System Peak Load Management with Transactive DER

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1 GridWise Architecture Council System Peak Load Management with Transactive DER Orchestrating Distributed Energy Resources the Transactive Way Mark G. Yao, Srivats Shukla June 13-15, Portland, Oregon

2 Overview System Objectives - Reduce regional network service charge and capacity cost charge Reduce monthly billed load peak of VELCO System (RNS) Reduce VELCO contribution to annual ISO New England system peak load (capacity cost) DER Pool - Distribution Utilities (DUs) in VT are pooling their available DER assets Mixed collection of utility owned assets and behind-the-meter customer owned assets DER Types: PEM(Packetized energy management) EES (Electrical Energy Storage) EWH (Electrical Water Heater) DG (Distributed Generator, including renewable Solar PV ) DR (Demand Response) DER Constraints: Time of usage Event Cost Priority Power/Energy 2

3 Key System Components Predictive Analytics Forecast - Hyper localized weather forecast - Load forecast - Peak probability forecast DER Planning & Optimization - Peak shaving strategy - Unit commitment of DERs - DERs schedule optimization (constraints, cost, priority) DER Feedback - Response signal with committed action - Effect on next iteration of load forecasting - Re-computing constraints of DERs Analytics / Forecast (Weather / System-Load / Peak-Probability) DER Optimization (Opt. Strategy/UC/Schedule) DER Control & Feedback (Action/State) 3

4 How To Manage It the Transactive Energy Way Need of hierarchical control - At regional grid level (ISO New England) - At state balancing level (VELCO) - At distribution level (DUs) Benefits of TE for this use-case - Holistic approach, high scalability - Separation of concerns, objectives and constraints - Ability of quantifying, modeling, and computing constraints analytical with value-based signal as integration elements - Orchestration of DER with feedback loop control Need of integration & orchestration of many system objectives and constraints: - global vs local - business rules, regulatory policy - technical and non-technical requirements Need of flexibility of aggregation or separation of DER Ownership (availability, constraints, cost model) vs. Operational Right (commitment, optimization, dispatching) 4

5 How To Do It the Transactive Energy Way ISO NE Peak Management TE Node - Uses system peak as a constraint, and computes incentive value signal based on that constraint DU VELCO S2 S2 S1 S1 DER Owner/Operator TE Node - Manages assets based on incentive value signal - Responds with revised net load forecast after DER actions DER Assets S1: Incentive signal for ISO NE Annual Peak Forecast S1 : Vermont net load forecast after DER actions S2: Incentive signal for Vermont Monthly Billed Load Peak Forecast S2 : DU net load forecast after DER actions Peak Management objective and incentivization can be blended with other system objectives and constraints to compute multiobjective incentive value signals, e.g. - Transmission Congestion vs. system Peak - ISO NE peak vs. state-level peak for the VELCO node 5

6 Project Status & Initial Results System Load Peak Probability Monthly Billed Load Forecast Forecast Of Curtailed Load After DER Actions Optimized DER Schedules & Actions 6

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