WELCOME. California Energy Storage Roadmap 2 nd Workshop. California Public Utilities Commission October 13, 2014 San Francisco

Transcription

1 WELCOME California Energy Storage Roadmap 2 nd Workshop California Public Utilities Commission October 13, 2014 San Francisco SAFER, SMARTER, GREENER

2 Safety and Emergency Information In the event of an emergency, please calmly proceed out the exits. We have four exits: Two in the rear and one on either side of the speakers. In the event that we do need to evacuate the building: (For the Rear Exits) - Head out through the courtyard, and down the front steps. Continue west on McAllister Street. Turn north onto Franklin Street. Turn west onto Turk Street and proceed to Gough Street. (For the Side Exits) - Go out of the exits and you will be on Golden Gate Avenue. Proceed west to Franklin Street. Turn north onto Franklin Street. Turn west onto Turk Street and proceed to Gough Street. Our assembly point is Jefferson Square Park on Turk and Gough Streets. 2

3 Other Information WiFi Access: login: guest password: password Restrooms: out the Auditorium doors and down the far end of the hallway. WebEx TID=me542331f2d abe1de 7ff7dc86 Meeting Number: Meeting Password: storage Teleconference information Call-in: passcode: Websites: CPUC: CAISO: 3

4 Agenda 10:00 10:15 Introduction Arthur O Donnell 10:15 10:30 Translating Barriers to Actions Heather Sanders 10:30 12:30 Actions to Advance Revenue Opportunities Olof Bystrom Lorenzo Kristov Aloke Gupta 12:30 1:30 Lunch Break 1:30 2:30 Actions Targeted at Cost Reduction Beth Reid Peter Klauer Mike Gravely 2:30 3:00 Actions Focused on Process and Timing Improvements 3:00-3:30 Identify Interdependencies and Determine Priorities to Minimize Delays 3:30-4:00 Applicability to Storage Configuration and Use Cases Rick Fioravanti Tom Flynn Jamie Ormond Heather Sanders Arthur O Donnell Robert Anderson Heather Sanders 4:00-4:30 From Actions to Solutions The Way Ahead Tom Flynn Aloke Gupta Mike Gravely 4 4:30 Adjourn Arthur O Donnell

5 Thank you for providing comments from September 4 workshop. 24M Technologies Alton Energy CESA EPRI Iberdrola Renewables MegaWatt Storage Farms MESA Standards Alliance Office of Ratepayer Advocates Quanta Technology SCE SDG&E The Cool Solutions Company The Energy Coalition The Nevada Hydro Company The Six Cities Trimark Associates PG&E 5

6 Overview of initial public outreach by DNV GL and Olivine 6

7 Translating barriers to actions Heather Sanders, California ISO 7

8 Barriers emerge based on objectives to maximize revenue, minimize cost, and manage time. Products and services Rules and requirements Complexity and uncertainty Revenue Financial barriers Ancillary Service barriers Costs Market and Regulatory barriers Standards barriers Metering barriers Telemetry barriers Time Interconnection barriers Modeling Barriers 8

9 From Barriers to Actions Actions - Revenue Opportunity Defining and communicating grid needs will clarify gaps help identify new products Clarify existing wholesale market product opportunities for storage Refine existing and add new wholesale market products to meet grid needs Identify gaps in rate treatment and identify existing rules that could address issues Define multiple-use applications of storage to facilitate development of models and rules Determine hybrid storage configurations to enable prioritization and development of requirements Assess existing methodologies for evaluating storage and identify or develop a preferred common methodology Ancillary Services Financial Interconnect ion x x x x x x x x x x x x x Market and Regulation x Metering Modelling Standards x x x x x Telemetry 9

10 From Barriers to Actions Actions - Cost Reduction Ancillary Services Financial Interconnec tion Market and Regulation Metering Modelling Standards Telemetry Review metering requirements for opportunities to reduce costs Review telemetry requirements for opportunities to reduce costs Assess codes and standards to identify gaps and best practices Review interconnection process for small distribution-connected resources Actions - Process and Timing Clarify interconnection processes to make it predictable and transparent x x x x x x x x x 10

11 Actions to Advance Revenue Opportunities Olof Bystrom, DNV GL Lorenzo Kristov, California ISO Aloke Gupta, CPUC 11

12 Several actions were identified to enhance understanding and expand revenue opportunities for energy storage. Products and services Revenue Financial barriers Ancillary Service barriers Define and communicate grid needs Clarify existing wholesale market products Refine existing and evaluate the need for new wholesale market products Identify gaps in rate treatment and identify existing or new rules that could address issues Define multiple-use applications of storage Determine hybrid storage configurations Assess existing methodologies for evaluating storage and identify or develop a preferred common methodology 12

13 Defining and communicating grid needs will clarify gaps in existing markets and help identify new products. Energy storage in California is facing a bit of a cart before the horse syndrome in that there are statutory mandates and targets for procurement by utilities; however, the market rules, grid needs and general regulatory framework to value and process energy storage products does not yet exist Iberdrola Renewables Actions Describe and clarify operational needs at the transmission level, and the operating characteristics required of storage and other resources, connected at either the distribution or transmission level, in order to meet these needs. Describe and clarify operational needs at the distribution level, and the operating characteristics required of storage and other resources connected at the distribution level in order to meet these needs. Facilitate clarification by IOUs of operational constraints that would limit the ability to accommodate storage on the distribution system and behind the customer meter. Venue(s) CAISO CPUC CPUC 13

14 Clarification and education about existing wholesale market product opportunities for storage is needed. o It appears that stakeholders do not fully understand the range of wholesale market products and models that exist today, causing the perception that there is a lack of wholesale products that value the services that energy storage can provide. Actions Clarify existing energy and ancillary service market products and requirements for energy storage to participate in the ISO market. Clarify roles of storage in an evolving Resource Adequacy framework. Venue(s) CAISO CPUC 14

15 Refine existing and evaluate the need for new wholesale market products to meet grid needs. Actions Identify gaps and consider changes or additions to existing wholesale market products that would better meet grid needs and improve revenue opportunities for resources such as storage that can provide those needs. Further examine and clarify the role of storage in deferring or eliminating the need for transmission or distribution upgrades. Consider revising the ISO s procedure for testing and certifying resources for ancillary services. (COST reduction action) Streamline rules for aggregation of distributed storage units to participate in ISO markets, including participation via use of the NGR model. Venue(s) CAISO CAISO, CPUC CAISO CAISO Evaluate the need and potential for the development of distribution level grid services and products that provide new revenue opportunities for distribution connected storage resources. CPUC 15

16 Identify gaps in rate treatment and identify existing or new rules that could address issues. Barriers: o o Lack of clarity regarding wholesale versus retail rate treatment for such things as auxiliary load, station power, and roundtrip efficiency. Lack of clarity whether energy storage charging should be considered measured demand for purposes of infrastructure charges. Actions Clarify rate treatment for the charging mode of gridconnected or distribution-connected storage participating in the wholesale market under current ISO market settlement rules. Clarify existing tariffs for Behind the Meter storage devices that are paired with NEM generators. Consider new proceeding for stand-alone Behind the Meter storage devices to address rates for charging and exporting power. Venue(s) CAISO, CPUC CPUC CPUC 16

17 Define multiple-use applications of storage to facilitate development of models and rules. Barriers: o Multiple-use or dual-use refer to scenarios in which a storage facility seeks to provide service to multiple entities and is compensated through multiple revenue streams. Lack of clarity regarding various types of multiple-use arrangements of storage, including: Serving as a transmission asset and recovering part of its costs through the transmission access charge (TAC) while also participating in the markets and earning market revenues. (This is disallowed by FERC) Providing reliability services to the distribution grid and market services to the wholesale market. Providing load-management services to end-use customers while also participating in the wholesale energy market. Actions Define and develop models and rules for multiple-use scenarios of storage where feasible. Venue(s) CPUC, CAISO 17

18 Determine hybrid storage configurations to enable prioritization and development of requirements. Barrier: o Hybrid refers to configurations in which a storage facility is paired with and functions in coordination with another non-storage type of resource or an end-use customer load Lack of clarity regarding definitions, configurations and uses of behind-the meter storage and generation combinations. The lack of clear definition for the term hybrid storage and dual use with respect to site configuration and programmatic assumptions could create ambiguity with respect to which rules and regulations are applicable. Actions Identify and develop clear models of use cases for hybrid energy storage sites, and prioritize them for purposes of facilitating their participation. Venue(s) CAISO, CPUC, IOUs For the use cases of greatest interest or greatest likelihood of near-term development, clarify the requirements and rules for participation. CAISO, CPUC, IOUs 18

19 Assess existing methodologies for evaluating storage and identify or develop a preferred common methodology. Barrier: o Lack of transparent, common methodology and tools for evaluating storage for use by utilities and the CPUC in making procurement decisions. Actions Prepare report or summary of efforts underway to develop publicly available models for assessment of energy storage. Consider refinements to the evaluation methodologies used by IOUs for to support CPUC decisions on storage procurement. Venue(s) CEC CPUC 19

20 Actions Targeted at Cost Reduction Beth Reid, Olivine Peter Klauer, California ISO Mike Gravely, Energy Commission 20

21 Several actions were identified reduce cost in areas of interconnection, standards, and metering and telemetry. Rules and requirements Costs Market and Regulatory barriers Standards barriers Metering barriers Telemetry barriers Review metering requirements for opportunities to reduce costs Review telemetry requirements for opportunities to reduce costs Assess codes and standards to identify gaps and best practices Review interconnection process for small distribution-connected resources to reduce costs 21

22 Review metering requirements for opportunities to reduce costs. Barrier: o Concern over expensive and potentially duplicative metering requirements for energy storage assets. Actions Establish the value of and develop a regulatory and policy framework under which the ISO and the utility can share metering and/or meter data. Establish rules for resource owners to submit settlement quality meter data. Establish rules for utility subtractive metering for behind the meter wholesale resources. Establish rules for certifying sub-metering and third-party meter data collection and VEE. Complete the Expanding Metering and Telemetry Options Phase I and II initiatives expand scenarios for SC metered entities. Venue(s) CPUC, CAISO CAISO CPUC CPUC CAISO 22

23 Review telemetry requirements for opportunities to reduce costs Barrier: o Concern over cost of telemetry with respect to CAISO requirements for purchase and installation of hardware solution and around the clock network connectivity. Actions Evaluate CAISO telemetry requirements for smaller resources. Venue(s) CAISO Evaluate KYZ, increasing 1-minute requirement, 10 MW limit. Evaluate value of common telemetry framework for California. Complete the Expanding Metering and Telemetry Options Phase I and II initiatives definition and support for data concentrators. CAISO CAISO CAISO 23

24 Assess codes and standards to identify gaps and best practices. Barrier: o Lack of standards and codes that currently apply and should apply to energy storage. o o o Safety and operational standards and codes applicable to energy storage should be identified. The areas in the energy storage deployment that require standardization should to be identified. Existing standards applicable to energy storage need to be updated. Actions Review existing fire protection codes for various energy storage technology and applications and identify best practices. Determine applicability and scope of UL and other certifications for stationary storage systems. Venue(s) CEC CEC 24

25 Review interconnection process for small distribution-connected resources to reduce costs. Barrier: o Concerned with interconnection costs, in particular those applicable to small distribution-connected resources. Actions Address certification process for integrated device metering. Venue(s) CPUC Address fees for interconnection of non-exporting resources. CPUC 25

26 Actions Focused on Process and Timing Improvement Rick Fioravanti, DNV GL Tom Flynn, California ISO Jamie Ormond, CPUC 26

27 Clarify interconnection processes to make it predictable and transparent Complexity and uncertainty Interconnection barriers Modeling Barriers Time Actions Clarify existing interconnection processes, including developing process flow charts and check lists. Coordinate between Rule 21 and WDAT to streamline queue management processes. Evaluate the potential for a streamlined or faster track interconnection process for storage resources that meet certain use-case criteria. Venue(s) CAISO, CPUC CPUC CAISO, CPUC, IOUs 27

28 Identify Interdependencies and Determine Priorities to Minimize Delays Heather Sanders, California ISO Arthur O Donnell, CPUC 28

29 Applicability to Storage Configuration and Use Cases Robert Anderson, Olivine Heather Sanders, California ISO 29

30 The matrix seeks to convey what actions facilitate each use case to realize energy storage contributing to the grid. Where the resource connects to the grid Interconnection location Configuration Transmission Stand-alone Energy Storage Technology and co-location with other resources Transmission / Distribution Wholesale Participation Application All or combination None Energy, Non-Spin, Spin, Regulation General and specific actions that advance energy storage Action Detailed Detailed Detailed Action 1 Action 2 Action 3 Relative Relative Relative Score Score Score Define and communicate grid needs Clarify operational needs at transmissio n level Clarify operational needs at distribution level Example Facilitate clarification by IOUs of operational constraints Clarify existing wholesale market product opportunities for storage Clarify existing energy and AS market products in ISO markets Clarify roles of storage in an evolving RA framework 3 N/A Distribution Behind the meter Customer-sited, separate meter All or combination Energy, Non-Spin, Spin, Regulation Demand charge management Level of impact each action has on advancing the configuration to provide grid services. Relative Score Relative Score Relative Score Services / application provided to the distribution grid / retail customer 30 Services provided to the wholesale market / transmission grid

31 From Actions to Solutions the Way Ahead Tom Flynn, California ISO Aloke Gupta, CPUC Mike Gravely, CEC 31

32 Stakeholder participation continues to be crucial. Please provide comments by October 27 Early submission of comments help facilitate refining of Roadmap 32

33 Stakeholder participation continues to be crucial Early submission of comments help facilitate refining of Roadmap. Date September 18 October 2 Roadmap Milestone Stakeholder comments due Publish draft Roadmap October 13 Stakeholder workshop #2 October 27 November TBD December Stakeholder comments due Considering Stakeholder conference call Publish final Roadmap 33

34 Thank you for your participation! us at the energy storage mailbox: Find information at the Energy storage roadmap website: ystorageroadmap.aspx 34