DERValuesandDSOModels

LorenzoKristov,PhDElectricSystemPolicy,Structure,MarketDesigni-PCGRIDConference2018March29,2018

Decarboniza?onrequireselectrifyingallfossil-fueluses:transporta?on,buildings,industry,agriculture

–  Theelectricsystemaccountsforonly20%ofGHGemissions–  Transporta?onabout42%,buildingsabout35%1.Directelectricsystemimpactswillbemostlyondistribu6on2.Resiliencewillriseinpriorityandinformpolicies3.Electrifica6onstrategieswillintersectwithmunicipalplanning=>Reshapingelectricitydemandandgridopera6ons,planning,markets,businessmodels,u6lityregula6on,capitalinvestment–  WholesalemarketpricesandrevenuesshrinkduetorenewablesandDER–  Tradi?onalbusinessmodels,incen?vesandratedesignsneedupda?ng–  The“market”movesbehindthemeter

•  MarketisforservicesmorethanforthekWhcommodity•  Energyuserscancustomizeenergyusesandsourceswithon-siteassetsand

controltechnologies•  Usethebulkenergymarketforresidualneedsorsurpluses

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CurrentthinkingabouttheDERvalueproposi?ondoesnotyetquan?fysignificantbenefits.

DERvaluehasfocusedonservicestoend-users,distribuFonassetdeferral,wholesalemarketservices,resourceadequacycapacity

–  Rulesforservicestacking(akamul?-useapplica?ons)ares?llinprogress:dispatchpriority;measurement;doublepayment;wholesale/retailrates

ValueofshapingandintegraFnggrowingelectrificaFondemand

–  Shapenewdistribu?on-levelloadstominimizechallengestosystemopera?onsandneedforpeakD&Tinfrastructure

–  Managecircuit-level“ducklings”andshort-termvola?litylocally

–  Requiresnewretailratedesigns;pricingofD&Tservices

ValueofresiliencetoseveredisrupFons–  Minimizeimpactsofsevereservicedisrup?onsandassistthesystem

–  Allresilienceislocal,allbasicneedsarepartsofaresilientcommunity

–  Electricserviceasenablerofmostessen?alservices

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High-DERelectricsystemrequiresnewT-Dcoordina?onframework=>newDSOdesigns.

v  BookendA:CurrentPathor“MinimalDSO”orcentralizedop?miza?on–  DSOmaintainscurrentdistribu?onu?litymission–reliabledistribu?on

service–enhancedonlytoensurereliabilitywithhighDERvolumes–  LargenumbersofDERarecentrallyop?mizedinISOmarket–  DERengagein“mul?ple-useapplica?ons”(MUA)providingservicestoend-

usecustomers,DSOandwholesalemarket

v  BookendB:“TotalDSO”orlayeredop?miza?on–  DSOexpandsitsroletoinclude

•  DERaggrega?onforwholesalemarketpar?cipa?on•  Op?mizinglocalDERtoprovidewholesalemarketservices•  Balancingsupply-demandlocally•  ManagingDERvariabilitytominimizeimpactsatT-Dinterface•  Poten?altooperatedistribu?on-leveltransac?vemarkets

–  DSOprovidesasingleaggregatedbidtoISOateachT-Dinterface–  MUAaresimplified,dispatchconflictseliminated,becauseDSOisresponsible

forresponsetoISOdispatches

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LocalDistribu?onArea(LDA)orCommunityMicrogridcoordinatedwiththedistribu?onu?lity(UDC)

RegionalInterconnec?on

Architectureofafuturehigh-DERelectricsystem:alayeredhierarchyofop?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.

=pointofinterface

Dozensofindividualbusinesses

100sofindividualresidences

EletricSystemPolicy,Structure,MarketDesignLKristov@cal.net

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Thechangingenergylandscapeoffersawealthofopportuni?es.

v  T-Dinterfacecoordina?onframeworkforahigh-DERfuturegrid–  Rolesandresponsibili?esofTSOandDSO–opera?ons,planning,markets

•  FERCTechnicalConferenceApril10-11–  Willhaveimplica?onsforfuturedistribu?onu?lityfunc?ons&models

v  RegulatoryframeworksforDSOsanddistribu?on-levelmarkets–  Createan“openaccess”frameworkforDERprovidersusingDSOsystems,

analogoustowholesalemarketframeworkforISOs–  Developalayeredreliabilityframework

•  Specifyreliabilitystandardsandrequirementsattheinterfaces•  Hand-offreserveandRArequirementsfromISOtoDSOattheT-Dinterfaces•  EnableislandingatT-Dinterfaces

–  Considernewfederal-statearrangements•  Couldstatesregulatedistribu?on-levelmarkets?

v  Collabora?veprojectsbetweencommuni?es,distribu?onu?li?esandDERproviders–  Localprojectsforelectrifica?on,communityenergyandresilience.

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Thankyou.

LorenzoKristovLKristov@cal.net

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Addi?onalresourcesDecentraliza?onandLayeredOp?miza?on•  hop://resnick.caltech.edu/docs/Two_Visions.pdf

•  hops://www.academia.edu/12419512/A_Future_History_of_Tomorrows_Energy_Network

•  hops://gridarchitecture.pnnl.gov/media/advanced/Distribu?on%20Control%20Ref%20Model_v1.1_final.pdf

•  hop://gridarchitecture.pnnl.gov/media/advanced/Sensor%20Networks%20for%20Electric%20Power%20Systems.pdf

FutureDistribu?onSystems,PlasormsandDSOs•  hops://emp.lbl.gov/sites/all/files/FEUR_2%20distribu?on%20systems%2020151023.pdf

•  hop://doe-dspx.org

TheBooom-upEnergyTransi?on•  hop://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/

U?li?es_and_Industries/Energy_-_Electricity_and_Natural_Gas/Lorenzo%20Kristov%20Comments.pdf

CAISOreport:Electricity2030:TrendsandTasksfortheComingYears•  hop://www.caiso.com/Documents/Electricity2030-TrendsandTasksfortheComingYears.pdf

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