Innovative Energy Solutions and Evolving Markets. United States and Brazil Connection Angelina Galiteva, CAISO Board Member, Founder Renewables 100 Policy Institute Recife, Brazil April 4-6, 2017
Key functions of an ISO
• Uses advanced technology to balance supply and demand every 4 seconds • Operate markets for wholesale electricity and reserves • Manage new power plant interconnections • Plan grid expansions
CAISO Public
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The California ISO • One of nine grid operators in North America • 2/3 of the U.S. is supported by an ISO
• One of 38 balancing authorities in the western interconnection
CAISO Public
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CAISO by the numbers Serves 80% of state 30 million consumers
26,000 miles of wires 72,000 MW plants 27,000 market transactions per day $9 billion market
CAISO Public
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A balancing authority (BA) is responsible for operating a transmission control area. •
Each matches generation with load and maintains electric frequency of the grid
•
38 balancing authorities in the western interconnection
•
Today, each BA balances load and generation separately from other BAs
CAISO Public
2000 Proposed FERC Wholesale Independent Electric Market Regions
CAISO Public
CAISO’s Role
Maintain reliability
Plan for system expansion
Implement State policy
Interconnect resources
Operate wholesale market
Coordinate with Many Masters Governor’s Office CEC CPUC ARB FERC WECC Compliant
CAISO Public
California energy and environmental policies drive renewable integration and transmission needs • 2020 Policies – Greenhouse gas reductions to 1990 levels – 33% of load served by renewable generation – 12,000 MW of distributed generation – Ban on use of once-through cooling in coastal power plants
• 2030 Policy Goals – 50% of load served by renewable generation – Double energy efficiency existing buildings – Greenhouse gas reductions to 40% below 1990 levels
2045 Proposed Goal for 100% Renewable Energy CAISO Public
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ISO Resource Mix - Good progress toward State's goals
CAISO Public
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The “State of the State” of renewables • 20,000 MW of utility scale renewables – Solar peak 8,545 MW (Sept ‘16) – doubled in 2 years
• Another 5,000 MW to meet 33% • 12,000-16,000 MW to meet 50%
• 4,500 MW of consumer rooftop solar – 11,000 new/month; = 50-70 MW / mo.
CAISO Public
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Solar production complemented the hydro production during the drought years as compared to 2006, which was a high hydro year Hydro vs. Solar Production 6,000
5,000
3,000
2,000
1,000
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
GWh
4,000
2006
2014
2015 Hydro
2016
2017
Solar
CAISO Public
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California continues to add renewable resources (predominately Solar PV)
CAISO Public
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A metamorphosis: ISO load curve over past 4 years
The dip is attributable to rooftop solar
CAISO Public
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Oversupply and ramping: A new challenge as more renewables are integrated into the grid Typical Spring Day
Actual 3-hour ramp 12,960 MW on December 18, 2016
Curtailments occurring now Net Load 10,992 MW on March 12, 2017
CAISO Public
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Renewable curtailment in 2024 at 40% RPS is significant Solutions Targeted energy efficiency Increase storage and demand response Enable economic dispatch of renewables Decarbonize transportation fuels Retrofit existing power plants Align time-of-use rates with system conditions Diversify resource portfolio Deepen regional coordination
CAISO Public
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Examples of curtailment in 2017
CAISO Public
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Growth of DER is part of a major transformation of the electric industry. The electric industry – at state, national and global levels – is undergoing comprehensive transformation characterized by •
Shift to renewable energy resources and away from conventional fossil-fuel generation at all scales
•
“Grid edge” adoption of diverse distributed energy resources (DER) and a trend toward decentralized power systems (e.g., microgrids)
•
Decline of the traditional centralized, one-way power flow paradigm and associated revenue models and rate structures
•
Electrification of transportation and other large energy uses
•
New operational challenges for distribution utilities to manage high DER penetration
First and foremost, the next system must be reliable and meet 21st century objectives for sustainability, resilience & efficiency
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Potential Transmission Power Flow With High Penetration of DER • •
Potential for power to flow bi-directional at the Transmission and Distribution Interface The current system is not designed or modeled to accommodate this potential bi-directional power flow which may move the system t into unstudied conditions
LEGEND Power Flow Generator
Generator
Transmission Substation To: Distribution System
Transmission Substation
Potentially hundreds of thousands of injection points from rooftop solar, battery, and other distributed generation resources
Central Fresno Transmission System
Transmission • Transmit bulk power from generation facilities to distribution substations • Largely network design
Central Fresno Transmission and Distribution Systems Distribution • Distributes electric power to end users (customers) • Radial design • Requires various levels of granular review
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Industry transformation is driven from the bottom up. DER growth is driven by customer demand & adoption – Customers want flexibility, control, energy services customized to their needs, resilience to disturbances, cost effectiveness – Local jurisdictions adopt climate action plans, pursue synergies among municipal services, seek to boost local economy, extend renewable energy and EV to less affluent communities – Powerful new technologies make it all feasible & economic
The new paradigm features – Substantial local supply to meet local demand – Multi-directional, reversible flows on distribution system – New challenges for distribution operations, planning & interconnection – Multi-use DER provide services to customers, D and T systems – Potential for low-cost, resilient islanding; possible “grid defection” – Potential for transactive peer-to-peer markets at the grid edge – Bottom-up autonomous adoption => less top-down policy control Page 22
Distribution systems will evolve with growth in customer DER adoption and opportunities to realize DER value. DER Level and Value
Stage 3: Distributed Markets & System Convergences
Customer Adoption & Engagement
Multi-party & peerto-peer transactions
Stage 2: DER Integration
Stage 1:
Customer Load Management & Distribution Reliability Services
Operation of distribution-level markets => new DSO structure?
Dist. Platform Development Locational Net Benefits Analysis DER Integration & Optimization
Grid Modernization Policy/rate-driven PV & EV adoption; grid info & decision tools
Smart Grid Investments Aging Infrastructure Refresh Hosting Capacity Analysis Interconnection Process Improvements
Distribution System
Time
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FERC NOPR (RM16-23-000) seeks to remove barriers to wholesale market participation by storage and DER aggregations. Proposes to require ISOs and RTOs to ď ś Establish a storage participation model that, recognizing physical and operational characteristics of electric storage resources, accommodates their participation in organized wholesale markets ď ś Define DER aggregators as a type of market participant than can participate in the organized wholesale electric markets under the participation model that best accommodates the physical and operational characteristics of its DER aggregation
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The evolution of the Western grid ISO Energy Imbalance Market (EIM)
•
Total savings of $142.62 million since start in Nov 2014
•
359,320 MWh curtailment avoided, displacing an estimated 153,706 metric tons of CO2
•
Integration of renewables across a larger geographical area
•
Enhances reliability with improved situational awareness
•
Reduces costs through automatic economic dispatch
•
Balancing authorities maintain control and reliability responsibilities
Southwest Power Pool
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Continued to observe reduced renewable curtailment Reduced Renewable Curtailment
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
Mwh curtailment avoided
8,860
3,629
828
17,765 112,948 158,806 33,094
23,390 359,320
Estimated metric tons of CO2 displaced
3,792
1,553
354
7,521
10,011 153,706
4th Qtr 2015
1st Qtr 2016
48,342
2nd Qtr 2016
3rd Qtr 2016
67,969 14,164
4th Qtr 2016
Total To-Date
Gross economic benefits since start of EIM = $142.62M BAA
4th Qtr 2014
1st Qtr 2015
2nd Qtr 2015
3rd Qtr 2015
4th Qtr 2015
1st Qtr 2016
2nd Qtr 2016
3rd Qtr 2016
APS
4th Qtr 2016
Total
5.98
5.98
CAISO
1.24
1.44
2.46
3.48
5.28
6.35
7.89
5.44
8.67
42.25
NVE
-
-
-
-
0.84
1.70
5.20
5.60
3.07
16.41
PAC
4.73
3.82
7.72
8.52
6.17
10.85
10.51
15.12
8.99
76.43
1.56
1.56
28.27
142.62
PSE Total
5.97
5.26
10.18
12.00
12.29
18.90
23.60
26.16
BAA
October
November
December
Q4 – 2016 Total
APS
2.81
1.68
1.49
5.98
CAISO
1.62
3.10
3.95
8.67
NVE
1.00
1.47
0.60
3.07
PAC
3.24
1.89
3.86
8.99
PSE
0.25
0.66
0.65
1.56
Total
8.92
8.8
10.55
28.27
CAISO Public
Majority of western states have an RPS. A regional ISO can transform the electricity sector to a low-carbon energy delivery system. WA: 15% x 2020*
Regional market integration can: ND: 10% x 2015
MT: 15% x 2015 OR: 50% x 2035*
SD: 10% x 2015
(large utilities)
NV: 25% x UT: 20% x 2025* CO: 30% by 2025*† 2020 (IOUs) *† KS: 20% x 2020 CA: 50% x 2030 AZ: 15% x NM: 20%x 2020 (IOUs) 2025*
OK: 15% x 2015
TX: 5,880 MW x 2015*
www.dsireusa.org / October 2015 Renewable portfolio goal
Enhance coordination and reliability Facilitate renewable resource integration Reduce emissions Enhance regional system planning
Successful market integration requires: Change in California state statute to amend governance Approval by PacifiCorp state regulatory bodies and the FERC Approval by FERC on changes to PacifiCorp and ISO tariffs
HI: 100% x 2045
Renewable portfolio standard
Reduce customer costs
*†
Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources
CAISO Public
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In 2016, representatives from 77 countries came to the ISO to discuss renewable integration and grid modernization Norway Germany Finland Denmark Poland Netherlands Czech Republic Russia Slovakia Scotland Canada Hungary England Ukraine Belgium Bulgaria Armenia France USA Turkey Cyprus China Italy Spain Lebanon Pakistan Israel Croatia Greece Jordan Morocco Jamaica India Serbia Saudi Arabia Mexico Haiti Senegal Iran Mali Egypt Bangladesh Colombia Eritrea Djibouti Cabo Verde Ethiopia Thailand Sierra Leone Costa Rica Nigeria Kenya Congo CĂ´te d'Ivoire Uganda Singapore Togo Brazil Ghana Peru Rwanda Angola Tanzania Zambia Bolivia Madagascar Botswana Malawi Chile South Africa Mozambique
CAISO Public
Japan South Korea Taiwan
Vietnam Philippines Malaysia
Australia
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Knowledge Transfer International Learning & Collaboration Launch of Innovative Energy Solutions at Scale project (2017) Creating the Matrix for Future International Collaboration!
Angelina Galiteva a.galiteva@renewables100.org 310/735-3981