Stanford/SLAC VADER Workshop March 30, 2016 Erik Takayesu, P.E. Director, Electric System Planning and Modernization

Southern California Edison Distribution Resource Plan

Energy Policy Drivers in California

Assembly Bill 327 (AB 327) •  Distribution Resources Plan (DRP) •  Net Energy Metering Successor Tariff •  Residential Rates Reform

Senate Bill 350 (SB 350) •  50% RPS by 2030 •  50% increase in building EE by 2030 •  Integrated Resource Planning •  Transportation Electrification •  Governor’s strong support

Technology-promoting policies •  Integrated Distributed Energy Resource

(IDER) proceeding •  1,325 MW Energy Storage mandate •  Transportation Electrification (e.g. SCE’s

Charge Ready program)

Disadvantaged Communities •  Expand opportunities for low-income,

environmental justice and other underserved segments to access clean energy resources

California’s Energy Policy primarily driven by decarbonization

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SCE’s Guiding Principles 1.  Promoting customer choice and customer engagement are key

objectives

2.  The distribution grid can play a key role in reducing carbon in California

3.  Safety, reliability, and resiliency must remain paramount objectives

4.  Costs of electric service must remain affordable and equitably-apportioned to customers

5.  Competitive processes for the selection of DERs should be utilized to the greatest extent possible

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Distributed Energy Resource Proceedings

Expanded scope •  Competitive solicitation

framework: product definition, rules, plans, standard contracts, “review groups,” and valuation methodology

•  Utility roles, business models, and financial interests

•  ConsiderlocalizedDERincen1ves

Scope elements •  Integration Hosting Capacity •  Locational Net Benefits •  Data Access •  Planning alignment •  Grid Modernization

Investments; integration into General Rate Case

• Integra1onofDERsinplanningandopera1ons

• Iden1fica1onofop1malloca1onsandvalueofDERs

• Developmentoftoolsandmethodologies• Fielddemonstra1ons

Distribu1onResourcePlanProceeding

(Tracks1–3throughearly2017)

• DeterminehowDERscanmeetsystemneeds

• DevelopsourcingframeworkforDERs• AlignDERcost-effec1venessframeworks

IntegratedDistributedEnergy

ResourcesProceeding

(Phase1through8/2016)

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DER portfolios bring different dynamics than traditional infrastructure

Tradi&onalinfrastructure DERpor5oliosolu&on

Availability Accessiblewhenrequired Compe1ngpriori1esforusecanaffectavailability,maybeservingcustomerneedsorwholesalemarket

Dependability Installedforspecificuseandperformfunc1onasspecified

Dependsonotherfactorssuchasweather,1meofday,andcustomerprocessdemands

Durability Well-definedandunderstoodassetlife

Customersmaydecidetoexitvoluntaryprograms,failtomaintainresources,ormove

Flexibility Increasedopera1ngop1onsduetoinherentcapacitymargin

Maximizesu1liza1onofexis1nginfrastructure,howeverlimitsopera1ngpossibili1es

DER por(olio solu-ons fulfill required performance a7ributes, however are not en-rely equivalent

Planning processes need to be modernized to integrate DERs, leveraging new tools, data analytics, and visualization capabilities

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A modernized distribu-on planning process iden-fies grid needs and DER solu-on a7ributes

Developforecasts,

assump&ons&scenarios

Performdistribu&onplanning

assessment

DetermineDERopera&onalrequirements(a?ributes)

Iden&fyareaswhereDERshavegreatest

benefit

Performcompe&&vesourcingforDERdeferrals

•  Integratedforecast•  Load•  DistributedGenera1on

•  DemandResponse•  EnergyEfficiency•  ElectricVehicles

Loca1onaldistribu1onneedsandassociatedtradi1onalsolu1ons

•  Screenprojectsthroughadeferralframeworktoensuresystemreliability

•  Iden1fyfeasibleDERloca1onsandassociateda]ributerequirements

•  Quan1fyrangeofloca1onaldeferralbenefits

•  Exis1nghos1ngcapacity•  Opera1onalrequirements•  Performancemetricsandvalida1on

•  Otherrelevantinforma1on

•  Thermal•  Voltage•  Protec1on

DER installation for additional uses increases grid operation complexity; when DER portfolios are relied on as part of reliability, that complexity escalates

Situa1onalAwarenessResourceoutput/statusPowerflowanddirec1onVoltageCircuitconfigura1on

MonitorForecas1ng(shortandlong-term)Distribu1onloadflowanalysis(shortandlong-term)Interconnec1ontoolsGridstatees1ma1on

AnalyzeDistributedandcentralizedISOdispatchcoordina1onAutocircuitreconfigura1onCapacitorbankswitchingDERopera1onsdisatpch

Control

Powerflowop1miza1onVoltageop1miza1onAdap1ve,bidirec1onalprotec1on

Op1mizereliability

Poten1almarketopera1onlayerontopofreliabilityop1miza1on

Op1mizeeconomics

Grid reinforcement and moderniza-on is required to maintain reliability and realize DER opera-onal capability

Customerobjec1ves

Customerobjec1ves,smallvolumeofDERprovidinggridservices

Customerobjec1ves,increasingrelianceofDERprovidinggridservices

Customerobjec1ves,relianceofDERprovidinggridservices,priori1zedbyDERcosts

Enabling an Integrated and Flexible Distribution Grid

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Thank you. To access SCE’s Distribution Resources Plan (DRP), SCE’s Distributed Energy Resources Interconnection Map (DERiM), and additional information, please visit the CPUC’s DRP website at: http://www.cpuc.ca.gov/PUC/energy/drp/

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