1. DECISION

2. PRESENTERS PETER ALSTONE, PH.D. Humboldt State University JILL POWERS
CAISO
ANJA GILBERT
PG&E
MATTHEW TISDALE Gridworks

3. AGENDA Background Sources of Load Shift What does success look like?
Product evaluation
Product proposals
Resource Adequacy implications
Recommendations

4. BACKGROUND
WG ordered by D to develop a proposal for foundational elements of new models of demand response.
71 participating organizations (Utilities, DER providers, consumer advocates, regulatory agencies, others)
11 in person meetings, 11 subgroup meetings
The Final Report of the Load Shift Working Group was served on January 31, 2019
THE REPORT PROVIDES A COLLECTIVE EXPRESSION OF THE WORKING GROUP RATHER THAN AN ACCOUNT OF EVERY PARTY’S POSITION ON EVERY ISSUE. SOME PARTIES DISAGREE WITH SOME PARTS OF THE REPORT, BUT AGREE THE REPORT PROVIDES A REASONABLE FOUNDATION.

5. BACKGROUND
ISSUE
Renewable energy production can outpace demand throwing supply and demand off balance.
In 2018 California’s oversupply and ramping demands reached levels almost four years ahead of what was originally forecasted.

6. BACKGROUND
SOLUTION
Load Shift is coordinated, targeted modification of customer energy consumption timing to better align with low cost, low pollution power generation resources.

7. SOURCES OF LOAD SHIFT

8. LBNL DEMAND RESPONSE STUDY
By 2025 California may benefit from GWh (2-5% of daily load) of Load Shift.
Shifting load at these levels is estimated to provide $ million ($2015) resources to support the operation of California’s bulk electric system.
2025 CALIFORNIA DEMAND RESPONSE POTENTIAL STUDY

9. GRID NEEDS
Beyond avoided renewable generation curtailment, additional benefits can accrue through well-timed, well-placed Load Shift resources, including:
Energy Cost reductions
Emission reductions
System, local and flexible Resource Adequacy (RA)
Transmission capacity
Distribution system services
Customer bill savings

10. PG&E AND OLIVINE’S EXCESS SUPPLY PILOT (XSP)
Since 2016 PG&E’s Excess Supply pilot – administered by Olivine - has been testing the capabilities of demand side resources to increase load during the times of over-supply on transmission and/or distribution lines as well as during times of low or negative prices.
Lessons learned from XSP:
Coordination with utility distribution planning and operations is essential for the safety and reliability of the distribution system.
If the goal of load shift is to help with renewable integration, there are benefits to a product that is market integrated.
Some customers were able to avoid TOU demand charges through their bidding behavior.

11. WHAT DOES SUCCESS LOOK LIKE?
Technologically neutral, open to all sources and end uses;
Reflect grid needs, especially integration of renewables;
Not “one-size fits all”;
Include both “take” and “shed” and the two may be asymmetric

12. HOW PRODUCTS ARE EVALUATED
Dispatch method (CAISO integrated vs Out of market)
Dispatch geo-granularity (DLAP vs Circuit)
Dispatch temporal granularity (Hourly vs Seconds)
Role of IOU (Large vs Small)
Role of aggregators (Large vs Small)

13. PRODUCT PROPOSALS Load Shift Resource 2.0
Market Integrated Distribution Service (MINTDS)
Critical Consumption Period
Market Informed Demand Automation Services (MIDAS)
Pay For Load Shape
Distribution Load Shape

14. LOAD SHIFT RESOURCE 2.0
SUMMARY DESCRIPTION
Fully market integrated using CAISO’s new PDR-LSR model, but not limited to energy storage
Allows for take during negative price events
LOCATIONAL GRANULARITY | Dispatch primarily at sub-lap
TEMPORAL GRANULARITY | Dispatch at 60,15, or 5 minute intervals
ACCESSIBILITY TO CUSTOMERS | Analogous to current PDR-LSR customer experiences
Market integrated

15. MARKET INTEGRATED DISTRIBUTION SERVICE (MINTDS)
SUMMARY DESCRIPTION
Adapts LSR 2.0 by serving distribution grid needs with wholesale market dispatch and tariffs offered by utility
Could be add on for customers currently on a utility Net Energy Metering tariff
LOCATIONAL GRANULARITY | Circuit-feeder level
TEMPORAL GRANULARITY | Seconds
ACCESSIBILITY TO CUSTOMERS | Customers willing to adopt technologies that can receive and respond to DSO dispatch signals (e.g., EV chargers, solar plus storage, automated thermostats)
Market integrated

16. CRITICAL CONSUMPTION PERIOD
SUMMARY DESCRIPTION
Retail load increase in line with day ahead negative price events; customer pays real-time price
Dispatch by LSE
LOCATIONAL GRANULARITY | Dispatch at the PNode
TEMPORAL GRANULARITY | Dispatch at 60, 15, or 5 minute intervals depending on settlement capabilities of LSE
ACCESSIBILITY TO CUSTOMERS | Intended for larger C&I customers, but could be expanded; customer determines quantity and duration of load shift with LSE
Not market integrated but is considered market informed

17. MARKET INFORMED DEMAND AUTOMATION SERVICES (MIDAS)
SUMMARY DESCRIPTION
Automated demand response product
Shift smart loads to lower price or lower emission periods based on market or grid state informed signals
LOCATIONAL GRANULARITY | Default dispatch at DLAP, but could be more local
TEMPORAL GRANULARITY | As low as 15 minute intervals
ACCESSIBILITY TO CUSTOMERS | Customer preferences and other end-use operating constraints enable automation of WiFi devices to shift loads.
Not market integrated but is considered market informed

18. PAY FOR LOAD SHAPE
SUMMARY DESCRIPTION
LSEs establish target load shapes to meet their unique energy needs
Customers that meet or approach the target load shape would be compensated based on energy market savings, capacity cost savings, and other values provided based on a performance assessment
LOCATIONAL GRANULARITY | Ranges from circuit to the D-LAP
TEMPORAL GRANULARITY | Hourly intervals
ACCESSIBILITY TO CUSTOMERS | Customers participate directly or through an aggregator, comparable to an opt-in Time of Use rate
Not market integrated but is considered market informed

19. DISTRIBUTION LOAD SHAPE
SUMMARY DESCRIPTION
Permanently provide Load Shift according to a defined schedule, offered by the utility through a tariff
LOCATIONAL GRANULARITY | Circuit-feeder
TEMPORAL GRANULARITY | Hourly
ACCESSIBILITY TO CUSTOMERS | Customers participate directly or through an aggregator, comparable to an opt-in Time of Use rate
Not market integrated but is considered market informed

20. A DIVERSITY OF POTENTIAL LOAD SHIFT MODELS
Zoom in and review

21. RESOURCE ADEQUACY
Resource Adequacy (RA) currently recognizes the capacity value of load shed but does recognize potential value of take. Load Shift can:
Increase demand during the downward ramp, thereby reducing the need for generators to be taken offline or curtailed during that period.
Raise minimum load thereby reducing the need for downward and upward flexible RA
IF THE COMMISSION FINDS LOAD SHIFT PROVIDES A RELIABILITY SERVICE, COMMENSURATE RA CAPACITY PAYMENTS WOULD BE APPROPRIATE.

22. RECOMMENDATIONS
Load Shift can support renewable integration and distribution system planning and operations.
Coordination with California Energy Commission and CAISO, as well as related Commission proceedings.
Invite pilot proposals in early 2019 along the lines of the products envisioned here.
Incentivize Load Shift and ensure incentives are consistent with the value the resource creates

23. QUESTIONS 1111 Broadway, 3rd Floor Oakland, CA 94607