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Chicken Little and the "Crisis" of Grid Reliability

Arno Harris, Recurrent Energy
March 01, 2013  |  22 Comments

The Wall Street Journal published an alarmist piece yesterday depicting California's electrical grid as the victim of a 'looming crisis' brought on by the state's 'growing reliance' on wind and solar.

While the success of wind and solar certainly raises new issues in terms of how to plan and operate the future electrical grid, the article overstated the severity of the problem California currently faces. Worse, it sensationalized an issue in a way that offers little real insight into the challenges or potential solutions.

Before we get into that, let’s first just look at the facts in California. What better resource to turn to than the California Independent System Operator (CAISO) website. Here we find a snapshot of the state’s electrical load and resources for 27 Feb 2013: 

View larger version

What does this tell us? California’s daytime load today peaked at just over 27 gigawatts, followed by the evening load peak of around 29.5 gigawatts. Minimum load never went lower than 20 gigawatts. Meanwhile CAISO had between 32-38 gigawatts of generating resources available during that period to meet that demand.  

Now let’s look at what role renewables played in the state during the same period:

View larger version

Solar was the highest contributor from the renewables camp today, contributing just over 1.5 gigawatts of peak output. Altogether if you add up the other renewable resources, they maxed out at just under 3.5 gigawatts. But that includes 920 MW of geothermal which you can see is almost rock steady—plus 300 MW of hydro which is 100 percent dispatchable.

So the real ‘intermittent’ supply today maxed out at about 2.3 gigawatts. That’s less than 10 percent of peak daytime load and less than 8 percent of the maximum load. Note that the intermittent supply barely crosses over 10 percent of minimum demand of 20 gigawatts and CAISO had way more resources available than it needed to meet the peak.  

Clearly California is not ‘overly reliant’ on wind and solar and this is clearly not a situation ‘out of control.’ In fact it looks very much in control — and it looks very much like there’s more capacity to absorb intermittent resources. 

Just for perspective, let’s compare California to Germany where they really do have high penetration of solar and wind relative to load. Below are graphs showing various power sources contribution to meet load for two different weeks in 2012. The upper graph shows a period in January when wind supplied over 40 percent of Germany’s power needs. The lower graph shows a period in May when solar provided about 40 percent of Germany’s power needs. Guess what. Germany didn’t fall of the map and didn’t experience major blackouts.

View larger version

How does Germany make it work? By combining intermittent and dispatchable resources in a way that reflects their features and strengths.  

They use baseload resources like nuclear and large gas- or coal-fired turbines to meet the predictable and consistent load at the bottom of the chart. Next they let wind and solar generate whatever they can as the wind blows and the sun shines — both of which are lot more reliable than they sound and can be accurately forecasted a day or two in advance. They then fill the remaining ups and downs with highly dispatchable load-following resources like hydro and gas-fired peakers. And they maintain a prudent amount of dispatchable capacity in reserve in case load rises or intermittent resources fall off.

It’s not magic — it’s actually pretty logical and straightforward. And the benefit Germany gets is tremendous: a high proportion of 100 percent clean electricity with solid reliability.

To be fair, California’s grid and operating topology are a lot different than Germany’s. A more complete analysis has to look at operating issues year round. And the issues can get highly complex when you look at isolated segments of the grid. Currently there are big issues in the western Los Angeles basin as a result of the loss of the San Onofrio Nuclear Generating Station and legal issues related to contracting existing gas resources to fill the gap.

However, what is clear both from the California and Germany examples above is that there's strong evidence the technical capabilities exist to enable California can absorb a lot more renewables without threateaning overall reliability.

The Conversation About Reliability We Should Be Having

The last thing we need is an alarmist, sensationalized ‘chicken little’ conversation about the reliability issue. What we do need to have is a pragmatic, constructive conversation about grid reliability in California and the implications for the rest of the nation.

An increasing number of experts believe that the state is actually overbuilding the amount of gas-fired resources it needs in an attempt to ‘over-insure’ against the issue of intermittency as it approaches its 33 percent RPS goals. The risk of over-insurance of course is that state ratepayers will end up footing the bill for an overbuilt system — and ratepayers will blame rising rates on renewables rather than bad grid architecture or poor integration planning.  

The problem lies in the way California regulates its power industry. As a recent report from the Hoover Institution points out, “No single state entity is in charge of integrating initiatives and addressing gaps, decision making is slow and siloed, and — most importantly — there is no consolidated roadmap and decision-making schedule.” In California, the CPUC oversees procurement and the CAISO oversees reliability. And while they are increasingly trying to coordinate, there is no systematic technical or economic optimization in place to balance cost, reliability, and growth.  

That’s a problem worth fixing. The state’s 33 percent goal is just the beginning. Complying with California’s landmark carbon regulation (AB32) will require the state to reach 80 percent renewables by 2050.

No one’s saying it will be easy, but it is important enough that we shouldn't just throw up our hands. The technical and regulatory issues that have to be resolved are complex and entangled in energy politics. We should not allow the alarmists to tell us that something that is hard is not worth doing. California is a state that has solved big problems before and the U.S. is a place where we pride ourselves on our exceptional place. Surely a matter this important can be solved with a little ingenuity, grit, and determination.

This article was originally published on Harris' Clean Energy Future blog and was republished with permission.

Lead image: Storm clouds via Shutterstock

22 Comments

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Bob Wallace
Bob Wallace
March 7, 2013
When you say that R&D funding is needed then you are acknowledging that liquid thorium reactors are a hypothesis, not a fact. Remember how pebble bed reactors were going to solve all our problems until it was discovered that they didn't actually work?

Furthermore, reactors will always be extremely expensive to build, regardless of the fuel source.

Take a look at what the world is building. Wind, solar, geothermal, hydro, tidal.... Look at how many countries are closing their nuclear facilities, how few are building new ones, and how even the countries that are building some nuclear have scaled back their plans.

All those countries hire very knowledgeable people to figure out the best solutions. And nuclear is not being chosen.
Michael B Casey
Michael B Casey
March 7, 2013
R&D funding for the commercialization of Liquid Fluoride Thorium Reactors would solve all of these issues and generate clean, abundant and safe energy for thousands of years.

God bless,
Mike
David Carl
David Carl
March 7, 2013
One thing the graphs do point out is that without a viable storage system there is little room left for solar to grow. Power consumption peaks at 7:00 am and enters a slow decline until 5:00 pm. Most or all of that decline is due to solar power but a renewable source for the am and pm peaks should be where the emphasis is placed and solar is not the answer (without storage) for those hours.

As to the gist of the article, I would agree that the WSJ seems to be raising a none issue.

As to many of the posters, maybe it is because I do not live in a desert (most Californians do), but my weather man misses predictions 2 days out all the time.
bob freeston
bob freeston
March 6, 2013
Note to Dennis at #1--The Tres Amigas project in New Mexico will soon allow power to move East and West and back and forth to Texas. It's the beginning of a national grid.
Kristen Overmyer
Kristen Overmyer
March 6, 2013
Is it just me, or did anyone else take note that on the day the author makes his comparisons wind power was just in the 200 MW range while there is in fact over 5,500 MW of capacity on the system; this is less than 4% of the nameplate capacity. In short, the wind was not blowing to any significant degree in California that day and the author's assessment of the relative contribution of renewable energy to the California grid is fatally flawed and any conclusions based on this assessment are meaningless; one can essentially stop reading the article at this point.

To be fair, I may be missing something here. Does anyone else see this the same way?
Rudy Wodrich
Rudy Wodrich
March 6, 2013
While we cannot control when the sun shines, we can control the "ramp rate" of solar power plants and how they react to fluctuations of voltage and frequency on the grid as dictated by the most stringent interconnection requirements such as PREPA's MTR's in Puerto Rico. At Schneider Electric, we are deploying combinations of advanced inverter functionality, energy storage (BESS or Genset typically) along with an over-riding Plant Controller including predictive weather algorithms are working together to accomplish these goals. Puerto Rico has been very forward thinking in placing these requirements on renewable DG almost from the beginning. I expect that the rest of the US utilities will follow suit in the coming years.
ANONYMOUS
March 6, 2013
Can you imagine the return on investment and the number of meaningful jobs that would be created if we leveled the playing field and did away with fossil fuel subsidies and made them pay for their environmental damage? Even health care costs would be reduced.

Bill
Matt Henderson
Matt Henderson
March 4, 2013
Interesting stuff.

I know that NSF hired this team to go overseas and compare U.S. R&D in systems engineering for clean energy manufacturing with activities going on elsewhere in the world. Their final workshop, which will be webcast, is coming up: http://www.wtec.org/SEEM http://www.tvworldwide.com/events/nsf/130314/
Bob Wallace
Bob Wallace
March 4, 2013
06 February 2011

"The operators of Texas' electricity grid blamed myriad problems at power plants across Texas for last week's rolling blackouts. But interviews and a review of documents by The Dallas Morning News reveal that the breakdown of a cluster of coal-fired plants in Central Texas was at the heart of the problem."

12 December 2011

"The first of two new coal-fired power plants that We Energies opened in Oak Creek in recent years will be out of service for several months after an inspection revealed a problem that could lead to turbine corrosion over the long term."

23 August 2011

"Two nuclear reactors at the North Anna Power Station in Louisa County, Va., automatically shut down Tuesday shortly after a magnitude-5.9 earthquake shook the state and surrounding area."

San Onofre, Davis-Bessie, Crystal River, Brown's Ferry, Three Mile Island,....


All generation needs "spinning backup". One never knows when a big "baseload" generator will go tits up.

Wind and solar are so much more dependable. You know a day or two ahead of time how much you can count on them. They don't suddenly disappear without warning.
Gerry Wootton
Gerry Wootton
March 4, 2013
to dennis' point 1 - the advantage for Germany is not less diversity of AHJ's, just better organization and coordination. To suggest that this is an advantage is rather defeatist if you're suggesting that Americans are incapable of the same level of cooperation as they have in Europe. While this article suggests that even within a single state AHJs haven't organized themselves into any sort of cohesive or cooperative unit, how is this a necessary ongoing condition forever and ever?
ANONYMOUS
March 3, 2013
Renewables are a grid stability challenge. Germany is being bailed out by the European grid--particularly fast response hydro from Sweden and Norway. However, Sweden plans to build some wind power backed by Swedish hydro. That is very bad news for German grid that would collapse without the assistance of their neighbors. Their other problem is that the power rates are approaching twice that of France and will go much higher if they really have to solve thier grid (energy storage) problems rather than betting on their neighbors to stabilize the grid.

In California there are several challenges as renewables approach 6 to 8% of total electric production. Conditions such as partly cloudy days result in rapid changes in PV output. That implies lots of gas turbines running inefficiently at part load so they are able to ramp up quickly to meet demand without blackout. This is a great way to increase costs and greenhouse gas emissions. Second, in a real free market the price of electricity would collapse to near zero for parts of the day with high solar output. That would make many forms of renewables uneconomic. That has been avoided by laws that guarentee renewable prices independent of electric prices. Those subsidies are not affordable on a larger scale. Worse yet, the subsidies prevent development of more viable renwable energy systems such as solar thermal electric systems that have energy storage incorporated into the system and can avoid most of these problems.
Davis Swan
Davis Swan
March 2, 2013
Patrick - I don't quite get the reference to Duke other than they are investing in renewables in general which is a good thing. I am a big advocate of all renewable energy including wind, solar and geothermal - my "Black Swan Blog" at http://www.debarel.com/blog1 is all about that.

I just can't understand why green energy advocates deny that renewables cause problems related to reliability and variability. We need to acknowledge those problems honestly and accelerate research and support for energy storage, smart grids, responsive demand, etc. The Germans are starting to do that (see for example http://www.renewableenergymagazine.com/article/germany-focuses-on-energy-storage-20130225) but we need more focus on the issue here in North America. Through Feed-In-Tariffs and Production Tax Credits billions of dollars are being thrown at renewable energy rollout. In contrast a few tens of millions are going to energy storage. In most jurisdictions storage is treated as an end user and charged a toll for access to the regional grid - just the opposite of what we need to be doing.
Patrick O'Leary
Patrick O'Leary
March 2, 2013
Davis, Duke Energy seems to disagree. They are looking at getting ahead of the process to avoid getting left behind. They also seem to have swallowed Cambar so as to minimize that problem.

Hot days down South are sunny, and nat gas generation is responsive.
Davis Swan
Davis Swan
March 2, 2013
This post demonstrates a significant willingness to ignore real problems. The comment that Germany is handling things just fine is just plain dumb. Their renewables work ONLY because they have their entire coal-fired and natural gas-fired generation fleets on standby as 'spinning reserves' that are called on frequently and intermittently to back up the variability of their wind and PV. Most of these plants are now losing money because they were designed to run 7x24 and the German utilities are suffering as a result. Things are so bad that they are using inefficient and polluting coal-fired plants rather than their ultra-efficient combined cycle gas plants because the coal plants are cheaper to run. German electricity rates are far higher than the European average and continuing to climb. This issue will be one of the primary areas of focus for the upcoming German elections.

There have been numerous articles in the German press about this. See, for example http://www.spiegel.de/international/germany/problems-prompt-germany-to-rethink-energy-revolution-a-852815.html

Things are also getting dicey in Texas and Hawaii as the overall percentage of renewables has become significant. A letter from the North American Electricity Reliability Corporation warned Texas about possible reserve problems as soon as this coming summer. See http://www.nerc.com/files/2012_LTRA_FINAL.pdf

Maybe you're right and there will be no problems with the grids anywhere that renewables are becoming important. I personally think there will be a major blackout in the Southern US on some hot, calm day this summer. Only one of us is right.
ANONYMOUS
March 2, 2013
The Wall Street Journal is status quo. Why would we believe them predicting any future change?
Mark Miller
Mark Miller
March 2, 2013
My little PV system set a record for kwh produced during the month of February, even with a day with zero output because of 6" of snow on my panels. Yesterday, my system produced more electrical energy then we used for the day (30 kwh produced vs. 25 kwh used over a 24 hour period). This is the earliest in the year that I have produced more then I have used from the grid over a 24 hour time frame. I finally got a SMART meter- it sure took a LONG time to build up the infrastructure in my semi rural environment to allow for the data communication and concurrent algorithm development at PG&E to be completed for Net Meters so that I could have web access to the "My Energy" site at PG&E. Sometime tomorrow, after my data is uploaded into the PG&E database, I will be able to evaluate the data provided at the "My Energy" web site to verify my old fashioned paper record of generation and usage.

Matching PV, Wind, or any electrical generation source to the demand curve is a rather interesting balancing act. Someday in the future I assume each service provider in the state (both private and public- as the 33%RES covers both) will be able to provide comparable real time graphs of their specific generation and load management efforts. I saw that CPUC is mandating that SCE put some energy storage in place- in theory to address the intermittency issue with many forms of RE. Energy storage is an alternative to having fossil fuel plants on line in reserve, for short to mid term load balancing.

I haven't followed the nuances of AB32. I thought the reduction goals in CO2 allowed for some TRADE choices in how to meet the targeted entities CO2 reduction goals. I may be wrong in this, as I haven't really spent much time looking into the details. If you have a reference that sates the "80% renewables required by 2050" I would love to review the document as I am trying to decide on a few home improvement projects for next year.
Patrick O'Leary
Patrick O'Leary
March 2, 2013
Let's not miss the underlying 'time of day' issue here and in most, if not all such 'narratives.' When has any of these chicken littles screamed about problems in the middle of the night?

Peaking power and the money that Utilities make from that power is the only sexy in the electric generation business. Look at its contribution to revenues, profits and yes, executive bonuses.
Kent Doering
Kent Doering
March 2, 2013
Let us stay with "energy efficiency". Siemens and other comnpanie also market "energy management systems" for larger buildings that c.n.c. regulate heat and air conditioning according to actual usage of rooms. (Turns down the heat at night in office buildings, temperature sensors react to passive solar heating of a windowed area and turn down the heat, etc.) This also saves energy. Then, most city owned utilities operate massive long distance heat power. Munich´s system, the longest, most intensively connected, saves over 5 million barrels of heating oil a year. (that does not appear on international comparative statistics.) Solar heat, shallow geothermic heat pumps, and back up combined heat power systems are mandated on all new buildings along with massive facade and roof insulation, wide vacuum window insulation.(when not hooked up to Utility CHP) There are massive programs for building upgrades- re-windowing with insulation windows, 3 to 10 inch facade and roof insulation systems, (geothermal and solar heat for non-CHP) hook ups, and installing gas fired micro CHP to replace oil heating)
That is LEED gold standard in new buildings and upgrading to LEED silver in older buildings is SOP- but not considered in internationl comparisons. The real comparative measure is fossil fuel consumption per capita. There Germany generally has a 50% lower ffcpc than the U.S., and in some areas like Bavaria, already 70% below the U.S.
There are other key differences not considered here in the comparison.
Nick Cook
Nick Cook
March 2, 2013
The above scenarios work well whilst renewables, specifically wind and solar, are effectively topping up a fossil based infrastructure but, as far as I understand, this is not the long term goal. If it is envisioned that RE (and possibly nuclear) will supply the majority our power then at this point balancing will be a big challenge, there could be many occasions when supply is far greater than demand and vice versa.

Dennis Heidner suggests that fast response geothermal might provide a solution but I am not sure there is as much geothermal resource as we might think because, like the debate on wind, there is a limit at which the energy extracted from the resource starts to affect that resource; for example, with wind this could then start to impact on climate by affecting wind patterns.

Has anyone considered how much energy we use in geothermal terms? If you take the UK as an example, approx 40GW average generation, this is equivalent to a Mt. St. Helens eruption (total output not just the eruption) every month and if you allow for generation efficiency/losses more like one a week. This is just for the UK, and represents in the region of 1% of world electricity demand. Another way to look at it is UK electricity consumption is roughly equivalent to detonating a Hiroshima bomb every 15 minutes. I think this would suggest that

The world's solar resource, on the other hand, is nearly equivalent to one Mt St. Helens per second! It seems to me that the rational approach is to focus on solar for our (the world's) primary energy resource and look to energy storage technologies to balance load as current fossil balancing reaches end of life or fossil fuels become uneconomic by comparison or preferably sooner. This will require political vision and will in order to prise open the grasp of vested interests of current (fossil) energy industries.
Kent Doering
Kent Doering
March 2, 2013
Great. But I agree with Dennis Heidner that the comparison to Germany does not hold entirely.
But 1, I have to disagree with Dennis. There are as many utilities in Germany as there are in California. Over 400 utilities feed in/draw down from the grid. Many of these, are by tradition, city owned and operated.

Germany will be investing over 1 trillion Euros in the "Energy Transition" over the next 20 years in more "energy efficiency" and "renewable energy measures".

Energy efficiency is the "low hanging fruit". There are numerous programs for cutting consumption while increasing efficiency.

The most obvious is "re-powering", i.e. wherever possible, replacing older appliances, transportation motors (in elevators, escalators) in private homes, commercial buildings, and industry with A +++ systems, often comnbined with "c.n. power management controls. (For example, upgrading from an older refridgerator freezer unit to a better insulated system, with an A +++ energy efficiency rated motor cuts consumption on refridgeration-freezer units by 40$. There are targeted programs for replacing all older appliances such as refridgerators and freezers. In industry, Siemens has a program for upgrading production lines with power management systems and new motors which reduce "energy consumption" on the line by up to 55%.

On the supply side, there are programs for "repowering", i.e. upgrading older generators on hydro etc, often half a century old, with A ´+++ systems which can boost power output to input mechanical energy by as much as 50%, but the average "boost" is about 30%, according to Peter Loescher, CEO of Siemens. These measures do not appear on the comparative statistics, but they do count.

Many city owned utilities also have programs for extensive build out and connection of long distance heat power grids... i.e. using heat from power plants for heat and hot water. Munich has Europe´s longest grid.
Dimitar Mirchev
Dimitar Mirchev
March 2, 2013
Matching electricity generation to electricity demand is exactly the same problem as matching electricity generation to (elegricity demand minus electricity generated from renewables). Exactly the same.

And this problem has been solved more than half a century ago.
Dennis Heidner
Dennis Heidner
March 2, 2013
No, the sky is not falling, however there are a few difference in the German system that work in their advantage.

1. The geographic area is smaller, fewer states, fewer "utilities" that makes coordination and working toward common goals easier.

2. There is a well established European grid, if there is a surplus in Germany (or shortage) The transmission lines are used to move power as needed. While we (NorthAmerica) can do this reasonably well from North to South, we can not move power as effectively east to west.

3. In the US, production tax credits get in the way! In Germany if they need to curtail power (including renewables) they do it. Solar plants are required to have automated controls in place to reduce as needed - and to intelligently handle the "50.2hz" problem (brown outs/glitches/overproduction). In the US - the lawyers are called out to battle each. Even small SolarPV plants (30kW) have been required since 2011 to include controls for curtailment.

4. Germany has been burning more coal -- but to be fair -- that is because they have also begun the process to shutdown and dismantle their nuclear plants. They have been working on and are beginning to build thermal plants that - like natural gas - can ramp up and down in minutes not hours.

5. They have introduced a new program this year to encourage distributed storage at the solar PV plants and residential prosumers.

6. The national policy is supports renewables - even if there is an added risk and cost. As such their equivalent of FERC/NERC (plus the small geographic area) make it easier to implement the rules/regulations needed. In the US, even though California makes a rule, that doesn't mean that it makes it past all the other regulators that must approve -- AND -- changing those national level rules can take years.

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Arno Harris

Arno Harris

I'm CEO of Recurrent Energy, a leading developer of solar projects for utilities and large energy customers. Recurrent Energy develops, builds, finances, and operates solar power projects--marketing clean electricity at competitive rates...
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