Comments Off on Integrate to zero: Policies for on-site, on-road, on-grid distributed energy resource integration
To meet decarbonisation goals, global renewable power capacity will need to more than triple by 2030, according to leading energy agencies. Centralised renewable generation will not deliver this level of change on its own, nor should it. Distributed energy resources (DERs) such as heat pumps, electric vehicles, small-scale solar generation and battery storage are essential to ensuring that clean power is the most affordable and reliable option for all countries.
Distributed energy resources must be effectively integrated with the grid if they are to fulfil their potential. Integration allows them to be used flexibly to draw power from or feed power into the grid according to the value their flexibility provides to the electricity system. This reduces carbon emissions from fossil generation used to meet peaks in electricity demand, increases system resilience, and benefits all consumers through the lower prices resulting from avoided generation and network capacity costs.
RAP sets out four key policy approaches that will help promote the effective integration of behind-the-meter distributed energy resources:
A strong set of enabling policies can remove barriers to DER integration. Together, they augment the flexibility potential of DERs and enable their participation in power system optimisation.
Price signals should reflect power system optimisation needs. Payments for energy services should vary in proportion to how much, when and where they are used or delivered.
Cost-reflective price signals should be combined with fair market access for distributed energy resources. With nondiscriminatory access to energy service markets and with pricing that reflects the full value of DERs, third-party service providers can shield consumers from price volatility in return for flexible management of DERs within agreed boundaries.
International collaboration among policymakers and regulators can spread best practice. Cross-border knowledge transfer among regulators is a growing phenomenon and can help each place to find its own way, guided by local circumstances, politics and experience.
The authors explore each of these insights in greater detail. They also highlight best practices from around the world, with contributions from RAP colleagues Raj Addepalli, Max Dupuy and Jessica Shipley.
Comments Off on Building a Next-Generation Mix of Energy Resources: Procurement Best Practices
In an interactive webinar presentation, panelists discussed a “next-generation” approach to utility procurement and evolving best practices, based in part on recentwork done by RAP and RMI. The webinar offered recommendations on how to design clear rules for procurement processes that consider all available resources, are aligned with both utility and public-policy objectives, and result in outcomes that offer the “least regrets.”
Comments Off on Non-wires alternatives can be a solution to India’s grid reliability challenge
India’s electricity regulators, at the central and state level, are tasked with setting appropriate regulations and standards that govern grid reliability and protect consumer rights. While the incidence of complete blackout is rare, the reliability of distribution networks — better known as discoms in India — is below par, especially in rural areas.
One of the main reasons for inaction by discoms is that they have limited financial resources to invest in network upgrades — a key prerequisite to strengthening the local grid. Discoms struggle to meet their working capital requirements. Raising funds for long-term capital expenditure is therefore an even bigger challenge.
Discoms can now, however, think beyond traditional network upgrades to meet local reliability and power quality requirements in a much cleaner and more efficient way. Technological improvements and maturation have driven cost reductions for several newer modular solutions, such as rooftop PV, energy storage, or microgrids. This holds promise to solve the grid reliability challenges in a more sustainable way. There are some insights to be gained by taking a look at the experience of utilities and regulators elsewhere, in building up the ecosystem for newer solutions to work.
Non-wires alternatives
Non-wires alternatives (NWAs) refers to technologies and other interventions that can, individually or collectively, present an alternative to traditional wired solutions such as new and upgraded distribution lines, feeders and substations. Typically, NWAs include a combination of distributed generation, demand response, energy storage and end-use energy efficiency measures to meet a given set of network requirements.
Motivations for the promotion of NWAs differ from region to region. In some places, they are being promoted with an aim to integrate a larger share of cleaner energy resources; while in other places it is to decrease the variable and fixed costs of distribution utilities. Elsewhere, NWAs are promoted as a means to increase the resiliency and reliability of the local grid.
The Bonneville Power Administration in the northwest of the United States, was an early employer of NWAs. In the 1990s, it cost-effectively deferred expensive network upgrades in the San Juan Islands by investing primarily in broad-based efficiency measures (such as lighting, insulation, heating and cooling, and process equipment) in homes and businesses.
More recent examples include the Brooklyn-Queens Demand Management (BQDM) programme and the Oakland Clean Energy Initiative. The BQDM programme allowed New York’s distribution utility, Consolidated Edison, to achieve 50 megawatt (MW) peak demand reduction with demand-side resources, thereby deferring a $1.2 billion substation upgrade. In the case of Oakland Clean Energy Initiative, the utility was able to retire an uneconomic power plant without a transmission upgrade.
Role of regulators
Typically, regulators play tough when they scrutinise a discom’s capital expenditure plans, a majority of which involves low-voltage distribution network upgrade, partly because the discoms have an inherent financial motivation to spend — at times beyond what is reasonably required — to earn an almost-assured rate of return. It is also partly due to the public pressure put on regulators when they are asked to approve higher costs and, in turn, hikes in retail tariffs.
Regulators should be guided by three core objectives during the process of annual capital expenditure approvals: optimisation of grid investments and performance; integration of cost-effective non-wires alternatives; and increased customer engagement.
Typically, regulators play tough when they scrutinise a discom’s capital expenditure plans.
A prerequisite for these is an environment that requires discoms to engage stakeholders in a public resource planning and power procurement process. Such engagement builds trust and a shared vision — a distribution system plan that the regulators, discoms, and public can support — and thus a greater likelihood that desired outcomes will be achieved.
It will not be easy, but it is worth the effort. Regulatory commissions will have the challenging task of making sure participants are motivated (mostly financially) to shift to a new approach to grid planning and investment that will encourage and accommodate a variety of solutions. This means that, among other things, access to usage and other relevant data by NWA service providers will be critical. By opening up the network in this way, regulators can encourage innovation in product offerings for enhancing reliability, improving environmental performance and lowering overall costs.
Integrated planning
Traditionally, high value-usage consumers have invested on their own in resources, especially diesel backup generators, to ensure uninterrupted power supply where the discom network is unreliable. That leads to an increase in the total cost of electricity procurement for these consumers. With an increased role of the regulator and deployment of low-cost, cleaner modular solutions, the total cost of reliability can be reduced for all consumers in the system.
It is essential that discoms open up to the possibility of an integrated approach for planning network upgrades, benefit from new technologies, and the regulator should take the lead in seeing this through. The way to move ahead lies in reimagining the system as one in which end-users are partners with the discoms in creating value for the network and themselves.
Perhaps the place to start on that journey is to create a new approach to infrastructure planning, one that will drive solutions that create greater societal benefits than costs. But this is unlikely to be enough so long as discoms lack the motivation to do so. The societally preferred outcome should also be the preferred course of action for discoms. It is therefore up to regulators and policymakers to create the means for fairly evaluating NWAs and incentivising discoms to create and manage this change for a better societal outcome.
Licensed with permission from the California ISO. Any statements, conclusions, summaries or other commentaries expressed herein do not reflect the opinions or endorsement of the California ISO. （图1经加州ISO授权许可。本文所表达的任何陈述，结论，摘要或其他评论均不代表加州ISO的观点或认可）
物理和运行特征-电储能出力受到物理上下充放电容量限制和爬坡速率的影响，需要在这些限制下保证电池能够完成调度指令提供相应的服务。特别地，在运行过程中，电池应该有什么样的荷电状态（state of charge，即电池中可用电能的状态），由电池自己管理或者ISO来帮助他们进行优化是电储能参与市场关心的一个问题。在CAISO, 电池储能可以在报价时提交参数，包括最大最小荷电状态，最大最小容量限制，之后由CAISO在市场优化时体现这些参数。或者，他们也可以不提交荷电状态参数选择自己管理。最新的提议是允许参与者明确一小时运行之后他们希望达到的荷电状态，以方便储能资源本身和调度的实时管理，并保证NGR对满足日前电能量市场，辅助服务以及长期资源充足等要求不发生冲突。
Licensed with permission from the California ISO. Any statements, conclusions, summaries or other commentaries expressed herein do not reflect the opinions or endorsement of the California ISO.（图2经加州ISO授权许可。本文所表达的任何陈述，结论，摘要或其他评论均不代表加州ISO的观点或认可）
Comments Off on Vehicle-to-Grid: Right At Your Doorstep
In a webinar presentation, Jeffrey Taft of the Pacific Northwest National Laboratory, Chris King of Siemens, and Willett Kempton and Sara Parkison of the University of Delaware discussed strategies for moving forward on the adoption of vehicle-to-grid technology, including grid architecture needs, interoperability and regulatory improvements. David Farnsworth moderated the discussion.
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