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Distributed Energy Resources: Going Small

IEP 2015 Annual ConferenceSeptember 30, 2015

Colin CushnieV.P., Energy Procurement & Management

Southern California Edison Company

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The trend has already started… more distributed resources!

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SCE’s LCR RFO ProcurementContracted ~2,220 MW of resources, including 422 MW of customer-side resources (EE, DG, DR, behind-the-meter (BTM) solar, and BTM energy storage)

RESOURCEBUCKET COUNTERPARTY DETAILS

TOTAL MW

Renewables SunPower Behind the Meter Solar PV 50

Energy Storage (ES)Ice Bear ES BTM Permanent Load Shift Thermal ES

161Stem BTM 4 hour like DRHybrid Electric BTM 4 hour like DR

Energy Efficiency (EE)

Onsite Energy, Sterling Analytics, & NRG Aggregated EE 136

Demand Response (DR) NRG Aggregated DR offer with at least 4 hour

dispatch 5

Distributed Generation (DG) NRG Aggregated BTM distributed generation 70

TOTAL DISTRIBUTED RESOURCES 422

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Preferred Resources Pilot

Electrical needs in the PRP region are changing:• Loss of generation in the area with the closure of

SONGS and retirement of OTC plants• Population and business growth is resulting in an

increased peak demand

Proposed solution:• In order to avoid the need for new gas-fired generation

in PRP region, prove Preferred Resources can deliver what is needed and when it is needed

• Measurement is key• Stakeholder participation is required

Procurement of Preferred Resources:• Leverage existing programs (e.g., LCR, RPS, SPVP)• PRP specific RFOs – PRP RFO 1 is wrapping up and PRP

RFO 2 launched last week

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SCE’s Energy Storage Targets

Storage Grid Domain(Point of Interconnection) 2014 2016 2018 2020 Total

Transmission 50 65 85 110 310

Distribution 30 40 50 65 185

Customer 10 15 25 35 85

Total 90 120 160 210 580

• 265 MW of SCE’s Energy Storage target are distribution-level resources

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SCE Demonstration Projects

Irvine Smart Grid Demonstration

Large Distributed Energy Storage (2MW/500kWh unit – Q2 2014)

Large-Scale Community Energy Storage (CES) (100kW/100kWh – Q4 2013)

Community Energy Storage (CES) (25kW/50kWh – Q2 2013)

Residential Home Energy Storage Unit (RESU) (4kW/10kWh – Q3 2013)

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Tehachapi Storage ProjectLarge-Scale Energy Storage (8MW/32MWh – Q2 2014)

Large Commercial PLS Program (100kW/500kWh – Q2 2014)

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SCE Demonstration Projects (2015-2016)

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Distributed Energy Storage Integration (DESI 1) Pilot Program (approx. 2MW/4MWh – Q2 2015)• Deployed energy storage on the distribution system to

solve a challenge or for economic benefit

Distribution Optimized Storage (DOS) (1MW/1MWh – 2016)• Evaluate aggregated energy storage units on the

distribution system with optimized controller

Distributed Energy Storage Integration (DESI 2) Pilot Program (2016)• Finalization of design for storage system,

communication and interconnection

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SCE’s Distributed Resources Plan

• SCE’s DRP reflects the Commission’s three objectives:• Modernize the distribution system to accommodate customer choice• Enable new technologies & services that reduce emissions and improve

reliability• Animate opportunities for DERs to realize benefits by providing grid services

Growth Type Scenario 1 Scenario 2 Scenario 3

Solar PV (nameplate AC) 1,636 MW 1,905 MW 4,770 MW

Demand Response 1,265 MW 2,087 MW 2,981 MW

Storage (D&C) 270 MW 270 MW 637 MW

Storage (T) 310 MW 310 MW 731 MW

AAEE (annual) 10,536 GWh 17,031 GWh 17,243 GWh

CHP (annual) 6,350 GWh 8,576 GWh 13,612 GWh

EV (annual) 2,422 GWh 3,395 GWh 3,395 GWh

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Some Open Challenges Associated with DERs

Interconnection• How can the interconnection process be optimized without jeopardizing

safety• What level of utility control, if any, is needed to ensure reliable operations• How can we reconcile the need for specific resources in specific locations

while still maintaining open access requirements

How will DERs be monetized?• Will DERs be bid into the CAISO market• Will a DSO be developed and, if so, how will it integrate with the CAISO

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Questions & Answers?