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US Smart Grids And PV Integration
 

US Smart Grids And PV Integration

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Presentation at Smart Grids Conference Salzburg, Austria, May 2009

Presentation at Smart Grids Conference Salzburg, Austria, May 2009

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    US Smart Grids And PV Integration US Smart Grids And PV Integration Presentation Transcript

    • Smart Grids in the US Smart Grids in the US and PV‐Grid Integration Smart Grids Conference Salzburg 2009 May 14, 2009 Navigant Consulting, Inc. 77 South Bedford Street Burlington, MA  01803 ©2009 Navigant Consulting, Inc. (781) 270‐8303 www.navigantconsulting.com
    • Navigant Consulting’s Energy Practice Navigant Consulting, Inc. (NCI) is a specialized consulting firm known  globally for its emerging energy technology and strategy expertise. Navigant Consulting Navigant Consulting Energy Practice Energy Practice • Publicly traded  Business  Power Systems,  Emerging  since 1996 Markets and  Planning &  Technologies &  g (NYSE: NCI) (NYSE NCI) Performance  Pe fo a e Pricing Energy Efficiency • 2008 revenues ‐ Improvement $810 million • 42 offices globally Clean Energy and Smart Grids Visioning Valuation and Planning and and Strategy Business Case Implementation ©2009 Navigant Consulting, Inc. 1
    • Agenda 1 Evolution of Smart Grids in the US 2 PV Integration with Smart Grids ©2009 Navigant Consulting, Inc. 2
    • Agenda 1 Evolution of Smart Grids in the US 2 PV Integration with Smart Grids ©2009 Navigant Consulting, Inc. 3
    • Drivers of US Smart Grids Forces including customer involvement, energy reliability and climate  change are driving the evolution of the Smart Grid. Smart Grids in the US Energy Reliability Customer Involvement Climate Change and Security • Mo e a d bette More and better  • Re e able e e y Renewable energy  • Po e uality to Power quality to  information for utilities,  integration support the future  customers and energy  • New end‐use products  economy service providers and services that  • A resilient electric  • Customers as energy  consume less fossil‐ power system to  partners based energy withstand and recover  • New energy products  • More efficient delivery  from natural disasters  and services system y and attack ©2009 Navigant Consulting, Inc. 4
    • Key Observations and Trends Several factors are influencing the evolution of the Smart Grid in the  United States. Evolutionary Factors y Key Observations and Trends y • Utilities are seeking regulatory security for recovery of Smart Grid  Regulatory/ investments Investment  • Some utilities are waiting for recovery before implementing any  Recovery y technology, others are experimenting first technology others are experimenting first • Standards bodies are racing to keep up with leading utilities and  Standards  the vendors they have selected Development • New models are being employed to keep pace with the changes in  technology • Value analyses and business cases are starting to consider more  Value complex benefits for multiple stakeholder groups Clarification • Companies are beginning to consider new approaches to evaluating Companies are beginning to consider new approaches to evaluating  investments in system technologies The Federal  • Grants will support deployment of Smart Grid technologies and  Stimulus  Stimulus systems Package • Demonstrations will help explore advanced functionality  ©2009 Navigant Consulting, Inc. 5
    • Smart Grid Deployments Utilities across North America are engaged in a number of pilots and  system implementations. eployment Technology Smart Grid  Implementation Implementation Full De Scale on Demonstratio S Technology Pilot Integrated Pilot Pilot/D Individual Technology Integrated Systems Scope ©2009 Navigant Consulting, Inc. 6
    • Government Activity and Support With $4.5 B in funding support, the Federal Stimulus package will be  an unprecedented driver for Smart Grids development in the US. American Recovery and  Reinvestment Act • $4.5 B in federal  investment for Smart  State Initiatives State Initiatives Grid development • Smart Grid  • California Investment Grant  • Pennsylvania Program • Illinois • Smart Grid  • Mi hi a Michigan  Government  G t Demonstrations Activity Research and  Development NARUC‐FERC Smart Grid Collaborative ©2009 Navigant Consulting, Inc. 7
    • Agenda 1 Evolution of Smart Grids in the US 2 PV Integration with Smart Grids ©2009 Navigant Consulting, Inc. 8
    • Integrating PV with Smart Grids  Navigant Consulting conducted a large multi‐client study to examine  the opportunities created by integrating PV with Smart Grids. Does PV‐Smart Grid :  • Enable higher penetration of  PV? Smart Grid  PV Drivers • Help PV provide value for the Help PV provide value for the  Drivers grid?  • Create new business  opportunities? ©2009 Navigant Consulting, Inc. 9
    • Smart Grid‐PV Framework Smart Grid systems support better communications and control  between distributed resources and the utility distribution system.  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  feeder 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 ©2009 Navigant Consulting, Inc. 10
    • Smart Grid Enables More PV on Distribution Feeders The Smart Grid enables higher penetrations of PV by addressing key  technical challenges.  Can the PV‐Smart Grid enable higher penetrations of PV? Can the PV‐Smart Grid enable higher penetrations of PV? • Barriers to high penetration of PV include: − Technical T&D challenges g − Communications challenges − Regulatory and business model challenges  • Th S The Smart Grid addresses key technical T&D challenges t G id dd k t h i l T&D h ll • By addressing the technical issues will allow utilities to accept  more PV on distribution feeders without compromising  operating performance and service quality ti f d i lit Yes. Smart Grid could support more PV on distribution feeders. ©2009 Navigant Consulting, Inc. 11
    • Increased Distributed PV Penetration NCI estimates that rooftop PV penetration could be significantly higher  by 2020 as a result of addressing T&D barriers with Smart Grid. The Smart Grid Enables Cumulative Installed Capacity p y Higher Penetration of PV  Rooftop PV • Addressing technical challenges  20,000 could result in: • hi h higher net metering caps t t i 16,000 16 000 • better interconnection  MWpDC 12,000 standards and processes • more prevalent time of use  p M 8,000 8 000 tariff options • These changes simplify  4,000 interconnection of PV and improve  its economics, increasing the  its economics increasing the 0 projected installed capacity by over  2010 2015 2020 60% by 2020. Rooftop PV Penetration without Smart Grid Rooftop PV with Smart Grid ©2009 Navigant Consulting, Inc. 12
    • High Penetrations of PV Adds New Value Distributed PV can provide benefits in key areas. Combining this  resource with energy storage enhances its value. Can the PV‐Smart Grid help PV provide value for the grid? Can the PV Smart Grid help PV provide value for the grid? • The greatest value of PV is derived from avoiding central  generating capacity and avoided energy costs • Energy storage is a key for enhancing the value of PV in a Smart  Grid context • When concentrated, PV can provide benefits related to grid  e o e ae , a p o i e e e i ea e og i optimization • PV is cost effective assuming continuation of rebates and ITC  credits  however, the incremental value of Smart Grid is not  credits – however, the incremental value of Smart Grid is not enough to overcome the loss of incentives Yes. PV in high penetrations can provide grid benefits. ©2009 Navigant Consulting, Inc. 13
    • Most Promising Areas of Opportunity NCI identified the three most promising areas of business  opportunity created by the PV‐Smart Grid. Spinning  S i i T&D Capital  Reliability Reserve Deferral 3% 3% 3% Power Quality Emissions  1% Reductions 3% Grid Optimization Grid Optimization Coordinated control of PV inverters,  primarily for regulating feeder  voltage, may also provide utility or  Central  others ability to trip PV off in an  Generation  active mode  Capacity  Deferral 28% Central  Generation  Energy Offset 59% Smart Capacity Firming Meet end‐use energy demand by  coordinating on‐site PV and energy  DG PV Power Plant storage with demand response and  Aggregate distributed PV systems  potentially coordinate net end‐use  across area or region into a reliable  demand with utility requirements d d ith tilit i t and predictable energy resource d di t bl ©2009 Navigant Consulting, Inc. 14
    • Unlocking Value Could Create New Business Opportunities By leveraging the Smart Grid and high penetrations of distributed  PV, new opportunities to unlock value can be created. Can the PV‐Smart Grid create new business opportunities? Can the PV Smart Grid create new business opportunities? • The analysis reveals three main areas for new value: • Deferred/avoided energy and capacity from traditional  / gy p y generation • Smart capacity firming by combining PV with energy storage • Grid optimization through coordinated control of PV Grid optimization through coordinated control of PV  inverters • Tapping this value will require enhancements to technology,  policy and business models policy and business models Yes. PV‐Smart Grid could create new business opportunities. ©2009 Navigant Consulting, Inc. 15
    • Enhancements to Achieve Benefits Achieving the benefits highlighted in the study requires  enhancement of technology, policy and business models.   Technology Policy Business Models Business Models • Technical/business  • Eligibility of  • Tariffs and pricing  requirements for  integrated  mechanisms that  coordination of  di i f PV/energy storage  PV/ monetize the  i h AMI and PV systems for  benefits provided  • Functional  state/federal  by distributed PV requirements for  f rebates and  rebates and •S Service offerings to  ff leveraging PV as a  Investment Tax  facilitate  grid resource Credits participation of PV  • Modification of Modification of  as a grid resource as a grid resource technical standards  (e.g., IEEE 1547) to  allow PV inverters  to provide grid  support ©2009 Navigant Consulting, Inc. 16
    • Contact Information Forrest Small Director, Energy Practice Burlington, MA 01803 Burlington MA 01803 +1 781‐270‐8303  Forrest.Small@navigantconsulting.com ©2009 Navigant Consulting, Inc. 17