Presentation is loading. Please wait.

Presentation is loading. Please wait.

Electric Program Investment Charge Joint Investor Owned Utilities’ EPIC Administrators Webcast September 28, 2012.

Similar presentations


Presentation on theme: "Electric Program Investment Charge Joint Investor Owned Utilities’ EPIC Administrators Webcast September 28, 2012."— Presentation transcript:

1 Electric Program Investment Charge Joint Investor Owned Utilities’ EPIC Administrators Webcast September 28, 2012

2 Background Doug Kim Program Format and InitiativesKevin Dasso PG&E Illustrative Programs Kevin Dasso SDGE Preliminary ProgramsFrank Goodman SCE Illustrative programsDoug Kim Wrap UpDoug Kim Questions and Answers 1 Agenda

3 The California PUC established EPIC in May, 2012 through D to: – “provide public interest investments in applied research and development, technology demonstration and deployment, market support, and market facilitation, of clean energy technologies and approaches for the benefit of electric ratepayers of Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E) and Southern California Edison (SCE), the three large investor-owned utilities (IOUs).” 2 Electric Program Investment Charge (“EPIC”)

4 Summary of EPIC Decision Investment Areas  Applied Research: $55M/annually (CEC only)  Technology Demonstration & Deployment − CEC $45M, PG&E $15M, SCE $12M, SDG&E $3M (/annually)  Market Facilitation: $15M/annually (CEC only) Funding & Admin.  $162M/annually in ratepayer funding ( )  CEC administers 80% of the authorized budget; IOUs administer 20% Electricity System Value Chain  Grid Ops / Mkt. Design  Generation  Transmission  Distribution  Demand-Side Mgmt 3

5 IOUs are Limited to Funding Only Technology Demonstration & Distribution Programs Technology Demonstration and Deployment - The installation and operation of pre-commercial technologies or strategies at a scale sufficiently large and in conditions sufficiently reflective of anticipated actual operating environments to enable appraisal of the operational and performance characteristics and the financial risks

6 Collaborative Development of IOUs’ EPIC Plans Starting June 2012, the IOU program administrators have met semiweekly to develop the Working IOU EPIC Framework to guide the individual IOU EPIC plans The Working IOU EPIC Framework was presented to stakeholders at public workshops in August, as well as to the CEC, CPUC Staff, internal IOU subject matter experts, and industry experts (including EPRI), and has been refined with their input These groups have validated that the Working IOU EPIC Framework correctly identifies current technology gaps and aligns with driving California policies and goals 5

7 Administration of IOUs’ EPIC Programs 6 Coordination Efforts Will Continue – Next Steps: IOUs and the CEC will work together to assess duplication and identify if any co-funding or IOU-CEC collaboration opportunities exists – After EPIC Applications are Approved: IOUs and the CEC will continue to coordinate regularly to avoid unnecessary duplication, identify co-funding opportunities, and leverage completed research Semi-annual stakeholder meetings will be held to obtain input and present interim results Existing collaborative forums will be consulted, to avoid duplication and identify industry gaps IOUs will file Annual EPIC Reports with the CPUC Some EPIC programs will be executed by IOUs in-house using best practices while others will be pay-for-performance contracts – Pay-for-Performance contracts will generally be competitive

8 IOU Working EPIC Program Framework EPIC Technology Demonstration and Deployment Priority Utility Objectives Demonstrate System and Public Safety Health/Environmental Impact, Hazard Mitigation, System Integrity Demonstrate Reliability Reliability Improvement, Maintaining Reliability in the face of Grid changes Affordable Environmental & Energy Policy Attainment AB32, RPS, Energy Efficiency, Distr. Gen/Renewables & Integration (Distributed & Large Scale) Key “Megatrend” Drivers & Policy Objectives 33% RPS CSI Gov’s 12,000 MW DG Plan OTC retirements AB32 Energy Storage OIR SB17 Aging Infrastructure Workforce Development California Economic Resiliency ZNE CSI Net Energy Metering Peak Reduction EE Strategic Plan Renewables and Distributed Energy Resources Integration Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably Demonstrate Adaptive Protection Strategies Generation Transparency and Flexibility Customer Focused Products and Services Enablement Leverage the SmartMeter Platform to drive Customer Service Excellence Integrate Demand Side Management to Optimize the Grid Respond to Emerging Grid Integration Issues Grid Modernization and Optimization Demonstrate Strategies and Technologies to Optimize Existing Assets Prepare for Emerging Technologies Design and Demonstrate Grid Operations of the Future Cross Cutting/ Foundational Strategies & Technologies Smart Grid Architecture, CyberSecurity, Telecommunications, Standards

9 8 IOU CONSIDERED INITIATIVES Integration of Distributed Energy Resources (DER), Generation and Storage – Pilot test multiple uses of distributed energy resources and assess costs and benefits. – Pilot Energy Storage End Uses to test capabilities of emerging storage technologies that lack widespread commercial operating experience – Demonstrate DER aggregation and control as a fleet to provide substantial reliability improvement at the circuit level whether circuits have high or low penetration Adaptive Protection Strategies – Safely provide for two-way power flows on the distribution system – Reliably integrate and safely operate with increasing levels of variable energy resources on the transmission system – Closed loop control for special protection schemes Generation Transparency and Flexibility – Pilot test data aggregation and signals from DER to determine and inform IOU and CAISO operations of aggregate output – Pilot new forecast methods (Micro-climates & automated load and distributed resources) to better predict aggregate output – Pilot modifications and systems for more flexible use of existing generation to reduce power system operating costs and environmental impacts Renewables and Distributed Energy Resources Integration Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably Demonstrate Adaptive Protection Strategies Generation Transparency and Flexibility

10 9 IOU CONSIDERED INITIATIVES Demonstrate Strategies and Technologies to Optimize Existing Assets – Improve Distribution System Safety & Reliability through New Data Analytics Techniques (data capture, analytics, visualization & correlation technology to improve maintenance, detect outages, proactively identify potential safety hazards Preparing for Emerging Technologies – Demonstrate promising new transmission and distribution technologies to address aging infrastructure needs & existing equipment/facility limitations: – Smart Distribution Circuits: improve outage restoration and regulation on circuits through intelligent and coordinated switching of strategically placed equipment – Demonstrate Substation Automation, including monitoring, interoperability and intelligent alarming to increased reliability, efficiency, and safety of bulk power and distribution substations Designing Grid Operations of the Future – Demonstrate new technologies, integration and human situational awareness considerations to support the operator and integrated operations of the future – Assess the potential for future “state measurement” v. state estimation in grid operations – Distributed Control for Smart Grids: Pilot control system infrastructure that can meet the needs of the current and future ever-evolving complex power system Grid Modernization and Optimization Demonstrate Strategies and Technologies to Optimize Existing Assets Prepare for Emerging Technologies Design and Demonstrate Grid Operations of the Future

11 10 IOU CONSIDERED INITIATIVES * Leverage the SmartMeter Platform to drive Customer Service Excellence – Pilot energy usage data services for customers & approved third parties – Pilot Subtractive Billing with Submetering for Evs – Demonstrate data analytics capabilities of the SmartMeter platform to enable customers Integrate Demand Side Management to Optimize the Grid – Demonstrate integration and automation strategies/technologies for various customer energy resources (storage, DER, PEV, PV, DR) – Demonstrate DSM resources that can be integrated and delivered in a targeted manner to provide reliable & sustained demand reductions to postpone distribution and transmission capacity expansions Respond to Emerging Grid Integration Issues – Pilot and evaluate Zero Net Energy (ZNE) in specific building classes to test business models that support IOU customers – Pilot PEV Smart Charging and Vehicle to Grid technologies that encourage customer adoption of behaviors that further state goals – Evaluate costs, benefits and technical issues associated with vehicle to grid power supply Customer Focused Products and Services Enablement Leverage the SmartMeter Platform to drive Customer Service Excellence Integrate Demand Side Management Programs to Optimize the Grid Respond to Emerging Grid Integration Issues Note: Initiatives in this category will leverage existing RD&D initiatives in Energy Efficiency and Demand Response Programs

12 11 IOU CONSIDERED INITIATIVES System Architecture – Pilots distributed or hierarchical control systems infrastructure for T&D systems – Communicate & coordinate new & existing field devices (goal: no stranded assets) – Smart Grid architecture :Pilot IOU demonstrations of electrical and communication system architecture configurations, protocols and standards – Deep Grid Coordination: Demonstrate system architectures with the potential to incorporate new and existing assets, including customer DER into a coordinated smart system Cybersecurity – Pilot new strategies and technologies to make the entire electrical system more secure Data Analytics – Demonstrate best practices for filtering increasing data to make strategic use of data in evolving distributed control systems – Field test strategies and technologies that promote safe, reliable and affordable distributed control and automation Telecommunications & Standards – Pilot new communications architecture, standards, technologies, and strategies for addressing current and future needs Technical Workforce – Identify skills gaps to aid in developing workforce that can operate and maintain the power systems & technologies of the future Cross Cutting/ Foundational Strategies & Technologies Smart Grid Architecture, CyberSecurity, Telecommunications & Standards

13 PG&E Illustrative Programs Energy Storage End Uses Renewables and Distributed Energy Resources Integration - Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably - Adaptive Protection Strategies; - Generation Transparency & Flexibility Improve Distribution System Safety & Reliability through New Data Analytics Techniques Grid Modernization and Optimization - Demonstrate Strategies and Technologies for Optimizing Assets - Prepare for Emerging Technologies - Design and Demonstrate Grid Operations of the Future Pilot Subtractive Billing with Submetering for EVs Customer Focused Products and Services Enablement - Leverage the SmartMeter Platform to drive Customer Service Excellence - Provide Greater Billing Flexibility & Visibility - Integrate Demand Side Management for Grid Optimization

14 Technology or Strategy to be Demonstrated -The CPUC energy storage proceeding (Order Instituting Rulemaking ) identified 20 Energy Storage Systems (ESS) end uses in four categories. This illustrative program would leverage PG&E’s installed ESS to test more of these capabilities by expanding into additional end uses beyond the original funding commitments (e.g., new end uses could include bidding into the upcoming Non Generator Resources (NGR) CAISO market, testing against Resource Adequacy requirements, etc.). Concern, Problem, or Gap to be Addressed - ESS have the potential to contribute to solving many challenges on the grid, however, their full capabilities have not been widely demonstrated and lack of commercial operating experience has been identified as one of the barriers to ESS deployment. Pre-Commercial Technology or Strategy Aspect – Few, if any, ESS have been tested in multiple end-use scenarios How the Program Avoids Duplication from Other Initiatives – PG&E is currently building 2 MW and 4 MW battery installations at two distribution system locations. The installations and ESS technology is different than other CA Utilities and leverages existing PG&E assets 13 PG&E Illustrative Program: Energy Storage End Uses

15 Prioritization: High Priority Program Low incremental cost as EPIC funds are not required for installation of the ESS programs Leverages existing PG&E-funded and CEC grant-assisted programs Quick hit – ESS installations are underway; high probability of success in determining feasibility of multiple uses Necessary to meet future clean energy goals and address critical policy uncertainty EPIC Primary or Secondary Principles Met Increased Reliability Lower Costs Greenhouse Gas Reductions Efficient Use of Ratepayer Monies 14 PG&E Illustrative Program : Energy Storage End Uses

16 PG&E Illustrative Program : Improve Distribution System Safety & Reliability through New Data Analytics Techniques Technology or Strategy to be Demonstrated – Utilize data analytics advances to improve grid safety and reliability. Demonstrate that the ever increasing amounts of data can be mined and combined efficiently and cost-effectively in targeted, high–impact areas such as risk-based asset management, enhanced safety hazard mitigation and proactive outage prediction. Concern, Problem, or Gap to be Addressed – Current processes are time-consuming, manually- intensive data collection efforts that result in large data extracts that preclude timely or meaningful analysis. Existing siloed IT infrastructure is another limitation; Legacy hardware and traditional software is not sufficiently scalable and would require costly integration to meet future analytics and reporting needs. Pre-Commercial Technology or Strategy Aspect – “Big Data” is an emerging opportunity area for utilities. Common Internet Technologies (Data “mash-ups”, visual recognition, instant ad-hoc search) have significant utility use-cases. For example: A customer photographs a fallen tree on an electric line and uploads the picture. the utility tags it, automatically accesses records, identifies the line and sends a response crew with directions while auto-notifying impacted customers of the outage and potential safety hazard. Utility operators combine data such as weather forecasts, high fire danger areas, historical asset performance data, and vegetation management to significantly improve fire prediction, prevention and response capabilities, and share this information real time with first responders. Engineers and crews utilizing millions of SCADA measurements, protective relay data, maintenance history, equipment test records, and other sources optimize maintenance and replacement of costly equipment such as substation transformers and circuit breakers. 15

17 PG&E Illustrative Program: Improve Distribution System Safety & Reliability through New Data Analytics Techniques How the Program Avoids Duplication from Other Initiatives – Some utilities are pursuing limited data analytics pilots, however data solution providers require access to utility specific data, systems and business processes to test and prove the technology. While data is unique to each utility, the individual pilot cases need to be aggregated to provide “network effect” benefits that can be leveraged by multiple utilities and commercial vendors. Prioritization: High Priority Program High probability of success; short “prototyping” time required to prove improvements in targeted areas Significant potential to proactively address safety and reliability before incidents occur Provide multiple vendors with valuable input required to render technology commercially viable EPIC Primary or Secondary Principles Met Increased Reliability Increased Safety Societal Benefits Efficient Use of Ratepayer Monies Economic Development Job Creation Potential Energy and Cost Savings 16

18 PG&E Illustrative Program: Pilot Subtractive Billing with Submetering for EVs Technology or Strategy to be Demonstrated –Subtractive billing with submetering for EVs is a potentially low- cost method to offer customers increased flexibility in choosing beneficial rates for their EV usage. This includes: Avoiding the need to install a separate meter and service panel when choosing the PG&E separate meter EV-specific rate schedule; and Potentially provide a reasonable way to track the number of miles driven using electricity – as opposed to traditional fossil fuel – for transportation Concern, Problem, or Gap to be Addressed – A pilot, with EV customers in the different submetering scenarios, would inform implementation for the wider PG&E customer group. Pre-Commercial Technology or Strategy Aspect – This pilot would help develop the submetering protocol, national standards, and demonstrate the level of demand for subtractive billing with submetering for EVs. If there appears to be sufficient demand from customers, it would help provide a rationale for the cost- effectiveness of implementing a full-scale solution. 17

19 How the Program Avoids Duplication from Other Initiatives – IOUs were ordered to implement subtractive billing with submetering for EVs in the Phase 2 decision of R The IOUs with other stakeholders filed an extension letter with the Executive Director of the Commission, notifying the CPUC that the IOUs were not provided sufficient time or any funding to implement such a solution. This letter was approved by the CPUC. The IOUs have been working on developing required components to allow subtractive billing with submetering for EVs - such as a tariff and technical metering document - but nothing has been implemented or finalized at this time. EPIC Primary or Secondary Principles Met Lower Costs Societal benefits Greenhouse gas reductions Efficient use of ratepayer monies 18 PG&E Illustrative Program: Pilot Subtractive Billing with Submetering for EVs

20 Proposed SDG&E Programs Non-Traditional Uses of Distributed Energy Resources Renewables and Distributed Energy Resources Integration - Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably - Adaptive Protection Strategies; - Generation Transparency & Flexibility Smart Distribution Circuit Distributed Control for Smart Grids Pilot for Visualization and Situational Awareness System Grid Modernization and Optimization - Demonstrate Strategies and Technologies for Optimizing Assets - Prepare for Emerging Technologies - Design and Demonstrate Grid Operations of the Future Smart Grid Architecture Pilots Cross-Cutting/ Foundational Strategies & Technologies - Smart Grid Architecture - Cybersecurity - Telecommunications Standards

21 SDG&E Plan: Five Interrelated Pilot Demonstration Programs on Key Pinnacles of Smart Grid Development Smart Grid Architecture Pilots Smart Grid Distributed Control Pilot Pilot for Visualization and Situational Awareness System Pilots to Determine Business Case for New DER Functions Smart Distribution Circuit Pilot 20

22 SDG&E Proposed Program 1: Smart Grid Architecture Pilots Technology or Strategy to be Demonstrated – Pilot demonstrations of electrical and communication system architecture components, configurations, and standards to evaluate their suitability for inclusion in the SDG&E smart grid architecture. The communication architecture, which will need to be compatible with the electrical architecture, must have standardized device information models (object models) and protocols for the information transfer needed to operate a power system that is becoming increasingly complex. Concern, Problem, or Gap to be Addressed – SDG&E’s smart grid deployment has reached the point at which it is necessary to network the actively controllable (“smart”) devices with a monitoring and control system to govern the system operation. To do so, cannot be a random process and requires commitment to an architecture for both the electric system and the communication and control system that will be overlaid on it. Pre-Commercial Technology or Strategy Aspect – Utilities have been developing smart grids comprised of autonomous smart devices. An architecture is needed to network the increasingly complex system and deliver the full benefits of coordinated operation of these devices and the electrical circuits in which they are placed, per the overall vision of smart grids. How the Program Avoids Duplication from Other Initiatives – Each utility will require its own architecture, because the choice of smart grid features (components and system configurations) will differ from one utility to the next. Prioritization: High Priority Program – Autonomous smart devices are proliferating rapidly on the power system. A robust architecture is needed for device networking to support operation of this dynamically changing power system. – Provides a structure for continuing power system modernization – Provides an architecture for overlaying information systems on the electrical system EPIC Primary or Secondary Principles Met Increased reliability Improved power system performance and lower operating costs Increased safety Societal benefits 21

23 SDG&E Proposed Program 2: Distributed Control for Smart Grids Technology or Strategy to be Demonstrated – Pilot demonstration of distributed control unit to determine its suitability for inclusion in a hierarchical control infrastructure. The unit would process data coming from smart devices in an individual feeder or larger distributed circuit region and manage the smart devices and the emerging reconfiguring actions of the region in a coordinate manner. Concern, Problem, or Gap to be Addressed – SDG&E does not yet have a control system infrastructure that is robust enough for the expected increases in power system complexity stemming from grid modernization. This program will pilot a distributed control unit that achieves the needed capabilities to support further advancement of SDG&E’s smart grid. Pre-Commercial Technology or Strategy Aspect – The distributed control system must be capable of processing a much larger amount of data coming from the various new devices and from widely deployed sensors and monitoring nodes that provide intelligence on system status. How the Program Avoids Duplication from Other Initiatives – Each utility will require its own control system approach, because the choice of smart grid features (components and system configurations) will differ from one utility to the next. The SDG&E control system pilot program will be synchronized to SDG&E’s smart grid architecture development, which is a parallel program. Prioritization: High Priority Program – Need a robust and adaptive control systems to manage an increasingly complex smart grid – Distributed control unit would be integrated into a hierarchical control system for SDG&E grid modernization – Control system algorithms must be able to coordinate and dispatch devices and circuit reconfiguring to respond to contingencies in a fast coordinated manner EPIC Primary or Secondary Principles Met Increased reliability and improved management of distributed resources Improved power system performance and lower operating costs Increased safety Societal benefits 22

24 SDG&E Proposed Program 3: Smart Distribution Circuit Technology or Strategy to be Demonstrated – This program seeks to improve outage restoration and regulation on circuits through intelligent and coordinated switching of strategically placed equipment. Concern, Problem, or Gap to be Addressed – The traditional and typical distribution circuit is managed by distribution operators, field personnel and scheduled or voltage-triggered switching of Load Tap Changers (LTCs), capacitor banks and regulators. While this traditional management scheme has sufficed for operations in the past, a more reliable and efficient distribution circuit is feasible by taking advantage of new communication and control technologies. Pre-Commercial Technology or Strategy Aspect – With the low resolution circuit load data and static circuit simulations available today, advanced control cannot be developed properly. This program would aim to upgrade distribution circuit power quality sensing and distribution circuit simulation to implement control algorithms that manage new and existing distribution equipment. How the Program Avoids Duplication from Other Initiatives – Each utility has a unique current situation. SDG&E is currently working on a few isolated programs to improve distribution circuits, moving from manual operation of devices to remote control. While the aforementioned programs make up the components required for a smart distribution circuit, SDG&E has not yet attempted to optimize the operation and coordination of the various smart components together. Prioritization: High Priority Program – This program focuses on optimizing the choices made for new components in smart grid circuits – This program provides a basis for circuit optimization to complement the other planned programs on architecture development and distributed control for the SDG&E smart grid EPIC Primary or Secondary Principles Met Increased reliability and more rapid restoration processes Improved power system performance and lower operating costs Increased safety Societal benefits 23

25 SCE Illustrative Programs Distributed Energy Storage (DES) Renewables and Distributed Energy Resources Integration - Integrate Distributed Energy Resources, Generation and Storage Safely and Reliably - Adaptive Protection Strategies; - Generation Transparency and Flexibility Substation Automation Grid Modernization and Optimization - Demonstrate Strategies and Technologies for Optimizing Assets - Prepare for Emerging Technologies - Design and Demonstrate Grid Operations of the Future Deep Grid Coordination Cross-Cutting/ Foundational Strategies & Technologies - Smart Grid Architecture - Cybersecurity - Telecommunications Standards

26 SCE Illustrative Program: Substation Automation Concern, Problem, or Gap to be Addressed – SCE’s “Substation Automation-3 (SA-3) Phase III” program would demonstrate the interoperability, automated configuration, configuration management, and security benefits of the SA-3 Phase II program on the bulk power substation and legacy automated distribution substations, as well as demonstrate an intelligent alarming system for substation operators. The goal is to enhance automation capabilities to allow remote control and monitoring and full integration of SCE’s substation and distribution automation programs, drive competition and innovation in the automation technology marketplace, ensure compliance with NERC/CIP standards, and enhance the ability of substation operators to make critical operation decisions. Technology or Strategy to be Demonstrated – The SA-3 Phase III program is a high priority for SCE due to NERC/CIP compliance requirements, potential obsolescence of up to 7,000 intelligent electronic devices (IEDs) in 350 substations over the coming decade, and the difficulty of making critical operating decisions while being overwhelmed by an avalanche of unfiltered alarms. This program will leverage successful strategies from SCE’s SA- 3 Phase II capital deployment and Common Cybersecurity Services (CCS) to demonstrate increased reliability, efficiency, and safety of bulk power and distribution substations. Pre-Commercial Technology or Strategy Aspect – This proposed demonstration program would help optimize existing automation investments by augmenting SCE’s ability to communicate with distribution automation programs and upgraded substations from Phase II of the SA-3 program. SCE’s substations will also be better prepared to integrate emerging technologies due to the IEC standard utilized for SA-3, and grid operators will benefit from improved situational awareness created by intelligent alarming. How the Program Avoids Duplication from Other Initiatives – Applying lessons learned from SCE’s Distribution Substation Automation program to bulk power Substation Automation. EPIC Primary or Secondary Principles Met Increased reliability Lower costs Increased safety Efficient use of ratepayer monies 25

27 SCE Illustrative Program: Deep Grid Coordination Concern, Problem, or Gap to be Addressed – SCE’s objective for its “Deep Grid Coordination” program is to provide and demonstrate mechanisms for reliable integration of customer owned distributed energy resources(DER) into the distribution network. The goal is to explore distribution system market designs that increase the value of customers’ DER investments and ensure, safe and reliable electricity supply is available to all customers at reasonable cost. Technology or Strategy to be Demonstrated – Building on the Irvine Smart Grid Demonstration program’s findings on how DER and ZNE impact the distribution network. The Deep Grid Coordination program would focus on how to manage customer owned DER to ensure distribution network reliability is maintained and both DER customers and IOUs are incented to work together to maintain the integrity of our electric grid. Given the pace of DER adoption and projected timelines for DER rate parity with tiered tariff rates, this is a high priority program. There are opportunities to leverage EPIC investment with DOE cost share. Pre-Commercial Technology or Strategy Aspect – This proposed research program would provide valuable and demonstrable methods that benefit the customers, the health of the electric grid and would serve as a guide to evolve the IOU towards participating in a DER future. This program would demonstrate additional value to customer’s investments in DER by using these assets to support grid operations, reliability and safety in and across areas of high DER penetration. How the Program Avoids Duplication from Other Initiatives – Applying lessons learned from SCE’s ISGD Demonstration program to DER and ZNE impacts on the distribution network. EPIC Primary or Secondary Principles Met Increased reliability Improved management of distributed resources Improved power system performance and lower operating costs Increased safety Societal benefits Efficient use of ratepayer monies 26

28 SCE Illustrative Program: Distribution Energy Storage (DES) Concern, Problem, or Gap to be Addressed – This program will validate reliability improvements that can be provided with higher penetration of DES when distributed strategically on a particular circuit, especially in instances where reliability of lower voltage circuits (e.g., 4kV circuit) are acute and often have limited solutions requiring full circuit revamps in most instances. It's expected when DES are aggregated and controlled as a fleet, the aggregated solution will provide substantial reliability improvements at the circuit level whether such circuits have high or low DER penetration. Areas of reliability improvements include VAR support, feeder relief, DER smoothing (with higher levels of DER penetration), and voltage regulation at multiple points along the circuit. SCE Planning and Engineering, Generation, ES&M, TP&S and TSD have all been consulted and are impacted by energy storage as it arrives on SCE’s grid (through PEVs) or is deployed (through grid-connected storage devices). Technology or Strategy to be Demonstrated – The utility industry has long been governed by the need to instantaneously match supply with demand; now with the integration of variable energy resources on the grid and the many regulatory drivers, including the CA Energy Storage OIR, it faces the challenges of utilizing new technologies, such as energy storage systems, and ensuring reliable, affordable, and safe electricity during periods of low, intermittent, or disrupted generation. Pre-Commercial Technology or Strategy Aspect – Not approving this program will impair SCE’s ability to understand the value of distributed energy storage systems such as CES, which was identified as one of the most promising storages option by SCE's strategic planning work. As large-format battery production scales up due to increasing numbers of PEVs and technology improvements, costs of energy storage systems should decrease dramatically. Thus, a larger number of applications could become economically viable within the next 5 to 10 years. This program leverages best practices and knowledge gained from the interconnection and operation of the CES unit under the CES & Controls Evaluation program and the ARRA-funded, ISGD Subproject 1. How the Program Avoids Duplication from Other Initiatives – When DES are aggregated and controlled as a fleet, the aggregated solution will provide substantial reliability improvements at the circuit level whether such circuits have high or low DER penetration. EPIC Primary or Secondary Principles Met Increased Reliability Lower Costs 27 Societal benefits Efficient use of ratepayer monies

29 Next Steps & Written Comment Feedback Additional Information Regarding Each IOU Plan Will Be Provided to Interested Parties. If you would like a copy of the Presentation, please send requests to: – SCE: – PG&E: – SDG&E: program-investment-charge-epichttp://sdge.com/regulatory-filing/3749/electric- program-investment-charge-epic Written Comments Due by October 4, 2012 – SCE: – PG&E: – SDG&E: Frank Goodman at 28


Download ppt "Electric Program Investment Charge Joint Investor Owned Utilities’ EPIC Administrators Webcast September 28, 2012."

Similar presentations


Ads by Google