Roadmaps for Demand Response & Storage

Transcription

1 1 Roadmaps for Demand Response & Storage Jim Price, California ISO Senior Advisor, Market Development & Analysis PSERC Summer Planning Workshop Market Stem July 15, 2015

2 CAISO markets provide a responsive foundation for matching changes in supply & demand 60 Hz Day Ahead Market Hourly market for 24 hours of next day Establish energy and ancillary service schedules Manage congestion (transmission access) using Full Network Model (FNM) Determine residual unit commitment requirements Hourly & 15-minute Scheduling Prior to real-time (RT) market, schedule energy and ancillary services for static interchange for 24 individual hours Manage congestion using FNM As one of 4 RT pre-dispatch processes, establish unit commitment & advisory schedules for internal & dynamic resources Load Generation Real Time Market Manage energy flows on transmission grid with telemetry and 1-minute state estimator solutions Update FNM for RT conditions Dispatch balancing energy/ ancillary service Slide 2

3 Changing resource mix over the next 10 years presents new operational challenges Over 20,000 MW of wind and solar capacity is expected to be interconnected by 2020 Increased supply volatility Potential changes to load patterns as a result distributed generation and electric vehicles Changing, less predictable load patterns Approximately 18,000 MW of thermal generation will be repowered or retired in next 10 years Uncertainty surrounding thermal resources o Phase out 12,000 MW of coastal plants with once-through cooling o Greenhouse gas reductions limit replacement generation o Water flow management affects hydro availability Slide 3

4 California Renewables Portfolio Standard (RPS): 33% renewable energy by Additional future requirements are being considered. Wind and solar generation are growing the fastest, and are the most variable Slide 4

5 Load & Net Load (MW) Wind & Solar (MW) Changing resource mix leads to changes in pattern of net load for dispatch, with new needs for market products 34,000 32,000 30,000 28,000 26,000 24,000 22,000 20,000 18,000 6,700 MW in 3-hours Load, Wind & Solar Profiles -- Base Scenario January ,000 MW in 3-hours 12,700 MW in 3-hours 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 16,000 1,000 14,000 0 Net_Load Load Wind Total Solar Net Load = Load - Wind - Solar Slide 5

6 ISO's Net Load (MW) 5-Minute Energy Prices ($) New events (like negative energy prices indicating risk of over-generation) introduce new opportunities 22,000 ISO's Net Load vs. Average 5-Minute Energy Prices April 12, , ,000 19, , ,000 16,000 15, , Net Load MCP_RTD 5-Min_Prices<=Zero 5-Min_Prices>$100 Example, April 12, 2014: Coincident MW of wind & solar was 35% of total 23,450 system load, dropping net load to 15,000 MW. With limited decremental bids, energy prices were zero or negative (blue dots) for 43% of 5-minute RTD intervals. -40 Slide 6

7 Market s foundation will have additional support by facilitating new market resources Partners in Success Wind Generation Generation Portfolio Storage Demand Response Hydro Generation Solar Generation Quick start units Fast ramping Wider operating range Regulating capability Shift energy from off-peak to on-peak Mitigate overgeneration Voltage support Regulating capability Existing programs: Participating Load, Proxy Demand Response, Non- Generation Resource, pilot programs Price sensitive load Responsive to market needs Geothermal Generation Slide 7

8 Demand response and storage can provide flexibility to shift load to periods of excess supply Resources Traditional Use Future grid Value Conventional generation Renewable generation Demand response Energy storage Electric vehicles Baseload Peaking Ability to start and stop frequently Low minimum operating levels Must take Ability to modify output Emergency Frequent, short duration events Automated response Peak-shifting Ability to start and stop frequently Frequent, short duration events Not applicable Frequent, short duration events Automated response Supports ramping needs Mitigates overgeneration Decreases ramping needs Provides voltage support Defers or offsets generation or transmission investment Mitigates overgeneration Supports ramping needs Mitigates overgeneration Provides frequency response Mitigates overgeneration Provides frequency response Slide 8

9 Demand response and energy efficiency can help transition to a cleaner, greener, environmentally sustainable industry Demand response/ energy efficiency roadmap goals: 1. Consistent ISO, California Energy Commission, & California Public Utilities Commission assumptions for planning & procurement; 2. Load modifying programs result in more favorable load shape, reducing resource procurement requirements, mitigating overgeneration, and moderating ramps; 3. ISO articulates grid s operating requirements to optimally configure DR & EE so as to be the most effective at satisfying planning and operational needs; 4. Procured DR & EE resources satisfy grid capability, timing, & locational needs; and 5. DR participation in ISO market provides operational experience and feedback for program and policy refinement. Page 9

10 Four paths forward between , representing activities through collaboration on DR & EE among the agencies and market participants Load reshaping: Maximize DR / EE potential to favorably reconfigure load shape for flatter overall system load with smooth peaks and valleys, as well as in specific geographic areas Resource sufficiency: Ensure sufficient supply resources with needed operational characteristics in right places and times, and develop policy to guide DR procurement as supply resource. Operations: Maximize use of supply-side DR resources as ISO plans and balances the system. This may modify certain ISO policies, change or develop new market products, and address technical and process concerns to reduce barriers to DR participation in wholesale market. Monitoring: Provide feedback to record experience in understanding DR s operational capabilities, aligning DR & EE with system and local needs, and reshaping load profiles. Page 10

11 Energy storage as a developing resource: As state agencies respond to industry change, resources are responding with project proposals In 2013, CPUC established energy storage procurement targets for IOUs: 1325 MW to be completed by 2020 & implemented by CPUC also provides funding incentives for customer-side energy storage, including Permanent Load Shifting and Self Generation CA Energy Commission funds research on effectiveness as viable grid resource Energy storage developers responded by submitting requests to interconnect to the ISO grid. In April 2014 interconnection queue window, developers submitted over 2000 MW of project with energy storage as a component. Level of interest in April 2015 interconnection requests appears to be significantly greater than Slide 11

12 Energy Storage Roadmap identifies challenges and barriers confronting energy storage & distributed energy resources, and needed actions Challenges expressed by stakeholders: Expanding revenue opportunities to match value of storage Reducing costs of grid interconnection and ongoing operation Increasing certainty of policies, processes, and timelines High priority action items for ISO include:. Market participation: Clarify existing requirements, rules, models, and market products for storage and DER to participate in ISO market. Identify gaps, potential changes, new options. Wholesale vs. retail rate treatment: Ensure clear documentation. Existing ISO interconnection rules accommodate storage, but non-interconnection related issues can be addressed (e.g., flexible ramping as a resource adequacy requirement, coordinated T&D planning) (then, is storage a G or T asset?). Page 12

13 Examples of potential research areas following DR & Storage Roadmaps Leverage new enabling technology: How can ISO, PUC, and utilities facilitate & encourage consumer adoption of smart grid technologies (2-way communication, market-responsive end-use devices, performance measurement, etc.) for DR market participation? As more DR programs participate as ISO resources, what business scenarios can optimize data aggregation & information to consumers? Monitoring: Are actual impacts and performance characteristics of programs and resources at least as good as expected? Are they producing the intended load shaping effects? Are market product definitions attracting expected volume and quality of resources? Other: Is there missing money in compensating value of DR & storage? Are there missed opportunities in current market products? How can resource adequacy integrate both flexible ramping and peak capacity? How should new resource types be coordinated in G/T/D planning? Page 13

14 For more information: Demand Response and Energy Efficiency Roadmap: Maximizing Preferred Resources Advancing and Maximizing the Value of Energy Storage Technology: A California Roadmap MaximizingValueofEnergyStorageTechnology_CaliforniaRoadmap.pdf Energy Storage and Aggregated Distributed Energy Resource Education Forum: EnergyStorageandAggregatedDistributedEnergyResource-EducationalForum.pdf Page 14