Integrating DERs with the Electric Grid of the Future_Pollock 9-2016
- 1. Integrating Distributed Energy Resources with the Electric Grid of the Future balancing reliable, affordable safe, power with clean energy ambitions
- 2. © PA Knowledge Limited 2 MORE ENERGY IS BEING SUPPLIED BY A PORTFOLIO OF LOCAL, DISTRIBUTED RESOURCES (GENERATION AND LOAD) CUSTOMERS RECEIVED ELECTRICITY VIA CENTRAL GENERATION, TRANSMISSION AND DISTRIBUTION The Grid is undergoing a massive transformation Decentralized is becoming the new normal… HISTORY TODAY
- 3. © PA Knowledge Limited 3 3 OWNERSHIP Typically owned by customers or developers POWER FLOW Most DERs are designed to inject power back into the grid. Some have even more dynamic operations (e.g., energy storage) SIZE Typically too small to participate in the wholesale market on a standalone basis LOCATION Interconnected with the distribution system, most often behind-the- meter of a utility customer Driven by a new class of distributed assets You might be a DER if… …However most of these resources are “invisible” to utilities
- 4. © PA Knowledge Limited 4 575% GROWTH IN DISTRIBUTED SOLAR FROM 2012 TO 2015 IN NEW YORK STATE Which have grown exponentially in recent years We’re not in California anymore… 57 132 158 73 43 20 Central Hudson Con Ed Niagara Mohawk NYSEG O&R RG&E >450 MW of PV INTERCONNECTED TODAY
- 5. © PA Knowledge Limited 5 And we’re just getting started… More than 3,000 MW of distributed solar is in the interconnection queue 727 58 1,418 1,123 502 78 Central Hudson Con Ed Niagara Mohawk NYSEG O&R RG&E Legacy Net Metering Caps (6% of 2005 Peak Demand)
- 6. © PA Knowledge Limited 6 So how did we get here? The evolution of an industry transformation 2014 The 2014 New York State Energy Plan called for “a vibrant private sector market with communities and individual customers to create a dynamic, affordable clean energy economy.” New York State Energy Plan In 2014, the New York State Public Service Commission opened the “Reforming the Energy Vision” proceeding which had the objectives of: • Enhancing customer knowledge. • Animating markets • Improving system efficiency • Diversifying fuel mix • Reducing emissions Introducing REV Regulatory Policy Clarified that utilities will serve as Distributed System Platform (DSP) Providers and the functions that the DSPs will provide REV Track 1 Order Plans filed by each of the investor-owned utilities detailing the capital and operating expenditures required to provide DSP functionality Distributed System Implementation Plans 2015 Ratemaking and Utility Revenue Clarified the way utilities, serving as Distributed System Platform Providers, will earn revenues through Platform Service Revenues, Earnings Adjustment Mechanisms and Traditional Cost Recovery REV Track 2 Order 2016 2014 Joint DSIP
- 7. © PA Knowledge Limited 7 …and what does the path forward look like in New York? How the parts fit together Keeping the lights on today Grid Operations Providing accurate pricing signals and incentives for investments which keep the lights on Market Operations Ensuring the lights stay on in the future Integrated System Planning1 2 3 The Distributed System Platform and its three core functions are integral to achieving REV’s objectives…
- 8. © PA Knowledge Limited 8 Doing so requires changing a paradigm In a period of increasing uncertainty <60% OF THE GRID IS UTILIZED TO ITS FULL CAPABILITES PEAK DEMAND only occurs a few days each year, for a few hours on each day TODAY
- 9. © PA Knowledge Limited 9 The traditional distribution planning process Revision or renaissance? Develop peak load forecast for each distribution system component taking into account load growth and load reductions (e.g., DERs) Forecasting 1 Recommend cost-effective system enhancements which may include operational measures, short-range projects, or long-range projects to address any shortfall in capacity Recommendations 3 Evaluate future ability of those components to meet peak load reliably and safely Analysis 2
- 10. © PA Knowledge Limited 10 Planning for distributed energy New factors to consider in the planning process The degree to which a resource is available on a distribution system component during a period of peak demand Coincidence The degree to which a resource can be relied on - either through historical observation or modelling (e.g., backcasting) to meet peak demand Availability
- 11. © PA Knowledge Limited 11 Considering DERs in the load forecast Not every resource is equal 1 Which element of the power delivery system are you planning to? Peak demand occurs at varying times on different components, which compose the distribution system (e.g., substations, transformers, and circuits). Utilities typically plan for the ‘non-coincident’ peak on each piece of equipment. 2 What is the rating of that equipment? Distribution planners must ensure that there is adequate capacity on each component to prevent overloads during both normal operations and contingency situations. 3 How much DER capacity is interconnected with that component? It is important to consider not only sources of new load when conducting a load forecast (e.g., new development, but also load reductions which may occur from DERs (e.g., demand response, distributed generation, and energy efficiency). 4 How much DER capacity should be counted in the load forecast? In some instances, such as with solar PV, not all capacity should be considered equally. For example, on an evening peaking circuit, solar provides limited benefit for meeting peak demand.
- 12. © PA Knowledge Limited 12Capitalist Slides TODAY Most small PV does not require dedicated metering and telemetry or smart inverters – utilities therefore have limited visibility into operations BACKCASTING Allows planners to simulate production of PV by modelling output based on historical sky conditions to determine how much PV should be counted in the load forecast 1% 9% 24% 38% 49% 59% 62% 62% 59% 51% 40% 27% 14% 2% How do you forecast what you can’t see? Backcasting and other new tools in the toolkit
- 13. © PA Knowledge Limited 13 This is just the beginning of a long journey That will present new challenges and opportunities VISIBILITYUNCOORDINATED TIME CONTROL As DER penetration increases it will be more critical to Integrate Grid Operations and System Planning Grid Operations Integrated System Planning DERPENETRATION
- 14. © PA Knowledge Limited 14 @ZDPOLLOCK Zach.Pollock@PAConsulting.com paconsulting.com/our-thinking/next-generation-utility/