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2.2_Microgrids PUC Regulatory Issues_Winka_EPRI/SNL Microgrid

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Presentation from the EPRI-Sandia Symposium on Secure and Resilient Microgrids: Microgrids PUC Regulatory Issues, presented by Michael Winda, NJ BPU, Baltimore, MD, August 29-31, 2016.

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2.2_Microgrids PUC Regulatory Issues_Winka_EPRI/SNL Microgrid

  1. 1. Microgrids PUC Regulatory Issues Back to the Future Michael Winka Sr Policy Advisor Baltimore MD August 29, 2016
  2. 2. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | First Issue Are you in a Vertically Integrated State ? regulates generation, transmission and distribution in their state Or An Energy Competition State ? regulates some transmission and distribution in their state
  3. 3. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | State PUC regulate customers rates for the investment owner/private utilities Balance the needs of Utilities and All Customers Protect customer – Protect the public interest Ensure the delivery of adequate, safe, reliable Services at fair and reasonable rates for all customers Public Utility Commission’s Mission Statements
  4. 4. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | 3 Definition of DER or DG Distributed energy resources consists of a range of smaller-scale and modular generation and storage devices designed to provide electricity, and sometimes also thermal energy, in locations close to consumers or end user. Definition of Microgrid A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode. Standard USDOE Definitions for DER and microgrids Most States do not define DER or microgrids
  5. 5. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | Level 1 or single customer microgrid. This is a single DER system such as a PV system, combined heat and power (CHP) or fuel cell system that is serving one customer and that is connected to and can island from the distribution grid. Level 2 or single customer – campus setting. This is a single or multiple DER systems with multiple buildings, but controlled by one meter at the point of common coupling that is connected to and can island from the distribution grid. Level 3 or multiple customers / advanced microgrid. This is a single or multiple DER system that serves several different buildings/customers that are not on the same meter or on the same site as the DER. An advanced microgrid would be designed with one point of common coupling (PCC). The individual buildings/customers may be independently connected to the larger distribution grid and through the microgrid PCC.. Not all Microgrid are the Same - Classification System
  6. 6. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | N.J.S.A. 48:3-51 - Definitions Off-site end use thermal energy services customer (aka CHP) On-site generation facility (aka DG) N.J.S.A. 48:3-77.1 Utilization of locally franchised public utility electric distribution infrastructure.
  7. 7. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | Types of MG Distributed Generation or Distributed Energy Resources
  8. 8. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | - 10 20 30 40 50 60 70 80 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MillionMegawatt-hours(MWh) Year New Jersey Net In-State Generation and Imported Electricity, 1990 - 2013 Net In-state(70% increase) Imported (70% decrease) Linear (Imported (70% decrease))
  9. 9. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | 1% 8% 33% 56% 2% 0.1% 3% 43% 51% 2% 0.3% 3% 42% 52% 2.3%1% 4% 44% 47% 4% 0% 10% 20% 30% 40% 50% 60% Petroleum Coal Natural Gas Nuclear Renewables New Jersey Electricity Generation by Fuel Type (%), 2011-2014 2011 2012 2013 2014
  10. 10. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | New Jersey’s Clean Energy Program EE reduction of Electric Sales – 0.5% annually total cumulative reduction 7%
  11. 11. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | New Jersey Renewable Energy Portfolio Standard
  12. 12. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | DER Number MW CHP/FC total 219 2,900 CHP/DG DG 98 347 CHP/FC renewable 19 31 PV total 38,983 1,535 PV Behind the Meter 38,855 1,203 PV Grid Supply 128 332 TOTAL DER 39,100 1,913 Current New Jersey CHP/FC and DER facilities
  13. 13. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey |
  14. 14. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | The advance microgrid can provide benefits to the grid 1. Produces electric and thermal energy for its customers. 2. Provides ancillary services and reduce the peak demand of the grid. 3. Can defer related investment in distribution system upgrades. 4. Produces and delivers energy more efficiently. 5. Reduce outages which can enhance resiliency and reliability. The advanced microgrid receives benefits from the distribution grid. 1. If not operating additional energy will need to be supplied by the grid. 2. Upgrades can be deferred but not fully avoided. 3. If not operating environment impacts may increase at peak times. 4. If not properly managed could reduce resiliency and reliability.
  15. 15. Printed2014/03/0601:59PMEasternStandardTime State of New Jersey | RAP DER Tariff Guidance 1. Customers should be able to connect at the cost of connecting 2. Customers should pay for grid services based on what they use 3. Customers should be fairly compensated for the value of the power they supply 4. Tariffs should balance the interest of all shareholders NARUC DER Tariff Guidance 1. Net metering 2. Valuation 3. Value of Resource 4. Value of Service 5. Transactive Energy 6. Demand Charges peak/nonpeak 7. Fixed Charges 8. Standby/backup Charges 9. Interconnection /metering fees
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