Global experiences in cross-border power system integration
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1 Global experiences in cross-border power system integration Matthew Wittenstein Electricity Analyst, IEA HAPUA-UNESCAP Workshop, April 2017, Jakarta
2 Power systems planners must balance competing goals The Energy Trilemma Social acceptance Grid planning and integration Security of supply Cost of development Effective transmission planning and regional integration can help resolve the energy trilemma, especially when other technology options are limited.
3 Regional integration: a matter of degree If you want to go fast, go alone; if you want to go far, go together. Power system Power system Power system Power system Power system Unified power system Independent systems Coordinated systems Consolidated system Consolidated systems are best able to meet the technical requirements of decarbonisation, but require strong jurisdictional alignment. Coordinated systems require significant harmonisation, ideally supported by regional institutions.
4 What role for institutions in an interconnected world? National responsibilities Regional responsibilities National development plans Establishing tariffs System/market monitoring Reliability/security standards and grid codes Coordinated planning Transmission cost allocation; wheeling charges Participation of external resources in power system Harmonising reliability standards and grid codes
5 Different models for regional institutions Loose cooperation ASEAN Energy Regulators Network MedReg (Mediterranean region) NordReg (Nordic Region) Limited regional authority Strong regional authority ACER (EU) CRIE (Central America) FERC (US) NERC (North America) CERC (India)
6 EU power system integration: an ever closer union Interconnection level assuming all Projects of Common Interest (PCIs) are completed The EU goal of a single, Internal Energy Market (IEM) is driven by a market first approach: free movement of goods, people, capital and electrons.
7 Benefits of power system integration: increased reliability Loss of Load Expectation in 2020 for isolated systems and integrated regions (EU) Historically, cross-border power sector integration often starts with the sharing of primary reserves. Source: ENTSO-E
8 North America: overlapping jurisdictional boundaries North American Electric Reliability Corporation (NERC) regions North America has many (at times overlapping) jurisdictional boundaries. Reliability standards have evolved from voluntary to mandatory.
9 US power system integration: economics and environment Western Energy Imbalance Market (WEIM) Markets are already well interconnected, but rising VRE is driving deeper integration WEIM is a voluntary market, with CAISO as market operator CAISO organizes market and, therefore, takes on regional responsibilities Economic and environmental benefits are real and significant USD 143 million saved ( ) tonnes of avoided CO 2 Reduced reserves requirements (btw 400 and 500 MW) Source: CAISO
10 Central America: developing the SIEPAC line SIEPAC system and annual trade volumes (2016) SIEPAC development and trade is supported by a number of regional institutions: CRIE (regulator); EOR (system operator); EPR (transmission owner); CDMER (economic development). Imports are a small % of domestic consumption.
11 Latin America: an electricity superhighway? Regional initiatives in South America Country SINEA - CAN UNASUR ALADI MERCOSUR Argentina Bolivia Brazil Chile Colombia Cuba Ecuador Mexico Guyana Panama Paraguay Peru Suriname Uruguay Venezuela Source: ISA ETESA, IEA research
12 Summary: lessons for ASEAN Regional integration can help resolve the energy trilemma Economics, security and environment Integration is a matter of degree No one path, but clear direction helps Need to consider relevant jurisdictional boundaries Political, geographic, technical Of crucial relevance: the boundaries of decision making Are roles and responsibilities clearly defined? Is decision making free of outside influence? Are decisions enforceable?
13 Thank you
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