integrating ders with the electric grid of the future_pollock 9-2016

Integrating Distributed

Energy Resources with

the Electric Grid of the

Future

balancing reliable, affordable

safe, power with clean energy

ambitions

© 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 transformationDecentralized is becoming the new normal…

HISTORY TODAY


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 assetsYou might be a DER if…

…However most of these resources are “invisible” to utilities


575%

GROWTH IN DISTRIBUTED

SOLAR FROM 2012 TO 2015 IN

NEW YORK STATE

Which have grown exponentially in recent yearsWe’re not in California anymore…

57

132

158

73

43

20

CentralHudson

Con Ed NiagaraMohawk

NYSEG O&R RG&E

>450 MW of PV

INTERCONNECTED TODAY


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

50278

CentralHudson

Con Ed NiagaraMohawk

NYSEG O&R RG&E

Legacy Net Metering Caps (6% of 2005 Peak Demand)


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

2014Joint DSIP


…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 signalsand incentives for investments whichkeep 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…


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 dayTODAY


The traditional distribution planning processRevision 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


Planning for distributed energyNew 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


Considering DERs in the load forecastNot 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.

© PA Knowledge Limited 12Capitalist Slides

TODAYMost small PV does not

require dedicated metering

and telemetry or smart

inverters – utilities therefore

have limited visibility into

operations

BACKCASTINGAllows 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


This is just the beginning of a long journeyThat 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

DE

RP

EN

ET

RA

TIO

N


@ZDPOLLOCK

[email protected]

paconsulting.com/our-thinking/next-generation-utility/

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