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Energy Imbalance Market (EIM) EIM expansion is the best approach to grid regionalization

Learn about Clean Coalition's renewable energy mission, Community Microgrids, and a proposal for improved transmission charges in California. Contact us for more information.

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Energy Imbalance Market (EIM) EIM expansion is the best approach to grid regionalization

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  1. Energy Imbalance Market (EIM) EIM expansion is the best approach to grid regionalization Craig Lewis Executive Director Clean Coalition 650-796-2353 mobile craig@clean-coalition.org 10 October 2019

  2. Clean Coalition (non-profit) Mission To accelerate the transition to renewable energy and a modern grid through technical, policy, and project development expertise. Renewable Energy End-Game 100% renewable energy; 25% local, interconnected within the distribution grid and ensuring resilience without dependence on the transmission grid; and 75% remote, fully dependent on the transmission grid for serving loads.

  3. Wholesale Distributed Generation (WDG) defined Project Size Central Generation Serves Remote Loads 50+ MW Wholesale DG Serves Local Loads 500 kW Retail DG Serves Onsite Loads 5 kW Distribution Grid Transmission Grid Behind the Meter

  4. Community Microgrids are the grid of the future A Community Microgrid is a new approach for designing and operating the electric grid, stacked with local renewables and staged for resilience. • Key features: • A targeted and coordinated distribution grid area served by one or more substations – ultimately including a transmission-distribution substation that sets the stage for Distribution System Operator (DSO) performance. • High penetrations of local renewables and other distributed energy resources (DER) such as energy storage and demand response. • Staged capability for indefinite renewables-driven backup power for critical community facilities across the grid area – achieved by 25% local renewables mix. • A solution that can be readily extended throughout a utility service territory – and replicated into any utility service territory around the world. gregory.thomson@sunrun.com

  5. There are three Vital Grid Services The Duck Chart only addresses Power Balancing but Distributed Energy Resources deliver unparalleled location and speed characteristics

  6. Big opportunity for better asset utilization in the power sector

  7. Transmission costs are out of control

  8. California’s electricity grid market structure TODAY Transmission and distribution facilities Participating Transmission Owner (PTO) (incl. utilities) HV T-grid High-voltage (HV) transmission grid OPERATED BY CAISO Above 200 kV SDG&E LV T-grid PG&E LV T-grid Other Utility LV T-grid SCE LV T-grid UTILITIES OWN TRANSMISSION & DISTRIBUTION Low-voltage (LV) transmission grid Above 69 kV SCE D-grid SDG&E D-grid PG&E D-grid Other Utility D-grid Distribution grid OPERATED BY UTILITIES

  9. Who owns, operates, and regulates the power grid High-voltage transmission grid (HVT) 200kV Low-voltage transmission grid (LVT) HVT-LVT substations 69kV Distribution grid Transmission-distribution substations Customer premises (behind the meter) Customer meters

  10. Clean Coalition transmission divestment proposal: Restructuring to improve competition and innovation Transmission and distribution facilities Only Participating Transmission Owners own transmission assets Participating Transmission Owner (PTO) HV T-grid High-voltage (HV) transmission grid Above 200 kV OPERATED BY CAISO LV T-grid LV T-grid LV T-grid LV T-grid Low-voltage (LV) transmission grid BRIGHT LINE Above 69 kV SCE D-grid SDG&E D-grid PG&E D-grid Other Utility D-grid Utilities own & operate distribution only OPERATED BY UTILITIES Distribution grid

  11. Transmission Access Charges (TAC) Campaign • Transmission Access Charges (TAC) in California are assessed inconsistently and unfairly, creating a massive market distortion • In PTO utility service territories, California ratepayers pay the same charge for “using” the transmission system whether or not the energy they use travels across that system • The TAC market distortion has hidden costs: • Californians could pay up to $60 billion extra over the next 20 years • 3 cents per kWh is being stolen from clean local energy projects — 50% of their total cost — making them look more expensive than they really are • Fewer $$ are available for the resilience that Community Microgrids bring our communities • The Clean Coalition is proposing this reform: Charge for electricity transmission based on actual use of the transmission grid • This method is already being used successfully by California’s municipal utilities

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