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Reliability Improvements in Latin America for the 21st Century i-pcgrid Workshop 2013 Innovations in Protection & Control for Greater Reliability Infrastructure Development

Outline Description of the Colombian System Challenges: The new energy business environment Reliability Improvements in XM for the 21st Century

Colombian Power System Generation Total Capacity 14400 MW INTERNATIONAL INTERCONNECTION COUNTRY EXPORTATION (MW) IMPORTATION (MW) ECUADOR 535 215 VENEZUELA 336 205 TRANSMISSION NETWORK VOLTAGE LEVELS LENGTH(km) 110-115 kv 10,292 220-230 kv 11,672 500 kv 2,437 TOTAL 24,404 Peak load 9 GW

Colombian Market Structure CONSUMERS TRADING Buy energy they need on the wholesale energy market, short and long term, and selling it to end customers Under competition DISTRIBUTION Monopoly service Open access Regulated activity and pricing TRANSMISSION Monopoly service Open access Regulated activity and pricing GENERATION Under competition Generators must submit bid prices to System Operator (spot market) and energy availability Perform Long Term contracts Reliability Charge Regulated Non Regulated (>0.1MW or 55 MWh - month) ADMINISTRATION OPERATION CND XM is in charge of operating the National Interconnected Power System through the National Dispatch Center and managing the Wholesale Electricity Market

Colombia has a complex electric power system Hydro generation far from consumption centers Uncertainties deriving from wet and dry seasons (length and depth) Latest widespread rolling blackout was in 1992 Total blackout on April 26, 2007 Constant terrorist attacks on transmission infrastructure Highly dynamic energy market We have managed high quality and reliability

The Challenge: The new energy business environment

The new energy business conflicting challenges (Should we pursue higher reliability standards at all costs?) Reliability The major challenges facing the electric power industry today include the need for balancing resource adequacy Operational Efficiency ($) Environment

Our basis for operational reliability Operational reliability Instances Preventive Corrective HUMAN RESOURCES PROCESSES INFORMATION TECHNOLOGY REGULATION BUSINESS CONTINUITY PLAN CULTURE: EXCELLENCE AND ASSERTIVE ERROR HANDLING RISK MANAGEMENT

Reliability Improvements in XM for the 21st Century

Our strategy to achieve ever increasing reliability standards OPERATIONAL RELIABILITY Aspects

It begins with human resources 1 It s not just a technical issue, it is also an human development challenge. One of the lesson learned... 3 Training Standardized and customized training using the latest simulation tools to keep skills current in the operation and administration of the market and to ensure compliance with regulatory changes 2 Improving operational reliability requires all these elements combined with good and sufficient information. All these allow us to have better situational awareness at the control room. Certification Recognized by an accredited institution (SENA) to comply with the requirements established by experts in occupational competency standards. Qualification Oriented to develop the required knowledge, skills and attitudes for a specific industry job function.

And our system should be prepared for the new challenges ahead Primary Energy Sources Availability Distributed Generation Demand Response How to integrate these elements to assure quality and reliability to the demand Transm. Exp. Plann. International Interc. Energy Storage

Therefore, we need new strategies for system wide protection and control Defense Plans Automatic measures used to minimize and reduce the severity and lower the probability of unexpected events and to prevent system collapse. An additional level of protection Strategic Power Infrastructure Defense(SPID) Task Force C2.02.24 CIGRE FUTURE WORK -Design and implement the Roadmap for Defense Plans - Give regulatory proposals to CREG(identifing clearly all responsabilities) -Keep and reinforce the working plan with the expansion planner, -UPME- -Get all the operative personnel certified in Power System Protections -Develop a Wide Area Monitoring, Protection And Control System -Implement best practices in systemic protections -Keep an active participation in international protection forums: CIGRE, PSRC

And if the unthinkable happens, we maintain a Business continuity plan (BCP) Model Distributed Operation Control Center 1 Control Center 2 CCR : the same functions assigned to the CND, very high reliability. Works as a mirror of the CND. Is updated in real time of the whole supervision of the Colombian electrical system. 4. Execute. 5. Measure. Plan Testing and Maintenance Plan Development and Execution 3. Design. Strategy Selection 1. Identify. Risk Assessment 2. Analyze Business impact Analysis BCP for the operation of the SIN and for the administration of the wholesale electricity market. Provides details how recover the core processes, taking in account the criticality defined for each of them.

The implementation of the latest technologies leverage our quest for better reliability Blackout 2007 Lessons learned New training center with operator certification Born Defense Plan against Large Scale Events (SIRENA) Sirena * Project (2007 2012) Use of newest technology for power system monitoring (PMU). Looking partnership for build Conceptual Design and Rout Map for the implementation New applications implemented in the Control Center. (Situational Awareness) WAMS implemented (2009-2013) 16 substation with 18 PMUs and 24 new PMUs to install in 2013. WAMS installed. Research with universities for new applications Quanta/USTDA Agreement * SIRENA: Sistema de Respaldo Nacional Ante Eventos de Gran Magnitud

But if we are using the latest, why not propose a new future The isaac Project The goal of the isaac project is to design and implement the architecture and the functional ecosystem for our future real time supervision and control system, as a radical evolution of the SCADA/EMS, integrating: Phasor measurement technology IP based communications / Data Bus architecture Distributed functionality at Substations Collaborative Protection / Advanced SPS Advanced Situational Awareness XM received an USD 463,000 grant from the US Trade and Development Agency (USTDA) for refining our initial conceptual design. Quanta Technology LLC was selected as our partner for this project. IP COMMUNICATONS / DATA BUS * isaac: Intelligent Supervision and Advanced Control

All in all, we are at an inflection point in the energy industry When an industry goes through a strategic inflection point, the established players may have trouble. On the other hand, a 10X change provides an opportunity for outsiders to join and become part of the action. inflection point Based on Only the Paranoid Survive by Andrew S. Grove New techniques, new approaches, new technologies and upset the old order and change the rules of the game. Are we ready to take advantage of it?

María Nohemí Arboleda Arango Gerente Centro Nacional de Despacho - XM mnarboleda@xm.com.co Thank you