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Advancing Distributed Energy Resources in a Community Choice Context Lorenzo Kristov, PhD Electric System Policy, Struture, Market Design Center for Climate Protec>on Webinar, Feb. 21, 2018
AdvancingDistributedEnergyResourcesinaCommunityChoiceContext
LorenzoKristov,PhDElectricSystemPolicy,Struture,MarketDesignCenterforClimateProtec>onWebinar,Feb.21,2018
Prolifera>onofDERsischallengingeveryaspectoftradi>onalelectricservice.• DERs=distribu>on-connectedenergyresources
– Alltypes:EE,DR,DG,storage,EVcharging,microgrids,…
– Bothsidesoftheend-usecustomermeter
– Industrystructurebasedoncentralized,conven4onalgeneratorsandone-waypowerflowsisbecomingobsolete
• GrowthofDERsislargelyautonomousanddecentralized– Customersadopton-siteresourcestoprovideenergyservices
– Electrifica>onoftransport,buildings,etc.–closely>edtolocalgovernmentplanning–allimpactthedistribu>onsystem
– Resilienceforcri>calfacili>es,campuses,communi>es
– Regulatorsmustadapttobo<om-upenergydecisions,becomefacilitatorsratherthancontrollersofenergytransforma4on
ElectricSystemPolicy,Structure,[email protected] 22/21/18
Thecontextisrichwithunfamiliardemands.• Growingseverityofdisrup>veeventsrequiresstepped-upurgency
• Effortsmustfocusonnear-termadapta>onandresilience,notjustlonger-termmi>ga>onofGHGandotherimpacts– Near-term:ResiliencetoMajorDisrup>ons• Allimpactsarelocal=>resiliencemustbedevelopedasalocalcapability• Localresilienceinvolvesallessen>alservices:energy,water,waste
management,communica>ons,mobility,emergencyservices(shelter,medical,food,rescue,fire,security)
– Longer-term:Mi>ga>onofFossilFuelImpacts• Electrifytransporta>on,buildings,agriculture,industry• Proliferaterenewableenergysupplyresourcesandtechnologies
• ResilienceandMi>ga>onbothentailplanning–especiallythekindsofplanningtradi>onallydonebylocalgovernments
LocalgovernmentswillbekeyplayersinachievingCalifornia’sresilience,energyanddecarboniza4ongoals
ElectricSystemPolicy,Structure,[email protected]
32/21/18
NewthinkingisneededtocharacterizeDERbenefitsandquan>fytheirvalue.
• WhenDERsdonot“pencilout”perhapsit’sbecausewe’reusinganoutdatedpencil– DERadop>onisaboutmorethancheaperenergyandROI
– Resilienceisbecomingincreasinglyimportant,buthardtodefineandhardertoquan>fyitsvalue
– Avoidedcostofgridinfrastructure:WhendoDERsdriveneeds–andwhendotheyoffsetneeds–formoreT&Dinfrastructure?
– Managinglocalvola>lityofloadsandDERslocally,ratherthanpushingvola>litytothetransmissiongrid,canreduceneedtorungasplants
• Conven>onalsourcesofvaluemaynothelpDERsmuch– Wholesalemarketrevenuesareshrinkingasspotpricesdecline
– “Stackingofservices”(aka“MUA”)s>llhasmanycomplexdetailstoworkoutandmaynotbecheaptoimplement
ElectricSystemPolicy,Structure,[email protected] 42/21/18
Partnershipsoflocalgovernments,UDCsandDERdevelopersmustbepartofthenewthinking.Theirkeyindividualroles• Localgovernmentsundertakelocalenergyandresilienceprojectstoalign
withtheirresidents’needs,localcondi>onsandplanningobjec>ves• UDCspreparetheirsystemsforahigh-DERfutureandmorecomplex
distribu>onservicecapabili>estoaccommodatediverselocalsystems• DERdevelopersproliferateDERstomeetenergyneedsofcustomers&
communi>es,anduseDERcapacitytoprovidegridservices
Opportuni>esforsynergies• CityplanningforDERs;energy-transporta>onandenergy-waternexuses• Micro-grid/smartbuildingstructuresforcri>calservicesandfacili>es• Localmobilityservices,reducingprivatecarusage• Municipalbroadbandformul>plepurposes(grid,water,internet)• Community-levelmul>-usermicro-grids;“micro-gridready”buildings• Effec>venewratestructurestorecoverinfrastructureservices• CCAscanbethevehicleforcrea>ngresilientlocalenergysystems
ElectricSystemPolicy,Structure,[email protected]
52/21/18
LocalDistribu>onArea(LDA)orCommunityMicrogridcoordinatedwiththedistribu>onu>lity(UDC)
RegionalInterconnec>on
Thebigpicture:Afutureelectricsystemwithlayeredarchitecture,ahierarchyofop>mizingsub-systems.
Smartbuilding
Micro-grid
LDA LDA
BalancingAuthorityArea
BAABAA
Smartbuilding
Smartbuilding
• Storage,DGandcontrolsonpremisesformabuilding-levelmicrogrid
• Eachlayeronlyneedstomanageitsinterchangewithnextlayerabove&below,notdetailsinsideotherlayers
• TheBAop>mizesbulksystemonlyuptotheT-Dinterfaces
• Layeredcontrolstructurereducescomplexity,allowsscalability,increasesresilience&security
• Fractalstructuremimicsnature’sdesignofcomplexorganisms&ecosystems.
ElectricSystemPolicy,Structure,[email protected]/21/18 6
Dozensofindividualbusinesses
100sofindividualresidences
Avisionofthefutureoffersatargettoaimfor.
Characteris>csofaplausible,desirablefuturein,say,2030– Resilientcommuni>es(riskmanagementforamorevola>lefuture)becomesakeyCaliforniapolicygoal
– AllCaliforniaci>es&coun>eshavemicro-gridsforessen>alservicesandforlargercommuni>es
– Mosttransportiselectric;privatevehiclesdrama>callydecline– CCAspartnerwithu>lityDSOsthatoperateresilientlocalnetworkslinkedtothebulksystemformovingremoterenewableenergy
– Buildingseliminatenearlyallusesofnaturalgas– Ci>esusewhole-systemthinkingtointegratemunicipalservices– Municipalbroadbandprovidescost-effec>veinternet,situa>onalawarenessfortheelectricsystem,meteringofpower&water
Alloftheabovearepoten/alareasofCCAac/onandimpact.
ElectricSystemPolicy,Structure,[email protected] 72/21/18
Pointsofinterven>onforCCAs:Updatetheregulatoryframeworkforthe21stcenturyelectricsystem.
• Howmighthigh-DERandmicrogridsredefineresourceadequacy?– Couldamicro-gridoptoutofRA,and“island”whengridsupplyisshort?
• Whatisthevalueofresilience?Whatdoesitmeanforacommunityorlocalgovernment?HowcanCCAsfosterandfundresilienceprojects?
• Howtoshapeelectrifica>on-drivendemandgrowthlocally,ratherthandrivecostlynewgridinfrastructureandopera>onalchallenges?
• Whatisthenewvalueofthedistribu>ongrid?Howisitpaidfor?– Alignen>ty’scostofdistribu>onservicewithitsimpactonthesystem– RewardingprofilesimprovesfinancialprospectsforDERs– Designrateincen>vestoincrease“well-shaped”renewablesgrowth
• Anewfederal-statejurisdic>onalaccordattheT-Dinterfaces?– Layeringofopera>ons,reliabilitystandards,real->mebalancing– State-regulateddistribu>on-levelmarketswithineachLDA
ElectricSystemPolicy,Structure,[email protected] 82/21/18
Addi>onalResources
CommunityChoiceandResilientCommuni>es• hops://www.academia.edu/35864114/
Resilient_Community_A_concept_and_vision_for_community_ac>on_city_planning_and_state_policy_for_the_21st_century
• hop://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/U>li>es_and_Industries/Energy_-_Electricity_and_Natural_Gas/Lorenzo%20Kristov%20Comments.pdf
FutureDecentralizedPowerSystem• hops://www.academia.edu/12419512/
A_Future_History_of_Tomorrows_Energy_Network• hop://resnick.caltech.edu/docs/Two_Visions.pdf
FutureDistribu>onSystems,PlasormsandDSOs• hop://doe-dspx.org• hops://emp.lbl.gov/sites/all/files/FEUR_2%20distribu>on%20systems
%2020151023.pdf
ElectricSystemPolicy,Structure,[email protected] 92/21/18
