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SMART CCAs

SMART CCAs. Angelina Galiteva: Founder: Renewables 100 Policy Institute September 6, 2017. Electric industry in the midst of unprecedented change - Driven by fast-growing mix of interrelated issues. Federal Election Impacts. Gas Storage Challenges. Existing 50% goal. NEW 100% goal.

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SMART CCAs

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  1. SMART CCAs Angelina Galiteva: Founder: Renewables 100 Policy Institute September 6, 2017

  2. Electric industry in the midst of unprecedented change - Driven by fast-growing mix of interrelated issues Federal Election Impacts Gas Storage Challenges Existing 50% goal NEW 100% goal Community or Retail Choice Grid Modernization Regional Collaboration Consumer-owned Power Fossil Plant Retirements Transmission & Distribution Systems Interface

  3. The California ISO • Balance supply and demand…every 4 seconds • Operate markets for wholesale electricity and reserves • Manage new resource interconnections • Plan grid expansions

  4. One of nine Grid Operators in the U.S. • 2/3 of the U.S. is supported by an ISO • ISO is one of 38 balancing authorities in the western interconnection

  5. ISO Resource Mix- Good progress toward State's goals

  6. Growth of solar PV and wind connected to the California ISO grid 2010 Solar PV 2016 7,000MW PV 800 MW Thermal 4,800 MW BTM 85 MW Wind 3,309 MW 5,865 MW

  7. The “State of the State” of Renewables 73,000 MW of installed capacity • 30,000 load +/- in spring and fall 20,000 MW of utility scale renewables • Solar peak 8,545 MW (Sept ‘16) – doubled in 2 years Another 5,000 MW to meet 33% 12,000-16,000 MW to meet 50% 4,500 MW of consumer rooftop solar • 11,000 new/month; = 50-70 MW / mo.

  8. Clean, plentiful renewables…what’s the problem? - Oversupply and Steep Ramps Potential Over Supply 10,000 - 13,000 MW ramps commonplace Curtailments occurring now Slide 8

  9. NOT the Duck: ISO gross load curve is changing Dip is attributable to rooftop solar

  10. ISO working on a 50% duck curve Much steeper ramps Much deeper belly Slide 10

  11. High renewable penetration may lead to substantial amounts of curtailment 2024 Curtailment Natural Gas Source:E3/NREL, Western Interconnection Flexibility Assessment, October 30 2015 http://westernenergyboard.org/wp-content/uploads/2015/10/10-30-15_CREPC-SPSC-WIRAB_schlag-olson_E3_flex_assessment.pdf

  12. Investment in grid “assets” is expensive and growing Historical Growth in California Utility Rate Base vs Electricity Consumption Projected Growth in US Grid Investments $1,577 billion Transmission Distribution Electricity Consumption (TWh) $523 billion Generation ($ bn, LHS) Electricity Consumption (TWh, RHS) Source: “Transforming America’s Power Industry: The Investment Challenge 2010 – 2030”, Chupka et al., Brattle for EEI, 2008 http://www.edisonfoundation.net/iei/Documents/Transforming_Americas_Power_Industry.pdf Source: CPUC, Electric and Gas Cost Utility Report, April 2015; California Energy Commission

  13. PG&E – System Architecture There is a significant scale difference between Transmission and Distribution Transmission System Distribution System While there are challenges, PG&E’s distribution system is well positioned To meet the rapidly growing distributed energy resource model. 13

  14. Potential Transmission Power Flow With High Penetration of DER LEGEND Power Flow • Potential for power to flow bi-directional at the Transmission and Distribution Interface • The current system is not designed or modeled to accommodate this potential bi-directional power flow which may move the system t into unstudied conditions Generator Generator Transmission Substation Transmission Substation Potentially hundreds of thousands of injection points from rooftop solar, battery, and other distributed generation resources

  15. Central Fresno Transmission System Transmission • Transmit bulk power from generation facilities to distribution substations • Largely network design

  16. Central Fresno Transmission and Distribution Systems Distribution • Distributes electric power to end users (customers) • Radial design • Requires various levels of granular review

  17. No Single Solution to Oversupply and Ramping - Need to Decarbonize, Decentralize, Regionalize

  18. Storage uniquely qualified to help mitigate operational issues Discharge to mitigate impact of steep ramps Charge during times of surplus energy Slide 18

  19. ISO Programs Enable Participation Energy Storage & Distributed Energy Resources (ESDER) • Enable transmission-connected storage and distribution-connected resources to participate in ISO market (2016) Distributed Energy Resource Provider (DERP) • Pathway for distributed resources to bundle & participate Behind the Meter Distribution Connected Bulk Storage

  20. Regional Collaboration helps to manage surplus power Energy Imbalance Market • 5 minute market • Regionally diverse fleet • Optimize existing assets • New governance model • Completely voluntary

  21. The evolution of the Western grid ISO Energy Imbalance Market (EIM) • Total savings of $142.62 million since start in Nov 2014 • 359,320 MWh curtailment avoided, displacing an estimated 153,706 metric tons of CO2 • Integration of renewables across a larger geographical area • Enhances reliability with improved situational awareness • Reduces costs through automatic economic dispatch • Balancing authorities maintain control and reliability responsibilities Southwest Power Pool

  22. A new “Low Carbon Circle” = Opportunity for Storage/DER

  23. AN AGE OF ENERGY PLENTY… … AGE OF COMPETITION

  24. Consumers (Prosumers) as New Energy Supply Participants Rooftop Solar and storage Electric Vehicles Consumer control Rates and grid signals help them participate

  25. Laudato– demand side There is an urgent need to develop sources of renewable energy. Pope Francis Picture: Wikimedia

  26. Energy retail battlefield New services Virtual mobile operator – 80k customers Residential energy storage HEM tools and DR HIVE home heating controls Integrated smart homes Smart home partnerships/investment Smart thermostats and ‘behavioural’ DR IHD and smart thermostat program Smart lighting / home automation Smart thermostats to reduce churn Smart thermostats and load disaggregation BEMS for DR and energy efficiency Home energy management

  27. Energy retail battlefield New entrants - startups Heating controls Solar PV and energy monitoring TESLA ENERGY Load disaggregation Smart thermostats Smart thermostats, home automation Behavioural engagement Smart thermostats Connected home / IoT Load disaggregation HEM tools

  28. Energy retail battlefield New entrants - majors Home automation Energy supply and services Home automation DR and retail services Nest acquisition Smart home hubs Home automation HEMS platform Registered energy supplier HomeKit Smart home platform (AT&T) 1m connected home customers Digital Life connected home service

  29. Energy retail battlefield COMBINED ENERGY/TELECOMS service bundles Bundled telecoms, energy. Residential energy storage. Bundled telecoms, electricity supply beginning in 2016 Bundled telecoms and energy ??? Bundled electricity, entertainment and home automation Bundled telecoms, electricity and gas Bundled insurance, telecoms and energy Bundled electricity telecoms services

  30. How might the electricity industry evolve? DER IOU/POU CCAs Investor Owned or Public Utility IOU/POU Customer Integrator Distribution Grid Distribution Operator (IDSO) Third Party Aggregator Transmission Grid Transmission Operator (CAISO) Transmission Operator (ITSO) Bulk Generation 1990 Today Future? DER, “distributed energy resources” means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.

  31. What is the future of the electricity industry? Decarbonize Decentralize Digitize

  32. Three broad groups of policy available to regulators on a geographic level Regulatory Policy Innovation policy Carbon Pricing Traditional regulation Mandated standards Public education Cap-and- trade Knowledge management Adjustment assistance Carbon taxes • Technology transfer • Publicly funded research • Industry research consortia • Direct subsidies • Feed-in tariffs • Tax credits • Concessionary financing Note: These will vary by geography.

  33. Elements for a successful policy – TLC 3 key drivers for successful policy frame-works: Policies must also address: Enhancing returns Transparency FRAMEWORK Mitigating risk Longevity POLICY Addressing non-financial barriers Certainty & Consistency In assessing the potential success of policies, all these factors should be taken into account.

  34. CCAs are Here to stay?!! Source: Lean Energy US

  35. Best Practices creating win win solutions??? Serve community identified goals and local policy objectives, including greenhouse gas reductions and increased renewable energy supply Protect, engage, and empower vulnerable and disadvantaged sectors of the community through universal residential service, rate protections, transparent and culturally appropriate outreach, and programs designed to create economic opportunities and increase savings for low income customers Control and safeguard customer revenues to ensure long-term financial viability and local government ownership, even when power supply costs fluctuate Offer competitive rates and choice in customer electricity services Plan for long-term financial viability through integrated resource planning, in-house fiscal management, transparent rate setting, and policies that build program reserves Maintain a firewall between the assets and liabilities of the CCA program and those of municipal general funds Incorporate long-term power procurement strategies and local power ownership to hedge risk while using a diversity of energy suppliers, technologies and products Implement effective risk management practices Adhere to all applicable statutory and regulatory compliance requirements Engage meaningfully with the community and provide responsive, equitable service Ensure transparency and accountability to the community and oversight agencies Build community capacity by offering complementary programs that serve community interests, such as energy efficiency, demand response, community solar, advantageous net energy metering, Feed-in Tariffs, local workforce development, EV charging and battery storage

  36. Thank you Questions? Angelina Galiteva +1/310/ 735 3981 a.galiteva@renewables100.org • SMART CCA? • Sustainable 100% renewables in all Sectors • Monetizeable benefits and a matrix approach • Accountable, aggressive, advanced, academic • Reliable, resilient • Transparent

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