Title:  Valuation Methodology of Distributed Energy Resources Portfolios Based on an Electric Grid Business Model Innovation Framework for Renewable Energy Integration

Committee: 

Dr. Grijalva, Advisor      

Dr. Saeedifard, Co-Advisor

Dr. Harley, Chair

Dr. Ahmed

Abstract:

The objective of the proposed research is to develop a valuation methodology of distributed energy resources portfolios based on an electric grid business model innovation framework for renewable energy integration. Adoption of distributed energy resources (DER) such as solar photovoltaic generators, energy storage, demand response devices, energy efficiency and electric vehicles is expected to grow in the coming years. In response to this, regulators are transforming their electric utility planning and business models to a model that is customer and DER-centric. In the near term, these regulatory reforms call for the valuation of DER portfolios to avoid traditional electric utility distribution investments by allowing customers and energy service companies to offer DER services as alternatives. Therefore, there is a need for new and integrated methodology that allows to valuate DER portfolios and compare investment alternatives. Traditional valuation methodologies rely on average-system input assumptions that do not take into consideration the locational and temporal constraints of DER such as: the network topology, DER location, market prices, and how the DER are operated. This research proposes a valuation methodology of DER portfolios that consists of: 1) a system level architecture to identify the market regulations and market actors, 2) a prosumer-based benefit-cost framework to identify energy-service value categories, 3) an economic optimization at the bulk power system-level, 4) an economic optimization at the distribution system, 5) an economic-optimization based valuation method of DER portfolio services and economic impact metric. This research will provide electric utilities and regulators a valuation methodology to quantify the value of a DER portfolio located in a distribution circuit under different scenarios of DER forecast, location and dispatch schedules.