Customer-Side Distributed Generation. Net Metering and Small Power Producers

Transcription

1 Customer-Side Distributed Generation Net Metering and Small Power Producers Ian Loughran, P.Eng. DSM Program Leader Renewable Energy Programs phone:

2 Illustration Grid Connected Solar System Source: TechnoMagazin

3 Agenda Customer side renewable Distributed Generation (DG) Why? Future Growth Targets Energy efficiency and renewable energy generation Preferred environmental technologies SaskPower s DG Programs Net Metering and Small Power Producers programs Financial Support Getting started with Net Metering Customer feedback on program We re listening

4 Customer Side DG- Why? Customer s purchase, install, and operate renewable power generation equipment: Deliver all or excess power to the utility for cash or credit. Energy produced closer to where it s consumed: Less line losses = less energy produced at power plant. Offsets some central power generation Time of day; types of generation at various times in the day. Clean, green and local: Develops green industry, creates local jobs. Distribution, sales, installation (electrical contractors) Evolution of the distribution network Based on heavy global subsidization, renewable technologies becoming more viable in the coming decade.

5 Future Growth Targets SaskPower micro DG are part of the SaskPower supply plan via being included in the Demand Side Management corporate targets. Avoid capital expenditures for future power plants and thereby lowering the need for rate increases actuals: approx 0.5 MW of DG 2010 Target: 1.1 MW DG; Actual 1.4 MW currently 2017 Target: 10 MW DG SaskPower s generation capacity is 3800 MW today and will be approximately 4300 MW by 2017

6 Energy Efficiency Investigate Energy efficiency and conservation Technology Behaviours Example: Average home in Sask uses ~750 kwh/month. It is very achievable to reduce 100 kwh/month with small changes Add compact florescent lights (CFLs) Average home has 40 lights in it at $3.00 per CFL $ invested. Assume each light is a 60 W incandescent and replaced by 15W CFL and used 2 hours per day. 144kWh reduced to 36 kwh per month; reduction of 108 kwh per month $0.20/W; $0.03/kWh (based on 3 years life of CFL) Turn the lights, TV, entertainment centers and computers off when not using. Behavioural changes have no cost!!

7 Renewable Energy Generation Compare to a wind turbine or solar array at $5/W. ($5000/kW) Small Wind under 6 kw 6 kw small wind turbine can produce approximately 475 kwh/month. Approx 64% of monthly usage offset through a $30,000 investment $0.35/kWh (based on 11% capacity factor, and 15 year life, no maintenance costs) 6 kw solar array can produce approximately 475 kwh/month Approx 64% monthly offset through $30,000 investment $0.21/kWh (based on 11% capacity factor, and 25 year life, no maintenance costs) Energy efficiency cost: $0.03/kWh Renewable Energy Generation via: Small wind: $0.35/kWh Solar: $0.21/kWh Start with efficiency and behavioural changes, then install a small wind or solar renewable energy system

8 Preferred Environmental Technologies Technologies permitted for all programs: SaskPower s definition of Preferred Environmental Technologies Micro-hydro, wind turbines, solar photo voltaic (PV), biomass fuels (gas, liquids and solids), flare gas, and heat recovery technologies.

9 Solar Resource Yearly PV potential map for latitude tilt and the 13 "PV hotspots in each province and territory in Canada (NRCan, 2006)

10 Wind Resource Map of Annual Average Wind Speed in Canada (Walmsley, 1992)

11 Small Wind Turbines Source: Saskatchewan Research Council

12 Solar Photo Voltaic (PV) Source: Saskatchewan Research Council

13 Biomass and CHP CHP (Combined Heat and Power) Term used to describe the process of producing both electricity and heat, at the same time. Biomass Fuels (liquid, solid or gas): Plant and animal matter, food waste (FOG-food, oils and grease) or more commonly, wood in the form of wood chips or pellets; Land fill gas. 6 kw methane gas CHP unit Source: Saskatchewan Research Council

14 Customer-Side Renewable Distributed Generation Programs

15 Net Metering Program Program Details: Use environmentally preferred generation technologies; Up to 100 kw generator capacity; Primary purpose is to offset your consumption; Bank credits for your excess power delivered into the grid: Credit is at the same rate you pay for power; Credit will be taken off your next month s bill; After 12 months the credit is reset to zero. Net Metering policy states that SaskPower owns all environmental credits associated with power generation. Two-year contract.

16 Net Metering Program- Rebate Program Financial Incentives 35% rebate to total installed cost (max of $35,000 rebate): Administered through Sask Research Council (SRC); 35% total= 10% SaskPower Eneraction, and 25% Sask Go Green Fund. Rebate program was to officially end March 31, SaskPower has budgeted to continue the program for another year. Sask Environment s Go Green Unit is awaiting budgetary approvals for continuing the program beyond April 1, 2011.

17 Net Metering Billing Customers # of Customers Year (Nov.1) Per Year Cumulative

18 Net Metering Applications Per Year # of Customers Year Wind & Solar Solar Wind

19 Small Power Producers Program Program Details: Use environmentally preferred generation technologies; Up to 100 kw generator capacity; Two options: Sell all your power to SaskPower; Sell just your excess power to SaskPower. No energy banking is permitted; net metering rebate is not applicable Price SaskPower will pay is $ /kWh; Price will escalate at 2 per cent per year for the remainder of the contract; Small Power Producers policy states that SaskPower owns all environmental credits associated with power generation. 20-year contract.

20 Small Power Producers Program Original SPP program started in 1994; Five customers in program: Four customers with small wind turbines (40kW -108 kw); One customer using CHP through a joint demonstration project with SaskEnergy and SaskPower:

21 Financial Support- Renewable Energy Loan Both Net Metering and Small Power participants eligible. Financial Incentives $50,000 loan available through TD Financial Services for geothermal or renewable power generation systems: SaskPower buys down the current rate by 3.5 per cent; Five-year fixed rate, 10 years amortization. $10,000 $24, % $25,000 $50, % Any network upgrade costs are shared split 50/50 with customer to a max of $35/kW of installed capacity.

22 Getting Started Investigate efficiency and conservation opportunities first! Identify your goals: Offset your consumption; Desire rebate? (Net Metering) Or to sell all or excess power at a fixed rate? (Small Power Producers) Is the decision based on economics, producing your own power and/or to contribute to the environment? Decide on your technology: Solar PV, wind or other? Understand the technology and the cost model with each; Recommended to obtain three quotes; price, customer service. Site location and installation are key to performance;

23 Wind System Costs $120,000 $100,000 $80,000 Cost $60,000 $40,000 $20,000 $ Capacity (kw)

24 $70,000 Solar System Costs $60,000 $50,000 Cost $40,000 $30,000 $20,000 $10,000 $ Capacity (kw)

25 Getting Started Understand the total costs involved: SaskPower associated costs: Application and Preliminary Integration Study $315 (incl GST); Quote for interconnection and meter exchange (approx $ incl GST); Electrical inspections permit will be needed and will cost ($ ); Supplier Costs Quote; Generator; Installation; Maintenance Contact SRC Availability of rebate; Apply to either program through downloading the application on the SaskPower website. Items needed: Electrical Single Line Diagram. Yard layout and positioning of key equipment. Generator and inverter detailed specifications.

26 Typical System Block Diagram Source: Saskatchewan Research Council

27 Net Metering-Customer Feedback We re listening; Clearing credits after 12 months; not paying for excess energy delivered; Crediting across multiple accounts owned by the same customer; Interconnection process taking too long and too confusing; Islanding; aka operating when there is a grid outage.

28 Net Metering-SaskPower Response SaskPower is reviewing all feedback and suggestions: Currently developing policy change recommendations for future improvements. A new billing system will be implemented in the spring of A modified interconnection process is in development Systems of 20 kw will have a standard pricing for application, contract execution and bidirectional meter install. Systems > 20 kw will undergo PIS application and interconnection process. Website updates with: Customer facing 10 step process Examples of all relevant documentation Economic and performance examples. Current CSA standard /UL 1741 is anti-islanding protection. Continually monitoring technology options and other utilities programs to compare notes. GenerLink product for isolation has recently been approved.

29 Thank You Questions? Ian Loughran, P.Eng. DSM Program Leader Renewable Energy Programs phone:

30 Back Up Slides

31 Renewable Generators: Performance Expectations Small Wind Turbines Under 6 kw (rated capacity) 11% capacity factor is the average 6 kw and higher rating 14% capacity factor average Capacity Factors are higher in Swift Current area; Regina area Solar PV 14% capacity factor across all systems provincially (typically higher in the south of the province) How does capacity factor relate to energy? (Capacity factor X generator capacity (kw) X 8760 hrs/yr) 12 mo./yr = monthly energy generated (6 kw X 11% X 8760 hrs/yr) 12 mo./yr = 481 kwh/month The average house in Sask consumes 750 kwh/month A 6 kw small wind turbine would offset 64% of the monthly power consumed by the average home in Sask.

32 The Internal Process-Interconnection Net Metering Application for Preliminary Integration Study Customer sends to SaskPower office in Regina Starts S5 notification, sales order billing doc, receives cheque, processes payment via CSR, sends receipt to customer. Scans PIS form, single line diagram, yard diagram, generator and inverter specs into notification. Forwards notification to regional business office that will be taking care of customer. Business office Reviews application, ensures accuracy, sends to T&D engineering work center to complete study. T&D engineering Completes study; generates estimate; fills out Interconnection Agreement; forwards notification back to business office work center

33 The Internal Process-Interconnection PIS Application cont Regional business office Generates quote letter, and forwards this and Interconnection agreement to customer for acceptance. Customer Customer accepts; supplier installs wind turbine or solar array; arranges inspection permit; SaskPower Inspections performs inspection Customer performs commissioning/energizing tests and s results to T&D engineering. Business office Sends meter notification to metering services to install meter. Metering services Checks with inspections to ensure generator has passed If so, installs Bi-directional Net Meter Forwards notification to Billing Services to get customer set up; billing starts and close notification.

34 Step One- Education: Customer s viewpoint A) Renewable Energy Generation technology Wind? Solar? Other? B) Energy efficiency education. Investment in energy efficiency is always less expensive than generating additional energy. C) Contact SRC to confirm availability of rebate. Step Two- Application for Preliminary Integration Study (PIS) Contact SaskPower head office or your local business office to request an application, or visit the SaskPower website and download a PIS application form. The application cost is $315 (including GST). Please note that in this application you will need to include:» General site location map for generating facilities (yard diagram)» Equipment line diagram of all generation equipment, inverters, utility disconnect switch, panel (sub panel), main breaker connection, and meter.» Specification sheets on the generation equipment and any other non-standard equipment. All inverters must meet CSA, IEEE, and/or UL certification.

35 Customer s viewpoint Step 3- Receiving the Quote, Interconnection Agreement Once the PIS is completed you will receive a quote and a copy of the Interconnection Agreement from the SaskPower business office. This quote will include the total costs associated with connection and the meter exchange. It is also recommended you review the Net Metering Policy. Step 4- Signing the Contract Send the signed quote letter and signed Interconnection Agreement (ICA) with the payment to SaskPower. Step 5- Generation Equipment Purchase Customer to finalize the generation technology and arrange for this equipment to be installed on the property. If you change the technologies or equipment from what you submitted to SaskPower in the application and PIS you will have to apply again.

36 Customer s viewpoint Step 6- System Installation and Commissioning Have your contractor or supplier install your renewable energy generation system and ensure it is operating correctly. Step 7- Electrical Permit and Inspection Your contractor will obtain the electrical permit on your behalf through contacting SaskPower Electrical Inspections department. Step 8- Connection, Meter Changes, and Final Testing Once the inspection is complete the system can now be connected and commissioned, along with the meter exchange. The contractor must be on site with SaskPower persons» Metering Technician, Transmission and Distribution Engineer, and if requested, a District Operation s staff member.

37 Step 9- Billing Customer s viewpoint The meter will be read monthly Any credits generated during a specific month will be applied to the following month s bill. At the end of the year, any excess will be reset to zero. Step 10- Apply for the Rebate The 35% Net Metering rebate program is funded through the Ministry of Environment s Go Green Fund (25%) and SaskPower Eneraction (10%). The rebate program is administered through Saskatchewan Research Council. This enables a third party administration on the program and also provides a mechanism for measuring system performance, costs, and participation. Seven steps to receive funding under SRC's net metering program: ( ering/index.cfm)

38 Alternative Farm Energy Program Livestock water pumping incentive; Incents 50 per cent of the cost above $500 to a maximum of $500; Valid for the purchase and install of a solar- or wind-powered water pumping system for livestock; Saves running power lines to remote wells, dug-outs or streams; Program will continue in 2010.

39 Micro Hydro

40 30% Electricity Combined Heat and Power (CHP) or Cogeneration- Biogas Fuel 5% Radiation 100% Biogas Fuel 80% Total 50% Heat Source: Cummins Power Eco Systems 15% Flue Loss

41 Land Fill Gas 8.55 kw PV Panel System Source: DDACE Power Systems

42 Manure Methane in Canada Notes : (1) Estimated production 1996 Source : Statistics Canada Methane (CH4) generates approx 20 times more green house gases than CO2 Total Production estimated in 361 Million kg/day (1) 52% (beef cattle), 19% (dairy cows), 16% (hogs), 7% (calves), 3% (poultry) Manure production enough to produce biogas for 6,000 MWe Slide contents courtesy of Cummins Power EcoSystems

43 Biomass to Biogas Source: Cummins Power Eco Systems

44 Flare Gas Source: Curtis Engine