MTS Working Group San Francisco F2F Agenda Jan. 7, 2015 Agenda 9:00-9:05a Introductions 9:05-9:30a Summary of Prior Discussions & Objectives for Meeting 9:30-12:00n Optimal Locational Value & Methods 12:00-12:30n Lunch break 12:30-2:00p Optimal Location Value & Methods 2:00-3:00p Distribution Process Planning Alignment 3:00-3:30p Proposed WG Activity Scope 1H 2015 3:30-4:00p Wrap-up & Next Steps Morning & afternoon breaks as needed 2 2 Objectives for Mtg • Identify DER Value Categories • Identify Methodologies for Value Categories • Focus on “What is possible today?” • Identify Scope of Initial DRP Analysis • Identify links to existing CA planning processes • Finish discussion started at 12/9/14 F2F • Define WG Activity Scope for 1H 2015 3 3 Optimal Location Values & Methodology Facilitated Discussion Context: AB327 Distribution Resources Plan • Identifies optimal locations for the deployment of Distributed Energy Resources (DERs) • DERs include distributed renewable generation, energy efficiency, energy storage, electric vehicles, and demand response • Evaluates locational benefits and costs of DERs based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings DERs provide to the grid or costs to ratepayers • Proposes or identifies standard tariffs, contracts, or other mechanisms for deployment of cost-effective DERs that satisfy distribution planning objectives • Proposes cost-effective methods of effectively coordinating existing commissionapproved programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of DERs • Identifies additional utility spending necessary to integrate cost-effective DERs into distribution planning • Identifies barriers to the deployment of DERs, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service 5 5 DRP Analysis Process (for discussion) Perform Planning Analyses Rank Substations by Value Calculate Value (Benefits & Avoided Costs) $14 Potential Avoided Costs $14 $12 $12 $10 $10 $8 $8 Millions Millions Identify DPA & Substations $6 $6 $4 $4 $2 $2 $- Value/Substation $- Substation 1 6 6 Evolution of DRP Optimal Location Benefits Analysis • What are the immediate benefit categories that can reasonably be evaluated within the next 3 months for the first DRP? No. of Benefit Categories & Sophistication of Analysis • What are the next logical set (incl. data and tools needed) for system-wide DRPs? Run Jog Walk 2015-1H 2016 System-wide DRPs incl. Locational Societal Benefits System-wide DRP including LTPP & TPP locational benefits Visibility & Initial DPA Locational Benefits 2H 2016-2019 2020+ 7 7 Scope of Value Analysis for Initial DRP? (draft for discussion) Societal Distribution Wholesale Value Component Initial WECC System Benefits No, since system-wide benefit CA System Energy Price No, since system-wide benefit Generation Capacity Yes, Use Identified Local RA for screening Wholesale Ancillary Services No, since system-wide benefit RPS Generation & Interconnection Costs No, since system-wide benefit Transmission Capacity Yes, Use TPP locations for screening Transmission Congestion + Losses Yes, Use estimate for screening Sub-transmission Capacity Yes,… Distribution Substation + Feeder Capacity Yes,.. Distribution Losses Yes,… Power Quality Yes,… Reliability Yes,.. Resiliency Yes,.. Safety Yes,.. Customer Choice No, since specific customer & public benefit Emissions (CO2, Criteria Pollutants & Health Impacts) Yes, use local air emission value for screening Energy & Water Security No, since public benefit Water & Land Use No, since system-wide benefit Other Societal (Economy, Jobs, etc.) No, since public benefit 8 8 DER Value Categories (1/2) 9 9 DER Value Categories (2/2) 10 10 DER Values & Methods (1 of 3) 11 11 DER Values & Methods (2 of 3) 12 12 DER Values & Methods (3 of 3) 13 13 Distribution Planning Process Alignment to IOU GRC and State Planning Processes Facilitated Discussion Potential DPP Alignment Map for CPUC, CAISO, CEC Refer to Lorenzo’s Handout 15 15 DPP Process Alignment for CPUC, CAISO, CEC • The new DPP should align with the LTPP-TPP-IEPR timeline • Main points to consider: • When is it optimal to have a new DRP, i.e., the final result of the biennial DPP, to feed into the other processes? That is, where on the alignment timeline do we want the DPP to conclude? • What are the key process steps of the DPP, what is the sequence in which they must be performed, and what inputs do they require from other processes? • Currently, first DRP due in July 2015. If July 2017 is the next deadline then: • DRP would provide useful and timely input to the IEPR demand forecast, which is planned to be released in draft form in September 2017 and finalized by December 2017. • Likely that July 2015 DPR will not be as informative for the 2015 IEPR, still we should consider to what extent it will inform that forecast. • CPUC, CECS, and CAISO will collaborate between September-December 2017 to develop “assumptions and scenarios” for TPP and LTPP for cycles beginning in January 2018. Developed in consultation with Lorenzo Kristov (CAISO) 16 16 1H 2015 MTS WG Scope (proposed) Facilitated Discussion MTS WG Purpose & Objectives (based on July 2014 Workshop) • Purpose: • Provide an open, voluntary stakeholder forum to discuss core issues toward finding common ground regarding the evolution of California’s distribution system and the seamless integration of DER to meet customers’ needs and public policy. The results of the discussions will be for the benefit of the participants and will be made public without specific participant attribution. • Objectives: Define common parameters for the development of distribution planning scenarios for utilities to properly stress test plans and to achieve a measure of comparability among the different plans. Identify and define the integrated engineering-economic analysis required to conduct distribution planning in the context of AB 327 requirements. Define the potential grid end-states in the context of existing plans/roadmaps and identify the considerations regarding grid evolution to meet customers’ needs and California’s policy objectives. 1H 2015 • Define the scope and parameters of an operational/DER market information exchange to facilitate an open planning process and enable R&D efforts. • Define distribution services associated with identified DER values including performance requirements. • Define new distribution operational functions (DSO) and related integration technologies (vendor neutral) to create “node-friendly” open grid 18 18