Big Changes Ahead - Regulatory Assistance ProjectNov 19, 2014 · Flywheel / capacitor Distributed...
Transcript of Big Changes Ahead - Regulatory Assistance ProjectNov 19, 2014 · Flywheel / capacitor Distributed...
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The Regulatory Assistance Project 50 State Street, Suite 3Montpelier, VT 05602
Phone: 802-223-8199www.raponline.org
Big Changes Ahead:Impacts of a Changing
Utility Environment
Jim LazarRAP Senior Advisor
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The Regulatory Assistance Project (RAP)
We are a global, non-profit team of energy experts.
We provide assistance to government officials on a broad range of energy and environmental issues.
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What is Changing?
• Increase in variable renewables
• Rate Design
• Increased value to fast-response resources
• Increased value to storage
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Here Comes the Sun!
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Solar Costs Continue to Decline
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Solar Installations Are Soaring
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The California ISO “Duck Curve”:Increasing solar means steep afternoon ramping.
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Teaching the Duck to FlyTen Strategies to Align Loads and
Resources
1. Targeted energy
efficiency
2. Orient solar panels
3. Use solar thermal
with storage.
4. Manage electric
water heat
5. Require new large
air conditioners to
include storage
6. Retire older inflexible power
plants
7. Concentrate rates into “ramping”
hours
8. Deploy electricity storage in
targeted locations
9. Implement aggressive demand
response programs
10.Use inter-regional exchanges of
power
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Not every strategy will be applicable to every utility.
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Teaching the Duck to Fly
Requesting Permission for Take-Off
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Utility System Benefits
These are most commonly considered by utilities.
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BUT:
- Most undervalue emission costs;- Many exclude or undervalue T&D benefits;- Most undervalue line losses and reserves;- Most exclude or undervalue risk benefits.
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Participant Benefits
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Utilities seldom consider non-electricity participant benefits; these can be very significant.
- Affects consumer willingness to pay;
- If ignored, many cost-effective measures may be omitted from utility programs.
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Societal Benefits
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Energy Efficiency
Water Efficiency
Renewable Energy
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Johnson Controls
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Changes in Rate Design
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• Fixed Charges: Going up.
• Demand Charges: Time-varying; Concentrated into fewer hours;
• Energy Charges: Time varying
• Real-Time Pricing: New opportunities
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Opportunities / Challenges
Great value to peak-load reduction
Energy management systems
Automatic load shedding
On-site storage
Thermal (AC)
Pumping controls and schedulingElectricity (Batteries)
Low off-peak prices
Displace some thermal loads?
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Building EfficiencyManagement Systems
Lighting controls
Thermostat controls
Process energy controls
Dispatch of pumps
Dispatch of thermal storage
Dispatch of electricity storage
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Thermal Storage – Air Conditioning
Ice and Chilled Water Storage Systems
$.02 - $.05/kWh to turn night into day
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Thermal Storage – Air Conditioning
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Rooftop Air: Ice Bear
Central Chiller: CALMAC
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Electricity Storage
Batteries: double-duty
• Battery Bank in UPS
• Electric Vehicles
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Battery
Grid-scale
Flywheel /
capacitor
Distributed /
demand-side
1000300100 3000 10000
100
1000
10000
10
CAES
Chilled Water /
Ice Thermal
Metal-air
Na-S
Flow
Lead-acid
Ni-CdEV
Li-ion
Zinc-air
H.P.
capacitors
H.P. flywheels
L.D. flywheels
L.D. capacitors
Cap
ital
co
st
pe
r u
nit
en
erg
y -
$/k
Wh
ou
tpu
t
Capital cost per unit power - $/kW
PSH
Thermal Storage Is Cheaper Than Electricity Storage
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Thermal Energy Storage Is More Efficient Than Electricity Storage
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% o
f E
nerg
y I
np
ut
Reco
vere
d
0%
25%
50%
75%
100%
Compressed Air Pumped StorageHydro
Batteries atSubstations
Air Conditioning
Heat Rejection
Loss reduction
Fundamentals
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Pumping Energy
Nearly all pumps operate between a low and high set point.
Pump Scheduling
Pump Dispatching
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Opportunities as Aggregators of System Flexibility Resources
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RAP Publications:Rate Design and Demand Response
• Dimensions of Demand Response
• Distributed Resource Distribution Credit Pilot Programs
• Distributed Resources and Electric System Reliability
• Distribution Costs Studies for Distributed Generation
• Charging for Distribution Utility Services: Issues in Rate Design
• Revenue Regulation and Decoupling
• Distribution System Cost Methodologies for Distributed Generation
• Standby Rates for Combined Heat and Power Systems
• Time-Varying and Dynamic Rate Design
• Rate Design Where AMI Has Not Been Fully Deployed
• Designing Distributed Generation Tariffs Well
• Coming 2015:
– MADRI Partial Service Tariffs – Q1 2015
– Rate Design for the Utility of the Future – Q2 2015
– Designing Standby Tariffs Q2 2015
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About RAP
The Regulatory Assistance Project (RAP) is a global, non-profit team of experts that focuses on the long-term economic and environmental sustainability of the power and natural gas sectors. RAP has deep expertise in regulatory and market policies that:
Promote economic efficiency Protect the environment Ensure system reliability Allocate system benefits fairly among all consumers
Learn more about RAP at www.raponline.org
Jim Lazar, RAP Senior Advisor