Illustrative Examples of Reactive Capability (DCurves) and Corresponding Compensation Under Packages G and E

Illustrative Examples of Reactive Capability (D-
Curves) and Corresponding Compensation under

Packages G and E
Darrell Frogg
Generation Department
Reactive Power Compensation Task Force
November 29, 2022
www.pjm.com | Public PJM©2022

Summary of Package E Compensation Metric E
Flat rate: a generator’s revenue is MVAR_Capability*Rate D-Curve
• For illustration, assume Rate is $1,000/MVAR-yr Q2 = Qmax
(hypothetically). @ Pmin
Withdrawing VARs Injecting VARs

Q1 = Qmax
A generator’s D-curve shows the maximum reactive @ Pmax
MVAR capability
capability (both injecting & withdrawing VARs, or “Q”) as a
Pmax = MFO
function of real power (i.e., MW or “P”) output.
Pmin
• In general, machine designs mean more MW output means less
MVAR capability.
MW
MVAR_Capability_E is [average of Q1 and Q2] minus
output
[average of Q3 and Q4]. This basically amounts to:
injecting capability (averaged at Pmax and Pmin) plus
withdrawing capability (averaged at Pmax and Pmin). Q3 = Qmin
• VAR withdrawal is negative Q, hence the “minus”.
Q4 = Qmin @ Pmax
• Pmin is the lowest power the generator is capable of making while
online (not less than zero). @ Pmin
• Pmax is Maximum Facility Output or the functional equivalent.
www.pjm.com | Public 2 PJM©2022

Summary of Package G Compensation Metric G
Flat rate: a generator’s revenue is MVAR_Capability*Rate D-Curve
• For illustration, assume Rate is $1,000/MVAR-yr
(hypothetically).
Withdrawing VARs Injecting VARs

Q2
Package G would use precisely the same reactive rate as Q1
MVAR capability
Package, without adjustment. 5 l e a d/lag
0. 9
a ctor
Pmax = MFO
f
Pmin
pow e r
MVAR_Capability_G is [average of Q1-Q1o and Q2-Q2o] Q2o Q1o
minus [average of Q3-Q3o and Q4-Q4o].
Q4o MW
Qo is the “standard obligation” = 0.95 lead/lag power factor Q3o output
at high side. This amounts to:
injecting capability above obligation (averaged at Pmax and Q3

Pmin) --plus--
Q4
withdrawing capability above obligation (averaged at Pmax
and Pmin).
• VAR withdrawal is negative Q, hence the “minus”.

Package G-PJM-Capability Above Standard Obligation G
During Transition After Transition
MVAR capability
Q2 Q2
Q1 Q1
l e ad/lag
0.95 factor
r
powe
Pmax
0 MW MW output 0 MW
Pmin
Q3 Q3
Q4 Q4
• Same as Package E during transition period. • Transition period is:

• After transition period, same as Package E, – Option I: 5 years
except compensates only capability above – Option II: after 90% of existing Schedule
standard obligation (i.e., above 0.95 2 filed rates have rolled off (e.g., only 29
lead/lag power factor). or fewer remain)

Calculating Standard Obligated Capability For Package G

Comparative Summary of Compensation Examples
(Details for Each Example on Following Slides)
Package E Package G
Steam $81,500 $32,500
CT $76,500 $17,500
CT w/ Condensing Mode $81,500 $48,500
Solar $78,000 $45,000
Solar w/ Condensing Mode $78,000 $45,000
Battery $133,000 $100,000
DC-Coupled Hybrid $78,000 $45,000
New Tech Wind $78,000 $45,000
Old Tech Wind $66,000 $33,000
Old Tech Wind Fixed PF $33,000 $0
Hypothetical rate of $1,000/MVAR-yr

Package G (“Pay Capability in Excess of
Standard Obligation”) Examples

Illustrative Example of a 100 MW Steam Generator G
VAR injection capability: D-Curve
• Q1@Pmax (100 MW) = 40 MVAR
MVAR capability
Difference:
• Q1o@Pmax (100 MW) = 33 MVAR 7 MVAR Q2
• Q2@Pmin (50 MW) = 50 MVAR Difference: Q1
• Q2o@Pmin (50 MW) = 16 MVAR 34 MVAR
l e ad/lag
0.95 factor
VAR withdrawal capability: Q1o powe
r
• Q3 at Pmax = -33 MVAR Difference: 0 Q2o
MVAR 0 MW MW
• Q3o@Pmax = -33 MVAR Q4o
Q3o output
• Q4 at Pmin = -40 MVAR
Pmin
Difference:
• Q4o@Pmin = -16 MVAR -24 MVAR Q3
• Average(7,34) - Average(0,-24) = 32.5
Pmax
• Compensation = $1,000*32.5 = Q4
$32,500/yr

Illustrative Example of a 100 MW Combustion Turbine G
• Q1@Pmax (100 MW) = 40 MVAR
MVAR capability
Difference:
7 MVAR
Pmax
• Q1o@Pmax (100 MW) = 33 MVAR Q2
• Q2@Pmin (80 MW) = 45 MVAR Difference:
Q1
Pmin
l e ad/lag
0.95 factor
VAR withdrawal capability: Q1o power
Q2o
• Q3 at Pmax = -33 MVAR Difference:
0 MVAR 0 MW MW output
• Q3o@Pmax = -33 MVAR Q3o
• Q4 at Pmin = -35 MVAR Difference: Q4o
• Q4o@Pmin = -26 MVAR -9 MVAR Q3
• Average(7,19) - Average(0,-9) = 17.5 Q4
• Compensation = $1,000*17.5 =
$17,500/yr

Illustrative Example of a Combustion Turbine
w/ Condensing Mode
G
• Q1@Pmax (100 MW) = 40 MVAR
MVAR capability
Difference:
Pmax
7 MVAR
• Q1o@Pmax (100 MW) = 33 MVAR
Q2
Q1
Pmin
l e ad/lag
0.95 factor
VAR withdrawal capability: Q1o power
Q2o
0 MVAR MW output
• Q3o@Pmax = -33 MVAR Q4o Q3o
• Q4 at Pmin = -40 MVAR
Pmin
Difference:
• Q4o@Pmin = 0 MVAR -40 MVAR Q3
• Average(7,50) - Average(0,-40) = 48.5
• Compensation = $1,000*48.5 = Q4
$48,500/yr 0 MW

Illustrative Example of a Solar Plant
(Same as New Tech Wind and DC-Coupled Hybrid) G
MVAR capability
• Q1@Pmax (100 MW) = 33 MVAR Difference:
0 MVAR
• Q1o@Pmax (100 MW) = 33 MVAR
Q2
Q1 l e ad/lag
5
VAR withdrawal capability: Q1o 0.9wer factor
po
Pmax
Q2o
• Q3o@Pmax = -33 MVAR 0 MVAR Q4o MW output
Pmin
• Q4 at Pmin = -45 MVAR Difference:
Q3o
• Q4o@Pmin = 0 MVAR -45 MVAR Q3
• Average(0,45) - Average(0,-45) = 45
• Compensation = $1,000*45 = $45,000/yr
Q4

Illustrative Example of a Battery G
• Q1@Pmax (100 MW) = 33 MVAR Difference: Q2 / lag
a d or
• Q1o@Pmax (100 MW) = 33 MVAR 0 MVAR
5 l act
e
f
0.9 wer
Pmin
• Q2@Pmin (0 MW) = 100 MVAR Difference: po
100
Q1
• Q2o@Pmin (0 MW) = 0 MVAR Q1o
MVAR
Pmax
VAR withdrawal capability:
0 MVAR Charging MW output
• Q3o@Pmax = -33 MVAR
Pmin
• Q4 at Pmin = -100 MVAR Difference:
• Q4o@Pmin = 0 MVAR -100 MVAR Q3o
Q3
• Average(0,100) - Average(0,-100) = 100
• Compensation = $1,000*100 = $100,000/yr
Q4
Illustrative Example of Old-Technology Wind Plants G
• Old tech with full capability fixed at +/-33
MVAR regardless of power:
– 0 excess at Pmax, 33 MVAR excess lead and lag at
Pmin  $33,000
• Old tech with controller set to only provide 0.95

lead/lag capability:
– 0 excess capability above obligation  $0

Package E (“Pay Full Capability”) Examples
(Same As Prior Meeting)

Illustrative Example of a 100 MW Steam Generator E
• VAR injection capability: D-Curve
– Q1 at Pmax (100 MW) = 40 MVAR
MVAR capability
– Q2 at Pmin (50 MW) = 50 MVAR
Q2
• VAR withdrawal capability: Q1
– Q3 at Pmax = -33 MVAR
– Q4 at Pmin = -40 MVAR
Pmax
• Average(40,50) - Average(-33,-40) = 81.5
• Compensation = $1,000*81.5 = $81,500/yr 0 MW MW output
Typical interconnection agreements require a minimum
Pmin
reactive capability that amounts to roughly 1/3d of MFO.
In theory, the “nose” of the D-curve is typically not Q3
available.
Q4
Synchronous machine designs generally have lower VAR
withdrawal capability than injection capability.

Illustrative Example of a 100 MW Combustion Turbine E
D-Curve
• VAR injection capability:
MVAR capability
– Q1 at Pmax (100 MW) = 40 MVAR
Q2
– Q2 at Pmin (80 MW) = 45 MVAR Q1
• VAR withdrawal capability:
– Q3 at Pmax = -33 MVAR
Pmin
– Q4 at Pmin = -35 MVAR
Pmax
• Average(40,45) – Average(-33,-35) = 76.5 0 MW MW output
• Compensation = $1,000*76.5 = $76,500/yr
A CT might have a narrower dispatchable range than Q3

a steam generator, which might reduce the reactive Q4
capability available to PJM.

Illustrative Example of a Combustion Turbine
w/ Condensing Mode
E
D-Curve
A synchronous machine generator with
MVAR capability
“condensing mode” can operate at 0 MW.
• VAR injection capability: Q2 Q1
– Q1 = 40 MVAR
– Q2 = 50 MVAR
Pmax
– Q3 = -33 MVAR 0 MW MW output
– Q4 = -40 MVAR
Pmin
• Average(40,50) – Average(-33,-40) = 81.5
• Compensation = $1,000*81.5 = $81,500/yr Q3
Q4

Illustrative Example of a Solar Plant E
MVAR capability
– Q1 = 33 MVAR
– Q2 = 45 MVAR Q2
– Q3 = -33 MVAR Q1
– Q4 = -45 MVAR
Pmax
• Average(33,45) – Average (-33,-45) = 78
• Compensation = $1,000*78 = $78,000/yr MW output
Pmin
Inverter reactive capability matches power capability
(they have a circular D-curve at the inverter
terminals), however high impedance between PJM Q3
and large solar farm inverters reduces the reactive
capability. Q4

Illustrative Example of a Solar Plant
w/ Reactive at Night Capability E
MVAR capability
– Q1 = 33 MVAR
– Q2 = 45 MVAR Q2
– Q3 = -33 MVAR Q1
Qnight1
– Q4 = -45 MVAR
Pmax
• Average(33,45) – Average (-33,-45) = 78
Pmin
Reactive capability at 0 MW at night might be lower
than capability at 0 MW during the day (i.e., when Qnight2
dispatched to 0 MW). Therefore, no change vs. Q3
previous example.
Q4

Illustrative Example of a Battery E
– Q1 = 33 MVAR Q2
– Q2 = 100 MVAR
Pmin
– Q3 = -33 MVAR
MVAR capability
– Q4 = -100 MVAR
Pmax
• Average(33,100) – Average (-33,-100) = 133
• Compensation = $1,000*133 = $133,000/yr Charging MW
Battery inverters would be located close to the POI,
with little impedance to PJM. The full circular inverter
capability is therefore available to PJM.
Q4
Illustrative Example of a Solar-Battery Hybrid
(Shared Inverters) E
– Q1 = 33 MVAR
– Q2 = 45 MVAR
Q2
Pmin
– Q3 = -33 MVAR
MVAR capability
– Q4 = -45 MVAR
Pmax
• Average(33,45) – Average (-33,-45) = 78
• Compensation = $1,000*78 = $78,000/yr Charging MW Discharging
This hypothetical solar-battery hybrid uses the solar
inverters to operate the batteries. It is the same as
the standalone solar example, except also has
charging MW.
Q4

Illustrative Example of New-Technology Wind Plant E
MVAR capability
– Q1 = 33 MVAR
– Q2 = 45 MVAR Q2
– Q3 = -33 MVAR Q1
– Q4 = -45 MVAR
Pmax
• Average(33,45) – Average (-33,-45) = 78
Pmin
New wind generator technology is fully inverter-
based, similar to solar. This result is the same as the Q3
solar example.
Q4

Illustrative Example of Old-Technology Wind Plant
w/ Full Reactive Capability at All Times
E
MVAR capability
– Q1 = 33 MVAR
– Q2 = 33 MVAR
Q2 Q1
– Q3 = -33 MVAR
– Q4 = -33 MVAR
Pmax
• Average(33,33) – Average (-33,-33) = 66
• Compensation = $1,000*66 = $66,000/yr
Pmin
MW output
Old wind generator technology is only partly inverter
based. They don’t use the generators for reactive, Q4 Q3
instead using dedicated equipment that doesn’t vary
with power output..

Illustrative Example of Old-Technology Wind Plant
w/ Fixed Power Factor Control Only as-per ISA
E
MVAR capability
– Q1 = 33 MVAR
– Q2 = 0 MVAR
– Q3 = -33 MVAR Q1
– Q4 = -0 MVAR
Pmax
• Average(33,0) – Average (-33,-0) = 33 Q2
Q4
Pmin
This example’s dedicated VAR equipment was
programmed to only provide reactive capability
required by the ISA, which is a fixed power factor that Q3
drops with lower MW. This is consistent with the ISA
power factor obligation, but does not provide the full
capability of the equipment.


Illustrative Examples of Reactive Capability (DCurves) and Corresponding Compensation Under Packages G and E

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Illustrative Examples of Reactive Capability (DCurves) and Corresponding Compensation Under Packages G and E

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Illustrative Examples of Reactive Capability (D-

Curves) and Corresponding Compensation under

www.pjm.com | Public PJM©2022

Withdrawing VARs Injecting VARs

www.pjm.com | Public 2 PJM©2022

Withdrawing VARs Injecting VARs

injecting capability above obligation (averaged at Pmax and Q3

www.pjm.com | Public 3 PJM©2022

• Same as Package E during transition period. • Transition period is:

www.pjm.com | Public 4 PJM©2022

www.pjm.com | Public 5 PJM©2022

Hypothetical rate of $1,000/MVAR-yr

www.pjm.com | Public PJM©2022

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

• Old tech with controller set to only provide 0.95

Hypothetical rate of $1,000/MVAR-yr

www.pjm.com | Public PJM©2022

Hypothetical rate of $1,000/MVAR-yr

A CT might have a narrower dispatchable range than Q3

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

Hypothetical rate of $1,000/MVAR-yr

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