Open Power for a Brighter Future: Energy Solutions for an Evolving World Contents
Total Page:16
File Type:pdf, Size:1020Kb
Open Power for a Brighter Future: Energy Solutions for an Evolving World Contents Power Flexibility 3 Sustainability, Renewables and EVs 21 Getting Started 35 Grid operators, utilities and governments are rewarding businesses and residents who can be flexible in their energy use. Discover: Why flexibility is needed Power Flexibility: Flexibility in action Programs for every asset and every market The business case for flexibility How to Make Working with Enel X Money with Your Energy Assets Power Flexibility Power Why grids The Duck Curve A real-world illustration of renewables on the grid 6 need energy In areas with high levels of renewable energy produce little energy, non-renewable resources generation, such as California, the “duck curve” must quickly ramp up production to match demand. demonstrates the challenges for grid operators. Solar generation runs during daylight hours, while wind This mismatch between available renewable energy flexibility generation typically peaks in the middle of the night. supply and routine demand presents a major challenge But in the early evening, when both solar and wind to utilities and grid operators. Renewable energy now makes up nearly 20% Flexibility Assets of total electricity consumption in the United States, up more than 50% over the past decade, California’s Net Load with over 80% of new generating capacity in 2021. Continued growth of renewables is critical to win the fight against climate change, but there are challenges that come with the grid’s transformation. Fan Generator EV Charging 2012 Renewables, like solar and wind, produce electricity according to the weather, creating complexity to balancing energy supply and 2013 demand during extreme weather events. Energy professionals refer to this weather-dependency Pump Battery and generation variability as intermittency. 2014 With more intermittency due to an increase in renewables, flexibility amongst end users is now even more crucial to electric grid operators and utilities. As such, there are rewards for those who can provide flexibility to the grid and adjust their energy use to ensure supply matches demand. HVAC 2020 Source: CAISO 12am 6am 12pm 6pm 12am Power Flexibility Power Grid operators use a variety of price signals and programs to Flexibility in action cut down on the maximum demand. Here are a few examples: 8 Utilities, grid operators and states encourage flexibility in energy use in a variety of ways, many of which motivate businesses and consumers to change the times they use energy. 5 PM 6 PM 9 PM These include: Below is a chart of user demand for energy on a typical mid-summer day in nearly any American region. Incentives for assets like storage and electric Demand for energy is highest around late afternoon, vehicle smart charging infrastructure as the temperatures reach their daily maximum and Demand response (DR) Demand management Energy storage and smart Price signals that make energy expensive individuals return home, plugging in their electric vehicle, A few times each year at times Commercial and industrial charging infrastructure when region-wide demand is high or turning on their heating or cooling equipment. On of extremely high demand, grid energy bills don’t just depend on Businesses can benefit from particularly high-demand electricity days, grids are operators use demand response how much energy is used—they Programs that offer payments to use less energy storage in a variety of ways. pushed to the limit to meet peak demand. to lower system demand. DR is also depend on when energy is at peak times Facilities with on-site energy an incentive program to ensure used. Consuming energy during storage resources can automa- grid stability when there is danger the hours when grid demand is tically store electricity when it of an outage. In DR, commercial greatest leads to high demand is least expensive and consume and industrial companies agree charges, which can make up it when costs from the grid are Electric Load Curve in advance to voluntarily curtail more than half of an energy bill. most expensive—here, at 9 PM, electricity consumption if reques- Similarly, more utilities are now prices are low when demand is New England, 10/22/2010 ted, and receive payments for that seeking demand charges for their low, and businesses can charge 20 GW commitment. Similarly, residents residential customer base to send their batteries now for later use. hourly peak demand that drive electric vehicles can also more transparent pricing signals Enel X maximizes storage value participate in demand response of the enormous and largely fixed with DER.OS, distributed energy events through their utility costs required to meet peak grid resource optimization software program or Enel X’s JuicePoints demand. Customers can realize that predicts system peaks and 15 GW program, which rewards drivers significant savings by shifting analyzes grid conditions to opti- for plugging in and being flexible non-essential energy to hours mize batteries and other energy regarding when their car will of low demand. assets across value streams. morning ramp charge overnight. Likewise EV drivers, who typically charge at home, can also use 10 GW electricity when it’s least expensive AM PM AM to consume and schedule charging or enroll in a time-varying rate. 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Power Flexibility Power Alberta – AESO Operating Reserves A Look at programs, Consumers Energy – Consumers DR Ontario 10 assets, and markets – IESO DR Auction – GA Management New York – NYISO SCR Every state and energy market across the Nationwide – CSRP United States and Canada offers a different The U.S. Federal Tax Credit offers up to $7,500 in – DLRP variety of incentive programs. But all of them rebates for EVs and up to $1,000 in rebates for an New England EV charging station. Additionally, local governments offer major savings and revenue-generating – ISO-NE DR opportunities for energy consumers who and utilities also offer smart EV charging incentives, – Utility DR know how to access them. On this map, we which are available in nearly every state. – ISO-NE ICAP Management The U.S. Solar Investment Tax Credit offers a 26% highlight just a few examples of programs PJM Interconnection from around the country. investment tax credit for solar and solar + storage. – PJM ELRP Canada also offers similar infrastructure incentives. – PJM Economic DR – PJM Sync Reserve Market – Pennsylvania Act 129 – Indiana & Michigan DR California PJM Ontario Massachusetts Self-Generation Incentive Capacity Payments Global Adjustment (GA) Daily Dispatch Louisville Gas & Electric Program (SGIP) and Synchronized charge mitigation through and Kentucky Utilities In Massachusetts, utilities – Commercial Demand Reserve Market peak shaving or storage In California, the Self- will pay businesses that Conservation Program Generation Incentive PJM offers payments to Global Adjustment (GA) lower their load and run Program (SGIP) provides customers who curtail is a monthly charge on off battery during the Salt River Project Tennessee Valley – Large Commercial and Authority rebates to customers energy during times of electricity bills for large busiest hours of the Industrial DR – TVA-Enel X DR who install energy grid stress. Customers energy users in Ontario— summer. Not only that, Texas storage technology, like can pair multiple DR up to 70% of the bill for businesses with intercon- California – ERCOT Emergency Florida Tampa Electric batteries. California’s grid programs together to some. If customers can nection agreements can – DRAM Response Service Company has been troubled by boost earnings. Over the anticipate when system send what they aren’t – Time-of-Use BIP – ERCOT Load Reserves – TECO Networked DR weather-related outages past two years, Enel X has peaks will occur, they can using back into the grid. – Utility Commercial Load Ameren Missouri Management in recent years, and distributed nearly $175M significantly reduce GA The program pays up to – Business DR Program – 4CP Management SGIP helps to encourage in DR payments to PJM charges by reducing load $200,000 per MW every local resiliency for many customers, averaging at those times and save summer. Rocky Mountain Power businesses. $30k-$70k/MW curtailed hundreds of thousands of – Irrigation Load Control in each dispatch. dollars per MW annually. Program Power Flexibility Power Industry solutions The value of power flexibility 12 Enel X helps companies with energy management Key drivers solutions across a variety of industries We began managing energy programs two decades ago, and we’ve Solar growth expanded into regions across the United States and throughout the world The share of solar power on the grid will since then. Our experience spans across programs, markets, and assets, continue to increase, with its rated capacity and our regulatory expertise ensures we protect your current revenues— more than doubling to meet 100% of and help to create more in the future. average demand by 2024 (BloombergNEF) Market reforms New rules will allow increased ability for flexibility to earn revenue by supporting Data Centers Industrial Hospitals Retail Education the electricity grid Power plant retirements Aging coal plants will go offline, increasing the need for new resources like power flexibility Agriculture Cold Storage Water Utilities EV Fleets Workplaces Decreasing technology costs Declining costs for enabling technologies like internet of things (IOT) and battery storage will expand what flexibility can do Commercial Hotels & Events & Cities & Multifamily Real Estate Restaurants Stadiums Municipalities Dwellings Power Flexibility Power Working with Enel X 170,000+ EV charging stations sold globally Many energy users don’t realize how these assets and programs 14 naturally fit together. Many consumers understand the benefits of We have the a battery—but they don’t know how to use that battery to access incentives and other revenue streams, and how to combine batteries, experience to help 6.3 GW solar, demand response and smart EV charging to maximize revenue.