Supporting Local Energy Production: SaskPower’s Net Metering & Small Power Producer’s Programs 1 Northern Greenhouse Workshop - Nov. 8, 2012 Darcy F. Kozoriz, B.Admin, CEM, CLEP Renewable Energy Program Leader dkozoriz@saskpower.com Outline • Power Generation in Saskatchewan • SaskPower’s Renewable Power Focus • Net Metering Program • Small Power Producer’s Program • Interconnection Process • Financing • Preferred Environmental Technologies 2 SaskPower Generates Electricity SaskPower operates: • Three coal-fired power stations • Seven hydroelectric stations • Six natural gas stations • Two wind facilities SaskPower also purchases wind, cogeneration, natural gas and heat recovery power from Independent Power Producers. 3 Formed through The Power Commission Act in 1929, SaskPower is a Crown corporation providing reliable, safe and sustainable electrical service to the province. 581 MW (14%) 853 MW (21%) 813 MW (20%) 161 MW (4%) 1,686 MW (41%) TOTAL NET CAPACITY = 4,094 MW Future: Windelectric/ Algonquin Power - 175 MW Large Scale Wind = 373 MW (8.7%) 4 SaskPower’s Energy Efficiency & Renewable Power Focus Demand Side Management A dedicated department to develop and deliver energy efficiency & self-generation renewable power programs to residents, business and industry. Goals by 2017 To obtain 100 MW of power savings at a cost less than building new generation. (8 MW from Net Metering & 2 MW from SPP) Programs (some of 2 dozen) • Fridge Recycling & Block Heater Timer Programs • Commercial Lighting Program • Geothermal & Renewable Power programs 5 SaskPower’s Customer-Side Renewable Power Programs 6 Customer-Side Renewable Power – Why is SaskPower doing this? • Capital offset: Customer’s purchase, install, and operate renewable power generation equipment. • Energy produced closer to where it is consumed: Less line losses = less energy produced at power plant. • Offsets some central power generation: Either at Peak Power demand times or the use of high cost generation at various times in the day. • Clean, green and local: Helps develop the green energy industry, creates local jobs - distribution, sales, installation (electrical contractors). • Empowering our customers to choose the source of their electricity. 7 Getting Started • Investigate energy efficiency and conservation opportunities first! • Identify your goals: – Offset your consumption; (Net Metering), or – Sell all power or just excess power at a fixed rate? (Small Power Producers) – Is your decision based on economics, producing your own power, contributing to the environment or all of the above? • Decide on your technology: – Solar PV, wind or other? www.cansia.ca www.canwea.ca – Understand the technology and the cost model of your choice; – Obtain three quotes; price, customer service & support, warranty. – Site location and installation are key to performance; 8 Net Metering Program • Program Details: – Use environmentally preferred generation technologies; – Up to 100 kW name plate generator capacity; – Primary purpose is to offset your consumption; • For homes or businesses using <13,000 kWh/ month – Bank the kWh credits for excess power delivered into the grid: • kWh credits at the same rate you pay for power; • kWh credits applied to your next month’s bill; • After 12 months any kWh credits are reset to 0; – Set your anniversary month to April – solar, September – wind, to maximize kWh credits – SaskPower owns all environmental and GHG offset credits. 9 Small Power Producer’s Program • Program Details: – Currently 10 participants (systems: 9 Wind, 1 Waste heat, 1 Solar PV, 1 CHP) – Use same environmentally preferred technologies as Net Metering; – Up to 100 kW name plate generator capacity; – Two options: • Sell all your power to SaskPower • Sell just your excess power to SaskPower – For farms/ businesses using >13,000 kWh/ month – 2012 Price SaskPower will pay is $0.09802/ kWh escalating 2% per year for a 20-year contract. (Low-impact Hydro could be up to 40-year contract); – Payments made annually for electricity generated; – SaskPower owns all environmental and GHG offset credits. 10 Interconnection Application Process Net Metering and Small Power Producers • All application forms, templates and processes are on SaskPower web site www.saskpower.com/sustainable_growth • Apply to SaskPower for Preliminary Interconnection Study – cost $300 (plus GST) • Items needed • Electrical single line diagram • Site plan diagram • Generator and inverter type with detailed specifications (CSA approved) • Interconnection costs involved • Bi-directional meter (approx. $300-500) • Electrical inspections permit ($200-300) • Transformer upgrade costs split 50-50 with customer (up to $35/kW of generator) • Customer pays for service upgrade costs • Contracts • Interconnection Agreement and Power Purchase Agreement • Total interconnection cost is approximately $1,000; • plus your costs for generator, installation, maintenance, etc. 11 Typical System Block Diagram Source: Saskatchewan Research Council 12 Financial Support SaskPower’s Geothermal & Renewable Power Loan Program • Both Net Metering and Small Power participants eligible. • Financial Incentives – $50,000 loan available through TD Financing Services for geothermal or renewable power generation systems: • SaskPower buys down the current rate by 3.5 per cent; • Five-year fixed rate, up to 15 years amortization. • Details on www.saskpower.com/save_power 13 Preferred Environmental Technologies • Technologies permitted for NM and SPP programs: – SaskPower’s definition of Preferred Environmental Technologies • • • • • • 14 Low-impact micro-hydro Small wind turbines Solar photo voltaic (PV) Biomass fuels (gas, liquids and solids) Flare gas Waste heat/ Heat recovery technologies Solar Photo Voltaic (PV) Source: Saskatchewan Research Council 15 Solar Resource Yearly PV potential map for latitude tilt and the 13 "PV hotspots” in each province and territory in Canada (NRCan, 2006) 16 Small Wind Turbines Source: Saskatchewan Research Council 17 Wind Resource Map of Annual Average Wind Speed in Canada (Walmsley, 1992) 18 Biomass and CHP CHP (Combined Heat and Power) • Term used to describe the process of producing both electricity and heat, at the same time. • Biomass Fuels (liquid, solid or gas): • Plant and animal matter, food waste (FOG-food, fats, oils and grease) or more commonly, wood in the form of wood chips or pellets; • Land fill gas. 6 kW methane gas CHP unit Source: Saskatchewan Research Council 19 Thank You. Darcy F. Kozoriz, B.Admin, CEM, CLEP Renewable Energy Program Leader dkozoriz@saskpower.com 306-566-3191 20