SM
Project Management Technical Services
Customer Generation Team
SCAP
Energy Management Committee Meeting
October 23, 2012
October 2012
EDISON INTERNATIONAL®
SM
Overview
• Customer Generation Team Introduction
• Interaction with Account Managers/Account Executives and
Customers
• Generation Technologies Workshop
• Recap
Page 2
October 2012
EDISON INTERNATIONAL®
SM
Customer Generation Team
• Project Managers
– Bob Sliwoski (Lead) - Pax 42631
Page 3
– Eugene Sedeno
- Office 1(760) 951-3132
– Russ Lieu
- Pax 43045
October 2012
EDISON INTERNATIONAL®
SM
Customer Generation Team Activities
• 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.
Page 4
October 2012
EDISON INTERNATIONAL®
SM
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
Page 5
October 2012
EDISON INTERNATIONAL®
SM
Customer Generation Team Role
• 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
Page 6
October 2012
EDISON INTERNATIONAL®
SM
When Should Account Management Contact Us?
• 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
Page 7
October 2012
EDISON INTERNATIONAL®
SM
Customer Meeting with Self-Generation Decision
Makers
• 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
Page 8
October 2012
EDISON INTERNATIONAL®
SM
Results of Engineering & Economic Analysis
•
•
•
•
•
Page 9
Identify economics of generation
Detail generation alternatives
Facilitate customer decision process
Reveal underlying issues and needs
Dispel misleading information
October 2012
EDISON INTERNATIONAL®
SM
Generation Technologies Workshop
October 2012
EDISON INTERNATIONAL®
SM
Overview
• Introduction
• Generation Technologies
– Applications
– Economics
– Performance
• Incentive programs
Page 11
October 2012
EDISON INTERNATIONAL®
SM
Self Generation
• Electric generation with no heat recovery
Natural Gas
Electricity
Utility
Distribution
System
Page 12
October 2012
EDISON INTERNATIONAL®
SM
Cogeneration
• Electric generation plus heat recovery
Natural Gas
Electricity
Steam or
Hot Water
Utility
Distribution
System
Page 13
October 2012
EDISON INTERNATIONAL®
SM
Distributed Generation Technologies
•
•
•
•
•
•
•
Page 14
Internal Combustion Engines
Small Gas Turbines
Microturbines
Fuel Cells
Photovoltaics
Wind Turbines
Waste Heat Recovery-Generation
October 2012
EDISON INTERNATIONAL®
SM
Distributed Generation Technologies
• Internal Combustion
Engines
•
•
•
•
•
•
•
Page 15
October 2012
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
EDISON INTERNATIONAL®
SM
Distributed Generation Technologies
• Small Gas Turbines
Page 16
• 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
October 2012
EDISON INTERNATIONAL®
SM
Distributed Generation Technologies
• Microturbines
Page 17
• 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
October 2012
EDISON INTERNATIONAL®
SM
Distributed Generation Technologies
• Fuel Cells
•
•
•
•
•
•
•
Page 18
October 2012
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)
EDISON INTERNATIONAL®
SM
Distributed Generation Technologies
• Photovoltaics
•
•
•
•
•
•
Page 19
October 2012
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
EDISON INTERNATIONAL®
SM
Distributed Generation Technologies
• Wind Turbines
•
•
•
•
•
Page 20
October 2012
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-$2,500/kW
EDISON INTERNATIONAL®
SM
Distributed Generation Performance Summary
Page 21
October 2012
EDISON INTERNATIONAL®
SM
Combined Cycle Plant
Page 22
October 2012
EDISON INTERNATIONAL®
SM
Distributed Generation Economics
Major Factors
•
•
•
•
•
•
•
•
Page 23
Fuel Cost
Operating Hours
Capital Recovery
Thermal Recovery/Utilization
Maintenance
Utility Escalation Rates
Tax Credits & Incentives
Value of Displaced Power ($/kWh)
October 2012
EDISON INTERNATIONAL®
SM
Distributed Generation Economics
Typical 60% load factor customer
displaced power value range
75 -85% of Average TOU-8 Tariff Cost
Critical
Factors
Gas Prices
Fuel
And
O&M
Feasibility
Comparison
Bypassable
Capital
Recovery
NonBypassable
Generation Costs
Utility Tariffs
Installed Cost
Page 24
DG Displaced
Power Value
October 2012
• Generation
• Some Demand
Charges
• kWh-based Delivery
Charges
• Customer Charge
• Some Demand
Charges
• Non-bypassable
Charges
• Standby/Backup
Charges
EDISON INTERNATIONAL®
SM
Distributed Generation Economics
Typical Operating Hours
• Directly impacts generation economics
– Allocation of fixed cost over the operating hours
• More Hours – Less $ per kWh
• Applications
•
•
•
•
Page 25
Office Buildings
Colleges, Hospitals, Prisons
Community Colleges
Process Industries
October 2012
2,200 hours
8,760 hours
4,000 hours
8,760 hours
EDISON INTERNATIONAL®
SM
Attractive Applications
• 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
Page 26
October 2012
EDISON INTERNATIONAL®
SM
Current Incentives
• 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
Page 27
October 2012
EDISON INTERNATIONAL®
SM
California Solar Initiative
•
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
EPBB Incentive (per watt)
for projects below 30 kW
Residential
Commercial
Government/Non-Profit
1
Page 28
$0.65
$0.35
$1.10
PBI Payment (per kWh)
for projects 30 kW and
larger1
$0.090
$0.044
$0.139
Any size system may opt into the PBI program
October 2012
EDISON INTERNATIONAL®
SM
Self-Generation Incentive Program
•
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:
Page 29
October 2012
EDISON INTERNATIONAL®
SM
Recap
• 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
Page 30
October 2012
EDISON INTERNATIONAL®