2019 reliability request for offers (rfo) webinar · rfo schedule date action october 14, 2019 rfo...
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2019 Reliability Request for Offers
(RFO) Webinar
October 23, 2019
1
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
2
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
3
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-
rfo@ascendanalytics.com
■ 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
4
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
5
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
6
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:
CPA-storage-RFO@AscendAnalytics.com
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*
7
*Fast Track Eligibility - Projects with online dates on or prior to August 1, 2021 will be on an expedited
negotiation and contract award schedule
CLEAN POWER ALLIANCE
Project Eligibility
8
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
CLEAN POWER ALLIANCE
Project Eligibility (Continued)
9
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
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
10
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
11
CLEAN POWER ALLIANCE
Q&A Process
● All questions due by October 25 in writing to
CPA-storage-RFO@AscendAnalytics.com
● All questions responded to in writing and posted to RFO
website on November 1, 2019
12
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
CLEAN POWER ALLIANCE
Project Submittal Process Overview
● Projects bids should be submitted via email to CPA-storage-
RFO@ascendanalytics.com 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.
13
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
14
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
15
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
16
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
CLEAN POWER ALLIANCE
Wrap Up
● October 25 is the deadline to submit questions to
CPA-storage-RFO@AscendAnalytics.com
● 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
17
CLEAN POWER ALLIANCE 18
Q&A
CLEAN POWER ALLIANCE 19
Appendix
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
Slide 20
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
Slide 21
• Project does not demonstrate either preference or avoidance
criteria NEUTRAL
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
Slide 22
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
Slide 23
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
Slide 24
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