2004 05 PRICE E3 CASE ST

Summary of On-going DG Studies: 

Summary of On-going DG Studies Snuller Price Energy and Environmental Economics, Inc. (415)391-5100

Agenda: 3 On-going Projects: 

Agenda: 3 On-going Projects Renewable DG Assessment CEC Pier Renewable Program Engineering and economic assessment of DG San Francisco DER Test-bed CEC Strategic Program Evaluation of real DG applications New York PSC DG RFP Pilot RFPs issued by New York utilities

Is DG Fundamentally Better than Our Current System?: 

Is DG Fundamentally Better than Our Current System? NOW DG Generation Delivery Customer Services Social Goals (Environment) Energy - More $ Capacity - More $ Combined Cycle Plant Combustion Turbine Wires Target Local Problems Waste Heat, Reliability Others Natural gas on the margin Technology Dependent

PIER RenewablesRDG Assessment: 

PIER Renewables RDG Assessment

Project Objectives: 

Project Objectives Develop economic and engineering screening methodology for renewable DG appropriate for municipal utility evaluations Methodology will allow investigators to: Identify best locations and timing for renewable DG Determine reliability impacts of renewable DG Assess impact of uncertainty of load growth and technology performance Identify potentially successful DG projects

Participating Utilities: 

Participating Utilities San Francisco Public Utilities Commission/Hetch Hetchy City of Palo Alto Utilities Alameda Power and Telecom Sacramento Municipal Utility District

Project Flowchart: 

Project Flowchart Economic Steps Avoided Cost Economic Screening Uncertainty Engineering Steps Circuit Model Capacity & energy value Reliability FEEDBACK

Look for Win-Win Applications: 

Look for Win-Win Applications Community perspective Total Resource Cost Test (TRC) Generator owner Participant Cost Test (PCT) Utility Customers Ratepayer Impact Measure (RIM) Impact on rates, operating margin Utility owned DG project Utility Cost Test (UCT) Societal cost test Broad societal evaluation including ‘soft benefits’

Example Results500kW Biodiesel: 

Example Results 500kW Biodiesel

Soft Benefits Approach: 

Soft Benefits Approach Qualitative benefits of RDG project Structured approach to developing potential list of ‘soft benefits’ Allows analysts to assess relative magnitude of benefits Management Decision Question Do the qualitative ‘soft benefits’ overcome the financial gap from the economic screening analysis?

RDG Engineering Screening: 

RDG Engineering Screening Objective of this analysis is to determine impact of RDG on the timing, magnitude and location of constraints in the electric distribution system Alameda w/ 2MW Dispersed PV

Optimal / Least Optimal RDG Siting: 

Optimal / Least Optimal RDG Siting Optimal Capacity Locations Least Optimal Capacity Locations Optimal 100kW Siting Based on Losses

Reliability is Addressed Using 3 Approaches: 

Reliability is Addressed Using 3 Approaches Estimate direct financial benefit to the community using Value of Service (VOS) Benefit updates the cost / benefit analysis Estimate the deferral value of project delayed because projects are delayed Only provides a value if there are planned investments Compute the number of years of improved reliability based on the EEN analysis

Slide14: 

Example Engineering Reliability 6MW 10,000 MWh EEN

Uncertainty Analysis Factors: 

Uncertainty Analysis Factors Vary the following inputs to test sensitivity: Wholesale Energy Costs Transmission Costs Distribution Avoided Costs RDG Capital Costs Results of this analysis allow for robust decision-making based on RDG recommendations using this methodology

Example Sensitivity Analysis: 

Example Sensitivity Analysis

San Franciscoas a Distributed Energy Resource ‘Test-Bed’ Site: 

San Francisco as a Distributed Energy Resource ‘Test-Bed’ Site

Project Objectives: 

Project Objectives Identify and verify the economic and engineering impact of DER on the SF distribution system Take advantage of both planned and existing DER installations in the test-bed area Pursue a fair assessment of DER / grid interactions Provide documented results for this real-world study of DER

About the Researchers: 

About the Researchers M-Cubed DER customer interface, project coordination Energy & Environmental Economics, Inc. Economics of DG, Load research analysis Electrotek Concepts Metering and engineering analysis

Research Partners: 

Research Partners California Energy Commission Pacific Gas & Electric Company San Francisco Public Utilities Commission / Hetch Hetchy Private DER Owners Technology Vendors

Project Plan: 

Project Plan Planned Project Phases Anticipated Results Phase 1: Economic Analysis & Marketing Plan Development 1. Appropriate Technologies 2. Project Approach Phase 3: Evaluation and Reporting 1. Cost/Benefit Analysis 2. Case Study 3. DR Primer Phase 2: DER Implementation & Load and System Results Monitoring 1. Load Profile Impact 2. Cost Impact 3. Participant Feedback

San Francisco Study Area: 

San Francisco Study Area Map of the south-east SF with study area highlighted

Stylized Feeder Load Research Plan: 

Stylized Feeder Load Research Plan Four Types of Metering Points Sub DG DG DG EE EE Substation Interval Data Whole Customer Interval Data Historic and Current Description of EE Measures DG Interval Data Whole Facility Interval Data Description of DG Installations Power Quality Meter We Have Budget for 2 Meters 1 2 3 4

Research Goals: 

Research Goals Characterize the impact of DER on the distribution system in a real-world setting by addressing: DER market questions Engineering questions Load research analysis questions Provide information geared to utility engineers and planners on the real-world economic and engineering performance of DER.

NYS PSC DG RFP Pilot: 

NYS PSC DG RFP Pilot

Goals of the PSC Order: 

Goals of the PSC Order Develop policies and procedures for integrating DG into utility planning process. Determine if DG can meet utility needs Develop case-specific info on DG costs, benefits, and impacts across a range of distribution system conditions Refine methods for evaluating DG against wires Determine if RFP process is viable and optimal method Issued in 2001 with evaluation in three years

High Level Findings on Local Value of DG : 

High Level Findings on Local Value of DG There are areas on the utility distribution system where DG may provide value The set of requirements that DG has to meet to maintain reliability are significant

Local Planning Problem: 

Local Planning Problem Expected Growth Existing Capacity New Transformer Additional DG Unit MW Years Reliability of DG capacity is critical

Discrete Value of Deferral: 

Discrete Value of Deferral Plot shows total value of deferral corresponding to a specific load reduction. Allows assessment of whether sufficient DR could be implemented to affect a real change in investment timing.

DG Requirements Checklist: 

DG Requirements Checklist interconnected at the right location and voltage interconnection study approval to the site equivalent reliability / redundancy dispatch / communication with 3rd party 30 minute timeframe sufficient capability to meet forecast uncertainty problem for contract term financial stability of vendor business focus of vendor