Robin E Manning

Vice President - Transmission, EPRI

PSERC Summer Workshop

July 15, 2015

Value of the

Integrated GridUtility Integrated Distributed

Resource Deployment

2

EPRI’s Integrated Grid Concept

Extensive Electricity Sector Stakeholders in All Phases

Phase 1

Integrated Grid

(IG) Paper

FEB 2014

Phase 2

Benefit/Cost

Assessment

OCT 2014

Phase 1

IG Pilots

NOW

3

Action Plan

Inform

Stakeholders on

Key Concept &

Challenges

Benefit/Cost

Framework for

Different Designs

Global

Demonstrations

Data, Information

and Tools

Global Collaboration to Establish the Science, Engineering and Economics

4

EPRI Whitepapers

Aligned with the Integrated GridPhase 1

Integrated Grid

(IG) Paper

FEB 2014

Grid Modernization

– Power System Resiliency

– Physical Security, EMP, GMD, Sensors, UAV, Advanced Structures

Communication Standards and Interconnection Rules

– Recommended Settings for Voltage and Frequency Ride-Through of Distributed Energy Resources

– Are Current Unintentional Islanding Prevention Practices Sufficient for Future Needs

Integrated Planning and Operations

– Contributions of Supply and Demand Resources to Required Power System Reliability Services

– Distribution Feeder Hosting Capacity: What Matters When Planning for DER

Informed Policy and Regulation

– Power System Flexibility (PS Connectivity pending)

– Importance of Capacity and Energy in Supply and Demand

5

Integrated Grid - Benefit Cost Framework Phase 2

Benefit/Cost

Assessment

OCT 2014

6

Utility Scale PV

Utility Scale PV + Storage

Distributed Storage

Microgrids

EV Charging Infrastructure

Customer Side Technologies

EPRI Integrated Grid Pilots: Building an Industry Repository of

Integration Approaches, Benefit-Cost and Business Models

7

Why Integrated Grid Pilots and EPRI?

An Integrated Approach

Uses consistent, transparent

methodology intended to be

broadly applicable

Goes considerably beyond

technology demonstrations

– Performance, costs,

environmental and operational

impacts and business models

Assesses societal and grid

benefits that far outweigh

technology benefits alone

Requirements and approaches for

integration at much larger scales

EPRI’s Role

Develop requirements for

integrated approach

Help implement approach

– For planned or existing technology

deployments

Collect and analyze data to

assess costs and benefits

Inform and benefit industry

research programs to enhance

industry platforms and standards

for integration

8

Integrated Approach to Deploying

Distributed Energy Resources (DER)

The integrated

approach allows

Local Energy

Optimization to

become part of

Global Energy

Optimization

Discussion Topics

DER technology

outlook

Value of Integrated

Grid

Examples of

Integrated approach

for DER

TheIntegrated

Grid

9

Value of the Grid to DER

16

14

12

10

8

6

4

2

0

0 2 4 6 8 10 12 14 16 18 20 22 24

Hour

PV Output

Residential Load

Power (kW)

10

Grid Connectivity Reduces Harmonic Impact

11

Mon Tue Wed Thu Fri Sat Sun

5

4

3

2

1

0

-1

-2

-3

Site D

em

an

d (

kW

)Value of Grid for a Net Zero Energy Home

Capacity

Capacity

Need to Value Both Capacity and Energy

12

Outlook of Residential and Commercial PV

Factoids1

Residential system prices fell

7%, from $4.91/W (1Q13) to

$4.56/W (1Q14)

Non-residential system prices

fell 5.7% year-over-year, from

$3.95/W to $3.72/W

Supply Chain, Overhead and

Margins – largest cost category

(40%)

Other significant include the PV

module (20% of total pricing)

and direct installation labor

(13%) of total pricing).

Trends

Residential PV installations exceeded non-residential

More than 1/3 of residential PV installations came on-

line without any state incentive

School, government, and nonprofit PV installations

increasing

Future price decline will depend on addressing soft costs

2009

$8.00

2014

$4.56

Residential PV System Price PV Module Price Trend

1SEIA/GTM Research 1Q2014 PV

43% decline in 5 years

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

$0.001990 1995 2000 2005 2010 2015

PV Module Price

per Watt

Key contributor to

price reduction

13

Lithium Ion Technology Outlook

$180-$225

$100-$120

$1000-$1200

$500-$600

$400-$500

$200-$250

Projected Cost (in $/kWh) 2015 2020

Cell

Battery Pack

Residential

ES System

$800-$1000

$400-$500

Utility Scale

ES System

Costs can differ significantly at the cell, battery pack, and complete system levels

14

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Controlled Water Heater (kWh)Uncontrolled Water Heater (kWh)

Smart Appliance as a Grid Resource

Water Heater – Passive Energy Storage

Average energy draw profile of an electric water heaterIntelligent set point control, charging and discharging decoupledIntelligent set point control to provide grid benefits

Hours

kW

15

Substation

Line Regulators

1.10

1.05

1.00

0.95540480420360300240180120600 600

Time (sec)

Voltage (pu)

No Control

Voltage at END of Feeder

Value of an Integrated Approach:

Smart Inverter Assisted Voltage Control

Volt/Var Control

Simulation results indicate use of smart

inverters can mitigate many of the voltage

issues resulting from PV

16

Multiple Applications for Distributed Storage

Key long-term need: distribution communication/control platform to integrate and optimize

Dispatch Priority 1

Dispatch Priority 2

Dispatch Priority 3

Distribution

Investment

Deferral

System Electric

Supply Capacity

Electric Energy

Time ShiftRegulation

Spinning

Reserve

Non-Spinning

Reserve

DistributionSubstation

SubstationStorage

Community Storage

ResidentialStorage

17

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total Fixed Total Variable

Utility #1

Utility #2

Utility #3

Utility #4

Utility #5

Utility #6

Utility #7

Utility #8

Utility #9

Utility #10

Analysis of cost for 10 representative US utilities

Cost Composition of Residential Bills(approximated from public data)

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Key Research Challenges: Enable Integration of

Customer Resources

Grid Ops & Planning Integration Unproven

Reliable forecasts of availability and dispatch-ability

of customer resources needed for ops and planning

Integration Platforms Early Evolution

Platforms to link and aggregate devices (controls,

inverters, appliances) at the customer premises

Customer Adoption and Use Not Modeled

No robust model to estimate customer adoption

and use of technology and resultant grid impacts

Load Impacts Highly Uncertain

New technologies are altering load shapes in

ways we are only beginning to comprehend

Measurement & Verification Needed

Methods to characterize benefits and impacts

attributable to customer resource interventions

19

Together…Shaping the Future of Electricity

Electric Power Research Institute