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DISPUTES & INVESTIGATIONS • ECONOMICS • FINANCIAL ADVISORY • MANAGEMENT CONSULTING
Can Today's Demand Response Programs Support Integration of Renewable Energy onto the Grid?An Analysis of California Programs and CAISO Requirements
Stuart SchareDirector, Energy Practice
National Town Meeting on Demand Response and Smart GridWashington, DCJuly 11, 2013
“Reliability” DR programs are larger & more common than “price-responsive” or “economic” DR
Fewer programs with fewer MW have attributes that may be able to provide energy or ancillary services
Smallest subset of all might have attributes needed to provide regulation-up services (much less reg-down)
Most DR Programs Are Not Designed to Provide Ancillary Services
An initial test is whether they meet CAISO requirements for ancillary services:
Advance Notice of Deployment
Speed of Response to Control Signal
Duration of Response
Frequency of Response
Range of Permissible Deviation
Ramping and load following services to support renewables integration may be less onerous
Can Existing IOU DR Programs in CaliforniaProvide Renewables Integration Services?
Sources: CAISO and various California studies
Event duration is generally sufficient
Other requirements met by few programs
Precision of delivered load drop (“deviation”) is problematic, especially for fast response
Current IOU DR programs in California have limited ability
to meet CAISO ancillary services requirements
California DR programs—as a portfolio—are a long way from being able to provide ancillary services
On average, across programs, DR cannot provide even non-spinning reserves
But maybe some individual programs could support renewables integration…?
A few DR programs come close to having the attributes needed to provide non-spinning reserves
Program-by-program assessment of potential modifications
Modifications could not change the fundamental nature of a program
Modifications may reduce the number of customers willing/able to participate in DR
Key modifications:Telemetry for real-time communications, metering, and controlAutomated response to control signalsReduced/no advance notification time Increased frequency with which DR resource could be dispatched.
Could DR programs be modified to provide renewables integration services?
Increase is most significant for spinning and non-spinning reserves
On average, programs still fall short of CAISO standards
Modifications could significantly increase the ability of
the average program to meet CAISO AS standards
Five programs could meet all requirements
Aggregator programs (3) Agricultural pumping Customer-sited generation Most program would be deficient in
just one or two attributes (deviation and…?)
Some programs could be modified to meet CAISO non-spinning reserve requirements
A few likely can provide non-spinning reserves
Slightly fewer meet spinning reserve requirements
Regulation requires special equipment and characteristics that will limit DR’s applications—but how much do we need?
Typical DR program structures are not well-suited for precise response in minutes or seconds
New DR programs could be designed specifically to provide
renewable energy integration services
Attributes Required
Continuous Ramping/ Load Following
Spinning & Non-Spinning Reserves Regulation Services
Telemetry Required
Automated response
Required
Response time Less than one hour, but some could be up to 10 hours
Less than 10 minutes; less than 10 second to begin ramping is desirable
Seconds
Event limitations10 hours or more duration, minimum of one hour
Dozens to more than 100 events lasting at least one hour each
Continuous availability desired
Daily/seasonal availability
24x7 year-round, with seasonal variation 24x7 year-round 24x7 year-round
Target end usesCommercial lighting and HVAC
Agricultural and municipal pumping, electric water heat
Temperature controlled warehouses, industrial motor loads on VFDs
KeyC O N T A C T S
©2010 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.
KeyC O N T A C T S
©2010 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.
KeyC O N T A C T S
©2010 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.
KeyC O N T A C T S
©2012 Navigant Consulting, Inc. . 12
ENERGY
Stuart SchareDirector | Energy [email protected] office
ENERGY
