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Integrating PV on Distribution

           Forrest Small
      Director, Energy Practice
             Navigant
             April 2011
                                  ENERGY
Discussion Points


Points to discuss today

» Distributed PV increasing
» Effects of high penetrations of distributed PV
» Energy storage and distributed PV




©2011 Navigant Consulting, Inc.      1
                                                   ENERGY
Growing PV Installed Base

PV installations are increasing dramatically, and could soon exceed
annual wind installations.

                                  Annual Renewable Energy Capacity Additions (MW per year)


           12,000

           10,000
                                                                                                                        Hydro
             8,000                                                                                                      Geothermal
             6,000                                                                                                      Landfill Gas
                                                                                                                        Biomass
             4,000
                                                                                                                        Solar
             2,000
                                                                                                                        Wind
                     0
                         2010        2011            2012             2013             2014             2015

      Forecasts assume: no renewal of existing federal tax credits after their current expiration dates;
      and no new federal stimulus program is created.
    Source: Navigant Consulting, Inc., January 2009. Note: Solar includes solar PV and CSP; Biomass includes biomass co-firing.



©2011 Navigant Consulting, Inc.                                         2
                                                                                                                     ENERGY
Solar Ownership by Utilities

A growing number of utilities want to install distributed solar on a
large scale and put it in ratebase.
                             Utility Programs for Distributed PV: Examples of Filings for Rate Basing


                                                             Filed February 2010           Filed June 2008
         Filed February 2009                                 3 MW                          20MW in 2 years,               Proposed 4Q 2008
         500MW in 5 years3                                                                 Modified to 10 MW              5MW



                                                                                                                         Filed February 2009
                                                                                                                         120MW in 5 years
 Filed March 2008
 250MW in 5 years,
 Modified to 500 MW3

                                                                                                                     Filed November 2007
                                                                                                                     3.5MW in 5 years2
         A Sempra Energy Utility
                                                                         Filed January 2010                        Filed May 2008
           Filed July 2008                      Filed May 2009           80 MW                                     35MW Program
           77MW in 4 years1                     1.5 MW
                                                                                       Additional Utility Programs; 3rd party or community owned
                                                                                       Sacramento Municipal Utility District (1MW) , Portland General
Notes:
                                                                                       Electric (>2MW), Hawaii Electric Company (16 MW), City of
1. SDG&E: 55MW owned by utility
                                                                                       Ellensburg (<1 MW), City of St. George (<1 MW)
2. ACE: 0.5MW will be utility owned and located on utility facilities.
3. PG&E and SCE 50% ownership



©2011 Navigant Consulting, Inc.                                                    3
                                                                                                                           ENERGY
Connecting PV on Distribution

PV can be connected at three levels in the distribution system
depending on the location and size of the installation.

     Distributed PV can by interconnected                          Substation interconnection assumes that the
                at three levels                                    PV is physically located close to the
                                                                   substation, and a dedicated electrical
                                                                   connection to the low side bus would be
                     Substation                                    made.
                                                 PV

                                                                   Primary Distribution interconnection
                                                                   assumes that the PV is connected directly to
                                                 PV                the distribution system, and is not
                                                                   integrated with a customer’s electrical
                                  Dedicated                        system.
             Distribution         Metering
             Circuits
                                                                   Behind the Meter interconnection assumes
                                                       PV          the PV is integrated with a customer’s
                                   Net
                                                                   electrical system, and either net metering or
                                   Metering                        dedicated metering could be employed.
                                              “Behind the meter”


Each point has a practical limit based on the impact of the PV on the
distribution system.

©2011 Navigant Consulting, Inc.                                    4
                                                                                                ENERGY
Challenges of High PV Penetration

In addition to high cost, T&D concerns, communications, and
regulatory challenges have limited the PV deployed.


                                  Challenges of High PV Penetration

                                  Voltage regulation (D)
        Transmission and      Reverse power flow (D)
        Distribution Concerns Power fluctuation/frequency regulation (T)
                                  Harmonics (D)
                                  Lack of communications throughout the distribution
                                  system
                                  Inverter operating limits (e.g., IEEE 1547)
        Communications
                                  Limited ability to forecast PV resource for capacity
                                  planning
                                  Non-standard communications protocols
                                  Unstructured interconnection standards and ownership
        Regulatory and            control in some states
        Business Models
                                  Lack of rate recovery and PV-“friendly” tariffs


©2011 Navigant Consulting, Inc.                    5
                                                                                ENERGY
Transmission and Distribution Performance Concerns

Past research had indicated that distribution performance concerns if
PV exceeded certain penetrations.

     Recommended Limitations on PV Penetration Based On T&D Performance Concerns
                                                                                                                  Recommendation
       T&D
                                                                                                                  for Maximum PV
   Performance                                        Description of Impact
                                                                                                                   Penetration on
    Concerns
                                                                                                                  Circuit Peak Load
                                  Adequate voltage regulation may be difficult due to changes in
      Voltage                     circuit load and power flow while PV is producing. Also of
                                                                                                                           < 40%
     Regulation                   concern is voltage depression after a circuit restoration, when
                                  load is restored but PV systems have not come back online.
                                  Changes in PV output can cause the power flow on
     Reverse
                                  distribution circuits to vary, and in some high generation/low                        5% to 30%
    Power Flow
                                  load cases, the flow could reverse.
                                  The variability of PV output due to cloud transients has been
       Power                      shown to create power fluctuations, and may be incompatible
    Fluctuation/                  with the ramp rates of some central station generation. This
                                                                                                                        5% to 30%
     Frequency                    variability may require higher levels of system frequency
    Regulation                    regulation, increasing the cost of accommodating higher
                                  penetrations of PV.
   Source: Distributed Photovoltaic Systems Design and Technology Requirements, C. Whitaker, J. Newmiller, M. Ropp, and B. Norris, February
   2008, and Navigant analysis, 2008.




©2011 Navigant Consulting, Inc.                                        6
                                                                                                                  ENERGY
Power Quality Concerns

As PV penetration increases, harmonics may become an issue that must
be evaluated case by case.
                                  Effects of Harmonics and Limitations on PV Penetration
                 Study Country                                               Summary of Findings

      Germany (1)                             TV loads coupled w/ PV created higher distortion
      Australia (2)                           Limit found at ~ 18% penetration
      Denmark (3)                             Up to 30%; TV distortion > PV
      Japan (3)                               Line-end over-voltages on cluster of 550 houses
      Australia (3)                           665 homes connected with no significant impacts
      Sources
      1. Distributed Energy Resources and Waveform Distortion, Math Bollen, Christine Schwaegerl, and Sebastian Schmitt
      2. Harmonic Impact of Residential Type Photovoltaic Inverters on 11kV Distribution System, A.A. Latheef, V.J. Gosbell, & V. Smith
      3. The Effects of Harmonics Produced by Grid Connected Photovoltaic Systems on Electrical Networks, Abdulvahid Çelebi & Metin
         Çolak


      •In some studies non-linear loads in residences (e.g., televisions)
       had a greater impact on harmonics than PV inverters.
      •Distribution circuits with strong sources, shorter length and higher
       voltages tended to be less susceptible to excessive distortion.
©2011 Navigant Consulting, Inc.                                        7
                                                                                                                   ENERGY
Results From Recent Work » Navigant

Recent studies show that distribution voltage stays within system
design criteria even with high penetrations of PV…
                                      On some circuits PV penetration as high as
                                         30% does not exceed voltage limits
                            1.040

                            1.030

                            1.020
                                                                                                     Peak Load PV Bus
                            1.010                                                                    Voltage

                                                                                                     Low Load PV Bus
                            1.000                                      Voltage within +/- 3%         Voltage
                  Voltage




                            0.990
                                                                                                     Peak Load Minimum
                            0.980                                                                    Feeder Voltage

                                                                                                     Low Load Minimum
                            0.970
                                                                                                     Feeder Voltage
                            0.960                                                                    Peak Load Maximum
                                                                                                     Voltage Drop
                            0.950

                            0.940
                                        1%                    9%                    15%        30%

                                                                   DG Pentration
           Source: Navigant, Analysis of southwest investor owned utility, November 2010.




©2011 Navigant Consulting, Inc.                                                8
                                                                                                      ENERGY
Results From Recent Work » Natural Resources Canada


… even when the PV is located far from a substation.

                                   High PV penetration may not exceed voltage limits,
                                             even far from the substation




           Source: Natural Resources Canada. Integration of Photovoltaic Power Systems in High-Penetration Clusters for Distribution Networks and
           Mini-Grids, 2009.



©2011 Navigant Consulting, Inc.                                                 9
                                                                                                                                ENERGY
Results From Recent Work » NREL

Monitoring conducted by NREL showed no adverse conditions
occurred even in a high penetration solar community.


                                                  Results with Penetrations of 11-13%

                                                • No excessive service or
                                                  substation voltage due to reverse
                                                  power flow
                                                • Cloud transients did not
   Source: SunPower                               adversely affect the distribution
                                                  system
    • Anatolia SolarSmartSM Homes               • No indication that utility voltage
      Community, Rancho Cordova, CA               transients (capacitor switching)
    • Highly energy efficient homes with          caused PV systems to trip off-
      integrated PV systems                       line
    • 2 kW grid-connected PV systems
      with remotely monitored inverters
                                                Source: National Renewable Energy Laboratory. Impact of SolarSmart
                                                Subdivisions on SMUD’s Distribution System, July 2009.




©2011 Navigant Consulting, Inc.            10
                                                                                       ENERGY
Grid Benefits from PV?

Smart Grid could support better integration of distributed resources
and the utility distribution system, and provide grid benefits.

                                                                                 AMI facilitates communications
                                                                                  between utility information
                                                                                   systems and PV inverters


                                                                                   Information Flow
                            Inverter
                              Power            Electrical                                                            Utility
                                                                Smart
                                                Service                                    AMI                    Information
                             Control                            Meter
                                                 Panel                                                              Systems
                      Operator Interface
                                                                                      Power Flow

                                                Load                                                                Utility
                     Energy Storage            Circuits                                    DA                     Distribution
                          (ES)                                                                                      System


                                                                                                    DA helps manage
                                              Demand          DR curtails small amounts
      ES provides input to                                                                         circuit voltage and
                                              Response        of customer load for short
   inverter to compensate for                                                                    accommodate changing
                                                (DR)           periods of time (<2 hrs)
     PV variability (<8 hrs)                                                                           power flow


        PV system                 Smart Grid plus DR and ES      Functionality       Electrical System Components



©2011 Navigant Consulting, Inc.                                    11
                                                                                                         ENERGY
Recap


Recap

» Distributed PV will become a significant energy resource in utility
  systems.
» Distribution effects from high penetrations of PV may not be as
  significant as once thought.
» Smart Grid and integrated PV-storage could provide grid benefits.




©2011 Navigant Consulting, Inc.     12
                                                           ENERGY
Key
CONTACTS
                                                           Forrest Small
                                                           Director
                                                           Burlington, MA
                                                           (781) 270-8303
                                                           Forrest.Small@navigant.com




©2010 Navigant Consulting, Inc.
©2011                                                            13
Confidential and proprietary. Do not distribute or copy.                                ENERGY

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Small Pv Integration On Distribution Pv America 2011 04 04 2011

  • 1. Integrating PV on Distribution Forrest Small Director, Energy Practice Navigant April 2011 ENERGY
  • 2. Discussion Points Points to discuss today » Distributed PV increasing » Effects of high penetrations of distributed PV » Energy storage and distributed PV ©2011 Navigant Consulting, Inc. 1 ENERGY
  • 3. Growing PV Installed Base PV installations are increasing dramatically, and could soon exceed annual wind installations. Annual Renewable Energy Capacity Additions (MW per year) 12,000 10,000 Hydro 8,000 Geothermal 6,000 Landfill Gas Biomass 4,000 Solar 2,000 Wind 0 2010 2011 2012 2013 2014 2015 Forecasts assume: no renewal of existing federal tax credits after their current expiration dates; and no new federal stimulus program is created. Source: Navigant Consulting, Inc., January 2009. Note: Solar includes solar PV and CSP; Biomass includes biomass co-firing. ©2011 Navigant Consulting, Inc. 2 ENERGY
  • 4. Solar Ownership by Utilities A growing number of utilities want to install distributed solar on a large scale and put it in ratebase. Utility Programs for Distributed PV: Examples of Filings for Rate Basing Filed February 2010 Filed June 2008 Filed February 2009 3 MW 20MW in 2 years, Proposed 4Q 2008 500MW in 5 years3 Modified to 10 MW 5MW Filed February 2009 120MW in 5 years Filed March 2008 250MW in 5 years, Modified to 500 MW3 Filed November 2007 3.5MW in 5 years2 A Sempra Energy Utility Filed January 2010 Filed May 2008 Filed July 2008 Filed May 2009 80 MW 35MW Program 77MW in 4 years1 1.5 MW Additional Utility Programs; 3rd party or community owned Sacramento Municipal Utility District (1MW) , Portland General Notes: Electric (>2MW), Hawaii Electric Company (16 MW), City of 1. SDG&E: 55MW owned by utility Ellensburg (<1 MW), City of St. George (<1 MW) 2. ACE: 0.5MW will be utility owned and located on utility facilities. 3. PG&E and SCE 50% ownership ©2011 Navigant Consulting, Inc. 3 ENERGY
  • 5. Connecting PV on Distribution PV can be connected at three levels in the distribution system depending on the location and size of the installation. Distributed PV can by interconnected Substation interconnection assumes that the at three levels PV is physically located close to the substation, and a dedicated electrical connection to the low side bus would be Substation made. PV Primary Distribution interconnection assumes that the PV is connected directly to PV the distribution system, and is not integrated with a customer’s electrical Dedicated system. Distribution Metering Circuits Behind the Meter interconnection assumes PV the PV is integrated with a customer’s Net electrical system, and either net metering or Metering dedicated metering could be employed. “Behind the meter” Each point has a practical limit based on the impact of the PV on the distribution system. ©2011 Navigant Consulting, Inc. 4 ENERGY
  • 6. Challenges of High PV Penetration In addition to high cost, T&D concerns, communications, and regulatory challenges have limited the PV deployed. Challenges of High PV Penetration Voltage regulation (D) Transmission and Reverse power flow (D) Distribution Concerns Power fluctuation/frequency regulation (T) Harmonics (D) Lack of communications throughout the distribution system Inverter operating limits (e.g., IEEE 1547) Communications Limited ability to forecast PV resource for capacity planning Non-standard communications protocols Unstructured interconnection standards and ownership Regulatory and control in some states Business Models Lack of rate recovery and PV-“friendly” tariffs ©2011 Navigant Consulting, Inc. 5 ENERGY
  • 7. Transmission and Distribution Performance Concerns Past research had indicated that distribution performance concerns if PV exceeded certain penetrations. Recommended Limitations on PV Penetration Based On T&D Performance Concerns Recommendation T&D for Maximum PV Performance Description of Impact Penetration on Concerns Circuit Peak Load Adequate voltage regulation may be difficult due to changes in Voltage circuit load and power flow while PV is producing. Also of < 40% Regulation concern is voltage depression after a circuit restoration, when load is restored but PV systems have not come back online. Changes in PV output can cause the power flow on Reverse distribution circuits to vary, and in some high generation/low 5% to 30% Power Flow load cases, the flow could reverse. The variability of PV output due to cloud transients has been Power shown to create power fluctuations, and may be incompatible Fluctuation/ with the ramp rates of some central station generation. This 5% to 30% Frequency variability may require higher levels of system frequency Regulation regulation, increasing the cost of accommodating higher penetrations of PV. Source: Distributed Photovoltaic Systems Design and Technology Requirements, C. Whitaker, J. Newmiller, M. Ropp, and B. Norris, February 2008, and Navigant analysis, 2008. ©2011 Navigant Consulting, Inc. 6 ENERGY
  • 8. Power Quality Concerns As PV penetration increases, harmonics may become an issue that must be evaluated case by case. Effects of Harmonics and Limitations on PV Penetration Study Country Summary of Findings Germany (1) TV loads coupled w/ PV created higher distortion Australia (2) Limit found at ~ 18% penetration Denmark (3) Up to 30%; TV distortion > PV Japan (3) Line-end over-voltages on cluster of 550 houses Australia (3) 665 homes connected with no significant impacts Sources 1. Distributed Energy Resources and Waveform Distortion, Math Bollen, Christine Schwaegerl, and Sebastian Schmitt 2. Harmonic Impact of Residential Type Photovoltaic Inverters on 11kV Distribution System, A.A. Latheef, V.J. Gosbell, & V. Smith 3. The Effects of Harmonics Produced by Grid Connected Photovoltaic Systems on Electrical Networks, Abdulvahid Çelebi & Metin Çolak •In some studies non-linear loads in residences (e.g., televisions) had a greater impact on harmonics than PV inverters. •Distribution circuits with strong sources, shorter length and higher voltages tended to be less susceptible to excessive distortion. ©2011 Navigant Consulting, Inc. 7 ENERGY
  • 9. Results From Recent Work » Navigant Recent studies show that distribution voltage stays within system design criteria even with high penetrations of PV… On some circuits PV penetration as high as 30% does not exceed voltage limits 1.040 1.030 1.020 Peak Load PV Bus 1.010 Voltage Low Load PV Bus 1.000 Voltage within +/- 3% Voltage Voltage 0.990 Peak Load Minimum 0.980 Feeder Voltage Low Load Minimum 0.970 Feeder Voltage 0.960 Peak Load Maximum Voltage Drop 0.950 0.940 1% 9% 15% 30% DG Pentration Source: Navigant, Analysis of southwest investor owned utility, November 2010. ©2011 Navigant Consulting, Inc. 8 ENERGY
  • 10. Results From Recent Work » Natural Resources Canada … even when the PV is located far from a substation. High PV penetration may not exceed voltage limits, even far from the substation Source: Natural Resources Canada. Integration of Photovoltaic Power Systems in High-Penetration Clusters for Distribution Networks and Mini-Grids, 2009. ©2011 Navigant Consulting, Inc. 9 ENERGY
  • 11. Results From Recent Work » NREL Monitoring conducted by NREL showed no adverse conditions occurred even in a high penetration solar community. Results with Penetrations of 11-13% • No excessive service or substation voltage due to reverse power flow • Cloud transients did not Source: SunPower adversely affect the distribution system • Anatolia SolarSmartSM Homes • No indication that utility voltage Community, Rancho Cordova, CA transients (capacitor switching) • Highly energy efficient homes with caused PV systems to trip off- integrated PV systems line • 2 kW grid-connected PV systems with remotely monitored inverters Source: National Renewable Energy Laboratory. Impact of SolarSmart Subdivisions on SMUD’s Distribution System, July 2009. ©2011 Navigant Consulting, Inc. 10 ENERGY
  • 12. Grid Benefits from PV? Smart Grid could support better integration of distributed resources and the utility distribution system, and provide grid benefits. AMI facilitates communications between utility information systems and PV inverters Information Flow Inverter Power Electrical Utility Smart Service AMI Information Control Meter Panel Systems Operator Interface Power Flow Load Utility Energy Storage Circuits DA Distribution (ES) System DA helps manage Demand DR curtails small amounts ES provides input to circuit voltage and Response of customer load for short inverter to compensate for accommodate changing (DR) periods of time (<2 hrs) PV variability (<8 hrs) power flow PV system Smart Grid plus DR and ES Functionality Electrical System Components ©2011 Navigant Consulting, Inc. 11 ENERGY
  • 13. Recap Recap » Distributed PV will become a significant energy resource in utility systems. » Distribution effects from high penetrations of PV may not be as significant as once thought. » Smart Grid and integrated PV-storage could provide grid benefits. ©2011 Navigant Consulting, Inc. 12 ENERGY
  • 14. Key CONTACTS Forrest Small Director Burlington, MA (781) 270-8303 Forrest.Small@navigant.com ©2010 Navigant Consulting, Inc. ©2011 13 Confidential and proprietary. Do not distribute or copy. ENERGY