what are distributed energy resources worth? · usea briefing, february 22, 2017 vazken kassakhian,...
TRANSCRIPT
What are Distributed Energy Resources Worth? USEA Briefing, February 22, 2017
Vazken Kassakhian, SEPA Research Analyst
About SEPA
SEPA’s mission is to facilitate the utility industry’s smart transition to a clean energy future through education,
research, and collaboration.
www.sepapower.org
www.sepapower.org
Context of Changes & Challenges in Sector
Source: Smart Electric Power Alliance
www.sepapower.org
DER Capabilities - 1
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
DER Capabilities - 2
Source: Smart Electric Power Alliance, Beyond the Meter | Distributed Energy Resources Capabilities Guide, 2016
https://sepa.force.com/CPBase__item?id=a12o000000SjefkAAB
www.sepapower.org
Electric Power Industry Capital Expenditures
Source: EEI Finance Department, company reports, S&P Global Market Intelligence (August 2016).
108.6101.2
92.2
120.8
104.5
96.5
59.9
74.1
82.877.7
74.378.6
90.3 90.396.1
103.3
$30 B
$40 B
$50 B
$60 B
$70 B
$80 B
$90 B
$100 B
$110 B
$120 B
$130 B
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Actuals
Projections (Sept. 2015)
Projections (Aug. 2016)
www.sepapower.org
Projected Functional CapEx
Source: EEI Finance Department, company reports , S&P Global Market Intelligence (August 2016).
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
Distribution Capacity Investments
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
Effect of DER on Expenditures - 1
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
Effect of DER on Expenditures - 2
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
Effect of DER on Expenditures - 3
www.sepapower.org
Local Peaks Vary
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
Local Areas by Peak Load Shape
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
Right DER, Right Location, Right Time
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
DER Constraints on Dispatch
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
Operating Constraints on Locational Value
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
DER Constraints
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
Criteria for Resource Flexibility
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
LCCF - 1
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
LCCF - 2
Source: Smart Electric Power Alliance & Nexant, Beyond the Meter | Addressing the Locational Valuation Challenge for Distributed Energy Resources, 2016
https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
www.sepapower.org
SCE Using DER to offset 300 MW of Peak Load
Source: Smart Electric Power Alliance, Beyond the Meter | The Potential for a New Customer-Grid Dynamic, 2016
https://sepa.force.com/CPBase__item?id=a12o000000QuxopAAB
www.sepapower.org
Cost Tests Summary
Name Perspective Description
Total Resource Cost
(TRC)
Utility + Participant Combines the costs and benefits of the
program administrator (usually the utility)
and the participants
Program Administrator
Cost (PAC)
Utility Includes costs and benefits experienced
by the program administrator (usually
the utility)
Ratepayer Impact
Measure (RIM)
Impact on rates Includes all PAC costs and benefits, plus
changes in revenues
Participant Test (PCT) Participant Includes costs and benefits experienced
by the participants
Societal Cost Test (SCT) Society Includes all TRC costs and benefits, plus
several environmental benefits and a
lower discount rate
Source: CA Standard Practice Manual & Navigant
CA: Myriad of tests for DERs
www.sepapower.org Source: CA PUC
CA: Myriad of tests for DERs
www.sepapower.org Source: CA PUC
www.sepapower.org
New York’s BCA
Source: SEPA & ScottMadden
www.sepapower.org
CA’s LNBA
Source: SEPA & ScottMadden
www.sepapower.org
A Continuum of Approaches
www.sepapower.org
Key Publications
Beyond the Meter: Addressing the Locational Valuation Challenge for Distributed Energy Resources
URL: https://sepa.force.com/CPBase__item?id=a12o000000RNvYdAAL
Beyond The Meter: The Potential for a New Customer-Grid Dynamic
URL: https://sepa.force.com/CPBase__item?id=a12o000000QuxopAAB
Distributed Energy Resources Capabilities Guide
URL: https://sepa.force.com/CPBase__item?id=a12o000000SjefkAAB
51st State Perspectives | Distributed Energy Resources Integration: Policy, Technical, and Regulatory Perspectives from New York and California
URL: https://sepa.force.com/CPBase__item?id=a12o000000Vd348AAB
Vazken Kassakhian
Research Analyst
Smart Electric Power Alliance
1220 19th St NW, Suite 800
Washington, DC 20036
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