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Load Shift: Unlocking Grid Flexibility

This report explores the foundational elements of new models of demand response, specifically load shift techniques, and their implications for resource adequacy. It includes product evaluations and proposals for market-integrated solutions. The report provides recommendations for achieving success in integrating load shift strategies into the grid.

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Load Shift: Unlocking Grid Flexibility

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  1. DECISION 17-10-017

  2. PRESENTERS ANJA GILBERT PG&E MATTHEW TISDALE Gridworks JILL POWERS CAISO PETER ALSTONE, PH.D. Humboldt State University

  3. AGENDA • Background • Sources of Load Shift • What does success look like? • Product evaluation • Product proposals • Resource Adequacy implications • Recommendations

  4. BACKGROUND • WG ordered by D.17-10-017 to develop a proposal for foundational elements of new models of demand response. • 71 participating organizations (Utilities, DER providers, consumer advocates, regulatory agencies, others) • 11 in person meetings, 11 subgroup meetings • The Final Report of the Load Shift Working Group was served on January 31, 2019 THE REPORT PROVIDES A COLLECTIVE EXPRESSION OF THE WORKING GROUP RATHER THAN AN ACCOUNT OF EVERY PARTY’S POSITION ON EVERY ISSUE. SOME PARTIES DISAGREE WITH SOME PARTS OF THE REPORT, BUT AGREE THE REPORT PROVIDES A REASONABLE FOUNDATION.

  5. BACKGROUND ISSUE • Renewable energy production can outpace demand throwing supply and demand off balance. • In 2018 California’s oversupply and ramping demands reached levels almost four years ahead of what was originally forecasted.

  6. BACKGROUND SOLUTION Load Shift is coordinated, targeted modification of customer energy consumption timing to better align with low cost, low pollution power generation resources.

  7. SOURCES OF LOAD SHIFT

  8. LBNL DEMAND RESPONSE STUDY By 2025 California may benefit from 10-20 GWh (2-5% of daily load) of Load Shift. Shifting load at these levels is estimated to provide $200-600 million ($2015) resources to support the operation of California’s bulk electric system. 2025 CALIFORNIA DEMAND RESPONSE POTENTIAL STUDY

  9. GRID NEEDS Beyond avoided renewable generation curtailment, additional benefits can accrue through well-timed, well-placed Load Shift resources, including: • Energy Cost reductions • Emission reductions • System, local and flexible Resource Adequacy (RA) • Transmission capacity • Distribution system services • Customer bill savings

  10. PG&E AND OLIVINE’S EXCESS SUPPLY PILOT (XSP) Since 2016 PG&E’s Excess Supply pilot – administered by Olivine - has been testing the capabilities of demand side resources to increase load during the times of over-supply on transmission and/or distribution lines as well as during times of low or negative prices. • Lessons learned from XSP: • Coordination with utility distribution planning and operations is essential for the safety and reliability of the distribution system. • If the goal of load shift is to help with renewable integration, there are benefits to a product that is market integrated. • Some customers were able to avoid TOU demand charges through their bidding behavior.

  11. WHAT DOES SUCCESS LOOK LIKE? • Technologically neutral, open to all sources and end uses; • Reflect grid needs, especially integration of renewables; • Not “one-size fits all”; • Include both “take” and “shed” and the two may be asymmetric

  12. HOW PRODUCTS ARE EVALUATED • Dispatch method (CAISO integrated vs Out of market) • Dispatch geo-granularity (DLAP vs Circuit) • Dispatch temporal granularity (Hourly vs Seconds) • Role of IOU (Large vs Small) • Role of aggregators (Large vs Small)

  13. PRODUCT PROPOSALS • Load Shift Resource 2.0 • Market Integrated Distribution Service (MINTDS) • Critical Consumption Period • Market Informed Demand Automation Services (MIDAS) • Pay For Load Shape • Distribution Load Shape

  14. LOAD SHIFT RESOURCE 2.0 SUMMARY DESCRIPTION • Fully market integrated using CAISO’s new PDR-LSR model, but not limited to energy storage • Allows for take during negative price events LOCATIONAL GRANULARITY |Dispatch primarily at sub-lap TEMPORAL GRANULARITY|Dispatch at 60,15, or 5 minute intervals ACCESSIBILITY TO CUSTOMERS |Analogous to current PDR-LSR customer experiences

  15. MARKET INTEGRATED DISTRIBUTION SERVICE (MINTDS) SUMMARY DESCRIPTION • Adapts LSR 2.0 by serving distribution grid needs with wholesale market dispatch and tariffs offered by utility • Could be add on for customers currently on a utility Net Energy Metering tariff LOCATIONAL GRANULARITY |Circuit-feeder level TEMPORAL GRANULARITY | Seconds ACCESSIBILITY TO CUSTOMERS |Customers willing to adopt technologies that can receive and respond to DSO dispatch signals (e.g., EV chargers, solar plus storage, automated thermostats)

  16. CRITICAL CONSUMPTION PERIOD SUMMARY DESCRIPTION • Retail load increase in line with day ahead negative price events; customer pays real-time price • Dispatch by LSE LOCATIONAL GRANULARITY | Dispatch at the PNode TEMPORAL GRANULARITY | Dispatch at 60, 15, or 5 minute intervals depending on settlement capabilities of LSE ACCESSIBILITY TO CUSTOMERS| Intended for larger C&I customers, but could be expanded; customer determines quantity and duration of load shift with LSE

  17. MARKET INFORMED DEMAND AUTOMATION SERVICES (MIDAS) SUMMARY DESCRIPTION • Automated demand response product • Shift smart loads to lower price or lower emission periods based on market or grid state informed signals LOCATIONAL GRANULARITY | Default dispatch at DLAP, but could be more local TEMPORAL GRANULARITY | As low as 15 minute intervals ACCESSIBILITY TO CUSTOMERS | Customer preferences and other end-use operating constraints enable automation of WiFi devices to shift loads.

  18. PAY FOR LOAD SHAPE SUMMARY DESCRIPTION • LSEs establish target load shapes to meet their unique energy needs • Customers that meet or approach the target load shape would be compensated based on energy market savings, capacity cost savings, and other values provided based on a performance assessment LOCATIONAL GRANULARITY | Ranges from circuit to the D-LAP TEMPORAL GRANULARITY| Hourly intervals ACCESSIBILITY TO CUSTOMERS | Customers participate directly or through an aggregator, comparable to an opt-in Time of Use rate

  19. DISTRIBUTION LOAD SHAPE SUMMARY DESCRIPTION • Permanently provide Load Shift according to a defined schedule, offered by the utility through a tariff LOCATIONAL GRANULARITY | Circuit-feeder TEMPORAL GRANULARITY |Hourly ACCESSIBILITY TO CUSTOMERS | Customers participate directly or through an aggregator, comparable to an opt-in Time of Use rate

  20. A DIVERSITY OF POTENTIAL LOAD SHIFT MODELS

  21. RESOURCE ADEQUACY Resource Adequacy (RA) currently recognizes the capacity value of load shed but does recognize potential value of take. Load Shift can: • Increase demand during the downward ramp, thereby reducing the need for generators to be taken offline or curtailed during that period. • Raise minimum load thereby reducing the need for downward and upward flexible RA IF THE COMMISSION FINDS LOAD SHIFT PROVIDES A RELIABILITY SERVICE, COMMENSURATE RA CAPACITY PAYMENTS WOULD BE APPROPRIATE.

  22. RECOMMENDATIONS • Load Shift can support renewable integration and distribution system planning and operations. • Coordination with California Energy Commission and CAISO, as well as related Commission proceedings. • Invite pilot proposals in early 2019 along the lines of the products envisioned here. • Incentivize Load Shift and ensure incentives are consistent with the value the resource creates

  23. QUESTIONS 1111 Broadway, 3rd Floor Oakland, CA 94607 info@gridworks.org

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