December 24, 2014
Conference Paper

Evaluation of Production Cost Savings from Consolidation of Balancing Authorities in the US Western Interconnection under High Wind and Solar Penetration

Abstract

This paper introduces a comprehensive analysis to quantify the potential savings in production cost due to consolidation of 32 US western interconnection Balancing Authorities (BAs). Three simulation scenarios are developed: current Western Electricity Coordinating Council (WECC) BAs structure, full copper-sheet consolidation, and full consolidation with transmission congestion considered. The study uses WECC Transmission Expansion Planning Policy Committee (TEPPC) model that was developed for the year 2020. The model assumes 8% wind and 3% solar energy penetration as percentage of total WECC demand in 2020. Sensitivity analyses are carried out to assess the impact of transmission hurdle rates between WECC BAs on potential benefits. The study shows savings that ranges from $400 Million (2.4% of total one year production cost) to $600 Million (3.2%) per year in thermal units production cost due to consolidation can be achieved. The copper sheet consolidation scenario shows an extra savings of $240 Million (1.4%) per year.

Revised: February 25, 2015 | Published: December 24, 2014

Citation

Nguyen T.B., N.A. Samaan, and C. Jin. 2014. Evaluation of Production Cost Savings from Consolidation of Balancing Authorities in the US Western Interconnection under High Wind and Solar Penetration. In Proceedings of the 2nd IEEE Conference on Technologies for Sustainability (SusTech), July 24-26, 2014, Portland, Oregon, 9-14. Piscataway, New Jersey:IEEE. PNNL-SA-99913. doi:10.1109/SusTech.2014.7046210