overview and status of distributed energy resources policy docket jay griffin, chief of policy and...

Overview and Status of Distributed Energy

Resources Policy DocketJay Griffin, Chief of Policy and Research

Hawaii Public Utilities CommissionAugust 4, 2015

1Hawaii Public Utilities Commission


Dr. James “Jay” Griffin is the Chief of Policy and Research at the Hawaii Public Utilities Commission. He leads the PUC’s team of researchers and economists that support Commission decision-making with energy policy research and analysis. Joining the PUC over two years ago through an intergovernmental agreement, Jay is on leave as a faculty member at the Hawaii Natural Energy Institute (HNEI) which is an independent research unit at the University of Hawaii supporting the state’s efforts to develop indigenous renewable energy sources and reduce dependence on imported fossil fuels. While at HNEI, Jay worked on the research team for several renewable grid integration studies and led a Department of Energy-funded smart grid demonstration project on Maui.

Jay Griffin

Chief of Policy and ResearchHawaii Public Utilities Commission

Hawaii – Becoming World Leader in Solar PV Adoption

Hawaii leads the nation in the penetration of residential rooftop solar PV systems and as a result, is at the forefront of the integration challenges associated with high solar PV penetration levels.

At the same time, Hawaii is on track by 2017 to become a world leader in the utilization of solar PV resources – both distributed and utility-scale – with installed solar PV capacity penetration levels exceeding 75% of typical daytime gross system loads likely on several island electric grids.

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Hawaii Electric Systems -- 4 Electric Utilities; 6 Separate Grids

Oʻahu

Molokaʻi

Maui

HawaiʻiLanaʻi

Kauai Island Utility Cooperative34 MW PV (12 MW in development)System Peak: 72 MWCustomers: 32,700

Hawaiian Electric283 MW PV / 100 MW Wind /69 MW WTESystem Peak: 1,144 MWCustomers: 300,000

Maui Electric Maui: 52MW PV / 72MW WindSystem Peak: Maui 190 MWLana’i: 1MW PVSystem Peak: Lana’i: 5 MWMoloka’i: 2 MW PVSystem Peak: Moloka’i: 5.5 MWCustomers: 68,000

Hawaii Electric Light52 MW PV / 30 MW Wind / 34 MW Geothermal / 16 MW HydroSystem Peak: 190 MWCustomers: 81,000 4

34%

15%

17%

47%

Hawaii’s Distributed Solar PV Growth has Pushed Interconnection and System Integration Boundaries

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2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

50

100

150

200

250

300

350

400

1.8 2.4 4.7 1224

40

71

171

301

389

Hawaiian Electric Companies

Cum

ulati

ve In

stal

led

Capa

city

(MW

s)

PUBLIC UTILITIES COMMISSION 6

Growth of Distributed PV has Pushed Interconnection Boundaries

Source: Hawaiian Electric Co.

PUBLIC UTILITIES COMMISSION 7

Source: Hawaiian Electric Co.

• Over last 2 years utility has increased distribution circuit screen levels to interconnect additional PV

• Aggregate growth has raised system-level integration challenges

Growth of Distributed PV has Pushed Interconnection Boundaries


Hawaii’s High Renewable Grids are Encountering New Technical, Economic, and Policy Challenges First

Source: Maui Electric Co. “Renewable Watch”, August 1, 2015

60% Daytime Load supplied by

Wind and DG


CAISO @ 23% daytime loadsimilar to Oahu today

Maui, Hawaii Island, and Kauai regularly > 50%

w/ Oahu to follow soon

Hawaii’s High Renewable Grids are Encountering New Technical, Economic, and Policy Challenges First

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March 31 PUC Orders Address DER Interconnection and New Customer Options

Interconnection of Energy Storage Systems (Docket No. 2014-0130)

• Storage systems will be reviewed for safety and reliability• Resolution of further technical issues moved to DER docket

Distributed Energy Resources Policy Docket (Docket No. 2014-0192)

• Established to investigate technical, economic, and policy issues• Opening order highlighted 3 key objectives:

1) Clear interconnection backlog2) Enable DER market growth3) Create new DER market choices

• Included Staff Paper and Proposal• Continues work started by stakeholders in the Reliability Standards

Working Group (RSWG)Hawaii Public Utilities Commission

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Overview of Staff Report and Proposal

• Focused discussion and collaboration among parties will resolve high priority issues more quickly

• Document divided into 3 sections:1) Overview of Recent Trends in Hawaii Solar PV Market2) Near-Term Technical and Economic Challenges and Proposed

Solutions for the Evolution of Hawaii’s DER Market3) Proposed DER Policy Docket Issues and Work Scope

• Summarizes near-term integration challenges • Includes DER Advanced Technology Roadmap• Proposes work scope for near-term and mid-term solutions

Hawaii Public Utilities Commission

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Staff Paper Summarizes DER Priority Technical Challenges

Examples of Technical Integration Challenges

Steady State Operations Contingency Events

System-level

Over-generation and increasing variability in generation resulting in: Curtailment of other renewable

generation Frequency regulation and ramping

challenges for central generation

Behavior of aggregate DER fleet may exacerbate grid instability during emergencies: Need grid-supportive frequency

and voltage trip and ride through settings

Circuit-level

Over-generation resulting in: Approaching or exceeding

distribution system equipment capacity limitations

Behavior of DER systems during circuit-level contingencies may result in: Unintentional islanding Temporary load rejection

overvoltage


Source: Table 2, Staff Report and Proposal, Docket No. 2014-0192, March 31, 2015

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Proposed Market Options to Address Integration Challenges


CustomerDER Development

Options

CustomerSelf-Supply

Option

CustomerGrid-Supply

Option

Non-participant customers held harmless, or benefit, from both customer solar PV development options

Customer choice -- non-export option to serve customer energy requirements

Grid power supply – export option to supply wholesale energy

Source: Staff Report and Proposal, Docket No. 2014-0192, March 31, 2015

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Next Steps in DER Docket

• Phase 1: Collaborative process with focus on clearing interconnection backlog, enabling continued DER market growth, and creating new DER market choices

• Parties filed Final Statements of Position – June 29, 2015

• Resolution of Phase 1 issues and Phase 2 scope currently under Commission consideration


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Mahalo!

Please send any questions to me at [email protected]


overview and status of distributed energy resources policy docket jay griffin, chief of policy and...

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