Item 4: Innovation Caucus on demand response technologies and opportunities — original pdf

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O P P O R T U N I T I E S F O R E N E R G Y R E S I L I E N C Y I N A U S T I N Technology-centric Programs to Enable a Sustainable Future Arushi Sharma Frank ERCOT Representative, Tesla RMC Meeting Nov. 16, 2021 T O P I C S • What is Demand-Side Resiliency? • 5 Pillars of Effective Demand-Side Energy Resiliency Policy • Benefits of Demand-Side Resiliency Programs • Customer Devices – Demand Response • Solar & Storage – Residential • Virtual Power Plants & Smart Homes • Residential Plug-in EV Charging • Renewable Microgrids • Discussion W H A T I S D E M A N D - S I D E R E S I L I E N C Y ? Demand-Side Technologies Devices affecting Grid Energy Demand Demand-Side Programs Rates, Policies incenting Grid Energy Demand Time-Shifting, Off-Grid Consumption E F F E C T I V E D E M A N D - S I D E R E S I L I E N C Y P R O G R A M S 5 P I L L A R S • Send Clear Economic Price Signals • Utilities and • Rate Design System Operators Approve Technology and Programs Value All Benefits • Design for Customer Experience • Create Accessibility to Technology B E N E F I T S : D E M A N D S I D E E N E R G Y R E S I L I E N C Y P R O G R A M S Customer Devices – Demand Response •Load Shift (DD Response) •Reduce Energy Bill •Reduce Fossil Fuel Reliance •Avert Rolling Blackout •Reduce Utility Cost to Serve Solar + Storage – Residential •Whole-home Backup in Outage •Reduce Energy Bill (Self- Consume) •Absorb Rooftop Solar •Reduce Fossil Fuel Reliance •Reduce Utility Cost to Serve Virtual Power Plant & Smart Home •Reduce Utility Cost to Serve •Compensate for Grid Services (Exports) •Offer Lower Power Prices to All Customers (Hedging) Residential Plug-In EV Charging •Increase Utility Demand- Supply Balancing Flexibility •Energy Bill Reduction •Reduce Reliance on Fossil Fuel •Revenue Growth for Utility •Incent EV Adoption Renewable Microgrid •Reduce Utility Cost to Serve •Absorb Excess Solar •Outage Prep •Community Resiliency Hubs C U S T O M E R D E V I C E S : D E M A N D R E S P O N S E • Compensate customers for “micro” and “macro” behavioral response from appliance level to whole- home – without compromising customer experience • Value Proposition • Avert rolling blackouts during grid emergencies • Respond to high prices, put downward pressure on grid prices • Use to relieve local congestion in most constrained hours of the day to defer costly utility infrastructure upgrades • Utility can partner with a Demand Response Provider or Aggregator to “Bid” the available capacity reduction into the wholesale market to be paid in advance for the expected curtailment C U S T O M E R D E V I C E S : D E M A N D R E S P O N S E O H M C O N N E C T & E A S T B A Y C O M M U N I T Y E N E R G Y ( C A L I F O R N I A ) • EBCE will contract with OhmConnect as it does with power plants in the electricity market; to procure 25 MWs of load reduction from OhmConnect when the CAISO grid is the most stressed • OhmConnect providing load reduction so EBCE can hedge its energy purchases during hot summer afternoons and evenings • Typical annual payments for EBCE customers range from $30 to $100 per year, depending on home size and location OHMCONNECT GOALS – CALIFORNIA • 100 MW Load Reduction Capacity Statewide 2021; 550 MWs in 3 Years * $80 MN allocated to firming up customer participation capabilities at appliance level: free smart thermostats, free smart plugs S O L A R + S T O R A G E : R E S I D E N T I A L S O L A R + S T O R A G E : R E S I D E N T I A L S A C R A M E N T O M U N I C I P A L U T I L I T Y D I S T R I C T Sacramento Municipal Utility District has developed a Net Energy Metering Successor Tariff to accelerate market transformation from Solar Only to Solar-Storage Utility rate design elements: • Excess power injected at any time of day receives a DER Energy Credit 7.4c/kWh – represents value of GHG Emissions Savings, Natural Gas Savings, Capacity Savings (Transmission, Distribution, Generation) • Battery Storage Incentives stack on the DER Energy Credit - the more value the battery provides the higher • $500 base incentive • $1500 if enrolled in critical peak pricing rate, with exports during CPP credited at full retail rates • $2500 if enrolled in Virtual Power Plant) V I R T U A L P O W E R P L A N T G R E E N M O U N T A I N P O W E R ( V E R M O N T ) V I R T U A L P O W E R P L A N T P E A K S H A V I N G & O U T A G E M A N A G E M E N T V I R T U A L P O W E R P L A N T S O U T H A U S T R A L I A H O U S I N G T R U S T I N I T I A T I V E • South Australia Housing trust installed 1100++ solar-storage residential systems on Housing Trust Tenant Properties across the region • Housing Trust Tenants do not own the assets – no up-front costs • Housing Trust Tenants sign up for a tailored Virtual Power Plant retail Energy Offer (Energy Locals is • Even those Tenants without solar+ storage can access the same VPP Retail Energy Offer (~290 Retailer) customers) Housing Trust Customers in the VPP Access the Lowest Available Residential Rate in South Australia – 20% Lower than the statewide Default Market Offer S M A R T H O M E S A T E A S T O N P A R K D R I V E N B Y U T I L I T Y T E C H N O L O G Y A P P R O V A L S S M A R T H O M E S A T E A S T O N P A R K D R I V E N B Y U T I L I T Y T E C H N O L O G Y A P P R O V A L S Old Way New Way S M A R T H O M E S A T E A S T O N P A R K P R O J E C T M I L E S T O N E S & E N A B L E R S • First Powerwall + Install in Utility service territory • TSLA Backup Switch Approval + Install Guidelines Issued by Utility • TSLA immediately begins providing $500 Point-of-Sale Discount for all PV+ Powerwall Purchases in Utility • 06/09/2021 • 09/30/2021 Service Area • 10/14/2021 • 10/18/2021 • First 9 Solar Roofs Installed in Easton Park new homes • First TSLA Backup Switch & Powerwall + Installs in Easton Park S M A R T H O M E S I N A U S T I N E N E R G Y Customer Value Utility Programs Technology Can Install Resi Self- Generation Compensation Resi Self- Consumption Compensation Residential Grid Services Compensation Customer Experience Customer Savings Simplicity in Operations Value of Solar Credit (Austin Energy) Net Energy Meter Credit (Other-US) TBD in Austin Energy: Storage Time of Use Rate/Critical Peak Rate TBD in Austin Energy – Grid Services Program TBD in Austin Energy – Interconnection & Metering Approvals for both Technologies Powerwall 2.0 + Backup Gateway Cannot Install Powerwall + Backup Switch S M A R T C I T I E S : P R O G R A M & T E C H N O L O G Y A C C E L E R A T I O N "Energy-specific sandboxes must be carefully and thoughtfully designed, and … there are good arguments for … target[ing] the energy industry, particularly the power sector. The energy system is transforming toward a largely distributed and renewables-based future that will require an updated regulatory framework. Trialing some targeted policy changes now, at limited scale, will help ensure that the rules governing the system keep pace with the energy transformation.” Guidehouse R E S I D E N T I A L E V P L U G - I N C H A R G I N G • align with the marginal costs across generation, transmission, and distribution sectors as much as possible reflect policy goals as accurately and transparently as possible • encourage outcomes by influencing end-users' decision making and incentivizing customers to consume at optimal The residential EV rate(s) should • • time periods convey price signals to end-users in a simple and easy-to-follow manner • be based on economic sustainability, rate stability and gradualism • promote energy access and affordability • apply to whole houses instead of being exclusively for EVs through a separately metered EV charging requirement *(if customer also has solar/storage on site) R E S I D E N T I A L P L U G - I N E V R A T E D E S I G N G E O R G I A P O W E R A N D C O B B E M C 8+ Supercharger posts at a X city parking facility Tesla covers upfront and ongoing costs, co-location option 15-year project duration R E N E W A B L E M I C R O G R I D S C O M M U N I T Y - O W N E D U T I L I T Y O W N E R S H I P Battery-Powered Microgrid Models Backup Batteries (Stationary or Mobile)​ Off-Grid Microgrid Grid-Tied Microgrid Modes of Operation Batteries power loads directly; No other generation operating in parallel Battery + Other Generators (Diesel, Solar etc.); no grid power connection; all operate in parallel Battery + Solar + optional Generator[s] + Grid (Battery & Solar operate together when on-grid); All operate in parallel when off-grid Duration of Need at Single Site Microgrid Benefits Energy market risk reduction​ Distribution Deferral C&I temporary interconne ction requirement​ Planned distribution outages​ Years​ Years​ Years​ Hours to months​ Natural disaster outages​ ​; Mobile Solutions​ Hours to months​ Daily energy shifting between sites​ One day​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ F U T U R E A R E A S O F I N Q U I R Y F O R C U S T O M E R S • What changes are required to send a price signal to customers for adoption of more demand response and storage? • Can Austin aggregate customers and resources to build its own Virtual Power Plant? • Without changing the current ERCOT rules, what recommendations can be made to the City to allow customers to access and benefit from demand-side technology? • How can demand-side electrification benefit Austin’s fiscal goals? • How do Austin area utilities' resiliency/electrification plans enhance and serve broader City objectives for climate mitigation, public health and safety? • What enhancements can be made to the Austin Energy Resource, Generation and Climate Protection Plan to 2030 to incorporate diversified, technology-oriented demand-side programs that compensate Austin Energy customers for all potential contributions to resiliency? A P P E N D I X D E M A N D S I D E E N E R G Y R E S I L I E N C Y – A U S T I N ’ S G O A L S Health, Safety, Welfare Objectives – Austin Climate Equity Plan Austin Energy Resource, Generation and Climate Protection Plan Statewide Grid Resiliency/Reform​ (Senate Bill 2, 3) Austin Energy Roadmap Storm Response Findings Public Surveys #CommunityPowered Utility – Resiliency Programs Easier to Implement without ERCOT Reforms S O L A R + S T O R A G E : R E S I D E N T I A L S A C R A M E N T O M U N I C I P A L U T I L I T Y D I S T R I C T S O L A R + S T O R A G E : R E S I D E N T I A L V A L U E A L L B E N E F I T S & D I V E R S I F Y P R O G R A M S V I R T U A L P O W E R P L A N T R E S I D E N T I A L S T O R A G E E X P O R T S T O G R I D G R E E N M O U N T A I N P O W E R 100% Performance Score in Regulation Service to ISONE Enrollment Goal of 1800 Homes ~ 3,000 Residential Batteries