Tasmanian Frequency Standards Review Hydro Tasmania Perspective - - PowerPoint PPT Presentation

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Tasmanian Frequency Standards Review Hydro Tasmania Perspective - - PowerPoint PPT Presentation

Tasmanian Frequency Standards Review Hydro Tasmania Perspective June 2008 1 Assessment of Options Status quo (current standard) Gunns, Tamar Valley Power (TVP) unable to connect TVP proposed standard Imposes very onerous design


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1

Hydro Tasmania Perspective June 2008

Tasmanian Frequency Standards Review

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Assessment of Options

Status quo (current standard)

Gunns, Tamar Valley Power (TVP) unable to connect

TVP proposed standard

Imposes very onerous design and operational

requirements for Tasmania

Basslink import severely constrained Net decrease in supply with Bell Bay closure Basslink stranded in export Major investment required in new fast raise services (up to

$100 million)

Limited development of new wind in Tasmania

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Assessment Conclusions

Neither standard alone provides increased supplies

for Tasmania

TVP proposal decreases competition from Victoria

by constraining Basslink

TVP proposal results in tighter standard plus

increase in contingency size which causes significant increase in FCAS requirement and cost

Reliability Panel must take a broader view to find a package of measures which work and provide long term investment certainty

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Key Issues

Tighter standard

Increases FCAS requirements Impacts Basslink capability Increases system security risk (UFLS,OFGS,SPS) Add significant redesign cost (UFLS,OFGS,SPS)

Contingency Size

Not covered by NER Larger contingency exacerbates FCAS raise supply issues No dispatch co-optimisation Creates Basslink dispatch issues

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FCAS R6 Requirement

Tasmanian system

Demand (MW) 900 1000 1400 1800 Inertia (MWs) 4500 4600 7300 9700 47.5 Hz 95 90 67 47

144 MW Contingency 210 MW Contingency

48.0 Hz 126 117 82 65 47.5 Hz 225 211 132 109 48.0 Hz 307 291 160 129

Source: NEMMCO advice to RP 2008

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FCAS R6 Supply

FCAS (R6) trapezium for 1000MW Tasmanian system efficient dispatch

FCAS R6 capability Generation dispatched 1100 120 1000 80 Operating point Max R6 in dispatch Actual R6 available in bids

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FCAS Transport on Basslink

Maximum local raise required

50MW

Start of import constraint (=Total R6 required minus local supply)

Local raise 478MW (metered)

Basslink imports 0 to 478MW

No-go zones 0MW

Start of reversal constraint (=Total R6 required minus local supply)

Basslink exports 0 to 594MW

50MW

Maximum local raise required

No local requirement No local requirement No FCAS transfer 594MW (metered)

A B

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FCAS R6 capability Generation dispatched 1600 1500 Actual R6 in bids at

  • perating points

FCAS (R6) trapezium for 1000MW and 1500MW Tasmanian system efficient dispatch

Max R6 in dispatch

162 90 120 80

1000 1100

Tasmanian FCAS (Raise) requirements for reversal from export

50MW 0MW

Start of reversal constraint (=Total R6 required minus local supply)

Basslink exports 0 to 594MW

50MW 594MW (metered)

No FCAS transfer

No-go zones

New max Current max

Tasmanian Demand 1000 1400 Tasmanian Inertia 4600 7300 47.5Hz, 144MW loss 90 67 48.0Hz, 144MW loss 117 82 47.5Hz, 210MW loss 211 132 48.0Hz, 210MW loss 291 160

FCAS (R6) Table Tasmanian FCAS (Raise) requirements for generating unit contingency under import conditions

Local raise

Current max

478MW (metered) 50MW Start of import constraint (=Total R6 required minus local supply)

Basslink imports 0 to 478MW

No-go zones 0MW 50MW

No FCAS transfer New max

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What does all this mean?

Basslink imports reduced by up to 200MW Basslink stranded in export Net energy supply for Tasmania may decrease

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FCAS Raise Market in Tasmania

Small revenue stream for suppliers Relatively high cost of supply Generators provide and pay for service Costs can only be recovered around 10% of the time

when Basslink can’t transport cheap mainland FCAS R6

No market incentive for investment

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FCAS R6 Possible Supply Options

100 200 300 400 500 600 700 800 900 G

  • v

e r n

  • r

I m p r

  • v

e m e n t s D e m a n d R e s p

  • n

s e L e a d A c i d B a t t e r y F l y w h e e l K i n e t i c c

  • u

p l i n g V R B S u p e r c a p a c i t

  • r

s D i e s e l U P S

? $000 /MW

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New Zealand Experience

$2bn energy & $50-100m FCAS markets Costs and additional penalties (non-compliance) are

attributed to the users of FCAS

FCAS is provided by generators and interruptible

loads (around 50/50 split)

Co-optimisation of largest unit occurs as a market

  • utcome

UFLS is used for multiple contingency events;

purchased similar to FCAS

NZ has different features and hence different

standards on each island

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Summary

Issues

Tighter standard and larger contingency will cause severe

R6 supply problems and operational problems

Increased reliability risk Increased security risk

  • Wind development in Tasmania will be constrained

Hydro Tasmania Proposal

Maintain current frequency standard Limit the contingency size to 144MW Innovative solution to allow Gunns and Tamar Valley

Power to connect