MICROGRID DEVELOPMENT IN CALIFORNIA

MICROGRID DEVELOPMENT IN CALIFORNIA THOMAS C. TSENG, PE. CEM SOUTHERN CALIFORNIA EDISON KEY BENEFITS FROM MICROGRID • Enhance Reliability and Resiliency • Support Clean Energy Pathway initiatives (BE&TE) • Integrate of exiting and new DER resources • Reduce T&D infrastructure O&M Cost • Serve as a grid resource and generate additional revenue from ancillary services. 2 POLICY DRIVERS & GOALS IN CALIFORNIA • 2020 • GHG Emission to 1990 Level • 1.3GW of Energy Storage • Solar Panel Mandate in Residential Title 24 • 2025 • 1.5M Zero Emission Vehicles • 2030 • GHG emissions reduced to 40% of 1990 Level • Double energy efficiency savings by 50% • 5M ZEV • 2045 • 100% retail electricity supplied by renewable and zero carbon resources 3 • Distributed Resource Plan (R.14- 08-013) • Increase penetration of DER • Develop pilots to demonstration utility as DSO to manage DER resources on MGs • Other related proceedings • R.14-08-013: DRPs Proceeding • R.15-03-011: Energy Storage Proceeding • R.11-09-011: Interconnection Proceeding • Reliability and Resiliency • Wildfire Prevention • Electric infrastructure upgrade • Wild fire prevention and monitoring • Demand side management • GHG Reduction • Clean energy resources • DER(including Transportation Electrification and Energy Storage) • Building Electrification • Affordability • Legislation and regulatory efforts • Renovate cost recovery mechanism • Innovated utility rate structure MARKET BARRIER - Cost and complexity to enable interoperability of legacy and new microgrid assets - Lack of clarity on the value of enhanced reliability - Interconnection requirement vary according to the location of the microgrid and by the type and size of assets - Public safety concerns have the potential to slow down or stall microgrid penetration 4 - Lack of clarity on the islanding requirements for microgrids and DERS - Present regulations do not allow behind the meter resources direct wholesale access, thus depriving microgrids of a value steam the technology is capable of accessing Source and Credit: CEC Publication 500-2015-071 COST STUDY Segment IQR Mean Campus/Instit utional $4.93-$2.47M $3.3M C&I $5.35-$3.40M $4.08M Community $3.33-$1.43M $2.12M Utility $3.22-$2.32M $2.55M Lev el IQR Mean Lv 1 $2.86-$0.93M $1.98M Lv 2 $4.87-$2.18M $3.46M Lv 3 $3.82-$1.94M $3.05M Lv 4 $5.14-$3.73M $4.44M Lv 5 $3.70M-2.92M $3.31M $/MW by Technology Level* $/MW by Segment Type* * Data Source & Credit: NREL/Navigant, Phase I Microgrid Cost Study, 2018 FUTURE GRID & COMMUNITY MICROGRID Community Microgrid • Interconnection and Grid Control • System integrity and maintenance cost • Cost fairness and cost sharing by other rate payer on the grid • Cost recovery mechanism for and grid asset management for grid investment Enhanced Monitoring Prediction Control - Real Time Situational Awareness - PQ Awareness - Distributed Load Flow Analysis - Automation of Circuit Recognition - Accurate Impedance Modeling - Asset Pairing & Modeling - Near-Term DER Forecasting - Long Term DER forecasting - DRP to leverage DERs for Grid Benefit - Fast DER Interconnection Process - Voltage Optimization -Power Flow Optimization - Highly reconfigurable Protection - Bi-directional Protection - Remote communication with relays -Advanced Automation New Distribution System Capabilities DISTRIBUTED ENERGY STORAGE INTEGRATION (DESI) PILOT 7 • 2.5 MVA / 3.9 MWh • 1st pilot BESS connected to distribution • Designed to support grid operations. ENHANCING RELIABILITY BY PREVENTING OVERLOADING 8 IRVINE SMART GRID DEMONSTRATION PROJECT 9 SCE Transformer Bypass Switch Battery Power Conversion Module Residential Units Grid Shark Meter Load Shark Meter CES Unit Battery Power Conversion Module RES Unit • 14 homes including ZNE • Demand response devices • 4 kW/10 kWh • Solar PV arrays (3.2 - 3.8 kW) • 7 homes • Demand response devices • 25 kW/50 kWh • Solar PV arrays (3.2 - 3.8 kW) CASE STUDIES 10 CASE STUDY 1: MISSION PRODUCE FACILITY 11 Location Oxnard, California Implementer UET, Powerit Solution Capacity 1.5MW Technical Characteristics 1MW Solar PV Cloud-based Demand Management System 0.5MW/2MWh Flow Battery Cost $1M Flow Battery Primary Drivers Bill Savings/Demand Charge Abatement Renewable Energy Integration Reduction of carbon footprint Secondary Drivers Resiliency Provision of energy and capacity services Provision of ancillary services CASE STUDY 2: INLAND EMPIRE WASTE WATER TREATMENT PLANT 12 Location San Bernardino, California Implementer Advance MG Solution, Sun Power, Tesla, EnerNoc Capacity 13.5MW Technical Characteristics 3.5MW Solar PV + 1MW Turbine 2.8MW Fuel Cell+3.65MW Li-ion battery+2.5MW Diesel AMS Armada load control and DR system Cost Cost recovered through capital to operation conversion. Primary Drivers Bill Savings/Demand Charge Abatement Renewable Energy Integration Provision of ancillary services Secondary Drivers Resiliency Provision of energy and capacity services Reduce Carbon Footprint Linkage to Virtual Power Plant CASE STUDY 3: THACHER SCHOOL 13 Location Ojai, California Implementer JLM Energy Capacity 1MW Technical Characteristics 750kW Solar PV 250kW Li-ion Microgrid Controls Cost $4.33M Primary Drivers Bill Savings/Demand Charge Abatement Reduce Carbon Footprint Renewable Energy Integration Linkage to Virtual Power Plant Secondary Drivers Reliability Future transactive energy revenue Provision of energy and capacity services CASE STUDY 4: THOUSAND OAKS REAL ESTATE PORTFOLIO PROJECT 14 Location Thousand Oaks, California Implementer CleanSpark, Jacobs Capacity 2.4MW Technical Characteristics 2MW (New) + 1.7MW (Existing) Solar PV 440kW/900kWh Li-ion + flow batteries Existing BMS Cost $7.9M Primary Drivers Bill Savings/Demand Charge Abatement Provision of energy and capacity services Linkage to Virtual Power Plant Provision of ancillary services Secondary Drivers Future transactive energy revenue Reduce Carbon Footprint Renewable Energy Integration CASE STUDY 5: POOLE HYDRO DRP 3 DEMONSTRATION PROJECT 15 Location Eastern Sierra, California Implementer SCE + USMC Capacity 11MW Technical Characteristics 11MW (New) + Existing Solar PV Sizable Energy Storage Systems BTM Smart Inverters Cost TBD Primary Drivers Reliability and Resiliency Provision of energy and capacity services Renewable Energy Integration Provision of ancillary services Secondary Drivers Future transactive energy revenue Reduce Carbon Footprint Linkage to virtual power plant THANK YOU Thomas.tseng@sce.com