0 public interest energy research program (pier) presented to california manufacturers and...
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![Page 1: 0 Public Interest Energy Research Program (PIER) Presented to California Manufacturers and Technology Association July 27, 2006 Martha Krebs, Ph.D. Deputy](https://reader035.vdocuments.mx/reader035/viewer/2022062618/5514894d550346b2598b4ebf/html5/thumbnails/1.jpg)
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Public Interest Energy Research Program (PIER)
Presented to California Manufacturers and Technology Association
July 27, 2006
Martha Krebs, Ph.D.Deputy Director
Energy R & D Division
California Energy Commission
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California Public Interest Energy Research Framework
Eff
icie
ncy
Ren
ewab
les
Cle
an F
oss
il
DemandResponse
Distributed Generation
Infrastructure, T&D
Environmental Assessment
Tra
nsp
ort
atio
n
• PIER was established in 1997 as part of Electricity Restructuring– $62.5 M annual funding for
electricity research – Expanded in 2005 by CPUC rule
to include natural gas research; will provide $24M by 2009
– Maintains capacity for applied energy research of benefit to electricity and natural gas ratepayers
– Leverages public and private investments to advance energy-related S&T to inform California decision makers and provide Californians with clean, affordable energy services
California’s PIER Program is directed by law and CEC policy guidance.
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2005 Integrated Energy Energy Action Plan II Policy Report
• Demand-Side Resources, Distributed Generation and Other Electricity Supplies
• Integrated Water and Energy Strategies
• Renewable Resources for Electricity
• Electricity Needs and Procurement Policies
• Transmission
• Natural Gas
• Transportation Fuels
• Global Climate Change
• Border Energy
• Energy Efficiency
• Demand Response
• Renewables
• Electricity Adequacy, Reliability and Infrastructure
• Electricity Market Structure
• Natural Gas Supply, Demand, and Infrastructure
• Transportation Fuels Supply, Demand, and Infrastructure
• Research, Development, and Demonstration
• Climate Change
California Energy Policy Framework
California energy policy supports CHP for California benefits.
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PIER R&D Successes- Integrated Combined Cooling, Heating and Power (CCHP) Module Reduces Emissions
• Integrated HVAC system for commercial and light industrial applications
• Generates electricity and manages engine heat to meet thermal loads and optimize absorption chiller performance
• 60% system efficiency
• Emissions below 2007 CARB limits
• Standardized factory assembly reduces cost
• Powered by 260 kW natural gas internal combustion engine (ICE)
• Field testing at Normandie Casino in Los Angeles
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PIER R&D Successes - Gas Driven Heat Pump Saves Electricity & Natural Gas
• Technology uses low-quality heat or waste heat to produce cooling without compression and provides heat for on-site processes.
• First 10 ton demonstration system installed in April 2004 at a chicken processing plant in Modesto.
• Recent Independent Test Results: From November 2005 through January 2006 the system averaged 28% savings per week in natural gas and 69% in electricity use.
• In December 2005 Foster Farms installed a 100 ton system. Other possible users: fruit, vegetable & meat processors, dairies and breweries. Utilities interested in technology to meet energy saving goals.
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CA Interconnection Time (Days)
0.0
50.0
100.0150.0
200.0
250.0
300.0350.0
400.0
450.0
2000 2001 2002 2003
Days toInterconnect
Days pastrequestedon-line date
New Rule
• Standardization is yielding real results
• Time to interconnect has decreased by over factor of 5
• Fees have dropped significantly also from over $5,000 down to $800 - $1,400 per application
– DG customers have saved over $26M and growing
• Collaborative, consensus driven process between government, utilities and DG industry is key to success
PIER R&D Successes - Interconnection Rule Standardization Reduces Costs and Improves Timelines
R&D has supported the CPUC and Energy Commission effort to develop standardized interconnection rules for distributed generation.
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• Establishes laboratory testing facility:– Diverse DG technology types– Penetration level– Grid stability– Interoperability
• Can simulate various feeder designs• Includes 3 test bays with complete data
acquisition and control• Results thus far have resulted in major
revisions to UL 1741 standard to ensure DG does not affect safety or reliability of T&D system
• Results also benefiting manufacturers by gaining understanding of how their interconnected systems interact with T&D system
• Next steps – voltage stability
DR-1
R
L
C
S1
S2
Distribution Transformer
S3 S4 Utility
DR-n
DR-2
Utility Measurement #1
Utility Measurement #2
Load Measurements
DR Measurements
Grid Effects Testing Success – DUIT Program
The DUIT project is providing the factual technical basis for all stakeholders to further refine and reduce the cost and time for interconnection.
PIER R&D Successes – Integration Testing Addresses Utility Concerns While Improving Safety Standards
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Market potential analysis for CHP identified cost/benefits, MW additions and policies necessary.
NPV Benefits through 2020 (2005$)
$(4,000)
$(2,000)
$-
$2,000
$4,000
$6,000
$8,000
$10,000
Bas
e C
ase
No
Ince
ntiv
es
Str
eam
linin
g
Hi R
&D
Incr
ease
dIn
cent
ives
Mod
erat
e M
arke
t
Agg
ress
ive
Mar
ket
Hig
h D
eplo
ymen
t
Mill
ion
s (2
005$
)
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
2020
Cu
mu
lati
ve C
HP
Pen
etra
tio
n (
MW
)
Total CHP Owner savings
Total utility operating margin lost
Total Societal Net Benefits
Cumulative MW
Wholesale Export Facilitated
Wholesale Export Difficult
Source: Assessment of California CHP Market and Policy Options For Increased Penetration, California Energy Commission, Publication #CEC-500-2005-173, November 2005.
PIER R&D Successes – Analysis of Policy Scenarios for Greater CHP Adoption Informs 2005 IEPR
2005 IEPR adopted policies consistent with this scenario.
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• These policy options include:– Electricity export, particularly for large CHP installations, through
approach similar to ‘net metering’ for renewables but at wholesale electricity price
– Transmission and distribution (T&D) payment through operating agreement for DG or CHP with physical assurance in capacity constrained areas
– Payment for availability during system peak times based on generation capacity value to improve resource adequacy
– Payment based on CO2 mitigation for CHP through production tax credit in $/kwh
PIER R&D Successes – Analysis of Policy Scenarios for Greater CHP Adoption Informs 2005 IEPR
Commission adopted policy recommendations to encourage beneficial CHP applications for California.
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Comparison of PG&E E20 S Electric Rates and Study Premised Gas Rates6/1/05 to 2/1/06
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
Demand6/1/2005
$/kw
Demand1/1/2006
$/kw
Energy 5/1/2005 ¢/kwh
Energy 1/1/2006 ¢/kwh
Gas 5/1/2005 $/MMBtu
Gas 1/1/2006 $/MMBtu
Pri
ce
(Un
its
on
X A
xis)
Summer Peak Summer Part Peak Summer Off-Peak Summer Non-Coincident Gas Price
Shifting in recent tariffs from Energy to Demand Rates with Increasing Gas Prices discourages CHP investment.
Demand RatesIncreased
Energy RatesDecreased
Gas PricesIncreased
PIER R&D Successes – Analysis of Rates and Tariffs Assesses Impact on Customer Business Case for CHP
Source: Evaluation of Policy Impacts On the Economic Viability of California-Based Combined Heat and Power From a Project Owner’s Perspective, California Energy Commission, Publication #CEC-500-2006-068, July 2006.
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• Standardize the structures of tariffs from utility to utility– Or new standard statewide structure for CHP
• Ensure that energy/generation component of tariff includes all energy and other variable costs
– Consider off-peak and NEM pricing based on “marginal” energy cost not average ¢/kwh
– Establish energy cost recovery mechanisms that synchronize with gas prices• Modify methods of assessment of demand charges
– Longer intervals - Perhaps weekly or daily– Minimize emphasis on “non-coincident” demand charges
• Apply exemptions from departing load charges to the 1st 1000kw– Rather than exempting only projects under 1000 kiwi
• Modify SGIP program to include operating incentives• Establish criteria for CHP Facilities that provide “net societal benefit”
– Provide special considerations for those facilities– Consider waiver of standby charges– Consider programs that can add further incentives for externalities
• Maintain ongoing and proactive analysis of impact of tariff considerations on owner’s economics
PIER R&D Successes – Analysis of Rates and Tariffs Assesses Impact on Customer Business Case for CHP
Study recommendations are consistent with IEPR recommendations but provide new more refined actions for California to consider.
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• PIER takes a balanced portfolio research approach across many topics
• CHP related research is both technology and analysis based
• Technology research is reducing capital costs while improving efficiency and emissions
• Analysis research is serving to inform policy makers in California to enact policies that
promote beneficial CHP deployment
Summary