WIXLIB

Distributed EnergyResources andElectric ReliabilityMaury GalbraithExecutive DirectorWestern Interstate Energy BoardEnergy Risk and Critical Infrastructure WorkshopNCSL and NARUCDenver, COMay 25, 2016

Outline Drivers of DER Deployment Barriers to DER Deployment Key Reliability Challenges Advanced (or “Smart”) Inverters2

DER Drivers State (and Federal) Incentives and Mandates Customer Choice: Environmental EthicsDeclining Costs of Solar PVCompensation at Retail RatesFinancial Options Market-driven deployment of DER is expectedto reach 17,900 MW (10.5% of WesternInterconnection Peak Demand) by 20263

DER PoliciesPolicies aimed at encouragingrooftop PV in the WestFederalColoradoCaliforniaFHA PowerSaver Loan ProgramUSDA - High Energy Cost Grant ProgramEnergy-Efficient MortgagesBlack Hills Energy - Solar Power ProgramBoulder County - Elevations Energy LoansBuilding Energy CodeInterconnection Standards for Small GeneratorsCity and County of Denver - Elevations Energy LoansBear Valley Electric Service - Solar Initiative ProgramBuilding Energy CodeCity and County of Denver - Solar Panel PermittingCity of Aspen and Pitkin County - Renewable Energy MitigationProgramCity of Boulder - EnergySmart Commercial Energy EfficiencyRebate ProgramBurbank Water & Power - Green Building Incentive ProgramBurbank Water and Power - Residential and Commercial SolarSupport ProgramCalifornia Enterprise Development Authority (Figtree PACE) Statewide PACE ProgramCalifornia Solar Initiative - Multi-Family Affordable Solar Housing(MASH) ProgramCalifornia Solar Initiative - PV IncentivesCalifornia Solar Initiative - Single-Family Affordable SolarHousing (SASH) ProgramCaliforniaFIRSTCEC - New Solar Homes PartnershipCity of Healdsburg - PV Incentive ProgramResidential Energy Conservation Subsidy Exclusion (Corporate)Residential Energy Conservation Subsidy Exclusion (Personal)Residential Renewable Energy Tax CreditArizonaEnergy Equipment Property Tax ExemptionSolar RightsNet MeteringSulphur Springs Valley EC - SunWatts Rebate ProgramDuncan Valley Electric Cooperative - SunWatts Rebate ProgramMohave Electric Cooperative - Renewable Energy IncentiveProgramResidential Solar and Wind Energy Systems Tax CreditSRP - Net MeteringCity of Tucson - Solar Design Requirement for HomesTown of Buckeye - Green Building IncentiveSolar Construction Permitting StandardsCity of Scottsdale - Green Building IncentivesInterconnection GuidelinesSolar and Wind Equipment Sales Tax ExemptionSolar & Wind Equipment CertificationMaricopa Assn. of Governments - PV and Solar Domestic WaterHeating Permitting StandardsMaricopa County - Renewable Energy Systems Zoning OrdinanceIdahoAvista Utilities - Net MeteringIdaho Power - Net MeteringLow-Interest Energy Loan ProgramsResidential Alternative Energy Tax DeductionRocky Mountain Power - Net MeteringSolar EasementsMontanaAlternative Energy Revolving Loan ProgramInterconnection StandardsMontana Electric Cooperatives - Net MeteringNet MeteringCity of Boulder - Green Points Building ProgramCity of Boulder - Solar Access OrdinanceCity of Boulder - Solar Grant ProgramCity of Boulder - Solar Sales and Use Tax RebateColorado Springs Utilities - Renewable Energy Rebate ProgramEagle County - Energy Smart Colorado Renewable Energy RebateProgramEagle, Garfield, Gunnison, Lake, and Pitkin Counties - EnergySmart Colorado Loan ProgramEnergy Savings Mortgage Incentive for Existing HomesAnaheim Public Utilities - PV Buydown ProgramCity of Lancaster - Mandatory Solar Requirement for New HomesCity of Lompoc Utilities - PV Rebate ProgramCity of Los Angeles - Zoning CodeCity of San Diego - Sustainable Building Expedited PermitProgramCity of San Diego - Sustainable Building PolicyCity of San Francisco - Green Building CodeCity of San Francisco - GreenFinanceSFCity of San Francisco - Solar Energy Incentive ProgramCity of Santa Cruz - Solar Access OrdinanceFort Collins Utilities - Home Efficiency Loan ProgramCity of Sebastopol - Mandatory Solar Requirement forResidential and Commercial BuildingsHoly Cross Energy - Renewable Energy Rebate ProgramInterconnection StandardsLa Plata Electric Association - Renewable Generation RebateProgramLake County - Energy Smart Colorado Renewable Energy RebateProgramCity of Shasta Lake Electric Utility - PV Rebate ProgramCorona Department of Water & Power - Solar Partnership RebateProgramLocal Option - Improvement Districts for Energy Efficiency andRenewable Energy ImprovementsLocal Option - Property Tax Exemption for Renewable EnergySystemsLocal Option - Sales and Use Tax Exemption for RenewableEnergy SystemsNet MeteringHomebuyer Solar Option and Solar Offset ProgramIID Energy - PV Solutions Rebate ProgramInterconnection StandardsLADWP - Feed-in Tariff (FiT) ProgramLADWP - Net MeteringLADWP - Solar Incentive ProgramLassen Municipal Utility District - PV Rebate ProgramLodi Electric Utility - PV Rebate ProgramLos Angeles County - Green Building ProgramMarin Clean Energy - Feed-In TariffSales and Use Tax Exemption for Renewable Energy EquipmentSan Miguel Power Association - Renewable Energy RebateProgramSolar Construction Permitting StandardsModesto Irrigation District - Photovoltaic Rebate ProgramMoreno Valley Electric Utility - Solar Electric Incentive ProgramNet MeteringResidential Alternative Energy System Tax CreditSolar and Wind EasementsUniversal System Benefits ProgramAshland Electric - Net MeteringEl Paso Electric Company - Small and Medium System RenewableEnergy Certificate Purchase ProgramFarmington Electric Utility System - Net MeteringInterconnection StandardsLocal Option - Renewable Energy Financing District/Solar EnergyImprovement Special AssessmentsNet MeteringPNM - Performance-Based Solar PV ProgramProperty Tax Exemption for Residential Solar SystemsSolar Easements & Rights LawsSolar Energy Gross Receipts Tax DeductionSolar Market Development Tax CreditSolar/Wind Construction Permitting StandardsSustainable Building Tax Credit (Corporate)Sustainable Building Tax Credit (Personal)Xcel Energy - Solar*Rewards ProgramNevadaClark County - Solar and Wind Building Permit GuidesInterconnection StandardsNet MeteringNV Energy - RenewableGenerations Rebate ProgramPortfolio Energy CreditsProperty Tax Abatement for Green BuildingsSolar and Wind Easements & Rights LawsValley Electric Association - Net MeteringUtahCity of St. George - Net MeteringCommercial PACE FinancingInterconnection StandardsMurray City Power - Net Metering Pilot ProgramNet MeteringAshland Electric Utility - Photovoltaic Rebate ProgramBuilding Energy CodeCentral Lincoln People's Utility District - Renewable EnergyIncentive ProgramCentral Lincoln People's Utility District - Residential EnergyEfficiency Rebate ProgramsCity of Ashland - Solar Rights OrdinanceCity of Eugene - Solar StandardsCity of Portland - Green Building Policy and LEED CertificationCity of Portland - Streamlined Building Permits for ResidentialSolar SystemsCommercial Energy Efficiency Rebate for Existing BuildingsConsumers Power, Inc. - Solar Energy System RebateEmerald PUD - Solar Electric ProgramEnergy Trust of OregonEWEB - Net MeteringEWEB - Solar Electric Program (Rebate)Interconnection StandardsLane Electric Cooperative - Residential Efficiency RebateProgramLane Electric Cooperative - Residential Energy Efficiency LoanProgramsModel Ordinance for Renewable Energy ProjectsNet MeteringNew Homes Incentive ProgramPGE Renewable Development FundRenewable Energy Systems ExemptionResidential Energy Tax CreditSalem Electric - Photovoltaic Rebate ProgramSolar and Wind Easements & Rights Laws & Local Option SolarRights LawSolar Electric Incentive ProgramSolar Permitting LawSolar Volumetric Incentive and Payments ProgramState Energy Loan ProgramProperty Tax Exclusion for Solar Energy SystemsRenewable Energy Systems Tax Credit (Corporate)WashingtonPublic Benefits Funds for Renewables and EfficiencyRenewable Market Adjusting Tariff (ReMAT)Renewable Energy Systems Tax Credit (Personal)Chelan County PUD - Sustainable Natural Alternative PowerProducers ProgramPasadena Water and Power - Solar Power Installation RebatePG&E - California Advanced Homes IncentivesPlumas-Sierra REC - PV Rebate ProgramSolar, Wind, and Energy Efficiency Easements and Rights LawsUnited Power - Renewable Energy Rebate ProgramXcel Energy - Solar*Rewards Community ProgramXcel Energy - Solar*Rewards ProgramRiverside Public Utilities - Residential PV Incentive ProgramRoseville Electric - Residential New Construction RebateProgramRoseville Electric - Solar Rebate ProgramSan Diego County - Green Building ProgramSan Diego County - Solar RegulationsSanta Clara County - Zoning OrdinanceSCE - California Advanced Homes IncentivesSDG&E - California Advanced Homes IncentivesNorthWestern Energy - USB Renewable Energy FundRenewable Energy Systems ExemptionOregonCity of Albuquerque - Solar Easements and Rights LawsGlendale Water and Power - Solar Solutions ProgramMerced Irrigation District - PV Buydown ProgramProperty Tax Exemption for Community Solar GardensProperty Tax Exemption for Residential Renewable EnergyEquipmentRoaring Fork Valley - Energy Smart Colorado Renewable EnergyRebate ProgramNew MexicoAzusa Light & Water - Solar Partnership ProgramSilicon Valley Power - Solar Electric Buy Down ProgramSMUD - PV Residential Retrofit Buy-DownSoCalGas - California Advanced Homes IncentivesSolar Construction Permitting StandardsSolar Easement and the Solar Shade Control ActSolar Rights ActSonoma County - Energy Independence ProgramTruckee Donner PUD - Photovoltaic Buy Down ProgramTurlock Irrigation District - PV RebateUkiah Utilities - PV Buydown ProgramWestern Riverside Council of Governments - Home EnergyRenovation Opportunity (HERO) Financing ProgramRocky Mountain Power - Solar Incentive ProgramSalt Lake City - High Performance Buildings RequirementSolar Easements & Local Option Solar Rights LawsWashington City Power - Net MeteringWyomingClark Public Utilities - Solar Energy Equipment LoanEvergreen Sustainable Development Standard for AffordableHousingGrays Harbor PUD - Net MeteringInterconnection StandardsNet MeteringOkanogan PUD - Conservation Loan Program4Orcas Power & Light - MORE Green Power ProgramRenewable Energy Cost Recovery Incentive PaymentInterconnection GuidelinesNet MeteringRenewable Energy Sales and Use Tax ExemptionResidential Solar Permit RequirementsSnohomish County PUD No 1 - Solar Express Rebate ProgramSolar Easements & Rights LawsWSHFC Sustainable Energy Program5

Barriers to Deployment Ratemaking Equity Issues Utility Fixed Cost Recovery Cost Shifts to Non-participants Compensation for DER Benefits Avoided Distribution InvestmentAvoided Transmission InvestmentAvoided Generation InvestmentAvoided GHG emissions Reliability Issues Simultaneous Tripping Frequency/Inertial Response Balancing/Ramping Requirements5

Key Reliability Challenges Simultaneous Tripping: Small deviations in frequencyand voltage can result in the tripping of a largenumber of solar PV systems. This can turn a smallcontingency into a large contingency. Frequency Response: High-penetrations of inverterbased generation may result in insufficient inertial andprimary frequency response. Intermittency: Diurnal pattern of solar PV generationcreates operating challenges for the dispatchablegeneration fleet (e.g. CA “duck curve”).6

Advanced CapabilitiesMandatory functions for all new inverter-basedsystems in California (most required in Hawaii,too):1.2.3.4.5.6.7.Anti-islandingFrequency Ride-throughVoltage Ride-throughRamp Rate LimitsSoft Start RampingAdjustable Fixed Power FactorReactive Power Support7