SEPA report offers guidance on planning for distributed energy resources

As tempting as it may be for utilities to ignore the growth of distributed energy resources (DER), they must plan for integration of this form of generation. To help power providers develop a strategy to accommodate increasing DER penetration, Smart Electric Power Alliance You are leaving WAPA.gov. (SEPA) has published a two-volume report, Beyond the Meter: Planning the Distributed Energy Future.

Volume I: Emerging electric utility distribution planning practices for distributed energy resourcesThe utility industry is changing and many of the changes are being driven by consumers seeking new energy choices, technology advances leading to lower costs and better performance and new policies. Both utilities and their customers will have to work together to ensure grid reliability as distributed energy resource (DER) penetration increases. Engineering consultants Black and Veatch You are leaving WAPA.gov. collaborated with SEPA to provide a new strategy to become a proactive distribution planning utility.

Volume I: Emerging electric utility distribution planning practices for distributed energy resources outlines why traditional distribution system planning framework does not meet the needs of today’s grid. Five investor-owned and public power utilities shared their drive, progress and challenges when planning and proactively integrating distributed energy resources within their distribution system. The report covers:

  • Practical framework for distribution planning utilities
  • Insight from sector leaders on challenges and successes
  • Tools to better understand customer needs

Volume II: A case study of integrated DER planning by Sacramento Municipal Utility District Volume II: A case study of integrated DER planning by Sacramento Municipal Utility District details how SMUD used the findings of Volume I to forecast DER growth and plan for distribution challenges. Through the lens of SMUD, the report looks at the broader scenarios the electric utility industry can expect to encounter. The report covers:

  • Results of the new utility planning strategies
  • Risks and opportunities of new DER systems
  • More on the new distribution system planning framework

Beyond the Meter is free to download for both SEPA members and non-members.

Source: Smart Electric Power Alliance, May 2017

AESP launches on-demand webcast series

For utility program managers and customer service representatives, keeping up with the latest in program design, implementation and evaluation has become a constant challenge. A new continuing education series from the Association for Energy Services Professionals You are leaving WAPA.gov. (AESP) can help them find time for professional development. The new webcast series explores topics like pilot programs, new technologies, changing customer behavior and distributed generation.

The on-demand format provides the convenience of a webinar, but with more depth on the subject matter. Participants can benefit from a customized agenda featuring multiple expert speakers and presentations. You can choose a convenient time and listen to all the presentations at once (3-4 hours) or split up over a couple of days. With AESP’s learning management system, you can pick up right where you left off, and even start over at any point. And, when you pay for a webcast, it is available to you for a full year.

AESP presented the first webcast in the series, All About Pilots – Program Design, Best Practices & Results, on May 15. The three-hour webcast features nine different presentations and 11 speakers covering the essentials of designing and implementing pilots including:

  • Key considerations in program design
  • Pitfalls to avoid
  • Previews of new concepts currently being piloted, including a Zero Net Energy home pilot, a demand management pilot, geotargeting for the agricultural market pilot, and an in-house Ecoconcierge pilot
  • Challenges faced and how to overcome them

All About Pilots is available now, however the Q&A board closes after two weeks after the webcast. Upcoming webcasts will focus on:

  1. Emerging Technologies, coming in July
  2. Behavior Change, coming in September
  3. Distributed Energy Resources & Storage, coming in November

It is not necessary to be a member of AESP to use the webcast, but the cost is discounted for AESP members. If you have any questions, please contact the AESP E-Learning Center.

Source: Association for Energy Services Professionals, 5/15/17

Utility Dive lists Top 10 transformative trends: What do you think?

Transformation could be the most overused word in the electric utility industry these days. Big data, energy storage, the internet of things and electric vehicles are just a few of the technologies we are being told will change the way we do business forever.

But what utility professionals see on the ground may be quite different, both from what we hear and from what other utilities are dealing with. The trends that are actually affecting your utility depend on what part of the country you serve, what your customer base looks like and whether you are an investor-owned or public power utility.

To get a sense of where the utility industry is headed, the online magazine Utility Dive You are leaving WAPA.gov. recently identified 10 trends that seem destined to shape our near future:

10. Coal power in decline – Since 2009, 25 gigawatts (GW) of coal capacity has retired in the U.S., and another 25 GW of retirements are planned by 2022. However, the Environmental Protection Agency still expects coal to be a major fuel source for electricity generation through 2030.

9. Natural gas is growing fast – As market conditions and regulations push older coal generators into retirement, utilities are increasingly looking to gas plants to add reliable capacity quickly. Analysts still expect it to grow steadily over the coming decade and then switch to retirement between 2020 and 2030, a trend that could come sooner if natural gas prices rise from their historic lows.

8. Renewables reaching grid parity – Once dismissed as too expensive to be competitive, wind and solar—especially utility-scale—are reaching grid parity and often pricing out more traditional generation resources. In fact, the Department of Energy estimates that wind could be the nation’s single greatest source of energy by 2050, comprising up to 35 percent of the fuel mix.

7. Utilities face growing load defection – With the rapid proliferation of rooftop solar, some customers are bypassing their local utility for their electricity needs, especially in a few markets such as Hawaii and California. Customers combining load management strategies with rooftop solar installations could purchase less power from their utility, and may even cut the cord altogether.

6. Utilities getting in on the solar game – A number of utilities are responding to load defection and consumer demand for clean energy by expanding into the solar industry, both in the utility-scale and rooftop markets. Community shared solar, which allows customers without suitable rooftops for solar to buy a few modules on a larger array, grew exponentially between 2014 and 2016.

5. Debates over rate design reforms and value of distributed energy resources (DERs) are heating up – Altering rate designs to properly value distributed resources is a trend that has largely grown out of retail net metering. This pays utility customers with solar the retail rate for the electricity they send back to the grid.

4. Utilities are modernizing the grid – Adding new utility-scale and distributed renewable capacity has increased the need for utilities to upgrade and modernize their transmission and distribution grids. Many of the regulatory initiatives underway to help determine the value of DERs also order their state’s utilities to prepare their distribution grids for increased penetrations of distributed resources.

3. Utilities buying into storage – Few technologies hold as much promise as energy storage for utilities looking to optimize their distribution grids and integrate more renewables. While the price for battery storage is still too high to make projects economical in regions with relatively inexpensive electricity, costs are coming down quickly.

2. Utilities becoming more customer-centric – Power companies used to think of their consumers simply as ratepayers, or even just “load,” but new home energy technologies and shifting customer expectations are pushing them to focus on individual consumers. Increasingly, utilities are seeing it in their best interests to market themselves to customers as “trusted energy advisors” of sorts.

1. Utility business models are changing – The common thread running through these trends is that they all are changing the way electric utilities have traditionally done business. Where utilities were once regulated monopolies, the growth of distributed resources is forcing them to rethink their business models. California and New York have captured most of the headlines for redefining the utilities’ role on the distribution grid, but other states have initiated their own dockets to transform business models.

It is likely that your utility has had to think about at least a few of these issues and may be grappling with more of them before long. Energy Services is here to help our customers manage these challenges and more. Contact your Energy Services representative to discuss how to turn transformation into your greatest opportunity.

Source: Utility Dive

Utility industry survey identifies top concerns in 2017

The results are in from Utility Dive’s State of the Electric Utility Survey 2017
and the report is available to download. You are leaving WAPA.gov.

The top five issues utilities identified as their biggest challenges will no doubt sound familiar to WAPA customers, whether or not they participated in the survey:

  • Physical and cyber security
  • Distributed energy policy
  • Rate design reform
  • Aging grid infrastructure
  • Reliable integration of renewables and distributed energy resources (DERs)
72 percent of utility professionals said physical and cyber security is either "important" or "very important," making it the most pressing issue for the sector in 2017.

72 percent of utility professionals said physical and cyber security is either “important” or “very important,” making it the most pressing issue for the sector in 2017.

The results of the survey, disclosed in late March, found that 72 percent of respondents see physical and cyber security as either “important” or “very important” today, making it the industry’s most pressing issue in 2017. A total of 65 percent considered distributed resource policy either important or very important. Rate design reform ranked as important for 31 percent and very important for 32 percent of respondents. As for aging grid infrastructure, 34 percent of survey respondents see it as important today, while another 28 percent say it is very important. The reliable integration of renewables and DERs finished in the top five with 60 percent identifying it as an important or very important concern.

State regulatory model reform, the aging utility workforce, changing consumer preferences, compliance with state power mandates and stagnant load growth rounded out the top ten issue responses.

Two years ago, physical and cyber security ranked as sixth, behind aging infrastructure, aging workforce, current regulatory models, stagnant load growth and federal emissions standards.

More than 600 electric utility employees from the U.S. and Canada took online questionnaire, offered to Utility Dive readers in January. Investor-owned utilities represented 54 percent of the survey respondents, followed by municipal or public power utilities (32 percent) and electric cooperatives (14 percent).

Among other key takeaways in the 2017 report, the survey found that utilities are most confident in the growth of utility-scale solar, distributed energy resources, wind energy and natural gas generation over the next 10 years. They also expect coal generation to decline significantly, while nuclear generation will stagnate or retire, depending on the region. Utilities consider uncertainty over future energy policies and market conditions to be the most significant challenge associated with the changing power mix, according to the survey.

Region played a role in how utilities viewed challenges. The majority of respondents across the country identified physical and cyber security, DER policy and renewable energy and DER integration as serious issues. However, that concern was markedly stronger in the West Coast, Great Plains, Rocky Mountain and New England regions. Utility Dive noted that those regions feature states with both robust DER growth and utility reform dockets to reshape power sector business models for DER deployment.

Rate design reform and aging infrastructure were of greater concern on the West Coast, while utilities in the Southwest and South Central states were the least worried about those issues.

You can download the report for free and see how your responses stack up to those of your colleagues. Then, share your thoughts on these issues with Energy Services, let us know how you are handling them and how you would like us to help you address them.

Source: Public Power Daily, You are leaving WAPA.gov. 4/10/17

Free webinar discusses valuation of distributed energy resources

Aug. 17
12 p.m. MT

As distributed energy resources (DER) become more prevalent, states across the country are seeking to design consistent and durable valuation and compensation schemes for these resources. What’s a Watt Worth? presents three novel approaches to valuing distributed energy resources (DER) from California, New York and Texas. Speakers will cover locational valuation of DER and DER in wholesale markets, locational net benefits analysis of distribution resource plans and distribution-level markets for DER.

The Distributed Generation Interconnection Collaborative (DGIC) aims to share knowledge on distributed photovoltaic interconnection practices and innovation. Register You are leaving WAPA.gov. for this free webinar and sign up to receive quarterly updates on DGIC activities.

Source: National Renewable Energy Laboratory, 8/8/16

New report looks at utility business models for energy storage

Navigant Research You are leaving WAPA.gov. and Sunverge Energy, Inc. You are leaving WAPA.gov. have teamed up to produce a white paper highlighting opportunities to embrace energy storage in ways that benefit both public utilities and their customers.

The National Renewable Energy Laboratory estimates that the technical potential of rooftop solar photovoltaics (PV) in the United States represents the equivalent of 39 percent of current U.S. electricity sales. The capacity from solar panels, advanced batteries and other forms of distributed energy resources (DER) is likely to keep growing. Some in the industry see this trend as the beginning of the “utility death spiral.” There are optimists, however, who see the chance for utilities—especially publically owned utilities—to reinvent themselves and their customer relationships.

According to the report, Making Sense of New Public Power DER Business Models, advanced energy storage can optimize DER to provide value on either side of the meter. In three featured case studies, public utilities, including Sacramento Municipal Utility DistrictYou are leaving WAPA.gov. leveraged the diverse services energy storage can offer if coupled with state-of-the-art controls software. Smart storage applications proved to be the key to delivering win-win results such as improved reliability, more resilience and greater customer satisfaction.

Public power providers are uniquely positioned to explore new energy service delivery models that can turn the challenge of integrating DER into customer partnerships. You can learn more about innovative business models and up-and-coming technologies by downloading a free copy of Making Sense of New Public Power DER Business Models.

Source: Public Power Daily, 5/9/16

DOE announces $25M to accelerate integration of solar into grid

Informational webinar
May 19
12 -2 p.m. Mountain Time

Utilities, solar companies and software developers working on solar energy grid integration solutions will welcome a May 2 funding opportunity announcement (FOA) from the Department of Energy. The DOE program called Enabling Extreme Real-Time Grid Integration of Solar Energy, or ENERGISE, announced that it is making $25 million available for research to modernize the national grid. Energise-graphic350

The amount of solar power installed in the U.S. has increased 23-fold in the last seven years, from 1.2 gigawatts in 2008 to an estimated 27.4 gigawatts in 2015, with one million systems now in operation. A key challenge to furthering solar deployment is the ability to integrate distributed generation sources like rooftop solar panels into the grid while balancing that generation with traditional utility generation. This FOA aims to support companies working to meet that challenge while keeping reliable and cost-effective power flowing.

ENERGISE specifically seeks to develop software and hardware platforms for utility distribution system planning and operations that integrate sensing, communication and data analytics. These hardware and software solutions will help utilities manage solar and other distributed energy resources on the grid and will be data-driven, easily scaled-up from prototypes and capable of real-time monitoring and control.

Funds are being offered for projects addressing two topic areas:

  • Topic Area 1 covers near-term projects to develop commercially ready, scalable distribution system planning and real-time grid operation solutions compatible with existing grid infrastructure to enable the addition of solar at 50 percent of the peak distribution load by 2020. A one-year field demonstration with utility partners is required.
  • Topic Area 2 covers projects that tackle the long-term challenge of developing transformative and highly scalable technologies compatible with advanced grid infrastructure to enable solar at 100 percent of the peak distribution load by 2030. DOE will require a large-scale simulation to demonstrate performance and scalability.

DOE’s SunShot Initiative will oversee the projects funded by this opportunity. The program expects to make 10 to 15 awards altogether. Awards for Topic Area 1 will likely range between $500,000 and $4,000,000 each. For Topic Area 2, DOE anticipates making awards of between $500,000 and $2,000,000 each.

The Solar Energy Technologies Office is hosting an informational webinar You are leaving WAPA.gov. on May 19, 12 to 2 p.m. Mountain Time. All applicants must submit a brief concept paper by June 17. Full applications are due by Aug. 26, 2016.

See the Energy Department news release.

Source: DOE Office of Energy Efficiency and Renewable Energy, 5/2/16