Download presentation
Presentation is loading. Please wait.
Published byLoren Bond Modified over 9 years ago
1
“The Electric Grid and DG: Operational Considerations”
Presented to the Arizona Corporation Commission Hank Courtright, Senior Vice President Electric Power Research Institute May 7, 2014 How are we going to meet energy needs of the future? What can we learn from examples like Germany? Can we ensure reliability while enabling / accommodating higher penetrations of distributed energy resources (DER)? How do we ensure solutions that provide the lowest cost for society? How do we optimize resources both locally & system wide? © 2014 Electric Power Research Institute, Inc. All rights reserved.
2
…for society through global collaboration…
EPRI - Our Mission Advancing… Objective: Connect our mission and vision to why we are doing this study Emphasize – Our mission is focused on developing the science and technology innovations that result in providing electricity to society that is safe, reliable, affordable and environmentally responsible led us to this study to understand how the emerging Distributed Energy Resource (DER) technologies can preserve this objective Our study, including scenario planning and analysis, led to the development of a concept of an integrated grid that we believe will preserve this circle that defines customer expectation The paper also calls for an action to transform to an integrated grid – an action that we, including utilities, technology providers, policy makers and regulators can act upon so that together…we can shape the future of electricity In order to provide the knowledge, information, tools that will inform key stakeholders as they take part in shaping the four key areas supporting transformation of the power system, EPRI has begun work on a three-phase Initiative. Transition: We started this study by focusing on the characteristics of the power system that provides the most essential quality of electricity – reliability – availability when and wherever needed …for society through global collaboration…
3
The Electric Power System
Objective: Acknowledge the value of the system, provide some core engineering principles that the system was build on and set up capacity and energy as two key requirement for the system The power system has served society well, with average annual reliability of almost 4 nines (99.97%) in terms of electricity availability. The National Academy of Engineering designated electrification enabled by the grid as the top engineering achievement of the 20th century. Reliable electrification has been the backbone of innovation and growth of modern economies. It has a central role in many technologies considered pivotal for the future, such as the internet and advanced communications. The core engineering principle by which the system provides 24/7 electricity, on the coldest day of the year or the hottest day of the year has not essentially changed in the past 10 years. Central generators produce electrical energy at the precise quantity that is needed at any instant and that electricity is delivered through the grid to the customer. Except for pumped hydro, almost 100% of electricity has to be consumed when produced in real time and energy storage essentially is not a factor in this real time balancing of production and consumption of electricity. In addition, the distribution portion of the grid is physically and electrically designed assuming electricity will flow from the substation to the customer, and as we move away from the substation to the extremities of the distribution system the electricity needed to flow will be less and less and hence the wire sizes will also be smaller at the end of the system. In order for the power system to provide reliable electricity to customers, it not only needs adequate energy to be produced by the generators but also adequate capacity to deliver this energy at any location, at any time. Energy, measured in kilowatt-hours (kWh), is delivered to consumers to meet the electricity consumption of their lighting, equipment, appliances and other devices, often called loads. Capacity is the maximum capability to supply and deliver a given level of energy at any point in time. Supply capacity comprises networks of generators designed to serve load as it varies from minimum to maximum values over minutes, hours, days, seasons, etc. Delivery capacity is determined by the design and operation of the power transmission and distribution systems that deliver the electricity to consumers. Transition: What is the cost to ensure that we have adequate capacity and energy to operate a reliable power system? While the cost may vary significantly from region to region, and from utility to utility to understand what the current costs are for an average residential customer we looked at the EIA AEO 2012 data to get a sense of how much a customer is truly paying for the energy and how much the customer is truly paying for supply and delivery capacity.
4
Looking Forward Objective: Change is not new, what are some factoids that describes the change, and how the change can impact the system if it is not integrated with the Power System The Power System is Changing and this change is dominated by Distributed Energy Resources, devices at the edge of the distribution system. Change is nothing new. Innovation has been changing the generation, delivery and use of electricity for over 130 years. Wind: Give one factoid of how much wind we have added in the world or US. Currently have over 60GW in US. PV – both roof top and directly connected to the distribution system – 20 years to get to 1GW and doubled in 1 year to 2GW. Currently we have over 3GW [Verify] of cumulative PV in the US. Electric Vehicle – which brings a new concept of “mobile” electrical load – currently have over 180,000 EVs on the road today. The adoption rate is increasing. Demand Response – (show this build after EV) – in the North East, DR has already become a significant resource and connectivity enabled by smart phone will continue to make this resource more easy to acquire as customers manage their electricity use using their smart apps – there is a reason why Google will pay $3.2B for NEST whose primary product thus far is essentially a thermostat In the future, as gas becomes more affordable and plentiful we can see greater penetration of gas based distributed generation and as technology drives the cost of energy storage we may also see more deployment of distributed energy storage in customer premises These changes are not planned or integrated with the electric power system. In many cases, the distribution system operators do not have visibility of how much electricity is produced by the distributed generators and nether are they aware of how demand response within their system is bidding on the wholesale market. Transition: This lack of integration, either during planning or during operation of the power system, results in unintended consequences when the level of penetration increases - and we don’t need to study what these unintended consequences are – we have a real system, where in a decade 60 GW of distributed wind and solar were added to a system with peak load of 80 GW, the country of Germany, and the consequences are well known and a valuable lesson to consider as other countries like U.S. are in the early stages of penetration of DER.
5
Interconnected Value of Grid Connectivity
Startup Power Grid Supplied Power 24 by 7 Electricity Interconnected Value of Grid Connectivity
6
Interconnected but Not Integrated
Integrated Value of DER and Grid Interconnected Value of Grid Connectivity Integration Enables Values of all Resources
7
Meet the Challenge An Integrated Grid
Objective: what is an integrated grid (not how to get there) and the benefits of an integrated grid An integrated grid is a power system where central and distributed energy resources are working seamlessly together to ensure ALL customers continue to receive safe, reliable and environmentally responsible electricity at an affordable rate. The planning and operation of the power system takes into account both central and distributed resources and a smarter and more distributed energy management systems allows us to optimize the resource mix in the most cost effective way. How does this integrated grid benefit all customers: Lets start with reliability which is essential when we consider electricity – An integrated approach will ensure that the grid has the appropriate level of central and distributed resources that will provide the inertia, capacity and all other technical attributes in addition to energy that is needed to operate the grid reliably. Interconnection rules will ensure that both central and distributed resources are supporting the voltage and frequency of the grid during major disturbances and finally the integrated approach will ensure that we are minimizing voltage fluctuation in the distribution system where we may have higher penetration of DER . An integrated approach also could enable parts of the system to safely operate as an island with a campus or a building and improve the resiliency of customers to withstand prolonged power outage during events that may be rare but can happen Lets move to affordability – an integrated approach will reduce the overall investment that will needed to modernize the grid since we are obtaining value from both central and distributed resources. Technologies like smart inverters is already cost effective and if broadly deployed and integrated with distribution system operation it will help in reducing future investment that will be needed for grid upgrade. Technologies like storage, when it becomes cost effective can be paired with PV and other variable generation and reduce the overall capacity need for the system And finally how does the integrated grid helps in improving environmental responsibility – it enables a higher penetration of cleaner resources as these resources become more cost effective without subsidies. An integrated grid with demand response and storage as part of the system will also enable less curtailment of wind and PV resources thereby help in fully utilizing the cleaner resources that have been installed Transition: So how do we transform the power system to an intergraded grid? While technology is essential but technology alone is not sufficient and we need all of us together to shape the future of this integrated grid
8
Foundation of An Integrated Grid
Grid Modernization Communication Standards and Interconnection Rules Integrated Planning and Operations Informed Policy and Regulation Objective: Four fundamental platforms of an integrated grid. Lets start with Grid Modernization – Modernizing the grid will include re-conductoring in parts of the distribution system where higher level of penetration is expected and augmenting its infrastructure along with deploying technologies such as distribution management systems (DMS), communication, sensors, and energy storage. “Grid” in the context of an integrated grid includes technologies that are not just on the T&D side but also could be on the customer side. It is anticipated that this combination of infrastructure reinforcement and smart technology deployment can yield the lowest-cost solution for a given penetration level of DG in a feeder. For these technologies to effectively work together we need a national imperative to standardize the way these technologies along with the DER will talk with each other and how the interconnection rules will enable this coordinated central and distributed resource integration. Germany, after learning the lesson from the past decade, have already done that by changing interconnection rules from Jan 2013. Even if we have technologies and the communication standard and the interconnection rule – we still will need to ensure that during the planning and operation we have rules of engagement between a DER owner or aggregator and DSO and then with a DSO and a TSO or ISO. This will become a challenge in areas where all these functions are done separately but without integrated planning and operation we will NOT be able to realize the benefit of the increasing penetration of DER and ultimately the customers will pay with lower reliability and higher cost of integration . There are serious technical questions that needs to be addressed and agreed upon – what information and data is needed from DER to DSO from DSO to TSO/ISO – what is the speed of this data transfer? How reliable this communication needs to be? How do we ensure cyber security for this ubiquitous communication? These are some of the challenges that EPRI will be addressing in the next phase – not alone and not just working with the utilities – but working with you and the technology providers and the system operators And finally after having all these we will still not be able to transform to an integrated grid unless we have updated our market and rate structures to ensure that we are valuing both capacity and energy and we are valuing all resources that contributes to capacity and energy and we have clear technical guidelines on the performance metrics that is needed to contribute to energy and resources and all customers are equitably paying for these Transition: How do we ensure that we are building the right foundation for the integrated grid and put this concept into action? The integrated grid is not just an EPRI concept but we want the integrated grid to be the vision of all the stakeholders in the electricity sector and then we need to come up with an action plan. I ask that you read the paper and take time to understand it and review our proposed action plan for developing the foundation of the integrated grid
9
Grid Modernization System Operator Solutions Interactive Solutions
DER-Owner Solutions Network Reinforcement Price-Based Demand Response Distributed Storage (customer system) Centralized Voltage Control Direct Load Control Self-Consumption Static VAR Compensators On-Demand Reactive Power Power Factor Control Distributed Storage (distribution system) On-Demand Curtailment Direct Voltage Control Network Reconfiguration Wide-Area Voltage Control Frequency-based Curtailment Objective: It is ok that this slide is busy since you all you are trying to show is that there are a number of technology combination that can help transition to an integrated grid and one size will not fit all – another objective is to explain the three main buckets of technology and illustrate that DER technologies can also help in this transition. The coordinated demonstration of each option outlined in Table 2 across different types of distribution system feeders can help provide a knowledge repository that stakeholders can use to determine the prudence of the various investments needed to achieve an integrated grid. Grid modernization of the distribution system will include re-conductoring, and augmenting its infrastructure along with deploying smart technologies such as distribution management systems (DMS), communication, sensors, and energy storage is a key component of moving to the Integrated Grid. It is anticipated that this combination of infrastructure reinforcement and smart technology deployment can yield the lowest-cost solution for a given penetration level of DER in a feeder. The table here shows a menu of technology options for the distribution system operator side, the consumer side and the integration of the two that will enable a distribution feeder to reliably integrate greater DER penetration. System Operator solutions are those actions that the DSO could take to bolster the performance and reliability of the system where DER deployment is growing. DER-Owner solutions are those that could be employed at the customer end of the system through installation of technology or operational response measures. Interactive solutions are those that require close coordination between the System Operator and DER-Owner and generally provide the operator the ability to interact with the DER-Owner’s system to help maintain reliable system operation. Transition: Lets take a look at an example of a combination of technology that helps in transforming to an integrated grid The coordinated assessment of technology combination across different types of distribution system feeders is needed
10
Communication and Interconnection Rules
Connecting the Pieces Functions Information Model Standard Protocol Objective: Just like in transmission and central generation we have the rules and standards of communication established we need the same for DER and DSO Key Points: hundreds of manufacturers are making Der devices – without a standard language how do you communicate with the DSO? EPRI has done significant work in standard language for PV inverters and Storage interface but more needs to be done and more importantly these standards need to be adopted at state level or national level We also need to update the interconnection rule like Germany did in 2009 and in The current interconnection rule in US, IEEE 1547, requires DER to drop off from the grid when there is a grid disturbance. This works fine when you have small amount of DER. But imagine you are now in Germany with 64GW of DER in a system with 80GW peak load – imagine you had a disturbance and all PV and Wind disconnects from the grid. Huge risk of this happening and that is why Germany has not only changed the interconnection rules but they are requiring at a cost of $300million to retrofit existing 1million installation – which in many cases is just the cost to go to the customer premise and change the setting of the inverter – it will be essential to make the change now. While IEEE 1547 is now close to being changed so it does not prohibit DER to provide grid support but it does not require as well – so at a state or national level we will need to make that requirement Transition: Lets take a look at why the interconnection rule is so important 10
11
Integrated Planning and Operation
Transmission/ Independent System Operator (TSO/ISO) Distribution System Operator (DSO) Distributed Energy Resource (DER) Objective: critical to define the technical basis for the relationship between DER owners, DSOs, and TSOs or ISOs Both for planning and operation – what information is needed, who communicated what with whom. We have done this in the EMS world on the transmission side – we need to do this for the integrated system as well. Give two simple examples Imagine you have a distribution system with a feeder where you expect in future years to exceed the substation rating during sometime in summer. You have the option to change the transformer or you have the options to install strategically placed storage with customer PV that can help in alleviating the need for the upgrade for a longer time. But how can you do this unless DER is part of the planning process Also imagine in a feeder you have significant penetration of PV and during a bright summer day you need to back off some PV to ensure that feeder rating is not violated .Otherwise you may need to change the whole feeder and re-conductor the entire system. How do you do this without operationally integrating DER with the system While these two examples illustrate how DER can help in alleviating some of the need for grid augmentation but for widespread penetration grid HAVE to be augmented – an integrated grid allows this augmentation to be cost effective since in some cases DER can help in delaying or not requiring augmentation Transition: the most important requirement for transitioning to an integrated grid is going to be enabling policy and regulation – like establishing rules of engagement among DER/DSO/ISO like valuing capacity and energy - that is your role – so can we help?
12
Informed Policy and Regulation
Objective: this is what we are good at – testing, demonstration, modeling, analysis – and this provides critical data – performance, benefit, cost that will be needed by NARUC and other stakeholders to make informed policy and regulation Give an example of our PV monitoring system that we have nationwide to understand variability and then use this data with our modeling to assess impact and now conducting testing in full feeders to validate the modeling result Transition: Concept and talk now need to turn to action From Laboratory Testing to Simulation to Field Deployment to Fact-based Information
13
Next Steps 3 Key Areas & Research Challenges In Addition to EPRI’s Existing Research Portfolio Benefit/Cost Framework Interconnection Technical Guidelines Grid Planning & Operations Collaboration with All Stakeholders Including Regulatory/Policy
14
Integrated Grid Benefit/Cost Framework Building Upon Prior Efforts
There is a significant amount of available research and previous studies that will be leveraged during Phase II. Determination of transmission and distribution expansion needs based on expected photovoltaic (PV) deployment have been reported by Southern California Edison (SCE) in 2012 and are continuing under the California Solar Initiative (CSI) Round IV [1]. Classification of distribution enhancement options have been presented by both the European Union’s PV GRID initiative [2] and DERlab consortium [3]. “Value of Solar” studies by SAIC [4], Xcel Energy [5], Clean Power Research (CPR ) [6], and others provide example approaches for itemizing the costs and benefits associated with DER and classifying the value streams by stakeholder and monetization strategy. EPRI, as part of Department of Energy (DOE) funded efforts, has developed a cost-benefit framework for smart grid investments that will aid in investment categorization and stakeholder identification [7]. As the value streams are consolidated, the impact of cost allocation and recovery on utility customer classes has been studied extensively by Energy and Environmental Economics, Inc. (E3) for both California [8] and Hawaii [9]. Also recent efforts in Austin Energy and Minnesota are other examples to address DER. HOWEVER – each of these addresses pieces of the pie BUT NOT the entire pie. Many have contributed to specific aspects of the framework Need comprehensive approach: connecting all puzzle pieces
15
Integrated Grid Framework Timeline for Three Components
DER Penetration Scenario 2Q 2014 Power System Impact 3Q 2014 3Q 2014 Overall Benefit/Cost Aggressive Timeline that Leverages Existing Work
16
Distribution Feeder Hosting Capacity
PV Systems Baseline – No PV PV Penetration 1 PV Penetration 2 PV Penetration 3 Beyond… Process is repeated 100’s of times to capture many possible scenarios PV Impact Distribution Feeder PV Impact Heat Map Increase Penetration Levels Until Violations Occur Solar Measurements (DPV, etc.)
17
DER Integration – Cost & Benefit Understanding System Impacts of DER
Energy, Capacity & Ancillary Generation Capacity & Ancillary Service Central Generation Frequency Support Voltage & Frequency Stability Transmission Increasing Re-dispatch Transmission Constraint Loss Reduction Sub-transmission Increasing Penetration Level Increasing Penetration Level T&D Avoided Capacity Reverse Power Flow Reactive Power Balance Substation Loss Reduction Prevalent voltage, Capacity & Protection Issues Distribution Voltage Support Customer Localized Voltage & Capacity in Long Circuits
18
Overall Benefit/Cost Framework
Customer Perspective Utility Operations (people and how they do their jobs: non-fuel O&M, non-production assets, safety) System Operations (the power system and its efficiency: losses, combustion, dispatch optimization, emissions) Utility Assets (production assets required: GT&D) Reliability & Power Quality (frequency and duration of customer interruptions, harmonics, sags/swells, voltage violations) Customer (equipment & other direct customer costs) Society (environmental and other economic costs and benefits) Utility- Cost Function
19
Benefit/Cost Framework
Distribution Transmission Generation Benefit –Operational Loss reduction Avoided or deferred capacity Variable O&M Avoided energy and capacity cost Avoided RPS requirements Cost – System Impact Voltage regulation Overcapacity Protection Interconnection Network flow transmission constraint Ancillary services Cycling Capacity Other Values Power quality, reliability, resiliency Distribution Transmission Generation Benefit –Operational Loss reduction Avoided or deferred capacity Variable O&M Avoided energy and capacity cost Avoided RPS requirements Cost – System Impact Voltage regulation Overcapacity Protection Interconnection Network flow transmission constraint Ancillary services Cycling Capacity Distribution Transmission Generation Benefit –Operational Loss reduction Avoided or deferred capacity Variable O&M Avoided energy and capacity cost Avoided RPS requirements Societal Values (by others) Security, environmental, economic development and jobs, and many others… Comprehensive Framework to Support Investment/Policy Decisions: Consistent, Repeatable and Transparent
20
Overall Benefit/Cost Framework Leveraging Prior Work (CBA)
“Methodological Approach” Jointly funded by EPRI the US Department of Energy and provides framework for estimating benefits and costs, Jan 2010 CBA Guidebook, Rev 2 Provides a manual for practical application, with step by step instruction, Rev. Dec 2013
21
Next Phase Interconnection Technical Guidelines
Benefit/Cost Framework Interconnection Technical Guidelines Grid Planning & Operations
22
Interconnection Guidelines New Technical Considerations
Future Interconnection Standards Should Consider Voltage Support Frequency Support Fault Ride-Through DER/DSO Communication Both for planning and operation – what information is needed, who communicated what with whom. We have done this in the EMS world on the transmission side – we need to do this for the distribution system as well. Two examples: Imagine you have a distribution system with a feeder where you expect in future years to exceed the substation rating during a summer peak. You have the option to change the transformer or to install strategically placed storage near customer PV, which can defer the upgrade to a later date. How can you do this unless DER is part of the planning process? Also imagine in a feeder you have significant penetration of PV and during a bright summer day you need to curtail the PV to ensure that feeder rating is not violated. Otherwise you may need to change the whole feeder and re-conductor the entire system. How do you do this without operationally integrating DER with the system? While these two examples illustrate how DER can help in alleviating some of the need for grid augmentation but for widespread penetration grid HAVE to be augmented – an integrated grid allows this augmentation to be cost effective since in some cases DER can help in delaying or not requiring augmentation EPRI working on recommended technical guidelines for voltage and frequency ride through capability for DG based on new IEEE 1547a
23
Interconnection Guidelines Work Plan to Establish DER
2nd Q 2014 Review existing and proposed interconnection requirements 3rd Q 2014 Work with various stakeholders & RTO/ISOs on activities such as CA Rule 21 & IEEE 1547a 1st Q 2015 Develop draft technical interconnection requirements 2nd Q 2015 Educate and inform all stakeholders to revise existing interconnection requirements
24
Grid Planning and Operation Transmission/Distribution Interface Needed
Transmission/ Independent System Operator (TSO/ISO) Distribution System Operator (DSO) Distributed Energy Resource (DER) Establish technical requirements for transmission-distribution interface in a DER future Scheduling Real-time balancing Integrated markets Planning T&D operation Integrated System Modeling Both for planning and operation – what information is needed, who communicated what with whom. We have done this in the EMS world on the transmission side – we need to do this for the distribution system as well. Two examples: Imagine you have a distribution system with a feeder where you expect in future years to exceed the substation rating during a summer peak. You have the option to change the transformer or to install strategically placed storage near customer PV, which can defer the upgrade to a later date. How can you do this unless DER is part of the planning process? Also imagine in a feeder you have significant penetration of PV and during a bright summer day you need to curtail the PV to ensure that feeder rating is not violated. Otherwise you may need to change the whole feeder and re-conductor the entire system. How do you do this without operationally integrating DER with the system? While these two examples illustrate how DER can help in alleviating some of the need for grid augmentation but for widespread penetration grid HAVE to be augmented – an integrated grid allows this augmentation to be cost effective since in some cases DER can help in delaying or not requiring augmentation Requires a coordinated effort among all stakeholders
25
Grid Planning & Operations Work Plan for TSO/DSO Interface Guidelines
3rd Q 2014 TSO/DSO Technical Interest Group Define the scope of the work 1st Q 2015 Develop draft interface guidelines Peer review process for draft requirements 2nd Q 2015 Recommend interface guidelines Recommend specification for interface data exchange
26
Global Demonstrations & Modeling Preparing for Two Types of Demonstrations
Methodology Demonstration: System wide application of the Phase II methodology for a particular power system to assess the feasibility of an integrated benefit/cost methodology Technology Demonstration: One or more combination of technology demonstration for a specific part of a power system to assess the performance and benefit/cost of the technology
27
Example of Methodology Demonstration Guided Versus Unguided DER Deployment
Increasing Re-dispatch Transmission Constraint $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Unguided Case Total: $4,527 $3,214 $741 $571 Guided Case Total: $2,144 $759 $385 Aggregate Transmission Cost Aggregate Distribution Upgrade Cost Aggregate Interconnection Cost Reverse Power Flow Reactive Power Balance Prevalent Voltage, Capacity & Protection Issues Localized Voltage & Capacity in Long Circuits Total SCE T&D System Costs for 4200MW of DER Deployment (Million USD) Source: "The Impact of Localized Energy Resources on Southern California Edison's Transmission and Distribution System," Southern California Edison (SCE), Rosemead, CA, May 2012.
28
Example of Technology Demonstration Energy Storage Application for an Integrated Grid
Load Shifting Peak Shaving Voltage Control PV Smoothing
29
Example of Technology Demonstration DER as a Load Shaping Tool
Smart Appliances Distributed Energy Storage Electric Vehicles What can impact of DER be on the overall load shape? Source; ENEL – Measured Data from Southern Italy 29
30
Integrated Distribution Management System
BRIAN Renewables need the grid to contribute to electric energy supply “the right inverter functionality and application can significantly increase the grids ability to handle distributed generation, doubling in some cases” Integrating Distributed Resources with Distribution Technologies
31
Integrated Grid Success Wide Coordination is Crucial
Standards Organization Global R&D Key Stakeholders EPRI Members
32
Integrated Grid Stakeholder Engagement and Outreach
NARUC Winter Meeting – February NARUC Regional Conferences (Summer 2014) Mid-America, Western, New England, Southeastern, Mid-Atlantic… Commission Briefings Missouri, Iowa, Arizona (3/20), Hawaii, Wisconsin, Michigan… Other Stakeholders Hawaiian Solar Electric Power Association and Hawaii Consumer Advocate Mid-Atlantic Demand Response Initiative Wisconsin Distributed Resources Collaborative CAMPUT (Canadian Regulators) Energy Council (legislators in energy producing states)
33
Together…Shaping the Future of Electricity
Download Your Copy of the Paper For Additional Information Contact Hank Courtright at or Karen Forsten at
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.