Overview and Status of Distributed Energy Resources Policy Docket Jay Griffin, Chief of Policy and Research Hawaii Public Utilities Commission August 4, 2015 Hawaii Public Utilities Commission 1 Jay Griffin Chief of Policy and Research Hawaii Public Utilities Commission Dr. James “Jay” Griffin is the Chief of Policy and Research at the Hawaii Public Utilities Commission. He leads the PUC’s team of researchers and economists that support Commission decision-making with energy policy research and analysis. Joining the PUC over two years ago through an intergovernmental agreement, Jay is on leave as a faculty member at the Hawaii Natural Energy Institute (HNEI) which is an independent research unit at the University of Hawaii supporting the state’s efforts to develop indigenous renewable energy sources and reduce dependence on imported fossil fuels. While at HNEI, Jay worked on the research team for several renewable grid integration studies and led a Department of Energy-funded smart grid demonstration project on Maui. Hawaii Public Utilities Commission 2 Hawaii – Becoming World Leader in Solar PV Adoption Hawaii leads the nation in the penetration of residential rooftop solar PV systems and as a result, is at the forefront of the integration challenges associated with high solar PV penetration levels. At the same time, Hawaii is on track by 2017 to become a world leader in the utilization of solar PV resources – both distributed and utility-scale – with installed solar PV capacity penetration levels exceeding 75% of typical daytime gross system loads likely on several island electric grids. 3 Hawaii Electric Systems -- 4 Electric Utilities; 6 Separate Grids Kauai Island Utility Cooperative Maui Electric 34 MW PV (12 MW in development) System Peak: 72 MW Customers: 32,700 17% Maui: 52MW PV / 72MW Wind System Peak: Maui 190 MW Lana’i: 1MW PV System Peak: Lana’i: 5 MW Moloka’i: 2 MW PV System Peak: Moloka’i: 5.5 MW Customers: 68,000 Oʻahu 15% Hawaiian Electric 283 MW PV / 100 MW Wind / 69 MW WTE System Peak: 1,144 MW Customers: 300,000 Molokaʻi 34% Maui Lanaʻi Hawaii Electric Light 52 MW PV / 30 MW Wind / 34 MW Geothermal / 16 MW Hydro System Peak: 190 MW Customers: 81,000 Hawaiʻi 47% 4 Hawaii’s Distributed Solar PV Growth has Pushed Interconnection and System Integration Boundaries Hawaiian Electric Companies 389 400 Cumulative Installed Capacity (MWs) 350 301 300 250 200 171 150 100 71 40 50 0 1.8 2.4 4.7 2005 2006 2007 12 2008 24 2009 5 2010 2011 2012 2013 2014 PV output to circuit load. !As a rule of thumb, the minimum daytime load is about 50% of the peak, and the peak in Hawaii typically happens in the later evening as PV output is declining. !On Oahu, the most recent information we received is that 68 circuits are at this threshold which is close to 1/3 of the total. !It's a similar story on Maui and Big Island. ! Growth of Distributed PV has Pushed Interconnection Boundaries 14 Source: Hawaiian Electric Co. PUBLIC UTILITIES COMMISSION 6 Growth of Distributed PV has Pushed Interconnection Boundaries Source: Hawaiian Electric Co. • Over last 2 years utility has increased distribution circuit screen levels to interconnect additional PV • Aggregate growth has raised system-level integration challenges PUBLIC UTILITIES COMMISSION 7 Hawaii’s High Renewable Grids are Encountering New Technical, Economic, and Policy Challenges First 60% Daytime Load supplied by Wind and DG Source: Maui Electric Co. “Renewable Watch”, August 1, 2015 Hawaii Public Utilities Commission 8 Hawaii’s High Renewable Grids are Encountering New Technical, Economic, and Policy Challenges First Maui, Hawaii Island, and Kauai regularly > 50% w/ Oahu to follow soon CAISO @ 23% daytime load similar to Oahu today Hawaii Public Utilities Commission 9 March 31 PUC Orders Address DER Interconnection and New Customer Options Interconnection of Energy Storage Systems (Docket No. 2014-0130) • Storage systems will be reviewed for safety and reliability • Resolution of further technical issues moved to DER docket Distributed Energy Resources Policy Docket (Docket No. 2014-0192) • Established to investigate technical, economic, and policy issues • Opening order highlighted 3 key objectives: 1) Clear interconnection backlog 2) Enable DER market growth 3) Create new DER market choices • Included Staff Paper and Proposal • Continues work started by stakeholders in the Reliability Standards Working Group (RSWG) Hawaii Public Utilities Commission 10 Overview of Staff Report and Proposal • Focused discussion and collaboration among parties will resolve high priority issues more quickly • Document divided into 3 sections: 1) Overview of Recent Trends in Hawaii Solar PV Market 2) Near-Term Technical and Economic Challenges and Proposed Solutions for the Evolution of Hawaii’s DER Market 3) Proposed DER Policy Docket Issues and Work Scope • Summarizes near-term integration challenges • Includes DER Advanced Technology Roadmap • Proposes work scope for near-term and mid-term solutions Hawaii Public Utilities Commission 11 Staff Paper Summarizes DER Priority Technical Challenges Examples of Technical Integration Challenges Steady State Operations Systemlevel Circuitlevel Contingency Events Over-generation and increasing variability in generation resulting in: Curtailment of other renewable generation Frequency regulation and ramping challenges for central generation Behavior of aggregate DER fleet may exacerbate grid instability during emergencies: Need grid-supportive frequency and voltage trip and ride through settings Over-generation resulting in: Approaching or exceeding distribution system equipment capacity limitations Behavior of DER systems during circuit-level contingencies may result in: Unintentional islanding Temporary load rejection overvoltage Source: Table 2, Staff Report and Proposal, Docket No. 2014-0192, March 31, 2015 Hawaii Public Utilities Commission 12 Proposed Market Options to Address Integration Challenges Customer Self-Supply Option Customer DER Development Options Non-participant customers held harmless, or benefit, from both customer solar PV development options Customer choice -non-export option to serve customer energy requirements Customer Grid-Supply Option Grid power supply – export option to supply wholesale energy Source: Staff Report and Proposal, Docket No. 2014-0192, March 31, 2015 Hawaii Public Utilities Commission 13 Next Steps in DER Docket • Phase 1: Collaborative process with focus on clearing interconnection backlog, enabling continued DER market growth, and creating new DER market choices • Parties filed Final Statements of Position – June 29, 2015 • Resolution of Phase 1 issues and Phase 2 scope currently under Commission consideration Hawaii Public Utilities Commission 14 Mahalo! Please send any questions to me at james.p.griffin@hawaii.gov Hawaii Public Utilities Commission 15