Building Bridges to Net Zero. Microgrid and Battery Storage Technologies

Transcription

1 Building Bridges to Net Zero Microgrid and Battery Storage Technologies 1

2 Building Bridges to Net Zero Demand Energy Intelligent Energy Storage Doug Staker 2

3 Distributed Intelligent Power Network In expanding deregulated markets, transactive control of distributed energy assets is how the future grid will be driven Storage is the enabler for this new paradigm in edge energy management The ability to integrate, aggregate, and intelligently control tens of millions of endpoints requires a robust management platform

4 NYC Load Duration Curve CECONY Service Area Load Duration Curve 13,600 13,000 12,400 11,800 11,200 10,600 10,000 9,400 8,800 8,200 7,600 7,000 6,400 5,800 5,200 4,600 4,000 Load Range (MW) 4,447 5,001 6,001 7,001 8,001 9,001 10,001 11,001 12,001 13,001 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 13,189 Number of Hours 664 1,596 2,102 2, ,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Number of Hours Generation and Transmission built to serve peak demand High cost for few hours Low system utilization Source: Consolidated Edison

5 Benefits of Distributed Storage UTILITIES Conversion of variable generation in to base load generation Better utilization of Transmission & Distribution resource Integration of Renewable Generation Better solution to Demand Response System balancing Load, Frequency Voltage Lessen the impact of EV Charging integration CUSTOMER SIDE Take Advantage of Market Price Incentives TOU & Demand Demand Response w/o load reduction Overall Load management Renewable Integrations Net Zero Disaster Response Services Minimize EV Demand Charges

6 Solar Peaker Plant Store Morning Solar Production Solar Power Firm Afternoon Solar Production with Stored Energy 400 kw/1600 kwh Solar Power 12:00:13 AM 12:30:09 AM 1:00:04 AM 1:30:06 AM 2:00:05 AM 2:30:05 AM 3:00:19 AM 3:30:04 AM 4:00:05 AM 4:30:05 AM 5:00:05 AM 5:30:05 AM 6:00:05 AM 6:30:04 AM 7:00:05 AM 7:30:05 AM 8:00:08 AM 8:30:12 AM 9:00:07 AM 9:30:11 AM 10:00:11 AM 10:30:06 AM 11:00:12 AM 11:30:06 AM 12:00:06 PM 12:30:11 PM 1:00:07 PM 1:30:15 PM 2:00:12 PM 2:30:06 PM 3:00:12 PM 3:30:06 PM 4:00:05 PM 4:30:06 PM 5:00:05 PM 5:30:05 PM 6:00:07 PM 6:30:05 PM 7:00:07 PM 7:30:05 PM 8:00:08 PM 8:30:06 PM 9:00:05 PM 9:30:06 PM 10:00:06 PM 10:30:05 PM 11:00:05 PM 11:30:05 PM Solar Production Time shifted to period of highest benefit All intermittent performance removed Increased Value should receive a higher FIT price/kwh

7 Turn-Key Intelligent Storage Next generation software with unique distributed network architecture Advanced Power and Energy technologies with modular, flexible architecture Complete solution, purpose built HW, SW and Services to manage holistic edge energy ecosphere

8 AC Coupled Storage + Solar

9 System Components Power Conversion System Master Power Panel Inverter

10 EnerSys VRLA 12V Batteries NexSys 12 Volt VRLA Battery Flame Retardant Case & Cover 250 Cycles per Year at 55% Depth of Discharge 5 Year Factory Warranty GREEN?. VRLA Batteries are 100% Recyclable at End of Life!

11 10 Barclay - NYC Glenwood Properties Barclay Tower Site Load Profile Configuration Application 58 Story Barclay Tower Manhattan (Tribeca) NYC 550 kw Peak Demand Bldg. Common Load 225kW/2MWhr Storage TOU Peak Shift Demand Charge Reduction Demand Curtailment Rate Program Payback ESCO Day Ahead Pricing, Demand Capping 4.8 yrs IRR 20% Assumptions 5 yr. Accelerated Depreciation 35% Tax rate No Incentives 11

12 Joule.System Dashboard

13 Glenwood s 1 MW Install Sites

14 Paramount Tower Paramount Tower Site Load Profile Configuration Application 240 E 39 th St. 424 kw Peak load 100 kw/ 400 KWh TOU Peak Shift Demand Charge Reduction Demand Curtailment 14

15 Manhattan Residential Hi-Rise Project Assumptions/Data Project Pro Forma (15 yr) System Price: Configuration Initial purchase: Den Solution $ 348,152 Power Conversion System (kw) 100 Implementation $ 145,418 Units 1 Battery Upgrade (Year 6 & Year 11) $ 223,200 Managed Services & Support $ 137,207 Storage Power Capacity (kw) 100 Total system price $ 853,976 Storage Energy Capacity (kwh Nameplate) 810 Income Credits / Incentive pmts: Building Load (Annual kwh) 2,470,400 Permanent Load Reduction Inentive $ 241,500 Building Peak Load (kw) 416 Demand Response Benefits $ Load Data Source Actual Billing Total income $ 241,500 Net price $ 612,476 Energy Supply Rates Baseline: ConEdison Solutions Fixed $ Savings: Post: Zone J DA (Yr 1 Avg) $ Lower energy charges $ 360 Lower demand charges $ 897,552 Demand & Deliver Tariff's Tax Savings (Depreciation) $ 285,193 Baseline: ConEdison SC9 1 Total savings $ 1,183,105 Modeled: ConEdison SC14 Standby NYSERDA Incentives $ Energy Lease Payments $ ROI $ $ 570,628 Federal Tax Rate 35.00% ROI % 66.82% State Tax Rate 7.10% IRR: 15 yr 29.82% Amount Financed $ Payback (in yrs) 2.92

16 NorthWestern Energy Site Load Profile Configuration Application NorthWestern Energy Helena, MT NWE Service Center 100 kw Peak load 50 kw/ 200 KWh with 10 kw of Solar TOU Peak Shift Demand Charge Reduction Demand Curtailment Feeder Relief 16

17 Briar Hill- Bronx- 100 kw Solar

18 100kW- Solar Storage System Project Assumptions/Data Project Pro Forma (20 yr) Load Information System Price: Building Load (Annual kwh) 455,480 Initial purchase: Den System $ 422,964 Building Peak Load (kw) 122 Solar System Price $ 480,000 Load Data Source 2014 Billing History + Solar Savings Total Initial System Price $ 902,964 Current Tarrif SC 9, Rate I Extended Costs: Post Tarrif SC 9, Rate III Reduced Financing Cost $ PCS & Battery Upgrades $ 132,000 Joule.System Configuration Managed Services & support (yrs 6 20) $ 191,387 Power Capacity (kw) 100 Solar O & M Cost $ 97,503 Energy Nameplate Capacity (kwh) 365 Total Exended Cost $ 420,890 Energy System Cycle Life 1,250 Total 20yr System Price $ 1,323,854 Energy System DoD (%) 58% Energy Operating Capacity (kwh) 212 Credits / Incentive pmts: Initial System Battery Life (yrs) 5 Peak Load Reduction Incentive $ 105,000 Cycles per year (yrs) 250 Demand Response Benefits $ Solar Incentives $ 72,500 Model Assumptions Subtotal Credit/Incentives $ 177,500 Energy Escalation Rate 3.0% Net price $ 1,146,354 Demand Escalation Rate 3.0% Federal Tax Rate 35.00% 20yr Savings: State Tax Rate 7.10% Lower energy charges $ 774,559 Roundtrip Efficiency 81.23% Lower demand charges $ 796,470 Tax Savings (Depreciation) $ 532,935 Solar Tax Savings $ 354,857 Total 20yr Savings $ 2,458,821 ROI $ $ 1,312,467 ROI % 99.14% IRR: 20 yr 21.65% Payback (in yrs) 3.17

19 Building Bridges to Net Zero Microgrid 101 Framing the Discussion Rory Christian Director, Clean Energy NY Environmental Defense Fund 19

20 What is a Microgrid MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

21 What is a Microgrid Localized Grid that can disconnect from main grid Ability to provide power separate on central power stations Resilient benefits during extreme weather & emergencies Scalable can support a single building, campus or community Diverse integrate multiple sources of power Flexible Multiple stakeholders or Single owner MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

22 What is a Microgrid Reliability Independence Peace of Mind Hope Source: US DOE MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

23 Supporting Environmental Goals MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

24 Regulatory PURPA/PUHCA NYS Public Service Law New York State Home Energy Fair Practices Act (HEFPA) NYS Department of Environmental Conservation DEC Part 222 Fire Department Multiple Utilities Department of Buildings MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

25 NY Prize Microgrid Competition MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

26 NY Prize Microgrid Competition Stage 1: Feasibility Studies February 2016 Stage 2: Stage 3: Design Design RFP is anticipated to be released in November 2015 with an expected due date in April 2016 for proposals. Stage 2 milestones will likely need to be completed by Q Project Build Out Project Build Out RFP anticipated Q32017 with an expected due date in March 2018 and awards in Q MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

27 Building Bridges to Net Zero Benefits and Challenges of Microgrid Technologies in Multifamily Buildings Dom Lempereur Director, Technical Services Enterprise Community Partners, Inc. 27

28 Benefits to Building Owners Provides greater control over energy consumption and cost management Dollars savings generated in several ways Decreased energy usage (higher efficiency systems) Participation in Demand Response programs Secured State and Federal rebates Reduced insurance premiums Source: smartgrid.gov MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

29 Benefits to Building Owners Additional Benefits also accrue In the event of extended power outages In the form of avoided evacuation, emergency services and repair costs MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

30 Benefits to Residents Microgrids provide a dependable source of back up power, allowing security and the convenience of remaining in place in case of power outage Offer ownership through innovative incentive models Offer improved air quality via clean distributed energy solutions MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

31 Benefits to Surrounding Neighborhood Provides backup power to critical infrastructure vulnerable to local power outages Offers a scalable systems that can supply smaller buildings Improves power quality and reliability Drives economic development MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

32 Challenge #1: Economics Implementation costs are expensive Utility savings can t be the only deciding factor Often requires third party financing (challenge of PPA agreements in subsidized housing) Operation and maintenance: equipment may require acquiring new expertise MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

33 Challenge #2: Contracting With External Entities Can strengthen a microgrid BUT could also be very challenging to implement Sizing microgrid to include critical facilities Energy procurement Liability of entity hosting microgrid system MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

34 Challenge #3: Technology Choices CHP vs. Emergency Generators Combustion technologies vs renewables MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

35 Challenge #4: Legal and Regulatory Compliance with a variety of municipal, state, and federal requirements Requires extensive coordination with local utility (standby tariffs) Public Right of Way MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #

36 Building Bridges to Net Zero MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO - Microgrid Site Selection Dan Leonhardt Senior Energy Policy Associate Pace Energy and Climate Center 36

37 Microgrids and Resiliency Our recent focus has been on resilient microgrids: Black Start Capability Functional During Prolonged Outages Electrical Resiliency Thermal Resiliency Remember: Boiler plants need electricity to function! MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

38 Resiliency: Energy Requirements On site renewables can play a role, especially with storage, but not to the exclusion of other DER Renewables and/or storage are not adequate for long term outages (several days or more) Thermal energy needs far exceed electrical needs, especially in the Northeast Consider the example of a NYC multifamily housing campus in 2013: ~350 units and ~400k sqft (next 2 slides) MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

39 KWH 400, , , , , , ,000 50,000 ANNUAL ENERGY USE THERMS 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 0 ELEC KWH HEAT THERM MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

40 2,500 ANNUAL ENERGY USE 2,000 1,500 1, JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Assumes 1 therm = ELEC MWH HEAT MWHt MWHt MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

41 Combined Heat and Power (CHP / Cogen) This technology forms the core of a resilient microgrid Gives Thermal and Electrical Output Offers On Going Cost Savings Lowers Carbon Emissions MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

42 Multi Stakeholder Complimentary Loads MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

43 Backup Generators CHP is a Better Choice Backup generators: Are dead assets sitting unutilized most of the time Are not providing value while idle Are more prone to failure in their time of need Do not provide the cost offsets of avoided thermal energy consumption that s available from CHP systems Generators are sometimes are needed to fill niche gaps in functionality or capacity (e.g., quick startup for healthcare) MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

44 Microgrid Site Selection Criteria Good CHP Candidate: Presence of Natural Gas Economies of Scale Close Knit Campus Existing Thermal and/or Electrical Distribution Network High Energy Prices Upcoming CAPEX Other Considerations: Potential Partners Nearby Demand For Resiliency Shelter in Place Center of Refuge Critical Infrastructure Business Continuity MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

45 Pace and Enterprise: NYCHA Microgrid Site Selection Tool (work in progress shown with dummy data) Special Mention: Gearoid Foley ICHPS Inc. MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

46 Takeaways 1. CHP is core provides and pays for resiliency 2. Economies of scale 3. On site renewables and storage can be integrated 4. CHP is preferable to backup generators 5. Implement conservation and efficiency measures first 6. Align with capital plan(s) wherever possible MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

47 Thank you! Dan Leonhardt Senior Energy Policy Associate Pace Energy and Climate Center MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO Microgrid Site Selection 29 OCT

48 Thank You Dan Leonhardt Senior Energy Policy Associate ENERGY.PACE.EDU MULTIFAMILY BUILDINGS 2015: BUILDING BRIDGES TO NET ZERO #