Assessment for Commitment Costs Enhancements 3

Transcription

1 Assessment fr Cmmitment Csts Enhancements 3 Alex J. Mrris, Plicy Directr June 15, Califrnia Energy Strage Alliance

2 Abut CESA Making energy strage a mainstream energy resurce t advance a mre affrdable, clean, smart, and reliable electric pwer system in Califrnia. Bard Members General Members 1 Energy Systems Inc. Alstm Energy Aquin Energy Bright Energy Strage Brkfield Renewables CA Envirnmental Assciates Cnslidated Edisn Develpment Cumulus Energy Strage Custmized Energy Slutins Demand Energy Dynapwer Cmpany Eagle Crest Energy EDF Renewable Energy Electric Mtr Werks, Inc. Elevatin Slar ELSYS Inc. Energy Strage Systems, Inc. Enphase Energy EV Grid Geli Grdn & Rees Green Charge Netwrks Greensmith Energy Gridscape Slutins Gridtential Energy Hitachi Chemical Cmpany Ice Energy Imergy Pwer Systems Invenergy Jhnsn Cntrls JuiceBx Energy K&L Gates LG Chem Pwer LightSail Energy Lckheed Martin AES NEC Energy Slutins OutBack Pwer Technlgies Panasnic Parker Hannifin Crpratin Primus Pwer Princetn Pwer Systems RES Americas S&C Electric Cmpany Saft America Sharp Electrnics Skylar Capital Management Sny Crpratin Svereign Energy Sumitm Electric SunEdisn SunPwer Trina Energy Strage Tshiba Internatinal Crpratin Tri-Technic UniEnergy Technlgies Yunics Califrnia Energy Strage Alliance

3 Level-Setting Basic Questins t answer fr CCE3: Hw d the prpsed rule-changes affect energy strage (NGR, PDR) and what shuld be dne? Majr cnceptual: sme resurces want/need t limit usage Path A: Establish/bid apprpriately high bids and cmmitment csts (and manage RUC cncerns) Path B: Reduce participatin in markets, e.g. thrugh utage card Majr Mving Parts t Factr: RAAIM Expsure in light f change t use-limited definitin Ability t represent Cmmitment Csts, including Opprtunity Csts Ability t Include Opprtunity Csts in bids Bid Insertin r lack theref Key Distinctin Energy Strage cncepts t recall: Many types batteries, thermal, ther Cmmitment csts exist thermal regulatin lads CPUC t review treatment f Auxiliary Lads in Strage OIR Track Califrnia Energy Strage Alliance

4 PDR and NGR Relevant Features NGR PDR Bid Mitigatin? N N Ability t represent Cmmitment Csts? N Yes Bid Insertin? N N Pre CCE3 and under RAAIM (per RSI), can RAAIM penalty expsure be managed thrugh Use-Limited status, aka Path B? Under CCE3 and w/ RAAIM (per RSI), can RAAIM penalty expsure be managed thrugh Path B? 3 N 1 Yes 2 N Yes 3 1. Unless the NGR is use-limited. Further clarificatin may be needed here. 2. Can submit a use-limit reached utage. 3. Per CAISO, can submit a new utage card exempting DR frm RAAIM nce design limitatin is reached. Beynd 2018, rules may be unclear Califrnia Energy Strage Alliance

5 Issue Sptting Shuld resurces have ability t represent cycling limitatins if they s chse? Yes. Assessment Slutin Path A r Path B culd allw. Nte: sme strage cntracts signed under present tariff s use-limited D Path A and Path B yield same ability fr a resurce t manage vercycling r ther use-limits? Will a mve t Path A (per CCE3) change RAAIM penalty expsure risks fr extant PDR and NGR cntract beynd 2018? If LSE is Scheduling Crdinatr fr PDR/NGR, is RAAIM penalty expsure t the resurce avided? Can NGRs and PDRs manage cmmitment and pprtunity csts? 4 It appears s, but systems requirements n CAISO are harder under Path B. Yes: if resurces cannt sufficiently manage dispatch/ruc thrugh bids and cmmitment csts r use-limited utages. N: if sufficient ability exists t represent pprtunity csts in bids, cmmitment csts, and RUC and n bid-insertin Depends n cntract, but csts may flw thrugh t a resurce (and nt LSE) since RAAIM penalty applies t resurce NGRs cannt represent cmmitment csts, but can represent pprtunity csts in bids (if <$1000). PDRs may represent cmm. csts and may need ability t represent pprtunity csts in cmm. csts 2016 Califrnia Energy Strage Alliance CAISO, CPUC, and stakehlders t detail challenges/slutins fr Paths A vs B (as nted in RSI 1). PDRs and NGRs need capabilities t represent use-limitatins. Resurces under established cntracts need avenues t manage any new RAAIM penalty expsure. ISO initiative shuld create ability t establish cmmitment csts fr NGRs. PDRs need t represent pprtunity csts in cmmitment csts.

6 Takeaways Path A and Path B seek t wrk twards same utcme allwing resurces t manage use-limitatins, within reasn. Challenge is t assess current cntracts and t make sure any transitin frm Path B t Path A, if needed, is manageable and reasnable. DRAM Cntracts nt affected due t implementatin timelines fr CCE3. Ability t represent use-limitatins as pprtunity csts in bth cmmitment csts and bids appears t be preferred path by CAISO (Path A). Sme slutins warrant further develpment/cnsideratins Defining use-limited rules t wrk fr extant cntracts may prtect cntracts balance f benefits and burdens. Further authrizatins/clarity needed n ability t represent pprtunity csts in cmmitment csts and t manage RUC cmmitments. NGRs need ability t represent cmmitment csts recmmend establishing this capability in ESDER 2. Ability t manage RUC expsure als needs t be develped under Path A Califrnia Energy Strage Alliance