Opportunities and Challenges to Capturing Distributed Battery Value via Retail Utility Rates and Programs

Abstract

Opportunities and Barriers for Capturing Distributed Battery System Value via Retail Utility Rates and Programs │v communications and controls could influence how a utility may regard these tradeoffs and, consequently, which rate designs they may promote.In contrast to retail rates, incentive-based utility programs allow distributed batteries and other DERs to provide direct services to the grid. Typically, these have encompassed demand response (DR) resources focused primarily on load shedding or shifting for bulk system-level services. However, over the past few years, utilities have begun to expand their offerings to include non-wires alternatives (NWAs) that provide location-specific transmission and distribution (T&D) relief and infrastructure deferral. Even more recently, virtual power plants (VPPs) that include automated controls, communication, and aggregation of multiple DERs have emerged to provide a portfolio of bulk system and/or distribution level services consistent with traditional supply-side generators. Each program has its own required level of controls and communication. Simpler programs may only require day ahead notification and manual controls while programs with more dynamic pricing and dispatch require more advanced communication and controls. Utilities may decide what types of programs and level of control and communication are necessary depending on the value of services, communication and controls in place, and DER penetration. Consequently, as with utility rate design, there are various tradeoffs between more complex programs with real time control versus cost and feasibility surrounding challenges with compensation, data management, and more. While most current programs are fairly simple, as penetration of DER and advanced controls increase alongside a better understanding of program implementation, more dynamic, automated programs could become prevalent.Opportunities and Barriers for Capturing Distributed Battery System Value via Retail Utility Rates and Programs │viii operate in order to, at a minimum, ensure no adverse grid impacts, but more proactively encourage provision of societal and grid value beyond the customer domain.

Aprimoramento do marco regulatório do setor elétrico brasileiro frente à abertura do mercado livre para todos os consumidores: uma proposta de transição para o futuro.

“…Em 2020, nos Estados Unidos, aproximadamente 12 milhões de consumidores optaram pela tarifação dinâmica [24] -isso representa, apenas, 9,5% do total de consumidores do segmento comercial e 5,9% do segmento residencial [21].…”