Item 6- Staff Briefing Battery Program Launch Update including DERMS and VPP — original pdf

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Solar-Coupled Battery Demand Response Richard Génecé Vice President, Customer Energy Solutions Tim Harvey Manager, Customer Renewable Solutions Lindsey McDougall Manager, Demand Response and Technical Services February 2025 © Austin Energy How a Virtual Power Plant Works Using a Distributed Energy Resources Management System (DERMS) Austin Energy Calls Event to DERMs Provider Based on the Market Provider Signals Customer Batteries through DERMS Austin Energy Passes Benefits to Battery Owner Customer Batteries Charge and Discharge 1 Solar System Austin Energy Avoids Costs on the Market 2 Virtual Power Plant Use Cases Austin Energy Load Zone Jan. 7, 2025: Day Ahead Market vs. Real Time Price $200.00 $180.00 $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $- 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 Day Ahead Market Real TimePrice 3 Virtual Power Plant Use Cases Austin Energy Load Zone Jan. 7, 2025: Day Ahead Market vs. Real Time Price Energy Arbitrage $200.00 $180.00 $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $- Charge Discharge 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 Day Ahead Market Real TimePrice 4 Virtual Power Plant Use Cases Austin Energy Load Zone Jan. 7, 2025: Day Ahead Market vs. Real Time Price Day Ahead / Real Time Hedging Austin Energy participates in the day ahead market to hedge against generation supply risk $200.00 $180.00 $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $- Generation supply shortfalls can send the market price up to $5,000. A VPP would allow us to mitigate the risk and reduce the need to hedge in the Day Ahead Market 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 Day Ahead Market Real TimePrice 5 Progress • SHINES lessons • Residential and commercial interconnection guidelines and design criteria • Permitting and inspections • Billing system updates • Vehicle to Home (V2H) • 15MW residential batteries installed Battery Adoption Current Efforts • Resilience Hubs planning with Parks & Recreation Dept. • Microgrid – Camp Mabry • Circulating battery recycling info readily available • Market benefit analysis and operation strategies • Edge Distributed Energy Resource Management System (DERMS) solution • Solar for All DERMs Virtual Power Plant (VPP) Planning • Electric Power Research Institute (EPRI) collaboration on requirements for full scale central DERMS • DERMs internal working group 6 Meter Collar Disconnect Example 7 Considerations for a Successful Battery Program 1. Customer 2. Community 3. Utility 8 Customer Benefits • Tax credit • Up-front Incentive • Resiliency • VPP Benefit Costs/Barriers • Battery • Wear and Tear • Maintenance Insurance • • Education • Recycling Experience Incentive • • Education • • Rate • Utility Engagement Install/inspection 9 Community Benefits • Resiliency • Local Economic • Environmental • Health • Education • Downward Pressure on Rates • Energy Independence 10 Costs • Customer Rate • DERMS Platform Fees • Original Manufacturer Platforms Fees • Up-front Incentives • Marketing • Education Utility Benefits • • Increase Customer Satisfaction Increase Dispatchability Local Solar • Rate Stability • Avoided Cost • Clean Energy Future Deployment Strategies • Edge DERMS • Central DERMS • Energy Arbitrage • Four Coincident Peak Reduction for Transmission Costs • Ancillary Services • Non-Wires Alternatives 11 Value of utility- controlled batteries Key Information Value of customer- controlled batteries Value of resiliency Environmental value beyond photovoltaics Cost and risk of doing nothing Competing alternatives Drivers for customer battery adoption 12 Integrating Demand Response with Batteries 13 Virtual Power Plant (VPP) Utility Program Characteristics • Customer is paid a demand response performance incentive • Austin Energy controls the residential battery o Remote charge and discharge o Battery state of charge Utility Program Considerations • Cost effectiveness • Original Equipment Manufacture inclusive • Expansion of Virtual Power Plant VPP controlled by an Edge DERM 14 Residential Battery Demand Response Programs Virtual Power Plant Rate or Bill Credit Control Austin Energy controls the battery Customer controls the battery Program Control Design Austin Energy remotely controls customer’s battery to charge and discharge to manage load Customer’s battery communicates state of charge, voltage and measure power flow to Austin Energy via 3rd party cloud- based software aggregator Verification Austin Energy Program Examples Austin Energy asks the customer to charge and discharge battery based on Austin Energy program parameters and the customer receives a bill credit Austin Energy uses meter data to confirm, no detailed forecasting Power Partner Thermostat and EV EV360 managed EV charging pilot 15 Expanding Existing Demand Response Programs Power Partner Thermostat and EV • Off-season bonus awards $75 for enrollment • Implementing reoccurring annual incentive of $25 • Residential pay for performance feasibility study, ex. Commercial Demand Response Program • Evaluating Austin Energy branded microsite to offer demand response enrolled thermostats • Demand response enrollment to be tied to residential charging station rebate 16 Expanding Existing Demand Response Programs • • • Scale installations of pre-enrolled demand response thermostats • Build on success of City demand response resolution in City buildings Strengthen building codes for demand response enabled devices in new construction Enhance demand response program marketing and community awareness 17 Desired Outcomes for Battery Demand Response Program High Customer Participation Excellent Customer Service Dispatchable Energy in Load Zone Increased DER Adoption Distributed Energy Resources Sustainable Program Design Integrated Systems 18 ©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.