PG&E Automated Demand Response (ADR) Incentives

Transcription

1 PG&E Automated Demand Response (ADR) Incentives for Ag Irrigation Pumps Last Updated April 2018 "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 One-time DR Program Participation Incentives Automated Demand Response (ADR) Technology Incentives Revenue for reducing electric load during DR events Incentives for: pump monitoring and control solution that enables 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 At least one irrigation pump equipped with PG&E meter (no minimum pump horsepower) & At least one year of billing history. A time-of-use (TOU) meter is acceptable for billing history, but a PG&E meter that records electric use every 15 minutes must be installed prior to project completion. Getting Started Call for assistance. To get no obligation estimate of potential ADR incentive amount, log on to your PG&E account ( and authorize access to energy usage data for Energy Solutions using Share My Data feature. To place your project in the queue to be processed, complete ADR Program Application Form and it to pge-adr@energy-solution.com 3

4 ADR: Ideal Candidate Ideal Candidate for ADR Program Has several irrigation pumps that use electricity supplied by PG&E Has been pumping on peak in the last 1-2 years (~11 a.m. 7 p.m., weekdays, May 1st to October 31st) For 3 years, able to shift pump use when asked (on average ~15 times a year from May 1st to October 31st) Interested in subsidized pump control, pump flow meters, pump pressure sensors as well as soil/plant moisture monitoring equipment 4

5 ADR: Summary of Eligible Costs Costs that can be Covered by ADR Incentives Hardware for pump control, pump flow meters, pump pressure sensors Hardware for soil/plant moisture monitoring Telemetry hardware Labor for installation and commissioning Telecommunication fees for three years Project management costs 5

6 ADR: Benefits Growers Can Receive Benefit $$$ Details One-time incentives to install ADR-enabled pump controls and optionally remote soil/plant moisture monitoring devices $200 per kw of calculated DR load reduction covering up to 75% of project cost Ongoing payments for actively The ongoing payment amount depends on the selected participating in an eligible DR DR program program Example As an example for illustration purposes, for a portfolio of 10 pumps with combined power draw of 1,000 kw (equivalent to 1,340 hp) and 300 kw of calculated DR load reduction, a grower might receive: $60,000 in one-time ADR incentives and $16,000 to $33,000 per year in bill credits participating directly with PG&E in Peak Day Pricing DR program, OR $10,000 per year in cash participating through an aggregator in Capacity Bidding DR program. Note: 1 hp = 0.75 kw or 1 kw = 1.34 hp 6

7 ADR: Benefits Growers Can 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 In the fields irrigated by participating pumps Advanced notification about an upcoming DR event Text, , or phone call Convenience of automated participation in DR events Pump control solution checks for DR event and shuts off pump if DR event is called Ability to override pump shutdown during a DR event Growers retain pump control Technical and administrative services Incentive estimation, application processing, support enrolling in a DR program, and ongoing connectivity support 7

8 ADR: Commitments Growers Make Commitment Details Qualifying DR Programs: Peak Day Pricing Plan Capacity Bidding Program Participate in one qualifying DR program for at least 3 years More advanced qualifying DR Programs: Demand Response Auction Mechanism Supply Side Pilot Excess Supply Pilot Conditions vary by DR program Adjust irrigation operations when pumps are automatically and safely shut down during a DR event On average 15 events per year Usually between May 1st and October 31st Usually between 2 p.m. to 7 p.m. with day-ahead notification Events lasting 1 to 4 hours 8

9 ADR: Project Milestones Application Project screening Application processing Project approval Installation Equipment installation (incl. configuring connection to DR server) Load shed verification test (site visit) Payment 1st incentive payment (60% of the incentive) After 12 months, 2nd incentive payment (40% of the incentive) 9

10 DR Programs Eligible for ADR Funding Growers participate in Peak Day Pricing Plan directly with PG&E Program Details DR Events 9 to 15 events per year Between May 1st and October 31st 2 p.m. to 6 p.m., Monday through Friday (non-holiday) Day-ahead notice Peak Day Pricing Plan (PDP) Incentives / Penalty Bill credits from May 1st to October 31st (rate schedule AG-4A, Ag-4C, or AG-5C) On DR event days, energy charge of $1 per kwh will apply, 2 p.m. to 6 p.m. PDP Plan offers bill protection (participation for the first 12 months is risk-free; customers who would have done better on their applicable Time-of-Use rate than on PDP Plan will receive a credit for the difference) 10

11 Peak Day Pricing Plan: Bill Example This customer saved $583 this month with PDP: $796 in credits $213 in penalty charges 11 Source:

12 DR Programs Eligible for ADR Funding Growers can participate in Capacity Bidding Program through a 3rd party or directly with PG&E Program Details DR Events (for the prescribed option) Max 30 hours per month, max 5 events per month Between May 1st and October 31st 11 a.m. to 7 p.m., Monday through Friday (non-holiday) Day-ahead notice Capacity Bidding Program (CBP) Incentives / Penalty (when participating through an aggregator) 3rd party aggregator helps the grower to nominate a load reduction bid for each month Incentive/penalty depends on the agreement b/w the grower and aggregator Incentives are paid in cash (typically once a year) 12

13 DR Programs Eligible for ADR Funding Growers can participate in these more advanced DR programs Program Details Demand Response Auction Mechanism (DRAM) EnerNOC is a registered DRAM provider and serves ag industry. Supply Side Pilot (SSP) Excess Supply Pilot (XSP) Aggregator (called Customer Demand Response Provider) bids the customer into the CA Independent System Operator (CAISO) energy market. Aggregator bids the customer or customer bids directly into energy wholesale market. Olivine is a pilot administrator and CAISO scheduling coordinator ( Customer needs to increase energy use when asked. Olivine is a pilot administrator ( 13

14 DR Participation Strategies DR Participation Strategy Description Shift Irrigation Adjust irrigation schedule and irrigate outside of DR events (most common strategy). Use of Reservoir Use well pumps outside of DR events to move water into reservoirs, then rely on booster pumps with smaller power draw to irrigate fields as needed. Use of Variable Frequency Drive With the use of Variable Frequency Drives (VFDs) on pumps, lower pump power draw during DR events and irrigate smaller blocks at a time. 14

15 ADR: Program Stats All PG&E ADR Ag Projects * Number of Enrolled Growers 25 growers from Chico to Bakersfield Number of Enrolled Pumps 215 pumps Range from 1 to 36 pumps per customer Technology Incentives for Qualified Projects ~$2.4 million (distributed or in the process of distribution) Range from ~$6,000 to ~$475,000 per customer Demand Response Load Shed ~12.5 MW of load shed Range from 30 kw to 2.4 MW per customer * PG&E ADR Program was first offered at commercial scale in 2007; Energy Solutions became PG&E ADR Program co-implementer in

16 ADR: Project Example Project Summary 24 irrigation pumps, 30 to 200 hp 544 kw approved load shed potential (or ~730 hp) About $92,000 total incentives to install pump controls covering 61% of project costs DR Participation Enrolled in Capacity Bidding Program (CBP) through NRG Participated in 16 DR events lasting 4 hours each in 2015 DR season and in 19 DR events lasting 1-4 hours in 2016 DR season Delivered 100% of committed load shed in 2015 and 2016 DR season Receiving an estimated $18,500 per year in ongoing CBP DR revenue Capay Farms Profile Location near Chico Crops almonds, walnuts Water source mostly groundwater, some surface water Irrigation system microirrigation, sprinklers Irrigation scheduling using remote soil moisture monitoring DR experience participated in DR manually16

17 ADR: Project Example cont d Key Challenges Selecting the combination of pumps to maximize the potential load shed during a DR event Selecting and integrating pump controls into the larger custom-built farm telemetry platform that also aggregates data on vehicles, facilities, weather, soil moisture, etc. Capay Farms Profile Link to the case study: Location near Chico Crops almonds, walnuts Water source mostly groundwater, some surface water Irrigation system microirrigation, sprinklers Irrigation scheduling using remote soil moisture monitoring DR experience participated in DR manually17

18 ADR: Players in Ag Sector Role Vendors Providers of Pump Control Solution Distributors and Installers DR Program Aggregators Project management service for pump automation projects ( owner s agent ) Tony Pastore Eric Baty Verde Energy 18

19 ADR Program Team The PG&E ADR Program Team includes: Core Program Management PG&E Program Implementers Energy Solutions ASWB Engineering Demand Response Automation Server (DRAS) Administrator Honeywell 19

20 ADR: Contacts Q & A Website: Phone: (855) Energy Solution Contact Contact Info Stefaniya Becking, CAIS (510) x 223 sbecking@energy-solution.com Senior Project Manager ADR in Ag Katherine Wang Senior Project Manager (510) x 505 kwang@energy-solution.com 20

21 Appendices 21

22 Helpful Links Description Link ADR Program ag sector specific information Getting no obligation estimate of potential ADR incentive amount Use Share My Data tool to authorize access to energy usage data for implementers of PG&E ADR Program (Energy Solutions) Detailed Instructions: ADR Program step-bystep application process ADR Program Forms Checklist Remaining ADR incentive amounts 22

23 Why Utilities Pay DR Incentives Demand Response (when customers reduce electric 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 23

24 Options for Participating in DR One-time ADR technology incentive $ available 24

25 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. For each 10-day load value, calculate corresponding percent of likely DR events (based on the probability of DR events within each month). For example, July and August are weighted more heavily, with 63% of likely events, than May and June, with 11% of likely events. Create Load Frequency chart (below). 3. ADR incentives are calculated based on the 10-day load value that is exceeded 70% of likely DR events. ADR incentive 450 kw * $200 = = $90,000 25

26 Assumptions for Ongoing DR Revenue Example As an example for illustration purposes, for a portfolio of 10 pumps with combined power draw of 1,000 kw (equivalent to 1,340 hp) and 300 kw of calculated 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 $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 1st and October 31st, 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. 26

27 Other PG&E Programs for Ag Pumps Combine ADR Incentives with Other Pump Related Rebates Advanced Pump Efficiency Program (APEP), pump testing and pump overhaul Variable frequency drives (VFD) for irrigation pumps and boosters dfs/mybusiness/energysavingsrebate s/incentivesbyindustry/agricultureand foodprocessing_catalog.pdf 27