What s Happening in California?

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1 What s Happening in California? Michael Gravely Manager Energy Systems Research Office California Energy Commission mgravely@energy.state.ca.us /

2 Overview Public Interest Energy Research (PIER) Program Demand Response Research Smart Grid Activities and How DR Fits into the Smart Grid of the Future 2

3 Public Interest Energy Research (PIER) Program IOU Ratepayer-funded program launched in 1997 by AB1890 Addresses electricity, natural gas, and transportation sectors $80M annual budget; nearly $400M in active projects A leader in no/low-carbon science and technology programs Strong emphasis on collaborations Avoid duplication/builds on past work/ensures relevance Regular coordination with IOUs via the Emerging Technology Coordinating Council and Transmission Program Advisory Committee State Agency Partnerships (CARB, CPUC, CEC T-24, DGS/DOF,CDF,CFA,CalEPA, IWMB) Market Partnerships (California builders, Collaborative for High Performance Schools, California Commissioning Collaborative, major equipment manufacturers) Use California Capabilities (Universities, National Laboratories, High Technology Companies) Leverage/complement Federal Investments Photovoltaics, Biomass, Smart Grid, Efficiency 3

4 The PIER Program Operates in the Context of Public and Private Programs RD&D Projects Range from Early Research through Small-Scale Demonstrations Large corp. R&D Fu unding Stage of Develop pment Universities & Labs Basic Research Proof of Concept Prototype CEC PIER Product Definition Venture Capital Net Cash Flow Product Prototype and Buisness Plan Large Corporations Utility Programs CEC Incentives Programs Β unit and Revised Business Plan Product Introduction Commercial Sales Early adopters Utility sponsored Demonstartion 4

5 PIER Funds Provide Financial Benefits in California Research Stage Total California % Total Basic Research $11,740,821 $8,273, % Technology Development $37,769, $30,749, % Technology Demonstration $23,768,826 $22,197, % Market Support $13,846,394 $11,110, % Policy/Regulation Support $8,358,030 $7,489, % 1 Based on 2-year sample period of activity (July 1, 2004 and June 30, 2006). Totals $95,483, $79,820, % 5

6 PIER Research Ongoing at all Levels Transmission Distribution Integration Consumer Phasor Measurement Distribution Renewables Automating Demand Advanced displays Automation Standards Response Advanced comm & AMI Protocols AMI controls Advanced C&C Reference designs Dynamic Rates MRTU interface MRTU Micro Grids Home Area Networks Energy Storage Energy Storage Automation Plug in Hybrids Renewables Renewables Renewables Energy Storage 6

7 California s Electricity Demand is Dynamic 7

8 California s Highest Peak Loads Occur Less Than 60 Hours Per Year 8

9 Demand Response Technologies Could Help Prevent Energy Emergencies Normal Operation Stage 1 Operating Reserves falling below 7% Stage 2 Operating Reserves falling below 5% Stage 3 Operating Reserves falling below 1.5% ISO Participating Load Program Public Alert - Voluntary Conservation Utility Interruptible Load Programs Curtail Firm Loads - Rolling Blackouts 9

10 Automation of Demand Response Auto-DR 2007 Results Total Participants * 13 CPP 37 CPP 53 DBP 62 CBP Total Base load 8 MW 80 MW Whole Building Power (k kw) Total PG&E AutoDR Test Day All AutoDR Participants 8/30/ Loads 3-10 Baseline 3-10 MA Baseline OAT Baseline AutoDR saves Capacity AutoDR saves Energy Total Peak Load Reduced 1 MW 25 MW :00 3:00 6:00 9:00 12:00 Noon 3:00 6:00 9:00 12:00 Average Peak Load Reduction 13 % 34% * Includes large industrial loads. 10

11 Continuity / Reliability of Customer Response Average Peak Reduction for AutoDR Customers Continuing in 2007 Average Pea ak Load Redu uction 20% 16% 12% 8% 4% 10% 5 Sites 14% 13% 13% 15 Sites 13 Sites 15 Sites 11% 15 Sites 0% Customer response to test signals 1 - Customer response to test signals 2 - Customer response to CPP rate price signals.

12 AutoDR Customer CPP Performance C/I Customers on CPP With and Without AutoDR 40% 30% 20% 10% 0% Average CCP Peak Load Reduction 8% w/autodr -1% w/o AutoDR nd nd School-Inland Average Shed -10% -20% Retail-Inland nd Retail-Valley ey Retail-Coast Office-Inland nd Biotech-Coast Public-Inland nd Indus-Inland Auto CPP Non-Auto CPP

13 Customer Response to Price - Residential Peak Lo oad Redu uction 50% 40% 30% 20% 10% 0% Residential Critical Peak Impacts Average Critical Peak Day Years 1& 2 4.1% 1 Time of Use TOU No Automated Automation 0.6% 34.5% 27.2% % 13.1% Critical Peak Fixed Critical Peak Variable Hottest Critical Peak Day * 47.4% 1 Critical Peak Variable

14 DR as Spinning Reserve or Ancillary Service 14

15 Emerging Technologies--Communications 15

16 What is a Smart Grid? 16

17 Utility Grid of the Future (Smart Grid) Source: 2007 Integrated Energy Policy Report 17

18 The Energy Independence and Security Act of 2007: Extracts from Title XIII The Smart Grid includes: Optimizing grid operations and resources to reflect the changing dynamics of the physical infrastructure and economic markets Cybersecurity Using and integrating distributed resources, demand side resources, and energy efficiency resources Deploying smart technologies for metering Communications of grid operations and status Distribution automation Integrating smart appliances and other consumer devices Deploying and integrating advanced electricity storage and peak-shaving technologies Transferring information to consumers in a timely manner to allow control decisions Developing standards for the communication and interoperability of appliances and equipment connected to the electric grid Identifying and lowering barriers to adoption of smart grid technologies, practices, and services 18

19 Merging Two Infrastructures Electrical Infrastructure Intelligence Infrastructure 19

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22 Why Smart Grid Improved Grid Operations Higher Reliability Less outage time / shorter outages / smarter decisions More options to meet future needs Cleaner, Lower Costs Operations, More Efficient New costs lowering technologies Increased efficiency in operating existing systems Meet needs with more environmentally preferred options Higher utilization rates of installed systems More Options for Consumers Lower overall energy costs More choices on how to meet individual consumer needs Dynamic rates to better integrated needs of grid and consumer New technologies provide new demand side options 22

23 What is a Smart Grid for California? 23

24 Staff Workshop on Defining the Pathway to the California Smart Grid of 2020 Contracting Opportunity Notice August 5,

25 California Energy Policy Targets 11% reduction from current levels 30% reduction from projected levels Greenhouse gas emission 12,000 MW peak 17,000 MW peak reduction reduction 40, GWh/year 63,000 GWh/year Zero net Zero net energy GWh/year energy homes commercial buildings Energy Efficiency Economic DR at 5% of peak * Achieve 100% of economic potential Demand Response 11% penetration 20% penetration 33% penetration Renewable Energy (*): 1,777 MW emergency DR - 1,106 MW price-triggered DR 25

26 California AMI Deployment IOU AMI Filings PG&E Deployment (5.1M, 4.2M, $1.7B) 2012 IOU AMI Deployed SDG&E Deployment (1.4M, 900k, $0.6B) SCE Deployment (5.3M, $1.7B) (Electric Meters, Gas Meters, Budget) 26

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29 Follow-up Questions Michael Gravely California Energy Commission