1. Distributed Energy Strategy - Solar PV
Patrick McCoy
May 4, 2017

2. Distributed Energy Resource Strategy
Drivers for distributed energy resource (DER) planning
Policies promoting distributed generation (DG) technology adoption by customers
AB 327 (2013) – Policy requiring distributed energy resource planning by utilities beginning in 2015
SMUD’s response was to develop a new department to focus on DER strategies that will guide SMUD’s DER planning efforts
Solar PV, electric vehicles, energy storage, energy efficiency, demand response, and integrated DER

3. Distributed Energy Strategy (DES)
ER&D
Grid Planning
Grid Operations
Customer
Rates
Resource Planning

4. Strategic Alignment for Guidance
Board Strategic Directives
SMUD Year Strategic Plan
Value Our Customers & Community
Financially Fit
Sustainable Future
Operational Excellence
Treasure Our Employees
Be Safe. Always.
Grid 3.0 Vision
Grid Modernization Strategy
Integrated DER Strategy
Rate Strategy
Energy Market Strategy
ER&D Strategy
10/18/2016
Strategic Development Committee

5. DER Strategic Outcomes
10/18/2016
DER Strategic Outcomes
The DER Strategy paves the way forward for SMUD to successfully deliver future value to our customers and community, in alignment with our corporate values and business model.
Provide Outstanding Reliability & Power Quality
Be Preferred Energy Services Provider/Advisor
Reduce Pressure on Rates
Contribute to Regional Carbon Reduction
Extends Access for All Customers
Engages customers with new products, services, and advice to help them reach their energy goals
Promotes grid reliability and power quality through the strategic deployment of DERs
Creates new value streams while reducing commodity costs and long-term grid investments
Delivers SMUD’s share of a low carbon energy future
Enables all customers to share in the value that more DERs on the grid would yield $
10/18/2016
Strategic Development Committee

6. Adoption/Dispersion Analysis Results
Cumulative Adoption by Circuit, with Individual System Locations (kW)

7. Distributed Generation/PV Strategies and Tactics
10/18/2016
Distributed Generation/PV Strategies and Tactics
Expand SolarShares Portfolio
Launch Integrated DER Solutions
Offer PV options to customers.
Determine Preferred Communication Pathway
Implement Smart Inverter requirement
Incorporate dispersion findings into Distribution Planning
Mitigate operational issues caused by high amounts of DG PV by enabling remote controls.
Partner with 3rd party for low income PV products
SolarShares for EAPR customers
Develop creative financing mechanisms for non-profit/community customers
Extend DG access to underserved markets through new products and flexible financing.
10/18/2016
Strategic Development Committee

8. Motivation for SolarShares
Expand customer access to low cost solar energy by leveraging SMUD’s strengths
Overcome limitations associated with:
Customer siting of PV
Customers in multifamily dwellings
Low income customers
Help customers achieve their renewable energy goals with a flexible alternative solar product
Develop new products to meet a wider spectrum of needs

9. SolarShares Product Development
One-size-fits-all approach does not adequately address customer demand
“Standard” product
kWh sales with fixed energy price
Contracts with variable terms and discounted pricing for longer terms
Customized products based on customer need
Additional products
Low income
Hybrid
New Community Development
Future products
Bundled with other products and services

10. SolarShares Product Development
New Community Development Concept – provide alternatives for new community developers to include solar energy

11. SolarShares Product Development
Hybrid Product Concept – address customer’s desire for visibility

12. SolarShares Resource Procurement
Resource portfolio development
Power Purchase Agreement (PPA) with 3rd party developers/owners
CAISO (in-state market)
BANC (regional market)
Local resource opportunities (SMUD service territory)
Tariff/pricing development
Policies and procedures
Fixed cost recovery
PPA price target
Program administration
IT automated billing project activities
Marketing and communications strategy
Customer relationship management

13. Thank You! Patrick McCoy Strategic Business Planner, Solar PV
Distributed Energy Strategy
Grid Strategy and Operations