The Operational and Market Benefits

of HVDC to System Operators

PRESENTED BY
Johannes P. Pfeifenberger (Brattle)
Cornelis A. Plet (DNV)
PRESENTED AT

ACORE Webinar

SEPTEMBER 19, 2023

Contents
1. Executive Summary
2. HVDC Technology
3. Case Studies of HVDC Transmission
4. HVDC Planning
5. Challenges to the Utilization of HVDC
6. Recommendation

This presentation is based on the report, The Operational and Market

Benefits of HVDC to System Operators, prepared with colleagues at The
Brattle Group and DNV and input from industry participants. The American
Council on Renewable Energy (ACORE), GridLab, Clean Grid Alliance, Grid
United, Pattern Energy, and Allete commissioned the work.
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Executive Summary
HVDC transmission technology has evolved dramatically over the last 5-10 years
– HVDC offers higher-capacity, longer-distance, lower-loss transmission on a smaller footprint than AC
– The development of voltage-sourced converter (VSC) technology has also offered dramatic
improvements in HVDC capabilities
– These VSC-based capabilities are increasingly needed to enhance the existing AC grid
Internationally, approximately 50 GW of VSC-HVDC transmission projects are in operation
today and approx. 130 GW planned or under development through the end of the decade
– North America accounts for only 3% of all VSC systems in operation worldwide and (almost exclusively
due to merchant developers) for approx. 30% of planned and proposed VSC systems
U.S. system operators less familiar with HVDC can benefit from the experience gained overseas
(particularly in Europe) … but significant planning, supply chain, operational, and regulatory
challenges need to be addressed
– The report provides a primer on HVDC technology, documents available capabilities and experience,
addresses misconceptions, and offers recommendations to collaboratively address the identified
challenges brattle.com | 2
High Voltage Direct Current (HVDC) technology
A reliable and effective electrical power transmission solution since the late 1890s
Converter Converter
AC DC DC AC

AC Voltage DC Voltage AC Voltage

Time Time
~0 Hz
60 Hz 60 Hz
Time
Alternating Current (AC) Direct Current (DC) Alternating Current (AC)

No reactive power  Long distance transmission

Overhead or underground Less right of way = Smaller environmental
No skin effect  Optimal use of conductors and community impacts
Converters  Power flow control brattle.com | 3
HVDC use cases
Transmission
Optimal use of reinforcement within Long distance
Balancing Area
right-of-way bulk transport
Undergrounding
Transmission
Water
City centre reinforcement between
crossings
infeed Balancing Areas
Renewable Oil & Gas
gen-tie platform
supply
Overlay bulk
transmission grids

Island supply
Back to back
converters Asynchronous
transmission
Asynchronous reinforcement

connection Controllability

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A significant amount of experience exists
The majority of HVDC transmission capacity has been added in the last 5-10 years with
more planned. Much of it is (or is planned to be) used to realize AC grid reinforcements

HVDC transmission capacity installed worldwide

600

500
Multi-purpose
Offshore wind
400
City centre infeed
Capacity [GW]

300 Oil & Gas Platform supply

Onshore wind
200 Interconnector
Transmission
100 Island supply
Back-back
0

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HVDC converter technologies
Many different converter technologies exist, but growth is driven by modular
multi-level voltage source converter technology

HVDC Installed and Planned Converter Types

Converters 600

500
Current Voltage
sourced sourced
converters converters 400

Capacity [GW]
(CSC) (VSC)
300
Line Capacitor
Two/Three- Cascaded Modular 200
commutated commutated
level two-level multi-level
converter converter
(2L or 3L) (CTL)
(CCC) (MMC)
(LCC) 100

0
Half-bridge Full-bridge

1970
1977
1982
1985
1988
1991
1994
1998
2001
2004
2007
2010
2013
2016
2019
2023
2026
2029
2032
(HB) (FB)
VSC - 2L VSC - 3L VSC - CTL VSC - MMC-HB VSC - MMC-FB

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Grid operation services (with VSC vs. LCC converters)

Reliability &
Transmission Grid operations Autonomous Power quality Contingency
Market
functions support line dispatch support operations
optimization

Real power control Synthetic inertia External Power Power oscillation Run-back / run-up AC grid power flow
Both LCC & VSC

(Tracking) Control damping schemes optimization

Reactive power Frequency response
control (static) AC Line Emulation Emergency energy Resource adequacy,
Regulation,
imports capacity imports
ramping, spinning
reserves Intertie
optimization

AC voltage and Voltage support / AC phase balancing Black-start and Frequent and rapid
VSC only

frequency control Reactive power system restoration power flow reversal

AC harmonics
control (dynamic)
Weak and islanded filtering Weak grid
grid connections connections

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Case studies of HVDC experience
The report present 21 case studies of HVDC transmission experience in
four areas of interest:
A. Experience with planning and procuring HVDC transmission overlays

B. Experience with HVDC Transmission Planning in North America

C. Operational experience with specific HVDC grid service capabilities

D. Experience with regional and interregional HVDC market integration

(Only a subset of these case studies is summarized on the next slides)

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Germany’s 10 GW of HVDC projects and 22 GW of procurements
German grid operators are constructing major new
HVDC lines designed to enhance the existing grid:
 4 GW underground SuedOstLink project (2027)
 2+2 GW underground SuedLink project (2028)
 2 GW multi-terminal VSC HVDC link consisting of:
– 2 GW Ultranet project, which converts one circuit of a multi-
circuit AC overhead line to HVDC (2027)
– 2 GW underground A-Nord link (2027)

TenneT also announced its “Target Grid” HVDC overlay

 Already awarded €23 billion in contracts for 22 GW of HVDC
systems, including fourteen pairs of standardized 2 GW
525kV HVDC converters
Note: Scottish & Southern Electricity Networks (SSEN)
similarly procured five sets of 2 GW 525 kV HVDC systems to Source: INMR, PD Measurements for HVDC Cable Projects, December 30, 2022.
ensure delivery by 2030
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Terna’s HVDC experience and “Hypergrid” proposal
The Italian Grid operator, Terna, gained substantial
experience with new HVDC technologies, including
Proposed
 500 kV, 600 MW 260-mile LCC-HVDC submarine cable Hypergrid
between Montenegro and Italy
 2 × 600 MW MW, 230-mile underground VSC-HVDC link between
Italy and France
 Conversion of the aging 200 kV, LLC-based HVDC submarine multi-
terminal link to utilize modern 400 MW VSC-HVDC technology
 The performance of the existing HVDC links has been satisfactory
and Terna reports high availability of the converter equipment

Based on lessons learned and positive operational

experience, Terna committed to its €11 billion “Hypergrid”:
 Existing onshore AC lines converted to high-capacity HVDC lines
 High-capacity HVDC submarine cables; and
 Additional AC grid upgrades Source: Terna, Terna: 2023 Development Plan for the National Electricity Grid
Presented, Press Release, March 15, 2023 brattle.com | 10
Experience with specific HVDC capabilities
These examples show that significant experience exists with advanced AC grid support
capabilities
NEMO link • Frequency support and emergency energy
Belgium - UK
NordLink • Auto-reclosure for overhead line fault clearing and automatic bi- to monopole change
Norway - Germany
Maritime Link • HVDC runback schemes for prevention of overloading of AC lines
Canada
Fenno-Skan • Mitigate AC stability constraints and improve system transfer capability
Sweden - Finland
FIL • “AC line emulation” and AC grid loss and congestion reduction
France – Italy
INELFE • Power Oscillation Damping
France - Spain
Skagerrak 4 • Black-start and system-restoration services
Norway - Denmark
ULTRAnet • Converting existing AC overhead line circuits to HVDC
Germany
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Experience with HVDC transmission in North America
North American HVDC Projects (Existing and Planned/Proposed) CAISO leads the U.S. in planning and
utilizing HVDC transmission:
 First VSC-MMC HVDC line (TransBay, 2013)
 10 VSC-HVDC systems evaluated in
transmission planning; 2 approved
 Full co-optimization of HVDC transmission
with generation in day-ahead and real-
time markets since 2017
 Interregional optimization in WEIM
 Subscriber PTO proposal (merchant lines)

Most U.S. HVDC transmission

projects proposed by merchant and
OSW developers (not system
operators) brattle.com | 12
HVDC transmission studies

Developing phase
Phase 1 Phase 2 Phase 3

Transmission Feasibility Specification

Expansion Plan Studies Studies

Phase 4 Phase 5 Phase 6

Tendering Project Commissioning

Execution

 IEEE HVDC & FACTS Subcommittee report (PES-TR86): how relevant studies in each planning phase
should evaluate HVDC projects, including in each of the shown six planning and project development
phases. System operators and owners will need to be involved in all study phases shown.

Source: IEEE PES-TR86 Technical Report “Studies for Planning HVDC,” February 2021. brattle.com | 13
HVDC transmission studies (cont’d)
Similar to AC transmission planning: HVDC systems need to be analyzed through a
number of studies, sequentially adding more detail, scope, system performance, model
fidelity, and temporal granularity
Market analysis Steady-state analysis RMS analysis EMT analysis RTS analysis
• Security constrained • Voltage stability / circuit • Transient stability • Electro-magnetic behaviour • Real-time behaviour
economic dispatch breaker ratings • Electromechanical • Control & protection • Control & protection
• Market studies • Load flow / short circuit models behaviour replica performance
• Production cost models studies • 60 Hz models • Instantaneous voltages and • Model validation
• 60 Hz models currents • Hardware-in-the-loop
• Dynamic studies studies
• ~0 Hz – kHz models • ~0 Hz – kHz models

Years - hours Minutes - seconds Seconds Seconds - microseconds Seconds - microseconds

Averaged generic high-level models Validated vendor specific models Control & protection hardware replicas
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Considering & quantifying HVDC benefits in transmission planning
HVDC-VSC Capability Planning Benefits / Options for Quantification
1. Flow control/market optimization • Estimate value of congestion relief and loss reduction on AC grid
with nodal production cost model that can optimize HVDC
2. Dynamic reactive power and voltage control • Avoided cost of STATCOMs, SVCs or synchronous condensers
3. Lower long-distance transfer losses • Market value of avoided losses on transmitted energy
4. Smaller footprint/right-of-way (ROW), • Lower cost for right-of-way (e.g., 50ft less than for 765kV AC); lower
including for undergrounding option cost of undergrounding; lower permitting risks
5. Reliability benefits (fault ride-through, lower • Increased transfer capacity; reduced cost of contingency reserves;
N-1 contingency for bipoles, voltage support) avoided AC equipment costs (e.g., additional lines, STATCOMs)
6. AC dynamic stability; power oscillation • Avoided cost of power system stabilizers/supplemental power
dampening; mitigate stability constraints on oscillation damping (POD) controllers on batteries, SVCs,
AC grid STATCOMs, switched shunt equipment, synchronous condensers,
etc.
• Value of congestion relief on proxy constraints
7. Grid forming, grid services, synthetic inertia, • Market value or avoided cost of providing the grid services through
blackstart/restoration, etc. conventional means
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Common misconceptions about modern HVDC technology
Placing VSC-HVDC
VSC converters have
VSC technology is not yet VSC converters have high converters from different
lower reliability and
sufficiently mature losses vendors close to one
availability
another is not reliable

HVDC power electronic

VSC-HVDC technology is MMC-VSC HVDC systems HVDC transmission
switches cannot handle
not suitable for overhead cannot handle overhead systems have no
the surge voltages from
transmission lines line faults overload capability
lightning strikes

VSC-HVDC converters Inverter-based resources,

have the same fault- such as HVDC, cannot
HVDC circuit breakers do HVDC technology is
related issues as legacy provide black-start
not yet exist “more complicated”
inverters, such as services because of large
“momentary cessation” in-rush currents

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Challenges to the utilization of HVDC capabilities

Outdated, incomplete and uncoordinated technical standardization

– Existing standards do not fully take into account characteristics of modern HVDC transmission technology.
 MMC-VSC converter technology
 Underground and submarine HVDC cable technology
– Some ongoing standardization initiatives are overtly conservative and reduce ability to realize VSC-HVDC benefits
– Existing standards do not cover all HVDC applications
 IEEE P2800 does not cover offshore converter AC performance requirements
 No operational guideline for DC grid behavior
– HVDC standardization is not coordinated across regions and between functional disciplines
 Health, safety, and environment
 System performance and design
 Technology & equipment (to ensure modularity and compatibility)
 Test, measurement, & analysis
 Communication and Cyber security

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Challenges to the utilization of HVDC capabilities (cont’d)

Supply chain challenges Planning, regulatory, and market-design

– Small number of HVDC suppliers challenges
– Limited production capacity of the vendor in terms – Lack of proactive, multi-value planning processes
of engineering staff, number of production lines, that are able to capture long-term HVDC-related
limited transport and installation equipment, values
availability of testing facilities – Lack of grid codes to ensure that system operators
– Technical maturity of the vendors’ HVDC are able to take advantage of the technology’s
technology grid-supporting HVDC capabilities
– Project management experience of the vendor – Limited operator experience
– Country of origin of the vendor and the resulting – Lack of market-clearing software able to co-
export restrictions optimize generation and controllable HVDC
– Sub-supplier/partnership strategy of vendors transmission facilities

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Recommendations: near-term priorities
1. Develop and implement “grid codes” for interconnected/embedding HVDC lines (as ENTSO-E has done)
that allow grid operators to take full advantage of modern HVDC capabilities
2. Adapt grid planning tools and multi-value transmission planning frameworks to take full account of
modern HVDC capabilities
3. Provide training for planning, engineering, and grid operations staff so they are able to take advantage
of modern HVDC capabilities (rather than being focused solely on preventing problems that might be
encountered)
4. Address current supply chain challenges by building manufacturing capability through clear long-term
commitments
5. Develop standardized HVDC functional and interface requirements, and vendor compatibility
standards, taking advantage of experience gained in similar European efforts
6. Develop new regulatory and cost-recovery paradigms that can take advantage of the controllable
nature of HVDC technology (both regionally and inter-regionally), including merchant transmissions to
permit greater competition and allow for more financial risk sharing with transmission owners

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Recommendations: longer-term priorities
7. Update grid operations to be able to take full advantage of HVDC grid-service capabilities
8. Update market designs so system operators can co-optimize controllable transmission with generation
9. Implement optimization of interregional transmission capabilities that can accommodate merchant
HVDC transmission

To implement these recommendations and address the identified challenges, grid operators
and planning authorities should collaborate with:
– Transmission owners/developers
– HVDC equipment manufacturers
– North American Electric Reliability Corporation (NERC)
– Industry groups, regulators, and states
– U.S. Department of Energy (DOE) and its National Labs

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 Thank You!
Comments and Questions?

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About the Speakers
Johannes (Hannes) Pfeifenberger, a Principal at The Brattle Group, is an economist
with a background in electrical engineering and over twenty-five years of
experience in wholesale power market design, renewable energy, electricity
storage, and transmission. He also is a Visiting Scholar at MIT’s Center for Energy
and Environmental Policy Research (CEEPR), a former Senior Fellow at Boston
University’s Institute of Sustainable Energy (BU-ISE), a IEEE Senior Member, and
currently serves as an advisor to research initiatives by the U.S. Department of
Energy, the National Labs, and the Energy Systems Integration Group (ESIG).
Hannes specializes in wholesale power markets and transmission. He has analyzed
transmission needs, transmission benefits and costs, transmission cost allocations,
and renewable generation interconnection challenges for independent system
operators, transmission companies, generation developers, public power
Johannes P. Pfeifenberger companies, industry groups, and regulatory agencies across North America. He has
worked on transmission matters in SPP, MISO, PJM, New York, New England, ERCOT,
CAISO, WECC, and Canada and has analyzed offshore-wind transmission challenges
in New York, New England, and New Jersey.
Hannes.pfeifenberger@brattle.com
He received an M.A. in Economics and Finance from Brandeis University’s
+1.617.234.5624 International Business School and an M.S. and B.S. (“Diplom Ingenieur”) in Power
(webbio and publications) Engineering and Energy Economics from the University of Technology in Vienna,
Austria.
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About the Speakers
Dr. Cornelis A. Plet is Head of Department (Vice President) of DNV’s Power System
Advisory group, and is based in Canada, Toronto. He has over thirteen years of
professional experience in failure investigations, owners engineering, research &
development, and testing of transmission equipment. His current focus is on
supporting governments, TSOs, and developers to accelerate the deployment of
renewables through the development of offshore power systems and multi-
terminal HVDC transmission.
Cornelis is an active member of CIGRE and currently convenes working group JWG
B1 B3 D1.79 “Dielectric test requirements for HVDC gas insulated cable connection
assemblies” and JWG C1 B4.49 “ Offshore transmission grid planning”. Cornelis was
coordinator of the EU funded R&D project “Progress On Meshed Offshore HVDC
Transmission Networks”.
Cornelis A. Plet He holds an MEng degree in Electrical Engineering and a PhD in power electronics,
both from Imperial College London.

cornelis.plet@dnv.com
+1.416.346.6912

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