File: ERCOT DREAM TF Slide 1 DREAM TF Distribution Energy Market IDEAS_distribution_energy_market_draft1 IDEAS_distribution_energy_market_draft1 Larry Howe Texas Solar Energy Society Board Member Dec 2015

File: ERCOT DREAM TF Slide 2 Texas Solar Energy Society ( State Chapter of the non-profit organization American Solar Energy Society ( Texas Solar Energy Society (TXSES) Mission – To educate citizens on the value of solar energy for their homes and businesses and in their communities, empower them to make informed decisions, and encourage them to connect with professional Texas solar businesses.

File: ERCOT DREAM TF Slide 3 Distribution Energy Market DREAM Task Force is targeting market design improvements within the existing electricity market structure. As more residential and business electricity customers invest and install local solar PV, consumers are becoming prosumers. Time to begin a project to review and update the electricity market structure in Texas to include a distribution energy market.

File: ERCOT DREAM TF Slide 4 Across Australia – 1,400,000+ – similar electricity market to Texas (size, “energy only” market) US installations – 600,000+ (end 2014) Texas installations – 10,000+ (end 2014) Rooftop Solar PV is not a science project anymore Across Texas (end of 2015) – 17,000+ ERCOT Competitive areas, SA, Austin, Munis, Co-ops, El Paso

File: ERCOT DREAM TF Slide 5 Distribution Energy Market Rooftop solar PV, coupled with local energy storage to support time shifting of loads, will further accelerate as more new homes are built “net energy zero”. Central A/C in Texas – from “none to all” in about 15 year period Similar path for behind the meter solar(+storage) ? Commonplace across new homes in Texas over the next 10 years – installed and maintained like any other “appliance” in modern homes? New Homes in Texas Go “Solar Ready” – Appendix U of the 2015 International Residential Codes Appendix U of the 2015 International Residential Codes Go “Zero Energy Ready” Go full “Zero Energy Home” combines high levels of energy efficiency with renewable energy systems to annually return as much energy to the utility as it takes from the utility –resulting in a net-zero energy consumption for the home.

File: ERCOT DREAM TF Slide 6 Distribution Energy Market October 2015 report by Lawrence Berkeley National Laboratory, titled, “Distribution Systems in a High Distributed Energy Resources Future - Planning, Market Design, Operation and Oversight”. see

File: ERCOT DREAM TF Slide 7 Distribution Energy Market see /distribution-systems-high /distribution-systems-high

File: ERCOT DREAM TF Slide 8 Distribution Energy Market While not in the current scope of the current DREAM TF, It is recommended the TF take this issue to TAC for review, and That together with the appropriate stakeholders (ERCOT and beyond), A project be started to update the electricity market design in Texas to include a distribution energy market to leverage the new DER technologies that are beginning deployment now and expanding rapidly over the next 10 years.