physicaland)economic)effects)of) distributedpvgenerationon...

19
Physical and Economic Effects of Distributed PV Generation on California’s Distribution System i 4 Energy and Berkeley Energy and Climate Institute Energy Research Symposium September 17, 2013 Michael A. Cohen (presenter), Paul A. Kauzmann & Duncan S. Callaway Energy and Resources Group, UC Berkeley

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Page 1: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

Physical  and  Economic  Effects  of  Distributed  PV  Generation  on  California’s  Distribution  System    

i4Energy  and  Berkeley  Energy  and  Climate  Institute  Energy  Research  Symposium  

September  17,  2013  

Michael  A.  Cohen  (presenter),  Paul  A.  Kauzmann  &  Duncan  S.  Callaway  Energy  and  Resources  Group,  UC  Berkeley  

Page 2: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

http://www.pge.com/mybusiness/edusafety/systemworks/electric/currentgrid/   2  

Page 3: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

Net  metering:  *  Setting  aside  externalities  and  market  transformation  goals,  paying  

rooftop  PV  generators  retail  rather  than  wholesale  rates  appears  to  be  a  subsidy,  because  it  allows  these  customers  to  benefit  from  the  power  grid  while  paying  less  (or  nothing)  for  it.  

*  But  could  PV  have  other  benefits  for  the  distribution  system  that  would  justify  some  of  this  “subsidy”?  

*  Or  could  PV  actually  have  negative  effects  on  the  system  (e.g.  voltage  fluctuations)  that  make  net  metering  even  more  of  an  overvaluation  than  it  initially  appears?  

Motivation  

3  

Page 4: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

1.  The  energy  value  of  PV  appears  to  be  far  larger  in  magnitude  than  any  economic  effect  that  it  has  on  the  distribution  system.  

2.  The  capacity  investment  deferral  benefit  appears  to  be  smaller  but  potentially  meaningful;  necessary  modeling  assumptions  lead  to  uncertainty.  

3.  Other  effects  we  examined  appear  to  be  very  small,  but  we  were  not  able  to  assign  an  economic  value  to  all  areas  of  concern  with  the  available  data.  

Key  Findings  

4  

Page 5: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

The  Method  

5  

Physical Results

Economic ResultsPost-processing

Energy value

Value of capacity deferral

Value of avoided/added maintenance

Locational Marginal Price

(LMP) of energy [CAISO]

Regulator maintenance

budget [PG&E]

GridLAB-D

Energy use

Peak load

Transformer loss of

insulation life[IEEE Std. C57.91]

Regulator operations/current dutyModel runs

Vary: • Location

(weather)• PV penetration

PV production

data [SolarCity]

"Taxonomy feeders" for CA[PNNL]

Current loading of feeders and projected load growth [PG&E]

Inputs Outputs

Weather data

[NREL/LBNL] Voltage

profiles Voltages out of ANSI standard

Changes in transformer lifetime

Incidence of reverse power flow

Page 6: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

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A  Hypothetical  Geography  

6  

Page 7: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

Triplex Load

Triplex Meter

Simplex Load

Simplex Meter

FuseTransformer

Overhead Line

Switch

Underground LinePlain triplex node

Capacitor Bank

RecloserRegulator

Load

Meter

FuseTransformer

Overhead Line

Switch

Underground LinePlain triplex node

Capacitor Bank RecloserRegulator

7  

Page 8: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

Selecting  PV  Sites  

8  

Page 9: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

PV/Meter  Matching  

9  

Page 10: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

The  Method  (2)  

10  

Physical Results

Economic ResultsPost-processing

Energy value

Value of capacity deferral

Value of avoided/added maintenance

Locational Marginal Price

(LMP) of energy [CAISO]

Regulator maintenance

budget [PG&E]

GridLAB-D

Energy use

Peak load

Transformer loss of

insulation life[IEEE Std. C57.91]

Regulator operations/current dutyModel runs

Vary: • Location

(weather)• PV penetration

PV production

data [SolarCity]

"Taxonomy feeders" for CA[PNNL]

Current loading of feeders and projected load growth [PG&E]

Inputs Outputs

Weather data

[NREL/LBNL] Voltage

profiles Voltages out of ANSI standard

Changes in transformer lifetime

Incidence of reverse power flow

Page 11: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

(During  Sept  2011  –  Sept  2012,  based  on  a  weighted  average  of  feeders  and  climates  designed  to  approximate  PG&E’s  service  territory.)  

3.5¢/kWh  

This  is  about  18%  higher  than  the  average  weighted  LMP  of  2.97¢/kWh,  illustrating  that  PV  power  has  advantages  in  terms  of  timing  and  reduction  of  distribution  system  losses.  

11  

Energy  Value  of  PV  

Page 12: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

12  

Peak  Load  Reduction  

!

!!

!

!!

!

60%

70%

80%

90%

100%

0% 15% 30% 50% 75% 100%PV Penetration

Nor

mal

ized

Peak

Loa

d

feeder!

!

!

!

!

!

!

!

R1−12.47−1R1−12.47−2R1−12.47−3R1−12.47−4R1−25.00−1R3−12.47−1R3−12.47−2R3−12.47−3

region

!

BerkeleyLos AngelesSacramento

Based  on  some  comparison  of  simulated  and  real  real  load  shapes,  it  is  probably  optimistic  to  extrapolate  Berkeley  and  Sacramento  results  to  all  of  CA,  although  benefits  that  large  (and  larger)  will  probably  materialize  at  some  feeders.  

Black  shapes  with  dotted  lines  show  means  for  each  region  (climate)  

Page 13: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

Capacity  Benefit  Scenarios  

13  

Page 14: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

14  

10  Year  Capacity  Benefit  

When  we  levelize  this  (disregarding  the  most  extreme  deployment  trajectories)  we  get  values  in  the  range  of  0.26  –  0.69¢/kWh,  or  about  7  –  20%  of  the  energy  value,  with  the  largest  levelized  capacity  benefit  at  lower  penetrations.  

$0

$200

$400

$600

15% 30% 50% 75% 100%PV Penetration

NPV

of C

apac

ity B

enef

it (M

illion

s of

201

2 $)

PV deploymenttrajectory

All in Y1LinearLate ramp 1Late ramp 2Late ramp 3All in Y10

Page 15: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

15  

Voltage  Regulator  Operation  

PV  can  affect  tap  change  frequency,  but  the  economic  effects  are  small  because  overall  regulator  expenditures  are  relatively  small  (~$1.4M  in  2012).  

! !!

! !!

!

! ! ! !

!

!

!

5

6

7

8

0% 15% 30% 50% 75% 100%PV Penetration

Tap

Cha

nge

Cou

nt (T

hous

ands

)feeder!

!

!

!

!

!

!

!

R1−12.47−1R1−12.47−2R1−12.47−3R1−12.47−4R1−25.00−1R3−12.47−1R3−12.47−2R3−12.47−3

region

!

BerkeleyLos AngelesSacramento

Page 16: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

16  

Voltage  Regulator  Operation  

! ! ! ! !!

!

0.0%

0.1%

0.2%

0.3%

0% 15% 30% 50% 75% 100%PV Penetration

Volta

ge R

eadi

ngs

Out

side

ANSI

Sta

ndar

d Ra

nge

feeder!

!

!

!

!

!

!

!

R1−12.47−1R1−12.47−2R1−12.47−3R1−12.47−4R1−25.00−1R3−12.47−1R3−12.47−2R3−12.47−3

region

!

BerkeleyLos AngelesSacramento

Voltages  outside  ANSI  standard  range  are  rare  in  all  simulated  scenarios.  Sometimes  PV  causes  a  small  increase;  at  other  times  it  could  be  beneficial  if  voltages  tend  to  be  low.  

Page 17: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

1.  Based  on  its  ability  to  reduce  losses  and  defer  capacity  investments,  (and  the  apparently  small/uncommon  negative  effects)  it  seems  justified  to  value  PV  energy  at  more  than  the  wholesale  rate.  

2.  The  value  of  PV’s  advantages  is  relatively  small  compared  to  the  wholesale  cost  of  energy,  and  of  themselves  they  wouldn’t  justify  valuing  PV  at  the  full  retail  rate.  

3.  The  exact  value  of  PV  estimated  here  is  highly  uncertain  due  to  modeling  limitations;  in  particular  we  believe  more  work  on  California-­‐specific  load  models  would  be  helpful.  

Conclusions  

17  

Page 18: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

This  work  was  supported  by  the  California  Solar  Initiative  RD&D  program  and  Robert  Bosch  LLC  through  its  Bosch  Energy  Research  Network  program.  

The  following  organizations  and  individuals  provided  invaluable  data  and/or  insight;  they  do  not  necessarily  endorse  any  findings  described  in  this  presentation.  

PG&E:  John  Carruthers,  Donovan  Currey  &  Matt  Heling  PNNL:  Jason  Fuller  and  the  GridLAB-­‐D  engineering  team  SolarCity:  Eric  Carlson,  Justin  Chebahtah  &  Karthik  Varadarajan  UC  Berkeley  Geospatial  Innovation  Facility  (GIF):  Kevin  Koy  CIEE:  Lloyd  Cibulka,  Alexandra  (Sascha)  von  Meier    UC  Berkeley:  Dan  Arnold,  Josiah  Johnston,  James  Nelson,  Ciaran  Roberts,  Michaelangelo  Tabone  and  Shuyu  (Simon)  Yang  LBNL:  Emma  Stewart  

18  

Thank  You  

Page 19: Physicaland)Economic)Effects)of) DistributedPVGenerationon ...i4energy.org/downloads/12_mcohenPVandDistribution i4energy 2013-09... · Physicaland)Economic)Effects)of) DistributedPVGenerationon

19  

A  Caveat  Regarding  Load  Profiles  

! !

!! ! ! ! ! !

!

!

!

!

!!

!!! ! ! !

!

!

!

! !

!

!! !

!

!

!

!

!

!! ! ! ! !! ! ! !!

!

!

0%

25%

50%

75%

100%

0%

25%

50%

75%

100%

Norm

alized LoadN

ormalized PV Power

0:00 4:00 8:00 12:00 16:00 20:00Hour Beginning (PPT)

Example  day  is  Aug.  13,  2012,  CAISO’s  2012  system  peak  day.  Green  circles  are  CAISO  system  load,  blue  circles  are  PG&E.