The Evolving Energy Landscape: New York State s Reforming the Energy Vision

Transcription

1 The Evolving Energy Landscape: New York State s Reforming the Energy Vision Becky Wingenroth Technical Leader, Principal MAREA Meeting February 27, 2018

2 Tonight s Agenda What is Electric Power Research Institute (EPRI)? NY Reforming the Energy Vision (REV) Overview Goals and Objectives Process Track 1 (Technology) Track 2 (Policy) Supporting Programs, Projects and Proceedings NYSERDA NYPRIZE Microgrid Competition Hosting Capacity Non Wires Alternatives (NWAs) REV Pilots Energy Storage Mandates Rate Design Industry Trends & Discussion 2

3 Tonight s Agenda What is Electric Power Research Institute (EPRI)? NY Reforming the Energy Vision (REV) Overview Goals and Objectives Process Track 1 (Technology) Track 2 (Policy) Supporting Programs, Projects, and Proceedings NYSERDA NYPRIZE Microgrid Competition Hosting Capacity Non Wires Alternatives REV Pilots Energy Storage Mandates Rate Design Industry Trends & Discussion 3

4 Born in a Blackout Founded in 1972 as an independent, nonprofit center for public interest energy and environmental research New York City, The Great Northeast Blackout,

5 Three Key Aspects of EPRI Independent Objective, scientifically based results address reliability, efficiency, affordability, health, safety, and the environment Nonprofit Chartered to serve the public benefit Collaborative Bring together scientists, engineers, academic researchers, and industry experts 5

6 Our Members 450+ participants in more than 30 countries EPRI members generate approximately 90% of the electricity in the United States International funding nearly 25% of EPRI s research, development, and demonstrations 6

7 About Our Research Power Delivery & Utilization Transmission, Distribution, and Substations Power Delivery & Utilization Distributed Energy Resources and the Customer Nuclear Generation Energy and Environment Technology Innovation 7

8 Quick Questions 1. Of all new generation capacity added to the U.S. electrical grid in 2015, what percentage was solar? a. 5.5% b. 13.6% c. 29.4% d. 17.2% 29.4%: While solar accounts for less than 2% of U.S. electrical generating capacity overall, it is one of the fastestgrowing energy markets in the country. With solar power continuing to get more affordable and new installations happening every day, the solar industry is booming. For the first time, more solar generating capacity was added in 2015 than natural gas in the U.S. (Source: FERC) 8

9 Quick Questions: By how much has the price of American wind power decreased since the 1980s? a. 60 % b. 80% c. 90% d. 70% 90%. Wind energy is now the cheapest form of power in some parts of the country, with new power purchase agreements in 2016 averaging about 2 cents per kilowatthour. Source: U.S. Department of Energy 9

10 Quick Questions 1. Who is officially responsible for the reliability of electricity at your meter location? a. You b. Generation Supplier c. 3 rd Party Vendor (i.e. solar, wind, DG) d. Distribution Utility e. All of the above Distribution Utility: Most state regulators assign electricity reliability to distribution utilities whether they generate the power or not. 10

11 Tonight s Agenda What is Electric Power Research Institute (EPRI)? NY Reforming the Energy Vision (REV) Overview Goals and Objectives Process Track 1 (Technology) Track 2 (Policy) Supporting Programs, Projects and Proceedings Expansion of Proceedings NYSERDA NYPRIZE Microgrid Competition Hosting Capacity Non Wires Alternatives (NWAs) REV Pilots Non Wires Alternatives (NWAs) Energy Storage Mandates Rate Design Discussion 11

12 Reforming the Energy Vision (REV) Original Objectives 1 - Customer knowledge and tools that support effective management of their total energy bill 2 - Market animation and leverage of ratepayer contributions 3 - System wide efficiency 4 - Fuel and resource diversity 5 - System reliability and resilience 6 - Reduce carbon emission Initiated by New York Department of Public Service (Public Service Commission) in April,

13 Reforming the Energy Vision Current Goals Make Energy More Affordable Support Clean Energy Innovation Cut Greenhouse Gas Emissions (80% by 2050) Empower Energy Choices Improve Energy Infrastructure Create New Jobs and Business Opportunities Protect Natural Resources Build a more Resilient Energy System 13

14 Evolving Process PSC Initiation of REV Large Stakeholder Working Groups by Topic 2015 Track 1 Technology Order Issued (original target 2014) 2016 Benefit Cost Analysis Framework Track 2 Policy (original target 1 st quarter 2015) Utilities filed initial REV Pilots Utilities filed Distribution Implementation Plans Stakeholder Meetings To Inform 2017 Rate Design Working Group Low/Medium Income Working Group Value Stack Working Group

15 NY REV Current Status: Joint Utilities Joint Utilities 1. Distribution System Implementation Plan Updates for Stakeholders: 1. Customer Data: September 14 15

16 Several Related Proceedings/Filings Utility Energy Efficiency Programs Clean Energy Fund NY Green Bank Low Income Affordability Large-Scale Renewables REV Net Metering Community Choice Aggregation Dynamic Load Management Distributed Energy Resources Oversight Community Net Metering 16

17 New York Reforming the Energy Vision (REV) Key Questions: 1. What should be the role of the distribution utilities in enabling system wide efficiency and market based deployment of distributed energy resources and load management? (Track 1) 2. What changes can and should be made in the current regulatory, tariff, and market design and incentive structures in New York to better align utility interests with achieving our energy policy objectives? (Track2) Major Implications for the Industry 17

18 Track 1 (Technology) DPS/PSC Order Issued February 26, 2015: Summary of Order: 1. Will use Distributed System Platform Model 2. The DSP function should be served by existing utilities whose longterm status as DSP providers should be subject to performance reviews. 3. Customers and energy service providers will have access to system information. 4. PSC Staff will propose platform to share Individual customer usage data 5. PSC Staff will evaluate Consolidated ESCO Billing (CEB). 6. Utilities should only be allowed to own DER under clearly defined conditions and in their own franchise territory 7. Utilities file annual Energy Efficiency plans (ETIPS) and Demand Response Tariffs. EE will be recovered in general rate case vs surcharge 8. Developing Large-Scale Renewables 18

19 Track 1 (Technology) DPS/PSC Order Issued February 26, 2015 (continued) 9. Attention to Low and Medium Income customers 10.Interconnections application process needs to be streamlined. 11. Open to advanced metering 12. Utility responsible for security 13. Consumer protection by PSC 14. Open to Microgrids (NYPRIZE) 15. Utility Demonstration plans filed July 15, Benefit-cost framework necessary and need framework Individual Utility DSIP Plans filed by June 30, 2016 Joint Utilities DSIP Plans Due November,

20 Supplemental DSIP Topics Working Groups Distribution System Planning Grid Operations Market Operations Improved Interconnecti on Process Hosting Capacity Methodology System Data Monitoring & Control Customer Data DER Procurement Approaches (Tariff, NWAs) Topics Demand Forecasting DER Forecasting BCA Screening Probabilistic Planning Methodology Joint System Planning and System Operations Coordinated Dispatch and Tools Other DER Cyber Security NYISO, Coordinated DER Dispatch - DR Market Participant Rules Granular Pricing Measurement / Verification Settlement Procedures Storage Methodology Load Flow Analysis Process ISO Roles and Responsibilities Coordination at T&D interfaces THE JOINT UTILITIES OF NEW YORK 20

21 Track 2 Order Issued May 19, 2016 Highlights: 1. Utilities to file System Efficiency proposal by December 1, Utilities to file an interconnection survey process and proposed Earning Adjustment Mechanism by August 1, Utilities to file progress report on aggregated data reporting by September 1, Utilities to file an aggregated data privacy policy statement by October 1, Utilities (except Con Edison) to file revisions to its standby service tariffs by August 1, Utilities to file a review of its standby rate allocation matrix and proposed revisions by October 1, Utilities to file one or more Smart Home Rate demonstration proposals by February 1, Utilities to file revisions to voluntary time of use rates and promotion and education tools by either its next rate filing or by June 1,

22 Earnings Adjustment Mechanisms (EIMs) Peak Reductions (bulk electric system Energy Efficiency Customer Engagement and Information Access + $ Interconnection Clawback reform C/I demand charge reforms Data access charges Aggregated Data access requirements Scorecard metrics (no earnings impact) Various filing due dates 22

23 NY REV Current Status: PSC Review of NYSERDA Investment Plans DSIP Follow Up Order (subsequent utility filings): April Working Groups Low and Medium Income Customers Interzonal CDG Credits LMI Adders (value stack to include LMI inclusion) Role of Solar programs Eligibility Determination (i.e. definition of LMI) On-bill Financing Utility Ownership of DER Value Stack Stand Alone Storage Tier 1 Eligible Technologies Storage combined with technologies Improving Existing Value Stack Elements Adding New Elements to the Value Stack Rate Design Commercial and Industrial Customer Demand Charge Reforms Standby Rate Allocation Matrix Review Opt-in Rate Design Reforms Mass Market Default Rate Design Reforms 23

24 Tonight s Agenda What is Electric Power Research Institute (EPRI)? NY Reforming the Energy Vision (REV) Overview Goals and Objectives Process Track 1 (Technology) Track 2 (Policy) Supporting Programs, Projects and Proceedings NYSERDA NYPRIZE Microgrid Competition Hosting Capacity Non Wires Alternatives (NWAs) REV Pilots Energy Storage Mandates Rate Design Industry Trends and Discussion 24

25 Microgrids and NYSERDA NYPRIZE Competition Microgrids: Microgrids are local energy networks that are able to separate from the larger electrical grid during extreme weather events or emergencies, providing power to individual customers and crucial public services such as hospitals, first responders, and water treatment facilities. NYPRIZE Competition: 3 Stage Program: Phase 1 Phase 2 Phase 3 Feasibility Studies $100k each Engineering/Business Models Studies Up to $1m each Project Buildout Modeling 25

26 NYSERDA NYPRIZE Program Progress thus far: 83 Feasibility Studies Phase 1 Phase 2 11 Engineering & Business Models 26

27 Hosting Capacity What is it? The amount of Solar PV or other (Distributed Energy Resources) that can be accommodated without impacting power quality or reliability under existing control and infrastructure configurations. The impact from DER is dependent on the unique feeder and DER characteristics 27

28 Maximum Feeder Voltages (pu) PV Hosting Capacity Explained (NY Solar Summit 2005) Minimum Hosting Capacity Maximum Hosting Capacity Total PV: 1173 kw Voltage violation ANSI voltage limit 2500 cases shown Each point = highest primary voltage Increasing penetration (kw) No observable violations regardless of size/location Possible violations based upon size/location Observable violations occur regardless of size/location Total PV: 540 kw 28

29 Hosting Capacity Maps Inform DER Developers Hosting Capacity Maps courtesy of NYSEG/RGE 29

30 Non Wires Alternatives (NWAs) 30

31 New York Reforming the Energy Vision (REV) Pilots Goal Demonstrate concepts for new markets (new revenues) for distribution utilities Key Points Incorporation of 3 rd Parties Costs recovered through Monthly Adjustment Clause (MAC) New order for BCA uses Societal Test Status All New York Distribution Utilities filed proposals July 1, 2015 NYPSC review authorized some of the proposals 31

32 REV Pilot Update: Utilities Currently Filing Quarterly Reports CenHub Marketplace (Central Hudson) Online portal for energy products and services Residential Customer Marketplace (Orange & Rockland) Online engagement platform leveraging customer data and analytics Building Efficiency Marketplace (Con Edison) Platform for small commercial customers using interval meter data, etc. Clean Virtual Power Plant (Con Edison) Building solar with storage aggregating into a virtual power plant Connected Homes Platform (Con Edison) Marketing platform targeting residential customers Flexible Interconnect Capacity Solution (Iberdrola) Connecting large distributed generation projects to the grid by providing an infrastructure as a service 32

33 REV Pilot Update: Utilities Filing Quarterly Reports Community Energy Coordination (Iberdrola) Aggregate local demand for clean energy technologies Resiliency Demonstration in Potsdam (National Grid) Partnership with local customers and DER providers to fund a microgrid Fruit Belt Neighborhood Solar (National Grid) Low-ti-moderate-income customers access clean energy, reducing arrears through neighborhood solar project Energy Marketplace (Iberdrola) Online marketplace for customer to purchase energy products and services BNMC DSP Engagement Tool (National Grid) Buffalo Niagara Medical Campus as test-bed for DSP functionalities, coordinating and optimizing DERS throughout the campus Demand Reduction Demonstration Project in Clifton Park (National Grid) Offer customers various programs and pricing signals to manage usage to reduce energy bills and demand ruing peak times 33

34 NYPA s New York Energy Manager (NYEM) Submetering hardware system shall minimally have interface capabilities, at the asset level, with the following classes of devices: 1. Chillers 2. Cooling towers 3. Fans & Pumps 4. Plug & Process Loads 5. Lighting Non Residential Applications Including: Office Buildings Schools/Universities Sewage treatment Plants Prisons Hospitals Other 34

35 Other REV Initiatives K-Solar Helping K-12 th grade schools statewide go solar at reduced costs. NY-Sun Helping finance 3,000 megawatts worth of solar project in the next 10 years. $13m to project in low-tomoderate income communities BuildSmart NY Working to cut energy use in State buildings 20% by 2020 NY Green Bank Working with partners in the finance community to invest $1 billion in clean energy technologies and projects. 35

36 Resources: New York State REV websites: NY PSC: Joint Utilities: NY REV: NYSERDA website: nyserda.ny.gov EPRI REV Liaison: Becky Wingenroth:

37 Tonight s Agenda What is Electric Power Research Institute (EPRI)? NY Reforming the Energy Vision (REV) Overview Goals and Objectives Process Track 1 (Technology) Track 2 (Policy) Supporting Programs, Projects and Proceedings NYSERDA NYPRIZE Microgrid Competition Hosting Capacity Non Wires Alternatives (NWAs) REV Pilots Energy Storage Mandates Rate Design Industry Trends and Discussion 37

38 Electrification: Preview of U.S. National Electrification Assessment 38

39 Q Action on Grid Modernization Studies and Investigations DC Q action No recent action 16 States + DC took action on Studies and Investigations during Q1 2017

40 Pennsylvania: Legislation HB 1782 Provides for alternative ratemaking for distribution companies (gas and electric) Decoupling Mechanisms Performance-based rates Formula rates Multiyear rate plans Cost Recovery Mechanisms Expands Utility investment and cost recovery for Distributed Energy Resources (defined as distributed generation) 40

41 Pennsylvania Regulation Summary Testimony of Andrew Place, Vice Chair of PaPUC Regulation/Legislation: 1. PUC Tentative Order March 2, 2017: Advanced rate designs and alternative rate methodologies 2. General Assembly Act 11 of 2012: Distribution System improvement charges (DSICs) for repair, improvement and replacement of eligible utiltiy infrastructure through a surcharge subject to reconciliation. (capped at 5% of customer bill). 3. Act 129 of 2008: large Distribution Companies must develop a plan for reduce energy demand and consumption (EE and DR) Status of DER: 1. Distributed Generation: largely limited to facilities for back-up. Removing barriers to Combined Heat and Power (CHP). 2. Solar installations increased 53% from May 2016 to May Distribution Companies developing programs to incorporate alternative fuel vehicles. 4. Energy Storage currently has 92 MWs with 20 MW under construction and 96 MWs in development queue. PUC Currently Holding Stakeholder Meetings 41

42 Noting History PV Module Price Trajectory PV module prices have declined by 20% with each doubling of deployment Module price (not cost) history is shown over 40 years' of market growth from 300 kw in 1976 to 300 GW in 2016, increasing 10 6 times. 42

43 Energy Storage: States Setting Procurement Targets California: 2013 Utilities, etc. to procure 1325 MW by 2020 Publicly-owned utilities self declared with board approval Massachusetts: MW by 2020 New York: 2017 TBD 1500 MW by 2025 Complemented by NYSERDA s Green Bank Oregon: 2015 Major utilities at least 5 MWh and up to 1% of 2014 peak load by

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45 Together Shaping the Future of Electricity 45