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Grid Modernization
Cape Light Compact Board Meeting
May 13, 2015
What are we talking about?
โ€ข The โ€œsmart gridโ€ or grid modernization = use of increased
remote data collection and automation to increase
efficiency of grid, allow for two-way power flows (not just
generator-> user), and increase reliability
Massachusetts Context
โ€ข DPU Grid Modernization Docket โ€“ began in 2012
โ€ข Extensive facilitated working group process
โ€ข Grid Modernization Order โ€“ June 2014
โ€ข Time Varying Rates Order โ€“ November 2014
โ€ข Grid Modernization Plan due โ€“ August 2015
โ€ข Grid Mod Pilots โ€“ ongoing
โ€ข CLC has been involved in all of the above
DPU โ€“ Grid Mod Objectives
1. Reduce the effect of outages
2. Optimize demand, which includes reducing system and
customer costs
3. Integrate distributed energy resources
4. Improve mobile workforce and asset management
New
England
Load
profiles
Time Varying Rates (TVR) Order
โ€ข Basic Service โ€“
โ€“ Default โ€“ Time of Use (TOU)
with critical peak pricing (CPP)
โ€“ Customer may opt out โ€“ flat
pricing with peak time rebate
(PTR)
โ€ข Contingent upon advanced
metering functionality
โ€ข Eversource expressed
concern about having TOU as
the default
Utility Approaches
โ€ข National Grid
โ€“ Calls their plan โ€œutility of
the futureโ€
โ€“ Want to be โ€œplatform
providerโ€ โ€“ like iphone
analogy
โ€“ More of an all of the above
approach
โ€“ AMI for ~ 15,000 in
Worcester
โ€“ Exploring batteries as well
โ€ข Eversource
โ€“ Focus on grid-facing
technologies
โ€“ Strong emphasis on
reliability
โ€“ Not convinced
residential/small business
customers will benefit from
TOU/advanced metering
โ€“ Point out that โ€“ 2% of their
customers = 80% of usage,
and 80% of their customers
= 6% of usage
Building for peak demand
When you use electricity matters
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22
13 14 15 16 17
$/MWh
Day, Hour
SEMA Real Time Electricity Prices - July 2013
2pm
Effects of demand response
Challenge of integrating renewables
Because we canโ€™t
control when
variable resources
(wind, solar, etc.)
produce electricity,
incorporating more
of them requires
the flexibility
offered by grid
modernization.
What could this mean for the Cape?
โ€ข Power supply โ€“ TOU?
โ€ข Greater focus on kW vs. kWh
โ€ข Geo-targeting
โ€ข Integration of renewables
โ€ข Energy storage (batteries)
โ€ข EVs?
โ€ข Crucial question โ€“ metering/data
availability?
Acadia Center Utility Vision
http://acadiacenter.org/wp-
content/uploads/2015/02/AcadiaCenter_UtilityVision_WebVi
ew_S.pdf
Next Steps for Compact
โ€ข Communicate Compactโ€™s position on Grid Mod to
Eversource
โ€ข Participate in Eversourceโ€™s Grid Mod Plan at the DPU
โ€ข Collaborate with other Cape and Vineyard
Stakeholders on Grid Modernization

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5.13.15 board meeting grid modernization

  • 1. Grid Modernization Cape Light Compact Board Meeting May 13, 2015
  • 2. What are we talking about? โ€ข The โ€œsmart gridโ€ or grid modernization = use of increased remote data collection and automation to increase efficiency of grid, allow for two-way power flows (not just generator-> user), and increase reliability
  • 3.
  • 4. Massachusetts Context โ€ข DPU Grid Modernization Docket โ€“ began in 2012 โ€ข Extensive facilitated working group process โ€ข Grid Modernization Order โ€“ June 2014 โ€ข Time Varying Rates Order โ€“ November 2014 โ€ข Grid Modernization Plan due โ€“ August 2015 โ€ข Grid Mod Pilots โ€“ ongoing โ€ข CLC has been involved in all of the above
  • 5. DPU โ€“ Grid Mod Objectives 1. Reduce the effect of outages 2. Optimize demand, which includes reducing system and customer costs 3. Integrate distributed energy resources 4. Improve mobile workforce and asset management New England Load profiles
  • 6. Time Varying Rates (TVR) Order โ€ข Basic Service โ€“ โ€“ Default โ€“ Time of Use (TOU) with critical peak pricing (CPP) โ€“ Customer may opt out โ€“ flat pricing with peak time rebate (PTR) โ€ข Contingent upon advanced metering functionality โ€ข Eversource expressed concern about having TOU as the default
  • 7. Utility Approaches โ€ข National Grid โ€“ Calls their plan โ€œutility of the futureโ€ โ€“ Want to be โ€œplatform providerโ€ โ€“ like iphone analogy โ€“ More of an all of the above approach โ€“ AMI for ~ 15,000 in Worcester โ€“ Exploring batteries as well โ€ข Eversource โ€“ Focus on grid-facing technologies โ€“ Strong emphasis on reliability โ€“ Not convinced residential/small business customers will benefit from TOU/advanced metering โ€“ Point out that โ€“ 2% of their customers = 80% of usage, and 80% of their customers = 6% of usage
  • 9. When you use electricity matters $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 1 4 7 10 13 16 19 22 13 14 15 16 17 $/MWh Day, Hour SEMA Real Time Electricity Prices - July 2013 2pm
  • 10. Effects of demand response
  • 11. Challenge of integrating renewables Because we canโ€™t control when variable resources (wind, solar, etc.) produce electricity, incorporating more of them requires the flexibility offered by grid modernization.
  • 12. What could this mean for the Cape? โ€ข Power supply โ€“ TOU? โ€ข Greater focus on kW vs. kWh โ€ข Geo-targeting โ€ข Integration of renewables โ€ข Energy storage (batteries) โ€ข EVs? โ€ข Crucial question โ€“ metering/data availability? Acadia Center Utility Vision http://acadiacenter.org/wp- content/uploads/2015/02/AcadiaCenter_UtilityVision_WebVi ew_S.pdf
  • 13. Next Steps for Compact โ€ข Communicate Compactโ€™s position on Grid Mod to Eversource โ€ข Participate in Eversourceโ€™s Grid Mod Plan at the DPU โ€ข Collaborate with other Cape and Vineyard Stakeholders on Grid Modernization