1 Silicon Valley Clean Energy Virtual Power Plant Options Stakeholder Engagement Webinar May 14, 2019
2 Agenda ● 10:00 – 10:30 - Introduction and Goals; Criteria Overview (SVCE) ● 10:30 – 10:40 - Report Out from In-Person Workshop (Gridworks) ● 10:40 – 11:30 - Virtual Power Plan Options and Discussion (Gridworks) ● 11:30 – 11:45 Group Discussion ○ Are there other virtual power plant options or enabling policies to support grid integration that we should consider? ● 11:45 – 12:00 - Wrap up & Next Steps
3 Introduction and Goals; Criteria Overview (Aimee Bailey, SVCE)
Shaping the SVCE VPP Initiative Gridworks Workshop May 2, 2019 4
About SVCE A Community Choice Energy agency Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills governed by 13 local communities Los Gatos | Monte Sereno | Morgan Hill | Milpitas Mountain View | Santa Clara County | Saratoga | Sunnyvale 5
SVCE’s Mission Reduce dependence on fossil fuels by providing carbon free, affordable and reliable electricity and innovative programs for the SVCE community 6
Decarb Strategy & Programs Roadmap Initial work on SVCE • programs started in 2017 Months-long stakeholder • engagement process Decarb Strategy & Programs • Roadmap reviewed and approved by SVCE Board on December 13, 2018 7
Community GHG Reduction Goals 8
Overarching Program Strategy Procure & maintain a • sustainable, affordable and Power Supply carbon-free power supply Electrify the built environment • Energy Efficiency & Grid Integration and mobility Built Promote energy efficiency & Mobility • Environment successful grid integration 9
Programs Roadmap by Sector 10
Energy Efficiency & Grid Integration Goal : Develop a program to monetize and harness the value that distributed energy resource (DER) aggregations (aka “virtual power plants”) in SVCE service territory can provide the grid to advance decarbonization and manage the anticipated load growth resulting from electrification. 11
Approach & Success Criteria • Partner with Gridworks to engage industry, state policy makers and thought leaders to: identify and evaluate key options for SVCE or • a CCA to promote grid integration ensure accurate and up-to-date understanding • of technology, economics, and policy context/ trends in the evaluation of options prioritize SVCE program deployment • for coming 2-3 years ($1M for grid integration currently approved by BOD) ensure relevance beyond SVCE • 12
Evaluation Criteria for Options • Customer, Community and Public Value From SVCE’s • Emissions Impact Decarb • Scalable & Transferable Roadmap • Equity in Service • Core Role for SVCE … And, Viability. 13
Closing Thoughts “People in Silicon Valley are world leaders when it comes to thinking big, “Governments are afraid to fail. but all that innovation has been Let's not innovate needlessly – focused on the private sector. We are sometimes old ideas help us move coming here to come up with bold, forward, and there's no better expansive solutions for the public place to do this than in Silicon sector.” Valley.” “Status quo biases exists. We need to resist “Envision where you want the urge to conform.” to be in the future and start acting that way now. If you do this, you will Quotes from SVCE Design Charrette: The Future is get to the goal in the Electric (Sept. 2018) future.” 14
Thank you! 15
Learn More: SVCleanEnergy.org 844-474-SVCE (7823) Billing & Customer Service: customerservice@svcleanenergy.org General Info: info@svcleanenergy.org @SVCleanEnergy 16
17 Report Out from In-Person Workshop (Matthew Tisdale, Gridworks)
18 In-Person Workshop ● 21 Stakeholders met on May 2 ○ DER providers ○ SVCE community members ○ Utilities ● Feedback ○ Need to define a clear problem statement ○ Focus on customer engagement/enrollment ○ Building towards a future objective
19 SVCE Problem Statement How can SVCE achieve its carbon reduction goals through building and transportation electrification without the unintended consequence of increasing grid costs or emissions from the power sector?
20 VPP Options (Katie Wu, Gridworks)
21 Silicon Valley Clean Energy Virtual Power Plant Options Analysis Discussion Draft
22 Overview ● Options range in complexity ○ Real Time Pricing ○ Peak Day Pricing ○ Demand Response Auction Mechanism ○ Load Shift Resource - Grid Responsive or Market-Integrated ○ Distribution Services Model ● Evaluated using SVCE Criteria ● Discussion draft released for stakeholder review ● Stakeholder feedback informs paper updates and SVCE’s next steps
23 Evaluation Criteria Cri riteria Des escription Sco Score of f 1 En Entails Sco Score of f 4 Incl Includes Customer, Reduces costs and Increases electricity bills Customer able to earn on Community, improves service quality and offers no grid provision of grid services and Public of electricity grid services and grid services mitigate Value or avoid grid upgrades Emissions Reduces emissions, Does not reduce or Eliminates emissions and Reductions including those which may increases emissions facilitates local result from renewables integration transportation electrification and load growth in buildings Scalable and Ability to be replicated Unable to be replicated Easily transferable and Transferrable within and beyond SVCE able to start immediately territory
24 Evaluation Criteria Cont. Cri riteria Des escription Sco Score of f 1 En Entails Sco Score of f 4 Incl Includes Equity in Accessible to customers Inaccessible to majority Accessible to all Service and limits negative of customers and customers and no cross impacts to non- significant cross subsidy subsidy from non- participants from non-participants participants Core Role for Leverages SVCE’s Option could be Option dependent on SVCE position as a load serving implemented by any close customer entity and a joint powers entity and does not rely relationships and authority with close on customer engagement throughout customer and community engagement design and implementation ties Viability Operational, legal, and Significant technical Option is able to launch regulatory readiness/risks barriers and legal and today of projects regulatory action required
25 Real Time Pricing
26 Peak Day Pricing
27 Demand Response Auction Mechanism
28 Load Shift Resource
29 Distribution Services Model
30 Immediately Viable Options ● Minimal technical barriers Peak Day Pricing ● Option to consider how program design should evolve to match energy sources ● Market nascense may be a challenge DRAM ● Option to participate in finalizing program rules ● May be a more common program design LSR - Grid Responsive in a high DER, high electrification future ● Option to bid storage resources in market
31 Options Needing More Development ● Needs more predictable data transfers to share meter quality billing data Real Time Pricing ● Could start with a small scale pilot to better understand customer response ● Lack of DSO and distribution services Distribution Services platform is significant constraint ● Could start with simplified program Model offering priority DSO services
32 Group Discussion
33 Discussion Questions 1. Are there other virtual power plant options or enabling policies to support grid integration that we should consider? 2. Leveraging the Viability column as a starting point, what are the priority short- versus long-term feasibility considerations for each virtual power plant option?
34 Wrapping Up Nex ext Ste teps ❏ One-on-one follow ups ❏ Revisions to the Discussion Draft ❏ Publishing Final Virtual Power Plan paper ❏ Next steps after paper is published
35 Thank you!
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