2019 reliability request for offers (rfo) webinar · rfo schedule date action october 14, 2019 rfo...
TRANSCRIPT
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2019 Reliability Request for Offers
(RFO) Webinar
October 23, 2019
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CLEAN POWER ALLIANCE
Agenda
● Housekeeping
● CPA and RFO Overview
● Project Eligibility
● Communications and RFO Q&A Process
● Project Evaluation and Selection
● Webinar Q&A
● Wrap Up
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CLEAN POWER ALLIANCE
Introductions
Clean Power Alliance
Natasha Keefer
Director Power Planning
& Procurement
Ascend Analytics
David Millar
Director, Resource
Planning Consulting
Ascend Analytics
Daniel Weingarten, PhD
Senior Energy Analyst
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CLEAN POWER ALLIANCE
Housekeeping
● Audio – Disabled but please keep phone on mute
○ Questions during the webinar must be submitted via the text chat
window during the webinar. Questions will be answered in the time
available at the end of the presentation.
■ Additional questions should be emailed to cpa-storage-
■ All submitted questions will be answered along with all emailed
questions in the Q&A responses posted on Nov 1.
● Video – Disabled
● This presentation will be available after the call
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CLEAN POWER ALLIANCE
Who is CPA
● A Joint Powers Authority,
CPA has 31 member
jurisdictions within Los
Angeles and Ventura counties
● CPA launched service to
customers in February 2018
● CPA serves over 1 million
customer accounts and is the
largest CCA in the state
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CLEAN POWER ALLIANCE
RFO Overview and Goals
● Goal: Solicit and evaluate offers from energy storage facilities to
meet CPA’s incremental capacity procurement obligations, to
achieve its environmental objectives, and to offer its customers
cost-competitive, clean energy options
● CPA seeks to enter into one or more long-term Power Purchase
Agreements (PPAs) with energy storage facilities in the range of
10-100 MW of 4-hour duration capacity
● All bidders must submit conforming offers
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CLEAN POWER ALLIANCE
RFO Schedule
Date Action
October 14, 2019 RFO issuance and Q&A open
October 23, 2019 Bidder Webinar to discuss RFO process at 3:00pm PT
October 25, 2019Deadline to submit Q&A questions. Submit questions to:
November 1, 2019 Q&A responses posted to the CPA RFO website
November 11, 2019 Deadline to submit RFO Proposals at 5:00pm PT
December 19, 2019 Bidders notified of shortlist status
December 2019 –
May 2020PPA negotiations and awards*
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*Fast Track Eligibility - Projects with online dates on or prior to August 1, 2021 will be on an expedited
negotiation and contract award schedule
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CLEAN POWER ALLIANCE
Project Eligibility
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Contract Type
• Tolling agreement for standalone energy storage
facilities capable of offering Energy, Resource
Adequacy (RA), and Ancillary Services.
Installed Capacity
• No less than 10 MW and no greater than 100 MW
capacity with 4-hour duration.
• For each compliant project, Bidders may also
submit one (1) alternative offer with a duration
shorter than 4 hours (see protocol for details)
Contract Term • 15 years
Location• Within or outside of California, with deliverability
to the CAISO grid.
COD • On or prior to August 1, 2023
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CLEAN POWER ALLIANCE
Project Eligibility (Continued)
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Scheduling
Coordinator• Buyer
Pricing• Fixed $/kW-month with zero percent (0%) annual
escalator
Pricing Offers
• Bidders may submit two (2) offers per facility. This
includes one (1) primary pricing offer and one (1)
alternative duration offer as discussed under
“Installed Capacity”
Seller Security
Requirements• $90/kW of Contract Capacity
Additional guidance is provided in detail in the
RFO Protocol and CPA Form Agreements
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CLEAN POWER ALLIANCE
Ascend Analytics’ Role
● Ascend Analytics will be supporting CPA’s initiative by
administering and organizing the RFO and analyzing project
economic value
● Ascend Analytics offers the following:
○ Standardizing and collecting all submitted data
○ Using advanced sub-hourly software analytics engine to
ensure accurate and consistent project evaluation
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CLEAN POWER ALLIANCE
Communication
● All documents are posted to the RFO website.
● Email alerts or Developer Notifications are distributed through
Ascend. Register on the RFO website for alerts and
notifications.
● CPA and Ascend Analytics will NOT accept phone calls
regarding this RFO
○ All communication must be in the form of email
● RFO Website: https://www.ascendanalytics.com/cpa-storage-rfo
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CLEAN POWER ALLIANCE
Q&A Process
● All questions due by October 25 in writing to
● All questions responded to in writing and posted to RFO
website on November 1, 2019
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NOTE: If it is discovered that a Bidder contacts and receives
information from any CPA personnel, board director or alternate
outside of this Q&A process, CPA may, in its sole determination,
disqualify such Bidder’s proposal from further consideration
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CLEAN POWER ALLIANCE
Project Submittal Process Overview
● Projects bids should be submitted via email to CPA-storage-
[email protected] by the submission deadline with a subject
line of “CPA 2019 Storage RFO Submission”.
● Submissions must include the following attachments, as detailed in the
RFO Protocol:
i. Fully completed Offer Form template
ii. Project Narrative
iii. Redlined energy storage agreement
iv. Executed non-disclosure agreement
v. ArcGIS file of project’s geospatial footprint
● To access RFO materials, participate in Q&A, and receive notifications, all
Bidders must register online at: https://www.ascendanalytics.com/cpa-
storage-rfo.
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CLEAN POWER ALLIANCE
Quantitative Evaluation
● Proposals will be evaluated based on energy and capacity value
● Valuation will be performed using Ascend Analytics’ storage
optimization tool, optimizing dispatch for maximum revenue
across day-ahead, real-time, and ancillary markets
○ In order to qualify for RA capacity, all projects will be
modeled as bidding all capacity (assessed as a 4-hour
duration resource) into the DA market during the hours of 4-
9pm (HE17-HE21)
○ All undispatched capacity remaining after DA market
clearing will be optimized for dispatch in RT and ancillary
markets
● All projects will be assessed for market performance against the
relevant project Pnode
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CLEAN POWER ALLIANCE
Evaluation Criteria
● Individual projects will receive a rank for each of the following
criteria:
● CPA will also be collecting data on projects that may not be
used directly for project ranking but will assist in screening
projects for short-list eligibility
● CPA reserves the right to remove short-list eligibility for any
project with an identified material risk
Environmental Stewardship
Workforce Development
Quantitative Evaluation
Development Risk
Project Location
Benefits to DACs
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CLEAN POWER ALLIANCE
Contracting
● Offers will be evaluated holistically, including any desired
revisions to standard terms
● Bidders must submit any proposed changes to CPA’s forms of
PPA and term sheets via redline along with bids no later than
the RFO deadline of November 11th
● CPA does not intend to provide collateral or performance
security in connection with any PPAs that it may execute in
connection with this RFO
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NOTE: Changes to CPA’s standard contract terms submitted
after the response deadline may result in disqualification of
the offer and forfeiture of the Shortlist Deposit
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CLEAN POWER ALLIANCE
Wrap Up
● October 25 is the deadline to submit questions to
● November 1 the Q&A will be posted on the RFO website and
CPA Website: https://www.ascendanalytics.com/cpa-storage-rfo
● November 11 is the deadline to submit RFO Proposals
● Webinar recording will be posted to RFO website and CPA
Webpage
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CLEAN POWER ALLIANCE 18
Q&A
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CLEAN POWER ALLIANCE 19
Appendix
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CLEAN POWER ALLIANCE
Developer Risk
Projects will be ranked from High to Low
● The developer risk metric is a composite rank based on a
number of factors impacting project risk:
○ Site control
○ Interconnection status
○ Environmental screens
○ Land use and permits
○ Project financing
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CLEAN POWER ALLIANCE
Environmental Stewardship
Projects are ranked high, medium, neutral, and low based on
the following prioritization:
• Demonstrates multiple benefits (provides additional societal,
health, economic, water saving, or environmental benefits beyond
the climate and GHG reduction benefits of renewable energy)
HIGH
• Located in an area designated as a preferred renewable energy
zone and received required land use entitlement permitsMEDIUM
• Project is located in a high conflict areaLOW
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• Project does not demonstrate either preference or avoidance
criteria NEUTRAL
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CLEAN POWER ALLIANCE
Workforce Development
Projects will be ranked high, medium, and low based on the
following prioritization:
• The project will use targeted-hire, union labor, or multi-trade
project labor agreements (including requirements for state-
apprenticeship graduates)
HIGH
• The project does not have a labor agreement, but can
demonstrate prevailing wage, union labor, and targeted hire
commitments
MEDIUM
• The project does not demonstrate prevailing wage, union labor,
and targeted hire commitmentsLOW
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CLEAN POWER ALLIANCE
Project Location
Projects will be ranked high, medium, and low based on the
following prioritization:
• In Los Angeles and Ventura countiesHIGH
• Other counties within CaliforniaMEDIUM
• Out of state projectsLOW
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CLEAN POWER ALLIANCE
Benefits to DACs
Projects will be ranked high, medium, and low based on the
following prioritization:
• Located within a DAC and demonstrates DAC
workforce and community development benefitsHIGH
• Project not located within a DAC but can
demonstrate DAC benefits and has completed
community outreach
MEDIUM
• Project does not demonstrate DAC benefitsLOW
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