Energy Storage R 10 12 007 Energy Storage

  • Slides: 15
Download presentation
Energy Storage R. 10 -12 -007 Energy Storage Procurement & Policy Options Arthur O’Donnell/Aloke

Energy Storage R. 10 -12 -007 Energy Storage Procurement & Policy Options Arthur O’Donnell/Aloke Gupta/Elizaveta Malashenko Energy Division Grid Planning & Reliability January 14, 2013 1

Remote Access Web. Ex Information Meeting Number: 744 418 027 Meeting Password: storage Go

Remote Access Web. Ex Information Meeting Number: 744 418 027 Meeting Password: storage Go to: https: //van. webex. com/van/j. php? ED=19 6274762&UID=491292852&PW=NZWE 0 N WE 5 YTdh&RT=Mi. M 0 Call in #: 1 -866 -758 -1675 Passcode: 7646128 Note: *6 to mute/unmute Upon entry to the call, please place yourself on mute, and remain on mute unless you are asking a question

Agenda for the Workshop Action Item Time Allotted Clock Introductions and Update 10 minutes

Agenda for the Workshop Action Item Time Allotted Clock Introductions and Update 10 minutes 10: 00 am – 10: 10 am President Michael Peevey 5 minutes 10: 45 am Panel 1: Procurement 75 minutes 10: 10 am – 11: 30 am CAISO Markets & Testing 30 minutes 11: 30 am – 12: 00 pm Lunch 60 minutes 12: 00 pm – 1: 00 pm Panel 2: Operational Experience & Pilots 75 minutes 1: 00 pm – 2: 15 pm EPIC Plans & Storage 10 minutes 2: 15 pm – 2: 25 pm Cost-Effectiveness Update 10 minutes 2: 25 pm – 2: 35 pm Open Discussion 20 minutes 2: 35 pm – 2: 55 pm 5 minutes 2: 55 pm – 3: 00 pm Wrap Up & Next Steps 3

Workshop Purpose and Goals To establish a record for decision making in R. 10

Workshop Purpose and Goals To establish a record for decision making in R. 10 -12 -007 to satisfy the terms of AB 2514 (PUC Section 2836) with regard to establishing potential energy storage procurement targets for load-serving entities (LSEs). 4

Workshop Purpose and Goals Responsive to AB 2514, which requires the CPUC: • To

Workshop Purpose and Goals Responsive to AB 2514, which requires the CPUC: • To open a proceeding to determine appropriate targets, if any, for each load-serving entity to procure viable and cost-effective energy storage systems. • By October 1, 2013, to adopt energy storage procurement targets, if determined to be appropriate, to be achieved by each LSE by December 31, 2015, and a 2 nd target to be achieved by December 31, 2020. • Consider a variety of possible policies to encourage the costeffective deployment of energy storage systems, including refinement of existing procurement methods to properly value energy storage systems. 5

Evaluation of Procurement Targets AB 2514 specifically requires that the CPUC: (a) Consider existing

Evaluation of Procurement Targets AB 2514 specifically requires that the CPUC: (a) Consider existing operational data and results of testing and trial pilot projects from existing energy storage facilities. (b) Consider available information from the California Independent System Operator testing and evaluation procedures. (c) Consider the integration of energy storage technologies with demand-side management or other means of ensuring the most efficient use of generation resources and cost-effective energy efficient grid integration and management. (d) Ensure that the energy storage system procurement targets and policies that are established are technologically viable and cost effective. 6

Energy Storage OIR R 10 -12 -007 We are here January 2013 Aug. 2,

Energy Storage OIR R 10 -12 -007 We are here January 2013 Aug. 2, 2012 ALJ Decision D 12 -08 -016 July 31 st, 2011 Barriers Workshop March 30, 2012 Final Staff Proposal June 28 th, 2011 Workshop December 16 th, 2010 OIR 10 -12 -007 issued September 29 th, 2010 AB 2514 is enacted Sept. 4, 2012 PHC Phase 1 Q 1/Q 2 2012 Phase 2 Feb 20, 2012 Reply Comments Jan 31, 2012 Parties Comments May 31, 2011 Scoping Memo March 9 th, 2011 Initial Workshop April 21 st, 2011 PHC July 9 th, 2010 PPD White Paper on Energy Storage January 4, 2013 Staff Interim Report issued Aug 20 – Oct. 16 Workshops Summer 2013 Submission of record of case December 12, 2011 Staff Proposal Released October 1 st, 2013 Decision Target December 31 st, 2020 Proposed Second Procurement target (AB 2514) December 31 st, 2015 Proposed First Procurement target (AB 2514)

Panel 1: Procurement Options • Janice Lin - Energy Storage Alliance • David Castle

Panel 1: Procurement Options • Janice Lin - Energy Storage Alliance • David Castle - Southern California Edison • Armando Infanzon - San Diego Gas & Electric • Daidipya Patwa - Pacific Gas and Electric 8

Procurement Options A) Procurement targets as a fixed percentage of load-serving entities’ load, may

Procurement Options A) Procurement targets as a fixed percentage of load-serving entities’ load, may be structured as a capacity (Megawatt) threshold, or for specific applications for storage. B) Pilots or “Market Tests” focused on specific priority applications or end uses, to further develop tools for cost-effectiveness analysis. C) Portfolio - Setting aside a dynamically adjusted portion of procurement for need determination for “preferred” resources, specifically including storage. D) As noted by legislative analysis of AB 2514 he Commission’s determination could also result in a finding that no target level is appropriate. What additional information do we need to decide? 9

CAISO Markets and Testing Don Trethaway, Senior Market Design and Policy Specialist, Market Design

CAISO Markets and Testing Don Trethaway, Senior Market Design and Policy Specialist, Market Design and Regulatory Policy, California ISO 10

Panel 2: Operational Experience and Pilots • Jack Ellis, Independent Engineer and Consultant -

Panel 2: Operational Experience and Pilots • Jack Ellis, Independent Engineer and Consultant - Select Projects • Praveen Kathpal, AES Energy Storage – Lessons from the Field • Vic Romero, SDG&E Director – Asset Management & Smart Grid Projects – SDG&E Pilots 11

Energy Storage in EPIC plans • On November 1, 2012, the CEC, PG&E, SCE

Energy Storage in EPIC plans • On November 1, 2012, the CEC, PG&E, SCE and SDG&E filed their required 2012 -2014 Investment Plans for research & development programs funded via ratepayer contributions to the EPIC program. • Total $466. 5 million for Applied Research, Technology & Demonstration (T&D), and Market Facilitation (2013 -2016). • Utility spending is entirely in the T&D category. • As much as $60 million of the CEC project budget could be applied to energy storage research projects. Up to $15 million possible for IOU projects that could include storage. 12

Cost-Effectiveness Analysis Update Aloke Gupta, Regulatory Analyst, CPUC 13

Cost-Effectiveness Analysis Update Aloke Gupta, Regulatory Analyst, CPUC 13

Next Steps • Comments on this workshop may be incorporated with comments on January

Next Steps • Comments on this workshop may be incorporated with comments on January 4, 2013, Staff Interim Report and Use Cases. • Must be served to entire Service List for R. 10 -12 -007. • As per ALJ Ruling of January 10, 2013: • Comments are due February 4, 2013; • Response comments due February 21, 2013. • Ongoing work to conduct cost-effectiveness analysis. 14

Thank You! For further information related to R. 10 -12 -007 please contact :

Thank You! For further information related to R. 10 -12 -007 please contact : Arthur O’Donnell ao 1@cpuc. ca. gov 415 -703 -1184 Aloke Gupta ag 2@cpuc. ca. gov 415 -703 -5239 Elizaveta Malashenko eim@cpuc. ca. gov 415 -703 -2274 15 www. cpuc. ca. gov