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National Electric Transmission Congestion Study - W2agz.com

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2. <strong>Study</strong> Approach and Methods<br />

This chapter describes the process and methods<br />

used to study congestion in the Eastern and Western<br />

Interconnections. The process involved two parallel<br />

and coordinated analyses, one for each interconnection.<br />

The analyses of the Eastern and Western Interconnections<br />

are discussed separately.<br />

The methods, which were <strong>com</strong>mon to both analyses,<br />

included:<br />

1. Review of available information on historical<br />

congestion and previously documented transmission-related<br />

studies;<br />

2. Simulation modeling to estimate future economic<br />

congestion, using <strong>com</strong>mon economic assumptions<br />

and analytical approaches; and<br />

3. Comparison and assessment of the historical information<br />

with the simulation findings.<br />

Although this study reports on transmission congestion<br />

in the United States, the analyses of the Eastern<br />

and Western Interconnections incorporated appropriate<br />

data concerning Canadian electricity generation,<br />

transmission, demand, cross-border flows, etc.<br />

into the simulations.<br />

2.1. Review of Historical<br />

<strong>Transmission</strong> Studies<br />

For each interconnection, analysts collected and reviewed<br />

recent regional transmission studies, which<br />

in most cases were transmission expansion plans<br />

and reliability assessments. The results of these<br />

reviews are discussed in Chapters 3 and 4. Using<br />

these studies and other information concerning recent<br />

grid transmission flows and curtailments, the<br />

analysts identified existing transmission constraints<br />

within the interconnection, as determined by other<br />

parties, and took into account upgrades already approved<br />

by regulators or under construction to alleviate<br />

specific constraints.<br />

2.2. Simulations<br />

The simulations of Eastern and Western Interconnection<br />

congestion used 2008 as the base year to estimate<br />

congestion on the transmission grid. Each<br />

analysis also simulated congestion for a later year,<br />

but because of differences in data availability, the<br />

eastern analysis focused on 2011 and the western<br />

analysis focused on 2015.<br />

Both eastern and western modeling used simulation<br />

tools that use optimal power flow modeling on a decoupled<br />

network system (i.e., DC power flow with<br />

linear loss estimates) to minimize production costs<br />

across the grid while delivering all needed power<br />

from generators to loads in each hour of the model<br />

year. Each simulation model incorporated average<br />

system line losses. Each model conducts an internal<br />

reliability assessment, optimizing flows while respecting<br />

grid constraints that would limit flows<br />

within or between regions, and redispatching generation<br />

as necessary to ensure that load is served reliably.<br />

Each simulation calculated the location, duration<br />

and cost of congestion across the grid to<br />

identify those elements on the grid that are expected<br />

to experience the greatest congestion (as defined<br />

below). Thus, congestion in the simulations reflects<br />

underlying economic forces, constrained by the<br />

physical limits of the power systems. 8<br />

8 Time series simulations based on optimal power flow models over a defined study period can estimate total system production costs for that<br />

period. These models can be used to <strong>com</strong>pare production costs in base and change case simulations—the base case represents the transmission<br />

system as it exists today or in the near future, with known and quantifiable modifications. The change case represents discrete transmission<br />

enhancements that are being tested to determine their impact on production costs, reliability, or other performance indicators. The difference<br />

between the base and change cases yields a calculated basis for evaluating the economics of the transmission enhancement. It is important to note<br />

that the impact of a transmission enhancement cannot be assessed using measures of current congestion, such as congestion rent, that reflect only<br />

base case conditions. The simulation techniques used for this congestion study did not incorporate voltage stability limits, which require modeling<br />

using a full alternating current optimal power flow solution for each study interval; this adds significant <strong>com</strong>plexity to the modeling process.<br />

Transient stability, another important physical constraint, may not be possible to model under unconstrained network dispatch.<br />

U.S. Department of Energy / <strong>National</strong> <strong>Electric</strong> <strong>Transmission</strong> <strong>Congestion</strong> <strong>Study</strong> / 2006 9

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