EPRI Integrated Grid Framework Task Force on Energy Supply NCSL Summit August 2, 2015

Jeffrey D. Roark Technical Executive, EPRI

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The Landscape – Most new generation connecting at grid “edge” – The “edge” is the distribution system – Distribution has least amount of utility visibility/control

Distributed Energy Resources (DER) Combined Heat & Power Demand Response Home Energy Management Rooftop Solar Energy Storage Electric Vehicles Large-Scale Solar

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Challenges for Utilities – – – – –

Accommodate disruptive innovations Improve efficiency Incorporate demand response Increase resiliency The list goes on…

Distributed Energy Resources (DER) Combined Heat & Power Demand Response Home Energy Management Rooftop Solar Energy Storage Electric Vehicles Large-Scale Solar

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This Dynamic Power System Requires an End-to-End Integrated Approach

An Integrated Grid

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EPRI’s Integrated Grid Initiative

3002002733 3002004878

At EPRI.com, search for the complete number: 300200xxxx 5 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Integrated Grid Methodology The Integrated Grid’s benefit-cost framework contains both bulk system and distribution system elements. Distribution System Hosting

Energy

Capacity

Reliability Benefit/Cost

Scenario Definition Market Conditions

DER Adoption

System Cost Changes

System Assumptions

Bulk System Integrated Grid Bulk System Analysis Framework

Resource Adequacy Existing Generation

Resource Adequacy

LOLE/ Reserve Margin & Capacity Credit

System Flexibility Assessment

Flexibility Metrics

Resource Epxansion

Load Forecasts

Variability Profiles

Hosting Capacity PV & Demand Profiles (See Fig. 5.3)

Transmission Performance

New Resources/ Expansion Plan

Costs of new resources

Cost of Base Case

Resource Dispatches

Technology options

Transmission Expansion Operational Simulations

DER Scenarios

Flexibility

Reserve & Operational Changes

Existing System Model(s)

Transmission Expansion

Existing Network Model

Frequency Impacts

New Reserve & Operational Modes

Reliability Impacts

Production Costs & Marginal Costs

Costs of mitigation/ upgrades

Transmission System Upgrades

Line Type Legend Data Input Final Result Feed-Forward Result Feed Back Result

Operational Practices & Simulation Transmission System Performance Studies

Thermal / Voltage Impacts

PQ & Protection Impacts

Cost of Losses

Cost of Scenario

Losses

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Societal Costs/Benefits Customer or Owner Cost/Benefits

Features of the Benefit-Cost Framework  Comprehensive: Can include any quantifiable impacts from distribution to bulk system, with or without externalities  Flexible: Designed to address a variety of economic questions from a variety of perspectives – Can adopt  a utility-planning perspective for guiding decisions, or  a broader societal perspective for policy implications

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EPRI’s Benefit-Cost Framework

Distribution  System  Impacts Bulk  System  Impacts

Customer  Impacts

Societal Impacts

• Net Capital Cost Changes • Net O&M Cost Changes

Change in Utility Cost 

(Avoided less Incurred)

(The Utility‐Cost  Function)

• Net Capital Cost Changes • Net Fuel/O&M Changes (Avoided less Incurred)

• Reliability Improvement • Resiliency Improvement • Customer Equipment Cost

Monetization  Protocols

Direct Customer  Benefits

• Reduced/Increased Emissions • General Economic Effects

Monetization  Protocols

Societal  Benefits

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Net Societal  Benefits

Steps to Apply Cost-Benefit Framework Formulate Question

Define Scenarios and Assumptions

Evaluate Scenarios Using Benefit - Cost Framework Compare Scenarios and Identify “Best” Option The economic and technical questions for the framework are not pre-configured. 9 © 2015 Electric Power Research Institute, Inc. All rights reserved.

EPRI’s Integrated Grid Initiative

3002002733 3002004878 3002006692

At EPRI.com, search for the complete number: 300200xxxx 10 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Capacity and Energy in the Integrated Grid  Are we becoming capacity-inefficient and capacity-scarce while becoming energy-efficient and energy-abundant?  The Capacity and Energy report describes: – How individual resources may contribute differently to the system’s capacity to deliver energy – How changing supply and load characteristics make it necessary to distinctly address both energy and capacity on wholesale and retail levels – The cost of capacity, based on an assessment of cost structures of several U.S. utilities – Emerging trends in wholesale markets and retail rate structures to value capacity and energy as distinct elements of those structures – Key research to enable DER to provide both capacity and energy 11 © 2015 Electric Power Research Institute, Inc. All rights reserved.

A Week in the Life of a Solar-Powered Home Receiving power from the grid

Sending power to the grid

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Utilities have high levels of fixed cost to support capacity to supply/ accept energy to/from customers. Fixed and Variable Cost Composition of Residential Average Bill

Analysis of 10 unique utilities’ cost structures based on FERC Form 1 and EIA data. 13 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Applications Integrated Grid Benefit/Cost Framework

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Distribution System is Immense in Scale Typical Distribution Utility

Number

Distribution Service Territory

1

Distribution Planning Area

1’s - 10’s

Distribution Substations

10’s - 100’s

Distribution Feeders

100’s -1000’s

Distribution Transformers

1000s - 1,000,000’s

Distribution Customers

100,000’s - 1,000,000’s

Feeders are the overhead and underground lines that connect to homes and businesses to a substation.

Distribution diagrams courtesy of Salt River Project

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Distribution Systems Respond Uniquely to DER What matters most?

Feeder Construction & Operation

 DER technology and Impacts  DER size and location  Feeder construction and operation

Hosting Capacity: DER Size DER and Size and Location Location DER Technology and Impacts Voltage

Protection coordination (MW) Thermal capacity

All Impacts Below Threshold

Impact Depends (on size & location)

All Impacts Above Threshold

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Sample Results from Integrated Grid Projects System Hosting Capacity (~ 300 distribution feeders)

Substation-level Hosting Capacity

Hosting Capacity:

Feeder-level Hosting Capacity

Substation

Initial analysis results from in Integrated Grid study, results preliminary 17 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Hosting capacity analysis is only the first step…  Accommodation at Penetrations Beyond Hosting Capacity – Voltage Limits Voltage voltage

– Protection Issues

 Thermal Capacity Analysis – Deferral of upgrades

limit

time 

Capacity

Protection relay  desensitization

Load Only

Current

Watts

– Loss of life

unacceptable overvoltage

Load and PV

 Energy Analysis

Impedance 

Integrated  Approach

Impedance 

– Distribution losses Energy

– Energy consumption

Energy Losses

unserved energy

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

 Cost/Benefit Analysis

Month

Energy

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energy exceeding normal

Time 

Reliability

Key Insights • Each feeder has unique technical impact from various levels of PV. • Utility planning practices impact the potential to defer transformer and/or conductor capacity. • PV reduces line losses, but consumption increases when voltage increases. There is usually a net reduction of losses. • “Smart Inverters” (a component of PV systems) can obviate the need for some upgrades, but upgrades are often needed at high penetrations. • At high penetrations, upgrades may be necessary to maintain protection coordination and voltage control.

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Questions? Together…Shaping the Future of Electricity Jeffrey D. Roark Technical Executive Electric Power Research Institute 3379 Lakewind Way Alpharetta, GA 30005 678-325-8971 [email protected] 20 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Jeffrey D. Roark, EPRI  34 years experience in regulated, unregulated, and government utilities – – – – – – –

transmission and generation system planning, strategic planning bulk power contracts power market analysis wholesale deal structuring trading and marketing research regulatory analysis (as both regulator and regulated)

 With EPRI since 2011, responsible for cost/benefit analysis in many projects within PDU  BEE, MSEE Auburn University MBA, University of Alabama at Birmingham

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