State Policies - Distributed Energy Resources

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Transcription:

State Policies - Distributed Energy Resources Ken Nichols Presented to: NCSL 2015 August 2, 2015 ken@eqlenergy.com 503-438-8223

Distribution Utility of the Future Distribution utilities will no longer just supply electric energy to customers, but will plan for, coordinate, and manage the flow of electric energy to, from, and between customers. August 2, 2015 www.eqlenergy.com / 2

Steps Toward the Future Is Solar City/Tesla the utility of the future? Utility business models in transition Large Supply-Side Capex >>>> Grid Modernization, Reliability, IT Every feeder is a snowflake DER value: Location, Location, Location Battle: Utility Integration Cost vs. DER Value Push: Technology Vendors, Policy, and Customers Pull: Utilities Roadmaps>Pilots>Demos>Scale Legislative actions that work Value of solar DER >>> DRP Energy Efficiency >>>> Capacity Efficiency (demand response) Distribution Resources Planning (CA AB327, WA 2045) Rate and NEM Strategies (reflect Utility cost structure) Everyone loves EVs? Combined Heat and Power Support (Mandate) Standards (OpenADR, IEEE1547) Clean Power Plan 111(d) uncertainty for state governments August 2, 2015 www.eqlenergy.com / 3

Distributed Energy below 69kV Dispatchable Automated Demand Response Energy Storage (Customer, Utility) Dispatched Generation Non-Dispatchable Energy Efficiency Solar Wind Electric Vehicle Charging Combined Heat & Power Smart Inverter services (e.g., VAR Support) August 2, 2015 www.eqlenergy.com / 4

DER Drivers Cost declines in solar, storage, and smart grid 40% decline since 2011, Panels $1.31/Watt to $.50/Watt (peaker is $1.2/Watt not including fuel) Import tariffs on Chinese solar will slow the steep decline, but decline will continue. $.038/kWh 20 year solar PPA for NV Energy Tesla s gigafactory to reduce Li-ion battery cost Smart building management systems, thermostats, water heaters, motor load, VFDs Customer Expectations Lower costs, reliability, and environmental concern Economic Development 830,000 Energy Efficiency jobs, 174,000 Solar Jobs Reliability 90% of outages is on distribution system. (200GW of backup power in US) Hurricanes, Earthquakes, and Animals oh my Environmental Costs/Policy Reduce rates Avoided costs for Transmission, Distribution, Generation, etc. 1990s Puget Sound Reliability: voltage support, targeted EE August 2, 2015 www.eqlenergy.com / 5

Customers are looking for reliability, self generation, and environmental stewardship. Customer desire for self- reliance increasing E&Y: 33% of the mul5- na5onal firms are expected to meet a greater share of their energy needs through self- genera0on over the next five years Navigant: nearly 75% of surveyed residen0al customers have concerns about the impact electricity costs have on their monthly budgets, and 63% are interested in managing energy used in their homes Best Buy: 36% of residen0al customers desire to financiall and physically protect the home (Home Safeguarding persona) August 2, 2015 www.eqlenergy.com / 6

Jobs: 174,000 Solar, 830,000 Energy Efficiency 2,400 300 2,100 250 200 5,900 54,000 1,500 9,200 1,600 http://pre.thesolarfoundation.org/solarstates#wy August 2, 2015 www.eqlenergy.com / 7

Solar creates 860 jobs per lifetime MWh 2,400 300 2,100 250 200 5,900 1,500 54,000 9,200 1,600 August 2, 2015 www.eqlenergy.com / 8

Campus DER for 69kVA Substations 2,400 300 2,100 250 200 5,900 1,500 54,000 9,200 1,600 August 2, 2015 www.eqlenergy.com / 9

DER for two 69kVA Substations 2,400 300 2,100 250 200 5,900 1,500 54,000 9,200 1,600 August 2, 2015 www.eqlenergy.com / 10

NPV of Substation Capacity DSM Total!Value!Benefit! $%MM%!'!!!!!0.3!!!3.4!!!'!!!!!1.7!!!0.6!!!0.9!! 7!!3!! 10! 3! Peak%Capacity%Cost% System%Loss%Savings% Feeder%Deferral% Ancillary%Services% Shoulder%Month%Savings% BMS%EE%Savings% Substation%Deferral% Environmental%Value% Total%Value% Cost% Net%Benefit% August 2, 2015 www.eqlenergy.com / 11

Distribution Resource Planning (DRP) Purpose is for distribution planning to include DER energy capacity, smart capabilities, energy efficiency, and market incentives during long-term distribution planning These factors would then be balanced against the avoided costs of traditional distribution planning Iden0fy DPA & Substa0ons Perform Planning Analyses Calculate Loca0onal Net Value Rank Substa0ons by Loca0onal Net Value $16 $14 $12 $10 $8 $6 $4 $2 $- Loca0onal Value: Avoided Costs and Benefits Loca5onal Value Integra5on Cost Net Loca5onal Value $16 $14 $12 $10 Millions $8 $6 $4 $2 $- Net Loca0onal Value by Substa0on August 2, 2015 www.eqlenergy.com / 12

When to DRP? No. of Benefit Categories & Sophistication of Analysis States should mandate DRP whenever utilities are proposing new infrastructure investment to meet load growth (Gen, Trans, Dist) DER kw forecasted to exceed 40% of Feeder Daily Minimum Load Walk Jog Run Visibility & Initial Locational Benefits 2015-1H 2016 2H 2016-2019 2020+ System-wide DRPs incl. Locational Societal Benefits System-wide DRP including LTPP & TPP locational benefits August 2, 2015 www.eqlenergy.com / 13

Everyone likes EVs EE PV EV Customer Cost Integration Cost Utility Revenue Ratepayer August 2, 2015 www.eqlenergy.com / 14

Utility Rates should reflect Cost Type 2015 EPRI Capacity and Energy in the Integrated Grid August 2, 2015 www.eqlenergy.com / 15

Utility Rates should reflect Cost Type 2015 EPRI Capacity and Energy in the Integrated Grid August 2, 2015 www.eqlenergy.com / 16

States Blowing Utility Model Up August 2, 2015 www.eqlenergy.com / 17

Focus on Peak Demand Reduction Average prices low, peak prices high August 2, 2015 www.eqlenergy.com / 18

2022 WECC (MW)1 DER could be 23% of western power by 2022 DER 2022 WECC (MW) 1 2013 PNW (MW) 2022 PNW Market Potential 2, 3 Solar (Helena better than Jacksonville FL) 25,000 188 2,300 Combined Heat and Power (CHP) 9,000 15 1,000 Demand Response Renewable Integration 2,600 0 305 Demand Response Peak Reduction 4,700 420 1,000 Energy Storage 1,800 5 55 Dispatchable Backup Generators 100 800 Energy Efficiency (amounts not included) Total 43,400 713 14,660 1. Source: EQL Energy for Western Interstate Energy Board May 2015, 2. Summary of 2013 TEPPC high DG case, 2013 LBNL 3. http://www.westernenergyboard.org/sptsc/workgroups/dsmwg/webinars/2013/2- HiDSM- DGwebdr.pdf August 2, 2015 www.eqlenergy.com / 19

Stakeholder views Likes DER Cautious DER Independent System Operators DER Owners Solar Industry CleanTech Distribution Utility Utility Shareholders Traditional utility equipment vendors Economic Development Far Left and Right Moderate Right August 2, 2015 www.eqlenergy.com / 20

Summary Legislative / Regulatory actions Support Utility Transition in business models Value of solar DER >>> DRP Distribution Resources Planning (CA AB327, WA 2045) Utility Roadmaps - pilot>demo>scale Combined Heat and Power (WA E2SHB 1095, OR SB 844) Support (Mandate) Standards -OpenADR, IEEE1547 Obtain Demand Response with Energy Efficiency Everyone Loves EVs, make sure it benefits ALL ratepayers August 2, 2015 www.eqlenergy.com / 21

Ken Nichols, Principal, EQL Energy 503 438 8223 ken@eqlenergy.com www.eqlenergy.com Link to Western Interstate Energy Board paper: Emerging Changes in Electric Distribution Systems in Western States and Provinces http://westernenergyboard.org/2015/05/final- report- released- by- eql