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MTS Working Group September 8, 2015

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Page 1: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

MTS Working GroupSeptember 8, 2015

Page 2: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Introduction

• More Than Smart• Mission – Enabling state integrated distribution grid efforts

1. Continue the work of CA MTS Working Group - today2. Push to help other state distribution grid efforts around country3. Communications & Outreach push for other states to utilize MTS work

• Areas of Focus• Operationalizing distribution grid planning work• Funding to be a mix of foundation, membership and state/federal grants• Two main MTS forums –MTS Working Group & Regular open webinars• Subgroups for quick turn-around as required

Page 3: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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MTS Working Group Purpose

Provide an open, voluntary stakeholder forum to educate and discuss core issues toward identifying potential common ground regarding the evolution of California’s distribution system and the seamless integration of DER to meet customers’ needs and public policy. The discussions will be for the benefit of the participants and may be made public without specific participant attribution

Page 4: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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More Than Smart

• Tony Brunello, More Than Smart [email protected]

• Paul De Martini, MTS/ICF International [email protected]

• Laura Manz, MTS/ICF International [email protected]

• Michael Murray, MTS/Mission:Data [email protected]

• Deborah Shields, MTS [email protected]

• Annie Howley, MTS [email protected]

MTS meetings, webinars and information exchange are designed solely to provide a forum or means for the expression of various points of view in compliance with antitrust laws. Under no circumstances shall MTS activities be used as a means for competing companies to reach any understanding, expressed or implied, which tends to restrict competition, or in any way, to impair the ability of participating members to exercise independent business judgment regarding matters affecting competition or regulatory positions.

Proprietary information shall not be disclosed by any participant during any MTS meeting or its subgroups. In addition, no information of a secret or proprietary nature shall be made available to MTS or its membership. All proprietary information which may nonetheless be publicly disclosed by any participant during any MTS meeting or its subgroups shall be deemed to have been disclosed on a non-confidential basis, without any restrictions on use by anyone, except that no valid copyright or patent right shall be deemed to have been waived by such disclosure

Page 5: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Agenda

9:00-9:15am 9:15–10:30am

Introductions Presentations (about 15 minutes each) and group discussion to explore various views on integrated distributed planning process

10:30-noon Facilitated discussion to define IDPP and identify key components to frame further evaluation by WG

Lunch 12:30-1:30pm 1:30-3:00pm

Continuation of IDPP discussion Discussion of DER portfolio scope and overall schedule of activity for working group - scope, timing, subgroups

Page 6: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Context: Evolution of DRP

Walk

Jog

Run

No.

of B

enefi

t Cat

egor

ies

&So

phisti

catio

n of

Ana

lysi

s

2015-1H 2016 2H 2016-2019 2020+

Visibility & Initial DPA Locational Benefits

System-wide DRP including LTPP& TPP locational benefits

System-wide DRPs incl. Locational Societal Benefits

Discussion framework from Phase 1

Page 7: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Integrated Distribution Planning Process

- develop a working definition

Presentations by MTS Members

Page 8: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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IDPP Presentations by:

• Heather Sanders, SCE• Ryan Hanley, SolarCity• Will Speer, SDG&E• Lorenzo Kristov, CAISO• Mark Esguerra, PG&E

Page 9: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Integrated Statewide Planning Process Alignment

L. Kristov, CAISO

Page 10: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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There are two aspects to the DRP process alignment

1. Optimally align new DRP cycle with the existing structure of IEPR-LTPP-TPP

• State agencies & legislature are concerned that all procurement & planning processes utilize consistent & up-to-date assumptions

• IEPR-LTPP-TPP alignment created in 2013-14 achieves this for those processes

• DRPs & DER adoption projections & impacts will be key elements of assumptions & scenarios for procurement & planning

• Many DER types reflected in DRPs are load modifiers that need to go into the IEPR demand forecast

• A needed next step is to map the content & timing of important inputs & outputs between DRPs & the other processes

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Page 11: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Second aspect –

2. Distribution investment proposed in DRPs must be input to utility GRCs

• Required by PU Code Sec 769

• Three IOU GRC cycles are three years long & staggered

• IOUs perform annual internal distribution planning processes to plan each year’s infrastructure build-out, based on their own latest GRC approved funding

• What is relationship between existing annual planning process and new DRP cycle?

• How to define the future DRP cycle to address both aspects of the problem?

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Page 12: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Process suggestions

Inter-agency group to address first aspect• Existing inter-agency process alignment group (CPUC-CEC-ISO)

describes & maps most important inputs & outputs • Engage broad group of CPUC staff working on various CPUC procurement

proceedings (LTPP, RPS, EE, DR, Storage, RA)

• Present inter-agency work to IOUs for comment & revisions

MTS Subgroup to address second aspect• Develop initial framework

Full MTS working group• Reviews draft framework presented by subgroups for feedback

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Page 13: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Integrated Distribution Planning Process (DPP) - develop an end-to-end framework

Page 14: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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• DPP/DRP timing considerations• Relationship with interconnection processes (Rule 21, SGIP)• Enhancements to improving methodologies/assumptions of

analyses• Data Access & Transparency - which data needs to be shared?• Coordination Topics

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Integrated Distribution Planning Process (DPP)

Page 15: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Enhancements to improving methodologies/assumptions of analyses • Integrated Capacity Analysis

• Additional locational value components and enhancements to methods

• Scenario enhancements (incl. DER forecasting)

• And any enhancements

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Integrated Distribution Planning Process (DPP)

Page 16: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Data Access & Transparency - which data needs to be shared? • Hosting Capacity refinements?• Locational Value• Planned Expenditures (capital and OpEx)• Data Access (incl. mechanisms for sharing i.e. RAM maps, etc.)

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Integrated Distribution Planning Process (DPP)

Page 17: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Coordination Topics• DRP/IDSR/other proceedings• Alignment of DPP with TPP/LTPP/IEPR • CAISO coordination whitepaper

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Integrated Distribution Planning Process (DPP)

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DER Sourcing Structures & Portfolio Management Scoping Discussion

Page 19: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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• Planning driven definition of distribution needs• DER Portfolio framework and development considerations• DER Sourcing (rates/pricing, programs, procurements)

considerations• DER portfolio operational “dispatch” consideration (“merit

order

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Planning and Sourcing

Page 20: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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DER Services Portfolio Development & Operations

DER Services Development DER Portfolio ManagementDER Portfolio Development

For illustration only

(Renewable DG, Storage, DR, EE, EV & Power Electronics)

Page 21: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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DER Services Lifecycle Process

Identify grid needs & locational value based on operational & engineering requirements

Specific services are identified and various sourcing mechanisms are employed

Sourcing results from competitive market are assessed against need and any gaps are identified

DER deliver value as measured against specific performance metrics

DER settlement & performance results feed into next distribution planning cycle

PortfolioDevelopment

PortfolioManagement

Page 22: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Nested Locational Portfolios

Potentially DR/DER providing value at multiple levels will create nested relationships that will need to be considered

Regional Portfolio

DLAP Portfolio

LMP/LCR Portfolio

Distribution Value

Page 23: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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DER Value Components for Distribution

Value Component Definition

Distribution

Subtransmission, Substation & Feeder Capacity

Reduced need for local distribution system upgrades

Distribution Losses Value of energy due to losses between wholesale transaction and distribution points of delivery

Distribution Power Quality + Reactive Power

Improved transient & steady-state voltage, reactive power optimization and harmonics

Distribution Reliability + Resiliency+ Security

Reduced frequency and duration of individual outages & withstand and quickly recover from large external natural, physical and cyber threats

Distribution Safety Improved public safety and reduced potential for property damage

Propose to Define Specific Services & Performance Requirements

Page 24: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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DER Portfolio Development & Management• The identified services needed and the respective

sourcing mechanisms employed create locational portfolios

• Local portfolios can be developed through the use of:• Pricing – Rates & Markets• Programs – EE & DR• Procurements

• These portfolios also aggregate Bulk Power System values that need to be considered and managed

• Development of an optimal portfolio including DSM rates and programs with competitively procured DER services should be discussed by the IDSM proceeding• From a market development perspective, this could

include consideration of the effect of portfolio allocation between the 3 P’s on market development and overall portfolio net benefits effectiveness

• From a quantitative perspective, this could include identifying the option value, if not explicitly understood and the covariance among the various elements in relation to each other to create an optimal mix

DER Portfolio

Pricing Programs Procurement

Page 25: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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Distributed Energy Resource Sourcing• Attributes

• Technical requirements by value component• Commercial considerations• Control

• Sourcing Consideration• Timing• Prioritization

• Distribution merit order• Allocation

• Interrelationship of Portfolio Categories (EE, DR, DS, DG, EV, etc.)

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Planning and Sourcing Considerations

Page 26: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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DER Portfolio framework & development considerations

• Current Customer tariff composition• Scenario for change in tariffs• LMP Nodal Forecasts (CAISO change to Plexus to be more

granular to LMP Nodes)• Scenarios linked to ICA • DSO described barriers – how to consider• Deferral framework

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Page 27: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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WG Deliverables

Page 28: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

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WG Deliverables

• Recommendations on an integrated Distribution Planning Process for system-wide implementation by _______.• Recommendations to enhance planning scenarios regarding

granularity and DER forecasting• Recommendations on data sharing and related mechanisms• Recommendations on IDPP to CA state-wide planning

processes alignment• Development of a framework for the intersection of planning

and DSR/DER sourcing• Development of a framework for “DER alternatives”

evaluation and related “merit order ”

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Page 29: MTS Working Group September 8, 2015. 2 Introduction More Than Smart Mission – Enabling state integrated distribution grid efforts 1.Continue the work

MTS Working Grouphttp://morethansmart.org/