CVR as an Energy Efficiency Resource

Transcription

1 CVR as an Energy Efficiency Resource Prepared for: IEEE Innovative Smart Grid Technologies Conference Prepared by: Applied Energy Group Kelly Warner February 19 th, 2014

2 The information in this presentation is based on the results of a DOE funded project under: American Recovery and Reinvestment Act of 2009 Smart Grid Investment Grant Program or the Smart Grid Demonstration Program For further information go to

3 CVR - A Technology Whose Time has Come Proven technology used on a limited scale by utilities over the past 3 decades. Lowering voltages improves the efficiency of many end-use appliance Most customers receive voltage at the high-end of the ANSI range. The intersection of interest in Smart Grid and Energy Efficiency are increasing awareness of CVR. Low-cost, scalable, controllable " Utility business case and regulatory constructs are holding back CVR s potential Utilities incur the cost while customers receive the benefit " When viewed as an EE resource, CVR has huge potential. 1. CVR is also referred to as Conservation Voltage Regulation, Conservation Voltage Optimization (CVO), or Volt/VAR Optimization (VVO).

4 Standard Voltage Regulation Using Substation LTC Source: Application of Automated Controls for Voltage and Reactive Power Management Initial Results. DOE Smart Grid Investment Grant Program, December 2012

5 Enhanced Voltage Regulation Using Downstream Voltage Regulators Source: Application of Automated Controls for Voltage and Reactive Power Management Initial Results. DOE Smart Grid Investment Grant Program, December 2012

6 Voltage Regulation Using V-Regs and Capacitors Source: Application of Automated Controls for Voltage and Reactive Power Management Initial Results. DOE Smart Grid Investment Grant Program, December 2012

7 Understanding how CVR affects customer loads is a critical step to using CVR as an EE resource Load Types Reference: IEEE Brown Book, ANSI/IEEE Std

8 CVR Market Taxonomy TRANSFORMERS VOLTAGE REGULATORS CAPACITORS Devices RELAYS/ RECLOSERS SENSORS METERS DMS CVR CONTROLS AMI Software and Control Systems D-SCADA PLC/PLS Communication Infrastructure CELLULAR RADIO COMMERCIAL - Planning Tools - OPEN POINTS N TIME POINTS N TIME NEAR REAL-TIME NEAR REAL-TIME OpenDSS OMF Core CVR Components DA AMI

9 CVR Operating Models CVR Strategy Opera3ng Model Benefits Emergency Load Relief Substa;on Voltage Reduc;on Peak Load Management Customer End- use Efficiency Short- term event- specific voltage reduc;on Con;nuous substa;on voltage op;miza;on Economic dispatch model during high avoided- cost periods Con;nuous dynamic voltage control across an en;re feeder System protection during emergency events Distribution systems energy savings at the sub-station Avoided high margin supply costs during peak periods Customer energy and demand savings

10 CVR adds significantly to cost-effective EE resource potential, with a potential to save 750 Trillion BTU s at $4.40/MMBTU***. Conservation Voltage Reduction *** extracted from Pacific Northwest National Labs Evaluation of CVR on a National Level July 2010

11 While low cost CVR options exist, deeper CVR deployments have the potential to generate significant savings at very reasonable costs $0.06 Potential Savings and costs $0.05 $0.04 Costs $0.01/kWh $0.03 $0.02 $0.01 $ % - 1% 1% - 2% 1.5% - 2.5% 2% - 3% Voltage Reg. LDC V-Reg. LDC w/ Minor System Improvements V-Reg. LDC w/ Major System Improvements V-Reg. EOL w/ Major System Improvements Source: Northwest Energy Efficiency Alliance, Distribution Efficiency Initiative Project Final Report. December 2007

12 DOE National CVR Study Data Requirements Categorized Data CVR/VVO Project Database Project Data Utility Project Name Contact Info Project Type Business Models Regulatory Strategy Technology Applica3ons Opera3ng Models Tools / Methods Business Case Driver Lost Revenues Voltage Regulation Operational Driver Planning Tools Benefit-Cost Metrics Cost Recovery VAR Regulation Static vs Dynamic Planning Methods Financial Metrics EE / Env Credits Communications Control Model Benefit-Cost Metrics Project Benefits Enabling Regs / Laws Monitoring Systems Organizational issues Financial Metrics Project Costs Control Systems Future plans M&V Protocols

13 CVR Drivers and Barriers Drivers Low cost EE resource w/ large potential Controllable Scalable Leverages existing SG assets like AMI Multiple benefit streams Aligns with key utility initiatives such as EE goal attainment, emission reductions, DER integration, and power quality enhancement Barriers Lost revenues and margins New technology risk Reliability concerns Organizational silo s Split benefits and costs Multi-dimensional planning Perceived threats by EE community Lack of regulatory incentives Lack of awareness

14 CVR Business Case is Complicated by Numerous Exogenous Factors Regulatory Opera;onal Customer Financial CVR Business Case Environmental

15 Regulatory / Cost- recovery Issues and Technology Risk Factors Need to be Addressed to Create a Profitable Business Case Benefits Costs Lost revenues and margins Reduced supply costs Opera;onal savings Uncertain Capital cost recovery Technology risk

16 Prototype SmartGrid Business Case Impact of Lost Margins on CVR Cost-Effectiveness $300 $200 $100 $0 ($100) Meter Costs Distribution upgrades Other Sytem Costs Operating Costs Distribution System benefits Avoided Energy Costs Avoided Capacity Costs Lost Margins ($200) ($300) ($400) ($500) ($600) ($700)

17 Energy Efficiency Resource Standards and Regulatory Incentive Mechanisms are driving the market for EE. CVR has the potential to benefit from these activities. Energy Efficiency Resource Standards. / October Over half of the States have EERS or EE resource goals. In States with long-established EE programs, escalating goals and the impact of codes and standards are creating a need for new, innovative sources of cost-effective EE. CVR could be a very attractive option for highlysaturated EE markets. The EE industry has developed a wide range of performance incentives and cost recover mechanisms that reward utilities for achieving EE goals. Ohio SB221 specifically defines grid activities such as CVR as EE measures that count towards a utilities EE goals. NARUC recently passed a resolution to allow CVR to be included in EERS. Source: Aligning Utility Incentives with Investment in Energy Efficiency. November National Action Plan for Energy Efficiency

18 Utility Early Adopters of CVR as an Energy Efficiency Resource Utility PECO BPA AEP TVA SMUD DOE - SGIG Program Attributes First u;lity to receive regulatory approval to use CVR to achieve EE targets. 320,000 MWh 1 st year savings achieved through CVR- lite (1/3 of 4yr goal). Deeper deployment in planning stages. Extensive CVR R&D. Currently offering $0.025/kWh saved over 10 years. Extensive M&V 35 feeder pilot of advanced CVR. Mo;vated my Ohio SB 221 allowing distribu;on efficiencies to count towards EE goals Commitment to spend $60M over the next 5 years for CVR EE incen;ves for member u;li;es. Large scale deployment of automa;on equipment targe;ng improved power factor, peak demand reduc;ons, and EE 26 u;lity CVR projects; 7 using CVR for EE Regulatory NARUC OHIO November resolu;on suppor;ng Volt/VAR as an EE resource SB221 mandates EE; includes distribu;on efficiencies

19 The Path Forward for CVR as an EE Resource Positioning CVR as a preferred EE resource will require: Better / more cost-effective planning tools Standardized M&V protocols More operational data on emerging technologies Regulatory incentive mechanisms to capture maximum savings potential Deep penetration per circuit Persistence of savings. Better understanding of the interaction with DG Voltage regulation on high penetration DG circuits

20 Thank-you! Applied Energy Group 1377 Motor Parkway, #401 Islandia, NY Contact: Kelly Warner