Non Wires Alternatives: Straight Outta Nashville

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1 Tuesday 2:00 3:00 Non Wires Alternatives: Straight Outta Nashville Co Chair Brian Solsbee Tennessee Valley Authority Co Chair Dave Hyland Schneider Electric

2 SCE s Emerging Markets and Technologies Program Mark S. Martinez Senior Portfolio Manager Southern California Edison Mark is a senior portfolio manager for Southern California Edison, with over 25 years experience in the design, management, and evaluation of innovative electric demand side management pilots and programs. He currently is the policy and portfolio manager for SCE s demand response Emerging Markets and Technology suite of studies and demonstrations that include advanced software, systems and technology innovations for load management, dynamic pricing, energy storage, the water-energy nexus, and integrated distributed energy resources.

3 Demand Side Management = Reliability 2

4 SCE Emerging Markets and Technology (EM&T) Mission To develop and deliver emerging technology driven demand response measures that facilitate customer engagement of DR programs, products, and tariffs Origination Initiated in 2005 to enhance the portfolio of DR programs and advance the TI and TA program Current funding is $2.9M for 2017 (D ) as part of the DR programs bridge funding authorization Strategic Focus Address SCE program emerging DR technology opportunities for today s policies and SCE s future vision of rate design and grid modernization 3

5 EM&T Projects as of 2016 Q4 (partial list) Completed Projects Home Battery Pilot DR Ancillary Services Pump Study DR Ready Consumer Products Demand Response and Permanent Load Shift: A Scoping Study DR VHF Pool Pump Study Open ADR C/I battery dispatch assessment Continuing Projects Field Testing of VRF EPRI DR end Uses (EB III) ENERGY STAR Connected Spec for Residential Products HVAC & Refrigeration Systems Using Advanced Refrigerants DR Concepts in Data Centers EV Enabled DR storage and platform assessments CEE Connected Devices Charge Ready LM Support OverGen with Water Sector Initiated Projects Grid Integration of ZNE Communities ZNE Retrofit Commercial Training Facility Residential Auto DR Using Battery Storage C/I Automated DR Using Battery Storage. Integrated Campus Energy Storage Project CSUF UC Deep Energy Efficiency Project Study Electric Water Heater Study Open ADR for DER applications (collaboration) Title 24 Future C&S

6 EM&T Project Development Process Project Ideation Gate Project for Marketability Project Execution Report Creation Development of DR Measures

7 EM&T Areas of Focus in 2017 Collaborations with Stakeholders LBNL, UC Regents, EPRI, USGBC, CEE, ASHRAE DR Codes & Standards Title 24, Title 20, DOE/EPA, OpenADR 2.0b, SEP2.0 Expanding Residential DR enabling technologies Appliances, IHD s, PCTs, PEV chargers, Inverters, storage (EWH, batteries) Commercial and Industrial Customer Solutions AutoDR, Innovative DR Strategies, Storage, VFR, HPWH Overgeneration solutions with the water sector Integrated Demand Side Management Integrating EE and DR Technology measures (dimming ballasts, ZNE) Combine EE and DR Program Delivery (DR IDSM) Enabling Retail and Wholesale Market Integration Telemetry and Market based communications Metering & Settlement solutions and software Cloud based services for broader aggregation opportunities Collaboration with DR EPIC projects Transactive Energy pilot in Thousand Oaks (tech advisory) Nine other projects worth $27M

8 OpenADR Alliance SCE focus Building Automation and Control System (BACS) Controls HVAC Lighting dimming and shed Shifting loads for renewables Demand Response Automation Server (DRAS)

9 Overgen Shape & Shifting strategies 9

10 SCE DR EPIC GFO Collaboration Awardee Title CEC Funding BMW of North America, LLC Total Charge Management: Advanced Charge Management for Renewable Integration $3,999,900 Center for Sustainable Energy Meeting Customer and Supply side Market Needs with Electrical and Thermal Storage, Solar, Energy Efficiency and Integrated Load Management Systems $3,960,805 OhmConnect, Inc. Empowering Prosumers to Access Wholesale Energy Products $3,995,028 Electric Power Research Institute, Inc. (EPRI) Alternative Energy Systems Consulting, Inc. (AESC) The Regents of the University of California (Berkeley) Customer centric Demand Management using Load Aggregation and Data Analytics Residential Intelligent Energy Management Solution: Advanced Intelligence to Enable Integration of Distributed Energy Resources Customer controlled, Price mediated, Automated Demand Response for Commercial Buildings $3,998,587 $3,996,560 $4,000,000 Universal Devices, Inc. Complete and Low Cost Retail Automated Transactive Energy System (RATES) $3,187,370 The Regents of the University of California (UCLA) Electric Power Research Institute, Inc. Lawrence Berkeley National Laboratory 10 Identifying Effective Demand Response Program Designs for Small Customer Classes Transactive Incentive Signals to Manage Electricity Consumption (TIME): A System for Transactive Load Management The Value Proposition for Cost Effective, DR Enabling, Nonresidential Lighting System Retrofits in California Buildings $2,007,875 $498,054 $500,000

11 TE: Two Way Subscription Retail Tariff Automated Bilateral Transactions Customers/DER accept long term subscriptions with Distribution Operators and LSE s for energy and distribution transport Two way transport Tariff recovers more distribution costs when feeders are heavily loaded in either direction Most energy transactions occur at retail/wholesale interface Customer/DER buys/sells incremental power at spot price Utility or ESP is held harmless by way of the forward model Structure for Automated Bilateral Transactions with Two Way Subscription Retail Tariff 11

12 Roadmap for New DR Products for

13 The Evolving Role of DR in DSM Increasing Grid Complexity Evolving DR Role in DSM Changing power flows Transportation Electrification Consumerdriven Technologies Over generation Demand-side programs can be helpful to right size the local grid infrastructure an optimize investment DSM programs and smart technologies can be important tools in reliably operating the local system and balancing load Load shifting DSM can be a valuable tool for addressing over-generation challenges The electrification of transportation could drive help with the state s GHG goals. Dispatchable DSM can be a valuable tool to help reshape the system load shape DR EM&T can identify these resources!

14 Thank You! Mark S. Martinez Senior Portfolio Manager, Emerging Markets and Technology Southern California Edison (626)

15 When Targeting is the Right Approach: Early Success in A Non Wires Alternative Mark Sclafani Senior Program Coordinator Central Hudson Gas & Electric Mark Sclafani is the Senior Program Coordinator of Demand Response at Central Hudson. Mark is responsible to oversee the company s demand response portfolio, non-wires alternatives projects, and development of benefit-cost analyses for DSM programs. Before this role, Mark spent several years designing, implementing, & evaluating Central Hudson s Energy Efficiency Programs, while working collaboratively with regulatory staff on policy related aspects.

16 Central Hudson Gas & Electric

17 Regulatory proceeding to reform the electric distribution industry in New York REV s essential purpose is to: Improve system efficiency Empower customer choice Encourage proliferation of distributed energy resources (energy efficiency, demand response, distributed generation)

18 REV Policy Goals INCREASE DECREASE Customer knowledge & tools to aid energy bill management Market animation & leverage of ratepayer contributions System efficiency Fuel & Resource diversity System reliability & resiliency Carbon emissions Costs

19 1,350 1,300 1,295 Historical System Peak Load Annual Peak Load (MW) 1,250 1,200 1,150 1,185 1,187 1,229 1,224 1,168 1,203 1,100 1,050 1,000 1,107 1,058 1,059 1,

20 Why does Central Hudson need Demand Response? 10MW 5MW 1MW

21 Targeted Demand Response Program

22 Project Status Program Launched on April 1, 2016 Over 2,300 Connected devices Approximately 35% participation of customers with central air conditioning in Fishkill area 5 Large C&I participants Met 2016 planning milestones 2,500 2,000 1,500 1, Cumulative Device Count 2,321 1,835 1, Apr May Jun July Aug Sept Oct Nov Dec Jan Feb

23 Available Demand Response Capacity Population Device Active end points as of 3/1/17 Adjustment Factor kw Factor MW Available Residential Thermostat A/C Residential DCU A/C Residential DCU Pool Pump Small Commercial Thermostat A/C Small Commercial DCU A/C Large C&I 4.07 Total MW 6.86

24 How Does Central Hudson Benefit? Instead of investment ROI, an incentive based model was implemented: Estimated Cost of Traditional T&D Solutions Actual Cost of DR Solution + Actual Capacity Savings = Program Financial Benefits Central Hudson shares program financial benefits with all customers: Rate Payers Central Hudson 70% of benefits go to rate payers by reducing future bill pressure 30% of benefits are provided to utility as incentive to achieve the program targets

25 Looking Ahead How do we achieve more than 35% participation in Fishkill? Deploying Agricultural Pump DCUs in 2017 Deployment of Targeted AMI for Measurement & Verification Additional device offerings & BYOT

26 Thank You. Mark Sclafani Senior Program Coordinator Central Hudson Gas & Electric (845) For more information, visit

27 National Grid Rhode Island: Piloting Wireless Alternatives Forging a Successful Program in Difficult Circumstances Courtney Lane Antje Flanders Courtney Lane is a Lead Analyst with National Grid, where she focuses on the development of energy efficiency and demand response programs in Rhode Island. She has over thirteen years of experience in demand side markets and clean energy policy. Antje Flanders is a Vice President at Opinion Dynamics where she directs market research projects and evaluations of demand side management programs. Antje has over 20 years experience in research, analysis, and project management.

28 Overview of Pilot Two Feeders out of Tiverton substation serving Tiverton & Little Compton, RI 5,200 customers (80% residential) Summer afternoon/evening peak Forecasted to be overloaded during peak hours starting in 2014 Wires solution (substation upgrade): Would have cost $2.9 million in 2014 Least Cost Procurement Law (System Reliability Procurement) allows for NWAs Non wires goal: Load relief starting in 2014, up to 1 MW by 2017; defer upgrade to 2018 Plan for NWA filed and approved in 2012 Pilot scheduled to run through 2017

29 Pilot design and program offerings Energy Efficiency Targeted marketing to increase volume of existing EE programs Enhanced incentives for statewide EE programs Residential and Small Business energy assessments with direct install measures Unlimited LEDs Heat pump water heaters Pilot specific measures Window ACs Window AC Recycling Demand Response No cost WiFi tstats (CAC) No cost WiFi tstats and plug load devices (WAC) *discontinued in 2016 Opt in program with annual bill credit

30 Evaluation of Pilot Program Opinion Dynamics conducting annual evaluations First evaluation of 2012 pilot; currently finishing up 2016 evaluation Focus on: Marketing strategies and effectiveness Pilot impacts

31 Where Do Savings Come From?

32 Marketing Efforts

33 Marketing Evaluation: EW Online Survey Annual Online Survey with EnergyWise Participants Recall of pilot marketing Importance in participation decision Used to assess participation lift Pilot Recall Statewide Recall

34 Marketing Evaluation: General Population Survey Online survey with focus on 2016 marketing efforts Direct mail Phone call

35 DR Event Analysis Event impacts based on regression modeling Central AC Events: 3 7 pm Strategy: Set point increases by 1 3 F Window AC Events: 4 6 pm Strategy: Units shut off for the duration of the event

36 DR Event Analysis Findings CAC: 13.3% runtime reduction and 0.5 kw savings/thermostat WAC: 0.04 kw savings per thermostat + Connectivity issues = Lower Than Expected Savings Potential solutions Real time connectivity assessment Pre cooling season outreach

37 Outlook for pilot Pilot on track to meet goals Create 1MW of load relief by end of 2017 Defer substation upgrade by 4 years Projections show deferral until Enhancements 2017 Plan includes an RFP for 250 kw of load relief. Results expected in 2017 on coordinated effort with with RI Solarize initiative

38 Questions or Comments? Courtney Lane Antje Flanders