Webinar: kW Incentives for Peak Demand Reductions Slide 1: kW Incentives for Peak Demand Reductions Script: This training session is brought to you by Southern California Edison (SCE). Content: Presented by CLEAResult Slide 2: Welcome! Meet your hosts Script: Today’s training is presented by CLEAResult, a third party consulting firm. My name is Eric Mullendore and I’ll be your presenter today. Joining me on the chat function in WebEx is my colleague, Bobbi Brunkalla. For the past two years, we’ve both been providing technical support services to SCE’s Customer’s Authorized Agents. I’ll be providing some contact information at the end of the session in case you are interested in taking advantage of these services. After today’s webinar we will provide a copy of the presentation to attendees. All phones are muted so please use the chat function to communicate and Bobbi will respond. Content: CLEAResult - Technical Support Services for Customer’s Authorized Agents CAASupport-Projects@sce.com Images: Photos of the hosts Slide 3: Agenda Content: • Increased Incentive Rate • Defining kW vs kWh • Defining Peak Demand • Example Projects Slide 4: Learning Objectives Script: Every training we do, we present the learning objectives within the first couple slides. Hopefully after the presentation you’ll be able to: Recall the incentive rate for kW in Customized Solutions Define peak demand reduction and kW Assess solutions for potential kW impacts Content: At the end of this session, you will be able to: • Recall the incentive rate for kW in Customized Solutions • Define kW and peak demand reduction • Identify solutions with relatively high kW impacts Slide 5: Defining Demand Slide 6: New Incentive Rate Content: Effective 7/1/2014, the incentive rate for kW in Customized Solutions has increased 50% to $150 / kW. Image: Screen shot of some Customized Solutions with a red box highlighting $150 per kW incentive rate. Slide 7: kW vs. kWh Script: For illustration purposes only. Graph not based on actual metered data. Content: Average Power Demand = 1 kW Time Period = 9 hours Total Energy Consumption = 9 kWh Images: Clip art of an engine. Graph of kW over time showing varying power demand and a flat line to show average demand. Slide 8: Comparing Customer and Utility Peak Script: In most commercial rate schedules, customers pay demand charges based on the demand during the highest 15-min interval. The graph shows a week’s worth of data for a customer with typical 7am5pm, Mon-Fri operating hours. You can readily see that the first two days are on the weekend and that at night the site is drawing just under 100 kW. Equipment that only operates during these hours is not contributing to the customer’s peak demand of 575 kW, which occurs on Tuesday afternoon at 3pm. For many customers this peak will be driven by a combination of high occupancy and high outside air temperatures. Not all customers are the same though so it’s important to understand operational hours of the site’s major energy consuming systems to understand how an energy efficiency project will impact their demand charges. The second graph might take a second to understand. On the Y-axis we see the total demand on the California electric grid, measured in megawatts. On the X-axis, we see the % of the hours in the year that the system had a demand of at least the value shown on the Y-axis. The key take way here is that the grid has to have a lot of extra capacity to serve the high demand that occurs on a relatively few number of hours. In fact in 2012, the grid required 6,000 MW of extra capacity for only 150 hours (that’s 15% of capacity being used for less than 2% of the year). These high demand hours are the result of the high aggregate demand of the customer base so it makes sense that they generally occur around the same time as most customers experience high demand, hot weekday afternoons. The last incremental capacity required to meet the grid’s peak load/demand tends to come from the most expensive and polluting generating resources that the system operator has available. These last facts explain why SCE and its regulators are so interested in demand reductions during hot summer weekday afternoons. Graphs are for illustration purposes only and are not based on actual metered data. Image: Two graphs, one of business customer demand and CAISO system load duration curve in 2012. The first graph shows the customer peak demand at 575 kW and the second one shows electric grid used last 15% of total capacity for only 150 hours. Slide 9: DEER Peak Demand Windows Script: SCE requires use of predefined peak demand periods to calculate demand reductions. The calculation should assess the average demand impact during this demand period, which is from 2p-5p on three consecutive business days. The exact date range varies by climate zone. You can determine the climate zone for your project using the Excel file located: http://www.energy.ca.gov/maps/renewable/Climate_Zones_Zipcode.xlsx. This information can also be found on the resources tab of the lighting calculator. The map image is a subsection of a map created by the CEC with the following DISCLAIMER: The California Energy Commission makes no warranties, whether expressed or implied, as to the suitability or accuracy of the product for any particular purpose. Any use of this information is at the user's own risk. For further information or suggestions concerning these maps, please contact: California Energy Commission- Energy Facilities Siting Division – Cartography Unit, 1516 9th Street, MS48, Sacramento, CA 95814. For any further questions, please call Terry Rose or Fui Thong at (916) 654-3902. Content: http://www.energy.ca.gov/maps/renewable/Climate_Zones_Zipcode.xlsx Images: Picture of Southern California with climate zones shown. A table of each southern California climate zones with hours and date ranges for peak demand periods. Slide 10: Example Projects Slide 11: Lighting Script: Graphs are for illustration purposes only and are not based on actual metered data. • Exterior lighting is not on so does not reduce demand during peak demand period. All energy savings occur at night. • Most interior lighting in a business environment is on during business hours so there is likely a significant demand reduction achievable by improving luminaire efficiency. One must consider the impact of controls on the baseline though. Daylighting controls and occupancy sensors are likely to reduce demand impact as well as total energy savings from luminaire efficiency. • Daylighting controls can also usually be expected to achieve a significant portion of max demand reduction during the peak demand period. It’s important to note that the Y-axis is a % of the max kW reduction achievable by each solution code. The maximum demand reduction achievable by each solution will vary considerably from site to site. Image: Table showing demand profiles for various types of equipment. Slide 12: HVAC Script: Graphs are for illustration purposes only and are not based on actual metered data. • Night setback will not reduce demand reduction during peak demand period. This is a good example of a solution that includes a load shifting component. The HVAC system will see increased savings in the morning as it brings the building back to occupied setpoints. • Supply air fans generally operate continuously during occupied periods, thus improving efficiency of the fans will reduce demand during the utility peak demand as long as the building is occupied during this timeframe (for example, many schools my be unoccupied in summer) • Evaporative pre-cooling is a great example of a solution that aligns with SCE’s peak demand goals. These systems are often activated only when it is hottest outside and so save the most energy on hot summer afternoons. Image: Table showing demand profiles for various types of equipment. Slide 13: Refrigeration Script: Graphs are for illustration purposes only and are not based on actual metered data. • Stand-alone condensing units, like are often used at restaurants or convenience store walk-ins, run intermittently or cycle throughout the day and night. The demand calculation will have to consider the average savings over the peak demand period, not just the highest reduction in demand. • Demand defrost controls are increasingly popular in the supermarket sector. While they present the opportunity to reduce annual energy consumption, they are unlikely to have a significant impact on demand unless the site has scheduled one of its defrost cycles during the demand period. Image: Table showing demand profiles for various types of equipment. Slide 14: Identifying Solutions with Demand Reductions Content: • Equipment operates during demand period • Solution improves efficiency at full load • Some solutions shift load from one time period to another Slide 15: Calculating Demand Reductions Content: • Identify the applicable DEER Peak Demand Period • Consider equipment scheduling • Bin analysis or energy modelling approach are generally required for weather-sensitive solutions • Adjust for intermittent operation • Use Coincident Diversity Factor in interior lighting calculations Slide 16: Calculating Payback with Demand Content: 1. π·ππππππ (πππππ) = π»ππππ πͺπππ ($)−π°ππππππππ ($) $ ) ππππ π¨πππππ πͺπππ πΊππππππ ( $ ππΎπ 2. π¨πππππ πͺπππ πΊππππππ (ππππ) = π¨πππππ π¬πππππ πΊππππππ (ππππ) ∗ $ $ π¬πππππ πΉπππ (ππΎπ) + π«πππππ πΉππ ππππππ(ππΎ) ∗ π«πππππ πΉπππ (ππΎ) Notes: • High demand reductions will increase incentives for Customized Solutions • Customer demand reduction may not equal calculated utility peak demand reduction • Consider impact of time of use rates Slide 17: Pause for Questions Image: Question mark clip art Slide 18: Resources Script: This webinar was only intended to give you a rough idea about what Title 24 is and how it impacts SCE’s demand-side management offerings. The resources will cover in the next section is where you want to go to learn more about how to ensure your projects are in full compliance with the standards. Slide 19: Successful Applications Start Here! Script: The latest version of the Solutions Directory is always available at: https://sceonlineapp.com/forms/Solutions%20Directory%20Q1%202013.pdf The Online Application Tool can be found at: https://www.sceonlineapp.com/ For technical support on your projects pre-application submittal, contact the Customer’s Authorized Agent Technical Support team (CAASupport-Projects@sce.com). Our team is here to answer your eligibility questions so that you can proceed with a project with confidence. We can also be a resource when you are trying to design a more comprehensive project for your customer. Regular editions of the Energy Solutions E-News are distributed monthly. This is a great resource for ongoing changes to SCE Offerings, and also includes articles covering frequently asked questions and announcements about training and education opportunities. To sign up for the Energy Solutions E-News, email CAASupport-News@sce.com. Lastly, you can view previous training sessions through this Online Learning Center, and send questions, suggestions or other feedback regarding trainings such as this one to CAASupport-Training@sce.com. This concludes our presentation of Customized Solutions. Thank you for your time. Content: 1. SCE’s Customer’s Authorized Agent Website www.CAASupport.com 2. Solutions Directory sceonlineapp.com/forms/Solutions%20Directory%20Q1%202013.pdf 3. Online Application Tool 4. Technical Support Service or call (800) 935-5112 5. Energy Solutions E-News 6. Training and Education Opportunities www.sceonlineapp.com CAASupport-Projects@sce.com CAASupport-News@sce.com CAASupport-Training@sce.com Slide 20: Additional Training Opportunities Script: You can send questions, suggestions or other feedback regarding trainings such as this one to CAASupport-Training@sce.com. Content: Navigating Qualified Products Lists August 27, 2014, 12:00pm – 12:30pm For more details, email CAASupport-Training@sce.com or watch for updates in The Energy Solutions E-Newsletter! Slide 21: Additional SCE Offerings Script: Check out SCE’s web site for details on these other Offerings. Content: Retrocommissioning Program, Demand Response Solutions, SCE Energy Education Centers Images: two pictures of SCE Energy Education Centers in Tulare and Irwindale. The letters “EE” in a green circle next to Retrocommissioning and “DR” in an orange circle next to Demand Response. Slide 22: Thank you for your time. Please complete your online evaluation.