PG&E Automated Demand Response (ADR) Incentives

Transcription

1 PG&E Automated Demand Response (ADR) Incentives for Ag Irrigation Pumps Last Updated June 2016 "PG&E" refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation Pacific Gas and Electric Company. All rights reserved. These offerings are funded by California utility customers and administered by PG&E under the auspices of the California Public Utilities Commission.

2 Incentives for Demand Response (DR) Ongoing DR Program Participation Incentives One-time Automated Demand Response (ADR) Technology Incentives Revenue for reducing electric load during DR events Incentives for: pump monitoring and control solution that enable participation in DR events automatically soil/plant moisture monitoring solution in the fields irrigated by participating pumps 2

3 ADR: Eligibility and Getting Started Eligibility Have at least one irrigation pump equipped with a PG&E meter that: records electric use every 15 minutes has at least two years of billing history Getting Started Call Sign Data Access Authorization Form to get no obligation estimate of potential ADR incentive amount Complete Program Application Form if want to proceed 3

4 ADR: Benefits Growers Receive Benefit One-time incentives to install ADR-enabled remote monitoring and control solution on pumps Ongoing payments for actively participating in an eligible DR program Details $200 per kw of calculated DR load reduction covering up to 100% of project cost The ongoing payment amount depends on the selected DR program As an example for illustration purposes, a portfolio of 10 pumps with combined power draw of 1,000 kw (equivalent to 1,340 hp) and 300 kw of combined DR load reduction, a grower might receive: $16,000 to $33,000 per year in bill credits participating directly with PG&E in Peak Day Pricing DR program, or/and $10,000 per year in cash participating through an aggregator in Capacity Bidding DR program 4

5 ADR: Benefits Growers Receive cont d Benefit Details Ability to remotely monitor pump on/off status, pump flow, and pump pressure Year-round Ability to remotely turn off pumps Year-round Ability to remotely monitor soil/plant moisture Advanced notification about an upcoming DR event Convenience of automated participation in DR events Ability to override pump shutdown during a DR event In the fields irrigated by participating pumps Text, , or phone call Pump control solution checks for DR event and shuts off pump if DR event is called Growers retain pump control Technical and administrative services Incentive estimation, application processing, support enrolling in a DR program, and ongoing connectivity support 5

6 ADR: Commitments Growers Make Commitment Participate in a qualifying DR program for at least 3 years Details Participate directly with PG&E: Peak Day Pricing Plan Demand Bidding Program* Participate only through an aggregator: Capacity Bidding Program Aggregator Managed Portfolio* * Note that new enrollment in Demand Bidding Program and Aggregator Managed Portfolio DR programs will be discontinued starting in Adjust irrigation operations when pumps are automatically and safely shut down during a DR event Conditions vary by DR program On average 15 events per year Usually between May 1 st and October 31 st Usually between 11AM to 7PM Lasting 3 to 5 hours With notification day-of or day-ahead 6

7 ADR: Project Milestones Application Project screening (Data Access Authorization Form ) Application Processing Project approval Installation Equipment installation Load reduction verification test (site visit) Payment 1 st incentive payment (60% of the incentive) DR season performance 2 nd incentive payment (40% of the incentive) 7

8 ADR: Calculating Technology Incentive Methodology: 1. Calculate 10-day baseline load values for each day in the given DR season(s), based on average of actual electric load for the 10 preceding non-holiday, non-dr event weekdays in the DR program time window). 2. Order the 10-day load values from greatest to smallest for May-Oct period. Assign the probability of DR event being called for each 10-day load value (e.g., July and August have higher probability than May and June). Create Load Frequency chart (below). 3. ADR incentives are calculated based on the 10-day load value that is exceeded 70% threshold of likely DR events. ADR incentive 450 kw * $200 = = $90,000 8

9 DR Programs Eligible for ADR Funding Growers participate in these DR Programs directly with PG&E Program Peak Day Pricing Plan Demand Bidding Program Details Events: 9 to 15 events per year between May 1 st and October 31 st 2PM to 6PM, Monday through Friday (non-holiday) day-ahead notice Incentives / Penalty: bill credits from May 1 st to October 31 st (rate schedule AG-4A, Ag-4C, or AG-5C) on DR event days, energy charge of $1 per kwh will apply, 2PM to 6PM Note that new enrollment in Demand Bidding Program DR program will be discontinued starting in

10 Peak Day Pricing Plan: Bill Example Source: 10

11 Program Capacity Bidding Program DR Programs Eligible for ADR Funding Growers can participate in these DR Programs only through an aggregator Details Events: max 30 hours per month between May 1 st and October 31 st 11AM to 7PM, Monday through Friday (non-holiday) day-ahead or day-of notice options Incentives / Penalty: 3 rd party aggregator helps a grower to nominate a load reduction bid for each month incentive/penalty depends on agreement b/w grower and aggregator incentives are paid in cash Aggregator Managed Portfolio The program is similar to Capacity Bidding Program Note that new enrollment in Aggregator Managed Portfolio DR program will be discontinued starting in

12 ADR: Project Example Project Summary 16 irrigation pumps, 60 hp to 200 hp 373 kw approved load shed potential $74,600 total incentive amount to install ADR-enabled remote monitoring and control solution on each pump (received in 2015) 77% of project cost covered by incentives Grower Profile Location Crops Water source Irrigation system Irrigation scheduling DR experience near Chico almonds, walnuts groundwater, surface water microirrigation using remote soil moisture monitoring participated in DR manually 12

13 ADR: Project Example cont d Key Challenges Selecting the combination of pumps to maximize the potential load reduction during a DR event Since less than a year of 15-minute meter data available, needed to use Time-of-Use meter data DR Participation Enrolled in Capacity Bidding Program (CBP) through NRG Delivered 103% of committed load shed in 2015 DR season Receiving an estimated $13,000 per year in ongoing CBP DR revenue Grower Profile Location Crops Water source Irrigation system Irrigation scheduling DR experience near Chico almonds, walnuts groundwater, surface water microirrigation using remote soil moisture monitoring participated in DR manually 13

14 ADR: Options for Technology Solutions TECHNOLOGY SOLUTION DISTRIBUTOR / INSTALLER DR PROGRAM AGGREGATOR Program co-implementers on behalf of PG&E: 14

15 ADR: Contacts Q & A Website: Phone: (855) Energy Solution Contact Stefaniya Becking, CAIS Senior Project Manager ADR in Ag Katherine Wang Senior Project Manager ADR in Ag Contact Info (510) x 223 sbecking@energy-solution.com (510) x 505 kwang@energy-solution.com 15

16 Appendices 16

17 Ongoing DR Revenue Example As an example for illustration purposes, a portfolio of 10 pumps with combined power draw of 1,000 kw (equivalent to 1,340 hp) and 300 kw of combined DR load reduction, a grower might receive $16,000 to $33,000 per year in bill credits participating directly with PG&E in Peak Day Pricing DR program, or/and $10,000 per year in cash participating through an aggregator in Capacity Bidding DR program. ** Assumptions The estimate of DR load reduction is based on actual pump use between May 1 st and October 31 st, in the DR program time window. The lower limit for Peak Day Pricing (PDP) estimate assumes all pumps are switched from Ag 4C to Ag 4C rate with PDP option. The upper limit for PDP estimate assumes: i) all pumps are switched from Ag-5C to Ag-5C rate with PDP option, ii) all pumps have 0 kw capacity reservation level. Both lower and upper limit for PDP estimate assume pumps are not used during DR events when super-peak charge applies. The Capacity Bidding Program estimate assumes equal split of DR revenue between an aggregator and a grower. Actual amounts will vary depending on specifics of participating pumps and aggregator contract. 17

18 Options for Participating in DR One-time ADR technology incentive $ available 18

19 Why Utilities Pay DR Incentives Demand Response (reducing customer load in response to utility request) Helps utilities to manage the grid. Sometimes it is cheaper for utilities to pay customers to reduce load to meet grid conditions than to build peaker plants to generate more power. Load Reduction due to DR Event DR Event 19