W ELCOME California Energy Storage Roadm ap 2 nd W orkshop California Public Utilities Com m ission October 13, 2014 San Francisco SAFER, SMARTER, GREENER
Safety and Em ergency I nform ation In the event of an emergency, please calmly proceed out the exits. We have four exits: Two in the rear and one on either side of the speakers. In the event that we do need to evacuate the building: ( For the Rear Exits) - Head out through the courtyard, and down the front steps. Continue west on McAllister Street. Turn north onto Franklin Street. Turn west onto Turk Street and proceed to Gough Street. ( For the Side Exits) - Go out of the exits and you will be on Golden Gate Avenue. Proceed west to Franklin Street. Turn north onto Franklin Street. Turn west onto Turk Street and proceed to Gough Street. Our assembly point is Jefferson Square Park on Turk and Gough Streets. 2
Other I nform ation WiFi Access: W ebEx https: / / van.webex.com/ van/ j.php?M login: guest TID= me542331f2d17612890abe1de password: password 7ff7dc86 Meeting Number: 744 518 573 Meeting Password: storage Restrooms: out the Auditorium doors and Teleconference inform ation down the far end of the Call-in: 866-778-0461 passcode: 3664376 hallway. W ebsites: CPUC: http: / / www.cpuc.ca.gov/ PUC/ energy/ Storage_Roadmap.htm CAISO: http: / / www.caiso.com/ informed/ Pages/ CleanGrid/ EnergyStorageRoadmap.aspx 3
Agenda 10: 00–10: 15 Arthur O’Donnell Introduction 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 Rick Fioravanti Improvements Tom Flynn Jamie Ormond 3: 00-3: 30 Identify Interdependencies and Determine Heather Sanders Priorities to Minimize Delays Arthur O’Donnell 3: 30-4: 00 Applicability to Storage Configuration and Use Robert Anderson Cases 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 4
Thank you for providing com m ents from Septem ber 4 w orkshop. 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 5
Overview of initial public outreach by DNV GL and Olivine 6
Translating barriers to actions Heather Sanders, California I SO 7
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 • Financial barriers Costs • Ancillary Service barriers • Market and Regulatory Time barriers • Interconnection barriers • Standards barriers • Modeling Barriers • Metering barriers • Telemetry barriers 8
From Barriers to Actions Services Ancillary Financial ion Interconnect Regulation Market and Metering Modelling Standards Telemetry Actions - Revenue Opportunity • Defining and communicating grid needs will x x x clarify gaps help identify new products • Clarify existing wholesale market product x x x opportunities for storage • Refine existing and add new wholesale market x x x products to meet grid needs • Identify gaps in rate treatment and identify x x x existing rules that could address issues • Define multiple-use applications of storage to x x facilitate development of models and rules • Determine hybrid storage configurations to x x x x enable prioritization and development of requirements • Assess existing methodologies for evaluating x storage and identify or develop a preferred common methodology 9
From Barriers to Actions Services Ancillary Financial tion Interconnec Regulation Market and Metering Modelling Standards Telemetry Actions - Cost Reduction • Review metering requirements for opportunities x x to reduce costs • Review telemetry requirements for x opportunities to reduce costs • Assess codes and standards to identify gaps and x x x x best practices • Review interconnection process for small x distribution-connected resources Actions - Process and Tim ing • Clarify interconnection processes to make it x predictable and transparent 10
Actions to Advance Revenue Opportunities Olof Bystrom , DNV GL Lorenzo Kristov, California I SO Aloke Gupta, CPUC 11
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 Products and services 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 Revenue Determine hybrid storage configurations • Financial barriers Assess existing methodologies for evaluating • Ancillary Service barriers storage and identify or develop a preferred common methodology 12
Defining and com m unicating grid needs w ill clarify gaps in existing m arkets and help identify new products. “ 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 Actions Venue( s) Describe and clarify operational needs at the transmission CAISO 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. Describe and clarify operational needs at the distribution CPUC level, and the operating characteristics required of storage and other resources connected at the distribution level in order to meet these needs. Facilitate clarification by IOUs of operational constraints that CPUC would limit the ability to accommodate storage on the distribution system and behind the customer meter. 13
Clarification and education about existing w holesale m arket product opportunities for storage is needed. It appears that stakeholders do not fully understand the range of wholesale o 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. Actions Venue( s) Clarify existing energy and ancillary service market products CAISO and requirements for energy storage to participate in the ISO market. Clarify roles of storage in an evolving Resource Adequacy CPUC framework. 14
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 CAISO existing wholesale market products that would better meet grid needs and improve revenue opportunities for resources such as storage that can provide those needs. • Further examine and clarify the role of storage in deferring CAISO, or eliminating the need for transmission or distribution CPUC upgrades. • Consider revising the ISO’s procedure for testing and CAISO certifying resources for ancillary services. (COST reduction action) • Streamline rules for aggregation of distributed storage CAISO units to participate in ISO markets, including participation via use of the NGR model. • Evaluate the need and potential for the development of CPUC distribution level grid services and products that provide new revenue opportunities for distribution connected storage resources. 15
I dentify gaps in rate treatm ent and identify existing or new rules that could address issues. Barriers: Lack of clarity regarding wholesale versus retail rate treatment for such things o as auxiliary load, station power, and roundtrip efficiency. Lack of clarity whether energy storage charging should be considered o measured demand for purposes of infrastructure charges. Actions Venue( s) Clarify rate treatment for the charging mode of grid- CAISO, connected or distribution-connected storage participating in CPUC the wholesale market under current ISO market settlement rules. Clarify existing tariffs for Behind the Meter storage devices CPUC that are paired with NEM generators. Consider new proceeding for stand-alone Behind the Meter CPUC storage devices to address rates for charging and exporting power. 16
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