designing the ny rev distribution system platform: more than smart webinar jim gallagher executive...
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Designing the NY REV Distribution System Platform: More than Smart Webinar
Jim Gallagher Executive DirectorNew York State Smart Grid ConsortiumAugust 4, 2015
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Jim GallagherExecutive Director New York State Smart Grid Consortium (NYSSGC)
Named Executive Director of the New York State Smart Grid Consortium (NYSSGC) in April 2013, James T. Gallagher brings over 35 years of energy policy and industry experience to his role. As Executive Director, Gallagher oversees the Consortium and its members as they work toward broad statewide implementation of a safe, secure, and reliable smart grid to modernize New York’s energy infrastructure. Gallagher is the architect of the NYSSGC’s priority initiatives, which are designed to modernize New York’s electrical grid to improve reliability and resiliency, lower long-term costs, and identify best practices for meeting the evolving energy service needs of consumers. He is currently co-facilitator of the stakeholder process for Market Design and Platform Technologies for the NY Public Service Commission’s Reforming the Energy Vision (REV) Proceeding. Prior to joining the NYSSGC, Gallagher served as Senior Manager for Strategic Planning at the New York Independent System Operator (NYISO), where he was responsible for establishing the long term strategic direction for the NYISO, which operates New York’s electric transmission system and wholesale power markets. Before joining the NYISO in 2011, Gallagher served as Director of Energy Policy for the City of New York, and he was the lead energy advisor to the Office of Mayor Michael Bloomberg. Prior to working with the City, he was Director of the Office of Electricity and Environment for the New York Public Service Commission, where he enjoyed a 21 year career, and held senior energy policy positions at Northeast Utilities, the Pennsylvania Governor’s Energy Council, and in the late 1970’s, the Tennessee Valley Authority. At TVA he developed and led the organization’s pioneering “Solar Homes for the Valley” program. Gallagher is a member of the Advisory Board of Grid4EU, the largest smart grid project funded by the European Commission. Through this effort, Gallagher collaborates with international energy and technology experts to learn and create best practices and technological solutions for grid modernization. Gallagher also serves on the EPRI Grid Modernization Advisory Group and sits on the Board of Directors for the Advanced Energy Research and Technology Center. He is on the Executive Advisory Committee for the U.S. Department of Energy’s State and Local Energy Efficiency Action Network. He earned a B.S. in Business and Economics from Lehigh University, and an M.S. in Energy Management and Policy from the University of Pennsylvania.
Consortium Overview
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Consortium Mission
A Forum for Advancing Grid Modernization in NY State
Maintain vision of future grid Advocate benefits for producers, suppliers, and consumers Support initiatives that demonstrate capabilities of advanced grid
technologies Provide technical resources for industry and policy makers Priorities for 2014/2015
Real world projects - - Multiple microgrid demonstrations Utility of the Future (REV) Strengthen research and international collaboration
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NY’s Reforming the Energy Vision (REV)
Proceeding Considering
Fundamental changes in ways utilities provide distribution service
Aligning electric utility practices and regulation with technological advances in information management, pricing, power generation and distribution
Improving system efficiency, empowering customer choice, and encouraging greater penetration of clean generation and energy efficient technologies and practices
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Key Functions of the DSP
Designs and operates distribution system that integrates DERs as major means of meeting system and customer needs
Optimize operations by balancing production and load in real time
Monetize system & social values Use market based means where appropriate Coordinate interactions among customers, the distribution
system and energy services companies (DSP markets and NYISO)
The Distribution System Platform
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Introduction: Market Design & Platform Technology Groups (MDPT)
PurposeProvide guidance for utility Distributed System Implementation Plans (DSIPs) on near- and mid-term market design and platform technology issues,
ProcessTwo working groups—one focused on DSP Market Design and one focused on Platform Technology. Report to Department of Public Service, August 17th, 2015. Co-facilitated by NYSSGC, RMI, NY PSC Staff
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What defines the DSP market, and how might it evolve from near-term to mid-term to long-term?
With a focus on the near and mid-term term, what functionalities and capabilities must DSP and market actors provide to achieve REV’s goals?
How will different actors interact and what are the implications for data availability and transparency?
What elements of market design must be standardized across DSPs and what rules are needed to adequately govern the market?
Proposed Approach and Key Questions to Address
Market Design Group
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Proposed Approach and Key Questions to Address
What are the platform technologies needed to support market design, while complementing and enhancing grid operations?
What are key interfaces needing updated standards and protocols? If a pre-defined standard does not exist, what are the needs for a standard and the appropriate standards body to create it
What are the technology and human resource gaps and options that should be considered?
Platform Technology Group
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Establish DSP Structure that optimizes distribution system operations, improves reliability, and enhances affordability through improved integration of DER
Where appropriate, competitive distribution markets utilized to procure and compensate DER for value of services provided
Initial DSP markets focused on DER to address utility operational needs and to offset of defer distribution infrastructure investments
DSP markets should complement and not replicate existing NYISO wholesale markets
DSP Market Design – Where we want to go
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Basic market design and interactions uniform across DSPs, but value of products based on specific location and time
Evolve the markets over time based on sophistication of participant capabilities and infrastructure capabilities.
Provide locational temporal based price visibility . Create a locational based distribution system “adder.”
Customer experience enhanced through new technological approaches and innovative competitive offerings (e.g. digital marketplace, automated demand response).
DSP Market Design – Where we want to go (continued)
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Improved system/DER visibility for real time network monitoring/balancing
Pervasive use of system intelligence to enable automate grid operations and dynamic load management
Seamless integration of retail and wholesale markets and operations Strategic implementation of AMI where determined appropriate Communications and data management infrastructure in place to
support overall market and operational requirements Cyber secure
DSP Platform Technology – Where we want to go
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Key Functions and Capabilities of DSP
1) Enhanced Distribution Planning
Probabilistic forecasting
Identify DER hosting capacity
Determine Locational based marginal costs
Integrated utility/NYISO planning
Identify and prioritize locations needing Dist. System capacity/operational relief
Establish Distribution Planning Working Group
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Key Functions and Capabilities of DSP (continued)
2) Expanded Distribution Grid Operations
Optimize load, supply and other power parameters at local distribution level. Emphasis on automated response.
Orchestrate multi-directional power flows from DER
Improve load and network monitoring and visibility to aid situational awareness and rapid response to atypical events
Cyber security
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Key Functions and Capabilities of DSP (continued)
3) Distribution Market Operations Primary responsibilities
Develop and implement vibrant markets for DER products and services
Manage market operations and processes
Specific functions Develop and administer market rules Maintain awareness of DERs system wide Design and conduct initial RFPs/auctions to acquire DER Facilitating and processing market transactions Measuring and verifying participant performance
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Key Functions and Capabilities of DSP (continued)
4) Ensuring Data Availability
Provide authorized customer and distribution system data needed to facilitate market participation
The MDPT group identified Areas of need for specific types of data Current availability of such data Data interface issues Specific data necessary for the DSP planning and operations
functions Consensus not achieved
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Key Functions and Capabilities of DSP (continued)
5) Necessary Platform Technologies Establish geospatial models of connected DER and system elements Sensing and control needed to maintain a stable and reliable grid Optimization tools that consider demand response capabilities as
well as the generation output of existing and new DERs in the grid Need to measure DER performance: advanced metering needed to
support DER and active customer participation. Broad Advanced Metering Infrastructure (AMI) implementations must be accompanied by business case.
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July 15th – Draft Report issued for public feedback
July 31st – Public Feedback Due
August 17th – MDPT Final Report released
September 3rd – NY DPS staff issue DSIP guidance
January, 2016 – Utilities file DSIPs
Major Milestones Going Forward
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Contact InformationNew York State Smart Grid Consortium
387 Park Avenue South3rd Floor
New York, NY 10016
James T. Gallagher, Executive Director
NewYorkRevWorkingGroups.com
NYSSmartGrid.com