Change Request 2024-CRF-026

None at this time

As utilities determine optimal resources to add to their portfolio to ensure reliability, affordability, and to serve loads in accordance with state policies, it seems likely that emerging resource technologies will be considered.  This could include geothermal, hydrogen, long-duration energy storage, multi-day energy storage, or a variety of other technologies.  The ability of such resources to bolster resource adequacy, and to count toward compliance with required resource adequacy showings under the WRAP is a significant portion of the value of such resources to utilities.  

Under the current WRAP practices, it appears that resource types will not be accredited (i.e. receive a QCC value) until a participant utility shows it owns or has contracted for the resource.  (See BPM 105, Section 3.1).  With respect to emerging resource technologies, this means that the QCC value of the resource, an important piece of the value of the resource to the utility, cannot be known until the resource has been acquired.  And, because the resource is an emerging technology, there may be heightened uncertainty about how an accreditation for a QCC will play out.  In short, the accreditation process for emerging resource technologies may lead to a “chicken and egg” scenario, where utilities are hesitant to acquire emerging resources before knowing their QCC, and yet they will not know their QCC until they have acquired the resources.  Even though many emerging technologies are focused on trying to solve future challenges of the grid (including resource adequacy and reliability), this conundrum could lead to a situation where beneficial new technologies are not brought to the region’s grid or, at the least, such progress may be unnecessarily slowed.

The WRAP could include a process for emerging resources to be given an “indicative accreditation.”  Such an accreditation could be provided for emerging technologies where requested by a participant utility, or some number of participants or stakeholders.  This indicative accreditation would give participant utilities guidance about the resource adequacy value that would be expected from a resource, which could assist them in evaluating the overall business case for emerging technologies.  In order to receive an indicative value, a utility would not have to show ownership or rights to the resource.

Section 3.1 of BPM 105 sets forth the process by which resource registration occurs, and describes how that leads to an accreditation under the WRAP.  This language could be modified to describe that emerging technologies are able to receive an indicative accreditation.  Or, it could refer to a new subsection that describes the process for an indicative accreditation.

Section 3.1 could be modified to say, after the first full paragraph, “A Participant may request that a resource receive an indicative accreditation in order to give more clarity to the expected accreditation, or a range of potential accreditations, that such a resource would receive under the program, upon a showing that the resource is an emerging technology, for which the QCC value may be unclear. An indicative accreditation will be provided in accordance with subsection XX.XX.”   

A new section could then describe the process and conditions for receiving an indicative accreditation.  This description could include:

• Requiring a description of why an indicative accreditation is appropriate and beneficial;
• A requirement to provide available information about the resource to allow for a reasonable assessment, along the lines of the information provided for resources that are owned or contracted; 
• The conditions under which an indicative accreditation will be granted; and
• An explanation that the accreditation is indicative only, and not binding or necessarily an accurate assessment of any future accreditation of QCC.    

1. An indicative accreditation will allow Participant utilities to better understand the value proposition associated with emerging technologies, and would make the process of deploying beneficial new technologies in the region more efficient.  Given that many new emerging technologies are intended to benefit reliability and resource adequacy in new and important ways, this will benefit customers and provide utilities with more clarity around their choices as they evaluate what resource to acquire.  

    

2. Providing an indicative accreditation for emerging technologies will also benefit the WRAP program by allowing a process whereby ambiguities or uncertainties can be worked through prior to the time an actual, final QCC must be determined for new resource types.