Load Shift Working Group OCTOBER 24, 2018 10AM – 3:30PM PST CPUC COURTYARD ROOM https://gridworks.org/initiatives/load-shift-working-group/
Agenda 10:00AM -10:30 AM: Intros, Updates, and Purpose ▪ Introductions ▪ DR Regulatory Updates ▪ Re-Cap on Homework Assignments ▪ RA ▪ GHG emissions ▪ Feedback on Proposals Presented to Date (key changes) ▪ Today’s Objective: Refine our thinking on considering additional products and comparing all products. 10:30AM – 11:30 AM: MIDAS Product Proposal ▪ Rick Aslin (PG&E), Michael Lee (Evolve Energy), Henry Richardson (WattTime), and Erik Woychik ( Strategy Integration) . 11:30AM – 12:00 PM: Sunrun Product Proposals ▪ Steven Rymsha (Sunrun) https://gridworks.org/initiatives/load-shift-working-group/
Agenda 12:00 - 1:00 PM: Lunch 1:00 - 2:00 PM: Pay for Load Shape Product Proposal ▪ Peter Alstone (LBNL/ Schatz Energy Research Center/Humboldt State University) 2:00 -3:00 PM: Comparing Product Proposals ▪ Matthew Tisdale (Gridworks) product comparison matrix 3:00-3:30 PM: Next Steps ▪ Final Report Timeline ▪ Update on Future Sessions https://gridworks.org/initiatives/load-shift-working-group/
Introduction and Purpose Introduction: Roll call DR Regulatory Updates Today’s Objective: ▪ Refine our thinking on considering additional products and comparing all products. https://gridworks.org/initiatives/load-shift-working-group/
Resource Adequacy Takeaways (Draft) The following takeaways are Gridworks interpretation of facilitated conversations. They do not represent consensus positions. They will be refined through drafting of the final report. 1. Current Resource Adequacy construct would capture some of the capacity value possible through load shift, but not all: ◦ Recognizes: the capacity value of load shed ◦ Does not recognize: reducing the downward ramp, raising minimum net load, flexible RA provided without also providing System/Local RA 2. Recommendations for changing the Resource Adequacy Construct: ◦ Unbundling Flexible and System/Local RA, allowing load shift to provide Flexible RA ◦ Recognize a new value for downward ramp as a part of Flexible RA ◦ Recognize a new value for raising minimum load https://gridworks.org/initiatives/load-shift-working-group/ https://gridworks.org/initiatives/load-shift-working-group/
RA Subgroup Takeaways (Draft) 3. Consider recommendations exogeneous to changing the RA construct, including: ◦ Recognizing the value of avoiding renewable curtailment ◦ Allowing customers to benefit from negative- or low-price energy ◦ Reduction negative energy prices and commiserate pressure on capacity prices paid to keep critical generation resources financially viable (as necessary) ◦ Impact customer choices on how they adopt/use new assets ◦ Locational value to the distribution system (Distribution Resource Plans/Integration of Distributed Energy Resources constructs). 4. Energy prices may not be enough to induce load shift behavior; monetization of some of the capacity values could be the difference between achieving load shift or not. 5. Performance requirements (e.g., telemetry, response time, response duration) on the providers of load shift. Those performance requirements may vary by the capacity service being provided https://gridworks.org/initiatives/load-shift-working-group/ https://gridworks.org/initiatives/load-shift-working-group/
GHG Emissions Update from Anja Gilbert & Ted Ko https://gridworks.org/initiatives/load-shift-working-group/ https://gridworks.org/initiatives/load-shift-working-group/
Product Proposals Update from Nora Sherif (CLECA) and Jennifer Chamberlin (Cpower) https://gridworks.org/initiatives/load-shift-working-group/ https://gridworks.org/initiatives/load-shift-working-group/
Product Proposal Comparison Preview https://gridworks.org/initiatives/load-shift-working-group/ https://gridworks.org/initiatives/load-shift-working-group/
A B C D E F G H Dispatch Geo- Negative Transaction Role of Third-party Pricing? Settles at... Dispatch Method Granularity Performance Evaluation Role of IOU Aggregators Aggregated Metered + Typical-Use Support Rule 24; Aggregate, Bid, 1 PDR LSR Market Sublap Yes Resource Adjustment LSE Coordinate, Settle Aggregated Meter + Typical-Use Support Rule 24; Aggregate, Bid, 2 LSR 2.0 Market Sublap Yes Resource Adjustment LSE Coordinate, Settle Distribution Operator Signal Based on Market Program 3 CCP Proxy (day-ahead price) Nodal Partial Premise Baseline Administrator Potentially Limited 4 MIDAS Sunrun 5 Integrated Sunrun 6 Informed 10 7 P4LS
MIDAS MARKET INFORMED DEMAND AUTOMATION SERVICE PRESENTATION FOR OCTOBER 2018 LOAD SHIFT WORKING GROUP (LSWG) BY REAL TIME PRICING BREAKOUT TEAM (FROM JULY LSWG MEETING): EVOLVE ENERGY, WATTTIME, CPOWER, WILLDAN , PG&E For LSWG Discussion Purposes Only
PRESENTATION AGENDA ❖ Introductions, Background and Purpose of Presentation ❖ Overview of MIDAS Product ❖ Examples of Current MIDAS-like Products ❖ Evolve Energy/ERCOT ❖ WattTime ❖ Critique and Discussion ❖ Suggested Readings ❖ Summary and Action Items
INTRODUCTIONS, BACKGROUND AND PURPOSE OF PRESENTATION ❖ Introductions ❖ Evolve Energy – Michael Lee ❖ WattTime – Henry Richardson ❖ CPower – Jennifer Chamberlin ❖ WillDan – Eric Woychik ❖ PG&E – Richard Aslin ❖ Background – MIDAS (Market Informed Demand Automation Service) types of products was surfaced in the July LSWG ideation session. LSWG facilitator requested a presentation on the MIDAS product for the October LSWG meeting ❖ Purpose – There is a growing appreciation that a “market informed” product could compliment “market integrated” products in helping the State achieve its goal of a 100% non- emitting electric resource portfolio by 2050. Today’s presentation could provide a framework to pilot a market informed load shift product in future Demand Response Program funding applications.
OVERVIEW OF MIDAS PRODUCT MIDAS encompasses a variety of potential demand automation services deployed by vendors utilizing either a market or grid state informed signal that is acted upon by a controller connected to an end-use. Time granularity of market or grid state informed signals can be as low as 5 minutes but can be forecast for planning purposes for as long as 30-days. Locational granularity of market or grid state informed signals can be as low as a CAISO pricing node or a distribution feeder but can be aggregated or adjusted to meet a variety of use cases. Subscription based business model wherein customer pays vendor for providing signal, automation devices and control API in exchange for vendor providing economic and/or environmental benefits of equal or greater value to the customer.
MIDAS Product Features Technology neutral? Both the market informed signal and the control algorithm can be customized for service to be provided, location on grid, “duty cycle” of end -use technology and customer preferences Required to be Energy Neutral ? No Market Integrated/ Dispatchable No by CAISO? Grid Needs the Product Solves Can be customized could be system GHG, local air for emissions, system or local generation capacity, local T or D congestion management, renewables curtailment Dispatch Granularity Location granularity could be as low as distribution (location/time) transformer bank. Time granularity could be as low as 5 minutes.
MIDAS Business Model Customer is responsible for providing the end-use that can be controlled Customer and for providing a set of preferences regarding how the device is controlled. Demand DRP provides or purchases the signal and provides or purchases the API working with the signal providers and the controller OEMs. The DRP Response develops the “program” offerings and recruits and services the customers. Provider (DRP) LSEs can play the role of DRP or they can fund a third-party DRP or they Load Serving can be passive. Regardless of the role played by the LSE, the LSE should Entity (LSE) be aware of the MIDAS “program” and should include the expected impacts of the MIDAS program in their planning and operational forecasts. Distribution Utility UDC can play various roles. It could inform/modify the signal based on local capacity constraints. It could institute the program directly in an area (UDC) for local needs. etc. Independent ISO is essential in providing the real time price or grid state indicators at the right level of time and locational granularity that is appropriate. System Operator (ISO)
ENERGY EMPOWERING TODAY’S ENERGY CONSUMER Michael Lee, Samit Shah
EVOLVE’S MARKET VISION Market Need Supply has traditionally followed demand. Now demand needs to follow supply. As more inflexible renewable energy comes online, we need demand that adapts to local conditions on a real- time basis. Consumers should be compensated for providing this grid flexibility – reflected in lower prices if they load shift. This transparency is clean, simple, and easy. Complex compensation formulas constructed are almost always out-of-date as soon as they are finalized. Real-time information is the most accurate source. Vision 3 rd parties compete on UI/UX, advanced algorithms, and cost-savings vs. cost charged. The company with the most customer-focused product (usability, cost/value, carbon savings, etc.) will win in the future market. Through load shifting we can increase the value of all renewables and incentivize more to come online.
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