1. 1 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Energy Commission Staff Distributed Energy Resources Training Seminar California Energy Commission, Sacramento Jairam Gopal, Judy Grau, Pramod Kulkarni and Ean O’Neill April 13, 1999 Technologies

2. 2 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Overview u Feb. 26 request from CPUC staff u Purpose: Provide technical background to support CPUC Rulemaking 98-12-015 u Feb. 22, 1999 Assigned Commissioner’s Ruling ØCost, current and projected status assumptions u Let’s keep this interactive and informal

3. 3 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 History u First major conference sponsored by EPRI, NREL and PG&E in 1992 ØBenefits were hypothesized; few installations at that time ØEmphasis was on utility perspective u April 25-26, 1996: DG Roundtable sponsored by Energy Commission ØPublic/private partnership to analyze barriers and develop blueprint for action Øwww.energy.ca.gov/CADER/documents/CADER_exec_summ.html

4. 4 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 u Outgrowth of DG Roundtable was concept for California Alliance for Distributed Energy Resources (CADER) u CADER focuses on identifying barriers, developing recommendations, and implementing solutions ØInterconnection ØMarket Assessment and Technology Characterization ØCommunications ØRegulatory and Legislative

5. 5 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Definitions u Distributed Generation (DG) -- CPUC u Distributed Energy Resources (DER) -- California Alliance for Distributed Energy Resources -- CADER u Distributed Utility (DU) - - Distributed Utility Associates

6. 6 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 CPUC OIR Definition of DG u “Generation, storage, or DSM devices, measures and/or technologies that are connected to or injected into the distribution level of the T&D grid.” u Located at customer’s premises on either side of meter u Located at other points in distribution system, such as utility substation

7. 7 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 CADER Definition of Distributed Energy Resources (DER) u Generates or stores electricity u Located at or near a load center u May be grid-connected or isolated u Has a greater value than grid power: ØCustomer value ØDistribution system benefits ØBack-up or emergency power ØSocial or environmental value

8. Distributed Utility Definition A Distributed Utility incorporates energy-significant distributed generation, storage and feeder-specific DSM/CEE in its T&D system to augment central station plants and optimizes T&D asset utilization. © Distributed Utility Associates, Used with Permission 8

9. Customer Efficiency Central Generation Today's Central Utility Tomorrow's Distributed Utility? Remote Loads Wind PV Genset Fuel Cell Battery Customers Central Generation © Distributed Utility Associates, Used with Permission 9

10. Operating The Distributed Utility GensetWindPhotovoltaic Central Generating Station ~ ~ Transmission Line Regional Dispatch Distribution Substation Energy Value Information Smart Controller Battery Communication & Control Links Distribution Line FactoryTownRemote Load Electric Power Monitoring & Control Lines © Distributed Utility Associates, Used with Permission 10

11. 11 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 DU Nodes in an Electric Utility Utility System 5000 MW Distribution Planning Areas 150 MW Distribution Substations 50 MW Distribution Feeders 10 MW Customers 1/3 Industrial1/3 Commercial1/3 Residential 1 MW100 kW5 kW © Distributed Utility Associates, Used with Permission

12. The Distributed Utility Opportunity: Improved Asset Utilization PG&E System Load and Percent of Feeder Maximum Load Electric Generation Asset Utilization Distribution Asset Utilization 100 90 80 70 60 50 40 30 0 Load Factor Percentage (%) 0102030405060708090100 Percentage of the Year (%) PG&E Typical Feeder 20 10 PG&E System Typical Feeder © Distributed Utility Associates, Used with Permission 12

13. 13 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Characteristics and Applications of Distributed Energy Resources Technologies Presented by: Pramod Kulkarni Energy Technologies Division

14. 14 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Overview u Define distributed energy resources (DER) technologies u List potential DER technologies u Present characteristics, attributes and impacts u Understand DER role in deregulated market u Discuss cost and deployment issues

15. 15 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Why Learn About DER Technologies? u DG/DER facilitate competition and expand consumer choice u Provide services in an unbundled electric service u Technology characteristics have a bearing on one level and nature of competition on the distribution grid. u Rulemaking deployment: easy for one technology and could be detrimental to another u Rule benefiting one customer class may not be best for another using the same technology

16. 16 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Issues Relevant for Rulemaking Affected by Technological Attributes u Impact on the safety and grid reliability u Reduced use of grid (non-recovered cost) u Degree of back-up support required from the distribution grid u Dispatchability u Determine the benefits of distributed generation to the grid (value) u Require advanced communications and metering for dispatch and control

17. 17 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Technologies u Fossil-fuel based distributed generation u Non-fossil fuel based generation u Storage technologies

18. 18 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 What Is Different About DER Technologies u Some technologies are old and deployed differently ØInternal-combustion engines ØGas turbines ØFuel cells ØBatteries

19. 19 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 What is Different About DG/DER Technologies u Recent technologies are tailored for DG/DER markets ØSmall wind systems ØSmall fuel cells (proton exchange membrane) ØPhotovoltaic (PV shingles, AC modules) ØStorage technologies (flywheels, SMES) ØMicro-turbines

20. 20 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Common Traits in DG/DER Technologies u Mass produced u Modular u Small (<20 MW) u Support system reliability u Provide economic advantage to end-user, ESP, and/or UDC u Provide customer and UDCs an alternative to standard generation options

21. 21 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 What are Distributed Energy Resources? u Technologies installed by customers, energy service providers (ESP) or a utility distribution company (UDC) at or near a load for an economic advantage over the distribution grid-based option.

22. 22 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 CADER’s Definition of Distributed Energy Resources u Generates or stores electricity u Located at or near a load center u May be grid connected or isolated u Greater value than grid power: ØCustomer value ØDistribution system benefits ØBack-up or emergency power ØSocial or environmental value

23. 23 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Economic Advantage From DG/DER Systems u Economic advantages included one or more of the following: ØLoad management ØReliability ØPower quality ØFuel flexibility ØCogeneration ØDeferred or reduced T&D investment or charge ØIncreased distribution grid reliability/stability

24. 24 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Fossil Fuel Technologies u Internal-combustion engines ØDiesel engines ØNatural gas engines u Micro-turbines u Fuel cells u Stirling engines

25. 25 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Commercial Status of DG/DER

26. 26 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Benefits of Fossil-Fuel Based Distributed Generation u Dispatchable u Can be used for baseload or peaking u Reliable u Used on either side of meter u Fuel easily available u First to be deployed

27. 27 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Deployment Issues of Fossil-Fuel Based Distributed Generation u Air and noise emissions (except fuel cell) u Islanding u Interconnection standards u Reduced use of distribution system u May need upgrading of fuel supply system (e.g gas pressure)

28. 28 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Renewable Energy Technologies u Photovoltaics u Solar-dish Stirling u Small wind systems u Large wind systems u Stirling engines (biomass, LFG)

29. 29 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Small Wind Turbines are Different u Large Turbines (300-750 kW) Installed in “Windfarm” Arrays Totaling 1 - 100 MW $1,000/kW; Designed for Low Cost of Energy Requires 6 m/s (13 mph) Average Sites  Small Turbines (0.3-50 kW) Installed in “Rural Residential” On- Grid and Off-Grid Applications $2,500-5,000/kW; Designed for Reliability / Low Maintenance Requires 4 m/s (9 mph) Average Sites

30. 30 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Modern Small Wind Turbines: High Tech, High Reliability, Low Maintenance u Aerospace Technology u High Reliability - Low Maintenance u Easily Retrofits to Homes & Businesses u Typical Costs: $ 3 / Watt (AC, Installed) u O&M Costs ~ $0.005/kWh u American Companies Lead in Technology and Market Share u Further Advances Coming - DOE Advanced Small Wind Turbine Program: 4 Projects, 8 - 40 kW 10 kW Bergey Turbine

31. 31 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Commercial Status of DG/DER

32. 32 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Benefits of Renewable Based Distributed Generation u No/low noise or air pollution u Independent of fossil fuel price changes u Good for very small, modular applications u Could be used on either side of a meter u Coincident with peak demand when solar resource is used

33. 33 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Deployment Issues of Renewable Based Distributed Generation u Intermittent availability (unless used with storage) u Islanding u Less than 2 MW (100 kW or Less) u Interconnection standards and cost u Will need grid support u New industry, lacks public exposure

34. 34 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Storage Technologies u Batteries u Modular pumped hydro u Superconducting magnetic energy storage (SMES) u Flywheels u Ultracapacitors

35. 35 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Cryostat Assembly Diagram courtesy of American Superconductor

36. 36 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Storage Provides Solutions to Power Quality Problems

37. 37 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Benefits of Storage Technologies u Multiple Uses: ØLoad management ØPower quality ØDispatchability ØUninterrupted power supply ØReliability/Availability ØDynamic benefits for the grid

38. 38 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Storage As a Distributed Energy Resource u Storage type and size varies u Determining factors include: ØPurpose of use ØDuration of use ØComparative cost

39. 39 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Benefits of Storage Technology as a Distributed Energy Resource (cont’d) u Provide auxiliary services on either side of the meter u Used by UDC, ESP, ESCo and end-user u Wide range of size and storage duration u Costs will come down faster as core technologies are used for transportation u Batteries and SMES available now

40. 40 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Impact of DG/DER Technology Deployment u Empower customers by providing a choice u Provide missing or expensive components of an unbundled electrical service u Allow feed-back of electricity to grid u Create safety concerns, real or perceived, for UDC u Provide dynamic benefits to the distribution system u Positive or adverse impact on the T&D System

41. 41 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Most Likely Users of DG in Next Five Years

42. 42 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Differences in Technical Attributes That Require Attention in Rulemaking

43. 43 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Auxiliary Technologies Essential for Integration of DER to the Grid u Power electronics and power conditioners ØImprove power quality ØSafety u Control, metering and communications ØDispatch ØBilling ØSafety u Planning and valuation tools ØValue to grid ØCapacity needs assessment

44. 44 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Technology Mix Affects Grid Impacts u Source of capacity on the grid affects safety,backup and cost Ø5 MW diesel-generation capacity delivers more kWh and is dispatchable compared to 5 MW of PV Ø5MW diesel adds more pollution than 5 MW fuel cells Ø5MW of a natural gas engine provides baseload power with little or no backup, but 5 MW of wind requires backup

45. 45 DG Seminar on R..98-12-015 / 99-DIST-GEN(1) / Sacramento, CA / April 13, 1999 Next Steps for Assessing Impact of Various Technologies u Better understand impact of DG/DER systems on the grid through site monitoring u Demonstrate new DG/DER systems u Valuation of DG/DER for system reliability and support