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The History of Rule 21 Working Group Presentation for CPUC June 20, 2008. Distributed Energy Resources Integration Steve Ghadiri Bernard Treanton. Distribution Program Linda Kelly. What is Rule 21? A term commonly referred to as interconnection rules

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The history of rule 21 working group presentation for cpuc june 20 2008 l.jpg

The History of Rule 21 Working Group Presentation for CPUCJune 20, 2008

Distributed Energy Resources Integration

Steve Ghadiri

Bernard Treanton

Distribution Program

Linda Kelly


Policy reasons l.jpg

What is Rule 21?

A term commonly referred to as interconnection rules

Specific rule contained in the electricity tariff booklets of the utilities under CPUC jurisdiction

Provides technical and non-technical criteria for connecting generation equipment to the utility systems

Rule is technology and size neutral

Policy Reasons

SmartGrid of future needs smart rules for its connectivity.


Policy reasons3 l.jpg

Why Did It Need Refining?

Rule was not designed for small-scale DG interconnections

It Increased cost to DG manufacturers

Larger degree of customization required

It did not obligate utilities to review applications within a particular timeframe or provide any detailed cost estimate to applicant.

Policy Reasons

SmartGrid of future needs smart rules for its connectivity.


Policy reasons4 l.jpg

What were the guiding principles in developing the Rule?

Rules, protocols and processes should be clear and transparent

Rules should be technology neutral, except when differences fully justified

Level playing field should be established for all DG providers

Rules should be uniform throughout California

Utilities should be fairly compensated for distribution services that support DG installations and customers

Policy Reasons

SmartGrid of future needs smart rules for its connectivity.


Policy reasons5 l.jpg

How was this accomplished?

Stakeholder working group was created in late 1999 to create standardized interconnection rule in California

Over 250 people on the email distribution list with 25-30 members attending monthly meetings

Meetings focus on rule refinements, standardized agreements, and specific issues as directed by policymakers

Residual benefit of meetings: Helped shape expectations between utilities and DG developers

Policy Reasons

SmartGrid of future needs smart rules for its connectivity.


Relationship to policy l.jpg

For the last seven years, the California Energy Commission’s Public Interest Energy Research (PIER) program has supported the important work of Rule 21 Working Group.

The common visions of the Rule 21 streamlining are:

Customer integration of renewables

Increased reliability

Contribution to SmartGrid of the future

Relationship to Policy

CEC’s advocated policy revolves around efficiency and renewable goals.


Iepr s direction l.jpg
IEPR’s Direction Commission’s Public Interest Energy Research (PIER) program has supported the important work of Rule 21 Working Group.

The IEPR Directions that CEC has been pursuing to address challenges of California’s Distributed Generation systems are:

  • Develop State Policy for modernization of the Distribution Grid

  • Establish an integrated transparent distribution planning process

  • Establish a Distribution Program, similar to CEC’s Transmission Program

  • Fund Distribution research through PIER program

  • Develop policies and research to provide open data architecture


Cec s role l.jpg

The California Energy Commission, with support from the FOCUS team, has taken a leadership role in developing revised, streamlined requirements for interconnection of electric power generators to the California electricity distribution system.

CEC orchestrated the revisions by a consensus-building process through a Rule 21 Working Group, an open forum comprised of:

Utilities

DG developers

Equipment manufacturers

Consultants

Industrial, Commercial, and Residential DG Users

CEC’s Role

CEC’s advocated policy revolves around efficiency and renewable goals.


Figure 1 time and cost reductions l.jpg
Figure 1. Time and Cost Reductions FOCUS team, has taken a leadership role in developing revised, streamlined requirements for interconnection of electric power generators to the California electricity distribution system.


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Compared to pre-Revised Rule 21, a DG developer’s relative interconnection cost for units less than 1MW have reduced by 50% to 75%.

The Revised Rule 21 has been adopted by several major municipal utilities in California, and has become a model for utilities in other states and other countries.

The Rule 21 process and documents have :

Assisted the IEEE with development of interconnection standards

improved relationships between developers and utilities

Lowered interconnection cost of resources

Relationship to Policy

SmartGrid of the future also needs smart rules for its connections and operations.


Our vision into the future l.jpg
Our Vision into the future interconnection cost for units less than 1MW have reduced by 50% to 75%.

The Grid will be incapable of expansion because of

  • NIMBY and BANANA suspicion of power facilities interconnection

  • Unsustainability of Central systems expansions and utilities control

  • Lowered interconnection cost of resources will increase demand and entry

    Therefore, The Smart Microgrids will be having their place.

    The Economics of Microgrids are similar to those of Grid-scale systems:

    DG resources will play a more pronounced role due to pertaining legislation

  • SB 1

  • AB 32

SmartGrid is a strategy for integrating and optimizing grid and customer resources; Microgrids is a local tactical deployment of that strategy.


Future grid vision l.jpg

= Distribution Substations interconnection cost for units less than 1MW have reduced by 50% to 75%.

= Load (Commercial, Industrial and Residential)

= Distributed Energy Resource Interconnection

= Smart Metering Technologies (AMI)

= Real Time Communications

= Real Time Sensors

= VAR Compensator

= Distributed Generation

= Combined Heat and Power

= Demand Response Enabled

S

VAR

DG

S

CHP

DR

Central Control

Future Grid Vision

DR

CHP

DR

S

Microgrid with large commercial customers

S

Plug in Hybrid Vehicle Stations

S

VAR

S

DR

DG

S

Sustainable Communities with storage and the ability to island

S

Microgrid with residential and commercial customers

Utility Operated Storage with Solar

Tie Switch


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More recent progress to Rule 21: interconnection cost for units less than 1MW have reduced by 50% to 75%.

It has recently been expanded to include multiple generators with multiple tariffs at a single location.

It has added a process for interconnection to more complex utility lines, and

It has also streamlined dispute resolution process.

It is fair to say that:

“The process of working together to revise Rule 21 has increased all stakeholders’ understanding of DG systems and how they may be integrated into the distribution system. Communications with the utilities have improved considerably, and interconnections are now proceeding more rapidly and smoothly.”

Relationship to Policy

SmartGrid of the future also needs smart rules for its connections and operations.


Future works l.jpg
Future Works interconnection cost for units less than 1MW have reduced by 50% to 75%.

What is Remaining:

  • Rate Structure and Distribution Planning

  • Stand-by Charges

  • Need to integrate the DG into the California Grid

  • Regulatory Nature of the Rule


Conclusion l.jpg
Conclusion interconnection cost for units less than 1MW have reduced by 50% to 75%.

CEC’s Recommendations are:

  • 1) the CPUC take the leadership role of the Rule 21 Working Group from the CEC, and

  • (2) the CPUC to open a rulemaking process to address the actions necessary to establish firm goals for the increased application of efficient distributed generation in California that reduces green house gas production.


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