aci conference - ancillary services & pev charging
TRANSCRIPT
www.peakload.org
Opportunities for Commercial Grade Electric Vehicle Chargers to Provide
Ancillary Services to Enhance Grid Reliability
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Overview
The central idea is that PEV charging loads can provide certain grid services that have historically been served by generators.
The demand response resource is created by modulating charging rates up and down in response to external control or price signals. This opportunity will expand as the penetration of PEVs increases and lessons from early studies are distilled.
This presentation addresses key market drivers for commercial charging load control to provide demand response and ancillary services.
SemaConnect and PlugShare have solved numerous challenges with communication and controls, and achieved the proof of concept stage.
Real world utility and grid experience through pilot studies are still required. The team has been in discussions with utilities that have expressed interest (progress slow).
Concept
Opportunity
Market Drivers
Next Steps
Progress So Far
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PEV chargers have some advantages over other small distributed loads in the provision of demand response and ancillary services.
Charger loads are:
Not weather dependent like other resources such as HVAC; they are generally available during peak system operating conditions
Unique availability patterns that add resource diversification to aggregated resources
Minimal customer discomfort or inconvenience, thus reduced likelihood of user over-ride of controls
Enabled with communication and control equipment to remotely monitor stations and communicate with drivers
Individually metered with rich information on historic usage that can be used to forecast performance
Opportunities
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• Rate structures offered by utilities that reflect cost of service at different times
• Customers respond by voluntarily reducing usage
Demand Response
Non-Dispatchable Price Responsive
Demand (energy) Reliability (capacity) Ancillary Services
• As demand response has become more dynamic, certain resources have become capable of providing ancillary services
• Requires specific operational characteristics, including response within seconds to minutes of notification
• Predictable change in electricity consumption in response to electricity prices
• Energy offered into real time and day-ahead markets
Dispatchable (Supply-side)
Our focus
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Demand Response
• Commitments to deliver energy at some forward date, such as three years
• When this capacity becomes available it is dispatched to meet system reliability needs
• Load shedding is normally required within 1-3 hours of notification
www.peakload.org
Loads from individual charging sessions are quite small and must be aggregated to provide a viable grid resource. An aggregator will be an essential link between the charging station and the utility or grid.
Load Aggregator
Grid operator, source: PJM
Demand Response
Aggregation of PEV charging loads
Or mixed resources
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Demand Response
Onboard PEV Battery [bidirectional]
PEV Commercial Grade Charging
Station [unidirectional
power flow]
Kinds of Pilot Studies (Charger versus Battery)
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PEV charging stations can provide ancillary services by modulating the rate of charging in response to external signals and control.
Aggregation Required
Ancillary services have historically been provided by generation. In many jurisdictions demand response is also permitted to provide these services. SemaConnect envisions a future in which PEV charging stations participate in these markets.
The ISO/RTO control room assess moment to moment options and dispatches resources.
Generators have historically provided ancillary services. Power production is ramped up and down for grid balancing.
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Ancillary Services
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Ancillary Services
Generating units provide uni-directional ancillary services to the grid. They produce, but do not absorb, quantities of power.
Nonetheless, generators behave as a bidirectional grid resource.
This is because output is modulated around a pre-determined nominal output set-point (‘preferred operating point’).
A generator’s output provides a far larger resource than behind-the-meter distributed resources.
Generators PEV Charging Stations
Today’s chargers can provide unidirectional service (power down) by modulating the rate of power flow up and down.
Charging stations will eventually have the capability to push back onto the grid and provide true bidirectional flow.
Chargers can still behave as a bidirectional resource (up/down) much the way generation operates around a designated POP value.
In the case of PEV chargers, the POP value will be a negative (not positive) value that load will pivot around.
Aggregation is essential for these small loads to have value for grid operations.
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Ancillary Services
Regulation Market: Corrects for short term changes in electricity use that could affect the stability of the power system. This is part of normal system operations.
Reserves Market: Supplies electricity when the grid has an unexpected need for more power on short notice in contingency situations.
Required time between notification and demand response dispatch
PEV loads unsuitable
MW
Source: Regulatory Assistance Project, adapted from NERC, et al
Ancillary services are under the purview of FERC which has issued several orders intended to create a larger role for demand response. Certain ancillary services are now permitted in PJM, NY-ISO, MISO, CAISO and ISO-NE.
www.peakload.org
The typical required response time is 10 minutes to 30 minutes. Demand response participates by providing a predetermined amount of energy in order to meet a reliability standard.
At PJM, 18% of the synchronized reserves are provided by demand response, most of which is bid in by aggregators.
Operating reserves consist of spinning (synchronized) reserves and non-spinning (supplemental) reserves.
Spinning reserves are a first strategy for maintaining reliability following a contingency such as a loss of a generation or transmission.
Resources participating in synchronized reserve programs are generally dispatched a few times a month.
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Ancillary Services
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The size of the regulation market varies by region. ISO-NE, for example, dispatches every five minutes, which keeps the system fairly well balanced. This regulation market is therefore smaller than regions with hourly dispatch.
Regulation service compensates for random minute-to-minute variations in system load.
These fluctuations occur too frequently to be addressed through economic dispatch of generation or slower forms of demand response.
Regulation resources are bid into the market on a regular basis, whether hourly or every five minutes.
Bids are organized by price and operating characteristics (ramp rates, power factors, min/max limits).
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Ancillary Services
Source: U.S. Department of Energy
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Regulatory
WHOLESALE MARKETS (FERC)
The markets and programs that PEV charging loads may one day participate in are regulated at the Federal and State level. This shapes rules for participation.
RETAIL PROGRAMS (State PSC)
FERC regulates independent system operators and regional transmission operators. These ISOs and RTOs file individual tariffs that must be approved by FERC.
For example… The California ISO’s tariffs with FERC shape wholesale market programs and opportunities. These look quite different than ISO-NE’s demand response programs which are within a forward capacity market construct.
State regulatory commissions rulings govern electric utility operations. These influence the kinds of demand response programs that are offered and how aggressively this resource is pursued.
For example… PG&E’s program rules depend on their tariffs with the California PUC. This is why PG&E’s demand response programs look very different from National Grid’s in Massachusetts, a state that essentially turned control of demand response over to the ISO.
www.peakload.org
Each state has its unique history with regard to demand response. Many have at one time
or another implemented programs to meet their own reliability needs.
Following industry restructuring in many states, and then the inclusion of demand
response into certain ISO/RTO, some states began to take a back seat with regard to
demand response.
The New England states stopped offering their own programs when demand response was
first introduced into the forward capacity market in 2008.
In certain other states, demand response remained a retail service. In others, demand
response participated in both retail programs and wholesale markets.
If FERC Order 745 is invalidated then states which stopped offering demand response are
expected to resume responsibility.
Certain states are actively pursuing plug-in electric vehicles, and a handful are conducting PEV pilot studies with their load serving entities.
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Regulatory
www.peakload.org
FERC’s hallmark action on demand response was Order 745 (2011). This transformed energy markets by requiring that demand response be paid the locational marginal clearing price (same price as generation).
Additional rules included Order 890 (regulation services market,
2007), Order 719 (comparable
treatment of DR with generation,
2008), Order 755 (greater
compensation for fast-acting resources,
2011), Order 1000 (transmission
alternatives, 2012) and Order 784 (pay-for-performance, 2013).
FERC has been a strong proponent of demand response, creating rules intended to provide a level playing field with generation.
The D.C. Circuit Court overturned Order 745 in May 2014. FERC and numerous other parties (state commissions, grid operators, demand
response providers, industrial customers and consumer advocates) came together to request a rehearing by the entire eleven member court (the decision was based on the opinion of three justices).
This decision exceeded the scope of the plaintiff’s case by ruling expansively on jurisdictional issues around demand response in wholesale markets.
The Circuit Court denied this request. FERC and the U.S. Solicitor General (Department of Justice) must decide by December 16, 2014 whether to appeal this ruling to the U.S. Supreme Court.
Appeals to the Supreme Court in which the Solicitor General requests a hearing have much greater likelihood of being heard, on the order of 70% to 90%.
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Regulatory
www.peakload.org
PJM is the only ISO/RTO to have fully implemented Order 745. Demand response is offered into PJM markets and compensated the same as supply resources, as per Order 745.
PJM proposed in a white paper (October 2014) that demand response be treated in the wholesale market as a demand-side (not supply side) resource.
In this new paradigm, demand response providers are limited to (a) load serving entities and (b) competitive energy providers.
Under this proposal aggregators, which represent 70% of the demand response in the PJM market today, will no longer be allowed to participate directly. Rather, they will participate through load serving entities in individual states. This is an alarming development for aggregators … and also for some utilities.
PJM will use estimates of demand response provided by load serving entities to adjust downward their forecasts of capacity requirements. (Will unregulated suppliers offer PJM any demand response?)
Compensation is completely detached from locational marginal price. The value to load serving entities and states will accrue from avoided costs as the PJM-constructed supply curve shifts to the left.
Current May 2014
In time for May 2015 auction
The court invalidated Order 745 and ruled that FERC does not have jurisdiction over Demand response in energy markets.
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Regulatory: Circuit Court Invalidates FERC Order 745
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ISO-NE has been initiating market design changes to comply with Order 745, as directed by FERC. These have been cascading into numerous resource-intensive ISO projects.
The ISO will be deciding in early 2015 whether to expend additional resources to meet the June 2017 date for full market integration.
Current rules surrounding demand response will sunset on May 2017, the day before the new market begins. If Order 745 remains invalidated, demand response will have no role in the new energy (and reserves) market under construction.
Under full integration the obligations that demand response takes on can only be satisfied through performance in the energy market. The new rules specify that demand response must perform during scarcity events, yet paradoxically it will be unable to do so because these resources will not have access to the energy market.
The New York ISO has stated that demand response may not assume any new obligations in the upcoming capacity auction.
Compliance
Next Steps?
New Market
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Regulatory: Circuit Court Invalidates FERC Order 745
DR Excluded from Market
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Regulatory: Circuit Court Invalidates FERC Order 745
The question of whether DR may continue to provide ancillary services is not resolved.
The case for DR staying in ancillary services markets has been made by PJM which argued that ancillary services are well-defined wholesale products closely tied to FERC’s federal authority over interstate transmission service.
The PJM view is the commonly held opinion among many industry experts. This supports a continued role for DR as a supply-side resource in ancillary services markets.
Other authorities disagree, particularly certain conservative legal counsel. The argument is that if DR operates like a generator to balance the system, then it may no longer participate in organized energy markets.
Allowed
Not Allowed
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Enabling Technologies
At the ACI’s New Generation Demand Response Modeling Workshop yesterday, David Dobratz (Northeast Utilities) guided participants through exercises to help them understand how enabled technologies are leading to enhanced grid and distribution network reliability. The industry value chain can be distilled as follows:
These advances are led in part by startups and established companies that are offering an array of new products and services to manage load in response to price signals and grid conditions.
These new technology solutions can reach deep into the distribution network to resolve issues and reduce cost at a very granular level (transmission stations, feeders, customer facilities).
This is beyond the scope of what today’s organized markets are designed to achieve. We can expect to see load serving entities begin to play a much larger role in strategic management of their distribution system assets.
Enhanced network reliability
DR enabled equipment
Greater control
More operational awareness
Better aggregation capabilities
Reduced cost
What’s next?
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Enabling Technologies
Source: Derived from New Generation DR Business Modeling Workshop, ACI Demand Response and Ancillary Services conference, David Dobratz, Northeast Utilities. November 18, 2014.
The communication and control processes and technologies that make it possible for PEV chargers to participate in market programs are just one element of a complex ecosystem.
Various market entities play a role in facilitating value creation (see right).
In addition to the entities shown here, demand response automation and communication has been aided by standards and protocols, including OpenADR.
Equipment providers
Demand response providers
Communication and control providers
Market Entities
States and load serving
entities
The result is control of loads with a level of precision and ease of use that would have been unthinkable just a few years ago.
www.peakload.org
Connectivity via cellular modem with central control from a cloud-based network platform. Equipped for near real time monitoring of charger status and collection of metered usage data.
Enabled for fast, automated follow-through of demand response dispatch instruction. Standardized dynamic load signaling and ability to remotely cycle power from the grid.
State-of-the-art equipment includes J1772-compliant charge connector developed by Society of Automotive Engineers.
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Enabling Technologies
Power Levels
Level I – 120V, 12 Amps Level II – 240V, 30Amps Fast Charging – 480V, > 100Amps
Time to Charge (for 100 mile range battery)
Level I – 20 hours Level II – 4 to 8 hours Fast Charging – 20 minutes
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Installed non-invasive vehicle hardware equipment to facilitate timed charging, load curtailment, modulated charging and ability to send and receive signals.
Equipped to expand existing integration and communication between SemaConnect, charging stations, vehicles and drivers to include a demand response scheduling coordinator.
Plan to leverage information that is already being collected on vehicle status, driver behavior and battery charge levels.
Enabling Technologies
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Grid dispatch signal to the scheduling coordinator
Scheduling coordinator transmits load control signal to selected charging stations
Control signal is manipulated by the station software
Station signal sent to the server that the message is being executed
Reduction in charging power level
Station continuously meters energy flow and syncs data with the server
Scheduling coordinator confirms that power matches configured level
Settlement quality meter data is submitted
Sequence of Events
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Thank you!
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Mahi Reddy, Founder & CEO, [email protected]
Ryn Hamilton, [email protected]
Tom Ashley, Director, Utility & Regulatory Affairs, [email protected]