INCORPORATION OF WIND POWER RESOURCES INTO THE CALIFORNIA ENERGY MARKET

The California ISO (CAISO) Participating Intermittent Resources Program (PIRP) was released to production on August 18, 2004. This achievement is an important milestone in the ongoing team effort of the CAISO engineers and managers to implement a new integration approach that allows intermittent resources (i.e., wind and other resources with an uncontrollable primary energy source) to become competitive market players in California. The PIRP creates conditions for intermittent producers to bid into California forward market without incurring ten-minute imbalance charges when the delivered energy differs from the scheduled amount. Instead, participants are assessed deviation charges based upon monthly net deviations between the metered and scheduled energy. An unbiased forecast of hourly energy results in a net energy deviation over an entire month that approaches zero. A key ingredient to implementing the new scheduling methodology is the near real time, state-of-the-art forecasts. SCs representing Participating Resources use these forecasts as the energy schedules submitted to CAISO. The CAISO team is working closely with the SCs and AWS Truewind Company (the wind forecasting company) providing wind generation forecasting services. At this moment, eight projects in San Gorgonio and Solano County participate in PIRP: Cabazon (40.92 MW), High Winds (162 MW), Green Power (16.5 MW), Mountain View I, II and III (44.4, 22.2 and 22.44 MW, respectively), Wintec (1.5 MW), and White Water Hill (61.5 MW). The program is rapidly expanding. Several more projects in California have expressed interest in joining the program. This paper contains a brief description of the CAISO PIR Program as well as a discussion of the experience gained by the project development team.

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