on support from external jurisdictions

                                                                                                                              16
Energy Adequacy Assessment Summer 2018
Source: IESO 18-month Outlook Jul 2018 – Dec 2019

 Sufficient energy supply for the firm scenario, with no anticipated reliance on support
  from external jurisdictions

                                                                                      17
Reliability Outlook remains positive for
 Summer 2018
 Sufficient capacity and energy supply, with no anticipated
  reliance on support from external jurisdictions
 Reserves are at or above requirement for Summer 2018
 Natural gas storage levels expected to be adequate; gas-fired
  generating units demonstrated unit readiness; gas-electric
  coordination meeting held in May 2018
 If extreme weather conditions occur, the IESO may reject some
  generator maintenance outages to ensure that Ontario demand
  is met during the summer peak

 Positive outlook is the result of the consistent effort and contribution
  by all stakeholders – thank you!

                                                                         18
Thank You!

             19
Spring 2018 IESO Operations Outreach
The Growing Significance of an
earlier Operating Plan

Joseph Ricasio
Senior Power System Specialist, Operations Planning
June 20, 2018
Reliable operations of the Ontario grid
 benefits from a good operating plan.

Together, we have, and will continue to
   strive for a good operating plan.

                                          21
Agenda

 1. What is a good operating plan?
 2. Why an earlier operating plan?
 3. How we establish an early operating plan?
 4. Example of how we benefitted

                                                22
What is a reliable Operating Plan?

 Adequacy: The ability of the power system to provide
 sufficient capacity and energy to meet demand, and have
 sufficient transmission to deliver supply to connected
 loads.

 Security: The ability of the power system to withstand
 reasonably foreseeable contingencies, and not result in
 instability, uncontrolled separation, or cascading
 outages.

                                                           23
Why Operating Plan is more significant now?

   Ontario system is aging and changing

   • Significant upgrades to Transmission Stations
   • Nuclear refurbishment & retirements
   • Changing supply mix

   Demands an earlier Operating Plan

   • Market participants (MPs) benefits from earlier certainty
   • Outage assessments will require longer lead time due to
     complexity of unique or unfamiliar scenarios
   • Earlier outage facilitation will help reduce and simplify
     out-of-scope scenarios

                                                                 24
Agenda

  1. What is a good operating plan?
  2. Why an earlier operating plan?
  3. How we establish an early operating plan?
  4. Example of how we benefitted

                                                 25
Outage Management System Redesign (OMSR)

Considerations
  • More uncertainty the further out an assessment is
    conducted.
  • More time spent on assessment if assumptions change.
    Therefore, assessment is ideally not as comprehensive.
  • Quarterly advanced approval is meant for outage plans
    that ensure a high certainty of a reliable Operating Plan
    (i.e. pre-studied scenarios).
                                                          26
Adequacy: Normal to Extreme Weather Criteria
                 Reserve Above Requirement (RAR) = Available Resources - (Demand + Required Reserve)

      10,000

        8,000        Firm Scenario
                    Normal Weather             Firm Scenario
        6,000                                Extreme Weather
 RAR [MW]

        4,000

        2,000

             0

      -2,000

      -4,000
         01 Jul 2018     16 Sep 2018   02 Dec 2018   17 Feb 2019   05 May 2019   21 Jul 2019   06 Oct 2019   22 Dec 2019
                                                            Week Ending

Considerations
            • Extreme criteria will impact generator (and possibly
              transmission) requests in the Summer.
            • 2000MW for Extreme imports is assumed if this is
              achievable.
                                                                                                                           27
Security: Outage Conflict Checker (i.e. Matrix)

      Rule Name     Element List   Threshold   Reason
                     Circuit A
      West Region    Circuit B         1       Thermals
                     Circuit C

Considerations
  • If outage plan is within Outage Matrix, high certainty
    that outage plan is approved.
  • Exceptions for outage combinations that are
    unavoidable (e.g. clearance).
  • Dynamic outage guide – relax the rule if too restrictive,
    and add a rule if found to be a reliability concern.

                                                          28
Agenda

  1. What is a good operating plan?
  2. Why an earlier operating plan?
  3. How we establish an early operating plan?
  4. Example of how we benefitted

                                                 29
Background of Operating Plan Example
Flow East Toward Toronto
(FETT):
Consists of 4 500kV circuits
and 6 230kV circuits

Outage request:
Multiple non-recallable
generation outage East of
FETT

Study findings:
Insufficient generation to
address re-prep limit and
reserve requirements

                                       30
Lessons Learned from Operating Plan Example

Adequacy: Imports
assumption could be
impacted (Michigan &
New York bottled)

Security: FETT
transmission vs East of
FETT generation

Need to adapt and
prepare to new future
(i.e. reoccurring scenario)

                                              31
Benefits of looking ahead

More time spent on
complex outage
combination, and resulted
in a good operating plan

Outage plans salvaged (e.g.
reschedule and re-scoping)
instead of rejection

Additional improvements
will be applied prior to next
set of outage plans

                                32
Continue to improve the Operating Plan

                                Resource &
    Study &      MP Long
                               Transmission
     Matrix        Term
                                 Planning
    Updates     Coordination
                               Coordination

                                              33
Summary
1. What is a good operating plan? Acceptable
  adequacy, security, and operability.
2. Why an earlier operating plan? System is aging,
  and many complex non-recallable long-term critical
  outages underway.
3. How we establish an early operating plan?
  Added up to 7 months of early assessment, greater co-
  ordination, & outage conflict checker.
4. Example of how we benefitted. More time spent
  on assessment and co-ordination resulted in:
  –   Earlier certainty, and salvaging of outages.
  –   A good integrated operating plan.
                                                          34
Questions?

             35
Market Update

Jessica Tang
Operational Assessments, IESO
RESERVE FOR FLEXIBILITY

                          37   37
Some Factors Affecting Need for Flexibility

                 VG may be         Potential for
                  providing       requiring more
  VG Forecast

                  flexibility        flexibility

                                    Committed
                 Potential for
                                 resources may be
                requiring more
                                     providing
                   flexibility
                                     flexibility

                       Demand Forecast
                                                    38
Enabling System Flexibility

• The proposed solution was to increase the 30-minute OR
  requirement to indicate the need for flexibility to the
  market.

• The solution leverages off existing market processes, and
  may meet the need for flexibility by scheduling or
  committing additional resources as required.

                                                          39
Enabling System Flexibility

• The process to increase the 30-minute OR requirement
  for flexibility was implemented on May 23rd, 2018.

• An Advisory Notice is issued when the 30-minute OR
  requirement is increased for flexibility, and the increase
  is also reflected through the Total Operating Reserve
  Requirement amount in the Adequacy Report.

                                                               40
New Technology Integration

Diljeet Singh
Market & Technology Integration, IESO
Agenda

•   IESO Operations Update - MTI
•   Energy Storage – Background
•   Energy Storage – Operational Challenges
•   Grid-LDC Interoperability Standing Committee
    Update

                                                   42
Market & Technology Integration (MTI)
• Need for a dedicated unit within Operations to facilitate
  transition of projects/products/services from innovation
  to operational stage
• MTI – a new team created within Operations to
  champion the following:
   – Assess and anticipate potential impacts of changing power system
     markets and technology on Operations
   – Enable seamless integration of these changes into IESO administered
     markets (IAM) and system operations (via tools, processes, & staff
     training)
   – Leverage opportunities from and manage risks of these changes to
     ensure efficient execution of IAM and effective system operations

                                                                           43
IESO’s Energy Storage Portfolio (110.5 MW capacity
procured as of April 2018)

                                                     44
Energy Storage Procurement & Timeline
   2012                                    2014                                 2015                            2017

Alternative Technologies for                                   Grid Energy Storage Procurement - Phase II
Regulation (6 MW)                                              (16 MW)
•    Evaluate alternative technologies                         •    Investigate storage for responding to
     for regulation service                                         market signals
•    Different technologies selected for
     technology diversity

                          Grid Energy Storage Procurement - Phase I
                          (33 MW)
                          •    Investigate storage for regulation, and
                                                                                        Regulation RFP (55 MW)
                               reactive support and voltage control
                                                                                        •   Two new storage facilities selected
                               (RSVC)
                                                                                            through competitive RFP
                          •    Projects across different zones to
                                                                                        •   Complement existing 100 MW
                               evaluate their effectiveness at alleviating
                                                                                            regulation service
                               local constraints or restrictions

                                                                                                                          45
NORTHEAST

                      ESSA       OTTAWA
         BRUCE

                                EAST
                      TORONTO
          SOUTHWEST

                      NIAGARA
  WEST

                                          46
Energy Storage - Operational Challenge

                                   What the IESO system
          Reality…
                                     model “sees”…

                                           G Generator       Load

  A SINGLE storage facility that   TWO separate facilities with no
  can withdraw, store and inject   storage capacity and no discernable
  energy                           relationship with each other

                                                                         47
Energy Storage - Operational Challenge

                                  What the IESO system
        The result…
                                    model “sees”…

 • Risk of conflicting dispatch
   between the two facility
   components modeled
 • Dispatch Scheduling and
   Optimization (DSO) model
   has no awareness of storage
   capacity or ability to
   optimize it
                                          G Generator       Load

                                  TWO separate facilities with no
                                  storage capacity and no discernable
                                  relationship with each other

                                                                        48
Grid-LDC Interoperability Standing Committee
Update
Objective:
• Establish a partnership to discuss issues & opportunities for
  a more coordinated operation of Ontario’s electricity system;
• Identify how existing capabilities can be enhanced to
  increase the efficiency & reliability of Ontario’s electricity
  system, and
• Increase awareness of upcoming changes at both the grid &
  distribution levels to understand the impact on system
  operations and develop new capabilities to manage them.

                                                            49
Grid-LDC Interoperability Standing Committee
Update
DER Survey: Gain better understanding of DER penetration levels,
technical limitations and communication (visibility & control)
   – Survey revised based on LDC feedback and re-issued
   – High response rate received from participating LDCs
LDC Data Sharing Pilot: Improve operational visibility and forecast
accuracy through greater visibility of DERs
   – First Pilot: Receive aggregated embedded generation telemetry from 2 LDC’s
   – Started adding aggregated telemetry for DERs < 5 MW by station for Alectra
     and Enwin
Standing Committee Agenda for 2018:
   – Develop an Operational Risk Assessment with LDCs, identifying and
     prioritizing risks, creating need for new operational capabilities

                                                                          50
Summary

• MTI is a necessity within Operations given
  the evolving market & system conditions
• Storage portfolio is growing and coming
  online
• Grid-LDC Interoperability Standing
  Committee is moving well

                                               51
Questions
The Connection Assessment Process

Samuel Jager, Connection Assessments, IESO

June 2018
Introducing Connection Assessments
• New facilities or modifications of existing facilities connecting to the
  IESO-controlled grid change the operating characteristics of the
  system (locally and/or globally).
• The Connection Assessment and Approval (CAA) process ensures
  these changes don’t have an adverse effect on the reliability of the
  IESO-controlled grid (Section 6 of Chapter 4 of the Market Rules).
• The CAA process is implemented via System Impact Assessments
  (SIAs) and the Expedited System Impact Assessments (ESIAs) (Market
   Manual 2.10).

                                                                         54
The Connection Assessments Process

• Applicants must seek out the Connection Assessments process prior
  to connecting.
• Occurs ahead of registering equipment in the Operations
  Integration process

                                                                  55
SIA Process Overview
Through the following steps, the SIA process identifies solutions to
maintain the reliability of the IESO-controlled grid:
• Connection applicants submit an SIA application
• The IESO enters an SIA agreement with the connection applicant and
  performs the necessary studies.
• The IESO issues a draft SIA report to the connection applicant and
  transmitter for review and comments.
• Once agreement is achieved on the report the IESO issues a final SIA
  report and a NoCA or NoDR to the connection applicant.

                                                                       56
Clarifications and Opportunities
• We want to hear from you! Please contact the connection assessments
  (CA) group anytime there’s a question or concern.
• The CA group routinely looks to improve delivery of services while
  maintaining system reliability.
• The CA group targets to follow up on any inquiry as soon as possible -
  typically within 2 business days.
• All communication during the SIA process is confidential. Only the
  final SIA/ESIA report is published by the IESO
• We encourage kick-off meetings (face-to-face, if preferred) and regular
  meetings on project status to ensure all parties are well informed.

                                                                       57
Clarifications and Opportunities (contd.)
• Spare equipment used for regular maintenance or repairs that involve
  replacement of primary equipment can be pre-assessed
• Though the SIA/ESIA is intended to assess the final stage of the project,
  providing information on critical intermediate stages within the
  SIA/ESIA raises awareness amongst all involved parties
• The current application forms contain sufficient provisions for
  submitting both temporary and spare equipment information to the
  IESO for connection assessments.
• Our team is currently working with regulating bodies and industry to
  improve the effectiveness of integrating of non-traditional generation
  including DER technologies into our processes

                                                                        58
Connection Assessments Information

• Market Manual 2.10: Connection Assessment and Approval
  Procedure http://www.ieso.ca/en/sector-participants/market-
  operations/-/media/2b4b86bbada344a9a36beeab0e722fbe.ashx
• Webpage: http://www.ieso.ca/en/sector-participants/connection-
  assessments/obtaining-a-connection-assessment
• Contact: connection.assessments@ieso.ca

                                                                   59
Operations Integration

Bryan Hartwell, Operations Integration, IESO

June 2018
Introducing Operations Integration
• New facilities or modifications of existing facilities need to
  integrated into tools and business processes for reliable real-time
  operation of the IESO controlled grid and IESO administrative
  markets.
• The IESO uses the facility registration process to assess whether
  market participant’s facilities or boundary entities meet all
  minimum requirements defined by the market rules.
• The IESO has established procedures, via Market Manual 1.1 and
  1.2, for the implementation of the Operations Integration process.

                                                                        61
Operations Integration
• The following main processes are part of Operations Integration:

   1. Participant Authorization
   2. Facility Registration
   3. Commissioning facility (test, re-test, test again)
   4. Manage the current information (updates)
   5. Performance Validation

                                                                     62
Facility Registration Lifecycle

                                  63
Registration Approval Notification - RAN
• RANs are issued for different reasons, such as:
   – New equipment
   – Updated/Modified equipment
   – New organization/participation types
   – De-registrations and withdrawals
   – Various stages of a facility lifecycle (e.g.: on-potential, on-load,
     commissioning, injection, or dispatchable, etc.)
   – Register for Demand Response

• Purpose:
    – Inform Control Room of changes to ICG and IAM that affect operation of such.
    – A checklist to ensure IESO activities to support change are completed; such as:
      modelling, metering, commissioning, etc.

                                                                                        64
Registration Approval Notification

            Year   # of RANs issued
            2005        96
            2014       363
            2015       424
            2016       362
            2017       448

                                      65
Performance Validation

• Not strictly a part of the registration process itself,

• Registered data is verified through study and field testing,

• Verify facilities have met requirements stipulated in SIA,

• Verify facilities comply with regulatory standards.

                                                                 66
Upcoming Additions to Online IESO

• User changes to Market Meter Participant role

• User changes to Owner/Operator role

• User initiation of facility/org name change, or withdrawal from
  market

                                                                    67
Questions?
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