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ACEEE Market Transformation Symposium

Market Transformation and the Distribution System Grid

David Dobratz, Eversource Energy In Collaboration with

Ryn Hamilton, Ryn Hamilton Consulting

March 2016

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Market Opportunities

Slide 2

Battery Storage

Automation Controls Solar PV

The advent of new forms of demand response – including ultra-fast responding DR, AutoDR and enhanced DR controls – will fill an important enabling role for the emerging distributed energy prosumer1.

q  Increasing penetration of solar PV is leading the way for consumers to take on a new role as producers of power

q  Storage coupled with distributed resources can provide a flexible platform for managing distribution system imbalances and other problems

q  Automation creates greater resource reliability, speed and ease of use

1 A prosumer is at various times a producer and a consumer of power.

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Market Opportunities

Slide 3

FERC Order 745 supports the potential for demand resources to provide essential products and services in ISO/RTO markets.

q  Order 745 creates opportunities for demand response to provide ancillary services such as voltage regulation and operating reserves

q  This is possible because of technology advances that include rapid two-way communication, enhanced metering, optimization controls and automated dispatch

q  This will contribute to more responsive, resilient and interconnected grid

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Distribution System Management

Slide 4

Give me vars!

Voltage Control Please!

Match my load!

q  Clusters of solar PV drive up local voltage levels when power is pushed onto the grid

q  Power imbalances occur as a result of steep load profiles due to the intermittent nature of solar PV

Duck Curve! q  Over-supply of solar

PV in the mid-day

q  Steep ramp-up of need for grid power the evening

Utilization of targeted forms of demand resources can help utilities improve management of their electric distribution systems.

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Potential Pilot Objectives

q  Identify advanced new demand response technologies, capabilities and practices including:

-  Connected equipment, energy management and analytic systems

-  Advanced thermostat controls for HVAC systems

-  Advanced/Smart energy management systems (AutoDR)

-  Sensing, feedback and use of algorithms

q  Control building performance holistically to minimize energy use and cost

q  Determine what technologies are needed for demand response to successfully meet new ISO-NE rules put in place to comply with FERC Order 745

Slide 5

Assess new demand response technologies and practices to better manage the utility distribution grid.

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Potential Pilot Design

q  Small Business: Combine inexpensive computerized

“thermostat” with smartphone app control

q  Mid-Market: Combine solar, storage and demand response to deliver peak load relief, voltage control, power factor support and to correct for grid impacts of distributed energy resources

q  Large Facilities: Augment building controls to improve load duration curves and reduce billed demand; leverage knowledge that is acquired to elicit additional behaviors-based load reductions strategies

Slide 6

Approach for Three Customer Segments:

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Potential Pilot Hypotheses q  Small Business: Utilization of advanced thermostat controls in

buildings with multiple zones will cost effectively reduce summertime peak demand by10-15% without impacting thermal comfort.

q  Mid-Market: q Remote management of Advanced Function Inverters can improve

voltage stability at on-site solar PV locations and mitigate the impact of solar PV output variability on distribution circuits.

q Advanced Function Inverters coupled with on-site solar PV can improve voltage stability however, the addition of Energy Storage coupled with Advanced Functioning Inverters provide higher levels of voltage stability.

q  Large facilities: Targeted controls will not only modify load duration curves and reduce billed demand, but produce additional customer behaviors that influence loads.

Slide 7

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Demand Resources and DER Mitigation

Slide 8

Conditions & Strategies q  Local overvoltage: Smart Inverter q  Var support: Smart Inverter q  Mid-Day Duck Curve (over-

production from solar PV): Charge Storage

q  Evening Duck Curve: Discharge Storage

Demand Response Asset Load

Highly targeted forms of demand response can dramatically improve the management of electric distribution systems.

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Integration and Operational Controls

Slide 9

q  Volts q  Power Factors q  kW Static q  kW Change Rate

q  Volts q  Power Factors q  kW

Feeder Meter

Facility Meter

q  PV output – kW q  Storage output – kW q  Storage charge - kWh

PV and Storage Metering

Direct the PV energy to serve either load or storage Discharge storage? Inverter operations: q  Voltage output q  VAR output Dispatch demand response assets?

Inputs Automation Outputs

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Market Transformation Dynamics

Slide 10

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Market Transformation Dynamics

Technology Phase Barriers Opportunity

Solar PV Commercial Growth (past chasm)

Negative impact on grid conditions (over-voltage and duck curve issues)

Zero emission power supply, greater volumes continue to reduce cost

Smart Inverters Commercial Growth (before chasm)

Cost, feedback controls add complexity

Conditioning of PV and storage power to stabilize grid

Battery Storage Commercial Growth (before chasm)

Cost (most important) and controls that add complexity

Ability to mitigate over-supply and steep evening ramp caused by solar PV

Integrated Systems (PV, Inverters, Storage)

Commercial Introduction

Complexity of grid integration, lack of architecture rules from FERC

Increases effectiveness of storage and solar PV running independently

Slide 11

Barriers and Opportunities

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Questions

David Dobratz P.E., CEM Supervisor – Energy Efficiency Eversource 107 Selden Street | Berlin, CT 06037 860.665.4773 David.Dobratz@Eversource.com

Ryn Hamilton Ryn Hamilton Consulting 45 Fayette Street, #1 Cambridge, MA 02139 617.461.7200 ryn@rynhamiltonconsulting.com www.rynhamiltonconsulting.com