SCAP
Energy Management Committee Meeting
October 23, 2012
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• Customer Generation Team Introduction
• Interaction with Account Managers/Account Executives and
Customers
• Generation Technologies Workshop
• Recap
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Customer Generation Team
• Project Managers
– Bob Sliwoski (Lead) - Pax 42631
– Eugene Sedeno - Office 1(760) 951-3132
– Russ Lieu - Pax 43045
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• Provide education on alternate technologies and associated rules and tariffs to employees, customers, and community groups.
– Perform engineering economic analyses on customer generation projects, at customer request.
– Provide presentation support to clients and customers.
– Provide technical expertise and engineering economic analyses for internal SCE programs and organizations, such as Customer Energy Efficiency & Solar (CSI, SGIP and NEM programs),
Renewable and Alternative Power (RAP), and Energy Supply & Management (ES&M).
• Provide technical expertise on regulatory and legislative proceedings to help shape outcomes that may impact our customers and/or the company.
– Identify regulatory/legislative impacts and educate clients and customers.
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Account Manager/Executive Role
• Identify and monitor customer generation interest and activity
• Facilitate exchange of information
• Assist customer’s decision process
• Track progress by creating and updating Customer Care
Self-Generation Opportunity in CRM (Customer
Relationship Management) system
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• Meet with customers to identify needs
• Obtain copy of generation proposals, and Power Purchase
Agreements
• Perform Engineering & Economic Analysis
• Meet with customer and Account Mgrs/Execs to present analysis, risks, and benefits
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• Examples of when Account Management should contact us:
– Does the customer have significant interest in Self Generation?
– Does the customer have a corporate initiative to “go green” by installing renewable generation?
– Is the customer discussing Self Generation with vendors?
– Is the customer inquiring about rebates (Self Generation Incentive Program and
California Solar Initiative)?
– Is the customer receiving proposals for self-generation?
• Important Reminders:
– The Customer Generation team cannot perform Engineering Economic Analyses if the customer has a signed contract or letter of intent (LOI)
– Customer must provide a copy of the generation proposal before work can begin
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• Provides Opportunity to Discuss:
– Current customer needs and issues
– Details of customer’s operation
– Tariff changes/issues
– Generation costs, risks, and benefits
– Energy Efficiency programs and incentives
• More Important Reminders:
– SCE is neutral overall regarding Self Generation
– SCE does not promote or discourage Self Generation
– SCE recommends that customers pursue EE/DR first
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• Identify economics of generation
• Detail generation alternatives
• Facilitate customer decision process
• Reveal underlying issues and needs
• Dispel misleading information
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• Introduction
• Generation Technologies
– Applications
– Economics
– Performance
• Incentive programs
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• Electric generation with no heat recovery
Natural Gas
Electricity
Utility
Distribution
System
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• Electric generation plus heat recovery
Natural Gas
Electricity
Utility
Distribution
System
October 2012
Steam or
Hot Water
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• Internal Combustion Engines
• Small Gas Turbines
• Microturbines
• Fuel Cells
• Photovoltaics
• Wind Turbines
• Waste Heat Recovery-Generation
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• Internal Combustion
Engines
• IC Engines are derived from industrial diesel and automotive type engines
• Most mature of all DG technologies
• Range in size from 100 kW to 3,000 kW
• High potential for emergency standby
• Easily fueled by diesel, natural gas, or biogas
• Installed costs range
$1,500-$2,500/kW
• Heat Rate at full capacity
9,400-14,000 Btu/kWh
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• Small Gas Turbines • A small gas turbine is essentially a small jet aircraft engine
• Range in size from
1,200 kW to 10,000 kW
• Installed costs range
$1,300-$1,800/kW
• Heat Rate at full capacity
10,000-15,000 Btu/kWh
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• Microturbines • Same principle as small gas turbines
• Range in size from
30 to 250 kW
• High potential for cogeneration
• Installed costs range
$2,500-$3,000/kW
• Heat Rate at full capacity
11,500-15,000 Btu/kWh
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• Fuel Cells • Operating principle is conversion of chemical energy to electrical energy
• Energy conversion using fuel such as hydrogen and natural gas without a combustion process
• Environmentally benign
• Range in size from 200 to 2,800 kW
(typical installation – may be stacked to configure any desired size)
• Potential for cogeneration
• Installed costs range
$6,000-$8,500/kW
• Heat Rate at full capacity
8,000-9,500 Btu/kWh
(most efficient DG Technology)
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• Photovoltaics • Operating principle is conversion of sunlight directly to electricity
• Simple off-grid systems include PV modules, batteries, mounting structure, and associated wiring
• Environmentally benign
• Range in size from 10 to 1,000 kW
(typical installation – modules may be linked to configure any desired size)
• No cogeneration potential
• Installed costs range
$4,500-$7,500/kW
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• Wind Turbines
• Operating principle is conversion of the wind’s energy to electricity
• Typically wind turbines are rotating blades installed in areas with high, steady winds
• Each wind turbine range in size from
10 to 1,000 kW (individual turbines may be connected to produce a wind farm to yield a much larger capacity)
• No cogeneration potential
• Installed costs range $850-$2,500/kW
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• Fuel Cost
• Operating Hours
• Capital Recovery
• Thermal Recovery/Utilization
• Maintenance
• Utility Escalation Rates
• Tax Credits & Incentives
• Value of Displaced Power ($/kWh)
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Critical
Factors
Typical 60% load factor customer displaced power value range
75 -85% of Average TOU-8 Tariff Cost
DG Displaced
Power Value
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Gas Prices Fuel
And
O&M
Feasibility
Comparison
Bypassable
• Generation
• Some Demand
Charges
• kWh-based Delivery
Charges
Installed Cost
Capital
Recovery
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Generation Costs
October 2012
Non-
Bypassable
Utility Tariffs
• Customer Charge
• Some Demand
Charges
• Non-bypassable
Charges
• Standby/Backup
Charges
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• Directly impacts generation economics
– Allocation of fixed cost over the operating hours
• More Hours – Less $ per kWh
• Applications
• Office Buildings 2,200 hours
• Colleges, Hospitals, Prisons 8,760 hours
• Community Colleges
• Process Industries
4,000 hours
8,760 hours
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• Economic factors of cogeneration and self generation
– High operating hours
– Coincident electric and thermal loads
• Renewable generation (wind, solar, waste fuel, etc.)
– Space considerations
– Appropriate weather conditions
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• Net Energy Metering Program
– Available to solar, wind, and fuel cell generation using on-site bio gas (OBG) with a maximum installed capacity of 1000 kW or less*
– Generation credit for energy produced
• CPUC Self Generation Incentive Program (SGIP)
• California Solar Initiative (CSI)
• Other Feed-in-tariffs - AB 1613 , Water/Crest (AB 1969),
Net Surplus Compensation (AB 920)
*Note - SB 489 will revise the list of eligible technologies
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• The California Solar Initiative (CSI) program is designed to provide incentives for the installation and operation of solar photovoltaic (PV) projects
– Authorized by the California Public Utilities Commission (CPUC) and Senate Bill 1 (SB 1)
– The CSI program has a total budget of $2.165 billion to be used over 10 years (SCE has been allocated $996 million)
• Beginning on January 1, 2007, the CSI program pays:
– Performance-based incentives (PBI) for solar projects equal to or greater than 30 kilowatts (kW),
• Monthly payments based on recorded kilowatt hours (kWh) of solar power produced over a 5-year period.
– Expected performance-based buy down (EPBB) incentives to solar projects less than 30 kW
• An up-front incentive based on an estimate of the system's future performance
• Incentives as of June 22, 2012:
Sector
Residential
Commercial
Government/Non-Profit
EPBB Incentive (per watt) for projects below 30 kW
PBI Payment (per kWh) for projects 30 kW and larger
1
$0.090
$0.044
$0.139
1 Any size system may opt into the PBI program
$0.65
$0.35
$1.10
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• The Self-Generation Incentive Program (SGIP) provides financial incentives for installing new, qualifying self-generation equipment installed to meet all or a portion of the electric energy needs of a facility.
• SGIP Incentives:
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• Contact Customer Generation Team when customer expresses interest in Self Generation
• Ask customer if they have signed a contract, proposal or Letter of
Intent
• Identify customer needs
• Obtain copy of generation proposal and/or PPA
• Create Self Generation Opportunity in CRM and update as needed
• Meet with customer for final presentation of Engineering Economic
Analysis
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