As a follow-up to my last blog on new grid services, I wanted to provide some additional thoughts around Grid-Infrastructure-as-a-Service (GIaaS).
I previously noted that GIaaS would “defer or eliminate the need for grid infrastructure investments through management of the system downstream of the distribution substation. That means if the substation was reaching capacity, a service could be provided to reduce peak load downstream of the station during these peaks to defer the need for the upgrade. Furthermore, if the addition of DERs kept pace with load growth, it could eliminate the need for the upgrade completely.”
I am continuing to work through my hypotheses on this topic via discussions with industry thought leaders and by reading as much relevant material as possible. Most of what I have come across so far continues to validate GIaaS as an emerging grid service, as well as an emerging disruption to way grid services are provided and monetized today. To help keep the conversation moving forward, I’d like to share three good reads on the topic:
ConEd Brooklyn-Queens Demand Management Program - The goal is to defer a $1.2 billion investment in substation upgrades by managing the loads downstream of the substation. Page 16 of the program overview at the above hyperlink depicts the anticipated 2018 peak summer day profile. You’ll see that more than half of the energy savings will come from efficiency, and the rest from DERs and DR.
Southern Cal Edison "Citizen-Fueled Power Plant" – This concept is similar to what is typically called a virtual power plant (VPP) when we see aggregate power across multiple end nodes and dispatch similar to that of a power plant. The difference with the approach noted in the above article is that it spans 50,000 homes at ~1kW/home.
Developing Competitive Electricity Markets and Pricing Structures - This white paper is a comprehensive review of the platforms, regulation and technology necessary to successfully integrate DERs into the electricity markets in New York. Fair warning, it is 161 pages and fairly detailed, so not for the faint of heart. Thanks to one of the commenters on my earlier blog for pointing this one out.