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Energy Storage Standards, Conformance and Technology:
South Africa
Diane I. Fellman, Esq.(formerly)
California Public Utilities Commission
February 21, 2019
Creating Storage Policy for Decarbonization, Affordability, Safety and Reliability:
The California Experience
Disclaimer
This presentation was prepared by a private individual formerly employed by the California Public Utilities Commission (CPUC). It does not necessarily represent the views
of the CPUC, its Commissioners, or the State of California. The CPUC, the State of California, its employees, contractors, and subcontractors make no warrant, express or implied, and assume no legal liability for the information in this presentation. It has not
been approved or disapproved by the CPUC, nor has the CPUC passed upon the accuracy or adequacy of the information in it.
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Reference links have been embedded and are marked with this icon.
California Statistics Population: 39,500,000 (1st in US)
South Africa: ~56,000,000
Area: 163,696 sq. mi. South Africa: 471,445 sq.miles
5th Largest Global Economy
Diversity of Natural Resources
Statewide peak demand: ~ 60,713 MW South Africa: ~40,000 MW (2020)
Climate zones*: Sea level to 14,000 ft.
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Coastal Mountain Desert
Valley High Desert Forest
*Mediterranean to Alpine to Desert
Energy Regulation:Federal v. California
Federal Energy Regulatory Commission
California Public Utilities Commission (CPUC)
• Electric transmission and wholesale rates and services
• Hydroelectric dam licensing and safety
• Natural gas pipeline transportation rates and services
• Reliability – Grid operators
• Independently owned utilities• Retail electric rates• Generation planning and
procurement• Distribution programs &
infrastructure investment• Safety
California Energy Commission (CEC)
• Power plant siting approvals• Thermal >50 MW
• Appliance and Building Efficiency Standards
• Demand Forecasting• Investing in Energy Innovation• Transforming Transportation
California Independent System Operator
(CAISO)
• Manages the flow of electricity across the high-voltage, long-distance power transmission lines
• Operates a competitive wholesale power market
California’s Energy Policy: Three Pillars
• Affordability
• Reliability & Safety
• Decarbonization
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California’s Policy Success: Reduce GHG emissions and
grow the economy and…
6Source: 2017 California Integrated Energy Policy Report (IEPR), CEC
Reduce Consumption and Increase Efficiency
72017 California Integrated Energy Policy Report (IEPR), CEC
California Resource Mix
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Renewables* Penetration in California
2018
9 Source: CAISO What are we doing to green the grid?
*Actual numbers for CAISO
Does not include large hydro or nuclear
2019
+ 6500 MWs of rooftop solar
Challenges to the Grid
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Actual Renewables Output: Tuesday, May 15, 2018
This is the Duck Curve:High Ramps due to Renewables
Where does storage belong?
Resilient (Wildfires)
Reliable
Efficient
11Source: Pacific Gas & Electric Company
It’s like salt! (Janice Lin, CESA)
Growth of Storage in California: TimelineText goes here
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Growth of Storage in California: InstalledText goes here
13 Source: Energy Commission Staff using US Department of Energy database
California Storage Policy Approaches
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StatutesMandates
•Legislation: Storage & 100% clean grid•Mandated Procurement•Technology Neutral & Diversity of Size•Priority over fossil fuels for grid resiliency
IncentivesProcesses
• BTM*: Self-Generation Incentive Program • Interconnection • Resource in Wholesale Markets• Rate design: Time of Use; Net Metering
Expanded Revenue
• Long-term Contracting• Multiple Use Applications: Storage/Solar• Ancillary Services and Load Shifting• Integrate Renewables *Behind the Meter
• Advancing and Maximizing the Value of Energy Storage: A California Roadmap (2014)• CPUC Storage Website
California Storage Policy Barriers
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Cost
• Storage costs exceeded other resources for all applications
Technology
• Technologies are under development and have not yet gone to scale
• Applications may not match grid needs e.g. duration
Timing• Procurement process and permitting may
cause delays
Greater Market Penetration Helps Overcomes Barriers *Behind the Meter
Storage Technologies in California
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Regulatory Procurement Targets
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Source: Energy Storage Market Survey and RecommendationsCPUC Staff Briefing for Commissioners: October 24, 2018
Sample Utility storage Procurement :Includes schedules, pro forma agreements, protocols
PG&E SCE SDG&E
Incentives: Self Generation Incentive Program (SGIP)
Objective• Reduce GHG
• Demand Reduction
• Increased System Reliability– Improved transmission and
distribution system utilization– Increase penetration of distributed
energy resources (DER)
Mechanism• Incentives
– $USD 500,000 collected to date– Ratepayer funded– Step down in value
• Based on subscribers in queue– Annual budget
• 80% to storage(13% to residential < 10 kW)
• Technologies: Storage +– Wind, waste heat to power,
biogas, pressure reduction turbines, fuel cells, small generation
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CPUC SGIP website 2017 SGIP Handbook, click here.Utility SGIP websites: PG&E SCE SDG&E SoCalAdministration website: https://www.selfgenca.com/
CPUC Rule 21 Interconnection Standards
Objective
• Streamline interconnection of technologies at the distribution* level
– CPUC governs interconnection of all third party resources to the grid
• Study issues relating to export of storage to the grid
• Impact of storage on timing and cost allocation for grid upgrades
– Infrastructure deferment potential
*CAISO governs wholesale transmission system
Mechanism
• Utility tariff: CPUC process• Timeframe to review applications
– Fee schedules and impact studies
• Allocation of interconnection costs• Technical operating parameters
– Certification– Testing criteria– Inverter requirements– Metering and monitoring
• Dispute resolution mechanisms
• Continuing Implementation – Next phase: 2019-2020
Note: Solar rooftop with net energy metering is exempted20
Rule 21: CPUC References • Rule 21 Interconnection General Information Page
• IOU Rule 21 – PG&E – SCE– SDG&E
• Process– Initial Issues: 2014 Report– Current Issues: Rulemaking 17-07-007 CPUC web page
• Rulemaking 17-07-007 (proceeding link)• Order Instituting Rulemaking (OIR) 17-07-007
– Phase 1:– Phase 2
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Rule 21: ReferencesWorking Groups(2)
• Working Group 1: Urgent and/or Quickly Resolved Issues including Smart Inverters– Transmission Cluster Studies– Complex Metering– Material Modifications in 1) Interconnection Applications or 2) Existing Facilities– Telemetry– Activation of Latent Smart Inverters– Smart Inverter Aggregator Forms and Agreements– Income Tax Component of Contribution
• Working Group 2: Integration Capacity Analysis (ICA) and Streamlining• Pro forma distributed energy resource aggregation agreements between suppliers and companies;
– Incorporation of the ICA into Rule 21 to inform siting decisions – Streamlining the Fast Track interconnection process for projects that are proposed below the integration capacity at a particular point on the system– Facilitate automation of the interconnection process
• Working Group 3: Planning, Construction, and Billing of Distribution Upgrades • Working Group 4: Application Processing and Review Issues• Working Group 5: Smart Inverter Issues• Working Group 6: Safety and Environmental Issues• Working Group 7: Rate Setting Issues• Working Group 8: Small and multi-jurisdictional utility rules
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Rule 21: Reference(3) Interconnection Discussion Forum
The CPUC Energy Division has established an Interconnection Discussion Forum (on the Rule 21 webpage above) to provide an information venue for utilities, developers to meet the following objectives:
Material is available on the following topics:• PV + Storage• EPRI Solar + Storage Interconnection• Smart Inverter and Reactive Power Priority• Joint IOU Interconnection Process Common Deficiencies and Best Practices• Rules 2 15 16 21 (Interconnection Rules)• Interconnection Timeline greater than 1 MW• Interconnection Timeline less than 1 MW• Joint IOU Interconnection Process Common Deficiencies and Best Practices
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California Storage Safety Standards
Objective
• Make installation of energy storage safe in California homes, business and for grid support.
• Create requirements and best practices for installation, certification, fire protection, outreach to first responders with other approaches
• Technology is developing quickly so standards are rapidly evolving.
Mechanism
• Codes, standards and guidelines– Electrical codes– Building codes at the local level
• Includes signage
• Includes state fire marshall
• National labs are also developing best practices
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Safety References:CPUC compilation
Summary: Best safety practices for the installation of energy storage (Links referenced below)
• UL 1973 covers energy storage for solar photovoltaics, wind turbine storage, and other stationary applications as well as for light electric rail applications.
– UL 1973 is evolving into UL 9540, a newer standard that covers related systems for storing energy from power sources or providing electricity to power conversion equipment, for example electrical charging or discharging equipment.
– UL 3001 under development (no webwide yet)• NEC 480 applies to stationary batteries that provide an independent source of power for emergency lighting,
switchgear control, engine-generator set starting, signal and communications systems, laboratory power, and similar applications.
• NEC 705 has expanded and applies to power-production systems connected to the electricalgrid.
• California Building Standards Code contains a wide range of valuable information for connecting electrical equipment including batteries.
• NFPA 1 covers fire safety for the public and first responders and provides a comprehensive approach to fire code regulation and hazard management.
• NFPA 70 addresses the installation of electrical equipment, communications equipment, and optical fiber cables in commercial, residential, and industrial occupancies
Fire Safety: California State Fire MarshallBest Practices: • Pacific Northwest National Laboratory: Overview of Development and Deployment of Codes, Standards and
Regulations Affecting Energy Storage System Safety in the United States• Pacific Northwest National Laboratory: Inventory of Safety-related Codes and Standards for Energy Storage System• U.S. Department of Energy: Energy Storage Safety Strategic Plan• Sandia National Labs: Energy Storage Safety Page and Working Group
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Storage and the Grid: CAISO • Storage as a Transmission-Connected Asset
Beyond capacity for local area reliability identified in the transmission plan– Provide regulated & competitive Cost of Service transmission services– Market-based services to access market revenue streams– Benefit ratepayers by lowering costs and providing greater flexibility
• Wholesale Market participationEnhance ability of ISO connected and distribution-[connected resources to participate in the wholesale market to help lower carbon emissions and provide operational benefits– Non-generation resources– Bidding requirements– Demand response Enhancements– Multiple-Use Application
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Storage as transmission asset(Issue paper) (1/24/19 Presentation)
Storage participation in the wholesale marketsPhase 1; Phase 2 Completed; Phase 3: (2018) (presentation)Underway: Phase 4 (2019) (Issue paper)
Additional California References:Storage Technology Research & Climate Assessment
Storage (CEC)• Energy Storage needs in California
• Energy Storage Showcase (innovative technology research)
• Tracking progress for all California utilities
– Investor-owned– Municipal
• 2019 Building Energy Efficiency Standards : Zero Net Energy
– Fact Sheet
Climate• Fourth statewide Climate Change
assessment (2019)
• California’s climate change research to develop adaptation plans
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Thank you!
For Additional Information:
+1-415.601.2025 (US mobile)
