This document discusses regulatory barriers to transactive energy and local energy markets. It provides an overview of concepts like transactive energy and virtual power plants. It also presents a case study of a project in an unincorporated area of LA County to demonstrate local energy markets. The main barriers discussed are public utility codes, resource adequacy qualifications, and emissions trading system participation. Solutions proposed include stripped-down licensing models, exemptions for behind-the-meter resources, and pilots to demonstrate the value of local energy markets.
3. The Energy Coalition
Concepts
● Transactive energy (TE) is not monolithic, but the
dominant use case in California
● Local energy markets as an umbrella term
○ Transactive energy
○ Peer-to-peer
○ Community self-consumption
3
4. The Energy Coalition
Concepts
● Virtual power plants (VPPs)
have evolved
● How do we transition from
demand response to demand
flexibility, grid interactive
buildings, and local energy
markets?
4
*HEMS-OE - Home energy management with operating
envelopes
**OPF - Virtual power plants with optimal power flow (OPF)
Figure from Gregor Verbic, University of Sydney, AU
5. The Energy Coalition
Concepts – Local Energy Markets
5
Transactive Energy Peer-to-Peer Community Self-
Consumption
These figures resonated with stakeholders at the US DOE’s Gridwise Architecture Council (GWAC)
6. The Energy Coalition 6
>$40 Billion dollars in total revenue of CA Retail Energy
Sales: US. Energy Information Agency
7. The Energy Coalition
Case Study
• Unincorporated LA County
• DAC census tracts
• 60% of residents on CARE (low
income)
• 84% Hispanic
• $60,000 median income
• Predicted to experience over 40
additional extreme heat days per year
by 2050 (>35C)
7
8. The Energy Coalition
Case Study
• 5 year project
• $7M via the CA Energy Commission
• 50 prosumer homes
• Solar, Storage, EE, DF, HPWH
• HEMS, CTs, APIs
• Simulation Partners: Community
Electricity, Algorand, Distro (S&P
Global), GridSingularity, Ampere
8
9. The Energy Coalition
Case Study
9
• High tolerance for thermal discomfort
• Challenge the “loading order”
10. The Energy Coalition
Case Study
10
• Community wide distribution grid impacts
• Can achieve no increase in net peak demand
Dr. Eric D. Fournier, UCLA, Center for Sustainable Communities
12. The Energy Coalition
Case Study
12
• 5kW Solar PV / home
• 2 Tesla Powerwalls / home
• 20 HPWHs
• 50 prosumer homes
• All assets owned free and clear by residents with no debt service
• In development: Home assessments, physics based energy
models, oracle development, multi-objective simulation (bill
savings, GHG reduction, energy optimization, revenue creation)
13. The Energy Coalition
Policy Barriers
● Public utility code and “electrical corporation”
● Transactive energy is prohibitive not prohibited
● Resource adequacy
● Qualifying capacity
● Renewable portfolio standard
● Interconnection and operations
● Emissions Trading System (ETS) participation
13
14. The Energy Coalition
Practical Barriers
● Demand flexibility enablement
● Equipment selection
● Interoperability standards
● Baselines and forecasting
● Financing
● Engagement
● Market making
14
15. The Energy Coalition
Solutions
● Stripped-down licensing (UK model)
● Behind the meter RPS
● BTM resources for RA, QC, LCR
● System sizing and operations
● Regulatory philosophy change to decentralized energy
● Aggregators for Cap and Trade
15
16. The Energy Coalition
Solutions
● Regulatory studies for the record
● Simulations → Pilots
● Legislative exemptions
● De facto standards
● Derive inherent value in the way we interact with energy
via local energy markets
16
17. The Energy Coalition 17
Marc Costa, LEED AP BD+D, CGBP, BOC II
Director of Policy and Planning
The Energy Coalition
mcosta@energycoalition.org
Thank you!
Smart Grids 202
Editor's Notes
These are slides from TEC’s new master template -- think SoCalREN master template!
Scenarios where this would be uses: response to RFP, or panel presentation (1-2 slides to introduce TEC before diving into subject matter).
