Designing the NY REV Distribution
System Platform: More than Smart
Webinar
Jim Gallagher
Executive Director
New York State Smart Grid Consortium
August 4, 2015
Jim Gallagher
Executive Director
New York State Smart Grid Consortium (NYSSGC)
Named Executive Director of the New York State Smart Grid Consortium (NYSSGC) in April 2013, James T. Gallagher brings over 35
years of energy policy and industry experience to his role.
As Executive Director, Gallagher oversees the Consortium and its members as they work toward broad statewide implementation of a
safe, secure, and reliable smart grid to modernize New York’s energy infrastructure. Gallagher is the architect of the NYSSGC’s priority
initiatives, which are designed to modernize New York’s electrical grid to improve reliability and resiliency, lower long-term costs, and
identify best practices for meeting the evolving energy service needs of consumers. He is currently co-facilitator of the stakeholder
process for Market Design and Platform Technologies for the NY Public Service Commission’s Reforming the Energy Vision (REV)
Proceeding.
Prior to joining the NYSSGC, Gallagher served as Senior Manager for Strategic Planning at the New York Independent System Operator
(NYISO), where he was responsible for establishing the long term strategic direction for the NYISO, which operates New York’s electric
transmission system and wholesale power markets. Before joining the NYISO in 2011, Gallagher served as Director of Energy Policy for
the City of New York, and he was the lead energy advisor to the Office of Mayor Michael Bloomberg. Prior to working with the City, he
was Director of the Office of Electricity and Environment for the New York Public Service Commission, where he enjoyed a 21 year
career, and held senior energy policy positions at Northeast Utilities, the Pennsylvania Governor’s Energy Council, and in the late
1970’s, the Tennessee Valley Authority. At TVA he developed and led the organization’s pioneering “Solar Homes for the Valley”
program.
Gallagher is a member of the Advisory Board of Grid4EU, the largest smart grid project funded by the European Commission. Through
this effort, Gallagher collaborates with international energy and technology experts to learn and create best practices and
technological solutions for grid modernization. Gallagher also serves on the EPRI Grid Modernization Advisory Group and sits on the
Board of Directors for the Advanced Energy Research and Technology Center. He is on the Executive Advisory Committee for the U.S.
Department of Energy’s State and Local Energy Efficiency Action Network.
He earned a B.S. in Business and Economics from Lehigh University, and an M.S. in Energy Management and Policy from the University
of Pennsylvania.
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Consortium Overview
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Consortium Mission
A Forum for Advancing Grid Modernization in NY State

Maintain vision of future grid

Advocate benefits for producers, suppliers, and consumers

Support initiatives that demonstrate capabilities of advanced grid
technologies

Provide technical resources for industry and policy makers

Priorities for 2014/2015
 Real world projects - - Multiple microgrid demonstrations
 Utility of the Future (REV)
 Strengthen research and international collaboration
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NY’s Reforming the Energy Vision (REV)
Proceeding Considering

Fundamental changes in ways utilities provide distribution
service

Aligning electric utility practices and regulation with
technological advances in information management,
pricing, power generation and distribution

Improving system efficiency, empowering customer choice,
and encouraging greater penetration of clean generation
and energy efficient technologies and practices
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The Distribution System Platform
Key Functions of the DSP

Designs and operates distribution system that integrates DERs
as major means of meeting system and customer needs

Optimize operations by balancing production and load in real
time

Monetize system & social values

Use market based means where appropriate

Coordinate interactions among customers, the distribution
system and energy services companies (DSP markets and
NYISO)
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Introduction: Market Design &
Platform Technology Groups (MDPT)
Purpose
Provide guidance for utility Distributed System Implementation
Plans (DSIPs) on near- and mid-term market design and
platform technology issues,
Process
Two working groups—one focused on DSP Market Design and
one focused on Platform Technology. Report to Department of
Public Service, August 17th, 2015. Co-facilitated by NYSSGC,
RMI, NY PSC Staff
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Market Design Group
Proposed Approach and Key Questions to Address

What defines the DSP market, and how might it evolve from
near-term to mid-term to long-term?

With a focus on the near and mid-term term, what
functionalities and capabilities must DSP and market actors
provide to achieve REV’s goals?

How will different actors interact and what are the implications
for data availability and transparency?

What elements of market design must be standardized across
DSPs and what rules are needed to adequately govern the
market?
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Platform Technology Group
Proposed Approach and Key Questions to Address

What are the platform technologies needed to support market
design, while complementing and enhancing grid operations?

What are key interfaces needing updated standards and
protocols? If a pre-defined standard does not exist, what are
the needs for a standard and the appropriate standards body to
create it

What are the technology and human resource gaps and options
that should be considered?
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DSP Market Design – Where we want
to go

Establish DSP Structure that optimizes distribution system
operations, improves reliability, and enhances affordability through
improved integration of DER

Where appropriate, competitive distribution markets utilized to
procure and compensate DER for value of services provided

Initial DSP markets focused on DER to address utility operational
needs and to offset of defer distribution infrastructure investments

DSP markets should complement and not replicate existing NYISO
wholesale markets
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DSP Market Design – Where we want
to go (continued)

Basic market design and interactions uniform across DSPs, but value
of products based on specific location and time

Evolve the markets over time based on sophistication of participant
capabilities and infrastructure capabilities.

Provide locational temporal based price visibility . Create a locational
based distribution system “adder.”

Customer experience enhanced through new technological
approaches and innovative competitive offerings (e.g. digital
marketplace, automated demand response).
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DSP Platform Technology – Where we
want to go

Improved system/DER visibility for real time network
monitoring/balancing

Pervasive use of system intelligence to enable automate grid
operations and dynamic load management

Seamless integration of retail and wholesale markets and operations

Strategic implementation of AMI where determined appropriate

Communications and data management infrastructure in place to
support overall market and operational requirements

Cyber secure
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Key Functions and Capabilities of DSP
1) Enhanced Distribution Planning

Probabilistic forecasting

Identify DER hosting capacity

Determine Locational based marginal costs

Integrated utility/NYISO planning

Identify and prioritize locations needing Dist. System
capacity/operational relief

Establish Distribution Planning Working Group
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Key Functions and Capabilities of DSP
(continued)
2) Expanded Distribution Grid Operations

Optimize load, supply and other power parameters at local
distribution level. Emphasis on automated response.

Orchestrate multi-directional power flows from DER

Improve load and network monitoring and visibility to aid
situational awareness and rapid response to atypical events

Cyber security
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Key Functions and Capabilities of DSP
(continued)
3) Distribution Market Operations

Primary responsibilities
 Develop and implement vibrant markets for DER products
and services
 Manage market operations and processes

Specific functions
 Develop and administer market rules
 Maintain awareness of DERs system wide
 Design and conduct initial RFPs/auctions to acquire DER
 Facilitating and processing market transactions
 Measuring and verifying participant performance
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Key Functions and Capabilities of DSP
(continued)
4) Ensuring Data Availability


Provide authorized customer and distribution system data needed to
facilitate market participation
The MDPT group identified
 Areas of need for specific types of data
 Current availability of such data
 Data interface issues
 Specific data necessary for the DSP planning and operations
functions
 Consensus not achieved
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Key Functions and Capabilities of DSP
(continued)
5) Necessary Platform Technologies
 Establish geospatial models of connected DER and system elements
 Sensing and control needed to maintain a stable and reliable grid
 Optimization tools that consider demand response capabilities as
well as the generation output of existing and new DERs in the grid
 Need to measure DER performance: advanced metering needed to
support DER and active customer participation. Broad Advanced
Metering Infrastructure (AMI) implementations must be
accompanied by business case.
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Major Milestones Going Forward

July 15th – Draft Report issued for public feedback

July 31st – Public Feedback Due

August 17th – MDPT Final Report released

September 3rd – NY DPS staff issue DSIP guidance

January, 2016 – Utilities file DSIPs
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Contact Information
New York State Smart Grid Consortium
387 Park Avenue South
3rd Floor
New York, NY 10016
James T. Gallagher, Executive Director
jgallagher@nyssmartgrid.com
NewYorkRevWorkingGroups.com
NYSSmartGrid.com
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