Assessing Options for Accommodating Electric Vehicles in

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Transcript Assessing Options for Accommodating Electric Vehicles in

POWERING EV GROWTH IN SANTA DELANO VALLEY

The Technology & Policy Group

Ash Bharatkumar, Michael Craig, Dan Cross-Call, & Michael Davidson Prepared for the USAEE Case Competition 2013 Anchorage, AK, July 29

Outline

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     Summary of challenge EV and demand growth projections BAU: Transmission and distribution expansion Alternatives  Energy storage  Demand response 

Controlled charging

Tariff design for equitable allocation of EV costs Technology & Policy Group

The Challenge

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  Growth in electric vehicles (EVs) poses challenges for Santa Delano Electric Company (SDEC)  Accommodate new electricity load  Maintain affordable and reliable electricity  Ensure equitable distribution system upgrade costs  While encouraging growth in EV ownership Options and opportunities for a 15 year planning horizon Nissan Leaf Technology & Policy Group Tesla Roadster Images: thecarconnection.com and proetools.com

Electric Vehicle Projections

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 Projected growth with Bass diffusion model  Used elsewhere to model EV growth  Low, medium and high growth scenarios  Split fleet projections proportionally into EV models 1400 1200 1000 800 600 400 200 0 2013 Low Medium High 2015 2017 2019

Year

2021 2023 2025 30% 10% 2027 1% Fleet Penetration, 2027

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Demand Growth Projections

12000 10000 8000 EV Demand, High Growth EV Demand, Medium Growth EV Demand, Low Growth Base Demand

24-Hour Load Profile with EVs under Each Growth Scenario, 2027

6000 4000 2000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour of Day

BAU: T&D Expansion

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 Distribution and transmission network expansion required to serve increased demand from EVs over 15 year horizon  Distribution expansion for each 1% increase in load relative to 2012 load  Increase substation capacity (transformers + feeders)  Transmission expansion for each 5% increase in load relative to 2012 load  Add lines Technology & Policy Group

BAU: T&D Expansion Costs

7 Low growth Medium growth High growth

$40.9 m $880/EV $644.5 m $1,460/EV $1,800 m $1,440/EV *Note: Costs will vary with network topology, terrain, selected line voltage, distance of transmission, and reactive power profile of load Technology & Policy Group

BAU: T&D Expansion – Findings

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 T&D network build-out can accommodate projected EV growth  Medium Growth cost: $1,460 per EV 

Not the recommended course of action

Technology & Policy Group

Summary of Alternatives

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 Energy storage  Energy storage is not a viable option  Costlier than T&D upgrades, not suitably mature  Demand response  Real time prices are not reliable alternative to T&D upgrades  Controlled charging  Controlled charging is preferred solution to accommodate EVs Technology & Policy Group

Alternative 1: Energy Storage

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 Meet additional peak load from EVs with many small installations on distribution network  Shifts electricity from off-peak to peak hours  Limited technologies are viable for distributed applications  Sodium-sulfur (NaS) batteries – commercially available, chosen as a representative battery chemistry  Modeled build-out per annual power and energy needs Technology & Policy Group

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Alternative 1: Energy Storage – NaS Installations (7 MWh/1 MW) 350 300 250 200 150 100 50 0 1 2 3 4 5 6 Low EV Scenario 7 8 Medium EV Scenario 9 10 High EV Scenario 11 Technology & Policy Group 12 13 14 15

Alternative 1: Energy Storage – Findings

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 Costs much more than T&D upgrades  Medium Growth: $5,133 per EV  Not suitably mature for near-term application 

Energy storage is not a viable option

Technology & Policy Group

Alternative 2: Demand Response

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 Engage households in reducing peak load through tariffs that vary with system conditions  SDEC pilot used locational marginal price (LMP)  Peak demand will be shifted only if:  Size of price incentive is sufficiently large (>5x)  Households are open and responsive to price signals  Price reflects peak system demand

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Alternative 2: Demand Response – Analysis of Pilot  Weak price incentive: only 10 hours with large differential  Low opt-in rate (24%)  Wide variation/unpredictability in customer response Number of Hrs Single-family Multi-family Average Load Reduction

Peak LMP Hours (Top 5% of Year)

Reduction of Peak Household Demand (%) 95% CI 305 55.5 W 42.1 W 2.25% 1.84% (6.4 , 104.5) (-3.2 , 87.3)

Peak System Demand Hours (Top 5% of Year)

Average Load Reduction Reduction of Peak Household Demand (%) 95% CI 439 34.0 W 23.3 W 1.38% 1.02% (14 , 53.9) (4.6 , 42.1)

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Alternative 2: Demand Response – Disadvantages of LMPs  LMP reflects mostly California wholesale prices: Congestion < 10% of LMP cost in CAISO in 2012  SDEC peak does not align with LMP peak: 600.00

500.00

400.00

300.00

200.00

100.00

0.00

6700

LMP vs. Total System Load During 5% Peak Hours

6800 6900 7000 7100

MW

7200

Avg yearly LMP: $84.33 / MWh

7300 7400 7500 7600

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Alternative 2: Demand Response – Findings  SDEC ’ s DR pilot using real-time prices (RTP) led to small, inconsistent reductions in peak demand  The standard price signal – locational marginal price – does not accurately reflect distribution-level congestion 

RTP is not reliable alternative to T&D upgrades

Alternative 3: Controlled Charging

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 Two options considered:  Utility has full control over charging  Delayed charging (4 hours after plug in)  Shift EV loads to off-peak hours  But at the expense of consumer control Technology & Policy Group

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Alternative 3: Controlled Charging – Model  Modeled load-shifting capability with GAMS  Cost-minimization optimization  Assumed 90% EV fleet participation  Guaranteed all EVs fully charge overnight  Minimized total system cost (demand times price) Technology & Policy Group

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Alternative 3: Controlled Charging – Load Shifting 9000 8000 7000 EV Demand, Medium Growth Base Demand No Control, Medium EV Growth Scenario 6000 5000 4000 3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour of Day

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Alternative 3: Controlled Charging – Load Shifting 9000 8000 7000 6000 5000 EV Demand, Medium Growth Base Demand Controlled Charging, Medium EV Growth Scenario, 90% of EVs 4000 3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour of Day

Alternative 3: Controlled Charging – Costs

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 Costs of program:  Smart meters  IT and communications infrastructure  Annual IT costs  Annual savings from less “ dumb ” meter reading  T&D upgrades from EVs not in program Costs for Medium Growth Scenario

Item NPV of Cost (Savings)

Reading Old Meters Smart Meters Communications Infrastruc.

IT Infrastruc.

T&D Expansion Total

Total Per EV

($6,040,084) $29,601,080 $465,160 $225,532 $29,833,157 $54,084,845

$125

Technology & Policy Group

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Alternative 3: Controlled Charging – Findings  Off-peak night hours can fully absorb demand from EVs under all growth scenarios  Costs less than T&D upgrades  Medium Growth: $125 per EV 

Preferred solution to accommodate EVs

Technology & Policy Group

Summary of Alternatives

23 EV Growth Scenario EV Fleet Size % of Vehicle Fleet BAU T&D Controlled Charging Energy Storage - NaS Batteries

Total (millions)

$41 $2 $229

Low

46,796 1%

Per EV

$883 $53 $4,893 $54

Medium

447,315 $644 $2,296 10%

Total (millions) Per EV

$1,463 $125 $5,133

High

1,307,855 $1,852 $173 $7,022 30%

Total (millions) Per EV

$1,443 $139 $5,474

Demand Response

No reliable load reduction

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Tariff Structure – Essential Considerations  Goals of differentiated tariffs:  Pursue lowest total system cost  Allocate costs of system upgrades equitably (avoid cross-subsidization)  Demand (capacity) charges more precise than energy charges from T&D perspective  Controlled charging infrastructure (e.g., smart meters) furthers other SDEC objectives Technology & Policy Group

Tariff Structure - Recommendations

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 Monthly EV charger fee of $8, effective for 15 years (approx. cost per EV of BAU T&D upgrades)  Fee waived if enrolled in controlled charging program  Program participants face higher rate when override charging schedule  Smart meters paid for by rate base  Periodically review tariff (e.g., every 2 years) to ensure accurate cost accounting

Conclusion

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 Large but uncertain demand growth expected from EVs  Ideally accommodate load cost-effectively and equitably while encouraging further EV growth  BAU T&D expansion costly  Of alternatives, only controlled charging accommodates load at reasonable cost  Proposed tariff allocates cost equitably Technology & Policy Group

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Thank You for Your Attention Questions?

Technology & Policy Group

Bass Diffusion Model

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 Three key parameters (low, medium and high):  Maximum potential market (m=0.03, 0.25, 0.7)  Fraction of purchasers who make decisions independent of others and network externalities ( “ coefficient of innovation ” ) (p=0.01, 0.015, 0.02)  Fraction of purchasers who are swayed by decisions of others and network effects ( “ coefficient of imitation ” ) (q=0.3, 0.35, 0.4) Technology & Policy Group

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Proportions of EV Types in Fleet EV Type PHEV 4.5kWh

PHEV 16kWh EV 24kWh EV 40kWh EV 60kWh EV 85kWh Percentage in Fleet 0.26

0.30

0.15

0.16

0.09

0.04

Technology & Policy Group

Demand Growth Projection Details

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 Split fleet projections proportionally into EV types  Accounted for:  Fraction of EVs that plug in during peak hours at home  Temporal distribution of when EVs plug in  Charger level (Level 2 for EVs >40kWh)  Daily travel distance (high value (52 mi.) for EVs >40kWh)  Duration of charge Technology & Policy Group

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Demand Growth Projection Details Technology & Policy Group

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Temporal Distribution of Added Demand

Additional Power Demand from EVs in 2017, 2022 and 2027, Medium Growth Scenario

1000 900 800 700 600 500 400 300 200 100 0 17:00 18:00 19:00 20:00 21:00

Time

22:00 Technology & Policy Group 23:00 0:00 1:00 2017 2022 2027

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Delayed Charging

9000 8000 7000 6000 EV Demand, High Growth EV Demand, Medium Growth EV Demand, Low Growth Base Demand

24-Hour Load Profile Under 4-Hour Delayed Charging of 90% of EVs

5000 4000 3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour of Day

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Controlled Charging under High EV Growth Scenario 9000 8000 7000 EV Demand, High Growth Base Demand 6000 5000 4000 3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour of Day

Controlled Charging Model Formulation

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Cost minimization: • • z = total cost, p(h) = price, B(h) = base demand, D(h) = aggregate EV demand, h = hour, v = vehicle Must fully charge overnight: • • C(v,h) = charging, d(v) = hours required for full charge Charging and plug-in relationship: • L(v,h) = plugs in

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Controlled Charging Model Formulation •

Charge status:

• • C(v,h) = charging, L(v,h) = plug-in, U(v,h) = unplug Demand from EVs: • • D(h) = aggregate EV demand, P(v) = charging power

Limit number of EVs that plug-in

per hour: • M = max number of EVs that can plug-in per hour Technology & Policy Group

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T&D Expansion Costs

Technology & Policy Group

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T&D Expansion

 Transmission expansion – add lines  Line loadability governed by St. Clair Curve – line loadability vs. line length  Capacity of shorter lines limited by conductor thermal capacity, longer lines governed by SIL and voltage stability limits Technology & Policy Group

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LMP Variation During Pilot Period  Only 10 hours during six months with LMP above five times average of $85 / MWh 250 200 150 100 50 0 Price ($ / MWh) Technology & Policy Group

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DR Household Response

40 30 20 10 0 90 80 70 60 50 Average Single-family Household Reductions During System Load Peak Hours

Values are lower bounds of buckets

kW Technology & Policy Group