Tucson Electric Power

T ED B U R H AN S

D IR ECTO R , R EN EWAB L E EN ER GY R ES O UR CES

Arizona Renewable Energy Standard • Annual renewable goals increase 1%

each year to 15% in 2025

• 8% in 2018

• At least 30% of total from distributed generation

• One of the highest in the nation

TEP’s Commitment

• TEP plans to reach 30% by 2030

• Currently 340 MW solar & wind

• Additional 250 MW of DG

• Planned additions of 800-1000 MW over next 10 years

• 1,000 MW Winter / 2,500 Summer

TEP Utility-Scale Renewable Portfolio

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

2018 2019 2020 2021 2022 2023 2024 2025

GW

h

Solar Wind Biogas TEP Utility Scale Target

*Does not include DG

Diversifying TEP’s Resource Portfolio

36%

34%

30%

2014 2017 2023 2032

Energy Mix

Coal Natural Gas & Purch. Power Renewables & Energy Efficiency

20%

30%

16%

Operator Challenges From Intermittancy

4

TEP Energy Storage Projects

• As of EOY 2016 TEP had ≈5% of the grid-

scale energy storage capacity in U.S

• Provide frequency and voltage support for

local distribution grid

1. NextEra Energy Resources

• 10MW lithium nickel-manganese-cobalt

battery, 15 minute duration (2.5 MWh)

• DeMoss-Petrie Substation

2. E.On Climate & Renewables

• 10MW lithium Titanate oxide battery, 15

minute duration (2.5 MWh)

• Combined with 2 MW Solar PV

• U of A Science and Tech Park

Next Era’s Pima Energy Storage System (PESS)

EC&R’s Iron Horse Energy Storage System

EPRI – Project RAIN

• Resource Aggregation and Integration Network • Will complement work done in APS’ Solar Partner Program

• Requested by Arizona Corporation Commission • Study effects of DERs with phasor-based measurements on distribution grid

• Study how a DERMS could help successful deployment of DERs

• Battery Storage

• Inverter Firmware

• Water Heaters

• Thermostats

• Electric Vehicle Chargers

• Will be tested in EPRI labs with multiple vendors • Scorecard

• No integration to utility networks • Setup strictly as a research project

• Currently deploying an Advanced Distribution Management System (ADMS)

6

EPRI – Project RAIN

7

TEP’s Roller Coaster

-

200

400

600

800

1,000

1,200

1,400

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

Hour

30% Target

2030 Winter/Spring Day

Existing Solar (8% of 2030 Target)

15% of 2030 Target

Reduced Thermal Unit Minimums

Thermal Unit Ramp Up Thermal Unit Ramp Down

No Peak Contribution

TEP Coal minimum (reduced with retirements)

Flexible Generation Resources

• Natural Gas Combined Cycle Generation

• Backstop for coal plant retirements

• Low cost, efficient, fast-ramping resources

• $300/kW purchase price

• Natural Gas Reciprocating Internal Combustion Engines (RICE)

• Fast-ramping resource for renewable integration (starts in 2 minutes, full load in 5 minutes)

• Low water consumption

• 200 MW online in 2019

Future…

• 100 MW Wind – COD 2020 • NextEra Energy Resources • New Mexico wind • Existing Transmission Capacity

• 100 MW Solar + 30 MW Energy Storage – COD 2020 • NextEra Energy Resources • Sub-$30 per MWh for solar energy • 4-hour duration storage

• Wind RFP • 100-150 MW • Closed, Currently reviewing bids • 7 respondents

10

Future…

• Energy Storage Task Force • Identifying use cases for future storage up to 70 MW

• Solutions looking for problems

• Batteries can do a lot of things, but only 1 or 2 really well

• Arizona Energy Modernization Plan • 80% Clean Resources by 2050

• 3,000 MW of storage • Batteries, pumped, compressed air, etc.

• 2,000 pumped-storage hydro in development – Big Chino

• Biomass • 50,000 acres per year ~80 MW per year

• Electric Vehicles

• Revamped Energy Efficiency

• NextGen Ballot Initiative • 50% by 2030

• 10% Distributed Generation carve-out

11

Thank you!

T B U R H ANS@ TEP.COM