Considerations for a Modern Distribution Grid A Collaboration with State Commissions & Industry to Define Grid Modernization in the Context of States’ Policies Pacific Coast Inter-Staff Collaboration Summit May 24, 2017

Project Overview Challenge: Origin: Objectives: What is the appropriate investment strategy for enabling DER integration and utilization? Encompasses technological, business and policy considerations Implications for planning, operations and markets Origin: Initiated by CA and NY regulatory commissions to address consistency (+ DC, MN and HI) to examine a next generation distribution system platform (DSPx) Objectives: Phase 1 – draft materials complete May 2017 Develop a consistent taxonomy of DSPx capabilities & functions to satisfy states’ policy objectives Determine technology maturity and remaining gaps needed to enable distribution system functions (next 5 years) Provide considerations for the effective deployment of grid capabilities over time to meet evolving customer needs and states’ policy objectives Phase 2 – 2017 and beyond Collaborate with regulators, utility industry, and national laboratories to address technological gaps and refine approaches for the prudent deployment of grid capabilities

Phase I Deliverables Defines DSPx functional scope Volume I Customer and State Policy Driven Functionality (V.1 Final) Defines DSPx functional scope Taxonomic organization of DSPx capabilities, functions and elements mapped to state grid modernization objectives within a planning/operations/market framework Grid architecture context Comparative assessment of industry architectural applications Volume II Advanced Technology Maturity Assessment DSPx technology maturity in relation to Vol I functions and elements Assesses availability and gaps in commercial technology needed for DSPx functions and elements; applies technology adoption curves Volume III Decision Guide (under development) Guide for modern grid implementation Provides considerations for implementing the functionality for an advanced distribution grid, including core platform components Examines coordination and communication network considerations, voltage management with smart inverters, and DER aggregation and optimization

Reliability, Safety & Operational Efficiency Modern Grid Evolution Needs & objectives drive grid capabilities and corresponding enabling business functionality and technology Grid Capabilities Reliability, Safety & Operational Efficiency DER Integration DER Utilization Functions Market Operations Grid Operations Planning New Existing

State Objectives are Fairly Consistent Leading to grid properties enabling DER utilization – though timing, scale and scope are different

Distribution Platform Capabilities From DSPx Volume 1 – Customer and State Policy Driven Functionality, version 1.1, March 23, 2017

Integrated Planning Considerations Integrated planning and analysis needed within and across the transmission, distribution and customer/3rd party domains From “Integrated Distribution Planning”, August 2016, prepared for the MN PUC, ICF International

Getting structure right simplifies the downstream decisions Grid Architecture Getting structure right simplifies the downstream decisions Grid Architecture treats the grid as a network of structures Grid structure is changing Some legacy structures need to be changed to relieve constraints

Coordination Considerations Laminar coordination framework enables scaling and optimization at both local and system levels From JD Taft, Architectural Basis for Highly Distributed Power Grids: Frameworks, Networks, and Grid Codes, PNNL-25480, June 2016

Modern Distribution Grid Platform Considerations Core components are foundational; applications layer on this foundation as additional functionality is needed Modern Distribution Grid Advanced Technology Maturity Assessment From DSPx, Volume 3 – Decision Guide, under review

Timing & Pace Considerations US distribution system is currently in Stage 1 and the issue is whether and how fast to transition into Stage 2. Pace & scope of investments are driven by customer needs & policy objectives. Proportional deployment to align with customer value Customer Value Time

Summary Identify Customer Needs & Societal Objectives Identify Capabilities & Functionality Needed Develop a Grid Architecture Develop Related Designs Select Appropriate Grid Technologies Develop a Deployment Roadmap aligned to Pace & Scope of Needs Implement Proportionally to Customer Value

https://emp.lbl.gov/projects/feur Thank You Joe Paladino, joseph.paladino@hq.doe.gov Paul De Martini paul@newportcg.com Jeffrey Taft jeffrey.taft@pnnl.gov Laura Wang lwang@morethansmart.org Contacts: References: www.doe-dspx.org http//gridarchitecture.pnnl.gov https://emp.lbl.gov/projects/feur