/ ©2017 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED1
THE DER DRIVEN TRANSFORMATION
IMPERATIVE
ADVANCED INTEGRATED
PLANNING
SEPA
GRID EVOLUTION SUMMITJULY 27, 2017
Erik [email protected]
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OUR VIEW ON THE INDUSTRY TRANSFORMATIONTHE ENERGY CLOUD1
EMERGING: THE ENERGY CLOUD
Distributed, Two-Way Power Flows
TODAY: TRADITIONAL POWER GRID
Central, One-Way Power System
1 Navigating the Energy Transformation: Building a Competitive Advantage for Energy Cloud 2.0 (white paper)
©2016 Navigant Consulting, Inc. All rights reserved. (Source: Navigant Consulting)
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PUBLIC UTILITIES FORTNIGHTLY:
STATE & FUTURE OF THE POWER INDUSTRY
Survey of 400+ key industry professionals – July, 2017
• Nearly half of the respondents cite increased
penetration of DER as the most disruptive
threat to traditional utility business
models over the coming decade.
• The effects of DER are industry-wide and will
have a deep impact on the existing
market.
• DER was by far the dominant trend cited
among respondents, with all other trends
receiving only a small fraction of votes.
“Which one of the following trends is the
most disruptive to traditional utility
business models over the next decade?”
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Distributed
Generation
Distributed
Storage
Microgrids
Demand
Response
Energy
Efficiency
Electric
Vehicles
DISTRIBIUTED ENERGY RESOURCES (DER):
WHAT’S INCLUDED?
Resources can be utility, customer, or 3rd party owned on the grid in
front of the meter or customer owned behind the meter.
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DER IN THE UNITED STATESWE FORECAST STRONG DER PENETRATION GROWTH OVER THE NEXT DECADE
Observations
• DER deployments
will reach ~30 GW
this year in the US,
versus new central
station generation
(19.7GW)
• On a 5-year basis
(2015-2019), DER in
the US is growing
almost 3 times faster
than central
generation (168 GW
vs. 57 GW).
(Source: Navigant Research)
Annual Installed DER Power Capacity Additions
by DER Technology, United States: 2015-2024
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(MW
)
Distributed Generation Distributed Energy Storage Microgrids Electric Vehicle Charging Load Demand Response Energy Efficiency
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EXAMPLE CHALLENGE: LOAD FORECASTING
TRADITIONAL TECHNIQUES SHOWING SIGNS OF AGE
• “Past performance is no guarantee of future results”- DERs are less predictable (both in installed capacity, and daily performance)
- Weather patterns seem to be breaking from long term trends
- Customer behavior (in some cases) is evolving
- New types of load not predicted or well understood yet (e.g., EVs, grow-ops)
• Geo-special granularity now required
• Recent system-wide forecasting misses—a few examples:- Large Eastern utility misses spring/winter forecast: points to unusual weather
- Southern utility misses annual forecast significantly: reasons under review
- Mid-sized Northern IOU misses peak forecast on high-side for several years running: weather?
- Mid-Atlantic utility load forecast used to justify construction of large generating station: actual loads falling far short (economic downturn played a clear role here, and no-one predicted it, to be fair)
• Implications: - Under- or over- investment
- Investment/upgrades in wrong or too many locations
- revenue shortfalls
• And there are challenges beyond forecasting…
Note: the availability of advanced modeling techniques and cost-effective big data computing power are no longer impediments to conducting advanced analytics & load forecasting with these data
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PLANNING MUST BE MORE AUTOMATED AS WELL AS
INTEGRATED = ADVANCED INTEGRATED PLANNING
Advanced Integrated Planning:
• Integrated internal functions, as well as
stakeholder process
• “Optimization” of investment across customer,
distribution, transmission, generation
• Uncertainty and risk analysis fundamentally
integrated
Strategic grid and resource investment
and risk assessment
Stakeholder and regulatory input and
adjustment
Revise programs and adjust strategies based on results and market
feedback
Customer adoption scenarios: load and
DER forecasts at zone/feeder level
Integrated customer, distribution,
transmission and resource analysis
2-3 year planning cycle
Traditional Planning:
• Largely internal to utility
• Some coordination between planning
functions
• Stakeholder process engaged at the end
of the cycle
Stakeholder
processes
Load
forecasting
Distribution
planning
Integrated
Resource
Planning
Transmission
planning
Regulators,
City
Council,
etc.
Sub-year iterations
Program and DER procurement priorities and grid investment
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Internal Operations: People and processes within utility planning functions
Internal Systems
Context: OT/IT production
systems
2. Distribution
Planning &
Analysis
1. Advanced Load
and DER Forecasting (with integrated customer
program / resource
scenarios)
4. Integrated
Resource Planning
(IRP)
5. Coordination, Analysis
and Integration (coordinated data flows with
integrated benefit-cost and
reliability analysis)
ADVANCED INTEGRATED PLANNING:
HIGH LEVEL ANALYTICAL FRAMEWORK
3. Transmission
Planning &
Analysis
External Market: Evolving technology and vendor landscape, new service providers, etc.
Automation and
Coordination
Visualization and Planning Management Layer
Add: Criteria—
Reliability
Economic
Environmental
Risk/Uncertainty
Add: system stability
analysis: voltage
oscillation risk
Aggregate
Load/DER
Wholesale Values of
Capacity/Energy
DER
Scenarios
Impact of DER
Installations
Analysis coordination,
automation and data
flow control
Geo-special
scenario data
Add: dynamic
analysis
(transient
impacts)
Add: Load profile
management (daily,
hourly); geo-
special granularity
Add: Cross
Team and
cross analysis
coordination
Dynamic, standardized data exchange
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2. Distribution
Planning &
Analysis
1. Advanced Load
and DER Forecasting
4. Integrated
Resource Planning
(IRP)
5. Coordination, Analysis
and Integration
ADVANCED INTEGRATED PLANNING:
CAN START WITH EXISTING TOOL SETS
3. Transmission
Planning &
Analysis
Visualization and Planning Management Layer
• CYMDist (steady state &
dynamic)
• Synergi
• Milsoft
• DEW
• GridLabD
• PSSE: Network models needed
to assess advanced concepts
(e.g. networked systems)
• Siemens PTI - PSSE,
Python, MUST
• Power world
• GE - PLSF
• Power Gem - TARA
• Matlab
• EMTP
• PSCAD
• Gridview
• Promod
• Plexos
• Aurora
• Strategist
• POM
• Excel
• R
• dB/SQL
• SAS
• Analytica
• TROVE
• IA
• Energia
• Others evolving
• Python Scripting
• GRID+ (Benefit/Cost
Analysis, Risk Assessment)
• Python (Pandas, Django,
d3.js, crossfilter.js, dc.js,
leaflet.js)
• HTML5Broad array of
commercial tools
in use today
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ANALYSIS OF CIRCUIT UPGRADE COSTS TO MEET DER
PENETRATION LEVELS
High-Level approach:
• Analyze dynamic
performance of distribution
feeder for high penetration
DER
Objectives:
• Apply predictive modeling
on representative
distribution feeders to
assess PQ impacts from
variable renewable output
• Assess the capability of
advanced inverter
functionality to mitigate PQ
impacts
Standard Inverters
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
0% 50% 100%
Sys
tem
Up
gra
de
Co
st ($
00
0)
DER Penetration (% of Feeder Thermal Rating)
Advanced Inverters
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
0% 50% 100%
DER Penetration (% of Feeder Thermal Rating)
= violation
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INVESTMENT OPTIMIZATION - ANALYSISEXAMPLE OF GRID+ TOOL OUTPUTS
The net present value of deployed distribution grid capabilities is $3.2B
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
$B (
nom
inal
)
EnvironmentalReliabilityEconomicCosts
2005 2010 2015 2020 2025 2030 2035 2040 2045
-6 -4 -2 0 2 4 6 8 10 12
Like
lihoo
d of
Occ
urre
nce
$B (present value)
Approximately 3% chance of negative NPV
Scenario Best Expected Worst
NPV ($B) 5.0 3.2 1.0
Uncertainty analysis for net present value (2016 $B)
Net present value of investments (2016 $B) Annual benefits and costs of investments (nominal $B)
Distribution of costs and benefits across the value chain (2016 $B)
The best and worst case represent
the 95th and 5th percentile
outcomes, respectively.
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0$B
(pr
esen
t val
ue)
EnvironmentalReliabilityEconomicCost
Generation Transmission Distribution Customers
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2005 2010 2015 2020 2025 2030 2035 2040 2045
$B (
pres
ent v
alue
)
$3.2B
$1.5B
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TO MEET THE IMPERATIVE…
• Convene a cross-functional team charged with planning in a high-DER
environment:
- examine how existing planning tool sets are used, and whether they can meet the more
dynamic needs of high DER planning
- understand the gaps, and what external tools are available and appropriate
- Develop internal tools to coordinate across external planning tools processes
• Develop DER adoption scenarios that will impact the business
- Develop corresponding load forecasts using newer, advanced techniques (bottom-up,
data rich)
• Perform planning analyses for relevant parts of value chain (e.g.
customer programs, distribution, transmission)
• Optimize across potential investment and program areas
• Iterate quickly, as situation on the ground and external market forces
evolve