Integrating Distributed Energy Resource into Grid Operations John Goodin Manager, Infrastructure and Regulatory Policy solarmarket PATHWAYS May 2, 2017

Approx. 5,400 MW BTM solar today The growth in renewables and distributed energy resources is transforming our energy supply portfolio and how the grid functions. 23,000 MW Approx. 5,400 MW BTM solar today 130 MW/Mo. Growth Rate System Peak Demand was 46,232 MW on July 27, 2016

The transforming grid is creating new challenges and opportunities. 2/15/2017 The transforming grid is creating new challenges and opportunities. CPS1 is evaluated on a rolling 12-month average.  Over the past few years, the rolling average has been declining as a result of some poor daily performances.  Thus, the CAISO need to take measures to improve daily performance on days with higher variability.

High-DER future provides opportunity to re-think the T-D interface for an integrated decentralized system. New control & coordination needed at the T-D interface If not controlled locally, DER variability is exported to the bulk system to be managed No assurance of dispatch feasibility past T-D interface How to structure roles & responsibilities of DSO & ISO at the T-D interface? Reliable, safe operation is essential Must work as a whole system to achieve policy objectives Must satisfy customer needs for choice, flexibility & resilience – the bottom-up drivers of change Retail Wholesale Strive to control DER volatility and variability locally by circuit and substation

What tools and information must be developed and shared? Industry must develop better short-term DER operational forecasting techniques and methods DSO develop robust distribution system control and protection enhancements-- DER Management Systems (DERMS) DSO communicate advisory information on grid conditions to DER Providers so that DER providers can submit feasible bids/schedules to the ISO ISO provide schedule information to DSO to assess feasibility and system impacts. DER provider inform ISO of resource limitations via updated schedules/bids or via outage management system. DER DSO ISO

How can we address these impacts to benefit the grid and achieve GHG goals? Integrate renewables with renewables; smart/sensing inverters Co-locate solar and storage to shape output and response Promote transportation electrification Leverage local and regional collaboration and operational diversity Enable distributed energy resources and flexible loads Develop fast, frequent autonomous load response Deploy dynamic and time-variant rates that align with the needs of the transforming grid Promote load shift and energy storage capabilities Encourage targeted energy efficiency measures