Grid Services PIM

Design

  • Id
    20
  • State
    HI
  • Utility
    Hawaiian Electric Companies
  • Applicability
    Electric
  • Emergent Topic
    DER
  • Description
    This PIM is intended to be an interim mechanism focused on increasing the acquisition of grid services from DERs. The PUC expressed an intent to replace this PIM with a long-term DER Grid Services PIM that is intended tol incent the utilization of DERs for grid services.
  • Metric
    Any committed capacity newly acquired (kW) in the Oahu Scheduled Dispatch program (“SDP”) and the Oahu Fast DR program, up to a maximum financial reward of $1.5 million through 2023. This includes existing and installed DER capacity not previously providing service to the grid under the SDP, Fast DR, or an approved Grid Services Purchase Agreement (“GSPA”), that is enrolled by the utility into one of these grid services programs.
  • Target
    NA
  • Incentive Type
    Upside
  • Incentive Structure
    Fixed amount
  • Incentive Description
    Incentives for load reduction: Hawaiian Electric: $25.60/kW; MECO: $70.80/kW; HELCO: $70.80/kW Incentives for load build: Hawaiian Electric: $6.30/kW; MECO: $18.00/kW; HELCO: $18.00/kW Incentives for fast frequency response ("FFR"): Hawaiian Electric: $13.30/kW; MECO: $39.40/kW; HELCO: $37.10/kW The PIM is capped at a maximum financial reward of $1.5 million through 2023, with a maximum share of the financial incentive that may be awarded for grid services on Oahu of $1 million.
  • Start Date
    2020
  • End Date
    2023
  • Source: Original Docket
  • Source: PUC Order
  • Status
    Inactive (Performance Period Concluded)
  • PIM History Narrative
    This PIM was initially established in Docket 2017-0352, D&O 36604 for 2021-2022. In June 2022, the PIM POP was extended, the reward incentives modified, and the eligible programs expanded in D&O 38429, Docket 2018-0088. The design details in this entry have been updated to reflect the version modified in D&O 38429. In modifying/extending this PIM, the Commission recognized a variety of factors, including: (a) a critical need for peak capacity reduction that led to the approval of SDP programs on both Oahu and Maui, (b) the Companies expressed need for "an operationally significant amount of DER capacity before the Companies can integrate it fully into their system operations," (c), more experience managing DER capacity is needed to gain familiarity with its operational characteristics, and (d) that the COVID-19 pandemic posed challenges in achieving effective DER grid service program enrollment. The PIM modifications therefor are intended to support the Companies’ efforts and incentivize them to overcome programmatic, operational, or other obstacles towards procuring sufficient DER capacity to set the stage for large-scale, effective DER utilization.

Performance

  • Docket(s) for Performance Reporting
  • Performance Category
    Occasionally achieved
  • Performance Description
    The Companies claimed negligible kW of capacity additions in 2021 and did not claim a reward. In 2022, the HECO Companies claimed a reward for 5.6MW of capacity additions from load reduction capacity added via the Oahu scheduled dispatch program (also known as "battery bonus"). In 2023, HECO claimed capacity additions equal to 52MW, due to the signing of a contract for grid services with Swell Energy and increasing capacity additions to the battery bonus program, and earned a reward of $1M.
Performance Years
Created with Highcharts 12.2.0Performance Targets vs Actual PerformancePerformanceMin TargetMid TargetMax Target-50510152025303540455055202120222023

MW

Created with Highcharts 12.2.0Performance Incentives EarnedIncentive$0$300,000$600,000$900,000$1,200,000202120222023