GUIDING THE FUTURE OF RHODE ISLAND S ELECTRICAL GRID

Transcription

1 R.I. DIVISION OF PUBLIC UTILITIES AND CARRIERS, R.I. OFFICE OF ENERGY RESOURCES & PUBLIC UTILITIES COMMISSION GUIDING THE FUTURE OF RHODE ISLAND S ELECTRICAL GRID

2 THE OPPORTUNITY FOR CLEAN ENERGY

3 1000 MW BY 2020

4 UNSUBSIDIZED LEVELIZED LCOE $/MWh COST OF SOLAR $450 $375 $359 $300 $301 $225 $150 $75 $248 $224 $157 $177 $177 $125 $98 $152 $151 $79 $64 $141 $55 $ Rooftop C&I Solar Utility-Scale Solar

5 UNSUBSIDIZED LEVELIZED LCOE $/MWh COST OF WIND $200 $167 $133 $135 $124 $100 $71 $72 $70 $67 $59 $55 $47 $33 $

6 THE GRID WAS BUILT FOR A DIFFERENT ERA

7 TODAY S GRID IS BECOMING A TWO-WAY SYSTEM

8 Benefits of Modernizing the RI Electric Grid

9 Give customers more energy choices. Clean energy technologies are more affordable now than ever. Our utility rules should allow consumers to access and enjoy creative solutions to manage their energy production and use.

10 Build a flexible grid to integrate more clean energy. The Governor s goal of 1,000 megawatts of clean energy by 2020 will bolster our growing local clean jobs economy and help us meet state climate goals.

11 Control the long-term costs of the electric system. Today s electric grid is built for peak usage. That s like constructing a 100-lane highway for Thanksgiving traffic. New technology provides us with more ways to right-size the system to Rhode Islanders needs.

12 RI POWER SECTOR TRANSFORMATION THE JOURNEY

13 A MODERN GRID MUST HAVE Greater resilience to hazards of all types (cyber, extreme weather, etc.) Improved reliability for everyday operations Enhanced security from an increasing and evolving number of threats Additional affordability to maintain our economic prosperity Superior flexibility to respond to variability and uncertainty Increased sustainability through additional clean energy and energy- efficient resources Resilient Sustainable Reliable Grid Modernization Flexible Secure Affordable Source: Lawrence Berkeley NationalLab 5

14 EXISTING TECH CAN BE DEPLOYED NOW TO LEAD TO A CHEAPER, CLEANER, MORE RELIABLE SYSTEM ENERGY STORAGE ADVANCED METERING Grid Storage Mobile Storage Real time usage Demand mgmt From To BIG DATA Voltage Mgmt Cybersecurity INTERNET OF THINGS Grid Edge Dispatchable Appliances TIME VARYING RATES DISTRIBUTED GENERATION Low demand = cheap power High demand = more expensive Solar/Wind buildout Cybersecurity 6

15 MODERN ELECTRICITY AND TELECOMMUNICATIONS INFRASTRUCTURE ARE INTERTWINED Digital control is needed at each junction point. Like electricity, broadband can be used for multiple things. The Circulatory System The Nervous System 4 9

16 GRID ANIMATION CAN DRIVE SIGNIFICANT COST SAVINGS Grid purchases, distributed generation, energy efficiency, and demand flexibility compared Grid Purchases Distributed Generation Energy Efficiency Demand Flexibility Buy kwh from the grid as and when needed Generated electricity, changing the profile of net grid demand while reducing total grid demand Reduce demand whenever load is operated, thus lowering the daily load curve Shift eligible loads across the hours of a day to lowercost times, reshaping the daily load curve 3 KW Normal load KW Normal load Net load KW Normal load Efficient load KW Normal load Flexible load PV Hr Hr Hr Hr Citation: Rocky Mountain Institute, The Economics of Demand Flexibility,

17 CHANGING PACE OF TECHNOLOGY ADOPTION WILL REQUIRE INNOVATION IN OWNERSHIP MODELS Technologies are becoming available and being adopted by Electric Utilities at an increasingly rapid pace. However, the situation is problematic: System needs are changing faster than solutions are becoming available There is never a right time to buy rapidly changing technology, the next generation always has a potential to include something you want Core utility needs have a different life time than consumer technologies This results in risks of stranded assets, and sub-optimal solutions As a result, new ownership models to reduce risk of obsolescence and stranded assets must be explored Source: Lawrence Berkeley NationalLab 7

18 SUCCESSFUL POWER SECTOR TRANSFORMATION REQUIRES A CONFLUENCE OF CONDITIONS Grand vision and inspirational leadership Fast follow don t reinvent the wheel Cross agency team alignment Open stakeholder process Informal transparent public exchange of views in advance of docketed processes Enthusiastic utility

19 WORKSTREAMS

20 Utility Business Model Distribution System Planning Grid Connectivity Functionality Beneficial Electrification of Transportation & Heating

21 What functions should the utility perform? UTILITY BUSINESS MODEL How should the utility be compensated for each of the functions it performs? What is the appropriate role of performance metrics in utility compensation and which metrics should drive it?

22 What outcomes should distribution system planning promote? DISTRIBUTION SYSTEM PLANNING What aspects of utility operations should distribution system planning address? How accessible should distribution system planning be to third parties?

23 What activities are important for the utility to consider and prioritize in developing a plan to encourage growth of beneficial electric vehicles and heating? BENEFICIAL ELECTRIFICATION OF TRANSPORTATION AND HEATING Are there characteristics unique to the Rhode Island transportation and heating market that should be considered in answering the questions above?

24 GRID CONNECTIVITY FUNCTIONALITY Where are the gridfacing and customerfacing functionalities necessary to realize benefits for RhodeIsland customers? What scenarios or deployment strategies provide most benefit for Rhode Islanders now and into the future?

25 APRIL-MAY Technical meetings JUNE-SEPTEMBER Facilitated engagement with draft proposals OCTOBER-NOVEMBER Presentation of regulatory proposals JANUARY-JUNE 2018 Review of proposals through Public Utilities Commission processes

26 FINAL ROADMAP TO A FUTURE GRID CONTAINS SEVERAL THEMES WHICH CUT ACROSS ALL WORKSTREAMS Pay for performance Value for money Focus on the core With whom do you ally? There s money in the banana stand Sharing is caring It s a TRAP! Catching the wave 26