Energy Storage R.10-12-007Energy Storage Procurement & Policy Options

Arthur O’Donnell/Aloke Gupta/Elizaveta Malashenko

Energy Division

Grid Planning & Reliability

January 14, 2013

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Remote Access

Call in #: Passcode:1-866-758-1675 7646128

Note: *6 to mute/unmute

Upon entry to the call, please place yourself on mute, and remain on mute unless you are asking a question

WebEx InformationMeeting Number: 744 418 027Meeting Password: storage Go to: https://van.webex.com/van/j.php?ED=196274762&UID=491292852&PW=NZWE0NWE5YTdh&RT=MiM0

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Agenda for the WorkshopAction Item Time Allotted Clock

Introductions and Update 10 minutes 10:00 am – 10:10 am

President Michael Peevey 5 minutes 10:45 am

Panel 1: Procurement 75 minutes 10:10 am –11:30 am

CAISO Markets & Testing 30 minutes 11:30 am – 12:00 pm

Lunch 60 minutes 12:00 pm – 1:00 pm

Panel 2: Operational Experience & Pilots

75 minutes 1:00 pm – 2:15 pm

EPIC Plans & Storage 10 minutes 2:15 pm – 2:25 pm

Cost-Effectiveness Update 10 minutes 2:25 pm – 2:35 pm

Open Discussion 20 minutes 2:35 pm – 2:55 pm

Wrap Up & Next Steps 5 minutes 2:55 pm – 3:00 pm

Workshop Purpose and Goals

To establish a record for decision making in R.10-12-007 to satisfy the terms of AB 2514 (PUC Section 2836) with regard to establishing potential energy storage procurement targets for load-serving entities (LSEs).

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Workshop Purpose and Goals

Responsive to AB 2514, which requires the CPUC: •To open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems.•By October 1, 2013, to adopt energy storage procurement targets, if determined to be appropriate, to be achieved by each LSE by December 31, 2015, and a 2nd target to be achieved by December 31, 2020.•Consider a variety of possible policies to encourage the cost-effective deployment of energy storage systems, including refinement of existing procurement methods to properly value energy storage systems.

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Evaluation of Procurement Targets

AB 2514 specifically requires that the CPUC:(a) Consider existing operational data and results of testing and

trial pilot projects from existing energy storage facilities.

 

(b) Consider available information from the California Independent

System Operator testing and evaluation procedures.

 

(c) Consider the integration of energy storage technologies with

demand-side management or other means of ensuring the most

efficient use of generation resources and cost-effective energy

efficient grid integration and management.

(d) Ensure that the energy storage system procurement targets and

policies that are established are technologically viable and cost effective.

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Energy Storage OIR R10-12-007

July 9th, 2010PPD White Paper on Energy Storage

September 29th, 2010AB 2514 is enacted

December 16th, 2010OIR 10-12-007 issued

March 9th, 2011Initial Workshop

April 21st, 2011PHC

December 31st, 2015Proposed First Procurement target (AB2514)

December 31st, 2020Proposed Second Procurement target (AB2514)

October 1st, 2013Decision Target

May 31, 2011Scoping Memo

June 28th, 2011Workshop

July 31st, 2011Barriers Workshop

Phase 1 Phase 2

We are hereJanuary 2013

Q1/Q2 2012

December 12, 2011Staff Proposal Released

Aug. 2, 2012ALJ DecisionD12-08-016

Jan 31, 2012Parties Comments

Feb 20, 2012Reply Comments

March 30, 2012Final Staff Proposal

Sept. 4, 2012PHC

Aug 20 – Oct. 16Workshops

Summer 2013 Submission of record of case

January 4, 2013Staff Interim Report issued

Panel 1: Procurement Options

• Janice Lin - Energy Storage Alliance

• David Castle - Southern California Edison

• Armando Infanzon - San Diego Gas & Electric

• Daidipya Patwa - Pacific Gas and Electric

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Procurement Options

What additional information do we need to decide?

A) Procurement targets as a fixed percentage of load-serving entities’ load, may be structured as a capacity (Megawatt) threshold, or for specific applications for storage.

B) Pilots or “Market Tests” focused on specific priority applications or end uses, to further develop tools for cost-effectiveness analysis.

C) Portfolio - Setting aside a dynamically adjusted portion of procurement for need determination for “preferred” resources, specifically including storage.

D) As noted by legislative analysis of AB 2514 he Commission’s determination could also result in a finding that no target level is appropriate.

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CAISO Markets and Testing

Don Trethaway, Senior Market Design and Policy Specialist,

Market Design and Regulatory Policy, California ISO

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Panel 2: Operational Experience and Pilots

• Jack Ellis, Independent Engineer and Consultant - Select Projects

• Praveen Kathpal, AES Energy Storage – Lessons from the Field

• Vic Romero, SDG&E Director – Asset Management & Smart Grid Projects – SDG&E Pilots

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Energy Storage in EPIC plans

• On November 1, 2012, the CEC, PG&E, SCE and SDG&E filed their required 2012-2014 Investment Plans for research & development programs funded via ratepayer contributions to the EPIC program.

• Total $466.5 million for Applied Research, Technology & Demonstration (T&D), and Market Facilitation (2013-2016).

• Utility spending is entirely in the T&D category.

• As much as $60 million of the CEC project budget could be applied to energy storage research projects. Up to $15 million possible for IOU projects that could include storage.

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Cost-Effectiveness Analysis Update

Aloke Gupta, Regulatory Analyst, CPUC

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Next Steps

• Comments on this workshop may be incorporated with comments on January 4, 2013, Staff Interim Report and Use Cases.

• Must be served to entire Service List for R. 10-12-007.

• As per ALJ Ruling of January 10, 2013: • Comments are due February 4, 2013; • Response comments due February 21, 2013.

• Ongoing work to conduct cost-effectiveness analysis.

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Thank You!

For further information related to R.10-12-007 please contact :

Arthur O’Donnell ao1@cpuc.ca.gov

415-703-1184

Aloke Gupta ag2@cpuc.ca.gov

415-703-5239

Elizaveta Malashenkoeim@cpuc.ca.gov

415-703-2274

www.cpuc.ca.gov15