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Leveraging Market Input in Energy Policy
Air & Waste Management Association Annual Seminar Dennis Elsenbeck Director, Stakeholder Engagement and Policy
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Engaging in the Energy Landscape
Social & Economic Pressure on Central Power Plants Electric Transmission Congestion Natural Gas Transmission Access Reforming the Energy Vision (REV) Alignment with Connect21 Demonstrations Fruit Belt Neighborhood Solar Potsdam Resiliency Clifton Park Convenience 50% Renewable Energy Target by the 2030
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Regulatory and Legislative
Reforming the Energy Vision (PSC) Defining the “Utility of the Future” Utility acts as a platform for products and services Promote Renewable Energy Move from Centralized Generation Distributed System Implementation Plan Renewable Supply 50/2030 (NYS) Currently we are Supply Rich What Drives the Model – Economic Sustainability Roof Top versus Large Scale
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Current Utility Structure
Privately Held Utility Ownership Market
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What is REV? REV Track One REV Demos NMPC Rate Case DSIP REV Track Two
Utility as a “Distribution System Platform (DSP) Provider” Facilitate DERs Order – 2/26/15 REV Demos Test Business Models NG has Four Demonstrations Filed and in Development Business Transparency NMPC Rate Case Filing 4/2017 Incorporates Track 2 Includes DSIP Costs Includes New Earnings Opportunities DSIP Physical Planning Utilities ID Immediate System Changes Includes AMI Filed – 6/30/205 REV Track Two Reform Utility Business Models Revenue Streams to Align Financial Incentives with Optimizing DERs Order 5/19/16 BCA Framework Economic Framework Alternative Investments Economic & Environmental Filed – 6/30/16
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BNMC 2011 Energy Plan Mutually define and implement the global standard for an efficient, modern, high-quality, and customer-driven energy platform Health + Energy Innovations Cost-Cutting Energy Efficiency Alternative Energy & Transportation Foster Local Economic Growth Sustainability innovation Solutions tailored to the local assets and needs Partnership and collaboration Long-term financial strength for all partners Ability to replicate elsewhere Holistic, systems approach Opportunity areas Supporting pillars Community Learning Hub Developing Smart should view a more holistic strategy Develop your vision Understand opportunities and what supporting pillars are in play
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BNMC Energy Activity to Date
Off Grid Wind & Solar Lighting Potential Parking Lot Solar Project 25 Electric Vehicle Charging Stations Installed Campus-wide Installed Solar Grid Modernization Study In-Progress Stage 2 Micro Grid Study Application Bike & Car Share Program In Place eThink Energy Center Distributed System Platform Demonstration Fruit Belt Neighborhood Solar Demonstration
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National Grid REV Demonstrations
Buffalo Niagara Medical Campus Determine Market Value Value of Feeder Focused? Avoided Infrastructure Capacity & Quality Relief Promote Underserved Market Impact on Bad Debt Value of “D”? DSP – Local ISO Infrastructure Offset Price Distributed Resource Flex Blue Sky & Resilience Fruit Belt “Neighborhood” Solar LMI Utility Ownership Multiplier System Impact BNMC DSP Value of “D” Unlocking DER Potential Test Platform of “POC” Vendor Partner Alignment Under NY’s Reforming the Energy Vision Proceeding, the PSC requested utilities to put forth demonstrations; there are four approved. Fruit Belt Neighborhood Solar Spur solar interest in an underserved market which is low to moderate income while also testing for impact of solar on distribution efficiency Distributed System Platform The DSP will be the distribution systems version of the Independent System Operator and will establish pricing signals based on LMP + D + E and will test whether or not pricing signals will spur investment in alternative investments to tradition utility infrastructure.
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Focused Feeder Test
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The Role of the DSP and DSIP
Consider diverse and distributed energy resources Coordinate with ISO and bulk systems Integrate market and operations drivers in forecasts DSP Integrated System Planning Market Operations Grid Operations Operate in a secure, reliable and resilient manner Increase system flexibility in a dynamic environment Implement economic and energy efficient solutions Fundamentals of the Distributed System Platform integrates System Planning, Grid and Market Operations Provide rich information for consumers and suppliers in a transparent fashion Utilize new technologies and develop innovative products and services
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BNMC “Distributed Energy Resources”
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DSP Demonstration Price Event Interaction
Looking left to right; the Distribution System is integrated with the Distributed System Platform; if there is an event; either to take advantage of blue sky supply and demand price signals, a capacity constraint or an opportunity to offset infrastructure investment, the DSP will develop the price, communicate with the Points of Control and the Points of Control will interact with the various distributed energy resources to satisfy the need identified by the DSP; either in the form of supply or demand reduction. The demonstration will monitor and validate all information to ensure that the history of the events and responses are captured under the various event conditions.
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DSP Demonstration Services
DSP services and expected distributed energy resource response examples are captured on this slide which will be tracked in terms of frequency, price and response based on constraints and operating characteristics of the individual facilities on the campus.
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BNMC Market Input BNMC Campus Institutions City of Buffalo
Allentown Neighborhood Fruit Belt Neighborhood Stakeholder Feedback Loop Stakeholder Management Plan BNP Energy Policy Advocacy Public Officials Vendor Partners End Use Participants Community Groups Innovation Plan Grid Mod Study energizeBNMC NG REV Demo NY Prize Thermal Load Study National Fuel
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National Grid REV Demonstrations
Determine Market Value Potsdam Clifton Park Value of Resiliency? Residential Small Business Municipalities; Services Large Commercial Value of Information? 12,000 Customers ESCo Peak Incentives Information Advanced Meter Functionality Resiliency Area System Exposure Aligned DG Assets Community Partnership Infrastructure Demand Reduction Energy Insights Smart Appliances Peak Reward Choice & Control Clifton Park Automatic meter functionality; customer convenience in terms of information and ability to respond to price signals; incentives paid for peak load relief. Builds off the Worcester Pilot; we need an engaged community. Potsdam Harnessing existing generation and underground system investment holistically in a manner that enhances resiliency; will assist in determining the benefit and cost of resiliency from a residential, commercial, life sciences, municipality and small business perspective. Do we know what our Customer’s value? We better!
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River Bend/South Buffalo Survey
Collaboration UB and BNP – Survey Leads 120 Market Participants Study Alignment 3,000 Acres (River Bend is 120 Acres) Remediated Brown Fields Smart Growth REDC Priority Focus External Validation The Voice of the Market
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River Bend/South Buffalo Survey
1,473 KW 10,000 KW 35,000 KW 9 KW 175 KW 673 KW Forecasted Demand Future state (3-5 yrs) Leverage Infrastructure Municipalities & Utilities Current Electric Design $75 Million Employ Integrated Resource Planning Renewable Energy’s Role 32 mW of Installed Wind 6 mW of Planned Solar Net Zero Building 150% GROWTH!
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Value of Distributed Energy Resources
$ Investment Balance Supply Demand Distribution Evolving Pricing Model Valuation LMP + D + E Location Marginal Price Value of “D” (Offset) Value of “E” (Credit?) SUPPLY DEMAND DISTRIBUTION
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Integrated Resource Plan “Balance! A KW by Any Other Name is a KW”
Supply Central or Local Renewable Energy Source Wind Solar Bio Hydro Co-Generation District Htg/Clg Delivery Age of Infrastructure Size to Supply Size to Consumption Prep for the Future? Overhead – Underground Voltage Diversity Reliability & Power Quality Demand Demand Response Energy Efficiency Energy Management Peak Shaving Ice Storage Human Behavior Usage Pattern Vehicle of the Future B A L A N C E Storage!
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Alternative Fuel Transportation
“Smart Planning” Power Quality Optimize Technology Integrated Resource Plan – REV Options Market Driven Solutions Sustainability Studies Network Plans Land Use Plans Policy Legislative and Regulatory Leverage Investments Leader in Smart Design Community Solar Car & Bike Share Storage Net Zero Building Wind & Solar DR Alternative Fuel Transportation
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Stakeholder Plan
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Market Input Challenge
Technology Adaptive to New Application Innovation Policy Regulation Legislation Who Pays? Market Place Market Perception Market Acceptance Market Demand Policy Technology Market Place
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Leveraging an Energy Hub
eThink Energy Innovation Participants National Grid Integrated Resource Plan Holistic Energy Engineering Regional Priorities Energy Policy Objectives Network Strategy Law Engineering Business Energy Advocacy Positions UB Smart Growth Integration
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“German cabinet puts brakes on clean energy transition”
Avoiding the Wall “German cabinet puts brakes on clean energy transition” September 6, 2016 – Richard Fuchs “How Ontario’s pursuit of renewable energy broke the provinces electricity system” October 6, 2016 – Terence Corcoran “Subsidies in the wrong places skew Renewable Energy’s Power” May 3, 2016 – Joseph Aldy
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Next Steps Solve the Three Legged Energy Stool
Technology, Market Demand and Policy Market need to refine its VOICE! Co-Develop Sustainable Models Environment & Economic Alignment Exercise the Academic Community Engineering, Business, Law and Environmental Schools Develop Objective Proof Points Leverage Available Investments!
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