Systematic DER Planning Unlocks Answers to Peak Growth Problems

Sometimes a thorny problem arises, and no obvious solution presents itself. One such case might be when an electric cooperative detects excessive growth in peak demand. There could be several potential solutions, but there must be a process to determine which is the right solution. NRTC Smart Grid Technology recently worked with Cuivre River Electric Cooperative, Troy, MO, and developed a distributed energy resources (DER) solution.

“When we looked at our numbers, summer growth was there. Energy sales were up, but the thing that really concerned us was winter peak growth of 5.5 percent, and that was causing us some problems,” Neal Harrell, supervisor of member engagement for Cuivre River EC said during a session at NRECA’s TechAdvantage conference last week. “We were running into issues … starting to affect our rate structure … affecting how we can compete.”

Rapid growth in demand for electricity combined with uncertainty over where to obtain additional capacity. Departments within the cooperative suggested different solutions. The marketing department wanted to put more emphasis on its existing thermostat and water heater rebate programs. The engineering department wanted to explore dynamic voltage reduction. Top management wanted an undefined “something big that’s really going to change things,” Harrell said. “All of us were pulling in different directions.”

About a year ago, Cuivre River EC CEO Doug Tracy began discussing the matter with NRTC. NRTC’s approach was to set up a systematic process for examining all sides of the problem. “How you could utilize historical data that you have access to already, and planning tools … in a process to identify potential DER solutions?” said Jacob Bailey, NRTC’s director of Smart Grid Technology (pictured above, right).

Josh Pepple, VP, Smart Grid Technology for NRTC (above, left) listed the many different interconnected factors, from generation through distribution, that were affecting load shape. “We really want to introduce the concept of relationships here, and it’s all the way from the meter within the line to that market and the value stream that’s available to be captured could fall anywhere,” Pepple said.

“Key takeaway from this, have a plan … You can model it, you can analyze it, with good data going in and good understanding of what your expectations are,” Pepple said. “All of this is very timely, because DER is becoming increasingly accessible.”

Milt Geiger, NRTC’s VP, Smart Grid Solutions, carried on the discussion of DER strategies during a “TechTalk” session at the TechAdvantage exhibit floor. Joined by representatives from NRTC DER technology partner PowerSecure, the session looked at planning from the perspective of key accounts.

Organizations in the community that tend to need backup power, such as hospitals or manufacturing facilities, may be considering issues such as pricing, time of use for peak shaving, and how to use renewable energy with the use of battery storage or advanced microgrid systems. “Instead of just grabbing that backup power and having it, how can you add value so it fits well in a broader cooperative story? Members are doing something, and you want to add value,” Geiger said.

Todd Jackson, PowerSecure’s VP, Strategic Development, emphasized the reliability DER provides to the key account. “Whether it’s a co-op or whether it’s municipal utility or one of the industrial utilities, there’s too many things that are out of control. So, we’re a great supplemental source of being able to supply members reliable and resilient energy,” he said.

Data centers are particularly challenging key accounts appearing in some rural communities. Joaquin Aguerre, PowerSecure director, Strategic Portfolio Development compared data centers to pharmaceutical plants and large manufacturing facilities in terms of the constraints they create for utilities.

“When a utility has constraints, microgrids are being installed today. That’s something that PowerSecure can provide. We can own it and provide energy as a service,” Aguerre said. “That technology is available today. It’s nothing new, just a use case which is new.”