Transcript Distributed Resource Planning

Distributed Resources
at
DTE Energy
Richard Seguin - Principal Engineer
Distributed Resources Planning
DTE Energy – Detroit Edison
[email protected]
313-235-9598
Agenda
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DTE Energy Background
Integration into Planning & Operating Process
Discussion Break
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Detroit Edison DG Experience
– Distribution Solutions
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Siting
Load Following
– Premium Power
Discussion Break
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Other fancy work
– DoE DER Aggregation, Communication, Control and Sale
Discussion Break
2
DTE Energy Business Segments
Energy
Energy
Energy
Corporate &
Resources
Distribution
Gas
Other
Regulated
Detroit Edison
Power Generation
Energy Services
Non
Regulated
Coal Services
Detroit Edison
Power Distribution
MichCon
Gas Distribution
Non Reg
Energy Gas
Energy Tech
Investments
Holding
Company
Biomass Energy
Trading & CoEnergy Portfolio
3
Detroit Edison Service Area
Service Area: 7,600 Sq. Miles
Customers: 2.1 million
System Peak Load: 12,132 MW
Annual Sales: 56,000 GWH
37% Commercial
29% Residential
29% Industrial
5% Wholesale & Interconnection
Distributed Generation: 1,427 MW
or 12 % of Peak Load
(Does not include < 100kW units)
750 MW interruptible
Michigan
Distribution Substations
Distribution Circuits
662
2,808
1,876 @ 4.8kV
932 @ 13.2kV
Distribution Circuit Miles
38,939
20,184 @ 4.8kV
18,755 @ 13.2kV
Subtransmission
2,664 @ 24 kV
797 @ 41.6kV
DTE Energy’s DG Commitment
“ Several years ago, the leadership at DTE tried to envision what
the electric utility business would look like in a decade. One of
our conclusions was that this industry would go through the
same transformation that the computer business has
experienced. There, mainframe computers gave way to
desktops which gave way to laptops.
In the electric industry, the day of large central station power
plants has already given way to modular, combined cycle gas
powered plants. We envisioned a day when the next step,
distributed (or personal) generation would play a major role. In
fact utilities may be among the first real-world, large scale users
of distributed generation. Distributed generation will
increasingly become a cost-effective alternative to the
expansion and reinforcement of T&D infrastructure”
Anthony F. Earley, Jr.
Chairman & CEO, DTE Energy
5
DTE’s Vision for
Distributed Generation (DG)
Traditional
Electric System
Traditional Electric System
+
Personalized Power
Just another tool
through Distributed
Generation (DG)
6
DG Vision
DG Technology
Let’s imagine a semi-truck load of new DG technology starting
up and heading toward the utility; there are 3 ways to deal
with it:
 Throw yourself in front of the truck and hope it stops
 Grab on to the back bumper and drag your feet
 Jump into the cab of the truck and help to steer it.
The latter is the way that DTE Energy chooses to deal with
this new technology.
7
Integration into the
Planning & Operating
Process
8
The Utility Today
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Many utilities’ capital budgets are decreasing as their
customer’s expectations are increasing
Utilities must balance the need for new distribution
and caring for existing distribution
We can’t afford to solve every 1MVA problem with
traditional T&D 30MVA solution
– Problems that may only exist for a few hours per year
– Capacity that may not be fully utilized for several
years.
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DG is one way of delivering just-in-time and “rightsized” capacity to resolve smaller short falls while
minimizing the initial capital outlay
Freeing dollars for reliability and maintenance
9
DG Integration – 2003 Review
Project No vs Project Cost per kW
Avg Cost of
new distribution
10
Distribution Capital Budget
Items Included in Cost per kW
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All New Business Projects and their installed capacities
All Overload Projects and their installed capacities
All Increase Load Blanket cost @ NO capacity addition
All System Improvement Blanket cost @ NO capacity addition
All Blanket Land Purchases @ NO capacity addition
All project cost (includes prior, current and future year
expenditures) plus land, transformers and all project specific
overheads
Utilized Capacity (capacity available for use) only not total
installed capacity
11
Items NOT Included in
Distribution Cost per kW
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Street Lights
Relocations (required removal
of facilities located in public
R/W)
Transmission (Not our company
not all cost is associated with
increased distribution load)
Subtransmission (Not all cost is
associated with increased
distribution load) *impacts of
including evaluated
Reliability Projects (Cost does
not result in significant capacity
increase) *impacts of including
evaluated
Distribution Transformers
Service Standards (Small
Reliability projects - MPSC
required capital to resolve
frequent outage pockets)
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Tree Trim (Capital Tree Trim)
Maintenance (Primarily Pole
Top Maintenance)
DWRP(Downed Wire
Replacement Program)
URD Replacement (end of life
replacement of failing URD
cable)
NURC (Normal Unit Retirement
Changeout)
EURC (Emergency Unit
Retirement Changeout)
Secondary Improvement
(Replacement & rebuilding of
old secondary system)
CIAC (Contribution In Aid of
Construction)
12
DG Integration – 2003 Review
Project No vs Project Cost per kW
Avg Cost of
new distribution
Graph represents Overload and New Business Projects Not Reliability
Projects. The cost per kW for Reliability projects is typically very high.
13
Project No 1
Cost/kW Capacity vs Cost/kW Short fall
$100/kW
Replace 2.5 MVA Transformer with existing 5 MVA
Install Portable Substation
$ 5K
Remove existing 2.5 MVA Transformer
$ 20K
Install stock 5 MVA Transformer
$ 20K
Remove Portable Substation
$ 5K
Total Project Cost
$ 50K
Capacity added
2,500KW
$20/kW
Cost per Capacity Added $50,000 / 2500 kW = $ 20 per kW
0
Cost per Shortfall
$50,000 / 500 kW = $100 per kW
@ 10% Growth this last 4-5 years
14
Example of Cost per Shortfall
Traditional T&D Substation
Capacity Added
T&D Cost per kW added
Traditional T&D Substation
Capacity needed (Short fall)
T&D Cost per kW Shortfall
$6,000,000
30,000kW
$ 200/kW
$6,000,000
1,000kW
$ 6,000/kW
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Keys to DR integration
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Real Management Support is a must
Name a champion to shepherd the integration
Change the measure - $/kW capacity shortfall not $/kW
capacity added
It’s just like a portable
Consider utility, customer, or premium power shared DR
Effective use of manpower & resources
– Standardize the design & operation
– Construct with a generation knowledgeable contractor
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Build community partnerships - a temporary solution with
minimum usage
Communicate, Communicate, Communicate
DR is distribution capacity! not generation for generation sake 16
Possible DG Solutions
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For Maintenance
– Small substation
– Facilitating shutdowns
In an Emergency
– Saving or minimizing emergency outage or equipment damage
– Relieving overload or low voltage condition
Temporary use
– We can’t get a permanent fix done in time
– DG and Differ
Permanent
– Redundant Service
– Long term solution
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Alternative to T&D
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Replacement of old generation with DG
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Potential DG Solutions
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Utility Owned
– Distribution solutions for load relief
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Utility and Customer Joint ownership
– Premium Power - utility owned DG leased by customer
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Utility Benefit
– Non Sellback NEGAWATTS or Load offset
– Sellback MEGAWATTS or total available DG
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Customer Benefit
– Standby
– Lower rate if interruptible
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Customer owned DG
– No formal customer relationship exist
– Informal request for DG use and/or load reduction have been done
– Negotiated with Water Board and established formal DG lease
as a temporary distribution solution
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Customer Interruptible
– Interruptible rate primarily for generation shortfalls, but….
18
Premium Power
Ed Henderson Detroit Edison’s “Premium Power Presentation” Distributed Generation Conference May 6, 2004
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Premium Power Structure
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Detroit Edison’s Premium Power Service offers onsite standby
generators that can prevent costly disruptions to business and
commercial operations
Equipment is installed, owned, operated, & maintained by Detroit
Edison
Every project is uniquely tailored to meet customer’s needs
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For a simple monthly fee, Premium Power provides the customer
with an alternative to a second utility feed
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Standard contract length is seven to ten years; contract
continues year-to-year thereafter
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Provides a dispatchable asset to address generation,
transmission and/or distribution constraints
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Available to bundled tariff customers only
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Premium Power & Interruptible
Rates
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Detroit Edison offers interruptible rates to all commercial and industrial
customers
– Energy is discounted for ability to interrupt customers in
times of system need
– Current electricity market supply exceeds demand, so
interruptions have been minimal
– Potential transmission constraints and/or a hot summer
could result in interruptions
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Interruptible rate discounts on all kWh vary from approximately 10% to
25% depending on tariff
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Net effect of Premium Power Service-breakeven to 10% premium
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Service guarantee covers tariff performance penalties
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Questions & Discussion
Distributed
Generation at
DTE Energy
Technology Testing
Southfield Solar &
Future H Power Park
ZBB Flow Battery
Substation Battery
Replacement Project
Substation
Applications
Temporary &
Maintenance
Distribution
Solutions
Circuit
Applications
Emergency &
Temporary
Adair ENI1000 1MW NG
Emergency ENR2000
2MW Diesel
Union Lk ENR2000 2MW Diesel
Grosse Ile High School
ENI1000 1MW NG
Substation Islanding
ENR2000 2MW Diesel
Assumption Church
ENI1000 1MW NG
Premium
Power
Customer
Partnership
Applications
Wayne State Univ ENI 75
Dialysis Center ENI 150
Service Center ENI 150 & 75
DTE Distribution Solutions
Michigan
Quail
Maintenance
Richville
Maintenance
Adair
2 yr NG
UnionLk
3 2 yr diesel
Milford
Shores
3 yr NG
3 yr NG
Wayne
Emerg diesel
Water Bd
2 yr diesel
Collins
Emerg diesel
Grosse Ile
5 yr NG
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Internal to Distribution Circuit
Collins – Previous Emergency Installation
An emergency installation of a 2MW DG ending daily circuit outages forced
by overload to 3500 customers on a 13.2 kV multi grounded Y. The $500K
spent on an emergency generator and circuit work were roughly equivalent
to annual charges for a one year delay of the $6.4M Collins substation
project. If planned the this emergency alternative including the DG
installation would have been more economical.
Grosse Ile - Current Temporary Installation
A five year project, on high school property, deferring eventual T&D
expansion on the island. A $3.8M Grosse Ile 4.8 kV substation expansion
project is planned. The project involves bringing in another marine cable
feed to the Island. The DG installation cost is $900K.
St. Clair Shores – Current Temporary Installation
A three year project, on church property, to manage loading on a land
locked 4.8 kV delta circuit in need of relief before the new $4.0M Erin
substation is built. No other cost effective solution existed.
Wayne Circuit – Temporary/Emergency Installation
A 4 month installation to provide 13.2 kV circuit relief due to R/W delay in a
new $5.2M Zebra Substation Project. No other cost effective
Solution (1 mile of new overhead – $180k) to prevent rotating blackouts to
2100 customers.
Milford – Temporary Installation
A three year project, on School property, to manage loading on a
overloaded 13.2 kV Y circuit in need of relief before the new $3.8M Milford
substation expansion is built. No other cost effective solution existed.
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Substation Applications
Adair – Previous Temporary Installation
A two year project, a traditional 4.8kV Delta substation
expansion solution could not be completed in time to
relieve the transformer emergency overload. Costs were
approximately breakeven. The substation budget cost was
$800k, and DG project was $870k. The DGs installation
allowed for the deferral of the substation project an
additional year.
Union Lake – Current Temporary Installation
A three year project, traditional Union Lake 4.8kV to 13.2kV
conversion project to relieve a exit cable emergency
overload could not be completed before summer overload.
The equivalent annual cost of the Union Lake conversion
project as proposed was $137k ($1.7M over 60 years @
8%). The equivalent annual cost of the interim DG solution
was $61k ($600K over 20 years @ 8%). The DG will allow
further deferral of the T&D project.
Quail – Previous Emergency/Maintenance Installation
Islanded small substation Saved 800 customers served
from this 4.8kV substation from having 2-10 hour outages
and the importing of addition crews in order to repair a
40kV feed damaged by a tornado.
Richville – Maintenance, Islanded small substation
Same situation as Quail above
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Collins ENR 2000 –
Emergency 2 MW DG
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Adair ENI 1000 - 1MW DG Installation
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Quail 1.5 MVA, 41.57/4.8 kV Substation
2MW Diesel Islanded to perform emergency repairs & maintenance
17.5 miles of radial 41.57kV exposure feeds
Richville and Quail Substations
Quail Substation
(rural substation in Michigan’s Thumb region)
68.2 miles of 4.8kV delta
Feeds 571 customers
A peak load of 1.4 MVA
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DG Connection Trailer – Dual
Voltage, OH/UG Connection,
Protection & Communication
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Grosse Ile DC 2842 - 1 MW Nat Gas
DR M0001 - LW E. River, 8PN Grays
Grosse Ile Schools
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Shores DC 1770 - 1 MW Nat Gas
DR B0001, St Joan(ext), 5PE Marter
Assumption Greek Orthodox Church
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Union Lake DC 1688 - 2 MW Diesel
DR H0004
Union Lake Substation
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Wayne - ENR 2000 Diesel Installation
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