doe update: reliability and grid modernization · • 1.3.5 siting and optimization tool for...
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DOE Update: Reliability and Grid ModernizationCaitlin Callaghan, National Electricity Delivery Division
May 25, 2016
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DOE Acronyms/Abbreviations
OE Office of Electricity Delivery and Energy ReliabilityQER Quadrennial Energy Review
1.1 – First Installment1.2 – Second Installment
GMI Grid Modernization InitiativeGMLC Grid Modernization Laboratory ConsortiumGridMod Grid ModernizationQTR Quadrennial Technology ReviewMYPP Multi-Year Program PlanDER Distributed Energy ResourcesEPTA Electricity Policy Technical Assistance (Program)TA Technical Assistance
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DOE Update
Quadrennial Energy ReviewSecond Installment
Grid Modernization
Laboratory Consortium
DOE Funding
Electricity Policy
Technical Assistance
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Quadrennial Energy Review 1.2An Integrated Study of the Electricity System
http://energy.gov/epsa/quadrennial-energy-review-second-installment
The second installment of the QER will conduct a comprehensive review of the
nation’s electricity system, from generation to end use, including a more comprehensive look at electricity transmission, storage, and
distribution infrastructure covered in installment one.
QER 1.2: Electricity Generation to End Use
QER 1.1 documented major transformation of Electricity Sector:• Changing generation mix• Low load growth• Increasing vulnerability to severe weather/climate• New technologies, services and market entrants• Cyber/physical threats• Aging infrastructure and workforce• Growing overlap between jurisdictions
Given the centrality of electricity to the Nation, this transformation merits a closer examination in the next installment of the QER.
QER Secretariat 5
Linking QER 1.1 and 1.2
QER Secretariat
Fuels
Waste
QER 1.1
QER 1.2
The QER Lens
QER Secretariat 7
• QER 1.2 will analyze how the electric power system as a whole is evolving, including:
• Integrating new technologies• Changing market conditions• Grid operations• Financing and valuing• Changing role of the customer
• Physical structures and the roles of a range of actors, institutions and industries are being analyzed, vis-à-vis:
• Maintaining reliability of supply• Ensuring electricity affordability• Adapting to dramatic changes in technology and services
• QER analyses are underway to consider issues such as:
• Fuel choice• Distributed and centralized generation• Physical and cyber vulnerabilities• Federal, state, and local policy direction • Expectations of residential and commercial consumers• Reviewing existing and evolving business models for a
range of entities, throughout the system
Predecisional – Not for Distribution 8
I. Electricity consumption and energy efficiency by sector (residential, commercial, industrial, transportation) status, trends and barriers.• What levels and patterns of electricity consumption exist today and are forecasted for 2040 in the industrial, commercial, residential and
transportation sectors?• What business models and methods of customer engagement have been most successful, or show the most promise, for deploying
residential efficiency measures? What is the role of policy in facilitating these models and methods?
II. Distributed energy resources (DER): demand response, distributed generation and distributed energy storage. • How should DER value streams be assessed from different perspectives—customer, utility and society? • What are the major barriers to distributed generation deployment, including financial, technical, transactional and distribution system
limitations? • What policies and regulations enable demand response to support variable energy resources at utility scale?
III. Grid Operations and Planning• How do different system architectures facilitate or inhibit efficient grid evolution?• What lessons from international experiences with grids operating at high penetration levels of variable energy resources can be
translated to U.S. system operations?• What are the implications of having a hybrid generation system – a mix of centralized and distributed resources – on the grid?
Sub-Set of Issues We Anticipate Addressing
5/31/2016 QER Secretariat 9
IV. Generation Portfolio, Reliability, Supply Chains, and Equity • What is the evolution of the generation portfolio?• What are our reserve margins? What is the availability and need for backup power?• What policies can be put in place to increase access to rural, low-income communities, and remote communities?
V. Electricity Markets• What frameworks and metrics can characterize regional markets and degree of market regulation? How have markets performed
across different criteria since restructuring?• How can policy levers be employed to remove barriers in each type of market to facilitate policy goals?• Are there barriers to cleaner and more efficient generation given cost of capital differences?
VI. Electricity Finance • How sensitive are costs to inputs (commodity prices, construction costs, technology costs)?• How do costs change under alternate financial scenarios (interest/debt/capital)?• What are the end user cost distributions under alternate DG/centralized scenarios?
VII. Electricity Valuation • How are uncertainty and risk taken into account under electricity valuation practices?• What value streams do electricity technologies provide to the system that are or are not monetized (and to which stakeholders do
they accrue)? • Do grid operators and policymakers manage tradeoffs among value streams?
Sub-Set of Issues We Anticipate Addressing
5/31/2016 QER Secretariat 10
VIII. Innovation and Technology• What are the government, industry, and investor roles across the clean energy innovation spectrum?• How has technology innovation enabled policy changes (e.g. FERC rules)?• What level of innovation is required to prudently ensure availability of clean energy capabilities to meet our 2030 and 2050 goals, focusing
on the electricity sector, e.g. baseload, storage?
IX. Jurisdiction and Regulations• How did existing jurisdictional boundaries and policies evolve? What are the authorities for oversight of the electricity system? What are
the responsibilities vested at each level? What policy levers that exist at each level?• Distribution-level planning is becoming increasingly important, DER requires utility planners to achieve better integration of transmission
planning and distribution planning and coordination between the Feds and the states. How do wholesale and retail markets complement each other (from a jurisdictional perspective)?
X. Environment• What are potential generation pathways for meeting the U.S. goals for economy-wide de-carbonization by 2050 and how to plan for a
future that achieves deep decarbonization of the energy sector?• How do the interconnected flows of energy and water compare across states? How are these changing over time? What are the key
environmental justice issues that are related to the electric power sector and what policy measures should be taken to minimize impacts to EJ communities?
• What are the key environmental issues that arise in the context of electric infrastructure siting and what policy measures should be taken to minimize these impacts?
Sub-Set of Issues We Anticipate Addressing
5/31/2016 QER Secretariat 11
XI. Resilience • What strategies and methods are available to improve the resilience of the electricity system, and how do alternative approaches
compare on benefits, costs, and performance? • How can system resilience be maintained in the face of evolving trends and changing conditions, i.e., increased consumer choice, DER,
smart grids, climate change, regional migration, fuel diversity?• What is the role of the insurance industry?
XII. Security (Physical/Cyber)• What are the key threats, vulnerabilities, risks and consequences associated with cyber and physical attacks on electricity systems,
especially SCADA and ICS? How can we address the threat of EMPs to the grid? • Have system owners and operators incorporated physical security measures in response to terrorist attacks? How do utilities view cyber
threats, e.g. in response to NIST’s framework and NERC’s cybersecurity standards?• As the economy is increasingly electrified (including DER), do cyber and physical vulnerabilities change?
XI. North American Integration • Are there barriers or constraints for continuing integration with Canada’s electricity sector? How will new transmission be handled? • Mexico’s electricity sector is less extensively integrated with the United States. Integration is not a current reality, but an objective. How
does an analysis of the Canadian border inform policies with Mexico?• For Canadian hydropower to backstop U.S. electricity, what are the constraints and opportunities?
XIV.Employment and Workforce Development • What are workforce skills and requirements in context of evolving technology and the environment
Sub-Set of Issues We Anticipate Addressing
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Grid Modernization Laboratory Consortium
http://energy.gov/articles/doe-announces-220-million-grid-modernization-funding
Grid Modernization Initiative
The vision of DOE’s Grid Modernization Initiative (GMI) is:• A future grid that will solve the
challenges of seamlessly integrating conventional and renewable sources, storage, and central and distributed generation.
• The future grid as a critical platform for U.S. prosperity, competitiveness, and innovation in a global clean energy economy.
• A future grid that will deliver resilient,reliable, flexible, secure, sustainable, and affordable electricity to consumers where they want it, when they want it, how they want it.
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Connectivity to Other DOE Activities
DOE Grid Modernization Multi-Year Program Plan
Design and Planning Tools
Sensing and Measurement
System Control and Operations
Devices and Integrated Systems
Security and Resilience
Institutional Support
Stakeholder Inputs
60+ Workshops and Peer Reviews since 2012
Integrated Lab Call –Grid Modernization Lab Consortia (GMLC)
Industry and Academic Solicitations – HQ Program Offices
Cooperative Research Agreements – HQ Program Offices
Technical Assistance –HQ Program Offices and National Labs
QER – Policy Options
QTR – Technology Options
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GMLC Portfolio: 88 Projects, $220 Million, 3 years
Resilience
Distributed Energy Resources (DER)
Grid Architecture
Topical Areas for Regional and State
Partnerships
Multi-year Program Plan
Sensing and Measurement
Devices and Integrated Systems
System Operations and Control
Design and Planning Tools
Security and Resilience
Institutional Support For project-level information, go to:http://www.energy.gov/doe-grid-modernization-laboratory-consortium-gmlc-awards
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• Provide tools and data that enable more informed decisions and reduce risks on key issues that influence the future of the electric grid/power sector
Institutional Support
• Create grid planning tools that integrate transmission and distribution and system dynamics over a variety of time and spatial scales
Design and Planning Tools
• Design and implement a new grid architecture that coordinates and controls millions of devices and integrates with energy management systems
System Operations, Power Flow, and Control
• Advance low-cost sensors, analytics, and visualizations that enable 100% observability
Sensing and Measurements
• Develop new devices to increase grid services and utilization and validate high levels of variable generation integrated systems at multiple scales
Devices and Integrated System Testing
• Develop advanced security (cyber and physical) solutions and real-time incident response capabilities for emerging technologies and systems
Security and Resilience
Tech
nolo
gy In
nova
tion
GMI’s Integrated Technical Thrusts
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Core Activities
1.2.1 Grid Architecture
1.2.2 Interoperability
1.2.3 Device Characterization1.2.4 Valuation
1.2.5 Sensing & Measurement
1.1 Metrics & Baseline
The Foundational Research projects provide the fundamental knowledge, metrics, and tools needed to support all the Cross-Cut R&D and regional partnerships. They provide the framework to enable an integrated DOE grid modernization strategy, including:• Metrics and Baseline: fundamental metrics to guide and
evaluate national progress in grid modernization; • Grid Architecture: future grid and industry design
elements to guide consideration of new industry paradigms;
• Interoperability: standards and protocols for interoperability and testing of all grid devices from high voltage to customer premises;
• Device Characterization: an integrated testing network that spans the National Labs as well as industry and academia;
• Valuation: a consensus framework for valuing emergent grid technologies and services; and
• Sensing Strategy: a strategy for observing and monitoring the future grid system in a way that meets expectations for predictive control, real-time operations and security.
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State and Regional Engagement
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List of Projects on State/Regional Map
• 1.3.1 Southeast Regional Consortium• 1.3.4 Kentucky Industrial Microgrid Analysis and Design for Energy Security and
Resiliency• 1.3.5 Siting and Optimization Tool for California• 1.3.9 Smart Reconfiguration of Idaho Falls Network• 1.3.10 Vermont Regional Partnership Enabling Use of Distributed Energy
Resources• 1.3.11 Grid Analysis and Design for Energy and Infrastructure Resiliency for New
Orleans• 1.3.21 Affordable, Clean, Reliable and Scalable Island Power Systems for Rural
Alaska• 1.3.22 Technical Support for the NY Reforming the Energy Vision Initiative• 1.3.29 Coordinated Grid Support from Inverter-based Resources and Loads –
Hawaii• 1.3.33 Eastern and Western Interconnection Seams Study and Optimal HVDC
Overlay
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California Distributed Resource Planning
• Challenge:AB 327 requires the electric utilities in California to file Distribution Resources Plans (DRPs) to identify optimal locations for the deployment of distributed resources
• Solution from MYPP:Deliver an online open-access integrated distributed resource planning and optimization platform
• Partners:CA Public Utility CommissionPacific Gas & Electric Southern California EdisonNYSERDAMetropolitan Washington Council of Governments
• Expected impact:Identify meaningful behind-the-meter DER adoption patterns, potential microgrid sites and demand-side resources, and evaluate the impacts of high renewable penetration feeders on the distribution and transmission grid
Growing Threats to Resilience and
Reliability
Changing Electricity Supply
Mix
New Market Opportunities for
Consumers
Information and Control
Technologies
Aging Infrastructure
Drivers of change
Design and Planning Tools
Primary Technical Area of MYPP
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Grid Analysis and Design for Energy and Infrastructure Resiliency for New Orleans
• Challenge:• Coastal cities in the Southeastern United
States face a range of severe weather threats, including hurricanes, floods, and tornadoes. These threats can cause significant damage and disruption to cities, including loss of life, business interruptions and economic losses, and failure of critical infrastructure services. Many of these impacts occur because of failures in the electrical power system, so maintaining effective operations of critical systems and services during a major extended power outage is a growing concern to these cities
• Solution from MYPP:Conduct technical evaluations to assess energy and critical infrastructure vulnerabilities, and to identify cost effective options to improve the resiliency of both the electrical grid infrastructure and the community.
• Partners:City of New Orleans, Rockefeller Institute, Entergy, US Army Corps of Engineers
Growing Threats to Resilience and
Reliability
Changing Electricity Supply
Mix
New Market Opportunities for
Consumers
Information and Control
Technologies
Aging Infrastructure
Drivers of change
Security and Resilience
Areas of MYPP
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Office of ElectricityElectricity Policy Technical Assistance Program
http://energy.gov/oe/services/electricity-policy-coordination-and-implementation/electricity-policy-technical
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Office of Electricity Delivery & Energy Reliability
Our MissionOE drives electric grid modernization and resiliency in the energy infrastructure.
OE leads the Department of Energy’s efforts to ensure a resilient, reliable, and flexible electricity system. OE accomplishes this mission through research, partnerships, facilitation, modeling and analytics, and emergency preparedness.
Power Systems
Engineering R&D
(PSER&D)
National Electricity Delivery(NED)
Infrastructure Security and
Energy Restoration
(ISER)
Office of the Assistant Secretary
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OE Electricity Policy Technical Assistance Program
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http://energy.gov/oe/services/electricity-policy-coordination-and-implementation/electricity-policy-technical
TA Topics Quick Links• Utility Business Models• Ratepayer-Funded
Energy Efficiency• Demand Response• Recovery Act
Assistance• Uniform Methods
Project
ContactsCaitlin [email protected]
Larry [email protected]
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OE Electricity Policy Technical Assistance ProgramTypes of Assistance
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• Analysis assistance consisting of data collection and assessment activities to determine impacts and evaluate policy options and technology and market strategies
• Stakeholder-Convened Discussions by organizing task forces, working groups, and collaborative processes to tackle key issues and build consensus for preferred courses of action
• Education and Training through workshops and webinars to raise knowledge levels and better equip policy makers to address local and regional needs
• Consultations for quick-turnaround assignments involving technical experts advising policy makers on specific matters of interest
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HOW TO GET ASSISTANCETA generally provided in response to requests from eligible entitiesRequests for assistance can be submitted
- directly to the OE program contacts- through a national laboratory- through a national or regional
organizationTA is provided as appropriate and based on available resources
- existing resources leveraged, if possible- similar requests may be aggregated for
economic/efficiency reasons- other DOE program offices may be
engaged to address relevant subject matter
ELIGIBLE ENTITIESState public utility commissionsState legislaturesNational associations of state decision-makersRegional associations of state decision-makersFederal officialsGovernors' officesState energy officesGoverning boards of public power and cooperative utilities
How Eligible Entities and Organizations Get AssistanceProgram Execution
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Who are the experts?how/where they engage
Experts Engagement
DOE staff provide information about DOE programs/projects/initiatives relevant to TA request
National Labs provide expert consultations, analytical support/guidance, develop tools/resources, provide training
Third-Party Experts (e.g., Regulatory Assistance Project, Clean Energy States Alliance)
provides expert consultation (e.g., NY REV), author issue papers/reports (e.g., Future Electric Utility Regulation series), inform identification of research areas/initiatives (LBNL advisory group)
N-group members participate in document reviews, workshops and other discussions to develop resources (e.g., NARUC committees/ subcommittees)
Regional Groups (e.g., WGA, MGA, EISPC)
facilitate development of resources and tools (e.g., RAPID toolkit, Energy-Water Decision Support Tool, Energy Zones Mapping Tool) to inform state-based activities
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Helping with Energy System Planning
Comprehensive Planning
Expanded TA
Existing State Efforts
• Leverage ARRA IWTP work
• Complement Energy Assurance/ Risk efforts
• Tools/analysis• Work across state
agencies
• NASEO E-MAP• NY REV• MA Grid Mod• …
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Resource Planning Portal
The Resource Planning Portal is a web-based tool that allows users to: Input electric utility planning information in a consistent formatBenchmark planning assumptions across jurisdictionsOutput results in a standardized format for deeper analysis.
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LBNL’s Western Resource Planning Portal will help policymakers, planners, and other stakeholders evaluate regional planning activities and compliance across the WECC footprint.
The Resource Planning Portal currently contains long‐term planning assumptions for ~40 load serving entities, which represent about 90%of total WECC delivered load.
resourceplanning.lbl.gov
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Resource Diversity, System Complexity
The potential of high penetrations of mixed DERs presents an entirely new problem in control, coordination and value-
determination within distribution systems
Considerations:•Structures: electric infrastructure, ICT, control, industry, regulatory •Optimization: local & system, centralized & distributed control•Convergence: grid/ICT/buildings/transportation/city infrastructure•Markets: open access networks, platforms
EV Decisions
Building DecisionsGrid Decisions
INFOENERGY
$
Storage Decisions
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Eastern Interconnection Energy Zones Mapping Tool
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• Web-based EZ Mapping tool looks at 9 clean energy resource for development in the East
• ~1100 registered users• Developed by ANL under ARRA for EISPC, but
being leveraged more broadly• Evaluation of potential transmission facility
locations in sensitive areas or resource-constrained areas
• 368 Corridor Study• Produces user-customized maps of areas that fit
the screening factors and criteria for various electrical power generation technologies
• ANL continues its stakeholder outreach campaign and technical assistance for the EZ Mapping Tool
• New data layers added as needed/requested (FY14 - national trails, energy-water)
• Periodic updates of energy policy and law
ezmt.anl.gov
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NASEO Energy Markets and PlanningPilot Project
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• NASEO Energy Markets and Planning Pilot effort takes more holistic approach to addressing changing energy markets, flows, and challenges to deliver greater economic growth, improved environmental quality, and increased energy system resilience
• Pilot kicked off November 2014; 2-3 year effort
• 3 state pilots: competitively selected; engage public/private energy leaders and other stakeholders; prepare state energy profiles and needs assessments; identify “best practices” (roadmap exercise)
• Develop NASEO toolkit for other states to use in their planning and market/policy designs
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Energy Market and Planning Pilot (E-MAP) Kick-Off WebinarNovember 14, 2014
Energy Markets and Planning (E-MAP) Pilot
+ Phase One
Task 1: Research and Policy Analysis (3Q 2014 – 1Q 2015) Inform project activities and develop criteria to select candidate
states to participate in the pilot
Task 2: Selection Process Development (1Q 2015) Scope and develop Request for Commitment seeking two or three
state program participants
Task 3: E-MAP Pilot State Selection (2Q 2015) Develop outreach materials, establish criteria, work with DOE to
define level/type of analytical support available to participants, and notify selected pilot states
naseo.org/emap
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Regulated Utility Business Models
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• FINDER Model: The FINancial impacts of Distributed Energy Resources model quantifies changes in utility costs and revenues with the addition of demand-side and distributed energy resources (DERs)
• Whitepapers to advance the discussion by examining issues related to incremental and fundamental changes to electric industry regulation and utility business models; current papers underway
1. Electric System Functions and Roles in a High Distributed Energy Resources Future
2. Distribution Systems in a High Distributed Energy Resources Future3. Performance-Based Regulation in a High DER Future4. Distribution System Pricing for Distributed Energy Resources5. Recovery of Utility Fixed Costs: Utility, Consumer, Environmental and
Economist Perspectives• Technical assistance to state utility commissions and energy offices
considering possible changes to regulations and policies to advance public interests in the electricity sector
For more information: https://emp.lbl.gov/future-electric-utility-regulation-series
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http://energy.gov/leadership/organization-chart