Topic/Matter Intersection

Topic:"Procurement Practices" in M08929

Matter: P-884 - Nova Scotia Power Inc. (NSPI) - Integrated Resource Planning (IRP) and M08059--Generation Utilization and Optimization
32 passages 8 documents

Procurement Practices across all matters →

N-8NSPI Letter update on IRP process 1 passage
Party Question/Comment & Response
a fair and transparent means of PRP selection.” This appears to be a reasonable approach and will continue to discuss with stakeholders as the modeling phase progresses. 6.2 Sensitivities Bates White Since Mersey cap ex vetted through IRP,...

AI summary The document discusses the selection of a Preferred Resource Plan (PRP) through a fair and transparent process and mentions the inclusion of sensitivity runs in modeling, specifically considering the retirement of the Mersey system with decommissioning costs.

N-9-(i)Appendices A-N 14 passages
Section 1548
procurement (118 MW in 2.1C.S2 vs 57 solicit Nova Scotia market based information for MW in 2.1C). wind. Recommendation: Compare assumptions to the contract prices in New Brunswick if possible. If New Brunswick costs are lower than NS Powe...

AI summary The text discusses a procurement comparison between Nova Scotia and New Brunswick, noting a discrepancy in assumed costs for wind energy projects. It recommends comparing assumptions with New Brunswick contract prices and revising NS Power's cost assumptions if necessary.

Section 1811
of operating with lower inertia constraints, which are only tested for the 2.1C case. 3. Please provide discussion of the issues NS Power has evaluated in its model configuration decisions. Wind resources The sensitivities indicate that th...

AI summary The document discusses NS Power's evaluation of wind resource procurement, emphasizing that price is the primary driver for wind investment. It highlights the importance of conducting an all-source RFP to determine appropriate wind investment levels, with recommendations for up to 700 MW of wind by 2025, contingent on price and performance thresholds.

Section 1812
l of wind investment is to conduct an all-source RFP. 1 In addition to new wind, the RFP should also be open to repowered wind. 2 The results may affect the timing of the reliability tie. John D. Wilson and Paul Chernick • Resource Insight...

AI summary The text discusses the inclusion of repowered wind in an all-source RFP and highlights the importance of understanding battery storage's value for the system. It notes that battery capacity may drop in 2045 and requests an explanation, identifying resources that substitute for battery capacity and discussing implications for end effects calculations.

Section 1827
Action Plan All-source request for proposals The draft action plan’s resource procurement strategy should be significantly revised. NS Power suggests a wind procurement strategy and a plan for redevelopment or replacement of steam turbines...

AI summary The draft action plan’s resource procurement strategy needs revision, with NS Power suggesting wind procurement and replacing steam turbines with combustion turbines. RII recommends an all-source RFP process, using IRP models for bid evaluation. Transmission planning should proceed in parallel, with cost estimates for the reliability tie and regional interconnection considered in bid evaluations.

Section 1842
CanREA Memo September 18, 2020 Page 2 of 3 Nova Scotia Power IRP Final Report Appendix K Page 189 of 264 Resource Procurement One of sensitivities evaluated was a low wind price. This sensitivity advanced the “build of significant wind qua...

AI summary CanREA highlights the need for updated wind procurement strategies in Nova Scotia, noting significant cost reductions in wind energy and the importance of monitoring installed costs. It also critiques NSPI's modeling for not adequately considering wind generation's frequency response capabilities.

Section 1912
tivities”. The IRP scope does not include findings or recommendations on specific procurement the appropriate level of wind investment is to conduct an all-source RFP. approaches. The draft action plan’s resource procurement strategy shoul...

AI summary The text discusses the need to revise the draft action plan's resource procurement strategy, emphasizing the importance of an all-source RFP for determining the appropriate level of wind investment. NS Power suggests a wind procurement strategy and redevelopment of steam turbines, while noting uncertainties related to wind and battery costs affecting procurement timelines and sizes.

Section 2099
M costs based on methods developed in the DSM advisory group. RII also concurs with EfficiencyOne that the DSMAG is a logical venue for completing the determination of avoided costs for DSM planning. John D. Wilson and Paul Chernick • Reso...

AI summary The text discusses the need for an aggressive near-term resource procurement strategy, including a potential 700 MW wind procurement by 2025, conditioned on price and performance thresholds. It criticizes the current approach for being too limited and not fully leveraging potential cost savings opportunities.

Section 2100
hould be made throughout the report. Simply soliciting “Nova Scotia-based market pricing information” is insufficient; it is our understanding that NS Power considered such information in adopting its 2 Model cases 2.1C.WIND-1 and WIND-2 s...

AI summary The text discusses the Integrated Resource Plan (IRP) and the need for an all-source procurement strategy to meet load and unit retirement forecasts while reducing costs and maintaining reliability. It also highlights the importance of incorporating Nova Scotia-based market pricing information in wind procurement strategies.

Section 2103
IRP pricing assumptions. Since NS Power agrees that new installed capacity by 2025 is desirable, engaging in a solicitation with the stated intent (but not requirement) to procure up to 700 MW of wind by 2025, depending on pricing and othe...

AI summary The document discusses NS Power's Integrated Resource Plan (IRP) pricing assumptions, including the procurement of wind, firm imports, and gas peakers. It highlights that the most economical mix of resources depends on actual bids and that battery storage's role is not primarily price-driven. Further modeling is recommended to confirm acquisition pricing and wind integration strategies.

Section 2104
logy should be to understand better the value that battery resources may have for the system in the near term. 7 Case 2.1C suggests that only relatively modest battery resources are economic at current price levels. The sensitivity results...

AI summary The text discusses the economic viability of battery resources and compressed air energy storage within NS Power's Integrated Resource Plan (IRP). It suggests that only modest battery resources are currently economic and highlights the importance of including battery storage in the all-source procurement process to influence the value of other bids.

Section 2238
Category Participant Comment NS Power Response Procurement Consumer Conduct an RFP for up to 700 MW of wind by 2025, to NS Power has committed to soliciting Nova Scotia-based Advocate (1a) be conditioned on price and performance thresholds...

AI summary A consumer advocate suggests conducting an RFP for up to 700 MW of wind by 2025 with price and performance conditions and testing the market for firm imports and gas peakers. NS Power responds by committing to solicit Nova Scotia-based pricing information and acknowledges the suggestion to examine an all-source RFP for future capacity and energy procurement.

Section 2271
Category Participant Comment NS Power Response wind project in New Brunswick and based on this experience poses valuable insights regarding the current cost of wind in the Maritimes. Wind CanREA NS Power proposes to conduct a market test t...

AI summary CanREA suggests that NS Power conduct a market test to assess the cost of onshore wind, solar, and battery storage systems, given concerns about the overstatement of wind costs in the IRP. NS Power plans to initiate procurement processes aligned with the IRP's resource addition timelines and will complete the market test as part of the IRP Action Plan.

Section 2540
ACTION PLAN ITEM STAKEHOLDER STAKEHOLDER COMMENT REFERENCE capacity to the Nova Scotia system. Fuel flexibility is a storage/synchronous condensers) should be used in component of this work, including consideration for the evaluation of th...

AI summary The document discusses a wind procurement strategy targeting increased wind capacity by 2025 and 2030, alongside system stability studies to support higher wind integration. Stakeholders support the initiative and emphasize the need for natural gas as a cleaner fuel alternative.

Section 2580
Request / Directive Originator Status NS Power Comments 2018 FAM Audit Recommendation IX-1 Bates White Complete Please refer to Assumptions, Modeling Results, Findings, Analysis Plan, Action Plan, and Roadmap. (d) Consider the full costs a...

AI summary The 2018 FAM Audit Recommendation IX-1 from Bates White advises NS Power to consider the full costs and benefits of various investment alternatives, including natural gas infrastructure, demand-side management, and transmission expansion. NS Power developed a natural gas model with different gas price scenarios and variable fuel cost inputs for the PLEXOS model.

N-10Comments - Bates White 8 passages
Section 5
2. The IRP is a guide (not a blank check), which does not obviate NSPI’s burden to substantiate investment decisions. ........................................................................ 23 ii 3. NSPI should consider including certain...

AI summary Bates White Economic Consulting comments on NSPI's 2020 Integrated Resource Plan (IRP), emphasizing that the IRP serves as a guide requiring NSPI to justify investments, incorporate stakeholder input, and adopt competitive procurement practices. The analysis highlights the need for NSPI to substantiate decisions and align with best practices.

Section 33
lopment of a “Regional Integration Strategy” as its number one action item in its Action Plan.56 This is crucial, as time is of the essence in pursuing regional solutions due to the risks noted above. In addition, in light of the risks ass...

AI summary The text emphasizes the urgency of developing a 'Regional Integration Strategy' as a top priority. It recommends three actions for NSPI: implementing a circuit breaker in its evergreen process if regional solutions stall, avoiding linking thermal retirements to the strategy's success, and using competitive procurement (e.g., all-source RFPs) to ensure timely and economic capacity replacement.

Section 39
Bates White Comments On NSPI Final IRP Report underscore the importance of ensuring future procurement efforts solicit offers from the market to ensure the best and most timely pricing possible. The sensitivity results also show the import...

AI summary Bates White emphasizes the need for market-driven procurement to ensure cost-effective pricing and highlights the Reliability Tie's role in integrating renewables and maintaining system reliability. Sensitivity analyses show the Reliability Tie is prioritized in low-cost scenarios, while its absence leads to reliance on battery storage and synchronous condensers. This underscores the Reliability Tie's cost-efficiency in supporting high renewable penetration.

Section 40
us condensers to support additional wind and provide inertia.71 These findings underscore the importance of our discussion of the Reliability Tie and NSPI’s regional coordination efforts in B.1 above. 4. Lingering discomfort with IRP assum...

AI summary The text highlights concerns about NSPI's Integrated Resource Plan (IRP) assumptions regarding technology costs and benefits, noting potential overestimation of costs and underestimation of renewable energy benefits. It emphasizes the need for competitive procurement to address discrepancies and acknowledges that IRP assumptions may become outdated due to rapid technological advancements.

Section 41
lting, Inc. See also November 11, 2020 comments of the Canadian Renewable Energy Association. 21 Bates White Comments On NSPI Final IRP Report Addressing this concern, in our view, is best done through the use of best practices competitive...

AI summary Bates White recommends using best practices in competitive procurement to address concerns related to new resource pricing, ensuring fair comparisons and customer benefits through fixed price offers that align with the Integrated Resource Plan (IRP) guidelines.

Section 47
and security of supply, emissions intensity, and dispatch flexibility.”83 Given (a) the demonstrated benefits of these regional solutions and (b) their unique risks, NSPI should follow through on its 81 Resource Insight, Comments on Draft...

AI summary The text discusses the need for NSPI to take immediate action on coal-to-gas conversions at Trenton and Point Tupper Generating Stations, as suggested by Heritage Gas, and to conduct detailed engineering and economic studies. It emphasizes the importance of considering coal-to-gas conversions as part of future capacity planning and preparing proposals for competitive procurement.

Section 49
25 Bates White Comments On NSPI Final IRP Report be ‘more optimal’ and should continue to be evaluated as part of future procurement efforts and the IRP evergreen process. 4. NSPI should also commit to using best-practices competitive proc...

AI summary Bates White recommends that NSPI use best-practices competitive procurement, including binding offers and all-source RFPs, to meet incremental energy and capacity needs at least cost. They emphasize the importance of evaluating alternatives to ensure cost-effectiveness and reliability.

Section 50
should be welcome to bid in such an RFP, allowing for a fair and complete comparison of these alternatives so as to minimize cost and risk to ratepayers while meeting system reliability requirements. Third, to the extent NSPI conducts tech...

AI summary The text discusses the importance of conducting technology-specific RFPs, such as for onshore wind generation, and highlights the need for NSPI to avoid overly restrictive quantity targets in RFPs. It emphasizes the sensitivity of optimal portfolios to wind and battery costs and suggests using a 'price-to-beat' benchmark or cost-effectiveness test to ensure competitive procurement that benefits ratepayers.

N-11Comments - Synapse 1 passage
Section 14
cost wind resources. The modification would involve a procurement plan that seeks to procure up to 631 MW of wind resources by 2025, in line with the optimal build-out for Scenario 2.1C low wind cost. Carbon Emission Modeling and Valuation...

AI summary NSPI proposes procuring 631 MW of wind resources by 2025 under Scenario 2.1C. NSPI's carbon modeling shows overcompliance with SDGA CO2 limits, allowing surplus allowances sales. However, NSPI's models do not value these overcompliance benefits, potentially undervaluing CO2 reduction impacts.

N-12Comments - PHP 1 passage
Section 5
overall evergreen process (Roadmap element #8) should continuously review cost and benefit assumptions concerning the retention timeline for the coal units. Based on its review and analysis, Synapse has recommended at pages 18-19 that NSPI...

AI summary Synapse recommends NSPI procure up to 631MW of wind by 2025, exceeding NSPI's 50-100MW target, arguing it's feasible and cost-effective. They suggest concerns about wind integration can be addressed through ongoing Roadmap analysis and operational limitations during reliability-critical periods.

N-14Comments - CA 5 passages
II. Summary p. pp. 4-5
II. Summary One of the outcomes of the IRP process is an understanding by several participants, such as Bates White, Synapse, Efficiency One, and Resource Insight, that a number of improvements to NS Power's planning and procurement proces...

AI summary The summary outlines recommendations for NS Power's Integrated Resource Plan (IRP), including adding an RFP for 700 MW of wind by 2025, integrating transmission and reliability measures, requiring updated modeling for Mersey hydro, recognizing electrification benefits, supporting FAM audit studies, incorporating CO2 shadow prices, and establishing an 'evergreen IRP process.'

A. Near-Term Resource Procurement p. pp. 6-8
A. Near-Term Resource Procurement The Board should encourage NS Power to add a near-term all-source request for proposals (RFP) to its Action Plan, including an opportunity for up to 700 MW of wind by 2025,[7](#page-7-1) to be conditioned...

AI summary The Board is urged to direct NS Power to pursue a larger near-term wind procurement (up to 700 MW by 2025) via an all-source RFP, arguing that the Final IRP Report's smaller wind-only approach is overly cautious and misses cost-saving opportunities. The analysis highlights discrepancies between NS Power's procurement cap and modeling showing lower wind prices' impact on expansion decisions.

REVIEW OF NOVA SCOTIA POWER'S 2020 INTEGRATED RESOURCE PLAN p. p. 8
REVIEW OF NOVA SCOTIA POWER'S 2020 INTEGRATED RESOURCE PLAN That sensitivity results a tradeoff between imported power and battery resources. Thus, even though battery storage is unlikely to make up a large share of NS Power's portfolio in...

AI summary The text discusses the trade-off between imported power and battery storage in NS Power's 2020 IRP, recommending battery storage inclusion in procurement despite its small near-term share. It also highlights the need to evaluate greenhouse gas emissions in bid assessments.

B. Integrate Transmission Development, Reliability Measures, and Procurement p. pp. 8-9
B. Integrate Transmission Development, Reliability Measures, and Procurement We find that NS Power's Action Plan lacks a clear process for integrating its work on the Regional Interconnection Strategy with the development of new generation...

AI summary NS Power's Action Plan lacks a clear process for integrating transmission development with generation resource planning. The IRP analysis does not establish optimal combinations of transmission upgrades and resource mix changes. Concerns include potential misalignment between transmission project timing, technology deployment, and reliability investments, as well as the single-resource procurement approach's compatibility with reliability measures.

2) Integrate Transmission and Reliability Development with Procurement p. p. 10
2) Integrate Transmission and Reliability Development with Procurement The second level of integration is to bring together the transmission and reliability development with the all-source procurement process. NS Power should be seeking to...

AI summary The text advocates integrating transmission and reliability development with all-source procurement to co-optimize generation, grid investments, and operations. It suggests using RFPs or engineering estimates for cost evaluation, with less refined estimates acceptable for initial decision-making. Coordination of timing between procurement and transmission studies is emphasized.

N-15Comments - SBA 1 passage
B. Potential for competitive procurement p. p. 0
B. Potential for competitive procurement As with almost all electric utility IRP processes, the NSPI IRP did not study the option of any of the proposed new resources being developed, operated, and owned by an entity other than NSPI. As su...

AI summary The NSPI IRP did not evaluate third-party ownership of resources, potentially missing cost benefits from different ownership structures. Competitive procurements for resources like renewables and transmission are recommended, with the SBA suggesting a report on ownership alternatives for Board review and stakeholder input.

N-18Response to Comments - NSPI 1 passage
IRP Final Report Comments – Bates White p. pp. 13-35
IRP Final Report Comments – Bates White No. Topic / Reference Bates White Comment NS Power Response importance of ensuring future procurement efforts solicit offers from the market to ensure the best and most timely pricing possible.

AI summary The document discusses the importance of ensuring future procurement efforts solicit offers from the market to achieve the best and most timely pricing. This is emphasized in the context of the IRP Final Report Comments by Bates White.

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