Knowledge Exchange Workshop on Wind Projects Planning May 9, 2013 Beirut, Lebanon

1. Workshopon “Experienceson Wind FarmsProjects”
WindEnergyProjectsIntegrationinElectricityGrids:
PortugalandMed-TSOexperiences
JoséMedeirosPinto
Beirut,9May2013

2. Topics
Introduction
RES figures in the Mediterranean countries
World ranking for wind energy
The wind energy in Portugal - introduction
The Portuguese electric system
REN’s methodological approach for RES integration
Portuguese licensing procedures for RES promoters
Planning & Operational issues driven by RES
Call for a Wind Bid – a Portuguese example
Main issues & risk analysis
Final considerations

3. Introduction: The Mediterranean area
Albanie - OST
Algérie – SONELGAZ, GRTE, OS
Egypte - EETC
Espagne - REE
France - RTE
Grèce - ADMIE
Italie - TERNA
Jordanie – NEPCO
Lybie – GECOL
Maroc - ONE
Monténégro - CGES
Portugal - REN
Slovénie - ELEKTRO-SLOVENIJA
Tunisie - STEG
Turquie - TEIAS
Med-TSO
3

4. Introduction: ENTSO-E interconnected System
Countries 34
TSOs 41
4

5. Between 2010 and 2020, the installed capacity will grow* from 64 to 129 GW (+100%)
while the energy production will raise from 300 to 573 TWh/yr (+91%).
140
200
105
293
35
18
19
2
42
0
100
200
300
400
500
600
700
energy 2010 energy 2020
TWh
573 TWh
300 TWh
25
45
19
47
5
6
1
17
0
20
40
60
80
100
120
140
capacity 2010 capacity 2020
GW
RES
Hydro
GT & Diesel
Combined Cycle
Steam & Nuclear
129 GW
64 GW
Steam
& Nuclear
Gas Turb.
RES figures in the Mediterranean countries
CCGT
Hydro
RES
* Source: Paving the way for the Mediterranean Solar Plan
6

6. RES figures in the Mediterranean countries
• Turkey has the target of 7000 MW in 2015
• Egypt has the absolute goal of 5000 MW, mainly Wind
• The largest percentage of RES is in Morocco (27%) and in Jordan (24%);
• Wind seems to be more appreciated than solar (especially in Morocco and Egypt )
0.00
0.05
0.10
0.15
0.20
0.25
0.30
Bio
SOLAR
Wind
0
1000
2000
3000
4000
5000
6000
Bio
SOLAR
Wind
* Source: Paving the way for the Mediterranean Solar Plan
Wind figures* for some Med countries at 2020
The penetration of RES in these countries will reach: 13% in power (17GW)
and 7% in energy (40TWh)
GW %
5
30
25
20
15
10
5
0

7. 28
18
16.3
15.6
7.6
5.8
4.4
3.6
0 5 10 15 20 25 30
Denmark
Portugal
Spain
Ireland
Germany
Greece
Sweden
UK
Netherlands
Austria
Wind production – top 10
[ % of total demand]
Denmark is ranking first while Portugal
and Spain are ranking 2nd and 3rd
62.4
46.9
29.1
21.7
16.1
6.9
6.8
6.5
5.3
4.3
4.0
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
China
United States
Germany
Spain
India
Italy
France
UK
Canada
Portugal
Denmark
Total wind installed power
top 10 [GW]
China and USA are leading
Spain is ranking 4th and Portugal 9th
20112011
World ranking for wind energy
7

8. Demand and wind power profiles in 2011
The wind in Portugal - introduction
8
Day of annual peak 9192 MW
Wind contribution 2 968 MW
24 Jan
9 192 MW
2968 MW
Maximum daily wind
contribution
13 Nov
3702 MW
Minimum daily wind
contribution
2 Jan
70% - 81 GWh
93%
4,6%
1,1% - 1,5 GWh

9. Wind power + other special producers
Often their contribution is greater than the national consumption
Green area – Wind generation and other special producers
(solar, cogeneration, biomass, small hydro generation)
Bold black line – Consumption
Black line – Consumption + Pumping
Yellow area – Import
Blue area – Hydro generation (Run-of-River)
White area – Thermal generation (natural gas)
Brown area – Thermal generation (coal)
Blue area – Hydro generation (Reservoir)
Daily load diagram. 28 Oct 2012
h
The wind in Portugal - introduction
9

10. Average growth in the last 15
yrs: 2.5%
75 % of the
energy
consumption on
or close to the
coast line
Area with
increase of load
density due
mainly to tourism
Load density distribution along
municipalities
Demand data
Load Diagram on the day of yearly
Peak Load
2010
2011
0
2000
4000
6000
8000
10000
0 8 16 24h
LOAD DIAGRAM ON THE DAY OF THE YEARLY PEAK
MW
2002
2002
2011 9192 MW
2010
TWh
The Portuguese electric system (1/8)
50
40
30
20
10
0
2003 . . . 2012
10

11. Generation (installed power – Jan 2013)
• Large Hydro 5.6 GW
• from which 1.0 GW of pumping
• CCGT (4) 3.8 GW
• Coal (2) 1.8 GW
• Gas-Oil OCGT (1) 165 MW
• Renewable with Special Status : RES-PRE
• Total about ~6.8 GW
• Wind 4450 MW
• Co-generation 1780 MW
• Small hydro 417 MW
• Photovoltaic 220 MW
Total in service: ~18.5 GW
Hydro
Thermal
1122 MW
1205 MW
647 MW
505 MW
254 MW
CCGT
990 MW
C
1180 MW
CCGT
1176 MW
CCGT
840 MW
CCGT
830 MW
C
580 MW
The Portuguese electric system (2/8)
January
2013
11

12. Very High Voltage Transmission Network
- main figures -
Power lines and Transformers
2011 2010 2011-10
LINE LENGTH (km) 8.371 8.049 322
400 kV 2.236 1.973 263
220 kV 3.492 3.467 25
150 kV 2.643 2.609 34
TRANSFORMERS (MVA) 33.777 30.205 3.572
Autotransformers
(400/220/150kV) 13.410 11.925 1.485
Transformers (EHV/60kV) 20.367 18.280 2.087
The Portuguese electric system (3/8)
12

13. Target for 2022: 9570 MW
Increment with respect to December 2010
≈ 5000 MW
Large Hydro Stations [MW]
Year 2010 Year 2022
Total Hydro 4 578 9 570
. . .with pumping 983 4 919
2550 MW
1240
MW1585
MW
1160
MW
510
MW
730 MW
610 MW
710 MW
2022 Target
2010 Installed Power
Installed Hydro
Power (MW)
2010-2022
500
1000
2000
Hydro growth 2010-2022
The Portuguese electric system (5/8)
13

14. Wind growth 2010-2020
• Installed Power in Dec 2010 ≈ 3860 MW
• On-shore power target for 2020 ≈ 6800 MW
• Off-shore power target for 2020 < 10 MW
2010
2020 Target
Installed Power
(MW)
Map of the current and 2020 installed power on wind
farms [MW]
The Portuguese electric system (6/8)
14

15. • Recent drop prices on Solar Photovoltaique
technologies, creates potentialities, basically in the south
region.
Greater
preference
on the South
Region
Source: National Development Plan PDIRT 2012-2022: Version for Public Consultation
Solar Radiation
Curves in Portugal
Solar
• More than 20 thousand of micro producters are
currently connected to the distribution network
(basically, PV instalations)
The Portuguese electric system (7/8)
15

16. Power
Sector
Regulator for Electricity and Gas -
ERSE
Ministry for Economy
Directorate for Energy & Geology
DGEG
Distribution System Operator –
DSO, presently in charge of EDP
Transmission System Operator –
TSO, presently in charge of REN
Traders
Consumers
The Energy Sector - organization
The Portuguese electric system (8/8)
Power
Producers
Special Regime
Producers - SRP
(RES + Some
cogeneration + SUR)
Ordinary Status
Producers – PRO
(Thermal + Large Hydro)
16

17. Year 2000 – Launch of a first identification of Wind Potential per geographical areas.
(Carried out by an independent external Consultant)
Year 2000/2001 - Execution of a first NDP oriented to RES incorporation for the next
6 years (also with an independent external Consultant). Initial goal of 3000MW !!
NDP for
RES
• Two time horizon targets – short and medium term
• Economical trade off between grid reinforcement and new amounts
of RES acceptable capacity
• Make available the allocable reception capacity by large areas
REN’s methodological approach for RES
integration (1/2)
17

18. Year 2002/2003 - Development of an innovative methodology to calculate the nodal
reception capacity for new generation by node (or in some cases by group of nodes).
This Table of Reception Capacities includes a shorter time horizon (next 2 years)
and a medium horizon (next 3-4 years)
This Table is updated and re-published every year
The NDP, functioning as an “umbrella” and a reference for the long term, is reviewed
every 2 or 3 years illustrating indicative amount of reception capacities by regions.
REN’s methodological approach for RES
integration (2/2)
18

19. Ministry + DGEG
• Define the policy, including future
national objectives for RES
• Issue the permits for new generator
connections
• Capacity at network node reserved
→“on queue”
Accepts
Contracts with
TSO or DSO
Capacity at
Network node
allocated
Gives up
Capacity at
network node
released
Promoters
Licensing procedures for RES promoters (1/3)
19

20. Key responsibilities for TSO & DSO
Transmission and
Distribution
Operators
• Reception of RES promoter requests via DGEG
As a rule
Installed Power > 50 MW connection to TSO
Installed Power < 50 MW connection to DSO
Special case
The DSO may request and justify that a Generator connection < 50MW is
more appropriate to TSO’s network: if agreed, can be accepted and vice-
versa.
• Alternative solutions for connections are studied
• Communicate to DGEG and Promoters the viable solutions
• An “optimization” process can follow with Promoter.
Licensing procedures for RES promoters (2/3)
20

21. Connection rules: Who pays/builds what
1. Wind generation, inner grid and substations
Constructed, paid by and remaining property of
the developer
2. Connection line
Paid by the developer but, once built, property
and maintenance will be in charge of TSO or DSO
(a very few exceptions exist on DSO side)
3. Connection Bay
Constructed by TSO or DSO and paid by developer
4. Transmission or Distribution internal
reinforcements
All in charge of TSO or DSO
Licensing procedures for RES promoters (3/3)
1 - Wind Power
station
2 – Connection line
3 -Transmission or
Distribution connection
point
4 – Transmission or
Distribution grid
21

22. April 3rd 2010
Example April 3rd 2010:
More than 90% load supplied by RES (Hydro+Wind)
High level of intermittence and uncertainty
Allowing the secure reception of greater
amounts of RES
R&DD projects. New simulation tools
SSP-RES
Hydro Run of river
Hydro Reservoir
Load curve
But how much, and where?
Require new reserve margins
Planning & Operational issues driven by RES (1/8)
22

23. • How to explore the complementarities among technologies and correlations ?
• Which is the actual capacity of the existing network ?
• Should we follow the same planning criteria and security rules, like the classical “n-
1” criteria ?
• When the network reception is limited, can we deny the connection of a power
plant on node A and not in node B ?
Research and deployment of new technical
skills.
Transparent and auditable procedures.
Planning & Operational issues driven by RES (2/8)
23

24. • Predictability & correlations (risk approach ?)
• Intermittency (scenario definition)
• Technical performance (e.g., FRTC)
• Controllability (e.g., surplus on low load)
• Merit order - Priority on renewable technologies !
• Why wind prior to HYDRO ?
RES behaviour & requirements
New tools.
Improvement in market and probabilistic
models.
Improvement of scenarios definition and its
methodology.
Planning & Operational issues driven by RES (3/8)
24

25. Example of SRP - RES surplus at night (6:15h -7:15h)
71% load supplied
by RES
Main topics/issues at night period
• Storage capabilities usage
• Invert the import/export situation
• Downward Reserve needs
Energia renovável: reserva operacional
Imp/Exp balance
Hydro Pump “game”
Planning & Operational issues driven by RES (4/8)
25
Daily load diagram 15 May 2011

26. December 17th 2009
Upward Reserve
Example of steep drop of RES-PRE
Wind
Run-of-river/damps
Planning & Operational issues driven by RES (5/8)
Need to regulate with fast
response: other power sources
provide operational reserves
(Hydro reserve)
Wind power output drop
greater than 80% in 8 hours
1
2
26

27. • Their Characterization (scenario definition)
• Correlations (scenario definition)
• New Loop Flows (voltage dips)
• New Loop Trends (RES growth in one area)
• New market opportunities – (changes on merit order)
• Technical issues, challenges, opportunities?
Enhanced team building with other grid operators.
New knowledge and expertise. New tools.
Confidentiality for data exchanged
Are there interferences with neighbouring countries?
Planning & Operational issues driven by RES (6/8)
27

28. Annual loop flow
The figure shows the annual loop flow
between Portugal and Spain, with zero
commercial trading.
Interconnections: Common benefits in security of supply, reserve margins and
reduction of losses
GWh
2008 1300
2009 2000
2010 1500
2011 2300
2012 2500
Planning & Operational issues driven by RES (7/8)
28

29. LEGEND:
100MW
100MW
LEGEND:
Wet and windy season - 2012 Dry and low wind – 2012
Planning & Operational issues driven by RES (8/8)
29

30. 1. Call for 2 blocks: 1000 and 400 MW (open to a further 20% increase each)
2. Management of wind parks by clusters (“local wind power dispatch centers”)
3. The local wind power dispatch centres should receive (re)active set-points from
TSO and supply its own wind forecast
4. Steady state reactive power control: tg phi within [-0.2, +0.2]
5. Wind curtailment (no-load periods; 50h/year, max)
6. Participation in the primary frequency control
wind turbine operation at 95% of Popt in previously requested periods (by TSO)
7. Define FRTC – Fault Ride Through Capability as a “minimum requirement” for
system security
Requirements for a 2006 Call
Call for a Wind Tender – a Portuguese example
30

31. List of operational risks*
The risks due to the difficulty for forecasting the wind production
R1 Mobilization of additional tertiary reserve is necessary
R2 Reduction of network transmission capacity or IPP wind power production
R3 Blackout or load shedding
Influence of wind generation in the system management
R4 Generation redispatch or change of network topologies more frequent
R5 Jeopardize the n-1 security
R6 Increase the reactive/voltage managements issues
R7 Tripping risk of many wind turbines facing voltage drops
Influence of wind generation over the short and long term reserves
R8 Need of more peak power to cover the peak periods
R9 Need of reanalysis of generation adequacy, favouring the storage systems
* According Medelec WG “Wind Integration”, Tripoli, March 2013
Main issues & risk analysis (1/5)
31

32. Risk matrices for the Portuguese and Tunisian systems*:
These two matrices highlight the differences between a system that already apply mitigation
methods to deal with high wind penetration and a system which don’t have that level of
penetration and don’t apply mitigation methods up till now. The implementation of a set of
mitigation methods will drive the risks to the lower levels.
R4, R7 R2 R1, R6, R8,
R9
R3, R5
Probability
Impact
Low Medium High
LowMediumHigh REN STEGSTEG
Probability
Low Medium High
Probability
Low Medium High
Impact
LowMediumHigh
Impact
LowMediumHigh
* According Medelec WG “Wind Integration”, Tripoli, March 2013
Main issues & risk analysis (2/5)
32

33. A large-scale wind penetration brings up these matters*:
Market:
• Reduction of the schedule timeframes
• Continuous intraday
• Reduction of the market prices
Operational reserves:
• Increasing needs (to “cover” the errors of the wind power forecast)
• Flexibles and quick-start generators
• Storage
• Wind power forecast tools
• Wind power monitoring (real time)
* According Medelec WG “Wind Integration”, Tripoli, March 2013
Main issues & risk analysis (3/5)
33

34. A large-scale wind penetration brings up these matters* (cont.):
Curtailment
• Legal basis to curtail wind power by TSOs
• Wind power monitoring and controllability (real time)
Network congestions
• Cross-border or internal congestions management
• Wind power monitoring (real time)
Wind farms behavior during network disturbances
• Reactive current injection during fault
• Fault Ride Through (FRT) capability
Voltage control / reactive power management
• High voltage problems (lack of generating units in operation with
automatic voltage regulation)
* According Medelec WG “Wind Integration”, Tripoli, March 2013
Main issues & risk analysis (4/5)
34

35. Relevant mitigation methods:
Problems Mitigation methods
Wind power
forecast errors
• Forecasting tools improvement
• Storage capacities
• Good production mix (flexible and with quick start turbines)
• Demand side response
Network
congestions
• Dynamic ratings (transmission lines) in real time operation;
• Transmission network equipment’s investments (reinforcement and use
of PST / FACTS)
• Redispatch
• Regulatory framework (behavior of Wind Energy Conversion similar to
the conventional generation)
Short and long-
term reserves
• Regulatory framework (incentives for the producer / agents)
• No existence of cap and floor limits in the market prices
* According Medelec WG “Wind Integration”, Tripoli, March 2013
Main issues & risk analysis (5/5)
35

36. Key issues to the “success” . . . so far !
• A good identification of the problems, preparing their solutions in
advance
• Launch joint projects with Portuguese Universities and R&D Centres
• Present and debate the issues with the Administration and other
stakeholders
• TSO and DSO have been empowered to negotiate connection solutions
with the power producer candidates
Final Remarks
36

37. Thank you very much for your attention
Workshopon“ExperiencesonWindFarmsProjects”
JoséMedeirosPinto
Beirut,9May2013