Technical Advisory Panel - Hawaiian Electric · 9/25/2018 · Stakeholder Engagement Model Reference: Integrated Grid Planning Report, Figure 4, page 16 Adapt successful elements

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Integrated Grid Planning Technical Advisory Panel

September 25-26, 2018

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Agenda – September 25, 2016 1:00-2:00p IGP Process & Critical Planning Issues Discussion 2:00-2:15p Break 2:15-3:15p Discussion of IGP Stakeholder Engagement 3:15-4:15p Distribution Planning Review 4:15-4:30p Summary of Key Takeaways

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Integrated Grid Planning

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What is Integrated Grid Planning (IGP)? Integrated Grid Planning

– Integrates planning analysis for resources, transmission and distribution to ensure the net requirements for the system are transparently identified & optimized

– Integrates market-sourced alternatives into the analysis instead of relying on theoretical price/cost assumptions

– Integrates stakeholders’ input and feedback into the overall process

Results in better value for customers

Creates greater market opportunities for developers & aggregators

https://www.hawaiianelectric.com/Documents/about_us/our_commitment/20180301_IGP_final_report.pdf



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PSIP System Planning & Solution Sourcing Processes

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Why Change?

Stakeholder Feedback Need to create value for all customers Need for integrated analysis Need market based alternatives to evaluate Technology neutral Need for portfolio optimization Utility plans must address broader utility capital program

Challenges Not sustainable to ensure customer value Serial not integrated analysis Stacked values – not optimized Avoided proxy cost vs competitive bid prices Stakeholder tendency to debate the theoretical Complexity & contentious process

“The absence of such unified valuation [integrated planning] has the real potential to create market inefficiencies and inconsistent assessment of resource selection.” PUC DR D&O p. 96

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1st Draft Integrated Grid Planning Cycle

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2nd Draft Revised Integrated Grid Planning Process

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Final IGP Process (v3)

Reference: Integrated Grid Planning Report, Figure 3, page 14

Designed to Enable Convergent Outcomes

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IGP & Solution Sourcing Process

Solution Evaluation (Resource Planning)

Identify System Needs

(Resource, Transmission &

Distribution Planning)

Procurement of Resources

Identify T&D Needs

(Transmission & Distribution

Planning)

T&D Solution Sourcing Financial

Model

File IGP and Related

Applications

Inputs, Forecasts,

and Assumptions

SYSTEM NEEDS IDENTIFICATION Engineering analysis to determine optimal energy needs to meet policy goals and system reliability. Includes generation, transmission, and distribution needs.

SOLUTION SOURCING Identification of least cost, best fit solution options to fulfill grid needs through the establishment of a marketplace through procurements, pricing, and programs.

SOLUTION OPTIMIZATION Evaluation and optimization of resource and transmission and distribution solutions acquired through marketplace. Includes an optimized 5-year grid plan.

COMMISSION REVIEW OF PLAN Seek commission approval of 5-year plan with discrete investments, programs, and pricing proposals.

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IGP Development Issues to Address

Process Development • Integration of resource,

transmission & distribution analyses • Timing alignment & other? • Modeling & tool gaps?

Assumptions • Forecast uncertainty • Policy goals (i.e.,

resiliency, RE, EE)

Procurement Process • Streamlining the process • 2-step Procurement • Integration with planning

analysis • Integrated solution evaluation

Solution Optimization • Define optimization • Optimize around what

objective(s)? • What methods/model(s)

to use?

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Break

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Stakeholder Engagement

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Stakeholder Council

Technical Advisory Panel Working Groups Broad Public

Engagement

Individual Stakeholder Engagement

Input & Feedback Education & Information

Hawaiian Electric Companies IGP Process

Stakeholder Engagement Model

Reference: Integrated Grid Planning Report, Figure 4, page 16

Adapt successful elements from what has worked in Hawaii and other states based on stakeholder input/feedback

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Purpose: The Council helps ensure alignment of Hawaiian Electric’s grid plans with customer and stakeholder interests and facilitates the development of broadly supportive action plans.

Objectives: • Provide strategic input and feedback on IGP process development, activities and

results, and aspects for improvement. • Discuss priority issues that may benefit from a subject matter expert–based

working group to address tactical and technical issues. • Foster collegial, balanced discussion to achieve shared understanding of issues to

address in IGP, planning results, and to build common ground through iterative discussion and feedback.

Stakeholder Council Purpose & Objectives

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Stakeholder Name Affiliation

1 HPUC Dave Parsons Chief of Policy & Research

2 Consumer Advocate Dean Nishina Executive Director, Division of Consumer Advocacy

3 DBEDT Carilyn Shon Hawai‘i State Energy Office, Energy Administrator

4 Office of State Planning Leo Asuncion Director, Office of Planning

5 DOD Keith Yamanaka USAG-HI, Directorate of Public Works

6 Large CI&I Customer Barry Usagawa Board of Water Supply

7 Community Delegate (Hawaii) Jason Fujimoto President & CEO of HPM Building Supply

8 Community Delegate (Maui) Alex de Roode County of Maui Dept. of Water Supply

9 Community Delegate (Moloka‘i) Barbara Haliniak Owner, The Business Depot, Inc.

10 Community Delegate (Lana‘i) Alberta DeJetley Publisher and editor of Lana‘i Today newspaper

11 Community Delegate (O'ahu) Pono Shim President & CEO at O‘ahu Economic Development Board

Invited Stakeholder Council Members

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Stakeholder Name Affiliation

12 Local Gov’t (Hawaii) Ron Whitmore County of Hawai‘i Deputy Director, Dept. of R&D

13 Local Gov’t (Maui) Fred Redell County of Maui Energy Commissioner

14 Local Gov’t (O'ahu) Joshua Stanbro County of Honolulu, Executive Director & Chief Resilience Officer

15 Sustainability Advocate (Local) Kyle Datta Ulupono Initiative

16 Sustainability Advocate (National) Merrian Borgeson Natural Resources Defense Council (NRDC)

17 Small Solar Leslie Cole-Brooks DERC

18 Storage Paul Karaffa Sales Engineer, Fluence

19 Demand Response Yvette Maskrey Honeywell

20 Energy Efficiency Brian Kealoha Hawaii Energy

21 Electric Vehicles Melissa Miyashiro Blue Planet

22 Environmental Advocate Henry Curtis Life of the Land

23 IPP (utility-scale resource) tbd tbd

Invited Stakeholder Council Members

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Kick-off Meeting

Initial SC Meeting Schedule (proposed)

Stakeholder Council

Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2018 2019

Aug

Aug 30

Aug Sep Oct Dec Jan Feb Mar Apr May Jun 2019 2020

Jul Nov

Aug Sep Oct Dec Jan Feb Mar Apr May Jun 2020 2021

Jul Nov

~14 hours quarterly (i.e., in-person meeting, meeting preparations, stakeholder engagement, etc.)

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Purpose Technical Advisory Panel (“TAP”) will leverage global insights and relevant experience drawn from research, market operators and utilities to provide independent technical input and guidance in support of IGP’s first of its kind integrated planning development and analysis.

Objectives • An independent standing peer group consisting of representatives from organizations with

internationally recognized competence in IGP related processes, methodologies and technologies.

• Provide an independent peer assessment, including input and feedback, of the IGP development process, methodologies, tools, and results.

• Foster collegial, balanced discussion in order to achieve greater shared understanding of technical issues to address in IGP for Hawai`i and that may be applicable elsewhere.

Technical Advisory Panel Purpose & Objectives

Reference: June 6, 2018 Kick-off Webinar

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Public & Individual Stakeholder Engagement

Public Engagement

1st Public Educational Session – September 25th

Periodically engage public in-person or via webinars to share progress updates and results to improve transparency

Solicit input from Customers as part of initial step in cyclical IGP process

IGP Website will post planning documents and provide calendar of meetings and related meeting summaries & webinar recordings

Individual Engagement

Periodically engage a individual stakeholders for input and feedback to support IGP process and evolutionary development, for example:

– Input assumptions for forecasting

– Process improvement and roadmap development

Reference: Integrated Grid Planning Report, Appendix A, page 4

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Working Groups Working groups to be formed as needed on specific topics for only as long as needed to address specific issues

Groups to be representative, as with stakeholder committee, focus on participation with subject matter knowledge

Designed to address need for balanced representation and create positive, efficient group dynamic

Working group meetings to have webinar to enable transparency and wider virtual participation

Knowledgeable, neutral facilitator required

Charter to define purpose, objectives, roles and ground rules – Identify issues & concerns clearly – Educate as needed to reduce misunderstanding – Strive to reduce the number of contentious issues – Identify common ground where possible

Initial 2018-19 working groups

• Forecast Assumptions

Market Based Inputs

Stakeholder Sourced Inputs

Sensitivities

• Competitive Procurement

Standardized Contract

Define additional grid services

Streamline competitive procurement process

Reference: Integrated Grid Planning Report, Appendix A, pages 3-4

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Distribution Planning Review

Slide 1 Date Modified: 9/25/2018

Integrated Grid Planning Distribution Planning Process

Technical Advisory Panel Kick-off Meeting

September 25, 2018


Agenda

Background Distribution Planning Responsibilities Current Distribution Planning – Load Projections – Area/System Reviews – IRS – Hosting Capacity

Future Distribution Planning Improvements – Future Hosting Capacity – Integrated Grid Planning

Questions


The Hawaiian Electric Companies 3 Electric Utilities, 5 Separate Grids

Kauai

Oahu

Molokai Maui

Hawaii

Maui Electric Serves islands of Maui, Molokai, and Lanai Customers: 71,769 Generating capability: 284 MW Peak Load (Maui): 190 MW

Hawaii Electric Light Serves island of Hawaii Customers: 84,000 Generating capability: 293 MW Peak Load: 190 MW

Hawaiian Electric Serves island of Oahu Customers: 305,000 Generating capability: 1,756 MW Peak Load: 1,184 MW


PV Penetration

Number of PV Systems PV Capacity, MW

Number % Residential

% Commercial Capacity %

Residential %

Commercial

Hawaiian Electric 51,828 96% 4% 519 54% 46%

Hawaii Electric Light 12,192 94% 6% 93 65% 35%

Maui Electric 12,265 92% 8% 110 60% 40%

TOTAL 78,285 721

* As of June 30, 2018


Distribution System

“Distribution System”


Distribution Planning’s Scope of Work

Not involved in generation or transmission line issues However, involved with all other parts of the electrical system – Planning and justifying new transmission and distribution

substations or transformer additions to existing substations

– Planning and justifying new circuits, upgrades to existing circuits, and rearrangement of existing circuits

– Planning and analysis of renewable generation systems connecting to the subtransmission and distribution system (including secondary, low voltage systems)


Distribution Planning has two core functions

(1) Plan the orderly expansion of the Distribution system to serve new electrical load – “traditional” process required to provide power to customers

Transformer

HECO

Power Flow


Second core function…

(2) Safely interconnect DER (PV, DR, EV, ESS, etc.) while maintaining power quality and reliability for all customers – relatively new process required to accept power from customers

Transformer

HECO

Power Flow


Current Distribution Planning


Traditional Planning Process – Provide Power to Customers

Phase 1 Phase 3 Phase 2

Prior Year Current Year


Data used for Load Projections Prior year actual load data from distribution substation transformers and circuits are analyzed to determine the peak loading Holdoff and interruption report information is also used to determine the peak loading Most of the data is managed and maintained by SysOp

PEAK


Area / System Reviews

Area reviews are done for both the distribution and subtransmission systems A thermal overload condition may potentially cause damage to our equipment which may lead to long, extended service interruptions to our customers Systems reviewed for both normal and emergency conditions


Normal Operating Condition Example

The distribution equipment (transformer and line) must be able to handle the normal electrical load

SUB 1

LINE 2

LINE 1

Commercial Residential

Residential

Commercial

Open

LINE 3

SUB 2


Normal Operating Condition (with DER)

The distribution equipment (transformer and line) must be also be able to handle the backflow of generation from PV during the daytime

SUB 1

LINE 2

LINE 1


Residential

Commercial

Open

LINE 3

SUB 2


Backup/Emergency Operating Condition Example

The distribution equipment (transformer and line) must be able to backup adjacent line customers SUB 1 and LINE 1 will serve more electrical load than normal in this emergency situation

SUB 1

LINE 2

LINE 1


Residential Close

Commercial

Open

LINE 3

SUB 2

Fault


Emergency Operating Condition (with DER)

The distribution equipment (transformer and line) must be able to backup adjacent line customers with PV during the daytime.

SUB 1

LINE 2

LINE 1


Residential

Close

Commercial

Open

LINE 3

SUB 2

Fault


Circuit Modeling Circuit Voltage Profile and Thermal Loading

Good

Violation

Violation


Secondary Review (with DER)

Potential Overvoltage or Thermal overload

LINE 1

Residential

Residential Residential

Residential

Voltage


“Day to Day” Planning Work Provide feedback on customer service requests and requests from the engineering and operating areas Initiate projects to solve overloading and voltage problems (i.e., new transformers or feeders, circuit upgrades, cap banks, etc.) Review interconnection proposals on the subtransmission and distribution systems Hosting Capacity studies Long range area studies


Interconnection Requirements Study (IRS)

Computer tools such as SynerGI®, PSSE, and PSCAD are used to model distribution circuits to conduct interconnection studies

Reverse Power Flows Voltage Regulation Voltage Flicker Ride-Through

Ground-Fault Overvoltage

Load Rejection In-Rush Current


Hosting Capacity

Determine capability of distribution circuits to add rooftop PV. Model circuits based on daytime minimum loading with existing PV. Add/scale PVs to circuits until voltage or thermal violation occurs.


Long Range Study Example


Distribution Planning (with DER)

Traditional Planning (No DER) Current Planning (With DER)

Subtransmission & Distribution Voltage Levels

Subtransmission, Distribution, and Secondary Voltage Levels

Primarily concerned with thermal overloading and undervoltage

Concerned with thermal overloading, undervoltage, overvoltage, and dynamic power quality impacts

Analytical techniques and equipment specified have been used for 40+ years

Studying equipment and customer assets that are constantly evolving

Studies look forward 5-10 years Studies look at events that happen within fractions of a second

Desktop computing and SynerGI® modeling tools are utilized for studies

Advanced computer modeling tools are utilized for the studies (PSSE, PSCAD)

Hosting Capacity Analyses


Future Distribution Planning Improvements

More Granular Analyses


Time Series Load/DER Forecasts

LoadSEER Forecast Software Load forecast profiles DER forecast profiles


Future Hosting Capacity

More Granularity Develop Hourly Hosting Capacity Model Non-export and Smart export DER Model Advanced Inverter Functions Probabilistic Analysis


Granular Hosting Capacity that recognizes all types of DER

0

2

4

6

8

0 2 4 6 8 10 12 14 16 18 20 22Load PV PV + Storage EV Dispatchable Storage

MW

Hour


Integrated Grid Planning

Identify Grid Needs Identify least cost, best fit solution options – Traditional wires solution – DER/DR solution

Solution Optimization – PLEXOS integration


Integrated Distribution Planning Cycle

Investment Plan

•Load & DER Forecasts •Load & DER Profiles •Collection of Historical

Data

Forecast Cycle

•Hosting Capacity •Area Capacity Review •Contingency Analysis

Analysis Cycle •Traditional Solutions •DER Portfolios •Evaluation of Solutions

Solution Cycle


Benefits of Distribution Planning Improvements

Reduced Costs Increased Hosting Capacity New Opportunities for DER/DR Services Integrated/Optimized Grid Plans


Questions

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Summary of Key Takeaways

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Mahalo!