pls workshop september 18, 2012 greg miller ice energy terry andrews calmac manufacturing corp
TRANSCRIPT
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PLS WORKSHOPSeptember 18, 2012
Greg MillerIce Energy
Terry AndrewsCALMAC Manufacturing Corp.
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A SUCCESSFUL PLS PROGRAM FOR “BEHND THE METER” CUSTOMERS WILL INCLUDE:
• INCENTIVES THAT ARE LARGE ENOUGH TO ENCOURAGE PRIVATE COMPANIES– $1,000 PER kW SHIFTED FOR CHILLER BASED PLANTS– $2,000 PER kW SHIFTED FOR PACKAGED ROOFTOP INSTALLATIONS
• SIMPLE PROGRAM DESIGN– MEASURE LOAD SHIFTED FROM PEAK– kW OFFSET METHODOLGY (2008 & 2012 utility programs)– MEET CA BUILDING CODE, TITLE 24
• ABILITY TO COMBINE UTILITY PROGRAMS
• CPUC/IOU’s REBATE PROGRAMS OVERLOOKING SCALE AND ECONOMIC DEVELOPMENT OPPORTUNITIES FOR ENERGY STORAGE IN CALIFORNIA
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INCENTIVE LEVELS• OVER THE LAST DECADE THE VAST
MAJORITY OF INSTALLATIONS IN CA ARE IN PUBLICALLY OWNED FACILTIES
• PRIVATE FACILTIES (BEHIND THE METER) EVALUATE TECHNOLOGIES BASED ON THE RETURN ON INVESTMENT (ROI)
• PROPOSED INCENTIVE LEVELS WILL IMPROVE ROI SLIGHTLY, WILL NOT IMPACT MARKET DEVELOPMENT SIGNIFICANTLY
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INCENTIVE LEVELS• FOR CHILLER BASED SYSTEMS THE
INCENTIVE NEEDS TO BE AT LEAST $1,000 PER kW SHIFTED FOR PRIVATE COMPANIES TO INVEST IN THE TECHNOLOGY
• FOR PACKAGED ROOFTOP TECHNOLOGIES THE INCENTIVE NEEDS TO $2,000 PER kW SHIFTED FOR PRIVATE COMPANIES TO INVEST IN THE TECHNOLOGY
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PROGRAM DESIGN• FOCUS ON kW SHIFTED– EXTENSIVE ENERGY ANALYSIS
REQUIREMENTS WILL CAUSE SOME ENGINEERS TO AVOID THE PROGRAM
– THIS IS A LOAD SHIFTING PROGRAM, ENERGY USAGE IS FACTORED INTO THE PROCESS IN 2 WAYS:
– POORLY PERFORMING TECHNOLGIES WILL NOT PROVIDE SAVINGS TO THE BUILDING OWNER
– THE INSTALLATION MUST MEET CA CODE
• MEET CA BUILDING CODE5
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COMBINE PROGRAMS GAIN PROGRAM EFFICIENCIES IMPROVING CUSTOMER ADOPTION – LESSONS
LEARNED
• 2008-2011 SCE PLS PROGRAM– $1110/kW Customer incentive (8-12 year ROI)– 3 TES system delivered in 3 years
• 2012 SCE EE/PLS PILOT (combine programs)– PLS combined with Energy Efficiency
• SCE HVAC Optimization PLS ($1800/kW + HVAC replacement EE rebates)• Construction costs are lowered, program admin costs reduced • 6 months, 15 TES Systems Qualified for Rebates - in construction phase• Commercial Lease Program added to offset capital investment
• LESSONS LEARNED• Rebates must achieve 3-5 year payback to encourage market
adoption• IOU customers have limited cash availability during economic
stagnation– OBF encourages energy measure without investment risk – SCE 2012 Pilot Program did not Qualify for OBF– Customer are willing to invest in PLS/EE measure with financing
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PROGRAM DESIGN REQUIREMENTS FOR SUCCESS
• ELIMINATE ANNUAL ENERGY PENALTY (Sect. 4.1)– Why? This is a load shifting program, economics and code
compliance will eliminate inefficient systems.
• ELIMINATE REQUIREMENT TO REMAIN ON TOU RATE FOR 5 YEARS (Sect. 5)– Why penalize a building owner if he/she is still shifting peak
loads?
• INCLUDE COOLING TOWER LOAD FOR WATER COOLED PLANTS AS LOAD SHIFTED (Sect. 7.4)– For water-cooled chillers the cooling tower loads are also
shifted, need to be added to compressor efficiency to total the shifted load.
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COST EFFECTIVENESS• PLS HAS GREATER COST AVOIDANCE VALUE FOR UTILITIES THAN END
CUSTOMERS – PUBLIC POWER UTILITIES ARE PURCHASING MW SCALE STORAGE AT $2000-$3000/kW
JUSTIFIYING INVESTMENTS WITH ROI MODELS– Public Power compares PLS investment against other utility solutions (peak
power, market energy investments over 20-30 year terms)– TRC utility models are not used for large scale utility asset purchases
• MW SCALE PROCUREMENT PROVIDES CONTRACTUAL, FINANCE, PRODUCT MFG, DESIGN, AND CONSTRUCTION EFFICIENCIES THAT REBATE PROGRAMS CAN NOT ACHIEVE IN ONE OFF DEPLOYMENT
• COMBINING PROGRAM FOR EFFIECIENCIES– PLS, EE HVAC REPLACMENT, DEMAND RESPONSE, SMART GRID INTEGRATION
• ECONOMIC DEVELOPMENT VALUE IS OVERLOOKED BY IOU PROGRAMS– ICE ENERGY MOVED BUSINESS HQ TO CALIFORNIA IN 2012 – intent to captures SGIP to $400/kW
economic development incentive (not allowed SGIP program participation – ICE ENERY RE-INVESTS ~$1000/kW of $2170/kW MW scale Energy storage purchase
• i.e., $10 Million dollars of a 10 MW project is reinvested in engineering, – ICE ENERGY COMMITTED TO LIGHT MANUFACTURING/TESTING OF ICE BEAR PRODUCT WITH 6 MW
ENERGY STORAGE PURCHASE BY REDDING ELECTIRC UTILITY IN JUNE 2012– CITY OF REDDING ELECTRIC UTILITY RECOGNIZES UP TO 50% OF ENERGY STORAGE INVESMTENT GOES
BACK INTO THEIR COMMUNITY
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GLIMPSE OF CA ECONOMIC OPPORTUNITY AT UTILITY MW SCALE ADOPTION
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Burbank Water and
Power
Glendale Water &
Power
Redding Electric Utility
Riverside Public Utility Distribution
Feeder
Azusa Pacific
UniversityPeak Load (MW) 320 328 250 7 10C& I Customers 6,536 5,625 4,560 125 bldgs 17 BldgsPackaged HVAC Units Identified 16,340 15,120 8,257 226 91TES Survey Results (MW) 96 105.8 70 2.264 1.147TEST % of Peak C&I (MW) 30% 32% 28% 32% 11%Example - TES Adoption (MW) 19.2 21.168 14 2.264 1.147Utility Scale Price ($/kW) 2,170$ 2,170$ 2,170$ 2,170$ 2,170$ Utility Turnkey Investment ($) 41,664,000$ 45,934,560$ 30,380,000$ 4,912,880$ 2,488,990$ Economic Dev Value (@ $1000/kW) 19,200,000$ 21,168,000$ 14,000,000$ 2,264,000$ 1,147,000$
UTILITY TARGETED SURVEY
Survey Results - Projections