Persistent heatwave conditions—which prevailed over most parts of California and Å·²©ÓéÀÖ broader western U.S. from August 30 to September 6, 2022—resulted in a record peak, testing Å·²©ÓéÀÖ grid’s reliability. At 51.4 GW, Å·²©ÓéÀÖ actual gross peak demand reached its apex on Å·²©ÓéÀÖ last day of Å·²©ÓéÀÖ heatwave.
The August 2020 heatwave resulted in a surge in demand to a peak of 46.8 GW, which resulted in blackouts. Even though Å·²©ÓéÀÖ September 2022 heatwave caused a higher demand of 51.4 GW, new BES contributed 3.4 GW of peak generation to help prevent Å·²©ÓéÀÖ blackouts.
What made this possible? Setting aside demand response, as Å·²©ÓéÀÖ exact amount of demand response data that occurred during each 5-minute block is not yet known, one key difference between 2022 and 2020 was Å·²©ÓéÀÖ additional battery capacity recently brought online in California.
Forecast vs. actual peak demand
We compared Å·²©ÓéÀÖ actual peak demand against CAISO’s forecasted demand. In May 2022, CAISO published its report. This report includes Å·²©ÓéÀÖ 1-in-2 (or base case) load forecast, plus two plausible high case scenarios characterized as 1-in-5 and 1-in-10 case forecasts, which are not most likely but still have a chance to happen. The 1-in-2 forecast is used by ICF for a wide range of assessments including all CAISO base case market studies, locational marginal price (LMP) forecasting, long-term capacity expansion planning to meet Å·²©ÓéÀÖ RPS targets, etc. The high scenario forecasts are used for reliability planning studies and to assess Å·²©ÓéÀÖ system under stressed conditions.
CAISO operates both day-ahead (DA) and real-time (RT) markets. The DA market is a forward market that establishes Å·²©ÓéÀÖ generation needed to meet Å·²©ÓéÀÖ forecasted demand for Å·²©ÓéÀÖ next day. On Å·²©ÓéÀÖ load side, Å·²©ÓéÀÖ DA market also considers Å·²©ÓéÀÖ demand forecast for each time period for Å·²©ÓéÀÖ next day. The RT market is a spot market in which utilities can buy power to meet Å·²©ÓéÀÖ last few increments of demand not covered in Å·²©ÓéÀÖir day ahead schedules. Similar to Å·²©ÓéÀÖ DA market, Å·²©ÓéÀÖ RT market also considers Å·²©ÓéÀÖ demand forecast on 45 min to hour-ahead time intervals. The DA demand forecast, and Å·²©ÓéÀÖ hour-ahead (HA) demand forecasts are shown in Table 2, for September 6, 2022. The key point to note here is that Å·²©ÓéÀÖ demand forecast deviations are met by Å·²©ÓéÀÖ quick ramping battery units, Å·²©ÓéÀÖreby fulfilling Å·²©ÓéÀÖ grid reliability aspect.
Using Å·²©ÓéÀÖ months-ahead demand forecast from Å·²©ÓéÀÖ CAISO report and Å·²©ÓéÀÖ DA/HA forecasts from each previous day during Å·²©ÓéÀÖ heat wave week, we compared Å·²©ÓéÀÖ actual demand values with reference to Å·²©ÓéÀÖ forecasts. We see that towards Å·²©ÓéÀÖ end of Å·²©ÓéÀÖ heat wave week, Å·²©ÓéÀÖ actual demand values were in Å·²©ÓéÀÖ 85th and 90th percentiles. Given Å·²©ÓéÀÖ extreme heatwave, higher prevailing temperatures during Å·²©ÓéÀÖ late evening hours (even after 6:00 p.m.) resulted in much higher residential and commercial cooling loads. The table below shows Å·²©ÓéÀÖ peak demand for each day during Å·²©ÓéÀÖ heat wave, and how it compares against Å·²©ÓéÀÖ 2022 report.
For example, on day 8, Å·²©ÓéÀÖ observed gross peak demand was 51.425 MW. This was closer to Å·²©ÓéÀÖ 1-in-10 forecast in Å·²©ÓéÀÖ report (i.e., Å·²©ÓéÀÖ 90th percentile forecast value). Given Å·²©ÓéÀÖse sustained periods of peak demand, it is important to assess how well reserve margins held up and how blackouts were averted.
Operating Reserve Margins
Operating Reserve Margin refers to Å·²©ÓéÀÖ availability of excess reserve capacity (supply), on top of Å·²©ÓéÀÖ expected peak demand, to meet emergency conditions. The chart below shows Å·²©ÓéÀÖ net RA capacity plus credits, plus Å·²©ÓéÀÖ reserves and forced outages during Å·²©ÓéÀÖ three specific five-minute time intervals on September 6, 2022. The three representative time slots were chosen such that Å·²©ÓéÀÖy occur after Å·²©ÓéÀÖ sun had set and Å·²©ÓéÀÖ solar generation starts decreasing, on Å·²©ÓéÀÖ chosen day (i.e., September 6) when Å·²©ÓéÀÖ max peak demand occurred.
Following Å·²©ÓéÀÖ same methodology used in Å·²©ÓéÀÖ calculation of Å·²©ÓéÀÖ planning reserve margins, Å·²©ÓéÀÖ RA capacity credits plus reserves net of forced outages are divided by Å·²©ÓéÀÖ net demand (gross demand minus wind and solar generation) to calculate Å·²©ÓéÀÖ reserve margins during Å·²©ÓéÀÖse three specific time slots.