W ELCOME California Energy Storage Roadm ap 2 nd W orkshop - - PowerPoint PPT Presentation

SAFER, SMARTER, GREENER

W ELCOME California Energy Storage Roadm ap 2 nd W orkshop

California Public Utilities Com m ission October 13, 2014 San Francisco

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Other I nform ation

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WiFi Access:

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down the far end of the hallway.

W ebEx https: / / van.webex.com/ van/ j.php?M TID= me542331f2d17612890abe1de 7ff7dc86 Meeting Number: 744 518 573 Meeting Password: storage Teleconference inform ation Call-in: 866-778-0461 passcode: 3664376

W ebsites:

CPUC: http: / / www.cpuc.ca.gov/ PUC/ energy/ Storage_Roadmap.htm CAISO: http: / / www.caiso.com/ informed/ Pages/ CleanGrid/ EnergyStorageRoadmap.aspx

Agenda

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10: 00–10: 15 Introduction Arthur O’Donnell 10: 15 –10: 30 Translating Barriers to Actions Heather Sanders 10: 30–12: 30 Actions to Advance Revenue Opportunities Olof Bystrom Lorenzo Kristov Aloke Gupta 1 2 :3 0 – 1 :3 0 Lunch Break 1: 30–2: 30 Actions Targeted at Cost Reduction Beth Reid Peter Klauer Mike Gravely 2: 30–3: 00 Actions Focused on Process and Timing Improvements Rick Fioravanti Tom Flynn Jamie Ormond 3: 00-3: 30 Identify Interdependencies and Determine Priorities to Minimize Delays Heather Sanders Arthur O’Donnell 3: 30-4: 00 Applicability to Storage Configuration and Use Cases Robert Anderson Heather Sanders 4: 00-4: 30 From Actions to Solutions – The Way Ahead Tom Flynn Aloke Gupta Mike Gravely 4: 30 Adjourn Arthur O’Donnell

Thank you for providing com m ents from Septem ber 4 w orkshop.

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24M Technologies Quanta Technology Alton Energy SCE CESA SDG&E EPRI The Cool Solutions Company Iberdrola Renewables The Energy Coalition MegaWatt Storage Farms The Nevada Hydro Company MESA Standards Alliance The Six Cities Office of Ratepayer Advocates Trimark Associates PG&E

Overview of initial public outreach by DNV GL and Olivine

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Translating barriers to actions

Heather Sanders, California I SO

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Barriers em erge based on objectives to m axim ize revenue, m inim ize cost, and m anage tim e.

Products and services Rules and requirements Complexity and uncertainty

Revenue Costs Time

• Financial barriers
• Ancillary Service barriers
• Market and Regulatory

barriers

• Standards barriers
• Metering barriers
• Telemetry barriers
• Interconnection barriers
• Modeling Barriers

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From Barriers to Actions Actions

• Revenue Opportunity

Ancillary Services Financial Interconnect ion Market and Regulation Metering Modelling Standards Telemetry

• Defining and communicating grid needs will

clarify gaps help identify new products

x x x

• Clarify existing wholesale market product
• pportunities for storage

x x x

• Refine existing and add new wholesale market

products to meet grid needs

x x x

• Identify gaps in rate treatment and identify

existing rules that could address issues

x x x

• Define multiple-use applications of storage to

facilitate development of models and rules

x x

• Determine hybrid storage configurations to

enable prioritization and development of requirements

x x x x

• Assess existing methodologies for evaluating

storage and identify or develop a preferred common methodology

x

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From Barriers to Actions Actions

• Cost Reduction

Ancillary Services Financial Interconnec tion Market and Regulation Metering Modelling Standards Telemetry

• Review metering requirements for opportunities

to reduce costs

x x

• Review telemetry requirements for
• pportunities to reduce costs

x

• Assess codes and standards to identify gaps and

best practices

x x x x

• Review interconnection process for small

distribution-connected resources

x Actions

• Process and Tim ing
• Clarify interconnection processes to make it

predictable and transparent

x

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Actions to Advance Revenue Opportunities

Olof Bystrom , DNV GL Lorenzo Kristov, California I SO Aloke Gupta, CPUC

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Several actions w ere identified to enhance understanding and expand revenue opportunities for energy storage.

• Define and communicate grid needs
• Clarify existing wholesale market products
• Refine existing and evaluate the need for new

wholesale market products

• Identify gaps in rate treatment and identify

existing or new rules that could address issues

• Define multiple-use applications of storage
• Determine hybrid storage configurations
• Assess existing methodologies for evaluating

storage and identify or develop a preferred common methodology

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Products and services

Revenue

• Financial barriers
• Ancillary Service barriers

Defining and com m unicating grid needs w ill clarify gaps in existing m arkets and help identify new products. Actions Venue( s) Describe and clarify operational needs at the transmission level, and the operating characteristics required of storage and other resources, connected at either the distribution or transmission level, in order to meet these needs. CAISO Describe and clarify operational needs at the distribution level, and the operating characteristics required of storage and other resources connected at the distribution level in

• rder to meet these needs.

CPUC Facilitate clarification by IOUs of operational constraints that would limit the ability to accommodate storage on the distribution system and behind the customer meter. CPUC

“Energy storage in California is facing a bit of a “cart before the horse” syndrome in

that there are statutory mandates and targets for procurement by utilities; however, the market rules, grid needs and general regulatory framework to value and process energy storage products does not yet exist” – Iberdrola Renewables

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Clarification and education about existing w holesale m arket product opportunities for storage is needed. Actions Venue( s) Clarify existing energy and ancillary service market products and requirements for energy storage to participate in the ISO market. CAISO Clarify roles of storage in an evolving Resource Adequacy framework. CPUC

• It appears that stakeholders do not fully understand the range of wholesale

market products and models that exist today, causing the perception that there is a lack of wholesale products that value the services that energy storage can provide.

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Refine existing and evaluate the need for new w holesale m arket products to m eet grid needs. Actions Venue( s)

• Identify gaps and consider changes or additions to

existing wholesale market products that would better meet grid needs and improve revenue opportunities for resources such as storage that can provide those needs. CAISO

• Further examine and clarify the role of storage in deferring
• r eliminating the need for transmission or distribution

upgrades. CAISO, CPUC

• Consider revising the ISO’s procedure for testing and

certifying resources for ancillary services. (COST reduction action) CAISO

• Streamline rules for aggregation of distributed storage

units to participate in ISO markets, including participation via use of the NGR model. CAISO

• Evaluate the need and potential for the development of

distribution level grid services and products that provide new revenue opportunities for distribution connected storage resources. CPUC

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I dentify gaps in rate treatm ent and identify existing or new rules that could address issues. Actions Venue( s) Clarify rate treatment for the charging mode of grid- connected or distribution-connected storage participating in the wholesale market under current ISO market settlement rules. CAISO, CPUC Clarify existing tariffs for Behind the Meter storage devices that are paired with NEM generators. CPUC Consider new proceeding for stand-alone Behind the Meter storage devices to address rates for charging and exporting power. CPUC

Barriers:

• Lack of clarity regarding wholesale versus retail rate treatment for such things

as auxiliary load, station power, and roundtrip efficiency.

• Lack of clarity whether energy storage charging should be considered

measured demand for purposes of infrastructure charges.

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Define m ultiple-use applications of storage to facilitate developm ent of m odels and rules. Actions Venue( s) Define and develop models and rules for multiple-use scenarios of storage where feasible. CPUC, CAISO

“Multiple-use” or “dual-use” refer to scenarios in which a storage facility seeks to provide service to multiple entities and is compensated through multiple revenue streams. Barriers:

• Lack of clarity regarding various types of “multiple-use” arrangements of

storage, including:

• Serving as a transmission asset and recovering part of its costs through

the transmission access charge (TAC) while also participating in the markets and earning market revenues. ( This is disallow ed by FERC)

• Providing reliability services to the distribution grid and market services to

the wholesale market.

• Providing load-management services to end-use customers while also

participating in the wholesale energy market.

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Determ ine hybrid storage configurations to enable prioritization and developm ent of requirem ents. Actions Venue( s) Identify and develop clear models of use cases for hybrid energy storage sites, and prioritize them for purposes of facilitating their participation. CAISO, CPUC, IOUs For the use cases of greatest interest or greatest likelihood

• f near-term development, clarify the requirements and

rules for participation. CAISO, CPUC, IOUs

Barrier:

• Lack of clarity regarding definitions, configurations and uses of behind-the

meter storage and generation combinations. The lack of clear definition for the term “hybrid storage” and “dual use” with respect to site configuration and programmatic assumptions could create ambiguity with respect to which rules and regulations are applicable. “Hybrid” refers to configurations in which a storage facility is paired with and functions in coordination with another non-storage type of resource or an end-use customer load

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Assess existing m ethodologies for evaluating storage and identify

• r develop a preferred com m on m ethodology.

Actions Venue( s) Prepare report or summary of efforts underway to develop publicly available models for assessment of energy storage. CEC Consider refinements to the evaluation methodologies used by IOUs for to support CPUC decisions on storage procurement. CPUC

Barrier:

• Lack of transparent, common methodology and tools for evaluating storage for

use by utilities and the CPUC in making procurement decisions.

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Actions Targeted at Cost Reduction

Beth Reid, Olivine Peter Klauer, California I SO Mike Gravely, Energy Com m ission

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Several actions w ere identified reduce cost in areas of interconnection, standards, and m etering and telem etry.

• Review metering requirements for
• pportunities to reduce costs
• Review telemetry requirements for
• pportunities to reduce costs
• Assess codes and standards to

identify gaps and best practices

• Review interconnection process for

small distribution-connected resources to reduce costs

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Rules and requirements

Costs

• Market and Regulatory

barriers

• Standards barriers
• Metering barriers
• Telemetry barriers

Review m etering requirem ents for opportunities to reduce costs. Actions Venue( s) Establish the value of and develop a regulatory and policy framework under which the ISO and the utility can share metering and/ or meter data. CPUC, CAISO Establish rules for resource owners to submit settlement quality meter data. CAISO Establish rules for utility subtractive metering for behind the meter wholesale resources. CPUC Establish rules for certifying sub-metering and third-party meter data collection and VEE. CPUC Complete the Expanding Metering and Telemetry Options Phase I and II initiatives – “expand scenarios for SC metered entities”. CAISO

Barrier:

• Concern over expensive and potentially duplicative metering requirements for

energy storage assets.

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Review telem etry requirem ents for opportunities to reduce costs Actions Venue( s) Evaluate CAISO telemetry requirements for smaller resources. CAISO Evaluate KYZ, increasing 1-minute requirement, 10 MW limit. CAISO Evaluate value of common telemetry framework for California. CAISO Complete the Expanding Metering and Telemetry Options Phase I and II initiatives – definition and support for “data concentrators”. CAISO

Barrier:

• Concern over cost of telemetry with respect to CAISO requirements for

purchase and installation of hardware solution and around the clock network connectivity.

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Assess codes and standards to identify gaps and best practices. Actions Venue( s) Review existing fire protection codes for various energy storage technology and applications and identify best practices. CEC Determine applicability and scope of UL and other certifications for stationary storage systems. CEC

Barrier:

• Lack of standards and codes that currently apply and should apply to energy

storage.

• Safety and operational standards and codes applicable to energy storage

should be identified.

• The areas in the energy storage deployment that require standardization

should to be identified.

• Existing standards applicable to energy storage need to be updated.

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Review interconnection process for sm all distribution-connected resources to reduce costs. Actions Venue( s) Address certification process for integrated device metering. CPUC Address fees for interconnection of non-exporting resources. CPUC

Barrier:

• Concerned with interconnection costs, in particular those applicable to small

distribution-connected resources.

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Actions Focused on Process and Tim ing I m provem ent

Rick Fioravanti, DNV GL Tom Flynn, California I SO Jam ie Orm ond, CPUC

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Clarify interconnection processes to m ake it predictable and transparent Actions Venue( s)

• Clarify existing interconnection processes, including

developing process flow charts and check lists. CAISO, CPUC

• Coordinate between Rule 21 and WDAT to

streamline queue management processes. CPUC

• Evaluate the potential for a streamlined or ‘faster

track’ interconnection process for storage resources that meet certain use-case criteria. CAISO, CPUC, IOUs

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Complexity and uncertainty

Time

• Interconnection barriers
• Modeling Barriers

I dentify I nterdependencies and Determ ine Priorities to Minim ize Delays

Heather Sanders, California I SO Arthur O’Donnell, CPUC

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Applicability to Storage Configuration and Use Cases

Robert Anderson, Olivine Heather Sanders, California I SO

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The m atrix seeks to convey w hat actions facilitate each use case to realize energy storage contributing to the grid.

Action

Define and com m unicate grid needs Clarify existing w holesale m arket product opportunities for storage

I nterconnection location Configuration Transm ission / W holesale Participation Distribution Application Detailed Action 1 Detailed Action 2 Detailed Action 3

Clarify

• perational

needs at transm issio n level Clarify

• perational

needs at distribution level Facilitate clarification by I OUs of

• perational

constraints Clarify existing energy and AS m arket products in I SO m arkets Clarify roles of storage in an evolving RA fram ew ork

Transmission Stand-alone Energy Storage All or combination Energy, Non-Spin, Spin, Regulation None Relative Score Relative Score Relative Score 3 N/ A 1 1 2 … … Distribution … … Behind the meter Customer-sited, separate meter All or combination Energy, Non-Spin, Spin, Regulation Demand charge management Relative Score Relative Score Relative Score 2 1 2 3 2

…

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Where the resource connects to the grid Technology and co-location with other resources Services provided to the wholesale market / transmission grid Services / application provided to the distribution grid / retail customer General and specific actions that advance energy storage Level of impact each action has on advancing the configuration to provide grid services. Example

From Actions to Solutions – the W ay Ahead

Tom Flynn, California I SO Aloke Gupta, CPUC Mike Gravely, CEC

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Stakeholder participation continues to be crucial.

• Please provide comments by October 27
• Early submission of comments help facilitate refining of Roadmap

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Stakeholder participation continues to be crucial Early subm ission

• f com m ents help facilitate refining of Roadm ap.

Date Roadm ap Milestone September 18 Stakeholder comments due October 2 Publish draft Roadmap October 13 Stakeholder workshop # 2 October 2 7 Stakeholder com m ents due November TBD Considering Stakeholder conference call December Publish final Roadmap

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Thank you for your participation!

E-m ail us at the energy storage m ailbox: EnergyStorage@caiso.com Find inform ation at the Energy storage roadm ap w ebsite: http:/ / w w w .caiso.com / inform ed/ Pages/ CleanGrid/ Energ yStorageRoadm ap.aspx

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