Jeff Smith EPRI Workshop Presentation

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Distribution Costs and Benefits of Increasing Penetrations of PV

Jeff Smith, EPRI, [email protected] Nadav Enbar, EPRI, [email protected] Solar Integration Workshop San Diego, CA April 30,2015 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Outline  Brief overview of methodology  Summary of cost/benefit results from 3 uniquely different feeders – Technical – Economic

 Next steps: Evaluating distribution “system-wide” impacts – challenges and solutions

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Integrated Grid Methodology Distribution System

 To fully realize the impact and value of DER a deliberate and beneficial integration is needed  Widespread deployment of PV needs to be incorporated into both grid planning and operational processes

Hosting

Energy

Capacity

Reliability Benefit/Cost

Scenario Definition Market Conditions

DER Adoption

System Assumptions

 EPRI has developed a comprehensive benefit-cost framework aimed at better informing strategic decisionmaking

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Bulk System Resource Adequacy

Transmission Performance

Flexibility

Transmission Expansion

Operational Practices & Simulation

An Integrated Grid

System Benefits

Societal Costs/Benefits

System Costs

Customer or Owner Cost/Benefits

Method for Distribution Analysis: A “Bottoms-Up” Approach

Why a bottoms-up approach?  Distribution planning requires a detailed look at the unique characteristics and behaviors of each feeder in order for utilities to maintain the required level of service quality and reliability.  A similarly detailed examination must be undertaken to fully quantify the value of PV as a distribution resource.  In this way, analysis can provide insights into the factors affecting PV “hosting capacity" and greater understand of other relevant issues.  The bottoms-up approach also acknowledges that location matters. 4 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Distribution Analysis Areas of Exploration

Analysis Topic

Thermal Capacity

Area

Description

Transformer Capacity

Analysis of the reduction in net feeder demand and capacity relief on existing distribution infrastructure (potentially deferring distribution-capacity upgrades and equipment life).

Feeder Losses

Analysis of the reduction in distribution line and transformer losses due to the generation source being located closer to the load.

Energy Consumption

Effect of customer-based PV on delivery voltages that may counteract the expected benefit of conservation voltage reduction (CVR) programs by increasing consumer loads.

Feeder Voltage

Analysis of overvoltage deviation issues due to PV along with mitigation options and associated costs.

Feeder Protection

Analysis of protection coordination issues due to changes in fault current along with mitigation options and associated costs.

Net Financial Impacts

Cost-Benefit assessment performed on each analysis area.

Energy

Hosting Capacity and Mitigation

Economic Analysis 5

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Example Case Studies

Cost/Benefit Results from Three Uniquely Different Feeders

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Distribution Feeders Can be Rather Unique Let’s examine a few… Feeder K3

Feeder S1

Feeder Evaluation Criteria

Feeder K2

3 distribution feeders selected based on their range in characteristics and hosting capacities.

Protection & Voltage All penetrations in this region are acceptable, regardless of location

Protection

Some penetrations in this region are acceptable, site specific

Voltage

No penetrations in this region are acceptable, regardless of location

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Thermal Capacity Analysis  What is considered? Watts

– Capacity deferral: analyzed based on utility-specific practices for planning system upgrades.

Load and PV

– Thermal aging: analyzed based on IEEE Standard 57.91 for thermal aging calculations.

– Historical load and solar data. – Transformer thermal characteristics and ratings. – Ambient conditions.

Time 0.025

Cummulative Loss of Life (%)

 Quantification of impact based on:

Load Only

0.020

Increasing levels of PV

0.015

0.010

0.005

0.000 0

1

2

3

4

Year (2% load growth/year)

*example illustrations only

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5

6

First to consider: How constrained are existing assets?

8000

K2 7000

Normal Planning Limit of 6,600 kVA

Available capacity

Power (kVA)

6000 5000 4000 3000



Yearly load profile analyzed, peak load day/level identified for each



Planned load growth applied

2000

1000 0

Jan 3

Time (Hours)

Jan 4

Jan 5 Data

Feeder K2

Current Loading (% of normal limit)

82%

Planned Load Growth Calculated Load Growth Until Capacity Constrained 9 © 2015 Electric Power Research Institute, Inc. All rights reserved.

1%/year ~20 years

Second to consider: What capability does PV have when assets are constrained? Statistical Distribution of Hourly Output - K2 100%

Normalized PV Power (% of PV Rating)

90%

K2 Feeder

peak load hour

80% 70%

Max and Min Median Inner quartile (25th and 75th)

60% 50% 40% 30% 20% 10% 0% 5

6

7

8

9

10

11

12

13

14

Hour of Day

15

16

17

18

19

20

21

Dec 1-Feb 29, 2011

In order to defer capacity, the resource (PV) must be available when the asset is most constrained

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Thermal Capacity Assessment: Summary of Results for Three Feeders  The differences in deferral potential were driven primarily by the available capacity on the feeder and the utility planning practices employed. Technical Metrics Current Loading (% of normal limit) Planned Load Growth Calculated Load Growth until Capacity Constrained

Feeder K2

Feeder K3

Feeder S1

82%

67%

64%

1%/year

0.5%/year

1%/year

~ 20 years

~ 80 years

~ 50 years

$13,050

0

0

Economic Metrics Deferral Savings

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Energy Analysis Line and core losses

 What is considered?

– Energy loss and consumption on feeder with no PV. – Energy loss and consumption on feeder with PV.

 Quantification of impact based on: – Difference in losses and consumption with and without PV. – Annual simulation using measured load profiles and local ground-based PV measurements to drive simulations. 12 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Low-voltage line losses

Customer meter

 Analysis Metric

Transmission

– Change in losses on distribution feeder resulting from PV. – Change in consumer energy consumption due to changes in delivery voltages.

Medium voltage line losses

Transformer load and noload losses

Energy consumption

Energy Assessment: Summary of Results Continued  Line losses are more greatly impacted (reduced) for feeders with greater initial losses  Change in consumption can impact net losses  At higher penetration levels, improvement in losses are lessened – Increased consumption on feeder – Reverse power flow

Feeder K2 4.10% 3.14

Feeder K3 2.70% 5.3

Feeder S1 6.30% 4.6

0.70%

0.32%

0.71%

New Losses with PV

3.40%

2.38%

5.59%

% Change in losses/MW of PV

-5.44%

-2.24%

-2.45%

Base Losses without PV PV Capacity (MW) Reduction in Losses with PV (line & core)

Including increase in energy consumed by customers Net Reduction in Losses with PV 0.47% 0.07% (line & core & consumption) New Losses with PV (Net) 3.63% 2.63% % change in Net Losses/MW of PV -3.65% -0.49% 13 © 2015 Electric Power Research Institute, Inc. All rights reserved.

0.10%

6.20% -0.35%

What about the Cost for Integrating PV? Considering PV Higher than feeders existing Hosting Capacity

 Three PV penetration levels (0.5/1.0/2.0 MW)  For each penetration case, two scenarios are analyzed: – Optimal location: PV installed on the feeder at locations that are less likely to see issues and therefore reduces the impact of PV. – Non-optimal location: PV installed on the feeder at locations that are most likely to see issues and therefore maximizes PV’s impact.

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Mitigation Analysis (Voltage and Protection)  Impacts Considered

Voltage Mitigation Options Considered

– Voltage

• Reconductoring

– Protection

• Service transformer replacement • Service upgrade

 Mitigation Measures – Prevent adverse voltage or additional control operations – Prevent inadvertent protection operation

 Quantification of Mitigation

• Add voltage regulator • Smart inverters

Protection Mitigation Options Considered  Directional relay/settings  Reconductoring

– Existing utility upgrade practices

 Grounding recloser/transformer

– Cost of mitigation

 Direct transfer trip

 Breaker replacement

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Application of Voltage & Protection Assessment Method to Feeder K2  Mitigation is needed at all three PV penetrations selected for consideration.  More optimal PV deployments typically require less upgrades. 0.5 MW scenario 1.0 MW scenario 2.0 MW scenario Secondary Overvoltage Secondary Voltage Deviations

No Issues Primary Imbalance

May require upgrades

Regulator Voltage Change

Requires upgrades

Primary Voltage Deviations Primary Overvoltage

0 16

2 Hosting Capacity (MW)

4

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*protection upgrades also needed at 2MW level

Application of Voltage & Protection Assessment Method Continued

 Cost of voltage and protection mitigation options needed based on utility estimates for each Mitigation Means

Materials Installation

Units

Lifetime

3Ø Reconductor to 795AA

$ 50,000

$ 250,000

per mile

40

1Ø Reconductor to 795AA

$ 16,667

$ 125,000

per mile

40

3Ø Regulator

$ 40,000

$ 35,000

each

30

Capacitor Bank

$10/kvar

$ 1,000

each

30

Distribution Transformer

$ 1,000

$ 600

each per Ø

40

Line Recloser

$ 30,000

$ 20,000

feet

40

Secondary/Service Upgrade

$ 60 + $2/ft

$ 80+$3.2/ft

feet

40

Assumed in 2014$ 17 © 2015 Electric Power Research Institute, Inc. All rights reserved.

O&M

$2000/yr

Summary of Example Feeder Results for Three Feeders Feeder K2 Capacity Deferral 0.5 MW 1 MW 2 MW

-.15 ȼ/kWh -.15 ȼ/kWh -.15 ȼ/kWh

Feeder K3

Feeder S1

0

0

Mitigation Costs 0.5 MW 1 MW 2 MW

.01 to 2 ȼ/kWh .01 to 5 ȼ/kWh 1 to 7 ȼ/kWh

Losses (line & core)

5.4% per MWPV

2.2% per MWPV

2.4% per MWPV

Losses (net)

3.6% per MWPV

0.5% per MWPV

0.3% per MWPV

0

0.64 ȼ/kWh 0.3 to 0.8 ȼ/kWh 0.2 to 0.8 ȼ/kWh

 Each feeder has a unique benefit and cost based on its particular characteristics and utility planning methods.  Analyzing a few feeders only tells “part” of the story 18 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Next Steps  Working with TVA to evaluate local distributor’s entire service territory  Technical analysis on 300 feeders across 100 substations  Combined rural/urban systems  Multiple voltage classes

…so how are we doing this?

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Distribution-Wide Assessment of DER EPRI Streamlined Hosting Capacity Method

 Utilizes current utility planning tools and data (no new tools are needed)  Evaluates each feeder individually  Can be applied throughout entire system (1000’s of feeders) in automated fashion

 Considers “feeder-level” response with results that can be aggregated up to substation/system level  Applications – Distribution resource plans – Screening – …. Distribution diagrams courtesy of Salt River Project 20 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Sample Results of Streamlined Hosting Capacity TVA DG-IV Project

*hosting capacity

System Hosting Capacity Substation Hosting Capacity Substation Marker Feeder Hosting Capacity

*Initial analysis results with one TVA local power company, results not finalized 21 © 2015 Electric Power Research Institute, Inc. All rights reserved.

Conclusion Voltage

– Costs and benefits vary significantly

voltage

 Distribution systems are unique in terms of their response to DER

limit

time 

Protection relay desensitization

Load Only

Current

 Location matters  Analyzing a few feeders only tells part of the story

Watts

Thermal Capacity

unacceptable overvoltage

Load and PV

Impedance 

Integrated Approach

Impedance 

– Does not capture system-wide response Energy

Energy Losses

 Assessing DER impacts across entire system can be challenging  Solutions exist

unserved energy

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Energy

– New EPRI approach allows for system-wide assessment without sacrificing necessary details using existing planning tools

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energy exceeding normal

Time 

Reliability

Questions Reference  Understanding the Costs and Benefits of Increasing Grid Penetrations of Solar Photovoltaics. EPRI, Palo Alto, CA: 2014. 3002003270.  Distributed Photovoltaic Feeder Analysis: Preliminary Findings from Hosting Capacity Analysis of 18 Distribution Feeders. EPRI, Palo Alto, CA: 2013. 3002001245.  A New Method for Characterizing Distribution System Hosting Capacity for DER: A Streamlined Approach for PV. EPRI, Palo Alto, CA: 2014. 3002003278.  The Integrated Grid: A Benefit-Cost Framework, EPRI, Palo Alto, CA: 2015. 3002004878 23 © 2015 Electric Power Research Institute, Inc. All rights reserved.