Battery Storage
Offsetting Rising Demand Charges?
June 9, 2015
About Us
Since 2009, TerraVerde has been California’s leading
independent energy advisor for K-12 Schools
Recognized leader in project development consulting
services: Energy Efficiency, Solar PV, Battery Storage
In house engineering, structured finance, financial modeling,
energy project contracting, Owner’s Rep services, project and
program management, and Asset Management Services
Serving all of California (offices in So Cal & Nor Cal)
Energy industry veteran principals are directly involved in
project development, financial analysis, technical specs
Unique engagement model mitigates project risks
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Presenters
Rick Brown, PhD, President
Ali Chehrehsaz, EVP Operations/Engineering
CA Schools Experience
Selected by 40 LEAs to assist in Prop 39 program
management
Conducted investment-grade audits and financial analysis for
over 150 LEAs and other public agencies
73 K-12 energy projects completed to date; another 34 sites
currently under construction
Completed over $82 Million in solar & energy efficiency
projects, on time and on budget; secured over $20 Million in
competitive low-interest financing (CEC Loans, Build America
Bonds, QSCBs)
Comprehensive experience with solar PV, energy efficiency,
battery storage, alternative financing, multi-site construction,
specification driven RFP processes, public agency-centric
policies and regulations, ADA, DSA, and turnkey design/build
management
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Battery Storage Projects
California Public Utilities Commission approved Battery
Storage “behind the meter” last year
We currently have 12 schools under construction; Burton
City Schools and Tulare City Schools
First ever over-the-counter DSA approval of K-12 Battery
Storage Project at Burton City Schools
Reserved Battery Storage rebates currently under
development at 59 sites
RFPs for reserved rebates to be released in July 2015
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Demand Charges
The Problem:
For many commercial customers the peak demand part of their utility bill can be 30–40%
of their total electric bill.
In recent years, California Utilities have received approval to increase demand charges at
alarming rates
In January SDG&E demand charges hit most San Diego County schools with 30%
increases
PG&E is currently trying to get rid of A6, the only “no demand charge” commercial
rate in CA
Demand Charges-How They Are Calculated:
Demand charges are calculated based on the highest peak demand during the
monthly billings cycle based on a 15 minute interval.
For example: if your school is on a rate structure where the demand charge is $15/kW,
and it is an unusually hot day, so your HVAC units are working extra hard to keep
classrooms at a reasonable comfort level, your demand may spike to 350 kW, resulting in
that month's demand charge $4,500
…even though the rest of the month your demand usually goes no higher than 200 kW; i.e., you
would have otherwise been charged $3,000, except for one 15-minute demand spike
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How Battery Storage Reduces
Demand Charges
Let’s first understand what’s under the hood
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Technology Review
Battery
Inverter
Cooling System
Communication System
Safety Disconnect
Controller
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How Battery Storage Reduces
Demand Charges
Installed behind the utility meter
Monitors building demand typically every 10 sec
Discharges to limit measured demand spikes
Smart algorithms “learn” customer behavior
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Battery Storage & Solar
While solar can significantly reduce the biggest part of an
energy bill (usage), solar energy by itself doesn’t reliably
reduce demand charges.
Working together, solar and battery storage offset both usage
and demand charges, a “perfect combination”
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Case Study: Burton City Schools
Let’s walk through an example day in the life of a School
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15 min Interval Analysis
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Original Demand Profile
“Baseline” (kW)
High Risk Demand Interval
(i.e. expensive demand charge!)
Note: Baseline is depicted before
installation of solar and battery storage.
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Expect Only Minor Demand
Reduction from Solar (kW)
Peak demand still in
place even after solar
Note: Due to the intermittent nature of solar production, it is advised
to assume no demand reductions in financial projections.
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Reduced Demand Profile with Battery
Storage (kW)
PEAK demand
reduction from
Battery Storage
(i.e. demand charge
savings!)
Desired demand cap of
75kW (i.e. “Set Point”)
Battery recharges
“after hours”
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Benefits of Energy Storage
Demand Reduction – Automated control system
discharges battery during periods of high demand to
avoid demand charges. Advanced algorithms “learn”
operating profile and respond (charge/discharge)
instantaneously.
“Smooth out” solar production profile – to avoid gaps
from weather variations
Back up power to critical loads during grid failure
SGIP rebate program currently provides $1.46/W
(approximately 50% of total capital cost)
“No capital investment” contracts are available - similar
to solar PPAs (share demand charge savings w/ investor)
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Energy Storage Feasibility Approach
Evaluate separate scenarios for solar only, battery
storage only, and solar + battery storage based on
operating profiles, site-specific parameters and future
conditions
Note: use15 minute electricity interval data for 1-3 years
Rank sites by cost effectiveness and savings potential
Consider different financing/contracts scenarios
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Applicable Utility Rates & Programs
Rate Structures
Solar “friendlier” Rate Structures have lower or no
demand charges
PG&E A6 & E19R; SCE Option R; SDG&E DGR
Self Generation Incentive Program (“SGIP”)
High demand for these incentives
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CBO’s Challenge
In looking at new technology, how do you achieve
verifiable cost savings, taking into account risks, that
match projections and expectations
Analyze large quantities of data, variables, and site conditions
across multiple facilities/sites
Evaluate many technologies and financing methods
Carefully evaluate and negotiate contract terms
Only go forward with highest value projects that can achieve
net positive cash flow savings with minimal upfront expense
Alleviate burden on staff and disruption to Operations: from
initial project development through implementation
Make sure there is on-going management of O&M, warranties,
performance monitoring and reporting
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Contact Information
Rick Brown, PhD, President
TerraVerde Renewable Partners, LLC
1100 Larkspur Landing, Suite 155
Larkspur, CA 94939
707-953-2885
Rick.Brown@TVRPLLC.com
www.TVRPLLC.com
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TerraVerde’s Experience
Projects Completed To Date: $82 Million
Projects Under Development: $45 Million
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Visalia USD
Clovis USD
Burton City Schools
Inyo County
Corcoran USD
Monterey Peninsula USD
Firebaugh Las Deltas USD
Golden Valley USD
Fowler USD
Eastern Sierra CSD
Rancho CA Water District
City of Davis
City of Woodland
City of Lathrop
City of Bishop
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What Our Clients Say
“TerraVerde
emphasizes education and transparency. We feel confident that they provide us an
unbiased assessment of the risks and benefits.”
Don Ulrich, Assistant Superintendant, Clovis USD
“TerraVerde is the best partner I have ever worked with in my 28 years of school construction
experience.”
Eric Cederquist, Superintendent, Fowler Unified School District
“TVRP paid special attention to our unique needs and requirements throughout the
development and implementation process. Most importantly, they have worked as a true
partner, providing information in a fully transparent manner and have worked collaboratively
with us to address issues and problems that inevitably arise during the development process.”
Steve Bolman, Superintendant, Petaluma City Schools
“It is my pleasure to provide my highest recommendation for TerraVerde. As their name
implies, they have truly become our partner in all energy matters. Every person that we have
worked with at TVRP knows our particular issues and concerns and is an integral member of
our team as we evaluate both solar and now Prop 39 projects.”
Robert Groeber, Assistant Superintendent, Visalia USD
“While we were in the process of developing our solar project, we had over ten contractors
participate in the mandatory site walk. One of the contractors said to me how fortunate our
district is to be working with Terra Verde. They said that there is never a question as to what is
expected of the contractors and that Terra Verde is very well organized which leaves little room
for mistakes or issues once the project begins.”
Tracy Tucker, MOT Director, Burton City Schools
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Best Practices:
Project Development
Phase 1: Planning, Project Development, Analysis, Recommendations
Set well defined goals & objectives
Gather all relevant data, perform in-depth discovery; assess project sites for further
consideration or disqualification
Prepare feasibility assessments and financial analysis for selected sites
Review finding & recommendations, finalize execution plan
Phase 2: Competitive Bidding, Contractor Selection, Contracts
Develop RFP & run competitive bid process with clear performance and construction specs;
use “client side” contract form documents and instructions that yield comparable scopes/pricing
Obtain best value at lowest possible cost by conducting rigorous value engineering and contract
negotiations
Phase 3: Project Management
Strong oversight of design, construction, commissioning & closeout process
Phase 5: Asset Management
Perform O&M services, daily systems performance monitoring, quarterly performance reports &
Preventive Maintenances logs, and detailed annual financial reports
Note: Best Practices Webinar http://www.casbo.org/?page=Prop39Webinar&hhSearchTerms=%22Webinar+and+Bid%22
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Best Practices: Asset Management
Monitor and Maintain Systems for Peak Performance
Monitor on continuous basis, compare to predicted output
Schedule and conduct preventive maintenance
Respond to alarms on a timely basis
Initiate warranty claims and dispatch technicians
Compare actual meter values to projected output and
identify cause of any discrepancies. Report findings
Provide quarterly production/performance reports
Provide annual realized savings report and future
maintenance budget forecast
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Battery Storage Preventative
Maintenance
Visual Inspection on all equipment
Damages
Torque marks
Thermal scan
Replace Consumables
Filters
Fuses
Lubricants
Testing
Battery Capacity Degradation
Inverter Efficiency
Meter Calibration
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TerraVerde + Green Button
TerraVerde is now integrated with the PG&E Green Button Connect Program!
This integration makes it quick and painless for us to obtain 15-minute interval demand
data from our clients.
It’s so quick, we can turn-around a battery storage feasibility study in no time.
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