Meeting #31: The Intersection of Demand Response and Distributed Generation
Tuesday, December 3, 2013
10:00am – 3:15pm ET
U.S. Department of Energy (DOE) Headquarters, Forrestal Building, 1000 Independence Ave., SW, Washington, DC 20585
Demand Response (DR) and Distributed Generation (DG) are playing larger roles as resources in the capacity markets. This session will explore the benefits of DG and DR to the grid as well as how DG and DR benefit from the grid. The meeting will conclude with a discussion of a case study addressing the new peak demand for PJM that was reached on September 11, 2013 and the resulting curtailment of load in PJM West.
IEE Report (Oct 2013): Value of the Grid to DG Customers
IREC Report (Oct 2013): A REGULATOR’S GUIDEBOOK: Calculating the Benefits and Costs of Distributed Solar Generation
SEIA: Net Energy Metering Guiding Principles
RMI Report (Sept 2013): A Review of Solar PV Benefit and Cost Studies
The September 2013 PJM Record Peak
Mike Bryson, PJM
Joe Bowring, PJM Market Monitor
Ken Jennings, Duke Energy
On September 11, 2013, due to unseasonably hot weather, PJM hit a record peak of 144,370 MW compared with a peak of 129,959 MW in September 2012. Unseasonably hot weather also affected PJM operations on September 9th and 10th. During this three day period PJM had to direct local utilities to curtail load to prevent a worse outcome and PJM had to call for Load Management resources. It is important to understand that these were two separate actions that addressed different operational challenges. This panel will look at what happened, what can be done to avoid future similar occurrences, and what role DG and DR played in responding to the emergency conditions.
While most discussions have focused on the benefits that Distributed Generation provides to the grid, there has not been as much attention paid to how the grid benefits DG. This becomes an increasingly important aspect as we examine utility tariffs and cost allocation in the future. More and more, some customers are beginning to internally generate some or all of their power needs, relying on the utility only for supplemental or back-up power. The loss of sales for the Distribution Utility results in less revenues which in turn can cause stress on the utility system in terms of having adequate revenues to reliably operate the grid. Without changes in utility tariffs and cost allocations, the burden for the revenue shortfall could disproportionately fall on the non-DG customers. Reconsideration of rate designs to strike the appropriate balance between the utility, DG and non-DG customers is starting to be considered in states with advanced amounts of DG. As part of this equation, it is useful to identify the benefits that the grid provides to DG customers.
Just as it is important to identify the grid services provided to DG, it is equally important to understand how DG currently and as an evolving technology provides benefits to the grid. As technology continues to advance, these benefits can expand. These benefits can include support for resiliency, shelter and dispatchability. These panelists will discuss examples of how DG has been used today to enhance the grid and what some of the future applications of DG to the grid might be.