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Scope of ESI Research

U.S. Department of Energy Energy Policy Act of 2005 Electric Transmission and Distribution Future R&D Needs February 1-2, 2006 Tallahassee, Florida Energy Systems Integration Research on Load Control, Distributed Generation and Distribution.

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Scope of ESI Research

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  1. U.S. Department of EnergyEnergy Policy Act of 2005Electric Transmission and Distribution Future R&D NeedsFebruary 1-2, 2006Tallahassee, FloridaEnergy Systems Integration Research onLoad Control, Distributed Generation and Distribution Merwin Brown, PhDDirector, PIER Electric Transmission Research ProgramCalifornia Institute for Energy and EnvironmentUniversity of California, Office of the President

  2. Scope of ESI Research ESI’s systems perspective provides crosscutting coverage to complement other PIER programs.ESI’s Vision: A fully optimized electricity system where efficiency, reliability and environment are maximized. TRANSMISSION AND DISTRIBUTION DER INTEGRATION DEMAND RESPONSE SECURITY ENDUSERS RESIDENTIAL COMMERCIAL GENERATION TRANSMISSION DISTRIBUTION INSTITUTIONAL INDUSTRIAL CAISO WATER AGRICULTURE ESI’s Mission is to develop integrated infrastructure where electricity transactions are more effective, efficient and reliable. Allow for multiple objectives to be balanced seamlessly in real time.

  3. ESI Research Areas On-going: • Effectively integrate distributed energy resources (DER) into utility system and markets • Optimize demand response (DR) to dynamic prices and system contingencies • Improve transmission system reliability and efficiency Newly initiated research to: • Develop enabling technologies for the next generation of distribution system that will enable seamless integration of DG and DR • Develop resilient, self-diagnosing, and self-healing physical and cyber critical energy infrastructure systems (i.e., electrical, natural gas, petroleum)

  4. Demand Response Research Peak Load Issues • Supply-side solutions to provide for peak demand or system emergencies cost more than load reduction solutions • A real-time control and communicationsinfrastructure is required to support price and emergency signals • It doesn’t take much “automated” load reduction to avoid blackouts • Air conditioning is the low-hanging fruit Demand Response Definition • Demand Response (DR) is the action taken to reduce load when: • Contingencies (emergencies & congestion) occur that threaten supply-demand balance, and/or • Marketconditions occur that raise supply costs • DR typically involves peak-load reductions • DR strategies are different from energy efficiency, i.e., transient vs. permanent

  5. Demand Response R&D Approach DR R&D Vision • Create a real-time, automated DR infrastructure that is simple to use and can adaptively respond to changing contingency and market conditions • A DR infrastructure must coexist with legacy systems, allow for future technology and tariff improvements, and have near-, medium-, and long-term benefits to California ratepayers R&D Goals • Substantially reduce costs of components and system implementation by developing enabling technologies that address functionality of DR • Work with CA ISO to demonstrate DR as an ancillary services resource in their portfolio of options for spinning and non-spinning reserve • Demonstrate that load can be shed automatically for short periods in large commercial & industrial facilities without causing disruptions to operations • Study tariffs and economic implications for CA

  6. Distribution R&D Program PIER’s Energy System Integration launched the Distribution R&D Program November 2005 Component Optimization Are there technologies that can improve the utilization and reliability of the existing grid? System Integration Are there technologies that will increase the intelligence and responsiveness of the distribution system to allow DER to be more effectively utilized to provide local system support and reliability services? Market Mechanisms Can distribution products or market transactions be developed and incorporated into the regulatory structure that will promote increased efficiency, and reliability while reducing cost? Focus Areas Sub-Areas • New Components • Optimal Ratings • Proactive Diagnostics • Automation and Self-Healing • Open Communication Architecture • Real-Time Operating Information • Distribution Design Enabling DER • Enhanced Planning Tools • Future Distribution Preparation • Business Models • 2005/2006 Proposed Distribution Research Initiatives: • Business Models: Develop business cases based on current practices that address utility investment in automation, DER, and system upgrades • Proactive Diagnostics: Improve ability to monitor system conditions in order to predict component failures and act preemptively First Year R&D Initiatives

  7. Improve cost and functionality of DG interconnection components (e.g., power electronics) Enable DG to be integrated to the electric sector infrastructure (e.g., functionality, cost effectiveness) Determine appropriate market mechanisms for DG (e.g., rates & tariffs, markets & utility planning, incentives) What RD&D is needed in order to enable DER to be a significant resource in California’s power system? Interconnection Can a substantial amount of DER be interconnected in both radial and networked distribution systems? Grid Effects Would a high penetration of DER have adverse impacts and/or positive effects on the T&D system? Market Integration Can DER access robust markets or be exposed to price signals that will maximize benefits to customers and the power system? DER Integration R&D R&D plan working to accomplish three key strategic objectives DER Integration focuses on systems research that links technology and policy Note: The DER Integration program is also supporting renewable energy and demand response policy objectives where appropriate (e.g. interconnection, distribution planning, communications and controls).

  8. Cost of Power Electronics for DER Power electronics are part of key DER technologies, and represent a significant portion of the capital costs. DER total capital costs 100% DER Type DER Capital Cost $/kW Power Electronics % of DER cost Microturbine $900 - $1,800 35% - 45% 80% Wind Turbine $1,000 - $4000 25% - 40% Fuel Cell $3,000 - $6,000 10% - 30% 60% Photovoltaics $6,000 - $10,000 10% - 25% 40% • Cost reductions in power electronics will reduce overall cost of DER. • Approach is to reduce cost while improving reliability through: • Standardizing interfaces • Improving interoperability, scalability and modularity of components and subsystems 20% 0 WindTurbine Microturbine Fuel Cell PV Power Electronics Other Capital Costs Have completed research assessment and are initiating $2.5M for first year of multi-million, multi-year program with NREL.

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