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9 Renewables Integration Through Direct ... > Wind Integration and Demand Response - Pg. 228

228 PART | II Smart Supply: Integrating Renewable & Distributed Generation Achievable participation regional regulation and spinning reserves potential 18 16 14 12 10 Pacific Mountain West South Central East South Central South Atlantic West North Central East North Central Middle Atlantic New England GW 8 6 4 2 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year FIGURE 9.12 DLC potential from FERC's AP scenario disaggregated by region. (Source: FERC [31]) WIND INTEGRATION AND DEMAND RESPONSE Illustrating DR's ability to decrease wind integration costs requires contrasting DR's evolution with the evolution of ancillary service requirements that origi- nate from wind integration. Due to the FERC AP scenario treatment of DLC relative to economic DR programs, as well as the overall diminishing cumula- tive MWs of DLC, FERC's EBAU scenario was chosen for this analysis. The evolution of ancillary service requirements associated with wind inte- gration was established with the following methodology. Smith et al. estimated the capacity required for total operating reserves to increase from 5% to 7% in a 25% RPS scenario for a four-utility combined balancing area with a peak load of about 21 GW [35]. This corresponds to a 40% increase in ancillary reserve requirements. Upper and lower bounds of total operating reserves (contingency and normal operations) in power systems range from 5% to 10% [28]. Combin- ing these facts lead to an upper and lower bound on the incremental increase in operating reserves from high wind penetration scenarios of 2% and 4% of peak system capacity. Data from Heffner's international survey of loads providing ancillary services indicates that PJM obtained operating reserves at 4.75% of peak capacity and that ERCOT obtained operating reserves at 7.5% of peak capacity [28]. The dataset also indicated that 50% of PJM's operating reserves derived from regulation and instantaneous spinning reserves and that 75% of ERCOT's operating reserves derived from regulation and spinning reserves.