Enhanced Modeling Tools to Maximize Solar + Storage Benefits

Developing a modeling tool to maximize the value of Solar + Storage.

Grid Decarbonization and Decentralization Virtual Power Plants

Energy & Environmental Economics, Inc.

Recipient

San Francisco, CA

Recipient Location

11th

Senate District

17th

Assembly District

beenhere

$987,368

Amount Spent

closed

Completed

Project Status

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Project Result

The public release of the Solar + Storage Modeling Tool was completed in June 2019, with the link to download the tool available at the Energy Commission's website. E3 held two public workshops to introduce the tool. The first workshop in June 2019 introduced the tool, reviewed the user guide and functionalities, and discussed how the tool can simulate and determine which design will maximize the benefits of DERs to ratepayers. The workshop in August 2019 provided an in-depth training for stakeholders interested in using the tool. E3 guided stakeholders through the process of creating inputs, analyzing the cases, and viewing the final results. This vetted public tool is also available for evaluating DER with local distribution benefits in the CPUC's Integrated Distributed Energy Resources and DRP proceedings. The final report was published in September 2020.

View Final Report

The Issue

Customer adoption of solar photovoltaics (PV), storage, and other distributed energy resources (DERs) is set to substantially increase in California as technology costs decrease, new products are brought to market, and the relationship between customer and utility evolves. DERs could have very different costs to ratepayers depending on how customers are incentivized to use them. If the incentivized use of DERs by customers through their tariffs or programs is not aligned with the needs of the grid, increased DER adoption could be very costly to ratepayers.

Project Innovation

This project developed a free, publicly available tool that performs a comprehensive cost-effectiveness analysis for energy storage and other distributed energy resources (DER). The Solar + Storage Tool identifies the most effective and economical approach of integrated solar photovoltaic and storage systems and estimates the value delivered to the customers based on their expected operations, location on the grid, electricity market prices, and other factors. The Solar + Storage Tool is equipped with the California Public Utilities Commission's (CPUC) avoided costs for DERs, as well as market-price forecasts and utility rates, to develop cost-benefit analyses from a variety of perspectives.

Project Goals

The goal was to develop the Solar + Storage Tool that can determine the cost effectiveness of DER technologies.

Project Benefits

This project developed a modeling tool, with feedback from Technical Advisory Committee members, that enhanced the existing Local Net Benefits Analysis (LNBA) tool developed by the project team under the CPUC's Distribution Resource Planning (DRP) proceeding. As a successor to the LNBA tool, this tool can perform the same analysis, but with a higher degree of accuracy and additional functionalities. In addition to the DER benefits evaluation provided by the LNBA tool, the Solar + Storage Tool can evaluate a suite of DER technologies and perform pro forma analyses to calculate total project costs. It's capable of simulating the operations of DERs under different tariff and program designs and determining the new designs that align the best uses of DERs for customers and for the grid and can maximize the benefits of DERs for ratepayers.