DISTRIBUTED SOLAR+STORAGE PROBLEM STATEMENT. A.F.Mensah, Inc

Transcription

1 DISTRIBUTED SOLAR+STORAGE PROBLEM STATEMENT A.F.Mensah, Inc

2 Problem Statement Distributed Generation Overview Distributed generation, in the form of battery storage, is a unique and powerful grid resource that when aggregated together can provide real impacts and multiple benefits to the PJM market. The market for small, distributed battery storage is gaining momentum, especially when co-located with retail renewable energy (i.e. Net-Metered Solar PV) for grid resiliency purposes. Problem Statement Current PJM market rules severely limit the value distributed battery resources can provide to the grid and End Users. Market Challenges Lack of harmony between PJM and State Rules. Same location different rules State rules allow injection of Solar Power PJM rules do not allow Injection of Battery Power, thereby severely limiting the value of batteries at small commercial and residential sites, where those batteries often are most needed. Drives interconnection costs up (triples [x3] interconnection costs) Introduces complex measurement & verification process (second utility service for battery and new billing tariff for battery storage asset)

3 Distributed Battery Storage Battery Storage Market Drivers Customer-sited Distributed Generation, and specifically battery storage, continues to gain momentum in the marketplace. Private and public funds are in place to help scale Residential & Commercial Solar Storage. Main drivers include grid resiliency, grid reliability, and renewable energy integration issues. Battery Storage Applications Battery storage resources are being co-located with retail renewable energy (i.e. Netmetered Solar PV) with the main purpose to provide grid resiliency. Battery storage resources can be deployed on FERC and/or Non-FERC jurisdictional facilities. Battery storage system sizing is not trivial and depends on the value of multiple applications Battery Storage Value is Varied Battery storage resources can be virtually partitioned to provide multiple value streams; these value streams can be both retail and wholesale in nature. Small battery storage resources (<100 kw) can be aggregated together to meet certain market participation size thresholds. When aggregated together, the portfolio can provide real and substantial benefits to the grid. Battery Storage is Unique Battery storage is a unique and powerful grid resource that does not behave like other grid resources.

4 Real Life Example

5 Project Overview Project Overview Residential Battery Storage Each home has existing or new Solar PV Battery Storage System Size: 5 kw / 5 kwh Number of Homes: 20 Aggregated Size: 100 kw (0.1 MW) (20 x 5 kw) Each battery unit has its own dedicated utility service line Applications & Value Streams Solar - Storage Backup Power PJM Frequency Regulation PJM Overview Classification Attachment BB Applications WMPA PJM Model Points FR Market & Bidding Telemetry Requirements Tariff & Rates Generation Resource Energy Only 20 separate applications 20 separate agreements 1 single point as aggregate 1 Market Resource 1 Fleet (single aggregated data points to/from PJM) Mixed tariff wholesale (discharge); retail (charge)

6 Point of Connection Overhead Service Ownership demarcation point is at weather head on home EDC Ownership Line New EDC Meter Existing EDC Meter Underground Service Ownership demarcation point is at meter box EDC Ownership Line Batter y ATS Electri c Panel Batter y ATS Electri c Panel Normally Open Solar Solar Grid Isolation Contactor Revenue Grade Meter

7 Additional Cost Considerations Interconnection / Installation costs nearly triple (x3) compared to a DR equivalent installation (when complying with current PJM generation resource rules). Total project costs increase by 75% compared to a DR equivalent installation PJM Attachment BB / WMPA $1,000 Total ($500 Deposit + Add l Labor) EDC Dedicated Service Line $1,000 - $1,500 ($10,000 outlier) Electrical Contractor Additional Equipment & Labor $2,000 - $2,500 ($10,000 outlier) Total Added Costs $5,000 (>$20,000 outlier)

8 Timeline Considerations Market Approval process timeline increases by about 6 to 9 months compared to an equivalent DR interconnection / registration (when complying with current PJM generation resource rules). PJM Attachment BB WMPA Model Build 1-2 weeks 3-4 weeks 4-5 Months BGE (Dedicated service line) Dedicated Service Line Application Processing Engineering Site Survey Metering & Installation Site Survey Scope of work preparation Contractor Site Preparation Local Permit Approval EDC Final Service Connection Scheduling 2-3 weeks 2-3 weeks 2-3 weeks 1-2 weeks 1 week 1-2 weeks 4-12 weeks

9 Other Market Considerations New Jersey Electric Distribution Companies (EDCs) Protocols for the Treatment of Mixed Generation Behind a Single Meter (i.e. Solar PV and Battery Storage) Interconnection and Metering requirements addressed ISO-NE Common Dispatch Model Demand Response and Net Supply being combined into single Common Dispatch Model and applied as DR credit.

10 In Summary Distributed Battery Storage is a valuable grid resource with growing momentum in PJM territory. Current PJM market rules severely limit the value distributed battery resources can provide to the grid and End Users. Current PJM rules drastically increase interconnection costs and complexity for all parties Lack of harmony between PJM and State rules cause immediate challenges Other market efforts are available for PJM s consideration