Workshop II. Best Practices & Case Studies: Economic Benefits of Distributed Solar in Ohio. Wednesday, February 20, p.m. to 3:15 p.m.

Transcription

1 Workshop II Best Practices & Case Studies: Economic Benefits of Distributed Solar in Ohio Wednesday, February 20, p.m. to 3:15 p.m.

2 Biographical Information Dan Smies, Managing Director, Business Development AEP OnSite Partners, 303 Marconi Blvd., Columbus, OH Dan is responsible for leading the AEP OnSite Partners business development team and helping the company grow its portfolio of customer centric energy assets through helping customers manage their energy cost by implementing asset-based products and services. With over 15 years in the energy industry, Dan brings an extensive breadth of knowledge and experience in various leadership roles in several regulated and non-regulated electric utility companies, including Integrys Energy Group (now WEC Energy Group), Integrys Energy Services, and Wisconsin Public Service Corporation. Dan started his career in corporate treasury, and has held various positions with increasing responsibility in regulated renewable development, wholesale power marketing, competitive energy asset development, and generation dispatch strategy and analytics. Peter Protopappas, CEM, Business Development AEP OnSite Partners, 303 Marconi Blvd., Columbus, OH Peter is a business-minded energy engineer and certified energy manager focused on energy savings and conservation in the US with diverse experience in consumer product development, batteries and energy storage, fuel cells, solar technologies, and building energy systems. His specialties include: Energy Technologies, Risk Analysis, Data Mining, Operational Strategy, Lean Six-Sigma, Operations Management, Product Development Engineering, Project Management, Energy Management, Energy Storage He manages project development, acquisitions, and strategy for AEP's unregulated distributed energy resources business, AEP OnSite Partners. In this role, he evaluates acquisitions and develop projects to install behind the meter customer energy solutions such as solar PV, battery energy storage, CHP, peaking gen, fuel cells, VFDs, and substations. AEP OnSite Partners is a wholly owned subsidiary of American Electric Power.

3 Best Practices & Case Studies: Economic Benefits of Distributed Solar in Ohio supplier. AEP Energy is an affiliate of AEP Ohio. AEP Energy is not soliciting on behalf of and is not an agent of AEP Ohio. AEP Ohio customers do not need to purchase any competitive retail electric service from AEP Energy to receive or to continue to receive non-competitive retail

4 AEP OnSite Partners Provide capital for behind the-meter (BTM) systems and technologies, including: solar, combined heat and power, energy storage, waste heat recovery, energy efficiency, and peaking generation resources. Provide customers with greater control and options that are reliable and provide longer-term price stability. Share strong market knowledge, fundamental engineering, develop new energy innovations, and creatively structured partnerships with customers to save money. 2

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6 AEP OnSite Partners Behind the Meter (BTM) Solar in Ohio Sites currently Operating in Ohio: Clyde: 3.6 MW-dc Ada I & II: 2.07 MW-dc Yellow Springs: 1.01MW-dc Columbus: 0.1MW-dc Newark: 1.06 MW-dc Granville: 2.3 MW-dc

7 Energy Supply Costs Solar Impacts Solar Impacts More than Just Energy 5

8 Solar PV Single Axis Tracking vs. Fixed Tilt Systems Tracking Extends Solar Peak Capacity and Increases Ability to Drive Coincident Peak Savings 6

9 Benefits & Tariff Analysis Solar Energy (PV) Ground Mounted & Roof Typical Customer & Product: Values Renewables & Long Term Energy Security High On Peak, Low Off Peak Usage AEP Energy Product: True Demand Projects pay for themselves and offer savings Requires transmission pass-through Mainly Municipalities in AEP and ATSI Ground mounted solar needs 4 6 acres/mw Typical customer contracts years Technology Benefits Peak Demand Reduction Capacity Transmission 7

10 Capacity and Transmission Savings from Solar AEP Zone 500 kw of reduction = $30,054 of annual savings with PLC values of $164.68/MW Day *Analysis aligns PJM published PLC and NSPL hours from with PVSyst production data using SolarAnywhere v2.3 time series data near Central Ohio. Resulting reduction shown is for a 1 MW DC array for all three scenarios. *2014 and 2015 NSPL winter peaks

11 Capacity and Transmission Savings from Solar AEP Zone 500 kw of reduction = $30,054 of annual savings with PLC values of $164.68/MW Day *Analysis aligns PJM published PLC and NSPL hours from with PVSyst production data using SolarAnywhere v2.3 time series data near Central Ohio. Resulting reduction shown is for a 1 MW DC array for all three scenarios. *2014 and 2015 NSPL winter peaks NSPL peaks occurred

12 Energy Costs RT LMP Values and Daily Irradiance Comparison of Real Time LMP values and irradiance *Analysis uses OSU.138KV.T1.PJMRT nodal point as representation of Columbus Real Time LMP values. Irradiance values were obtained from Clean Power SolarAnywhere v2.3

13 Case Study: Solar Over Sizing Ohio Municipal Load Actual developer sizing for customer load. Approximately 2300 hours of yearly export. Expensive to customer with small benefit. Some developers will oversize system to fit land available *Analysis uses customer load data from 1/1/2017 through 12/1/2017. Solar production is based on Clean Power SolarAnywhere V3.2 TMY3 data.

14 Case Study: Correct Solar Sizing Ohio Municipal Load Updated size system for same customer Approximately 10 hours export In this case, limited opportunity because flat load produces small demand benefits, or energy only benefits Regulated customer without control of PLC/NSPL

15 Case Study: Ohio Solar 2017 Annual Savings Analysis 13

16 Adaptable Design 25 Year PPA: 2.3 MW-dc, ~3,000 MWh/yr Annually 14

17 Value Drivers Value Stacking with Solar in Ohio PPA Price vs Effective Energy Price Waterfall Effective Energy Price REC Value Energy Savings Transmission Savings Capacity Savings Solar PPA Added Qualitative Benefits Sustainability Goals Exemplify Good Environmental Stewardship Diversify Electric Supply and Realize Behind the Meter Benefits 15

18 Solar Build Costs Solar Energy (PV) Ground Mounted $6.00 $0.24 $0.22 $5.00 $0.20 $0.18 $4.00 $0.16 $0.14 $3.00 $0.12 $0.10 $2.00 $0.08 $0.06 $1.00 $0.04 $ EPC ($/w) PPA ($/kwh) $0.02 $0.00 EPC Year Bonus Dep 50% 50% 100% 50% 50% 50% 50% 50% 50% 100% 100% 100% ITC 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 26% 16

19 Contracting Options Power Purchase Agreement (PPA) vs Direct Ownership Third Party/PPA Pros: No Up Front Cost Behind the Meter (BTM) Benefits Fixed Priced Energy Eliminate Operating Risk Eliminate Maintenance Risk Long Term Energy Partner 24/7 Monitoring Cons: Savings realized over time Direct Ownership Pros: Energy Savings Behind the Meter (BTM) Benefits Depreciation/Tax Incentives when possible Cons: Up Front Cost Operating & Maintenance Risk Production Risk 17

20 Dan Smies AEP OnSite Partners O: M: Peter Protopappas AEP OnSite Partners O: M: