DER-VET Task Force - EPRI

© 2020 Electric Power Research Institute, Inc. All rights reserved.www . ep r i . c om

Ram Ravikumar | EPRISuma Jothibasu | EPRIMiles Evans | EPRIGiovanni Damato | EPRI

November 5, 2020

DER-VET Task ForceESIC Working Group 1: Grid Services and Analysis

© 2020 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m2

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© 2020 Electric Power Research Institute, Inc. All rights reserved.www . ep r i . c om

Ram Ravikumar | EPRISuma Jothibasu | EPRIMiles Evans | EPRIGiovanni Damato | EPRI

November 5, 2020

DER-VET Task ForceESIC Working Group 1: Grid Services and Analysis


Agenda

§ Announcements§ Implementation of Solar PPA Cost Calculation§ DERVET– External Software Integration Scenario Analysis

– Distribution analysis with OpenDSS


Solar Power Purchase Agreements (PPAs)

§ A Solar PPA is a bilateral financial agreement between a customer and a PV project developer (3rd party), in which the developer facilitates the design, financing and installation of a PV system at the customer’s location for a cost

§ The solar PPA cost is typically calculated based on the annual PV generation profile (kWh) on a ($/kWh) basis

Advantages to the customer:§ No upfront capital cost required§ Developer is responsible for guaranteeing PV system performance § Long-term “Predictable” energy price as compared to utility rates§ Maximize tax credits


Role of Various Stakeholders in a Solar PPA Arrangement

Utility

Customer

PV Developer(3rd party)

Regular Electric service provided

Excess kWh can be exported (if on NEM tariff)

Provides PV Energy

Payment for PV Energy @ PPA Cost

Note: There are multiple DER ownership models that can be modeled in DER-VET. The solar PPA model is one of them.


Solar PPA Modeling in DER-VET

§ The annual solar PPA cost in DER-VET is calculated based on:vAnnual PV Production (kWh)vPPA Cost ($/kWh)vPPA Cost Escalation Factor (if any)

For a given year,

Annual PPA Cost ($) = Annual PV Production (kWh) * PPA Cost ($/kWh)

Note: PV system degradation can also be included in the model


Use Case Description

§ A Commercial customer installs a co-located PV+ES system with the objective of bill reduction (energy cost & demand charges)

§ Customer is subjected to a NEM tariff§ ES and PV sizes are predefined§ ES owned and operated by the customer§ PV operated by the customer. Owned by a 3rd party developer.

Customer pays the 3rd party developer an annual cost as defined by the PPA


Load Profile and Utility Tariff

0

50

100

150

200

250

300

117

334

551

768

986

110

3312

0513

7715

4917

2118

9320

6522

3724

0925

8127

5329

2530

9732

6934

4136

1337

8539

5741

2943

0144

7346

4548

1749

8951

6153

3355

0556

7758

4960

2161

9363

6565

3767

0968

8170

5372

2573

9775

6977

4179

1380

8582

5784

2986

01

Load

(kW

)

Season On Peak Mid Peak Off Peak

Winter - $0.062/kWh $0.054/kWh

Summer $0.262/kWh $0.086/kWh $0.049/kWh

Season All Periods

Summer & Winter $7.016/kW

Energy Charges:

Demand Charges:


DER Specification

Parameter Value

PV Nameplate Rating 250 kW

Annual PV Degradation 0.5%/year

Parameter Value

ES Size 250 kW, 500 kWh

ES RT Efficiency 85%

ES Cost $100/kW + $500/kWh

ES Technology Escalation Rate -5%/year

No. of ES replacements 1 (Year 9)

PV Specification:

ESS Specification:


Financial AssumptionsParameter Value

Project Analysis Horizon 10 Years

Inflation 2%

Discount Rate 5%

Solar PPA Cost $0.07/kWh (Year 1)

Solar PPA Escalation Rate 2%/year


Load Profile Comparison (January)

-150

-100

-50

0

50

100

150

200

250

3001 11 21 31 41 51 61 71 81 91 101

111

121

131

141

151

161

171

181

191

201

211

221

231

241

251

261

271

281

291

301

311

321

331

341

351

361

371

381

391

401

411

421

431

441

451

461

471

481

491

501

511

521

531

541

551

561

571

581

591

601

611

621

631

641

651

661

671

681

691

701

711

721

731

741

kW

Original Load Net Load

Peak shaving due to demand charge reduction

Net power export to the grid


Pro Forma ResultsYear Avoided Bill ES CAPEX ES O&M ES Replacement ES Salvage Value Solar PPA Cost

Year 0 $0 ($275,000) $0 $0 $0 $0

Year 1 $44,745 $0 ($2,676) $0 $0 ($27,726)Year 2 $43,614 $0 ($2,764) $0 $0 ($28,139)Year 3 $43,345 $0 ($2,802) $0 $0 ($28,558)Year 4 $42,493 $0 ($2,839) $0 $0 ($28,984)Year 5 $41,580 $0 ($2,875) $0 $0 ($29,415)Year 6 $41,049 $0 ($2,913) $0 $0 ($29,854)Year 7 $40,265 $0 ($2,953) $0 $0 ($30,299)Year 8 $40,080 $0 ($2,994) $0 $0 ($30,750)Year 9 $42,764 $0 ($3,166) ($182,441) $0 ($31,208)

Year 10 $42,145 $0 ($3,238) $0 $99,039 ($31,673)

Annual bill savings reduces with time due to PV and ES degradation


Cost Benefit Analysis

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

ES Capital ES O&M ES Replacement PV Solar PPA

Cost Benefit

Avoided Bill ES Salvage Value

Project Analysis Horizon: 10 yearsDiscount Rate: 5%Inflation Rate: 2%


1. DERVET Analysis + Distribution analysis to study grid impacts§ DERVET optimizes size and DER dispatches§ Provide DERVET output to distribution power flow software (OpenDSS)

2. Distribution analysis to study grid impacts + DERVET Analysis § For a given DER size, find DER dispatch limits to avoid grid violations§ DERVET optimizes DER dispatches within grid specified limits

DERVET External Software Integration - Distribution Analysis


§ DERVET Data Input– Peak load ~2.5MW– Energy storage - 2 MW 6 hr– Utility tariff rate/Market structure– DERVET objective:

§ Maximize customer bill reduction

1. DERVET + Distribution Analysis - Software Integration

0

500

1000

1500

2000

2500

3000

131

462

794

012

5315

6618

7921

9225

0528

1831

3134

4437

5740

7043

8346

9650

0953

2256

3559

4862

6165

7468

8772

0075

1378

2681

3984

52

Feederhead kVA Profile

Summer Winter Demand ChargeOn Peak Mid Peak Off Peak Mid Peak Off Peak

$0.262392/kWh $0.086152/kWh $0.049672/kWh 0.062392/kWh $0.054152/kWh $7.016/kW



§ DERVET Data Output– ES dispatch optimization to max bill reduction benefits

-5-4-3-2-101234

AvoidedDemandCharge

AvoidedEnergyCharge

BATTERY:es Capital

Cost

BATTERY:es Fixed

O&M Cost

LifetimePresentValue

Millions

Net Present Value on a 20 Year Analysis Horizon

-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500

133

867

510

1213

4916

8620

2323

6026

9730

3433

7137

0840

4543

8247

1950

5653

9357

3060

6764

0467

4170

7874

1577

5280

8984

26Pow

er (k

VA)

Case1: es Power (kW)

Case1: es Power (kW)


§ Distribution Analysis- Time series power flow analysis– Inputs

§ Circuit model § Load profile for each load§ DER sizes and DER dispatches

– Outputs§ Excel files output

– Violation report csv files

1. DERVET Optimization + Distribution Analysis

Substation

IEEE 123 Bus Test Feeder – 4.16kV


Distribution Analysis is Location Specific

ES

ES

Feeder head

Feeder end


Voltage profile is within limits for all three cases

§ Min and Max Voltage across the feeder

Distribution Grid Impacts – Without and With ES

0.9

0.92

0.94

0.96

0.98

1

1.02

1.04

141

983

712

5516

7320

9125

0929

2733

4537

6341

8145

9950

1754

3558

5362

7166

8971

0775

2579

4383

61

Basecase

"Min Voltage" "Max Voltage"

0.92

0.94

0.96

0.98

1

1.02

1.04

138

276

311

4415

2519

0622

8726

6830

4934

3038

1141

9245

7349

5453

3557

1660

9764

7868

5972

4076

2180

0283

83

End of the Feeder ES


0.9

0.92

0.94

0.96

0.98

1

1.02

1.04

138

276

311

4415

2519

0622

8726

6830

4934

3038

1141

9245

7349

5453

3557

1660

9764

7868

5972

4076

2180

0283

83

Feeder Head ES



Few Dx lines are overloaded when ES is at Feeder end

§ Line overload analysis

Distribution Grid Impacts – Without and With ES

Basecase ES at Feederhead ES at Feeder end

Because of new generation, there is overload at some lines. Line rating = 200A. With ES Line current is overloaded by 38%


§ Distribution Analysis- Time series power flow analysis– Inputs

§ Circuit model § Load profile for each load

– Outputs§ Hosting capacity§ time-series charge and

discharge limits

2. Distribution Analysis+ DERVET Optimization

Substation

IEEE 123 Bus Test Feeder – 4.16kV


§ DERVET Data Input– Peak load ~2.5MW– Energy storage - 2 MW 6 hr– Utility tariff rate/Market structure– Time-series charge and discharge limits– DERVET objective:

§ Maximize customer bill reduction


-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500

3000

131

462

794

012

5315

6618

7921

9225

0528

1831

3134

4437

5740

7043

8346

9650

0953

2256

3559

4862

6165

7468

8772

0075

1378

2681

3984

52

Site Load (kW) ES max limit ES min limit


§ DERVET Data Output– ES dispatch optimization to max bill reduction benefits

Case 1 and 2 Comparison

-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500

130

460

791

012

1315

1618

1921

2224

2527

2830

3133

3436

3739

4042

4345

4648

4951

5254

5557

5860

6163

6466

6769

7072

7375

7678

7981

8284

85Pow

er (k

VA)

Time series profile

Case1: es Power (kW) BATTERY: es Power (kW) ES max limit ES min limit

-5-4-3-2-101234

AvoidedDemandCharge

AvoidedEnergyCharge

BATTERY:es Capital

Cost

BATTERY:es Fixed

O&M Cost

LifetimePresentValue

Millions

Net Present Value on a 20 Year Analysis Horizon

Case1 Case2


Energy storage – With Other DERs

Detailed Analysis is required in the presence of other DERs

PV Irradiance profile and Energy storage charge and discharge limits for a year starting with January


Together…Shaping the Future of Electricity

DER-VET Task Force - EPRI

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