DREAM TF October 26 2015 Net Metering vs Dual Metering 1 Nodal vs Zonal Settlement for DERs The DER concept paper contemplates Optional exposure to Nodal or Zonal prices for DERs and limiting optionality to prevent unfair arbitrage ID: 772871
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DREAM TF October 26, 2015 Net Metering vs Dual Metering
1Nodal vs Zonal Settlement for DERs The DER concept paper contemplates: Optional exposure to Nodal or Zonal prices for DERs and limiting optionality to prevent unfair arbitrage Expected to be an economic decision for the DER Proposes dual metering as way to compensate DERs at an LMP price Metering is key to economics and customer decision making
October 23, 2015 2 Apollo Creed says, “Different Metering Arrangements Bring Different Benefits ” Net Metering (Single Channel with Detents) Net Metering (Single Channel , bi-directional) Net Metering (Dual Channel) Dual Metered (Two Separate Meters) Metering Meter spins forward or stops. Meter spins forward and backward. Separately measured consumption and production at point of metering. Two separate meters which measure gross consumption and gross production. “Netting” Netting can only be <= consumption in the instantaneous period. Looks more like EE than DG. Netting occurs regardless of timing Netting occurs behind the meter and possibly as a billing mechanism for net production. No netting, customers typically compensated via a buy all/sell all construct. Where it happens in ERCOT Nowhere that we’re aware of. NOIES IOUs/NOIEs NOIEs Customer Advantages Limited avoided cost benefits Full Retail Avoided Cost Lower metering costs Avoided Cost Benefits Lower metering costs Recent history has yielded sell all rate > retail rate. Easier to capture RECs Customer Disadvantages Prohibits customer from capturing benefits when production is > consumption. No temporal benefits. May result in taxable income More complex and expensive metering. Not able to mitigate demand based charges. May result in value of production that is < retail rate. May result in taxable income
3Examples of Dual Metering Programs in ERCOT Yo Adrian, t here are separate meters that measure gross consumption and gross production .