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Title: Exploring Distributed Energy Alternatives to Electrical Distribution Grid Expansion in Souhern California Edison Service Territory

Abstract

Distributed energy (DE) technologies have received much attention for the energy savings and electric power reliability assurances that may be achieved by their widespread adoption. Fueling the attention have been the desires to globally reduce greenhouse gas emissions and concern about easing power transmission and distribution system capacity limitations and congestion. However, these benefits may come at a cost to the electric utility companies in terms of lost revenue and concerns with interconnection on the distribution system. This study assesses the costs and benefits of DE to both consumers and distribution utilities and expands upon a precursory study done with Detroit Edison (DTE)1, by evaluating the combined impact of DE, energy-efficiency, photovoltaics (a use of solar energy), and demand response that will shape the grid of the future. This study was funded by the U.S. Department of Energy (DOE), Gas Research Institute (GRI), American Electric Power (AEP), and Gas Technology Institute's (GTI) Distributed Energy Collaborative Program (DECP). It focuses on two real Southern California Edison (SCE) circuits, a 13 MW suburban circuit fictitiously named Justice on the Lincoln substation, and an 8 MW rural circuit fictitiously named Prosper on the Washington Substation. The primary objectives of the study were threefold:more » (1) Evaluate the potential for using advanced energy technologies, including DE, energy-efficiency (EE), demand response, electricity storage, and photovoltaics (PV), to reshape electric load curves by reducing peak demand, for real circuits. (2) Investigate the potential impact on guiding technology deployment and managing operation in a way that benefits both utilities and their customers by: (a) Improving grid load factor for utilities; (b) Reducing energy costs for customers; and (c) Optimizing electric demand growth. (3) Demonstrate benefits by reporting on a recently installed advanced energy system at a utility customer site. This study showed that advanced energy technologies are economical for many customers on the two SCE circuits analyzed, providing certain customers with considerable energy cost savings. Using reasonable assumptions about market penetration, the study showed that adding distributed generation would reduce peak demand on the two circuits enough to defer the need to upgrade circuit capacity. If the DE is optimally targeted, the deferral could economically benefit SCE, with cost savings that outweigh the lost revenues due to lower sales of electricity. To a lesser extent, economically justifiable energy-efficiency, photovoltaic technologies, and demand response could also help defer circuit capacity upgrades by reducing demand.« less

Authors:
 [1];  [2]
  1. ORNL
  2. Gas Technology Institute
Publication Date:
Research Org.:
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Sponsoring Org.:
OE USDOE - Office of Electric Transmission and Distribution
OSTI Identifier:
931597
Report Number(s):
ORNL/TM-2005/109
TD5001120; CETD008; TRN: US200813%%421
DOE Contract Number:
DE-AC05-00OR22725
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
24 POWER TRANSMISSION AND DISTRIBUTION; CAPACITY; DISTRIBUTION; ELECTRIC POWER; ELECTRICITY; ENERGY ACCOUNTING; ENERGY EFFICIENCY; ENERGY SYSTEMS; GREENHOUSE GASES; MARKET; POWER TRANSMISSION; RELIABILITY; SALES; SHAPE; STORAGE

Citation Formats

Stovall, Therese K, and Kingston, Tim. Exploring Distributed Energy Alternatives to Electrical Distribution Grid Expansion in Souhern California Edison Service Territory. United States: N. p., 2005. Web. doi:10.2172/931597.
Stovall, Therese K, & Kingston, Tim. Exploring Distributed Energy Alternatives to Electrical Distribution Grid Expansion in Souhern California Edison Service Territory. United States. doi:10.2172/931597.
Stovall, Therese K, and Kingston, Tim. Thu . "Exploring Distributed Energy Alternatives to Electrical Distribution Grid Expansion in Souhern California Edison Service Territory". United States. doi:10.2172/931597. https://www.osti.gov/servlets/purl/931597.
@article{osti_931597,
title = {Exploring Distributed Energy Alternatives to Electrical Distribution Grid Expansion in Souhern California Edison Service Territory},
author = {Stovall, Therese K and Kingston, Tim},
abstractNote = {Distributed energy (DE) technologies have received much attention for the energy savings and electric power reliability assurances that may be achieved by their widespread adoption. Fueling the attention have been the desires to globally reduce greenhouse gas emissions and concern about easing power transmission and distribution system capacity limitations and congestion. However, these benefits may come at a cost to the electric utility companies in terms of lost revenue and concerns with interconnection on the distribution system. This study assesses the costs and benefits of DE to both consumers and distribution utilities and expands upon a precursory study done with Detroit Edison (DTE)1, by evaluating the combined impact of DE, energy-efficiency, photovoltaics (a use of solar energy), and demand response that will shape the grid of the future. This study was funded by the U.S. Department of Energy (DOE), Gas Research Institute (GRI), American Electric Power (AEP), and Gas Technology Institute's (GTI) Distributed Energy Collaborative Program (DECP). It focuses on two real Southern California Edison (SCE) circuits, a 13 MW suburban circuit fictitiously named Justice on the Lincoln substation, and an 8 MW rural circuit fictitiously named Prosper on the Washington Substation. The primary objectives of the study were threefold: (1) Evaluate the potential for using advanced energy technologies, including DE, energy-efficiency (EE), demand response, electricity storage, and photovoltaics (PV), to reshape electric load curves by reducing peak demand, for real circuits. (2) Investigate the potential impact on guiding technology deployment and managing operation in a way that benefits both utilities and their customers by: (a) Improving grid load factor for utilities; (b) Reducing energy costs for customers; and (c) Optimizing electric demand growth. (3) Demonstrate benefits by reporting on a recently installed advanced energy system at a utility customer site. This study showed that advanced energy technologies are economical for many customers on the two SCE circuits analyzed, providing certain customers with considerable energy cost savings. Using reasonable assumptions about market penetration, the study showed that adding distributed generation would reduce peak demand on the two circuits enough to defer the need to upgrade circuit capacity. If the DE is optimally targeted, the deferral could economically benefit SCE, with cost savings that outweigh the lost revenues due to lower sales of electricity. To a lesser extent, economically justifiable energy-efficiency, photovoltaic technologies, and demand response could also help defer circuit capacity upgrades by reducing demand.},
doi = {10.2172/931597},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Thu Dec 01 00:00:00 EST 2005},
month = {Thu Dec 01 00:00:00 EST 2005}
}

Technical Report:

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  • The nation's power grid, specifically the New York region, faces burgeoning energy demand and suffers from congested corridors and aging equipment that cost New York consumers millions of dollars. Compounding the problem is high-density buildup in urban areas that limits available space to expand grid capacity. Coincidently, these urban areas are precisely where additional power is required. DER in this study refers to combined heat and power (CHP) technology, which simultaneously generates heat and electricity at or near the point where the energy will be consumed. There are multiple CHP options available that, combined with a portfolio of other buildingmore » energy efficiency (EE) strategies, can help achieve a more efficient supply-demand balance than what the grid can currently provide. As an alternative to expanding grid capacity, CHP and EE strategies can be deployed in a flexible manner at virtually any point on the grid to relieve load. What's more, utilities and customers can install them in a variety of potentially profitable applications that are more environmentally friendly. Under the auspices of the New York State Energy Research and Development Authority (NYSERDA) and the Oak Ridge National Laboratory representing the Office of Electricity of the U.S. Department of Energy, Gas Technology Institute (GTI) conducted this study in cooperation with Consolidated Edison to help broaden the market penetration of EE and DER. This study provides realistic load models and identifies the impacts that EE and DER can have on the electrical distribution grid; specifically within the current economic and regulatory environment of a high load growth area of New York City called Hudson Yards in Midtown Manhattan. These models can be used to guide new policies that improve market penetration of appropriate CHP and EE technologies in new buildings. The following load modeling scenarios were investigated: (1) Baseline: All buildings are built per the Energy Conservation Construction Code of New York State (No CHP applied and no EE above the code); (2) Current Policy: This is a business-as-usual (BAU) scenario that incorporates some EE and DER based on market potential in the current economic and regulatory environment; (3) Modified Rate 14RA: This economic strategy is meant to decrease CHP payback by removing the contract demand from, and adding the delivery charge to the Con Edison Standby Rate PSC2, SC14-RA; (4) Carbon Trade at $20/metric tonne (mt): This policy establishes a robust carbon trading system in NY that would allow building owners to see the carbon reduction resulting from CHP and EE.« less
  • A description is given of present and anticipated environmental consequences of meeting electricity demand in the Con Edison service territory--New York City and most of Westchester County. Important issues include nuclear power, air pollution, water and aquatic life, and siting power plants and transmission facilities. (GRA)
  • Together with OSIsoft LLC as its private sector partner and matching sponsor, the Lawrence Berkeley National Laboratory (Berkeley Lab) won an FY09 Technology Commercialization Fund (TCF) grant from the U.S. Department of Energy. The goal of the project is to commercialize Berkeley Lab's optimizing program, the Distributed Energy Resources Customer Adoption Model (DER-CAM) using a software as a service (SaaS) model with OSIsoft as its first non-scientific user. OSIsoft could in turn provide optimization capability to its software clients. In this way, energy efficiency and/or carbon minimizing strategies could be made readily available to commercial and industrial facilities. Specialized versionsmore » of DER-CAM dedicated to solving OSIsoft's customer problems have been set up on a server at Berkeley Lab. The objective of DER-CAM is to minimize the cost of technology adoption and operation or carbon emissions, or combinations thereof. DER-CAM determines which technologies should be installed and operated based on specific site load, price information, and performance data for available equipment options. An established user of OSIsoft's PI software suite, the University of California, Davis (UCD), was selected as a demonstration site for this project. UCD's participation in the project is driven by its motivation to reduce its carbon emissions. The campus currently buys electricity economically through the Western Area Power Administration (WAPA). The campus does not therefore face compelling cost incentives to improve the efficiency of its operations, but is nonetheless motivated to lower the carbon footprint of its buildings. Berkeley Lab attempted to demonstrate a scenario wherein UCD is forced to purchase electricity on a standard time-of-use tariff from Pacific Gas and Electric (PG&E), which is a concern to Facilities staff. Additionally, DER-CAM has been set up to consider the variability of carbon emissions throughout the day and seasons. Two distinct analyses of value to UCD are possible using this approach. First, optimal investment choices for buildings under the two alternative objectives can be derived. Second, a week-ahead building operations forecaster has been written that executes DER-CAM to find an optimal operating schedule for buildings given their expected building energy services requirements, electricity prices, and local weather. As part of its matching contribution, OSIsoft provided a full implementation of PI and a server to install it on at Berkeley Lab. Using the PItoPI protocol, this gives Berkeley Lab researchers direct access to UCD's PI data base. However, this arrangement is in itself inadequate for performing optimizations. Additional data not included in UCD's PI database would be needed and the campus was not able to provide this information. This report details the process, results, and lessons learned of this commercialization project.« less
  • Southern California Edison Company(Edison) has been a world leader in the development and use of photovoltaics (PV) for over a decade, and continues to aggressively pursue the use of PV for utility applications, both on-grid and off-grid. In 1994, we executed a Cooperative Agreement with the Department of Energy (DOE) for our Solar Neighborhood Program to install up to 500 kW of PV on-grid. The Electric Power Research Institute (EPRI) is also a major participant. The project is overseen by a Project Review Committee, comprised of Edison, DOE, EPRI, the National Renewable Energy Laboratory (NREL) and the Utility Photovoltaic Groupmore » (UPVG). This paper describes how we went about looking for high value applications, how and where and why we found them, and what needs to be done to further the process. It describes how we succeeded in obtaining the support of our Customer Service Department and the community.« less
  • The objective of this project is to use field verification to improve DOE’s ability to model and understand the impacts of, as well as develop solutions for, high penetration PV deployments in electrical utility distribution systems. The Participant will work with NREL to assess the existing distribution system at SCE facilities and assess adding additional PV systems into the electric power system.