Digitalized Markets: A better way to grid flexibility in the USA

The US grid as we know is evolving faster than we can keep up. The proliferation of renewables and other Distributed Energy Resources (DERs) such as battery storage and electric vehicles are impacting the grid, creating short-term supply and demand challenges and countless local network constraints. Yet networks are now leveraging ‘flexibility’ and adding GWs of capacity back into our systems to ensure our grids remain resilient.
This webinar will take a deep-dive into solving grid congestion issues through a market-based, democratized, and digitalized approach to contracting and dispatching flexibility and Non-Wires Alternative (NWAs) programs.
On March 9 at 11:00 AM EST, John Bayard, Chief Commercial Officer at Piclo, joins Steven Hopengarten, Lead Strategic Sourcing Specialist at National Grid, to discuss:
- The pros and cons of current flexibility services programs in the USA
- Transmission and distribution-scale flexibility marketplace case studies from the UK
- The ongoing pilot project with National Grid in New York State and ways to get involved

Transcript

1. © Open Utility Ltd
   March 2023
   Digitalized Markets: A Better Way
   to Grid Flexibility in the USA
   

   View Slide

2. 2
   © Open Utility Ltd
   Housekeeping
   ● Please mute yourself and turn off your webcam
   ● Webinar will be recorded, and you will receive the link to the recording and presentation in
   the coming weeks
   ● Submit questions throughout webinar in the chat - we welcome any questions you have!
   

   View Slide

3. 3
   © Open Utility Ltd
   Grid flexibility is essential to usher in the Energy Transition
   ● Distributed renewable generation
   ● Electrification of transportation and heat
   ● An aging infrastructure that wasn’t designed
   for this in the first place!
   ● Slow down energy transition
   ● Increase network capacity (at huge cost)
   ● Harness flexibility resources
   Challenges
   Our options
   Network limit (MW)
   Intra-day supply and
   demand profile
   Demand-side
   response
   Interconnector
   Battery & EV
   Distributed
   generation
   

   View Slide

4. 4
   © Open Utility Ltd
   The concept of flexibility isn’t new - however it’s not yielding its potential
   Non-Wires Alternatives Bi-lateral DSR Existing Energy Procurement
   (RTO/ISO, CCAs, PPAs,
   Tx/Dx Coordin.)
   Grid Hardening,
   Replacements, and Upgrades
   Utilities / grid operators
   FSPs*
   Ratepayers
   Challenges Huge variation in rules and
   approach among states,
   utilities, and grid operators
   Resource intensive for
   utilities to execute
   Historically weak
   cost/benefit results
   Siloed programs focused on
   small number of technologies
   and applications
   Minimal competition means
   less innovation or
   competitive price pressures
   High thresholds to
   participate, incumbents
   dominate, and can be
   exclusionary
   Complex stakeholder
   landscape means needed
   transformation and change
   comes slowly
   Capitally intensive and
   requires lengthy timeframes
   Constrained by supply chain
   bottlenecks and rising costs,
   which are passed on to
   consumers
   *FSP = Flex Service Provider (DERAs, asset owners, EV companies , smart thermostats, etc.)
   Market Actors:
   Existing Solutions:
   

   View Slide

5. 5
   © Open Utility Ltd
   ● Competition-based approach to sourcing
   local flex at lowest cost per MW
   ● End-to-end process: Advertisement,
   auction, dispatch, settlement & payment
   ● Participation by flex service providers of all
   types, shapes and sizes
   ● Digital platform that can be configured and
   launched in three months
   ● Streamlined processes that reduces
   procurement costs for utilities & FSPs
   A better way: digitized marketplaces for sourcing local flexibility
   Market-driven approach Local & inclusive Low cost to operate
   

   View Slide

6. 6
   © Open Utility Ltd
   Use cases: Flexibility delivers value across the entire utility organization
   Deferral of grid
   infrastructure
   Unplanned
   outages
   Day-ahead
   constraint mgmt
   Planned
   maintenance
   Flexible
   network connections
   Long term
   (Network planners)
   Mid term
   (Customer delivery)
   Short term
   (Control room)
   

   View Slide

7. 7
   © Open Utility Ltd
   National Grid ESO: Solving transmission level constraints
   ● End-to-end functionality for National Grid ESO Local Constraint
   Market, tackling high constraint costs caused by wind generation at
   the Scottish-English border
   ● Allows NG ESO to procure through day-ahead and intra-day
   competitions to complement other National Grid ESO actions
   (Balancing Market)
   ● Distribution assets will be participating in Transmission level
   markets - the platform will be facilitating coordination between the
   Distribution and Transmission system operators
   ● Enabling smaller assets to soak up excess, cheaper electricity (via
   FERC 2222)
   ● Typical assets participating - Small renewable generators, batteries
   

   View Slide

8. 8
   © Open Utility Ltd
   Case study: Scottish Power Networks
   ✓ Customer since 2019 and seen year
   over year increases in participation
   ✓ SPEN has tendered for over 2600
   MW of flexibility service
   requirements across four competition
   rounds, surpassing 190 MW of
   contracts awarded to Flex Providers.
   ✓ We’ve just agreed to provide our
   End-to-end service with SPEN -
   including dispatch, performance
   verification & invoicing - as part of a
   2-year contract
   

   View Slide

9. 9
   © Open Utility Ltd
   National Grid pilot in New York State
   ● One year proof-of-concept pilot to test
   how flexibility services (Non-Wires
   Alternatives, or NWAs) can work in the US
   ● We streamlined processes and submission
   requirements to improve user experience
   and FSPs’ ability to participate
   ● Goal to expand beyond pilot and other
   utilities / geographies to provide more
   flexibility services revenue opportunities
   to FSPs
   

   View Slide

10. 10
    © Open Utility Ltd
    1. Rewatch recording (to be shared after this)
    2. Review Help articles on our support page - https://support.picloflex.com/
    3. Reach out to one of the following email addresses:
    a. flex-usa@piclo.energy for general questions before registering on the platform
    b. support@picloflex.com for direct support on company and asset qualifications, and platform troubleshooting help
    4. Top tips to remember
    a. Never hesitate to reach out to us and ask for help
    b. The more information you can provide, the better!
    c. Don’t leave things until the last minute
    d. Give us feedback - we want the platform to make things easier for you
    Tips for Flex Service Providers (FSPs)
    

    View Slide

11. © Open Utility Ltd
    Thank you
    

    View Slide

12. © Open Utility Ltd
    Book a demo
    flex-usa@piclo.energy
    comms@piclo.energy
    www.piclo.energy
    Get in contact
    

    View Slide