Identification of best practices for new technology adoption and regional integration of electric power systems in Latin America.

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1 1 Identification of best practices for new technology adoption and regional integration of electric power systems in Latin America. David Elizondo, Quanta Technology Ramón León, ISA

2 2 Presentation outline Introduction Latin America Regional Integration Synchrophasor based systems at control centers Energized work for transmission and generation facilities System integrity protection schemes (SIPS or SPS) Demand Response Energy Storage Conclusions and the future

3 3 Introduction Previously, large-scale development in Latin America had been quiet and characterized by small individual markets, lack of integration and unrealized use of resources such as hydropower. In 2006, construction of the first regional electric transmission system for Central America (SIEPAC) was begun Interconnects Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. SIEPAC and other planned interconnection systems will realize economies of scale through shared reserve margins, economic dispatch efficiency gains and taking advantage of demand and supply complementarities. South America continues with its integration plans The IDB, United Nations and other agencies are pushing the development of other initiatives like Connect 2022 and Sustainable Energy for All (SE4ALL) Goals of increasing access to electricity, interconnecting systems and increasing the portfolio of renewable energy. However, the innovation in the energy supply chain due to the introduction of new technologies is creating new operational scenarios and challenges.

4 4 Latin America Regional Integration Regional integration has been slow to develop for several reasons such as the recession and lack of trust about relying on neighbors for energy security and reliability The interconnection between Colombia and Ecuador has been effective The new era of renewables changes the historical balance for potential importing and exporting countries (CIER ARIESS project) In 2014, the Council of Energy Ministers of the Andean Electrical Interconnection System (SINEA) that integrates Peru, Ecuador, Chile, Colombia and Bolivia signed the Declaration of Lima which is a roadmap for the progressive power integration in the Andean area by Source: Nexant Energy sub-regions and inter-regional integration zones Source: WEC

5 5 Objective This presentation explores the identification and adoption of best practices that can facilitate future integration. Key short term issues include Synchrophasor based systems at control centers Energized work for transmission and generation facilities System integrity protection schemes (SIPS or SPS) Demand Response Energy Storage

6 6 Definition of Practices for Adoption Synchrophasor based systems at control centers GPS based, precise and synchronized measurements for wide area monitoring and control Energized work for transmission and generation facilities A tool in the asset management portfolio of any utility to perform maintenance or construction of facilities while energized.

7 7 Definition of Practices for Adoption (2) System Integrity Protection Schemes (SIPS or SPS) Emergency controls, aimed to protect the system from abrupt system wide instabilities (one form of Defense plans) Demand Response The load-side counterpart to maintain system reliability by controlling its parameters (f, V, etc.) Energy Storage An enabler for renewable energy integration

8 8 Synchrophasor Based Systems Synchrophasor Technology is envisioned as the tool of choice for advanced real time monitoring and control of electric power systems particularly for control centers Synchrophasor Technology applications at the control center is one of the most important tools to provide wide area, situational awareness among each of the individual countries and eventually in the integrated electric power system of the Latin America Region To the right is the isaac Conceptual Design (Intelligent Supervision and Advanced Control System) that XM, the power system operator in Colombia began work on in There are other efforts being conducted in Ecuador, Chile and Peru (nascent stage). The implementation Roadmap was a collaborative effort between XM and Quanta Technology, with the support of the US Trade and Development Agency Source: XM and Quanta Technology presentation at NASPI, March 2016

9 9 Synchrophasor Based Systems 2015 (Current Status) Working WAMS Conceptual Design finalized isaac Roadmap finalized 2020 Advanced supervision (no protection and control) Some SIPS implemented [with PMUs+IDD] Complete isaac implementation Frequency control Roadmap for isaac incremental development (designed to achieve credible results at each stage) 2016/2017 WAMS & SCADA/EMS integration Detailed Technical Requirements for isaac software architecture Technical Requirements for IDD 2022/2023 Collaborative Protection (no control) Full IDD implementation PMU based Volt/Var control Source: XM and Quanta Technology presentation at NASPI, March 2016

10 10 Energized Work Energized work is an important tool in the overall asset management strategy of any large ISO/RTO that is focused on the reliable and economical operation of the electric power system. Possible energized work options include: Ground Based Robots such as the QES Line Master Robots Suspended from the line Aerial Based or UAVs Transmission or generation outages are becoming more and more difficult to schedule in modern electric power systems. Transmission asset owners like ISA and EPM in Colombia are active in energized work. There are some efforts of future energized work practices by transmission asset owners in Peru. As safe as de-energized work based on more strict safety procedures and number of operations required Minimizes capital investments, such as new rights of way. Energized Work Drivers The single fundamental driver is Outage Prevention. Avoids increase in operational costs due to generation redispatch. Circuits most in need of relief are usually the ones most difficult to schedule outages It avoids increasing congestion over already congested paths by scheduling line outages.

11 11 Energized Work Key Applications Overview of main transmission corridor and robotic arms, Johannesburg, South Africa** Replacement of Structures Replacement of Insulators Replacement of Conductors (reconductoring) Maintenance at switchyards of key generation stations Hot Spots Reliability problems Conservation of Structures Painting towers while energized ** David Elizondo, Thomas Gentile, Hans Candia and Greggory Bell. (2010). Overview of Robotic Applications for Energized Transmission Line Work Technologies, Field Projects and Future Developments. 1st International Conference on Applied Robotics for the Power Industry. Montreal, Canada. * David Elizondo, Thomas Gentile, Hans Candia and Greggory Bell Ground based robots for transmission line work technology description, field projects and technical-economical justification of its application IEEE PES Transmission and Distribution 2010 Latin America Conference.

12 12 Energized Work- Project Case Study: Transmission line structure replacement 21 miles of 230 kv transmission lines needed to be upgraded from single circuit to double circuit. Options: Work de-energized which would require extensive outage (months duration) or work energized which would have non-scheduled outages. A fourth conductor is installed over the robotic as a temporary structure Economic benefits of solution: Estimated avoided cost of 7.5 MUSD by performing work energized Energized solution was the preferred method. Single pick robotic arm which captured the energized conductor above the H frame structure* Efficient systems should have benchmarked and similar practices regarding maintenance, construction and the use of energized work as one tool to achieve the overall goals of reliable and profitable operation of electric power systems.

13 13 System Integrity Protection Schemes (SIPS or SPS) System integrity protection schemes (SIPS) have been used as emergency controls in order to maintain the reliability of the electric power system under sudden disturbances. SIPS are an essential tool to be used among power system operators. Chile has used and implemented a number of SIPS and they are part of its system operational characteristics. In Colombia, there are plans for conceptual designs for SIPS, pending regulation modifications. A SIPS scheme has been developed in Peru regarding the application of a large consumer load. In Ecuador, CENACE, the power system operator and TRANSELECTRIC, the transmission owner developed and implemented a system wide SIPS that was designed by Quanta Technology. ( CENACE)

14 14 System Integrity Protection Schemes (SIPS or SPS) Event Analysis in CENACE s SPS On May 6, 2015, at 1:29:54, the SPS was activated due to the double contingency of the Transmission Line Molino - Pascuales 230 kv. Economic savings due to performance of the SPS was calculated to be $1.1M USD EVENT ANALYSIS PERFORMANCE WITHOUT SPS ENS (MWh) Total Cost (Millions USD) WITHOUT SPS WITH SPS Source: CENACE presentation at NASPI, October 2015

15 15 Demand Response Demand Response is a generic tool for power system operation with benefits in any type of market organization. In Latin American, it can contribute: Energy system Reliability DR provides an efficient alternative to inefficient thermal units used as extreme reserves in low hydrology conditions. Power System Security In dry seasons, capacity at peak hours can still be an issue. DR can provide the same benefits as in capacity markets. DR will provide relief for transmission congestion when facing high locational prices or power plant outages. System Economy DR provides elasticity to the demand, helping a more efficient price formation in the spot market DR allows hedging of risky trading positions in generators and retailers C&I Customer Tools C&I customers can reduce their energy expenses when participating in DR programs C&I customers can improve their efficient energy utilization

16 16 Demand Response in Colombia Colombian Regulator (CREG) has advanced in the development of demand response mechanisms in Colombia. However, more is required to incentivize wide adoption. Voluntarily Disconnectable Demand (DDV) Backup for generation capacity obligations Bilateral contracts (no fixed price) Required to reduce when generation unavailable (long periods) Asymmetry in treatment respect to generators Only economically feasible when Pb >> Pe Demand Response in critical conditions (RD) Only in critical conditions where Pb > 1.08*Pe : Condition rarely met Oct 2015 Apr 2016: Permanent condition in El Niño Uncertainty of future occurrences Revenue = Pb - Pe

17 17 Demand Response in Colombia Recommended rationing of 400 GWh in 6 weeks (9.5 GWh-day) Energy Savings (RD, DDV) 404 GWh During the recent El Niño event, the system was highly stressed due to several major plant outages. Hydro inflows 509 GWh 1,164 GWh Thermal generation 166 GWh Demand Response or Rationing was required. (31.5 GWh-day) Distributed generation Energy imports 63 GWh -73 GWh Source: XM S.A. E.S.P.

18 18 Demand Response in Colombia Fecha DATE TOTAL (GWh-día) Activation of the Dispatch DDV-RD GWH-day 21-mar mar mar mar mar mar mar mar mar mar mar abr abr abr abr abr abr abr abr 2.9 Source: XM S.A. E.S.P. In the recent El Niño, both DDV and RD were activated in critical conditions

19 19 Demand Response in Colombia Demand Response Time [MWh] MES DISPONIBLE PROGRAMADO LIQUIDADO Marzo de ,973 5,090 2,681 Abril de ,951 11,326 7,009 TOTAL 19,924 16,416 9,690 41% 59% Source: XM Presentation CAC XM /May-16

20 20 Demand Response in Colombia DR Demand Percentage in the SIN Source: XM S.A. E.S.P.

21 21 Demand Response in Latin America RD Capacity Expected by 2021 México (2017/18) 2,400 MW Cargo por Potencia, Spot y SC Reglas Mercado SENER / CRE Colombia (2017) 600 MW Cargo por Confiabilidad, Spot y Congestión Ley 1715 / MME2492 / CREG011 / DocCREG077 Perú 360 MW Reserva Fría y Cargo por Potencia APP Iniciativa Privada - Proinversión Chile 800 MW Cargo por Potencia y Exigencia de Eficiencia Plan Energético a 2050 Brasil 4,000 MW Cargo por Potencia y Congestión Se requiere desarrollo regulatorio

22 22 Energy Storage As a structural grid resource As an ancillary services resource As a price arbitrage resource

23 Energy Storage in Latin America 23

24 24 Reliability in Large Cities Decreasing grid capacity in developing cities: Incremental loss of reliability Elevated congestion costs Growing difficulty for development of new transmission Storage is an Ideal solution for grid constrained regions

25 25 Conclusions and the future Synchrophasor based systems at control centers Energized work for transmission and generation facilities System integrity protection schemes (SIPS or SPS) Demand Response Energy Storage A plan to train and certify operators in order to have a common basis of skills and abilities for the entire interconnected regions

26 26 Thank you for your attention David Elizondo, Quanta Technology Ramón León, ISA

Todos los derechos reservados para XM S.A. E.S.P.

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