Its About Time.& Location by Doug Staker VP of Utility - PowerPoint PPT Presentation

It’s About Time….& Location by Doug Staker – VP of Utility Development- Enel X

Enel Group today Evolution and achievements since 2014 1 #1 renewable operator #1 private network globally operator globally ~40GW managed 65 mn end users and capacity 2 44 mn digital meters  47 GW thermal capacity  20 mn free retail Highly flexible and efficient customers assets #1 in Italy, Iberia and 10 GW capacity closure top 3 in Latam 1. 2014-2017 delivery. As of 2017E Countries of presence 4 2. Including replacement of smart meters 2.0 in Italy. Enel global market share equal to 24% (BNEF 3Q17 Energy Smart technologies market Outlook) 3. Consolidated capacity equal to 37 GW (including 25 GW of large hydro) 4. Presence with operating assets

United Nations' Intergovernmental Panel on Climate Change • We have until 2030 to mitigate Climate Change and keep temperature rises to a maximum of 1.5ºC. • The report suggests human-caused CO2 emissions will need to fall 45% from 2010 levels by 2030 in order to reach "net zero" by 2050 Courtesy Utility Dive

Locational Value of Storage

Energy and Power Energy is the measure of electrons delivered- kWh Think of Energy measurement as the Odometer Power is the measure of the “rate” that electrons were delivered Power = Capacity = Demand Think of Power Measurement as the Speedometer It is also measured in kWh/h but is written as kW

Load Duration Curve

Generation Optimization

Con Edison Seasonal Line Losses

Time Variable Distribution “Cost” Marginal Line losses are exponential and are dynamic based on the I 2 R Losses. Average losses are measured over an extended time period overlook the benefits of load reduction at Peak periods. Graph Courtesy of the Regulatory Assistance Project

Challenge in California • Solar Production has changed Time of Use Pricing Before 2018 Peak 12pm-6pm 4pm -9pm Mid Peak 8-12pm & 6-10pm 10pm-8am Off Peak 10 pm- 8 am 8 am- 4 pm

Regulatory Reform- Performance Based Earning Adjustment Mechanisms Programatic • BQDM-Brooklyn Queens Demand Management • NWA-Non Wire Alternatives • DMP II- Demand Management Program. OutCome Based • Increased DER Deployment • Network Load Factor Imporvement • Green House Gas Reduction

GHG EAM

Rate Evolution We can’t build a digital power grid based on an analog rate design Monthly Daily Hourly

A Move to Daily Demand Charges Convert from a monthly structure to a daily structure with TOU Locational value

Con Ed Brooklyn Locational Peak Periods Borough Hall 11 AM to 3 PM Bay ridge & Park Slope 2 PM to 6 PM Williamsburg & Ocean Parkway 4 PM to 8 PM Ridgewood, FlatBush, Crown Heights, Flatbush, Sheepshead Bay, Brighton Beach 7 PM to 11 PM

NYISO Day-Ahead Locational Marginal Pricing LMP for Energy Supply

The Digital Power Grid “ The electric industry is in a period of momentous change. The innovative potential of the digital economy has not yet been accommodated within the electric distribution system. Information technology, electronic controls, distributed generation, and energy storage are advancing faster than the ability of utilities and regulators to adopt them, or to adapt to them. At the same time, electricity demands of the digital economy are increasingly expressed in terms of reliability, choice, value, and security.” Opening Paragraph: ORDER ADOPTING REGULATORY POLICY FRAMEWORK AND IMPLEMENTATION PLAN New York Public Service Commission- February 26, 2015

Thank You Doug Staker VP of Utility Business Development Enel