AEE So CalSeptember 24, 2015

Integrating Renewables and The Distribution

Grid of the Future

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Overview

I. Industry Trends and Regulatory Drivers

II. Distribution Resources Plan

III. Vision for the 21st Electric System

IV. Grid Modernization Road Map

V. Conclusion

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Industry Trends and Regulatory Drivers

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• Renewable Portfolio Standard: Requires 33 percent of delivered power to come from renewable sources such as solar, wind and geothermal by the year 2020

• Greenhouse Gas (AB32): Requires reduction in GHG emissions to 1990 levels by 2020

• Energy Storage (AB2514): Requires 1,325 megawatts of storage by 2020

• Distribution Resource Plan (AB 327): Requires utilities to identify optimal locations for distributed resources throughout service territories

• Prioritizing environmental sustainability

• Changing customer expectations

• Accelerating technology advancement facilitating conservation and self-generation

• Increasing use of distributed energy resources and transportation electrification

• Flattening demand for electricity

Industry Trends Regulatory Drivers

Distributed Energy Resources

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Commission Goals for Distribution Resources Plan

• Supporting California’s 2030 and 2050 GHG reduction targets

• Beginning the process of moving towards full integration of DERs in distribution system planning, operations, and investments

• Modernizing the electric distribution system to accommodate two-way flows of energy and energy services throughout the IOUs’ networks

• Enabling customer choice of new technologies and services that reduce emissions and improve reliability in a cost efficient manner

• Animating opportunities for DERs to realize benefits through the provision of grid services

Creating a “plug-and-play” distribution grid for DERs

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Distribution Resources Plan

Publish Results via

Online Maps

Perform Planning Analyses

Establishing Locational Net

Benefits

Substation 1 $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000 Potential Avoided Costs

Complete Demonstration

Projects

Phase 2: 2018-2019• Determine impacts on

distribution system • Deploy sensors and

communications infrastructure

• Identify optimal locations for DER

Phase 1: 2016-2017• Develop tools and

methodologies• Share data with third parties• Plan and design sensors and

communications infrastructure

Phase 3: 2018+• Develop

procurement policy

• Enable distribution system markets

The CPUC envisions a phased approach

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Distributed Energy Resource Interconnection Maps (DERiM)

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SCE DERIM: on.sce.com/derim

Locational Net Benefits

• SCE’s objective is to identify optimal locations, likely in form of heat maps, where DERs could provide a high benefit value

• SCE’s locational net benefits methodology (LNBM) identifies DER benefit components and describes how to quantify them

• Identification and communication of locational net benefits can drive DERs to locations where they can provide the most benefit with cost effective means

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Location for Demo A - D :a. Orange County area of service

territory/ongoing activities to modernize the grid for DER integration

b. Demo C & D – leverage existing projects, PRP & IGP

Location for Demo E :c. Orange County area of service, or

another suitable location

Schedule for Demo A & B:a. Commence no later than one month after

commission approvalb. Submit final report by Q1, 2017

Schedule for Demo C,D & E:c. Commence no later than one year after

commission approvald. Submit final report by Q4, 2019

2. Demonstration and Deployment

Demonstration and Deployment

Future state based on evolving energy landscape

More automationenhances interaction of grid with customer devices & DER. Sophisticated automation schemes now possible

Prediction of DER performance facilitates increasing renewables & two-way power flow

Software tools for real time state estimation, grid simulation & optimization

Bolstered telecommunications supports increased telemetry and faster remote response

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Community Storage

Community Solar

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Vision for the 21st Century Electric System

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Grid Modernization Road Map

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2015 - 2017 2018 - 2020 2021 – 2023 +

Implement foundational Information Technology, communication systems, and system planning tools

Enhance automation and improve interoperability with Distributed Energy Resources

Optimize operation of Distributed Energy Resources and distribution market operation

Tech

nolo

gy

Capabili

ty

Advance

ment

Expect

ed

Resu

lt

GR C

Cy

cle

Align work management and develop workforce strategy

Ramp up resources and develop talent pipeline

• Compliance, safety, and reliability

• Preparation for future grid state

• Achieve increased value from DERs

• Full deployment of grid modernization

New distribution system platform for distribution market operations

SCE developed a plan to implement a phased approach. Transformation is expected to take place over multiple General Rate Case cycles

People

and

Pro

ces

s

Gri

d

Rein

forc

em

ent

Phased Investment in targeted Grid Reinforcement needed to enable plug and play grid

Conclusion

• Industry trends and regulatory changes are driving towards a low-carbon, modern, integrated grid

• Utilities will need to transform distribution system planning and operations to meet achieve objectives

• Utilities form partnerships to facilitate DERs and encourage customer value creation, including robust recommendations to overcome barriers to DER deployment

• A modern grid will facilitate DER integration and provide customer choice while improving safety and reliability

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