Integration Challenges of Renewable Energy Challenges of Renewable Energy May 29, 2014 Drake Bartlett Senior Trading Analyst [email protected] 1 ...

Integration Challenges of

Renewable Energy May 29, 2014

Drake Bartlett

Senior Trading Analyst [email protected]

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26,000+ MWs of generation

Operating in 8 states

No. 1 wind power provider

5,080 MW of wind capacity

Top 10 solar power provider

Customers

3.4 million electric 1.9 million gas

Who We Are…

NSP-Wisconsin

NSP-Minnesota

SPS

PSCo

* Percentages based on 2009 Ongoing Earnings Xcel Energy is dedicated to being an environmental leader at reasonable cost

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Retail Electric Rates All Customer Classes

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9

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

¢/kWh

US - EIA

Xcel

Energy

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Xcel Energy Wind Generation Growth (current)

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7,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ca

pa

cit

y M

WPSCo (2166) NSP (1867) SPS (1047)

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Wind Integration Cost Categories

■ Suboptimal system dispatch due to wind forecast error

■ Wind curtailment

■ Increased O&M on coal and gas units

■ Increased regulating & contingency reserves

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What has Xcel Energy done? ■ Developed state-of-the-art wind forecasting system

■ Increased generation portfolio flexibility from both planning and operations perspective

Flex Reserve Guideline manages reliability concerns while minimizing customer costs

Pioneered the use of regulation capability of wind farms in US

Offline cycling of baseload units to minimize wind generation curtailments

Clean Air, Clean Jobs in Colorado and Metro Emissions Reduction Program in Minnesota

■ Contractual curtailment rights

■ Filed Renewable Integration Tariff for PSCo

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Forecasting Enhancements

■ Wind Ramp Forecasts

■ Probabilistic Forecasts

■ Extreme Weather Events

■ Distributed Solar Generation

■ Load Forecasting

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60-min wind Ramp in context of PSCo load (2/25/2012)

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Load Ramp = (191)MW Wind Ramp = (1035)MW Net Load Ramp = 844MW

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2010 2011 2012 2013

Average Installed Capacity 1259 1547 1855 2173

Number of Ramps 13 40 59 119

Largest Ramp (469) (618) (788) (646)

Largest PSCo Wind Generation down-ramps by yearLoss of Wind Generation greater than 300 MW in 30 minutes or less

30-Min Ramps > 300 MW, 10/1/12 - 9/30/13Negative Ramps Positive Ramps

Count 115.0 169.0

Average (370.3) 410.9

Max (646.5) 815.6

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VG Forecast Value for Xcel Energy

Total

Total Percentage Savings

2009 2013 Improvement Improvement ($000,000)

PSCo 18.01% 11.03% 6.98% 38.8% $20.8

NSP 15.65% 9.18% 6.47% 41.3% $15.4

SPS 16.35% 12.45% 3.90% 23.9% $1.4

Xcel 16.80% 10.64% 6.16% 36.7% $37.5

Forecasted MAE

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Xcel Energy Solar Generation Projected Growth

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lled

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acit

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PSCo NSP SPS

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April 14, 2013

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April 14, 2013-2019 PSCo Net Load with Wind and Solar Growth

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2013 2015 2017 2019 2013 Min Gen 2019 Min Gen

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PSCo Renewable Energy Integration

Tariff

■ Renewable Energy increases variability

■ Regulation and Frequency Response Reserves

■ Contingency Reserves

■ Transmission-only customers cover their costs

■ These new charges will not raise Xcel Energy’s earnings or change the economics of renewable energy for our customers.

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Drake Bartlett

Senior Trading Analyst [email protected]

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