SEPA is an educational non-profit organization that facilitates collaboration across the electric power sector to support utilities' integration of distributed energy resources like solar power. The document discusses several topics including SEPA's role and mission, trends in solar photovoltaic adoption, emerging utility strategies to integrate solar, rate design strategies, energy storage applications, and the future of the electric industry. It provides an overview of issues utilities are facing and strategies they are pursuing in adapting their business models to increasing distributed energy resources on the grid.

1. Integration of
Renewables into the Grid

2. About Us
SEPA’s mission is to facilitate the utility industry’s
smart transition to a clean energy future through
education, research, and collaboration.
www.sepapower.org

3. www.sepapower.org
Neutral Platform for
Stakeholder Collaboration
Words most
frequently used to
describe SEPA:
• Trustworthy
• Balanced
• Strategic
• Collaborative
• Accessible
• Informational
• Knowledgeable
• Friendly
2015 survey with 800 member
and non-member responses

4. www.sepapower.org
The “Smart” Transition

5. Solar Snapshot

6. www.sepapower.org
Solar grows;
utilities respond
Mainstream Utility
Solar Strategies:
• Large Scale Solar
PV in IRPs
• Redesigning Rate
Structures
• Exploring
Community Solar

7. www.sepapower.org
2015 Pricing
Sources: SEPA “2015 Utility Solar Marketplace Snapshot,” Data from EnergySage & Mercatus
US pricing varies significantly by state, and is generally higher than many countries
by as much as 50% in the residential market
• Residential
pricing has been
quoted as low
as $2.50/W
• FirstSolar
expects $1/W
for large scale
by 2017

8. www.sepapower.org
Community solar
8
Customer Benefits
Utility Benefits
• Increase customer access
• Ability to hedge costs
• Portability within utility service a
• Leverages economies of scale
• Can be strategically sited
• Proactive customer engagemen
• Support the local PV industry
• Opportunity to gain understandin

9. www.sepapower.org
Rate Reform Strategies

10. Continued Storage Growth

11. www.sepapower.org
Storage: Multiple Values

12. www.sepapower.org
Storage:
Utility Approaches

13. Business Model Evolution

14. www.sepapower.org
www.SEPA51.org

15. Julia Hamm
jhamm@sepapower.org
202-559-2025
HEADQUARTERS
Smart Electric Power Alliance
1220 19th St NW, Suite 800
Washington, DC 20036
Contact Info

16. SEPA is an educational non-profit
(501 c3)
Membership
Our unique mission is aimed at supporting
utilities integration of solar, and other
distributed energy resources, through
educational events, research publications,
& tailored consultations.
550+
Utility
> 90%
of
installed
solar
capacity
550+
solar industry
&
stakeholder
About SEPA

17. Education
SEPA Products &
Services
Research
Advisory
Our Work

18. Transforming the grid
Key Themes & Subject Matter
18
• Market trends
• Rate reform and tariff design
• Program design, including
customer engagement
• Utility Scale Solar & Storage in
Integrated Resource Planning
• Distributed Resource Planning
• Distribution grid integration
• Wholesale markets integration
• Asset management
• Energy analytics
• Clean Power Plan Implementation
Adapting the utility business model
Proactively engaging consumers
Diversifying energy portfolios

19. Market Trends
Solar’s Big Decade
• In the past ten years, the cost of solar has fallen
by about 80% and worldwide growth has
boomed.
• In the U.S., solar capacity has expanded from
approximately 500 MW in 2005 to about 23 GW
in 2015, and an estimated 60-70 GW by 2020.
19

20. 2015
6,193
Source: SEPA, GTM Research
Cumulative: 22,488 MW
Solar Growth

21. Installed PV Costs – 2014-2015
21

22. Cost of Residential PV
in Selected States
22
Source: Energy Sage
Strong solar policy does not equate
to lower costs to the consumer

23. How Competitive Is Solar?
23
Source: “Lazard’s LCOE Analysis – Version 9.0” (November 2015)

24. Forecasts of Customer-sited
PV Costs
24
Source: Lazard's Levelized Cost of Energy Analysis - Version 8.0 (Nov 2014)

25. Source: Sioux Valley Energy
Solar: Not The Perfect Utility
Resource…

26. All Solar Markets are Growing
26
Source: SEPA 2014 Solar Market Snapshot www.sepatop10.org

27. Where Utilities Are Active in Solar
27
Community Solar
(maturing)
Utility scale in
generation
portfolio
(maturing)
Customer-sited
(emerging)

28. Source: GTM Research, SEPA Analysis
• ~80% of customers interested in
solar ownership are precluded due
to non-policy constraints.
• Suggests 50 GW of demand unmet1
1 10 GW met demand / (20% met demand/total market ) = 50 GW
Community Solar An Alternative
To Rooftop PV

29. Example:
Orlando Utilities Commission
29
• 1 kW blocks, up to 15 kW at
$0.13/kWh fixed based on actual
plant generation; net metered
$.025/kWh (residential) or $.015/kWh
(commercial) more than current rates
• Term: 25 years
• No performance guarantee
• Customers pay a $50 deposit
(refundable after 2 years)
• Phase I: 400 KW
• Fully subscribed in 6 days
Offer
Response

30. Utility Residential PV Ownership
Strategies
30
• 10 MW = 3,000 customers
• Customers get a $30 monthly bill
credit for 20 years (lease payment
for rooftop real estate)
• Customers get a fixed monthly
rate for 25 years
• 3.5 MW = 600 customers
• Solar Host – CPS leases roof from customer –
10 MW cap - 4,000 applications in first month
• Program managed by third party provider

31. Examples of Utilities Venturing
into “Solar Plus”
• San Diego Gas & Electric solar
plus storage microgrid boosts
system reliability
• Steele-Waseca Co-op Electric –
Community Solar + Load
Management + Load Growth!
• Green Mountain Power –
offering customers purchase or
lease of Tesla Powerwall (goal:
peak demand reduction)
31

32. Where We Are Today
32
At today’s costs, modifying retail rate design can impact solar deployment economics
Solar LCOE Range varies by orientation and location

33. Where We Are Going
33
*With the ITC now extended at 30%, solar will be economic under virtually all rate designs
Solar LCOE Range varies by orientation and location

34. Increased Expectations of Utilities
34
Legacy
Expectations
● Safe
● Reliable
● Low Cost
● Enabling Economic Development
● Stable and Predictable Costs

35. 35
Legacy
Expectations
New
Demands
● Safe
● Reliable
● Low Cost
● Enabling Economic Development
● Stable and Predictable Cost
● Greater Grid Resiliency
● Proactive Environmental Stewardship
● Support for Consumer Choice, including Self Generation
(Solar)
● Support for Electric Vehicles
Increased Expectations of Utilities

36. Public Expectations of Utility are
Increasing
36
Legacy
Expectations
New
Demands
Often
Forgotten
● Safe
● Reliable
● Low Cost
● Enabling Economic Development
● Stable and Predictable Cost
● Resilient
● Support for DSM
● Proactive Environmental Stewardship
● Support for Consumer Choice, including Self
Generation
● Support for Transportation Infrastructure
● Obligation to serve
● Existing (& Unquestioned) Cross-Subsidization
● Impact on Capital Cost & Availability
● Data Availability, Security, & Ownership

37. A Proactive Utility Strategy
Passive Player
Trusted Energy
Advisor
Trusted Energy
Partner
37
Transitioning from a passive player …
…to a proactive partner for customers adopting solar and other DER

38. Solar Is Pushing Change
38

39. SEPA’s 51st State
Created to provide a collaborative platform
across the power sector to discuss the future
of the electric industry. Designed as an
alternative to today’s contentious debates.
The 51st State is a safe space for experts and
industry leaders to present, sound out, and
provide feedback on utility sector evolution.
39

40. 40
2015 Concepts
Incremental Movement
● Refresh the regulatory construct
● Shift towards innovative rate
designs
● Clearly articulate the roles of the
monopoly utility
● Focus on enabling customer
adoption through:
1. Improved interconnection
standards
2. Real-time information for
consumers
Paradigm Shift
● Create a platform to connect
consumer-sited assets
● Shift the role of utilities to grid
investment and maintenance
● Place an independent third party
in charge of planning and
operations
● Include societal impacts in cost-
benefit calculations
● Turn customers from passive
“takers” to proactive decision-
makers in the electricity
marketplace (“prosumers”)

41. Putting it All Together:
Developing a Roadmap
41

42. In Conclusion
• Solar growth will continue, based on increasingly compelling
economics, across all market types. But solar won’t be a mature and
truly valuable power resource until it becomes smart…
• The next constraint facing solar adoption will be integration
challenges – engineering and economic.
• Utilities are learning how to turn this “threat” into an opportunity –
for both customers and shareholders.
• Solar PV will be one part of a clean energy portfolio, which will
include a mix of bulk power and distribution system scale resources.
42

43. Thank You!
43
Jennifer Szaro
Senior Director of Programs
Smart Electric Power Alliance
jszaro@sepapower.org
www.sepapower.org
www.sepatop10.org
www.sepa51.org

44. • Step 1
–Identify Service
Type
• Step 2
–Evaluate existing
Service Capacity for
PV Export
• Step 3
–Identify Local Area
Network’s Minimum
Load Condition
NYC Grid Ready Project

45. Upcoming Initiatives - CECONY
CUNY NY Solar Map
Grid Ready ProjectSummary
This building is on a spot or isolated
network. In order to install the PV
system size analyzed in Grid Ready,
grid upgrades may be required to
accommodate potential solar export.
Please review the NYC Grid Ready
Fact Sheet for more information on
spot networks and average costs
incurred by the customer/developer to
install a PV system.
49 5th
Avenue,
Manhattan,
NY 10003
Solar
Potential
Analyzed
275 kW
Is the building on a Spot or Isolated
Network?
Is the building’s service capacity too small
to accommodate potential PV export?
Is the minimum load in the surrounding
area too small to accommodate potential PV
export?
Interconnection Preliminary Review
45

46. UTILITY INTERVIEW
FINDINGS
46

47. UTILITY TRENDS
47
1. Solar PV (and smart inverters)
2. Energy Storage
3. Electric Vehicles
4. Demand Response
5. Non-Solar DG
6. Energy Efficiency
Technologies of
Concern
• Traditional siloes with some cross-functional
coordination vs. dedicated DER planning
departments
• Distribution engineer responsibilities
becoming more complex
• Most utilities are short-staffed in this area
Organizational
Structure

48. EXTERNAL PRESSURES
48
Customers/Developers
Maintain Grid
Reliability
Faster
Interconnection
Times
Ease Penetration
Limits
Compensation
for Grid Services
Regulators
Maintain Grid
Reliability:
Mandates
Interconnection
Timelines
DER Plan
Mandates
Market/Rate
Restructuring

49. UTILITY DER INTERCONNECTION PROCESSES
Receive paper
interconnection
applications
Apply basic screens
(“rules of thumb”)
Allow/reject interconnections
one at a time
Upgrade equipment (if
needed)
49
Conventional Approach
Emerging Approach
Provide map of preferred
interconnection locations
Receive online
interconnection
applications
Run full distribution
grid model for DER
“clusters”
Plan for optimal mix of
mitigation solutions

50. SOFTWARE AND IT SYSTEMS
•EMS, DMS, OMS,
DRMS, DERMS
•SCADA data,
customer AMI
data, DER meter
data (MDMS)
•Traditional static
tools vs.
emerging
dynamic tools
•Details on DERs,
transformers,
capacitor banks,
etc. (GIS)
Distribution
Infrastructure
Data
Distribution
Modeling
Software
Real-Time
Management
Systems
Interval Metering
Data
50
• Difficult to fully integrate all these components
DER Forecasting Tools

51. INDUSTRY GAPS
51
Methodology
Standard approach for
distribution planning, taking DER
deployment into account (how to
define “optimal”?)
Best practices for modeling
(timescale, which impacts, which
mitigation solutions, etc.)
What level of DER
control/aggregation is
appropriate?
Tools
Comprehensive time-series
distribution system models that
are easy to use and automated
Accurate DER device-level models
(e.g., smart inverters)
Financial/rate models tied to
distribution/DER planning
Solutions for widespread DER
monitoring/control

52. • Planning vs. Operations
• Most utilities struggling to meet operational needs and
comply with regulations
• Most are not developing comprehensive plans or
streamlining processes for the future
• Data/Modeling/IT
• Gathering/updating distribution system data
• Ensuring accurate DER modeling
• Integrating software/IT systems
• Coordination/Collaboration with Customers/Developers
• Guiding projects to preferred interconnection locations
• DER project design to minimize grid impacts
TOP CHALLENGES
52

53. SUMMARY OF DER PLANNING PROCESSES
53
Utility 1 Utility 2 Utility 3 Utility 4 Utility 5
Key
Drivers
Regulatory
Compliance
Regulatory DER
Mandates
PUC DER
Mandates
PUC DER &
Reliability
Mandates
Reliability
Mandates
None
Operational
Necessity
Inter-
connections
Inter-
connections
Reliability; Inter-
connections
Reliability; Inter-
connections
Inter-
connections
Metho
dology
Timeline for DER
planning
Short-term
Early 2016
Short-term
July 2015
Short-term Mixed Not set
Incentivizing
preferred
interconnection
locations
Somewhat Somewhat Yes Somewhat No
Cost
recovery/rate
restructuring
Under
consideration
Yes
Under
consideration
No specific plans
Under
consideration
Tools
Maps of
preferred
interconnection
locations
Somewhat Yes No Somewhat No
Advanced DER
modeling tools
Most Developed
Some
Development
Some
Development
Most Developed
Some
Development
Active DER
management
Pilots Most Advanced Demo-stage Most Advanced Demo-stage

54. DETAILS OF DER PLANNING PROCESSES (1)
54
Utility 1 Utility 2 Utility 3 Utility 4 Utility 5
Key
Drivers
Regulatory
Compliance
Regulatory DER
Mandates
PUC DER
Mandates
PUC DER &
Reliability
Mandates
Reliability
Mandates
None
Operational
Necessity
Interconnections Interconnections
Reliability;
Interconnections
Reliability;
Interconnections
Interconnections
Method
ology
Timeline for DER
planning
Short-term
Early 2016
Short-term
By July 1, 2015
Short-term
Will submit DER
plan under PUC
proceeding in the
near future
Mixed
Jurisdictions have
different planning
requirements,
some include DERs
Not set
No specific
timeline
Incentivizing
preferred
interconnection
locations
Somewhat
Interconnection
studies
differentiate costs
by location
(indirect guidance
for customers)
Somewhat
Provides maps of
preferred
interconnection
locations
Yes
Strategic Solar
Locations come
with extra
incentives
Somewhat
Currently provides
maps of
"restricted"
circuits; may
provide more
detailed guidance
in the future
No
Does not provide
any specific
guidance on
interconnection
locations
Cost recovery/rate
restructuring
Under
consideration
Conscious of DER
rate impacts and
considering future
rate design
options
Yes
NEM 2.0
proceeding
underway
Under
consideration
Rate restructuring
likely under PUC
proceeding
No specific plans
NEM tariff is only
rate structure
currently for
behind-the-meter
DERs
Under
consideration
Assessing current
rate structure and
design

55. DETAILS OF DER PLANNING PROCESSES (2)
55
Utility 1 Utility 2 Utility 3 Utility 4 Utility 5
Tools
Maps of preferred
interconnection
locations
Somewhat
Recent RFO
identifies optimal
solar
interconnection
locations
Yes
Preferred
interconnection
location maps
publicly available
No
Third-party
provides solar
installation
mapping for public
view; but contains
no interconnection
info
Somewhat
Public can view
distribution
mapping of
restricted circuits;
working on further
guidance
No
Advanced DER
modeling tools
Most Developed
System-wide
distribution model;
tools for measuring
and forecasting
solar output
Some Development
Does T&D
modeling, but no
system-wide
distribution model;
uses static
distribution
modeling tools
Some Development
No DER forecasting;
sophisticated
internal modeling
tools but no
system-wide
distribution model
and tools need to
be integrated
better
Most Developed
System-wide
distribution model
and DER
forecasting tools;
DOE grant for
modeling advanced
voltage reg.
strategies and
upgraded control
schemes
Some Development
Runs offline
GIS/DMS for
interconnection
studies in some
cases;
conducting high
solar penetration
impact studies on
bulk generation
and T&D system-
wide
Active DER
management
Demo-stage
Multiple storage
demos; establishing
EV plans; testing IT
systems to better
integrate DER data
Most Advanced
Smart inverter
standards;
substation-level
energy storage; EV
and demand
response
integration; DERMS
Demo-stage
Microgrid projects;
AMI pilot
Most Advanced
Planning auto-
sectionalizing /
restoration
schemes w/ all
customer DER
mapped; testing
smart inverter
functions
Demo-stage
Developing DER
interoperability
standards; adapting
DMS to handle DER

56. PROACTIVE DER
PLANNING
FRAMEWORK
56

57. Does not take DER deployment into account
Forecast Load Growth
Model Circuit Impacts (Static)
Implement Lowest-Cost Solutions
Calculate Rate Impacts
STATUS QUO FOR UTILITY DISTRIBUTION
PLANNING
57

58. Forecast Load Growth
Forecast DER Deployment
Model Full T&D Grid Impacts (Dynamic)
Implement Optimized Solution Mix
Recover Costs Through Innovative Rates
NEW APPROACH FOR PROACTIVE UTILITY
DISTRIBUTION PLANNING
58

59. Forecast Load Growth
Forecast DER Deployment (Feeder by Feeder)
Model Full T&D Grid Impacts (Dynamic)
Implement Optimized Distribution Solution Mix
Calculate Rate Impacts
INTEGRATING PROACTIVE DISTRIBUTION
PLANNING INTO THE IRP PROCESS
59
Macroeconomic Forecast
Forecast DER Deployment (Entire System)
Bulk Generation/Transmission System Modeling
Determine Optimal Gen/T&D Resource Portfol
Recover Costs Through Innovative Rates
Distribution Planning Integrated Resource Planning

60. GRID MODELING HAS THREE PARTS
6 May 2015
60
Power Flow
State Estimation
T, D Asset
Model
Analytics
Optimization
GIS
SCADA
Load Research
AMI
Monitoring & Sensors
Existing Models
Scenarios

61. GRID MODELING THEN & NOW
6 May 2015
61
T and D
Planning
Operations
Dynamic
Optimization
Full system
Full DER
T or D
Engineering
Design
Snapshots
Heuristic
Feeders
Limited DER
DMS Grid Models
Operations
Oracle, GE,
Schneider/Telvent

62. Find out how utilities are
rethinking everything to
embrace a new distributed
energy grid.
Download at:
one.btm.report
Beyond the Meter
The Potential for a New Customer-Grid Dynamic

63. Discover our methodology for
quantifying the locational
value of deployed DER grid
assets.
Download at:
two.btm.report
Beyond the Meter
Addressing the Locational Valuation Challenge
for Distributed Energy Resources

64. www.sepapower.org

65. What the Community Solar
Customer Wants
Based on a survey of 2,000
customers and over 250 small
businesses, we uncover what
community solar customers
really want out of their program.
Download at:
communitysolar.report

66. 2015 Utility Solar Market Snapshot
Based on proprietary data
from over 350 utilities, find
out what utilities are doing
from rate reform to
community solar programs,
advanced grid tech
deployment and more.
Download at:
utility.report

67. www.sepapower.org
SEPA’s transition from
“Solar” to “Smart”
The term “smart” typically refers to advanced technology. But
smart transition will require…
• Proactive consumer engagement
• Enhanced system planning
• Strategic commitment across the
utility organization

68. www.sepapower.org
Living in fear
of “the duck”

69. www.sepapower.org
Advanced grid tech
deployments underway
Source: 2015 Solar Market Snapshot, SEPA

70. www.sepapower.org
A proactive DER
planning approach
Source: Planning the Distributed Energy Future, SEPA and Black & Veatch

71. www.sepapower.org
DER capabilities
Source: Distributed Energy Resources Capabilities Guide, SEPA

72. www.sepapower.org
Valuation of DER of
Distribution Assets
Source: Addressing the Locational Valuation Challenge for Distributed Energy Resources,
SEPA and Nexant

73. www.sepapower.org
Utilities thinking
“Beyond the Meter”
Source: Beyond the Meter: The Potential for a New Customer-Grid Dynamic, SEPA

74. Aligning Solar and Utilities
Sampling of Utility Members
74

75. Aligning Solar and Utilities
Sampling of Non-Utility Members
75

76. SEPA Events, Products, & Services
76

77. Planning for an Uncertain Future
77
The future of the
utility industry is
uncertain; whether
current conditions
continue or a push
towards a greener or
more interactive
future awaits, utilities
must plan and
prepare for
tomorrow
NREL’s Electric System of the Future

78. SEPA / NREL Collaboration
• SEPA and NREL have partnered on a research
initiative to dive into how a utility’s functions across the
organization are impacted by this future uncertainty
• Focus on Rapid Growth of DER Future
• Provides distinct operational challenges compared to
Business as Usual
• Being experienced today in many jurisdictions
• Goal: identify steps that can be taken today to prepare
for the future, regardless of what that may entail
• Expected publication at end of month
• Publicly available on both SEPA and NREL websites
78

79. Solar Impact Areas
79
SolarImpactAreas
Long-Term Planning
Impact to generation, transmission,
and distribution long-term planning
processes, including net load
impacts
Operations
Impact to generation, transmission,
and distribution real-time operations
and technology deployment
IT, Data, & Communications
Impact to data systems, including
information technology, data
gathering, data processing,
communications, etc.
Utility Interactions with
Customers
Impact to systems, processes, and
procedures used to interact with
customers, both as ratepayers and
potentially as self-generators
Utility Business Models
Impact to how utilities run their
business, including which products
and services are offered to
customers, and how utilites collect $
Distributed Solar impacts utilities in many ways…

80. Utility Impact Areas
80
…across a host of different utility functions, roles, and responsibilities

81. Integration of Planning & Operations
81
• Increasing integration within the utility can lead to stronger long-term planning
processes that better account for the impacts of DERs
• Proactive planning can lead to better operational visibility at the edge of the
grid
• Operational visibility translates into prevention of system issues before they
happen, and quicker resolution when issues do arise
• Constant feedback loop

82. Least Regrets Strategies
Long-Term Planning
82
Develop supply- and demand-based distribution
plans that roll up into the IRP
Treat DERs as both fixed inputs and as selectable
resources in the IRP
Integrate Supply, Demand, Transmission, and
Distribution planning processes into an
overarching process
Discuss a long-term distribution system
investment plan with regulators

83. Least Regrets Strategies
Operations
83
Update standard equipment list to support
distribution integration needs and
infrastructure requirements
Deploy advanced inverters system-wide
Deploy sub-meters for distributed
generation resources

84. Least Regrets Strategies
IT, Data, & Communications
84
Develop a long-term IT, data, and communications
plan that is tied into other planning processes
Strategically deploy real-time communications
infrastructure, AMI, etc.
Move towards automated data management and
analytics

85. Least Regrets Strategies
Utility Interactions with Customers
85
Create a “green team” for the customer call center
Enable sophisticated customer energy portals
Investigate new rate and pricing models
Create routine customer workshops on energy
consumption, new in-home technologies, and
other topics of interest

86. Least Regrets Strategies
Utility Business Models
86
Move towards holistic customer program design
Create employee training initiatives around the
changing grid
Balance rate cases with multi-year rate reform
plans

87. Signposts
Identifying the Speed and Direction of Change
• Industry Trends
• Cost trends
• Technology
advancements
• Codes & standards
• Utility Metrics
• Peer activities
• Feeder characteristics
• Interconnection volume
• Customer Activities
• Load shape changes
• Energy portal utilization

88. The Flexible Utility
88
The
Flexible
Utility
Prepares for a
variety of
potential
futures
Focuses
strategic
thinking on a
future where
DERs are
commonplace
Proactively
integrates
planning and
operations
activities
Identifies and
monitors DER
signposts
regularly
Leverages Least
Regrets
strategies

89. The 51st State Phase II
89www.sepa51.org

90. Renewables
Transmission Connected
Renewables
Smart inverter control;
Generation Management
Distribution
Connected
Renewables
Smart inverter control
Rooftop Solar
Smart inverter control
Smart Inverter
Control
PF, Volt-var
Volt-Watt, Watt-Freq
Power export limit
L/HVRT, L/HFRT
Primary Voltage
0.9
0.925
0.95
0.975
1
1.025
1.05
0 4 8 12 16 20
Hour
Voltage(pu)
Baseline – No PV
20% PV
20% PV with
volt/var control
24 Hour Simulation %AvailableVars
% voltage
100%
0.95
1.05
-100%
1.0V
Control Settings

91. Energy Storage
Bulk Storage
Peaking and ramping
service; Grid flexibility
Distribution Storage
Power flow control;
Load peak shaving
Customer-Sited Storage
Demand & energy savings;
Resiliency
Vehicle-to-Grid
(V2G)
Virtual Power
Plant (VPP)

92. Load Management
Industrial Demand
Response
Frequency Regulation;
Reserve; Capacity
Residential Demand Response
Demand & energy savings;
Energy services (aggregate)
-1.5
-1
-0.5
0
0.5
1
1.5
8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 0:00
LoadReduction(kW)
Customer Control
Utility Control (4hr Event)
Utility Control (6hr event)
Load
Reduction
“Snapback”
Demand Response Characteristics

93. DER - Reshaping the Power System
Sharing the same power system – need more coordination and shared
responsibility
• Consumers becoming energy
producers
• Loads becoming more interactive
and dynamic
• Generation becoming more
flexible
• T&D becoming more controllable
and resilient

94. Beneficial Integration of DER
Making grid ready for
seamless integration of DER
to support customer choice
Making DER more
operationally integrated in
cost competitive manner
Extending DER
benefits beyond
customer premises
System Controller
Local Controller #1
Local DER
….
Integrated DER
Distribution System
Controllable Equipment
(cap banks, LTCs, etc.)
Local Controller #2
Local DER
Local Controller #N
Local DER
Integrated
Solution
Non-integrated DERIntegrated DER Integrated DER

95. Grid Issues with High Penetration of PV
Voltage
• Overvoltage
• Voltage variations
Equipment Operation
• Feeder regulators,
• Load tap changers
• Switched capacitor banks
Demand/Energy
• “Masking” peak demand
• Unbalancing supply and demand
System Protection
• Relay desensitization, networks
• Breaker reduction of reach
• Unintentional islanding
Power Quality
• Harmonic generation
• Flicker worries
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
Tue Wed Thu Fri SatSun Mon
April 2014
Variability Conditions: AZ
Variability Conditions: NM
Variability Conditions: NJ
Q2 2012 Q3 2012 Q4 2012 Q1 2013
0
20
40
60
80
100
PercentageofDays(%)
Season
Variability Conditions: TN
Q2 2012 Q3 2012 Q4 2012 Q1 2013
0
20
40
60
80
100
PercentageofDays(%)
Season
Q2 2012 Q3 2012 Q4 2012 Q1 2013
0
20
40
60
80
100
PercentageofDays(%)
Season
Q2 2012 Q3 2012 Q4 2012 Q1 2013
0
20
40
60
80
100
PercentageofDays(%)
Season

96. Understanding Distribution Circuit’s DER Hosting Capacity
What matters most Regarding Hosting Capacity?
• DER technology and impacts
• DER size and location
• Feeder construction and operation
Impact
Below
Threshold
Impact
Depends
Impact
Above
ThresholdVoltage
Protection
coordination
Thermal
capacity
Safety/
Reliability
DER Distribution
Impacts
DER Size and Location
Feeder Construction
and Operation

97. Improving Analytics
• Grid/DER modeling
• Planning methods
• Improving Planning
Tools
Proactive Planning
• DER locational value
Integrating New
Technologies
• Smart inverters
Advancing Distribution Planning and Analysis
Primary Voltage
0.9
0.925
0.95
0.975
1
1.025
1.05
0 4 8 12 16 20
Hour
Voltage(pu)
Baseline – No PV
20% PV
20% PV with
volt/var control
24 Hour Simulation
Substation-level
Hosting Capacity
Feeder-level
Hosting Capacity

98. Adopting Open Standards and Protocols
Voltage
Management
Bulk
System
Support
Comm. &
Interactivity
• Fixed Power Factor
• Volt-VAR Control
• Volt-Watt Control
• Voltage Ride-through
• Freq Ride-through
• Freq-Watt Control
• Configuration
• Coordination
• R/T Feedback

99. Architecture for DER Integration
DERMS = Distributed Energy Resource Management System
DERMS
SOLAR BATTERY PEV
MDMS OMS
Enterprise Integration
GIS Etc.
DRASDMS
ADMS
GAP Area
Maturing, Well Defined Interfaces

100. DER Integration Challenges …
Grid Support
Incentivized or
grid-code
Authority
Utility resource vs.
customer owned Control &
Communication
Autonomous or
configurable
Co-ordination
Open standards
and Protocols
Transmission and
Distribution
Planning and operation