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Power & Renewables Summit 2018
Keynote Presentation
Cheryl Mele
Senior Vice President & Chief Operating Officer
November 14, 2018
PUBLIC 2
The interconnected
electrical system serving
most of Texas, with
limited external
connections
• 90% of Texas electric
load; 75% of Texas land
• 73,473 MW peak,
July 19, 2018
• More than 46,500 miles
of transmission lines
• 600+ generation units
ERCOT connections to other grids
are limited to ~1,250 MW of direct
current (DC) ties, which allow
control over flow of electricity
600 MW with SPP
30 MW with CENACE
at Eagle Pass
100 MW with CENACE
at Laredo 300 MW with CENACE at McAllen
220 MW with SPP
The ERCOT Region
Texas RE
PUBLIC
Installed Generating Capacity in ERCOT
3
2016
Generating
Capacity
Capacity available:
91,195 MW
2017
Generating
Capacity
Capacity available:
93,546 MW
• Summer generation capacity
information provided by December CDR
Reports for 2015, 2016 and 2017.
• Reflects operational installed capacity ―
excludes units designated as indefinitely
mothballed or under extended outage,
and accounts for rating changes
reported by resource owners.
• Other category includes hydro,
biomass-fired units and DC ties.
2018
Generating
Capacity
Capacity available:
94,626 MW
Natural
Gas
53%
Coal
21%
Nuclear
5%
Wind
20%
Other
2%
Natural
Gas
54%
Coal
22%
Nuclear
5%
Wind
18%
Other
1%
Natural
Gas
55%
Coal
17%
Nuclear
5%
Wind
21%
Other
2%
PUBLIC 4
2018 Actual Peak
Demand (7/19/18)
Final 2018 Summer
SARA*
Total Resources, MW 77,558 78,184
Thermal and Hydro 65,200 66,457
Private Use Networks, Net to Grid 3,019 3,298
Switchable Generation Resources 3,057 2,727
Wind Capacity Contribution 4,229 4,193
Solar Capacity Contribution 1,136 1,120
Non-Synchronous Ties 917 389
Peak Demand, MW 73,308 72,756
Reserve Capacity, MW 4,250 5,428
Total Outages, MW 2,075* 4,349
Extreme Outage Scenario 6,915
Capacity Available for Operating Reserves, MW 2,175 1,079
The Summer 2018 Seasonal Assessment of Resource
Adequacy (SARA) values vs. actuals at peak demand
No outages greater than
500 MW
Source: Final 2018 Summer SARA
* The totals for the Final 2018 Summer SARA column combine multiple
rows into a single row in some cases (E.g., already in-service Thermal and
Hydro Resources with planned Thermal and Hydro Resources).
** The outage information in this table was extracted on September 4, 2018.
PUBLIC
A closer look at the peak demand day of July 19
5
*Off-line capacity is a summation of capacity from resources that were simply off-line
and those providing non-spinning reserves as an off-line resource.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
G,H,andI(MW)
A,B,C,D,EandF(MW)
Hour Ending
Hourly Average Demand, Capacity, and Reserves on 7/19/2018
A: Outages B: Quick-Start Resources C: Off-Line
D: Renewable HSL E: Non-renewable HSL F: Load
G: PRC H: Wind I: Solar
PRC = 2300
PUBLIC
Higher amount of Intermittent Renewable Resource (IRR) MW
occurred during the 2018 peak (7/19/18), relative to 2017 peak
(7/28/17)
6
0
1,500
3,000
4,500
6,000
7,500
9,000
10,500
12,000
13,500
15,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
MW
Hour Ending
7/19/18 Wind 7/19/18 Solar
7/28/17 Wind 7/28/17 Solar
ERCOT IRR Generation
In the Final 2018 Summer SARA, wind contribution was 4,193 MW vs 4,229 MW actual and solar contribution was 1,120 MW vs 1,136 MW actual.
ERCOT “Peak” Hours
• Average wind generation during peak hours on July 19, 2018 was ~800 MW higher than on July 28,
2017. Average solar generation during peak hours on July 19, 2018 was ~400 MW higher than on
July 28, 2017.
• Average wind generation during peak hours on July 19, 2018 was ~1,900 MW lower than the average
for summer 2018 during those same hours of the day.

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Keynote Interview: Texas as a U.S. Flagship for Energy Transition

  • 1. Power & Renewables Summit 2018 Keynote Presentation Cheryl Mele Senior Vice President & Chief Operating Officer November 14, 2018
  • 2. PUBLIC 2 The interconnected electrical system serving most of Texas, with limited external connections • 90% of Texas electric load; 75% of Texas land • 73,473 MW peak, July 19, 2018 • More than 46,500 miles of transmission lines • 600+ generation units ERCOT connections to other grids are limited to ~1,250 MW of direct current (DC) ties, which allow control over flow of electricity 600 MW with SPP 30 MW with CENACE at Eagle Pass 100 MW with CENACE at Laredo 300 MW with CENACE at McAllen 220 MW with SPP The ERCOT Region Texas RE
  • 3. PUBLIC Installed Generating Capacity in ERCOT 3 2016 Generating Capacity Capacity available: 91,195 MW 2017 Generating Capacity Capacity available: 93,546 MW • Summer generation capacity information provided by December CDR Reports for 2015, 2016 and 2017. • Reflects operational installed capacity ― excludes units designated as indefinitely mothballed or under extended outage, and accounts for rating changes reported by resource owners. • Other category includes hydro, biomass-fired units and DC ties. 2018 Generating Capacity Capacity available: 94,626 MW Natural Gas 53% Coal 21% Nuclear 5% Wind 20% Other 2% Natural Gas 54% Coal 22% Nuclear 5% Wind 18% Other 1% Natural Gas 55% Coal 17% Nuclear 5% Wind 21% Other 2%
  • 4. PUBLIC 4 2018 Actual Peak Demand (7/19/18) Final 2018 Summer SARA* Total Resources, MW 77,558 78,184 Thermal and Hydro 65,200 66,457 Private Use Networks, Net to Grid 3,019 3,298 Switchable Generation Resources 3,057 2,727 Wind Capacity Contribution 4,229 4,193 Solar Capacity Contribution 1,136 1,120 Non-Synchronous Ties 917 389 Peak Demand, MW 73,308 72,756 Reserve Capacity, MW 4,250 5,428 Total Outages, MW 2,075* 4,349 Extreme Outage Scenario 6,915 Capacity Available for Operating Reserves, MW 2,175 1,079 The Summer 2018 Seasonal Assessment of Resource Adequacy (SARA) values vs. actuals at peak demand No outages greater than 500 MW Source: Final 2018 Summer SARA * The totals for the Final 2018 Summer SARA column combine multiple rows into a single row in some cases (E.g., already in-service Thermal and Hydro Resources with planned Thermal and Hydro Resources). ** The outage information in this table was extracted on September 4, 2018.
  • 5. PUBLIC A closer look at the peak demand day of July 19 5 *Off-line capacity is a summation of capacity from resources that were simply off-line and those providing non-spinning reserves as an off-line resource. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G,H,andI(MW) A,B,C,D,EandF(MW) Hour Ending Hourly Average Demand, Capacity, and Reserves on 7/19/2018 A: Outages B: Quick-Start Resources C: Off-Line D: Renewable HSL E: Non-renewable HSL F: Load G: PRC H: Wind I: Solar PRC = 2300
  • 6. PUBLIC Higher amount of Intermittent Renewable Resource (IRR) MW occurred during the 2018 peak (7/19/18), relative to 2017 peak (7/28/17) 6 0 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MW Hour Ending 7/19/18 Wind 7/19/18 Solar 7/28/17 Wind 7/28/17 Solar ERCOT IRR Generation In the Final 2018 Summer SARA, wind contribution was 4,193 MW vs 4,229 MW actual and solar contribution was 1,120 MW vs 1,136 MW actual. ERCOT “Peak” Hours • Average wind generation during peak hours on July 19, 2018 was ~800 MW higher than on July 28, 2017. Average solar generation during peak hours on July 19, 2018 was ~400 MW higher than on July 28, 2017. • Average wind generation during peak hours on July 19, 2018 was ~1,900 MW lower than the average for summer 2018 during those same hours of the day.