Western Interconnection Grid Reliability. Brett Wangen Director of Engineering

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1 Western Interconnection Grid Reliability Brett Wangen Director of Engineering

2 Peak Reliability Reliability Coordinator Two control centers Situational awareness Operations planning Real-time operations Peak s objective Reliable and efficient operation of the Bulk Electric System 2

3 Generation Resource Mix in the Past Flexible Predictable Consistent Controllable (fast) Centralized Future Less flexible Uncertain Intermittent Less controllable Distributed Peak s mission is to maintain high levels of Bulk Electric System reliability regardless of the challenges 3

4 Renewable Capacity by Year Wind Generation Solar Generation Source: WECC 2015 State of Interconnection Report

5 Managing Wind and Solar Generation Wind Solar Variability Transmission congestion Difficult to forecast System inertia Source: Bonneville Power and California ISO

6 Peak is Focused on Key Challenges System Operating Limits Transient Stability Frequency Response Voltage Stability

7 Improving Grid Operations through a Wide Area View Full Western Interconnection wide view Greater visibility of problems impacting multiple entities High degree of coordination and collaboration Ensuring a reliable future! 7

8 Thank you! Brett Wangen

9 Ongoing Grid Innovations Energy Storage Alex Morris, Policy Director WSPSC Conference May 25, California Energy Storage Alliance

10 About CESA Making energy storage a mainstream energy resource to advance a more affordable, clean, smart, and reliable electric power system in California. Board Members General Members 1 Energy Systems Inc. Alstom Energy Aquion Energy Bright Energy Storage Brookfield Renewables CA Environmental Associates Consolidated Edison Development Cumulus Energy Storage Customized Energy Solutions Demand Energy Dynapower Company Eagle Crest Energy EDF Renewable Energy Electric Motor Werks, Inc. Elevation Solar ELSYS Inc. Energy Storage Systems, Inc. Enphase Energy EV Grid Geli Gordon & Rees Green Charge Networks Greensmith Energy Gridscape Solutions Gridtential Energy Hitachi Chemical Company Ice Energy Imergy Power Systems Invenergy Johnson Controls JuiceBox Energy K&L Gates LG Chem Power LightSail Energy Lockheed Martin AES NEC Energy Solutions OutBack Power Technologies Panasonic Parker Hannifin Corporation Primus Power Princeton Power Systems RES Americas S&C Electric Company Saft America Sharp Electronics Skylar Capital Management Sony Corporation Sovereign Energy Sumitomo Electric SunEdison SunPower Trina Energy Storage Toshiba International Corporation Tri-Technic UniEnergy Technologies Younicos California Energy Storage Alliance

11 About Energy Storage» Many Technologies Types Big and small Varying energy and power capabilities» Many uses Key question for deploying energy storage is what problems are we trying to solve?» Benefits/Roles: Customer roles Wholesale market roles Distribution and Transmission system roles, including maintenance deferral Other roles sometimes not captured in above categories California Energy Storage Alliance

12 Energy Storage Grid Innovations» Storage driving considerations/innovations for Multiple-Use Applications (MUAs) MUA resource provides services in two or more jurisdictional areas of the electric grid CPUC, CAISO, and FERC activities» Third-Party and Distributed Energy Resource (DER) Distribution Services Historical utility plans, builds, operates, and upkeeps distribution system Pre-approved sets of tools, systems, etc. Potential utility publishes info on distribution problems. Solution providers compete to resolve. Rules TBD CPUC assessing and piloting» Fleet Planning to Address Overgeneration and Downward Ramping California uses fleet planning ( Resource Adequacy ) to ensure load is served in CA. Historically, hasn t measured if fleet address ramping» Others: Aggregations, Interconnections, Station Power rules, Non-Wires Alternatives for Transmission Planning, and more California Energy Storage Alliance

13 Takeaways Storage will play a role in our grids, especially in a high renewables future. Working out rules to maximize use of grid resources/components like energy storage is smart and can be cost-effective Learn More/Follow-Up: CESA Join Today! Energy Storage North America (ESNA), Contact Alex Morris: amorris@storagealliance.org California Energy Storage Alliance

14 INTEGRATING RENEWABLES WITH RENEWABLES Western NARUC Conference May 25, 2016

15 Energy transformation requires a completely different mindset -- Antonella Battaglini, Renewables Grid Initiative at CAISO 2015 Symposium Source: GE Energy Consulting: Integrating Higher Levels of Variable Energy Resources in California (2015) 6

16 Curtailment (%) TACKLING GRID TRANSFORMATION What we know at high levels of renewables penetration Flexibility and capabilities are key We don t need every resource to provide everything but using renewables and other clean resources to provide reliability services can have huge benefits Enhanced flexibility BaselineTarget High Solar Conventional flexibility Baseline Target High Solar Figure 3. Curtailment in six selected LCGS scenarios Source: Low Carbon Grid Study, Phase 2 (2015) Source: UCS, Achieving 50 percent renewable electricity in California (2015) 7

17 GRID TRANSFORMATION IS KEY TO ACHIEVING CLIMATE GOALS Target conventional Target enhanced High Solar conventional High Solar enhanced Target conventional (dry hydro) Target enhanced (dry hydro) 2012 carbon emissions LCGS carbon target (50% below 2012 emissions) Baseline conventional Baseline enhanced Deep carbon reductions are possible under multiple scenarios, including high solar scenarios, if we transform the grid Carbon emissions (MMT) Source: LCGS, Phase 2 Source: UCS Report 8

18 HOW DO WE DO IT? Improve energy markets Reduce self-scheduling Improve the dispatch of renewables Harness flexibility from existing resources, including imports. Replace grid services from thermal generators with services from renewables and other clean resources Create larger markets Develop price-responsive rate structures that enable utilization of cheap, clean energy. 9

19 GRID-FRIENDLY RENEWABLES Solar and wind can provide essential reliability services, in some cases better than conventional generators: Inertia Down and up reserves Over and underfrequency response Voltage regulation Source: NREL Advanced Grid-Friendly Controls Demonstration Project for Utility-Scale Solar PV Projects (2016), First Solar Barilla PV Plant

20 EXAMPLE: SOLAR PROVIDING DOWN RESERVES Thermal units providing down reserves exacerbate over-supply issues. Solar (or other renewables) providing 60 MW of down reserves could displace a 100 MW thermal unit providing 60 MW of down reserves and the 40 MW of minimum generation level associated with it. Photo credit: Sun Power, Quinto Project, Merced County

21 BUT. Source: NREL Advanced Grid-Friendly Controls Demonstration Project for Utility-Scale Solar PV Projects (2016) 12

22 NEXT STEPS FOR HARNESSING GRID SERVICES FROM SOLAR PV The technical capabilities of solar PV to provide grid services exists and has been demonstrated -- continued work to demonstrate value is important. Implementation will require contract and market structures with clear requirements and compensation streams. Establishing these structures early is key to ensuring reliability services from renewables will be available when needed. 13

23 THANK YOU! Rachel Gold, Policy Director Large-scale Solar Association 14

24 Distributed Energy Resources in CAISO Wholesale Markets Tom Flynn Storage & DER Policy Manager California Independent System Operator

25 Distribution connected resources are becoming an increasingly important part of the resource mix Significant growth driven by state policies, emerging cost-effective distributed technologies and evolving customer preferences Opportunities for DER are expanding: DER can offer benefits/services to customers, distribution system, and transmission grid (i.e., ability to sell up ) Multiple Use Applications Integrating DER into CAISO markets will: Help lower carbon emissions Provide operational benefits Page 16

26 Distributed Energy Resources in California Installed distributed solar PV 3.1 GW (U.S. EIA Sep. 2015) 3.5 GW (California Energy Commission Oct. 2015) 3.9 GW (Go Solar California April 2016) Forecasted distributed solar PV by GW (CEC forecast) 11.6 GW (IOU forecasts) Distributed energy storage by MW (CPUC procurement target) Plug-in electric vehicles: 1.5 million by 2025 (Governor s goal) 100,000 PEVs sold in California (as of Aug. 2014) 7,687 PEV public charging outlets (as of Aug. 2015) Page 17

27 MW Distributed Solar PV in California 12,000 Estimated Behind the Meter Solar PV Build-out through ,000 8,000 6,000 4,000 2, BTM Solar PV 3,695 4,903 5,976 7,054 8,146 9,309 10,385

28 CAISO has developed several models for DER to participate in its markets Available today: Proxy Demand Resource (PDR) Supplier can aggregate multiple end-use customers to create a virtual DR resource May involve other DER types behind customer meter, but cannot result in net energy injection to the system Available today: Non Generator Resource (NGR) Designed for a resource that can vary between consuming & producing energy (e.g., storage) In progress: DER Provider (DERP) A new market participant that aggregates diverse types of DER for CAISO market participation Page 19

29 DER Provider submits bids into CAISO market and manages response to CAISO dispatch instructions May provide energy and ancillary services Aggregate resource must be at least 0.5 MW Individual DERs in an aggregation: must be less than 1 MW, but may be diverse types and located at multiple pricing nodes Aggregations across pricing nodes may not exceed 20 MW DER provider must ensure that DER in aggregation meet all interconnection and distribution system requirements Response of aggregation to CAISO dispatch instructions must align with pre-specified distribution factors P1 P2 DF=0.2 P3 P4 P5 P6 DF=0.5 P7 P8 DF=0.3 DER providers tell the CAISO how their aggregation is distributed across multiple LMP nodes. DER +2 MWh DER +5 MWh DER +5 MWh DER -2 MWh +3 MWh Page 20