DG Roles In Utility Distribution Planning

1
DG Roles In Utility Distribution Planning

• Charlie Salamone
• Cape Power Systems Consulting
• 12/13/06

2
DG Role Prior Reviews

• Review of the role DG could play in the utility
  planning process indicates that
• Developing DG solutions as an alternative to
  traditional solutions is a significant challenge
• Utility based DG solutions will be cost effective
  in a highly limited number of cases
• Locating and incenting customers to install DG in
  support of the system to address specific
  problems will be viable in a limited set of cases
• Taking advantage of DG occurring on the system
  may have value for supporting the system
• This has suggested defining two roles that DG can
  play in distribution system planning.

3
DG Roles

• Role 1 Leverage future value of customer DG
• When DG shows up as a result of non-utility
  market and policy drivers, the distribution
  company would
• Take advantage of it, by recommending use of
  utility-friendly equipment for the DG
  installation, and
• Manage potential future deployment costs to make
  use of that DG through use of DG-friendly
  equipment when upgrading the system.

4
DG Role 1

• Promotes customer use of utility-friendly
  equipment that would be difficult or expensive to
  replace at a future date and would be capable of
  providing distribution system support.
• This could include upgraded versions of devices
  such as
• Voltage regulators
• Synchronizing equipment
• Protection system devices
• Other equipment enhancements
• This option would be implemented when a new unit
  is being installed and could avoid significant DG
  equipment upgrade costs when the utility needs
  supporting capacity on its system.

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DG Role 1

• Use of DG-friendly equipment would be installed
  on the system by the distribution company when
  appropriate.
• A screening approach could be used to identify
  areas that DG resources either might occur or
  where such resources could have future benefit.
• This could consider locations where
• Future growth is not easily accommodated and the
  customer base is likely to adopt DG or
• Renewable resources such as wind or PV might
  occur in larger amounts
• The process might exclude areas where significant
  DG is likely not to occur such as
• Solely residential areas or
• Segments of the system that cannot be configured
  for DG connections such as large low voltage
  networks

6
DG Roles

• Role 2 Seek locations to use DG as a
  distribution deferral resource
• This is the active case approach for DG use and
  application of this role would be focused on
• Circuit or other system upgrades where costs,
  capacity needs and customer base indicate DG as a
  viable solution and,
• A sufficient customer adoption rate of DG and
  other demand reduction programs can be
  established

7
DG Role 2

• Use of a comprehensive screening process would be
  needed for this role.
• The screening process could consider
• Distribution system capacity requirements in
  terms of
• Amount needed
• Duration of need
• Triggering event
• Projected growth
• Customer base with respect to penetration and
  adoption rate characteristics
• Process must be easy to implement and should
  avoid extraordinary efforts for including DG as a
  planning alternative.

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DG Role Summary

• Role 1 Leverage future value of customer DG
• When DG shows up as a result of non-utility
  market and policy drivers, the distribution
  company would
• Take advantage of it, by recommending use of
  utility-friendly equipment for the customer DG
  installation, and
• Manage potential future deployment costs to make
  use of that DG through use of DG-friendly
  equipment when upgrading the distribution system.

• Role 2 Seek locations to use DG as a
  distribution deferral resource
• This is the active case approach for DG and
  application of this role would be focused on
• Circuit or other system upgrades where costs,
  capacity needs and customer base indicate DG as a
  viable solution and,
• A sufficient customer adoption rate of DG and
  other demand reduction programs can be established