Releasing Full Capacity of DERs through Flexibility
1. Presented By:
11/15/16
Releasing the Full Capacity of DERs through Flexibility
Speakers:
Jeffrey Norman, Vice President of Industry Solutions, AutoGrid Systems
Adam Todorski, Senior Director Product Technology, AutoGrid Systems
Moderator:
Elta Kolo, Analyst, Grid Edge, GTM Research
6. 6GTM Research
Building Electricity Markets of the Future
Innovation for Market—Based Deployments of DERs
Aggregation is a key for DER integration at a system and
distribution level, in this way increasing the value of the offering.
Animating Markets for
Distributed Energy
Resources
Regulatory
Guidance
Electricity Market
(Re)design
Third Party
Technology and
Service Providers
Empowering customers to become
active electric system participates
will come from appropriate adoption
of Distributed Energy Resources(
DERs)
Affordable and reliable electricity system
7. 7GTM Research
Value of Flexibility from DERs
Flexibility Capability Grid Value
Capacity
Can reduce the grid’s peak load and flatten the
aggregate demand profile of customers
• Avoided generation, transmission, and distribution
investment
• Minimize grid losses
• Reduce the rate of equipment degradation
Energy Can shift load from high-price to low-price times Avoided production from high-marginal-cost resources
DER integration
Can reshape load profiles to better match
renewable energy production profiles
Mitigated renewable integration challenges (e.g., ramping,
minimum load)
Source: Rocky Mountain Institute
Value of Flexibility
Aggregated DER flexibility is valued under existing demand response program schemes for ISOs/RTOs and utilities. With DERs available at
different levels of the grid, opportunities and challenges arise with respect to markets and market design in addition monetization
strategies for capacity and energy.
10. 10GTM Research
For the July 25th peaking summer day, between the hours of 14:00 to 19:00 there was approximately 600
MW of economically scheduled DR flexibility that provided relief in the BGE territory.
Heat Day Peak Load Triggers Economic Demand Response in BGE Territory on July 25, 2016
Load in PJM Territory During Heat Days Load in BGE Territory During PJM Declared Heat Days
7/25/2016,
75,000
85,000
95,000
105,000
115,000
125,000
135,000
145,000
155,000
1:00 3:00 5:00 7:00 9:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00
MW
Hour
7/21/2016 7/22/2016 7/23/2016 7/24/2016
PJM issued hot weather alerts for July 21 to July 27. System capacity peaked on July 25, reaching a
maximum load of over 150,000 MW in the RTO territory at 16:00 on July 25.
2,800
7,800
1:00 3:00 5:00 7:00 9:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00
MW
Hour
7/21/2016
7/22/2016
7/23/2016
Source: PJM
*Actual reductions achieved will be known after all individual customer meter data is provided for settlements – submission deadline for economic energy settlements is 60 days following event.
Source: PJM
11. Releasing the Full Capacity of
DERs through Flexibility
Jeff Norman, VP Industry Solutions, AutoGrid
Adam Todorski, Senior Director Product Technology, AutoGrid
12. Rise of the DERs at Grid Edge
A complex, real-time energy network
(aka the Energy Internet)
§ Distributed energy resources
§ Renewables
§ Customers as consumers
and suppliers
§ Value through optimization
12
13. Inherent Challenges with DERs
New
Technologies
Intermittency
Integration with
Existing Grid
Communications Business Model
14. New Approach: Flexibility Management
14
Solar, DG
HVAC, Lighting
Combined Heat &
Power Plants
Thermostats,
Water Heaters
Battery Storage
Energy Resources
Electric Vehicles
Transmission
& Distribution
Wholesale
Energy
Markets
Value Streams
Behind-the-
Meter Cost
Reduction
$$
Resource
Flexibility
18. New Thinking: All Are DERs
18
Solar HVAC, LightingCombined Heat
& Power Plants
Thermostats,
Water Heaters
Distributed Energy Resources
Distributed Generation Energy Storage Demand Response
Battery Storage
Other DERs
Electric Vehicles
19. What others have said…
Yes,
20%
No,
80%
Is the electricity industry prepared for
how the surge of DERs at the grid edge
will change utility business models?
Source: GTM Squared “Annual Survey Report 2016: The Future of Global Electricity Systems”
19
21. What others have said…
33.9%
26.5%
9.2%
15.8%
4.6%
To what extent do you
believe distributed
generation represents a
threat to your business?
Source: Black & Veatch 2015 Strategic Directions: U.S. Electric Industry Report
Major/
moderate
threat
Minor threat, but with
significant long-term
repercussions
Minor threat,
but with limited
long-term
repercussions
No threat
Don’t know
21
22. Do you:
• Get ready to pay millions or tens of millions for your new seasonal
capacity peak?
• Spin up a peaker plant?
• Curse your customers for having deployed solar, which has pushed
your daily load curve into the early evening and threatens to wreak all
sorts of other havoc?
Scenario: it’s the third day of a late July heat wave and
you’re about to eclipse your seasonal peak by 3%!
23. New Thinking
Or, do you help your customers buy batteries and:
• Have a reliable load-shifting capacity resource right where demand is
• Facilitate the integration of rooftop PV and leverage it as a distribution
asset
• Opportunistically self-supply or sell ancillary services
Scenario: it’s the third day of a late July heat wave and
you’re about to eclipse your seasonal peak by 3%!
24. <1 s2-4 s
10-30
mins
Hours/D
ays
Months/
Years
System
Planning
Governor
Response
RegulationReservesCapacity
Event Based DR
DR in Capacity
Auctions/Resourc
e Adequacy
Programs
Managed
Smart
Inverters
DERs with
Real-time
Controls
24
New Thinking: What Can’t You Do with DERs?
§ Active utility interaction with customer
sited storage and generation can be the
norm – just like DR
§ Good customer engagement tools can
help expand DR programs and integrate
DER programs
§ Existing DR resources can be forecast
and controlled alongside storage and DG
to respond at all time scales
Response Time of Resources
25. You can’t do much more with old assets like
window A/C units and water heaters
MYTH #3
26. New Thinking: Sometimes a Cigar Isn’t Just a Cigar
With good software, these assets
can deliver predictable, precise,
targeted, and fast-acting load relief
26
Flexibility Management
Predictable, flexible capacity
28. New Thinking: “Dispatch-Grade” Load Shed Forecasts
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Forecast vs. Actual Curtailed Load
Actual Load AutoGrid Forecast Single Methodology Forecast
kWCurtailedLoad
1.5
2
2.5
3
3.5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-0.4
-0.3
-0.2
-0.1
0.0
0.1
0.2
0.3
0.4
0.5
Error(kW)
DR Event
Load Forecasting Error Single Methodology Error
AutoGrid Forecasting Error
Data from 20 Behavior DR events at a major utility
29. What others have said
Source: Utility Dive, State of the Electric Utility 2016
30. The best way to integrate these DERs is
asset-by-asset to reduce risk
MYTH #5
31. New Thinking: It’s not about each asset or program, it’s about
the network
C&I DR
BYOT
Smart
Thermostat
Residential DLC
Building
Optimization
Interruptible Gas
Programs
MISO
Registration
Storage
DERs
EVSEs
Flexibility Management
C&I DR
BYOT
Smart
Thermostat
Residential DLC
Interruptible
Gas Programs
MISO
Registration
32. Flexibility Management: All Assets, All Services, All Customers
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Storage Mgmt
Behavioral DR
Bring-Your-Own-Thing
C&I Direct Load Control
Demand Charge Mgmt
All Services
DERMS
All Customer Classes
Residential Commercial Industrial
Virtual Power Plant
All Assets
Flexibility
Management
Solar
Thermostats
CHP
Water Heaters, HVAC
Storage
EV/EVSE
Lighting
DER
DR
All Services
Capacity Energy Ancillary
34. AutoGrid Company Overview
Company Facts
§ Established in 2011 at Stanford University
§ Headquartered in Silicon Valley
§ Operations in North America, Europe, APAC
§ ~50 employees
§ Strategic Investors include regulated and
deregulated global energy companies
Leading Provider of
Flexibility Management Applications
25+
Global Energy Customers
2000MW
DERs Contracted Globally
50 Million
End Customers
34
35. AutoGrid Flex
• DERMS
• Demand Response
• Virtual Power Plants
• Storage Optimization
Use Cases
35
Solar, DG
HVAC, Lighting
Combined Heat &
Power Plants
Thermostats,
Water Heaters
Battery Storage
Energy Assets
Electric Vehicles
$$
Resource
Flexibility
Wholesale
Markets
Transmission
& Distribution
Value Streams
Behind-the-
Meter
36. To Learn More
§ Contact us
§ jeffrey.norman@auto-grid.com
§ adam.tordorski@auto-grid.com
§ Go to our website www.auto-grid.com for:
§ White paper: “The Economic Value of Next-Generation DR”
§ Lots of other info!
§ Meet with us at Energy Storage Summit (12/7) or DistribuTECH (1/31)
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