Clark W Gellings, P.E. Fellow National Conference of State Legislators Energy Supply Task Force August 18, 2014
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1 Clark W Gellings, P.E. Fellow National Conference of State Legislators Energy Supply Task Force August 18, Electric Power Research Institute, Inc. All rights reserved.
2 Electric Power Research Institute Together Shaping the Future of Electricity 2
3 Looking Forward 3
4 Distributed Energy Resources Photovoltaics Storage Micro-generation Photo courtesy of NREL Fuel Cells clean exhaust Plug-In Electric Vehicles steam natural gas fuel processor hydrogenrich gas power producing section DC power power conditioner AC power air usable heat & clean water 4
5 The Grid Provides Transactional Value 5
6 Grid Delivers Balancing Resource Solar resource calendar for August 2012 shows irradiance profiles in NJ August 2012 Sun Mon Tue Wed Thu Fri Sat Blue area: measured irradiance Orange line: calculated clear sky irradiance 6
7 Grid Provides Reliability Service Minutes 180 System Average Interruption Duration Index (SAIDI) Without Major Events Average Grid Reliability 99.97% excluding major events Equivalent reliability services from local generation will require onsite redundancy Year 7
8 The Grid Provides Startup Power 8
9 Grid Connectivity Reduces Harmonic Impact 9
10 Cost of Grid Connectivity for Local Resources 10
11 Cost Projection for Off-Grid Local Energy Resource Oversized PV Array Additional Electronics Multi-day Storage Backup Generation Monthly Cost to Provide Grid Services from Local Resources 1 Controlled Load Photo courtesy of NREL $228-$361 Projected Cost in 2020 $165-$262 1 Does not include additional cost of energy from local resources 11
12 The Integrated Approach Local Resources are Also Part of Grid Operation and Planning 1 LEN: Local Energy Network Community LEN 1 Master Controller Bulk Power System Market Operator System Operator Distribution System Distribution Management System Campus LEN Master Controller Building LEN Master Controller 12
13 Increasing Penetration Level Increasing Penetration Level Understanding System Impacts of DER Energy, Capacity & Ancillary Central Generation Generation Capacity & Ancillary Service Frequency Support Transmission Voltage & Frequency Stability Loss Reduction Sub-transmission Increasing Re-dispatch Transmission Constraint T&D Avoided Capacity Substation Reverse Power Flow Reactive Power Balance Loss Reduction Distribution Prevalent voltage, Capacity & Protection Issues Voltage Support Customer Localized Voltage & Capacity in Long Circuits 13
14 CAISO Net Load 2012 Through ,000 25,000 23,000 21,000 19,000 17,000 15,000 13,000 Typical March day significant change starting in 2015 Potential overgeneration , Source: California ISO 14
15 The Duck Curve is for Real Not Just Resource Adequacy but the Adequacy of Resource of the Right Type MW - Lunedì, 30 Agosto 2010 MW - Lunedì, 29 Agosto 2011 MW - Lunedì, 27 Agosto More upward ramping capability is required when sun goes down 0 Increased requirement for downward ramping capability in the morning Need lower minimum generation levels to avoid over-generation Source: ENEL Measured Data from Southern Italy and CAISO analysis 15
16 Germany: Higher Penetration of Local Generation Necessitates an Integrated Approach Installed Capacity (2013) Interconnection Rules Grid frequency support Wind Solar Grid Infrastructure Upgrade ~$27.5B-$42.5B upgrade ~63GW of Installed Wind and PV mostly connected to LV and MV grid Two Way Communication Enabled by Advanced Distribution Management Recent Changes in Germany to Address Concern of Grid Reliability Source: Fraunhofer Institute, Germany 16
17 DER Interconnection Requirements Future Interconnection Standards Should Consider Voltage Support Frequency Support Fault Ride-Through DER/DSO Communication EPRI working on recommended technical guidelines for voltage and frequency ride through capability for DG based on new IEEE 1547a 17
18 What is Included in Benefit/Cost Framework Utility Operations (people and how they do their jobs: non-fuel O&M, non-production assets, safety) System Operations (the power system and its efficiency: losses, combustion, dispatch optimization, emissions) Utility Assets (production assets required: GT&D) Reliability & Power Quality (frequency and duration of customer interruptions, harmonics, sags/swells, voltage violations) Customer (equipment & other direct customer costs) Utility- Cost Function Society (jobs, security, environmental and other economic costs and benefits Customer Perspective Included EPRI s Methodology based on Power System Analysis and Economics Not in scope of EPRI s Methodology 18
19 Building Upon Prior Efforts Many have contributed to specific aspects of the framework Need comprehensive approach: connecting all puzzle pieces 19
20 Foundation of An Integrated Grid 1. Grid Modernization 2. Communication Standards and Interconnection Rules 3. Integrated Planning and Operations 4. Informed Policy and Regulation 20
21 Action Plan Inform Stakeholders on Key Concept & Challenges Benefit/Cost Framework for Different Designs Global Demonstrations Data, Information and Tools Global Collaboration to Establish the Science, Engineering and Economics 21
22 Together Shaping the Future of Electricity Download Your Copy of the Paper For Additional Information Contact: Barbara Tyran at Karen Forsten at
Clark W Gellings, P.E. Fellow CEPSI 2014 October 29, Electric Power Research Institute, Inc. All rights reserved.
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