Status and Next Steps NARUC Electricity Committee Hank Courtright, Senior VP July 15, 2014
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1 Status and Next Steps NARUC Electricity Committee Hank Courtright, Senior VP July 15, Electric Power Research Institute, Inc. All rights reserved.
2 Meet the Challenge An Integrated Grid 2
3 Interconnected Startup Power Grid Supplied Power 24 by 7 Electricity Interconnected Value of Grid Connectivity 3
4 Interconnected but Not Integrated Interconnected Value of Grid Connectivity Integrated Value of DER and Grid Integration Enables Values of all Resources 4
5 Foundation of An Integrated Grid 1. Grid Modernization 2. Communication Standards and Interconnection Rules 3. Integrated Planning and Operations 4. Informed Policy and Regulation 5
6 Grid Modernization System Operator Solutions Network Reinforcement Centralized Voltage Control Static VAR Compensators Distributed Storage (distribution system) Network Reconfiguration Interactive Solutions Price-Based Demand Response Direct Load Control On-Demand Reactive Power On-Demand Curtailment Wide-Area Voltage Control DER-Owner Solutions Distributed Storage (customer system) Self-Consumption Power Factor Control Direct Voltage Control Frequency-based Curtailment The coordinated assessment of technology combination across different types of distribution system feeders is needed 6
7 Communication and Interconnection Rules 7 7
8 Integrated Planning and Operation Distributed Energy Resource (DER) Distribution System Operator (DSO) Transmission/ Independent System Operator (TSO/ISO) 8
9 Informed Policy and Regulation From Laboratory Testing to Simulation to Field Deployment to Fact-based Information 9
10 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 10
11 Integrated Grid Benefit/Cost Framework Building Upon Prior Efforts Many have contributed to specific aspects of the framework Need comprehensive approach: connecting all puzzle pieces 11
12 Example of Overall Benefit/Cost From System Impact to Benefit/Cost Energy, Capacity & Ancillary Frequency Support $100 $90 $80 $70 $60 $50 Total: $82.20 $58.70 Avoided Energy Deferred Gen. Capacity Deferred T&D Avoided Line Losses Emissions Reduction Loss Reduction $40 $30 T&D Avoided Capacity $20 $10 $0 $11.50 $6.20 $ $0.70 Xcel Energy Avoided Cost for 59MW of PV Deployment ($/MWh) Source: "Costs and Benefits of Distributed Solar Generation on the Public Service Company of Colorado System," Xcel Energy Services, Denver, May,
13 Integrated Grid Framework Timeline for Three Components DER Penetration Scenario 2Q 2014 Power System Impact 3Q 2014 Overall Benefit/Cost 3Q 2014 Aggressive Timeline that Leverages Existing Work 13
14 Increasing Penetration Level Increasing Penetration Level DER Integration Cost & Benefit Understanding System Impacts of DER Energy, Capacity & Ancillary Central Generation Generation Capacity & Ancillary Service Frequency Support Transmission Voltage & Frequency Stability Loss Reduction Sub-transmission Increasing Re-dispatch Transmission Constraint T&D Avoided Capacity Substation Reverse Power Flow Reactive Power Balance Loss Reduction Distribution Prevalent voltage, Capacity & Protection Issues Voltage Support Customer Localized Voltage & Capacity in Long Circuits 14
15 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
16 Overall Benefit/Cost Framework 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 Customer Perspective 16
17 Next Phase Interconnection Technical Guidelines Benefit/Cost Framework Interconnection Technical Guidelines Grid Planning & Operations 17
18 Interconnection Guidelines New Technical Considerations Future Interconnection Standards Should Consider Voltage Support Frequency Support Fault Ride-Through DER/DSO Communication EPRI working on recommended technical guidelines for voltage and frequency ride through capability for DG based on new IEEE 1547a 18
19 IEEE 1547a TM On 16 May 2014 IEEE-SA Standards Board approved the Amendment to Std 1547 TM Changes to IEEE Std existing Voltage Regulation, Voltage, and Frequency are made by this amendment. 19
20 Major Changes in 1547 Amendment IEEE 1547 TM 2003 DR shall not actively regulate the voltage at the PCC DR shall cease to energize if frequency >60.5Hz Tighter abnormal V/F trip limits and clearance times IEEE 1547a TM 2014 Coordination with and approval of, the area EPS and DR operators, shall be required for the DR to actively participate to regulate the voltage by changes of real and reactive power DR shall be permitted to provide modulated power output as a function of frequency Much wider optional V/F trip limits and clearance times Under mutual agreement between the EPS and DR operators, other static or dynamic frequency and clearing time trip settings shall be permitted 20
21 Interconnection Guidelines Work Plan to Establish DER 2 nd Q rd Q st Q nd Q 2015 Review existing and proposed interconnection requirements Work with various stakeholders & RTO/ISOs on activities such as CA Rule 21 & IEEE 1547a Develop draft technical interconnection requirements Educate and inform all stakeholders to revise existing interconnection requirements 21
22 Grid Planning and Operation Transmission/Distribution Interface Needed Distribution System Operator (DSO) Distributed Energy Resource (DER) Transmission/ Independent System Operator (TSO/ISO) Establish technical requirements for transmission-distribution interface in a DER future Scheduling Real-time balancing Integrated markets Planning T&D operation Integrated System Modeling Requires a coordinated effort among all stakeholders 22
23 Grid Planning & Operations Work Plan for TSO/DSO Interface Guidelines 3 rd Q 2014 TSO/DSO Technical Interest Group Define the scope of the work 1 st Q nd Q 2015 Develop draft interface guidelines Peer review process for draft requirements Recommend interface guidelines Recommend specification for interface data exchange 23
24 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 24
25 Example of Methodology Demonstration Guided Versus Unguided DER Deployment $5,000 $4,500 Total: $4,527 Increasing Re-dispatch Transmission Constraint $4,000 $3,500 $3,000 $3,214 Aggregate Transmission Cost Aggregate Distribution Upgrade Cost Aggregate Interconnection Cost Reverse Power Flow Reactive Power Balance $2,500 Total: $2,144 $2,000 $1,500 $1,000 $741 $1,000 $385 Prevalent Voltage, Capacity & Protection Issues $500 $0 $571 Unguided Case $759 Guided Case 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
26 Example of Methodology Demonstration DER as Distribution System Technology Communication-Connected Distributed Solar and Storage Systems as Beneficial Distribution System Assets 26
27 Example of Technology Demonstration Energy Storage Application for an Integrated Grid Load Shifting Peak Shaving Voltage Control 27 PV Smoothing
28 Example of Technology Demonstration Grid Connected Micro grids Application Distribution Substation Bulk supply connection (sub-transmission) Full Substation Microgrid Full Feeder Microgrid Gen Other Feeders Gen Gen Single Customer Microgrid Partial Feeder Micro-grid Feeder Gen 28
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? MW - Lunedì, 30 Agosto 2010 MW - Lunedì, 29 Agosto 2011 MW - Lunedì, 27 Agosto Source; ENEL Measured Data from Southern Italy
30 Transforming to an Integrated Distribution System Distribution Management System Integrating Distributed Resources with Distribution Technologies 30
31 Integrated Grid Success Wide Coordination is Crucial Standards Organization Global R&D Key Stakeholders EPRI Members 31
32 Together Shaping the Future of Electricity Download Your Copy of the Paper For Additional Information Contact Hank Courtright, Barbara Tyran,
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