NYISO Grid in Transition Study
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NYISO Grid in Transition Study DETAILED ASSUMPTIONS AND MODELING DESCRIPTION PRESENTED TO NYISO ICAP/MIWG/PRLWG STAKEHOLDERS PRESENTED BY Roger Lueken Samuel A. Newell Jurgen Weiss Jill Moraski Stephanie Ross March 30, 2020 Copyright © 2020 The Brattle Group, Inc.
Disclaimer Thi s re po rt w as pre pare d by The B rattl e Group for NYIS O’s e x cl usi ve use ; i t doe s not re pre se nt i nve stme nt advi ce , and t he re are no thi rd pa rty be ne fi ci ari e s. The Br attl e G roup doe s not ac ce pt any l i abi l i ty for any l os se s s uffe re d, whe the r di re c t or con se que nti al , i n re spe ct of the conte nts of thi s re port or any a cti ons t ake n o r de ci si ons made as a con se que nce the re of. If you are not N YISO, or a re ci pi e nt au thori ze d by N YISO and The Br attl e Gr oup to a c ce ss thi s re por t, your re vi e w sh al l be on a non-re l i ance basi s onl y. The anal yse s and m arke t ove rvi e w pre se nte d he re i n are ne ce ss ari l y b ase d on assu mpti ons wi th re spe ct to c ondi ti ons whi ch may e x i st o r e ve nts whi ch m ay oc cur i n the future . Pl e ase app re ci ate that ac tual futu re re sul ts may di ffe r, pe rhaps m ate ri al l y, from those i ndi c ate d. It i s al so i mport ant to a cknowl e dge tha t the me th odol ogi e s use d t o de vi se The B rattl e Group’s an al yse s and marke t ove rvi e w si mpl i fy and may not ac cur ate l y re fl e ct the re l ati ons hi p be twe e n assu mpti ons and outcome s. The Brattl e G roup doe s not m ake , no r i nte nds t o make , n or shoul d N YISO or any o the r party i n re ce i pt of thi s re port i nfe r, any re pre se ntati on wi th re spe ct t o the l i ke l i hood of any future outcome . The anal yse s and m arke t ove rvi e w are v al i d onl y for the e x pl i ci t purp ose for whi ch the y we re pre pare d and as of the d ate of thi s re por t. Any de ci si ons m ade i n conne cti on wi th thi s re po rt or the subje ct m atte r he re of, o r use of any i nform ati on contai ne d i n thi s re p ort, are the sol e re sponsi bi l i ty of the re ade r. brattle.com | 2
Introduction Agenda – Introduction – Regulations, Policies, and Market Design Assumptions – Supply Assumptions – Demand Assumptions – Transmission Assumptions – Modeling Approaches brattle.com | 3 See Disclaimer on Slide 2
Introduction Project purpose and scope NYISO has retained Brattle to develop simulations of NYISO markets through 2040 to inform the Grid in Transition effort. – New York has established aggressive clean energy and decarbonization mandates, codified in the Climate Leadership and Community Protection Act (CLCPA). – NYISO’s Grid in Transition effort seeks to understand the reliability and market implications of the State’s plans to transition to clean energy sources. – NYISO has retained Brattle to simulate NYISO market operations and investment through 2040 to inform NYISO staff and stakeholders on market evolution. Study design makes several simplifying assumptions, such as: – Zonal, “pipe and bubble” transmission topology – Stylized representation of generators • Aggregated generators by zones and types • Economic additions and retirements in continuous increments, not “lumpy” – Implementing current market rules and policies. brattle.com | 4 See Disclaimer on Slide 2
Introduction Project key questions to address – How many and what types of renewable resources and storage will be needed to achieve the CLCPA standards? – What types of flexible resources and storage will be needed to match variable renewable output and load? – What is the future of current New York generation (e.g., nuclear and gas)? – How might electrification affect market operations and investments? – What is the role of a flexible and market-engaged demand side? brattle.com | 5 See Disclaimer on Slide 2
Introduction Purpose of this presentation This presentation is a continuation of the March 6 MIWG Presentation and describes the key assumptions and modeling decisions to be used in the Grid in Transition Study – Modeling the New York power system through 2040 requires informed assumptions regarding regulations, market design, supply, demand, and transmission – This presentation outlines the initial assumptions Brattle has developed in conjunction with NYISO – The presentation also outlines initial proposals for key modeling decisions, including: • How to select and weigh representative days • How to determine the UCAP value of wind, solar, and storage at high deployment levels • How to model new supply technologies such as flexible load and renewable natural gas We are requesting stakeholder feedback on these assumptions and modeling decisions brattle.com | 6 See Disclaimer on Slide 2
Introduction to GridSIM GridSIM model framework Inputs GridSIM Outputs Supply Optimization Annual Investments Existing resources Fuel prices Engine and Retirements Investment/fixed costs Variable costs Objective Function Hourly Operations Demand Minimize NPV of Investment & Operational Costs Representative day hourly System and demand Capacity needs Customer Costs Transmission Constraints Supplier Revenues Zonal limits Market Design and Co-Optimized Intertie limits Operations • Capacity Emissions and Clean Regulations, Policies, • Energy Energy Additions Market Design • Ancillary Services Regulatory & Policy Constraints Capacity market Carbon pricing Resource Operational Constraints Market Prices Transmission Constraints Procurement mandates brattle.com | 7 See Disclaimer on Slide 2
Regulations, Policies, and Market Design Assumptions brattle.com | 8 See Disclaimer on Slide 2
Regulations, Policies, and Market Design Assumptions Modeled clean energy policies Description of Key Policies Policy Timeline • Renewable generation: 70% of NY annual electricity supplied from renewables (solar, wind, hydro) by 2030 2009 RGGI: First control period • 100% zero emissions by 2040 • Solar: 6,000 MW distributed solar by 2025 CLCPA • Offshore wind: 9,000 MW by 2035 2016 ZEC: Program in effect • Storage: 3,000 MW by 2030 • Economy-wide emissions: 85% reduction by 2050 and 40% reduction by 2030 from 1990 levels Solar: 6,000 MW mandate 2025 NOX Rule: In full effect • Northeast regional cap-and-trade program RGGI • Avg. 2019 price: $5.4/ton; expected to reach $12.6 by 2030 2029 ZEC: Program expires • Zero emission credit payments to New York nuclear plants CLCPA: 70% renewable electricity ZEC Program 2030 • Program expires March 2029 Storage: 3,000 MW mandate • DEC rule to reduce NOX emissions from peakers 2035 OSW: 9,000 MW mandate DEC NOX rule • Peakers built pre-1986 will most likely retire instead of retrofit to meet emissions requirements (this assumption 2040 CLCPA: 100% zero emissions may be refined based on Generators’ compliance plans) electricity 2050 CLCPA: 85% NY economy-wide Sources and Notes: RGGI Auction Allowance Price and Volumes Results decarbonization New York Public Service Commission Order Adopting a Clean Energy Standard. August 1, 2016 New York DEC Adopted Subpart 227-3 New York Senate Bill S6599 brattle.com | 9 See Disclaimer on Slide 2
Regulations, Policies, and Market Design Assumptions 70% Renewable Portfolio Standard Modeled Annual RPS Requirement % of Load Assume RPS target remains at 70% after 2030 Assume linear growth between 2020 and 2030 70% target Eligible renewable technologies: – Wind (onshore & offshore) – Solar (utility scale & BTM) – Hydro Sources and Notes: New York Senate Bill S6599 brattle.com | 10 See Disclaimer on Slide 2
Regulations, Policies, and Market Design Assumptions 100% zero emissions mandate Eligible “zero emissions” generation Modeled Annual Zero Emissions technologies Requirement – Renewables % of load – Nuclear – Renewable natural gas Interpretation of mandate: Net annual carbon emissions must equal zero – Allows some emissions from NY generators or imports Assume 70% zero carbon requirement in 2030, – But all emissions must be offset ton-for-ton consistent with 70% RPS by exports that reduce emissions in neighboring systems Assume intermediate carbon reduction targets in 2030-40, although not specified in the CLCPA Sources and Notes: New York Senate Bill S6599 brattle.com | 11 See Disclaimer on Slide 2
Regulations, Policies, and Market Design Assumptions Technology-specific mandates We model the technology-specific mandates of the CLCPA, with intermediate targets from multiple sources (more may be economically built to satisfy other constraints). Annual Installed Capacity Requirement (MW) Offshore Wind 3,000 MW by 2023 Distributed Solar NYSERDA Strategic 1,500 MW by 2025 Outlook 2020-2023 NYISO 2019 Grid in Transition Report Energy Storage 2,400 MW by 2030 NYSERDA Strategic Outlook 2020-2023 Sources and Notes: New York Senate Bill S6599 Reliability and Market Considerations for a Grid in Transition. NYISO. May 2019 Toward a Clean Energy Future: A Strategic Outlook 2020-2023. NYSERDA. brattle.com | 12 See Disclaimer on Slide 2
Regulations, Policies, and Market Design Assumptions ICAP market ICAP market modeled consistent with current design, including nested capacity zones, sloped demand curves, and summer/winter clearing. 2020 Summer Capacity Demand Curves Price ($/UCAP MW-yr) J K NYCA G-J NYCA G-J J K Sources and Notes: NYISO ICAP/UCAP Translation of the Demand Curve – Summer 2018 Capability Period Quantity (UCAP MW) NYISO ICAP/UCAP Translation of the Demand Curve – Winter 2018-2019 Capability Period brattle.com | 13 See DisclaimerDemand on Slide 2curve represents modeled 2020 demand curve, derived from 2018 demand curve parameters and adjusted to reflect 2020 demand and resource costs
Regulations, Policies, and Market Design Assumptions Ancillary service requirement – We model 3 A/S products: 10-min reserves, 30-min reserves, regulation – We specify separate system-wide and Downstate (EAST/SENY) requirements – Quantities and shortage pricing consistent with NYISO guidance Simplified Reserve Zones Model Reserve Assumptions NYCA EAST/SENY (G-K) Shortage Shortage East/SENY Quantity Price Quantity Price Product (MW) ($/MWh) (MW) ($/MWh) 10-Minute NYCA Reserves 1,310 $750 1,200 $775 30-Minute Reserves 1,310 $750 100 $500 Regulation 225 $775 N/A N/A Sources and Notes: 30 minute reserve requirement reflects incremental requirement from 10 minute reserves. Reserve requirements derived from below sources and discussions with NYISO: NYISO Locational Reserve Requirements Establishing Zone J Operating Reserves. NYISO. January 2019. brattle.com | 14 See Disclaimer on Slide 2
Supply Assumptions brattle.com | 15 See Disclaimer on Slide 2
Supply Assumptions Existing supply resources We model all existing generators in New York, consistent with the 2019 Gold Book and other sources of data. 2018 Installed Capacity – 2019 Gold Book primary source of MW generator data 50,000 – Most generators aggregated by zone and 40,000 Wind Hydro & type (e.g., gas CC & CT, nuclear, OSW) pumped storage Capacity Imports 30,000 – Subset of generators modeled Bio independently due to unique 20,000 characteristics Gas – Generator characteristics (e.g., heat rate, 10,000 Oil Coal VOM) developed w/ NYISO input Nuclear brattle.com | 16 See Disclaimer on Slide 2
Supply Assumptions Planned builds and retirements We model all planned additions and retirements Cumulative Planned Capacity Changes 2020-2030 of generators including: Change in Capacity (MW) – Downstate peaker (gas CT and oil/kerosene) NOx rule retirements (2025): • Downstate peakers built before 1986 retire Gas • All frame units built after 1986 retire • Aero-derivative units built after 1986 may choose Coal to economically retrofit • These assumptions may be refined based on Oil Generators’ compliance plans – Indian Point nuclear retirement (2020-21) Nuclear – Remaining coal retirements (2020) – Planned gas build is Cricket Valley (2020) Sources and Notes: ABB Velocity Suite. NOx retirement assumptions derived from NYDEC NOx Revised Regulatory Impact Statement Summary and conversations with NYISO NYISO Grid in Transition Report. 2019 brattle.com | 17 See Disclaimer on Slide 2
Supply Assumptions Fuel price assumptions Gas Price Forecasts Oil Price Forecasts 2019$/MMBtu 2019$/MMBtu Iroquois Zone 2 (Zones F-I Existing Units) FO2 Zone K Zone J TETCO M3 (Zones F-I New Units) Zone A-E FO6 Sources and Notes: Gas price forecast based on blend of NYMEX futures and EIA growth rates Oil prices based on 2019 NYMEX futures; taken from ABB Velocity Suite brattle.com | 18 See Disclaimer on Slide 2
Supply Assumptions New resources Supply Resource Description • Combined cycles (CCs) and simple-cycle combustion turbines (CTs) Gas-fired • Can burn natural gas or more expensive, zero emissions renewable natural generators gas • Model battery storage with two-hour and four-hour durations • Long-duration storage (e.g., flow batteries or thermal) may be considered in Storage a 1-off “representative week” sensitivity • Seasonal storage (e.g., via HQ) not considered, other than via RNG Small modular • Model as producing zero emissions (but not renewable) energy nuclear • Model controllable EV charging and HVAC loads • Amount of participation assumed (not endogenously determined) Load flexibility • Modeling flexibility over 24-hour period. 1-off “representative week” sensitivity may test if value increases over a longer horizon Renewable • Assume supply from interstate pipelines at a price of $20-$30/MMBtu natural gas (RNG) • Model potential in-state RNG production from excess renewable energy brattle.com | 19 See Disclaimer on Slide 2
Supply Assumptions New generators and storage – Natural gas generators can be fueled with 2019 Upstate Annual cost decline installed cost rate (real) zero carbon renewable natural gas $/kW 2020 – 2040 – Offshore wind connected to either zone J or K Natural Gas – Utility-scale PV and onshore wind cannot be Combined cycle $1,800 -1% built in zones J or K Combustion turbine $900 -1% Battery Storage – Sources of installed cost: 2 hour duration $700 -4% • Natural gas: 2019 costs from DCR, cost decline 4 hour duration $1,400 -4% rate from 2019 NREL ATB Solar PV • Wind, solar, storage: 2019 costs and cost decline rate from 2019 NREL ATB Utility scale $1,100 -2% • Small Modular Nuclear: 2019 costs from EIA Behind the meter $2,700 -5% – Downstate costs higher, per EIA and DCR Wind Offshore $4,500 -3% – Detailed assumptions in appendix (technical Onshore $1,700 -2% parameters, variable and fixed costs) Small Modular Nuclear $6,200 -1% Sources and Notes: Includes interconnection and network upgrade costs. NREL 2019 ATB, NYISO DCR Model 2019-2020 EIA Capital Cost and Performance Characteristic Estimates for Utility Scale Electric Power Generating Technologies, 2020 brattle.com | 20 See Disclaimer on Slide 2
Supply Assumptions New generators and storage costs over time Investment Cost (2019$/kW) SMR Offshore Wind Gas CC Solar BTM Onshore Wind Solar Gas CT Storage (4hr) Storage (2hr) Sources and Notes: NREL 2019 ATB NYISO DCR Model 2019-2020 EIA Capital Cost and Performance Characteristic Estimates for Utility Scale Electric Power Generating Technologies, 2020 ‘ Costs do not include network upgrades or interconnection costs, with the exception of offshore wind brattle.com | 21 See Disclaimer on Slide 2
Demand Assumptions brattle.com | 22 See Disclaimer on Slide 2
Demand Assumptions Load forecasts We will model two load growth cases, per Climate Change Phase I study. – Reference Case: Gold Book assumptions plus 0.7 oF warming per decade – CLCPA Case: Aggressive electrification and energy efficiency Gross Load Forecast Components of 2040 Gross Load Annual Peak (GW) Annual Energy (TWh) Reference CLCPA Case Case Base load (excluding 156 175 energy efficiency) EV adoption 13 16 Annual Energy (TWh) Additional -- 76 electrification Energy efficiency -- -46 Total 2040 gross load 169 221 Sources and Notes: Load forecasts from Climate Change and Resilience Study - Phase I, ICAP WG December 17, 2019. brattle.com | 23 See Disclaimer on Slide 2 Gross load forecasts exclude BTM solar generation.
Demand Assumptions Load shapes Electrification and climate change are forecast to affect load shapes. Hourly Load (MW) NY becomes winter peaking due to heating electrification Summer peaks rise with electrification and climate change Increased daily load variation due in part to EV charging 2040 CLCPA 2020 CLCPA Sources and Notes: brattle.com | 24 See Disclaimer on Slide 2 Load forecasts from Climate Change and Resilience Study - Phase I, ICAP WG December 17, 2019.
Transmission Assumptions brattle.com | 25 See Disclaimer on Slide 2
Transmission Assumptions Transmission topology In conjunction with NYISO, Brattle developed a 5-zone “pipe-and-bubble” representation of the New York grid. F 50% NE-NY 3600 ISO HQ Central Capital- -NE East HUDV 4600 Group 2 3600 5500 6500 50% NE-NY 5500 Group 1 4600 ON A-E M arcy South GHI CSC & 1385 We are considering a one- Northport 1900 1900 30 off sensitivity on benefits of increased transmission. 2000 Y49/Y50 Sprain Brook- 32% PJM -NY 68% PJM -NY Dunw oode South Group 3 Interface 3900 0 1200 Interface Group HTP & VFT J 300/300 Limits 300 900 Jamaica K Neptune Ties (J-K) 0 PJM Off Shore Wind brattle.com | 26 See Disclaimer on Slide 2
Transmission Assumptions Imports and exports We model New York interties consistent with historical flows, but reflect some ability of neighboring systems to help balance NY renewable generation. Treatment of New York Interties Hydro Quebec modeled as flexible – Reflects HQ’s hydro storage potential F 50% NE-NY ISO -NE – In all hours, allow flows up to line limit HQ 50% NE-NY (1500 MW import, 1000 MW export) CSC & 1385 Others modeled as less flexible GHI Northport – Reflects similar balancing challenges in ON A-E 68% PJM-NY neighboring systems – Lock hourly exports at 2018 levels 32% – Hourly imports allowed to flex between PJM-NY J K zero and 2018 levels (e.g. model can HTP & VFT reduce imports if uneconomic) PJM Neptune Off Shore Wind brattle.com | 27 See Disclaimer on Slide 2
Modeling Approaches brattle.com | 28 See Disclaimer on Slide 2
Modeling Approaches Selection of representative days for 2022 We select and weight representative days for each year to reflect NYISO’s forecasted hourly net demand. Here we show 2022 as an example. Representative Days in 2022 Identify 10 days to represent a year’s variety of conditions CLCPA Load Forecast – 10 stand-alone days can effectively represent a full year if Day Weight selected and weighted carefully Jul 20 1 Summer – We validate the representative days by comparing the resulting peak days net load duration curve to that of the 8760-hours forecast Jul 8 10 5 Extreme Jan 13 1 – Modeling stand-alone days increases computational efficiency Days Winter peak days and flexibility Feb 10 10 Minimum – Sequential days may be considered in a sensitivity analysis Apr 24 1 load day Jul 28 39 Selection process Mar 3 78 – Days selected based on net load to ensure extreme conditions 5 General Oct 1 51 are captured (e.g., high load and low renewable generation) Days Oct 13 90 – Pre-select summer peak, winter peak, and minimum load days Dec 21 84 – Remaining days selected and weighted with a k-means clustering algorithm, which clusters similar days together and selects best representative brattle.com | 29 See Disclaimer on Slide 2
Modeling Approaches Representative days across years Each year, we select and weight new representative days to capture evolving net load shapes. Net load duration curves 2020, 2030, 2040 Net Load (GW) Net load shapes evolve from 2020 to Actual forecast 2040 with electrification and renewables Modeled forecast 2040 growth Close match between – Electrification assumptions from NYISO modeled load duration curve load forecasts and that of actual forecast – Renewable growth forecast with 2020 preliminary GridSIM runs 2030 This approach enables close representation of net load in all years Net load lower in 2030 than 2020 due to CLCPA renewable additions Hours in Year brattle.com | 30 See Disclaimer on Slide 2
Modeling Approaches Modeling the declining capacity value of wind, solar, and storage We have developed an approach to approximate the marginal UCAP value of wind, solar, and storage as more are deployed. High-level approach 1. For the technology in question, vary the amount installed, holding all else equal 2. Assess the capacity value of the last MW added (see next slide) 3. Quantify relationship between penetration and marginal capacity value 4. This relationship is an input into GridSIM This simplified approach does not replace a full probabilistic effective load carrying capability (ELCC) study and may overstate capacity value – Does not account for variability in conditions across many years, like GE MARS – Does not account for impacts of internal transmission constraints brattle.com | 31 See Disclaimer on Slide 2
Modeling Approaches Modeling the declining capacity value of wind, solar, and storage Supply Resource Concept Methodology 1. Across 8760 hours, identify 20-100 top NYCA net load hours Generation of new wind and solar additions is correlated with previously 2. Calculate wind UCAP value as avg. output in those hours Wind and deployed resources. 3. Repeatedly change the MW of wind installed, holding all Solar else equal New resources therefore provide less Resources marginal capacity value than 4. Each time, find top 100 net load hours and the avg. output previously added resources. 5. Repeat process for offshore wind and solar; for each one, hold other variable technologies at likely 2030 levels Energy storage can change the 1. Across 8760 hours, analyze MW of storage required to “shape” of peak net load periods, reduce NYCA net peak load by 1 MW flattening and elongating peak 2. Calculate UCAP value as 1 MW peak reduction / MW Storage periods. storage required Resources As more storage is deployed, longer 3. Increase amount of storage assumed, holding all else equal. Simulate effect of increased storage on net peak load discharge durations are therefore required to provide the same capacity 4. Repeat steps 1 – 3 across many storage deployment levels value. 5. Repeat process for storage of different durations brattle.com | 32 See Disclaimer on Slide 2
Modeling Approaches Capacity value of wind and solar Marginal Capacity Value of Solar and Wind Summer Marginal Capacity Value Winter Marginal Capacity Value Offshore Wind Offshore Wind Solar Onshore Wind Onshore Solar Wind Installed Capacity (MW) Installed Capacity (MW) brattle.com | 33 See Disclaimer on Slide 2
Modeling Approaches Capacity value of storage Marginal Capacity Value of Energy Storage Marginal Capacity Value 8-hr 6-hr 4-hr 2-hr 1-hr brattle.com | 34 See Disclaimer on Slide 2
Modeling Approaches Modeling flexible load – Flexible loads can adjust their consumption in response to market prices – We model a subset of electric vehicles and HVAC systems as flexible Example of Electric Vehicle Flexibility Load (MW) – Treatment of flexible loads in GridSIM • In any hour, loads can flex their consumption Baseline EV (increase or decrease) from a baseline level charging • Flexibility varies by technology, hour, and season • Total flex is net-zero on a daily basis Shifted EV • Unlike battery storage, no efficiency losses charging Decrease – We will make assumptions regarding: • Fraction of EV and HVAC load that is flexible • Degree of flexibility in any given hour Increase • Reservation price (e.g. expected profits) required for a load to flex its consumption Hours in Day – We will not capture load shifting across days, except possibly as one-off sensitivity brattle.com | 35 See Disclaimer on Slide 2
Modeling Approaches Renewable natural gas (RNG) We consider RNG as a potential future zero emissions technology. – In this context, RNG refers to gas created via electrolysis + methanation • Can also refer to methane from agriculture or landfills – Producing RNG is a multi-step process • Electrolysis utilizes grid electricity (likely curtailed renewables) to create hydrogen • Direct air capture uses electricity and heat to capture CO2 from ambient air • Methanation combines hydrogen and air-captured CO2 to create methane, or RNG – Burning RNG emits no net carbon emissions • Ignoring any release of methane in production and transport, which we will assume can be controlled to be small – Increasingly viewed as an important part of future zero-carbon system brattle.com | 36 See Disclaimer on Slide 2
Modeling Approaches Modeling RNG in GridSIM We dynamically model RNG supply, production, and consumption. – Assume RNG supply is available via the interstate Treatment of RNG in GridSIM gas pipeline system Modeled dynamically – Assume some RNG produced in-state by using Renewable in GridSIM renewable generation that would otherwise be generation Assumed curtailed – Assume all gas-fired plants can consume either In-state RNG Interstate RNG or natural gas. As carbon constraints tighten, production pipeline supply plants become willing to burn RNG – Assume an RNG market price (~$20 - $30/MMBtu), Market Price informed by the costs of production and with a buy/sell price spread to account for transmission RNG consumption and pipeline charges in gas plants – Will test sensitivities since significant uncertainty about production cost of RNG brattle.com | 37 See Disclaimer on Slide 2
Stakeholder Input We are requesting stakeholder feedback on these assumptions and modeling decisions We would also like to hear stakeholder interests in the different sensitivities, including those discussed today: – 1-off “representative week” sensitivity • Would capture Long-duration storage (e.g. flow batteries or thermal) • Would test if value of load flexibility increases over a longer time frame (may capture load shifting over multiple days) – One-off sensitivity on benefits of increased transmission What other sensitivities should we consider? brattle.com | 38 See Disclaimer on Slide 2
Appendix brattle.com | 39 See Disclaimer on Slide 2
Appendix Detailed generator assumptions Type New/Existing EFORd Heat Rate Minimum Generation Level Startup Cost Variable O&M Fixed O&M (%) (MMBTU/MWh) (% of ICAP) $/MW-start ($/MWh) ($/kW-year) Biogen Existing 5% 9.7 - 10.8 31% $21 $3.00 $111 - $149 Gas CC Existing 6% 6.8 - 7.6 47% $11 - $18 $1.81 $40 - $76 Gas CT Existing 6% 10.6 - 16.2 15% $1 - $2 $5.60 $21 - $51 Gas ST Existing 6% 10.3 - 10.7 31% $24 - $41 $8.50 $66 - $140 Nuclear Existing 15% 10.6 - 10.9 100% $0 $2.41 $0 Oil CT Existing 17% 14.3 - 14.3 15% $12 $5.60 $33 - $52 Oil ST Existing 17% 10.6 - 10.6 31% $90 $8.50 $66 Pumped Storage Existing 4% 0 0% $0 $9.00 $32 Solar Existing 0% 0 0% $0 $0.00 $17 Solar - BTM Existing 0% 0 0% $0 $0.00 $21 - $44 Storage Existing 0% 0 0% $0 $5.00 $23 Wind - Offshore Existing 0% 0 0% $0 $0.00 $0 Wind - Onshore Existing 0% 0 0% $0 $0.00 $43 - $52 Hydro Existing 0% 0 0% $0 $0.00 $30 - $37 Gas CC New 6% 6.8 47% $11 - $18 $1.81 $194 - $367 Gas CT New 6% 10.3 40% $1 - $2 $0.76 $104 - $180 Solar New 0% 0 0% $0 $0.00 $129 - $143 Solar - BTM New 0% 0 0% $0 $0.00 $77 - $321 Storage New 0% 0 0% $0 $5.00 $125 - $326 Wind - Offshore New 0% 0 0% $0 $0.00 $630 Wind - Onshore New 0% 0 0% $0 $0.00 $207 Sources and Notes: NYISO Grid in Transition Report 2019 NREL 2019 ATB NREL Power Plant Cycling Costs Variable O&M Costs for storage and pumped storage resources reflect efficiency losses brattle.com | 40 See Disclaimer on Slide 2
Appendix Gas hub assumptions We map generators to a blend of hubs, with input from NYISO. Fuel Blend Zone Existing/New Dominion Iroquois Iroquois Transco Dawn TETCO-M3 South Waddington Zone 2 Zone 6 Zone A-E Existing 70% 20% 10% 0% 0% 0% Zone F Existing 0% 0% 0% 100% 0% 0% Zone GHI Existing 0% 0% 0% 100% 0% 0% Zone J Existing 0% 0% 0% 0% 5% 95% Zone K Existing 0% 0% 0% 65% 0% 35% Zone A-E New 70% 20% 10% 0% 0% 0% Zone F New 0% 0% 0% 0% 100% 0% Zone GHI New 0% 0% 0% 0% 100% 0% Zone J New 0% 0% 0% 0% 5% 95% Zone K New 0% 0% 0% 65% 0% 35% brattle.com | 41 See Disclaimer on Slide 2
Presented By Sam Newell Jurgen Weiss Roger Lueken Principal, Boston Principal, Boston Senior Associate, Washington, D.C. +1.617.234.5725 +1.617.234.5739 +1.202.955.5050 Sam.Newell@brattle.com Jurgen.Weiss@brattle.com Roger.Lueken@brattle.com The views expressed in this presentation are strictly those of the presenter(s) and do not necessarily state or reflect the views of The Brattle Group, Inc. or its clients. brattle.com | 42 See Disclaimer on Slide 2
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