the challenge of distributed energy resources
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The Challenge of Distributed Energy Resources. A. David Stippler Utility Consumer Counselor 7 th Annual Spring Forum Richard G. Lugar Center for Renewable Energy Indianapolis, Indiana May 6, 2014. Utility Consumer Counselor. - PowerPoint PPT PresentationTRANSCRIPT
A. David StipplerUtility Consumer Counselor
7th Annual Spring ForumRichard G. Lugar Center for Renewable Energy
Indianapolis, IndianaMay 6, 2014
The Challenge of Distributed Energy Resources
Under Indiana Code 8-1-1.1-3, the Utility Consumer Counselor (UCC):◦ Serves at the will and pleasure of the Governor
(4 year term)◦ Shall be a practicing attorney, and qualified by
knowledge and experience to practice in regulatory proceedings
Utility Consumer Counselor
Indiana Code 8-1-1.1-5.1◦ “(e) In all proceedings before the
commission,…and in a court in which the consumer counselor shall appear, the consumer counselor shall have charge of the interests of the ratepayers and consumers of the utility…”
Consumer Counselor Powers and Duties
The Office of Utility Consumer Counselor (OUCC) has a current staff of 52 utility professionals
◦ 10-person legal team-over 190 years of combined experience in utility law
◦ Technical staff of accountants, economists, engineers and environmental/fiscal analysts-nearly 850 years of professional and utility industry experience.
OUCC
DER include distributed generation, which are non-centralized sources of electricity generation, typically interconnected to a utility’s distribution system and located at or near customers’ homes or businesses.
What are “Distributed Energy Resources (DER)?”
Distributed generation refers to energy sources located behind a retail meter or connected to a microgrid where the intent is to remove some load or demand from the generation, transmission, and distribution facilities that comprise the incumbent utility’s “grid.”
What is “Distributed Generation?”
Solar panels Energy storage
devices Fuel cells Micro turbines Reciprocating
engines Small wind
Examples of DER
Backup generation Combined heat and
power (CHP) systems
Hydro Biomass Landfill methane
A “microgrid” is a small self-contained electricity network that sometimes includes a district energy system. The microgrid coordinates and distributes energy from one or more generation resources to multiple users in a spatially defined area.
What Precisely is a “Microgrid?”
Another Definition of a Microgrid
A microgrid is a group of interconnected loads and distributed energy resources within clearly defined boundaries that acts as a single controllable entity with respect to the grid and that connects and disconnects from such grid to enable it to operate in both grid-connected or “island” mode.
2014 Report-U.N. Intergovernmental Panel on Climate Change (IPCC)
Expected EPA proposed carbon pollution standards for existing power plants by June 1, 2014
State Utility Forecasting Group (SUFG) 2013 report to IURC: projected 32% increase in Indiana electric rates by 2023 (reliance on coal for power generation and increasing federal environmental mandates)
U.S. Supreme Court’s reinstatement of the Cross-State Air Pollution Rule-CSAPR- April 29, 2014.
Compelling Reasons for Promoting DER, Especially Renewables
Electric ServiceTerritories
Source: Indiana Energy Association 2012 Edition
Indiana Utility Activity-Net Metering
2009 2010 2011 2012 20130
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
0
100
200
300
400
500
600
Indiana Net Metering Activity
Solar kW Wind kW Customers
Capacit
y k
W
Custo
mers
A feed-in tariff reimburses entities that produce excess electricity and sell it back to the utility at certain rates per kWh instead of receiving credits as is the case with net metering.
Indiana Utility Activity-Feed-In Tariffs
In a recent filing with the IURC, NIPSCO presented its 3rd annual feed-in tariff report, depicting total metered generation that had interconnected and begun selling energy to NIPSCO to be 73,898,289 kWh from various renewable resources:
Feed-In Tariffs
Generation (kwh)Technology 2011 2012 2013 Total % Total
Small Solar - 118,895 471,806 590,701 0.8%
Large Solar - 433,758 15,789,457 16,223,214 22.0%Small Wind - 3,588 15,721 19,310 0.0%Large Wind - - 90,113 90,113 0.1%
Biomass 6,219,791 19,152,432 31,602,728 56,974,951 77.1%Total 6,219,791 19,708,672 47,969,825 73,898,289 100.0%
Source: NIPSCO 3rd Annual FIT Report (Cause No. 43922) pg. 7
Feed-In Tariffs
Source: NIPSCO 3rd Annual FIT Report(Cause No. 43922) pg. 36
1200 kW Biomass
Feed-In Tariffs
Source: NIPSCO 3rd Annual FIT Report(Cause No. 43922) pg. 36
Small Wind Turbine
Promise of Renewables
Source: 2013 IURC Annual Report to the Regulatory Flexibility Committee
Provide a diversity of power supply resources Promote environmental benefits and
stewardship – pollutant free Reduce power system emissions Defer or eliminate need for capacity upgrades
for generation, transmission and/or distribution systems – economic attributes
Improve power system resiliency (robustness) – support distribution system during outages; sustain building services (“keeps the lights on”)
Some “Pros” to Renewable Energy Resources
Wind/Solar power: weather driven and intermittent (variable output)
Difficulty to produce the energy quantity equivalent to that produced by non-renewable fuels – capability to perform when called upon
Technology required to trap renewable energy is costly (energy storage)
Questions arise as to cost effectiveness Alterations to landscape – use of technologies
to harness resources not “natural” to landscape
Some “Cons” to Renewable Energy Resources
Better Energy Storage Technologies
Source: “Energy 2020 - A Vision For America's Energy Future” – U.S. Senator Lisa Murkowski 113th Congress
Significance of Microgrids
Economic Aspects of DER
Source: Electric Power Research Institute (EPRI), Inc. - The Integrated Grid: Realizing the Full Value of Central and Distributed Energy Resources
The Economics of DER
Source: Electric Power Research Institute (EPRI), Inc. - The Integrated Grid: Realizing the Full Value of Central and Distributed Energy Resources
Germany’s deployment of solar and wind – a cautionary tale:◦ Energiewende (“Energy Transformation”) –
German Renewable Energy Act of 2000◦ Distributed PV was deployed with little time for
effective integration◦ Resources located without attention to grid design
and power flow limitations◦ Dramatic effect on electricity prices
The Economics of DER
U.S. Homeowners do care about clean energy, but economics rule.
2014 Poll Results – national survey commissioned by Solar City and Clean Edge [Zogby Analytics Polling Firm]◦ Homeowners want energy options◦ Support for renewables are widespread◦ Homeowners weigh environmental impact on
their car, home and other major purchases◦ BUT, Economics rule!
The Economics of DER
The Economics of DER
Source: Electric Power Research Institute (EPRI), Inc. - The Integrated Grid: Realizing the Full Value of Central and Distributed Energy Resources pg. 16
David StipplerUtility Consumer Counselor
www.in.gov/ouccPhone: 317.232.2494Direct: 317.233.3232
Toll Free: 1.888.441.2494
Contact Information