California s Energy Storage Summit California Energy Storage Association and Association of California Water Agencies

Transcription

1 California s Energy Storage Summit California Energy Storage Association and Association of California Water Agencies Molly Sterkel, CPUC Energy Division March 30, 2017

2 California Storage Laws Procurement Target 2 AB 2514 (2010): IOUs to procure 1,325 MWs of storage, in four biennial solicitations, allocated by IOU and POI. Existing projects and other procurements credited toward the target. Procurement Target AB 2868 (2016): IOUs to procure up to 500 MWs of additional storage, POI distribution, allocated evenly among them. Technology Eligible: Stationary batteries, pumped hydro < 50 MWs, compressed air and flywheels Ineligible Technology: P2G, pumped hydro > 50 MWs, and V1G Policy Objectives AB 2514: support integration of renewables, contribute to GHG reductions, or grid optimization AB 2868 (2016): achieve ratepayer benefits, reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases. Public sector and lowincome customers are priority. AB 33 (2016): evaluate and analyze the potential for all types of long duration bulk energy storage resources to help integrate renewable generation into the electrical grid

3 Technologies 3 Clockwise from upper left: Mechanical Engineering Blog; Sumimoto Electric; Beacon Power LLC; Electric Cars Report; PG&E; Reuters.

4 Grid Domains for Energy Storage Bulk Generation Transmission Distribution Behind-the- Meter Generation Sited Storage Transmission Connected Bulk Storage Transmission Grid Storage Distribution Grid Storage Customer-Sited Storage Wind or Solar + Storage CCGT+ TES Ancillary Services Load following FERC Jurisdiction Substation storage Community ES Demand Charge & Peak management. EV & solar == Transmission-Connected ==

5 Storage and Water Post-SB 350 SB 350 (2015) has set CPUC on a focused path to optimize for GHG reductions Focus on Energy Procurement decisions that can reduce GHG Emissions by 40% by 2030 Achieve at least 50% renewable energy, double energy efficiency, promote transportation electrification Policy and Planning initiatives underway at CPUC Integrated Resource Planning Review optimal portfolio of resources to put us on GHG path, including meeting high RE and high DER Grid Integration Issues Time of Use Rates Demand Response: Types and Potential Integration of Storage, DR, Water, & DER resources to meet GHG goals in an optimal manner 5

6 Challenges and Opportunities Modeling Shows High Renewable + Low GHG Futures may Cause challenges: Ramping Needs Renewable Curtailment (Economic not Reliability Driven) Create opportunities: New supply of shifted load to absorb low price over-generation in middle of the day New opportunities to combine technologies and loads to provide new grid services Future Modeling will hopefully: Help inform optimal mix of resources and opportunities for infrastructure investment 6 CAISO control room Photo courtesy CAISO

7 7 Ramping Concerns: Net Load Curves Vary by Season

8 Oversupply Concerns Over-supply Example April Day, E3-RPS calculator workshop 2/15

9 DR Service Types Service Type Ancillary Services Market Energ y Market Capacity and RA Payment s Flexible (Ramping) Capacity Payments Reverse DR (future) Shed Shift X X X X X Shimm y - Available X - Future Source: 2025 CA DR Potential Study Phase 2 Final Report

10 Price-Responsive and Supply Side DR Source: 2025 CA DR Potential Study Phase 2 Final Report

11 2025 Supply Curves 2025 Supply Curves for Shed and Shift Source: 2025 CA DR Potential Study Phase 2 Final Report; Note: 2025 Shimmy curve is predominantly residential battery

12 Water Pumping Supply Curves Water pumping end-use level supply curves for the industrial and agricultural sectors. Source: 2025 CA DR Potential Study Phase 2 Final Report; Figure 79 Municipal pumping loads not included.

13 Multi-Use Applications are Key Image: Rocky Mountain Institute

14 Thank You! Molly Sterkel

15 Extra Slides

16 16 Integrated Resource Planning

17 17 Mandate: Energy Storage Procurement, by Utility Total SCE Transmission 50 MWs 65 MWs 85 MWs 110 MWs 310 MWs Distribution 30 MWs 40 MWs 50 MWs 65 MWs 185 MWs Customer 10 MWs 15 MWs 25 MWs 35 MWs 85 MWs PG&E Transmission 50 MWs 65 MWs 85 MWs 110 MWs 310 MWs Distribution 30 MWs 40 MWs 50 MWs 65 MWs 185 MWs Customer 10 MWs 15 MWs 25 MWs 35 MWs 85 MWs SDG&E Transmission 10 MWs 15 MWs 22 MWs 33 MWs 80 MWs Distribution 7 MWs 10 MWs 15 MWs 23 MWs 55 MWs Customer 3 MWs 5 MWs 8 MWs 14 MWs 30 MWs TOTAL 200 MWs 270 MWs 365 MWs 490 MWs 1325 MWs

18 Energy Storage Procurement To Date (as approved by CPUC) Utility Procurement by Domain (MWs) Customer Distribution Transmission Total Remainder PG&E SCE SDG&E Total By Domain

19 Procurement: Preferred Resources to Replace SONGs San Onofre Nuclear Generating Station closed permanently in June CPUC ordered SCE and SDG&E to procure preferred resources and gas to replace output of SONGs. SCE Procurement 25.6 MWs 135 MWs MWs Thermal Energy Storage (Aggregate) Battery Storage (Aggregate) Battery Storage (Single Site) Total: 261 MWs 19 Photo: The Capistrano Project

20 Procurement: Aliso Canyon Governor Brown declared state of emergency for Porter Ranch Gas Leak at Aliso Canyon. Commission issued Resolution E-4791 mandating SCE and SDG&E to procure storage that meets certain guidelines to come on-line by 12/31/16 to contribute to winter reliability. Image: PBS Resolution E-4798 approved 37.5 MWs of utility-owned storage projects for SDG&E. Draft Resolution E-4804 would approve 27 MWs of capacity-only storage contracts for SCE. 20 Image: NPR

21 Procurement: Customer Programs Self-Generation Incentive Program (SGIP) Established in 2000 for commercialization of clean customer-sited distributed generation technologies Energy storage eligible in 2008 Authorized through 2020, at $83M/year 1175 storage applications; ~115.3 $200 million (installed & reserved) Demand Response Auction Mechanism (DRAM) Capacity procurement for DR or DR + storage IOUs purchase capacity; 3 rd parties participate in market Two pilot auctions held 2016 and Third pilot auction to occur in late Q1/early Q Battery storage and EV charging counterparties have won DRAM contracts. Permanent Load Shifting (PLS) Encourage adoption of thermal energy storage in commercial & industrial sectors Demand response program authorized through EOY 2017 Program funding ~ $53.3M for 5 years Incentive level varies by IOU, ~ $800/kW 21

22 22 Regulatory Policy: Joint Agency Energy Storage Roadmap