
The flow chart suggests accessing demand-response resources to combine large-scale variable generation is likely to require additional changes in market rules and regulatory policies.
A recent Berkeley Lab report: “Mass Market Demand Response and Variable Generation Integration Issues: A Scoping Study.” The penetration of renewable generation technology is expected to increase in the U.S. during the next decade as many states implement policies to expand this sector (e.g., RPS). However, large-scale deployment of certain renewable energy sources (i.e., wind, solar), because of its variable characteristics, poses integration challenges for bulk power system operators. Proponents of Smart Grid (of which Advanced Metering Infrastructure (AMI) is an integral component) assert that system-wide implementation of advanced metering enables a significant increase in demand response capability which could help facilitate the integration of variable generation resources in the bulk power system.
This scoping study focuses on a key question posed by policymakers: what role could smart grid (and AMI) play over the next 5 to 10 years in helping apply variable generation resources by providing mass-market customers with greater access to demand response opportunities? In terms of approach, the authors identify:
- Key issues associated with integrating large amounts of variable generation into the bulk power system
- Demand response opportunities made more readily available to mass-market customers through widespread deployment of AMI systems and how they can affect the bulk power system
- Assess the extent to which these mass market, demand-response (DR) opportunities could manage variable generation (VG) integration issues in the near-term and what electricity market structures and regulatory practices could be changed to further expand the ability for DR to manage VG integration issues over the long term; and
- Provide a qualitative comparison of proposed and existing strategies and approaches to manage VG integration issues relative to DR opportunities.
Key study findings include:
- The largest variability and uncertainty in renewable generation power production is from wind and solar resources over time periods of 1 to12 hours; time scales that are in synch with the operation of most demand response opportunities for mass market customers.
- Among time-based rates, real-time pricing coupled with automation and control technology has most potential for managing several variable generation integration issues, although the current lack of regulatory and stakeholder support is a key challenge.
- Incentive-based design response programs have significant potential to manage many variable generation and integration issues if residential customers are willing to participate in programs that feature short duration and frequent DR events. Program designs that let load aggregators participate and customer acceptance of control, or automation technology, or both are key factors that will determine the efficacy of these programs in managing variable-generation integration issues.
Accessing demand-response resources to combine large-scale variable generation is likely to require additional changes in market rules and regulatory policies. For example, many jurisdictions may need to consider modifying existing retail market tariffs so utilities or ARCs can treat customers as a portfolio of resources that can be differentially dispatched. Wholesale market product definitions may be expanded, or market operations may need restructuring so demand offered and demand response can be paid for.
System operators and policymakers should give serious consideration to demand response as a way to combine large scale, variable-generation resources. The report presentation that summarizes the authors (Peter Cappers, Andrew Mills, Charles Goldman, Ryan Wiser, and Joseph H. Eto) approach and key findings can be downloaded from:
http://eetd.lbl.gov/ea/ems/sg-pubs.html
Berkeley Labs
http://www.eetd.lbl.gov/ea/ems/sg-pubs.html
Filed Under: News, Policy