NYISO Market Initiatives Distributed Energy Resource (DER) Roadmap & Integrating Public Policy (IPP)

Transcription

1 NYISO Market Initiatives Distributed Energy Resource (DER) Roadmap & Integrating Public Policy (IPP) James Pigeon MANAGER, DISTRIBUTED RESOURCES INTEGRATION 2017 IESO Stakeholder Summit: June 12, 2017, Toronto, Ontario

2 Roles of the NYISO Reliable operation of the bulk electricity grid Managing the flow of power on 11,000 circuit-miles of transmission lines from hundreds of generating units Administration of open and competitive wholesale electricity markets Bringing together buyers and sellers of energy and related products and services Planning for New York s energy future Assessing needs over a 10-year horizon and evaluating projects proposed to meet those needs Advancing the technological infrastructure of the electric system Developing and deploying information technology and tools to make the grid smarter

3 NYPSC REV Reforming the Energy Vision Six Core Policy Goals Customer knowledge Market animation System-wide efficiency Fuels and resource diversity System reliability and resiliency Carbon reduction This initiative will lead to regulatory changes that promote more efficient use of energy, deeper penetration of renewable energy resources such as wind and solar, wider deployment of distributed energy resources, such as micro grids, on-site power supplies, and storage. It will also promote markets to achieve greater use of advanced energy management products to enhance demand elasticity and efficiencies.

4 Governor s Direction on Clean Energy Clean Energy Standard (CES) Objectives* Increase renewable generation to achieve the 50% by 2030 goal Support construction and continued operation of renewable generation in the State Prevent closure of emission-free nuclear facilities Promote the market objectives of the Public Service Commission s Reforming the Energy Vision (REV) proceeding * Staff White Paper on Clean Energy Standard, NYS Department of Public Service, January 25, 2016

5 Emerging Trends CURRENT FUTURE Paradigm Centralized Decentralized Generation Dispatchable Intermittent Renewables Expensive Grid Parity Grid Power Flows One-way Bi-directional Customers Consumers Prosumers Demand Inflexible Price-responsive Source: ECCO INTERNATIONAL, INC.

6 Today s Power Grid

7 Tomorrow s Grid Bidirectional flow of Electricity

8 Solar Photovoltaics Energy Storage Microturbines DISTRIBUTED ENERGY RESOURCES Plug-in Electric Vehicles Microgrid Systems Combined Heat & Power Copyright NYISO All rights reserved. 8

9 Integrating DER in Wholesale Markets

10 DER Roadmap Building the Platform for Tomorrow s Grid The Roadmap establishes the framework for integrating DER into New York s Wholesale Market The Roadmap will guide the next three to five years of wholesale market development efforts for DER

11 DER defined NYISO defines DER as: a resource, or a set of resources, typically located on a customer s premises, that can provide wholesale market services but are usually operated for the purpose of supplying the customer s electricity needs Power Generation Distributed Storage Distributed Energy Resource DER can consist of: Flexible Demand Response demand management, power generation, energy storage, or various combinations aggregated into a single entity

12 DER Roadmap Objectives Integrate DER into Capacity, Energy, and Ancillary Services Markets Align with New York State s REV Goals Align Compensation with System Requirements Focus on Wholesale Market Transactions Enhance Measurement and Verification

13 DER Roadmap Timeline DER Roadmap is starting point for stakeholder deliberations to develop market rules, operating requirements, and software to realize fully integrated grid operations Series of pilot projects will test various integrated components * NYISO s Distributed Energy Resources Roadmap for New York s Wholesale Electricity Markets, page 9

14 Today

15 Future

16 Solar Photovoltaics Storage INTEGRATING PUBLIC POLICY Hydro Resources Wind Resources Copyright NYISO All rights reserved. 16

17 NYS Clean Energy Standard Implications for Transmission Because most of the renewable energy sites are in the northern and western parts of the state, and most demand is in southeastern New York, additional transmission will be necessary to deliver the volume of renewable energy needed to achieve the CES goals Implications for Installed Capacity Revenues must be sufficient to attract and retain resources needed to maintain resource adequacy Implications for Markets New market products to incent ramping, quick start, load following, etc. may need to be considered

18 Scope of Effort Integrating Public Policy Project The Brattle Group Work NYISO Work PHASE 1: Incorporating the Cost of Carbon Study Study whether incorporating a state policy defined cost of carbon in the wholesale market would improve the overall efficiency of the NYISO energy and capacity markets PHASE 2: Market Impact Assessment Study the impacts of decarbonization goals on the current NYISO energy and capacity markets from the high penetration of low carbon or carbon-free resources PHASE 3: Market Rule Assessment Study whether other market products or changes to the existing market structure will be necessary to meet the anticipated reliability needs

19 PHASE 2 Market Impact Assessment: Assumptions The NYISO will study the impact on today s market of adding sufficient renewable resources to meet the CES 50% renewable by 2030 goal The primary source of projections for the quantity and location of qualified CES renewable generation is the NYSDPS Final Supplemental Environmental Impact Statement ( Final EIS ) in CASE 15-E-0302 The study will use the NYISO s market software The study is not a planning study The question of underlying transmission upgrades to support CES is an important one but is not part of the scope of this work

20 Existing Renewables and Modeled Renewables 2030 case represents NYDPS Final Supplemental EIS installed megawatt (MW) projections ADG/LFG anaerobic digester/landfill gas generators

21 PHASE 2 Market Impact Assessment: Next Steps Summer 2017 Review of final Day-Ahead and Real-Time Market simulation results as well as review of Capacity Market impacts Remainder 2017 Begin Assessment of necessary market evolutions

22 The Mission of the New York Independent System Operator, in collaboration with its stakeholders, is to serve the public interest and provide benefits to consumers by: Maintaining and enhancing regional reliability Operating open, fair and competitive wholesale electricity markets Planning the power system for the future Providing factual information to policy makers, stakeholders and investors in the power system