DISTRIBUTED ENERGY RESOURCES ACTION PLAN California Public Utilities
DISTRIBUTED ENERGY RESOURCES ACTION PLAN California Public Utilities Commission DER Scoping Workshop for Third EPIC Investment Plan California Energy Commission March 13, 2017
Outline What is the DER Action Plan? Purpose Implementation Structure Vision Elements that Could Benefit from EPIC Research
What is the DER Action Plan? The DER Action Plan is a document that: Ø Ø Ø Sets a long-term vision for distributed energy resources (DERs) and supporting polices Identifies CPUC actions needed to meet that vision Establishes a coordinating framework across implicated CPUC proceedings Endorsed by CPUC Commissioners at November 10, 2016 Voting Meeting
The Purpose of the Plan is to: ● ● Coordinate activities across 15 CPUC proceedings and 2 ISO stakeholder initiatives Guide development and implementation of DER policy ● ● ● 4 Does not determine outcomes of individual proceedings Provide a platform for common understanding of the direction the CPUC intends for DER policy to take Track CPUC’s progress toward achieving the Plan’s vision
Plan Implementation ● 5 Cross-divisional “Coordinating Committee” will coordinate implementation of the Plan • Identify important linkages between proceedings and facilitate proactive coordination • Elevate timely action elements that do not currently have a procedural home or have yet to be initiated • Facilitate communication back to decision-makers • Ensure timely hand-offs between proceedings are made • Recommend revisions to Plan as needed • Track progress and periodically report to the Commission on current status
Plan Structure 17 vision elements and 35 action elements grouped into 3 tracks: • Track 1: Rates and Tariffs • Track 2: Distribution Grid Infrastructure, Planning, Interconnection, and Procurement • Track 3: Wholesale DER Market Integration and Interconnection
Track 1: Rates and Tariffs Vision Ø Customer choice Ø Time varying rates Ø Innovative rates and tariffs Ø Aligned with cost causation Ø Affordable to non-DER customers
Track 2: Distribution Planning, Infrastructure, Interconnection, and Procurement Vision Ø Transparent planning and sourcing Ø Utility “ 2. 0” / IOU business model Ø Technology-neutral sourcing Ø Recognize full GHG and grid services value Ø Streamlined interconnection Ø DER-enabling grid investments for ratepayer benefit Ø Data communications and cybersecurity 8
Track 3: Wholesale DER Market Integration and Interconnection Vision Ø Robust DER participation in wholesale markets Ø Multiple revenue streams Ø Market and interconnection rules supportive of BTM DERs Ø Predictable EV behavior in grid operations Ø Non-discriminatory market rules for EVs 9
Plan Elements that Could Benefit from EPIC Research • Electric vehicles • Jobs impacts • DER Management Systems • Value of grid services • Smart inverters • • Where and how DERs may be used to avoid or defer generation or grid investments New technologies to reduce cost of IOU/CAISO telemetry and metering requirements • Many others! • Data communications and cybersecurity
Plan Elements that Could Benefit from EPIC Research: Electric Vehicles EV-Related Vision Elements (Track 3): D. Electric vehicle charging systems, and mobility and driving behaviors, can be predicted and overseen in the grid operations E. Non-discriminatory market rules and regulations for mobile electric transportation resources (addressing registration, interconnection, and physical connectivity) are established to support customer mobility 11
Plan Elements that Could Benefit from EPIC Research: Smart Inverters Related Action Element 2. 9 (Track 2): 2. 9 By 2020, fully operationalize advanced (beyond Phase 1/0 smart inverter functionalities to enhance the integration of DERs into the grid. 12
Plan Elements that Could Benefit from EPIC Research: Data Communications and Cybersecurity Related Vision Element (Track 2): D. Markets for distribution grid services are enabled through data communications and cybersecurity requirements. 13
Plan Elements that Could Benefit from EPIC Research: DER Management Systems (DERMS) Related Action Element 2. 6 (Track 2): 2. 6. By 2017, begin to consider the role of Distributed Energy Resource Management Systems to enhance grid management and maximize the value of DER deployment. 14
Plan Elements that Could Benefit from EPIC Research: Distribution Infrastructure Deferral Framework Related Continuing Elements (Track 2): 1. c. [Develop a] distribution infrastructure deferral framework, including reforms to consider DRP results in GRC Phase 1 proceedings. 4. [Consider] energy efficiency (R. 13 -11 -005), including locational targeting to avoid or defer grid upgrades, and normalized metered energy consumption evaluation methods to increase visibility. 15
Plan Elements that Could Benefit from EPIC Research: Demonstrate Value of Add’l Grid Services (e. g. conservation voltage reduction, equipment life extension) Related Vision Element (Track 2): D. Cost effectiveness and valuation frameworks accurately and impartially reflect the full grid services, renewables integration, and GHG value of DERs. 16
Questions? DER Action Plan Contacts: Simon Baker (Simon. Baker@cpuc. ca. gov) Mary Claire Evans (Mary. Claire. Evans@cpuc. ca. gov)
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