Item 12: SHINES Update — original pdf

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Austin SHINES Project Update Item 12 William Kelly Distribution Process Manager − Advanced Grid Technologies October 12, 2020 (Formerly Item 16, September 14, 2020) © 2018 Austin Energy Project Description The Austin SHINES Concept Utility Scale Energy Storage + PV Commercial Energy Storage + PV Residential Energy Storage + PV DER Management Platform Sustainable and Holistic INtegration of Energy Storage and Solar PV Austin SHINES Assets Grid Scale • Kingsbery Energy Storage System • Mueller Energy Storage System La Loma Community Solar Farm • Commercial Scale • 3 Aggregated batteries + existing solar PV Residential Scale • 6 Aggregated batteries + existing solar PV • 1 Electric Vehicle installed as Vehicle-to-Grid (V2G) • 12 Utility-Controlled PV Smart Inverters • 6 Autonomously-Controlled Smart Inverters DER Value Strategies Value Streams Use Case Utility Peak Load Reduction Lower transmission cost obligation Energy Market Day-Ahead Energy Arbitrage Realize economic value through price differential Grid Reliability Real-Time Price Dispatch Realize economic value from real-time price spikes Voltage Support Reduce losses and increase solar generation Distribution Congestion Management Increase local grid reliability Utility Customer Demand Charge Reduction Lower customer bills and realize system benefit SHINES Asset ‘Value Stack’ S S E y r e b s g n K i l ) e a c s - d i r g ( S S E r e l l e u M l ) e a c s - d i r g ( S S E / V P . g g A ) l a i c r e m m o c ( S S E / V P . g g A ) l a i t n e d i s e r ( V P r a o S l ) l a i t n e d i s e r ( DERO Application (application benefit) Utility Peak Load Reduction (Lower transmission cost obligation) Day-Ahead Energy Arbitrage (Realize economic value through price differential) Real-Time Price Dispatch (Realize economic value from real-time price spikes) Voltage Support (Reduce losses and increase solar generation) Distribution Congestion Management (Increase local grid reliability) Demand Charge Reduction (Lower customer bills and realize system benefit) C I M O N O C E Y T I L I B A I L E R T S U C Findings To Date Technical Lessons INTEROPERABILITY: Lack of industry wide standards for communication & system integration protocols SIZING: Optimal system design highly dependent on value application and grid location SITING: Building codes & permitting processes unable to keep pace with DER SAFETY: Development & deployment of emerging technologies can outpace present day safety measures Economic Lessons HOLISTIC CONTROL: “Value stacking” is possible but prioritization of use cases is critical RELIABILITY: Highly dependent on location and the underlying characteristics of the interconnected grid VALUE COST COST vs VALUE: The value of battery storage does not yet outweigh the costs LOAD MANAGEMENT: Load management can be impacted utilizing DER, but may not be economical Tipping Points Investing at scale in DER and DER Integration Economic Imperative Technical Requirements Policy Imperatives A primary determinant A wide range of technology benefits Regulatory changes may dictate that storage Deployment costs decrease Should be considered compared to traditional alternatives Deployment value increasing Many combinations of variables is the best option Market changes Mandates or Incentives IN THE MEANTIME: Maintain readiness through continued research Safety Guidelines Comm Standards Where Do We Go From Here? Intentional Islanding Market Development Installation Locations DERMS Integration Reliability Value DER Roadmap Vendor Partnerships Cyber Security Austin SHINES Grant Reporting https://austinenergy.com/ae/green-power/austin- shines/final-deliverable-reports 1. System Levelized Cost of Electricity (System LCOE) Methodology 2. Software Platform Product Description 3. Optimal Design Methodology 4. Ownership and Operation Models for DER System Performance 6. Fielded Assets 5. Economic Modeling and Optimization DER Whitepaper https://austinenergy.com/ae/about/reports-and-data-library/generation- resource-planning-update/euc-resource-planning-working-group • Written in September 2019 • Used in development of Austin Energy’s 2019 Generation Resource Plan update • Summarizes lessons learned & next steps based upon the to date completed SHINES work • Will serve as an input to DER Roadmap for Austin Energy Confidential & Proprietary ©2018 Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.