On 23 August 2017, the Department of Energy (DOE) issued a report entitled, “Staff Report to the Secretary on Energy Markets and Reliability.” In his cover letter, Energy Secretary Rick Perry notes:
“It is apparent that in today’s competitive markets certain regulations and subsidies are having a large impact on the functioning of markets, and thereby challenging our power generation mix. It is important for policy makers to consider their intended and unintended effects.”
Among the consequences of the national push to implement new generation capacity from variable renewable energy (VRE) resources (i.e., wind & solar) are: (1) increasing grid perturbations due to the variability of the output from VRE generators, and (2) early retirement of many baseload generating plants because of several factors, including the desire of many states to meet their energy demand with a generating portfolio containing a greater percentage of VRE generators. Grid perturbations can challenge the reliability of the U.S. bulk power systems that comprise our national electrical grid. The reduction of baseload capacity reduces the resilience of the bulk power system and its ability dampen these perturbations.
The DOE staff report contains the following typical daily load curve. Baseload plants include nuclear and coal that operate at high capacity factor and generally do not maneuver in response to a change in demand. The intermediate load is supplied by a mix of generators, including VRE generators, which typically operate at relatively low capacity factors. The peak load generators typically are natural gas power plants that can maneuver or be cycled (i.e., on / off) as needed to meet short-term load demand. The operating reserve is delivered by a combination of power plants that can be reliably dispatched if needed.
The trends in new generation additions and old generation retirements is summarized in the following graphic from the DOE staff report.
Here you can see that recent additions (since 2006) have focused on VRE generators (wind and solar) plus some new natural gas generators. In that same period, retirements have focused on oil, coal and nuclear generators, which likely were baseload generators.
The DOE staff report noted that continued closure of baseload plants puts areas of the country at greater risk of power outages. It offered a list of policy recommendations to reverse the trend, including providing power pricing advantages for baseload plants to continue operating, and speeding up and reducing costs for permitting for baseload power and transmission projects.
Regarding energy storage, the DOE staff report states the following in Section 4.1.3:
“Energy storage will be critical in the future if higher levels of VRE are deployed on the grid and require additional balancing of energy supply and demand in real time.”
“DOE has been investing in energy storage technology development for two decades, and major private investment is now active in commercializing and the beginnings of early deployment of grid-level storage, including within microgrids.”
Options for energy storage are identified in the DOE staff report.
You can download the DOE staff report to the Secretary and Secretary Perry’s cover letter here:
Lyncean members should recall our 2 August 2017 meeting and the presentation by Patrick Lee entitled, “A fast, flexible & coordinated control technology for the electric grid of the future.” This presentation described work by Sempra Energy and its subsidiary company PXiSE Energy Solutions to address the challenges to grid stability caused by VRE generators. An effective solution has been demonstrated by adding energy storage and managing the combined output of the VER generators and the energy storage devices in real-time to match supply and demand and help stabilize the grid. This integrated solution, with energy storage plus real-time automated controls, appears to be broadly applicable to VRE generators and offers the promise, especially in Hawaii and California, for resilient and reliable electrical grids even with a high percentage of VRE generators in the state’s generation portfolio.
You can download Patrick Lee’s 2 August 2017 presentation to the Lyncean Group of San Diego at the following link: