NTS. Nontraditional Solutions (NTS) OPPD Board Commitee Presentation - June 2018 Brad Underwood, Director Financial Planning & Analysis

Transcription

1 Nontraditional Solutions (NTS) Renewable Generation Small Generators Energy Storage NTS Demand Response EE Products OPPD Board Commitee Presentation - June 2018 Brad Underwood, Director Financial Planning & Analysis Microgrid 1

2 Question Can nontraditional solutions, such as distributed generation and battery storage, cost-effectively defer or eliminate traditional transmission, distribution and generation investments? 2

3 Nontraditional NTS Process Solutions Process 3

4 Solutions in Scope Energy Storage primarily consists of lithium-ion battery storage Solar PV is generation utilizing solar radiance Demand Response utilizes programs and technology to reduce electric demand during peak times Energy Efficiency utilizes programs and technology to consistently reduce electric demand Small Generators consist of diesel and gas engines and would include both rental and purchased assets Microgrids are electrical infrastructure which utilize advanced controls to increase redundancy 4

5 Case Studies The number of examples of successful and cost-beneficial NTS programs for T, D & G deferral remains low Successful implementations focused on with unique applications or with very high traditional solution costs There were examples of NTS that were driven by desire for institutional learning that required subsidization or rate increase to customers The deferral of can provide the utility the time it needs to verify the development of load to warrant the traditional solution SPP planning procedures and policies do not explicitly address battery storage at this time 5

6 Customer Outreach Engineering Services NTS technologies are interesting but customers show little interest (residential feedback) Energy monitoring most common Decisions are economically driven Commercial Developer Clients concerned about energy efficiency and lowest, long term operating costs (30 year Net Present Value) Economics still primary driver for all energy infrastructure decisions Residential Builders NTS technologies are interesting but customers show little interest EVs will be adopted first before solar and storage solutions Continue to monitor price points for changes to user adoption levels and system impacts 6

7 Value Analysis Traditional costs are weighed against total value of stacked NTS benefits Nebraska Total value of stacked NTS technologies Energy Storage Solar PV NTS Microgrid Small Generators EE Products Demand Response 7

8 Sustainability High-Potential Project Identification Technology Solution & Valuation Key Input Validation 4 Qualitative & Operational Assessment Started with five-year capital portfolio Applied very high-level filtering Evaluated additional using basic criteria to determine high-potential cases Gathered relevant project information and detail (load growth, load shapes, limiting equipment, customer composition, etc.) Ran technology and valuation model on Refined project costs Explored a variety of potential scenarios and combinations of technology Started a preliminary discussion with additional subject matter experts on assumptions and feasibility Detailed discussion with SME s and project stakeholders on potential solutions Candid dialogue regarding next steps and potential gaps in implementing solutions 8

9 Initiative Outputs Standardized and consistent cross functional methodology under which transmission & distribution investment decisions can be evaluated using the knowledge of non-traditional resource options Clarity to resource and capability gaps to be closed to ensure sustainability Evaluated 101 and a handful of showed possible Net Present Value positive solutions in the near term and require additional evaluation and will be monitored into the future Implementation plans built and approved Embedded into the annual planning process 9

10 Next Steps Deploy cross-functional methodology in the 2019 planning process and beyond, with a concentrated focus on high-potential previously identified Sub Hourly dispatch platform evaluations have started and should continue to increase the District s ability to value intermittent and quick-start supply side resources When economics are at parity or close, the organization will prioritize inclusion for nontraditional technologies 10