Bioenergy Call for Power: Phase II Community Based Biomass Projects Introductory Session

Transcription

1 Bioenergy Call for Power: Phase II Community Based Biomass Projects Introductory Session Power Acquisitions BC Hydro July 2009

2 Bioenergy Call for Power: Phase II Community-Based Biomass Projects Welcome & Session Goals Kenna Hoskins Manager, Engagement Power Acquisitions 2

3 Session Goals Introduce the Community-Based Biomass (CBB) Request for Qualifications (RFQ) Describe the overall RFQ objectives, design and process Provide opportunity to comment on the draft RFQ terms Encourage written comments 3

4 Agenda Time Activity Presenter 8:30-9:00 am Registration / Breakfast 9:00-9:30 am Welcome / Session Goals Overview of Power Acquisitions 9:30-10:30 am Overview of Bioenergy Phase II - CBB Goals, Eligibility, Process, Timeline Evaluation Criteria Q&A Kenna Hoskins James Grant 10:30-10:45 am Break 10:45-12:15 pm Walk through CBB elements Interconnection Proposal Guide Commercial & quantitative evaluation Next Steps Q&A Laila Bassim James Grant 12:15 pm End of Session 4

5 Expected Outcomes Attendees will gain a better understanding of the CBB RFQ; will be able to assess whether this RFQ is right for them BC Hydro will receive written comments and feedback on the draft document and process, which will help in the development of the final RFQ BC Hydro will gain a better understanding of interest in the CBB RFQ 5

6 Background Meeting the future electricity needs of British Columbians Conserving more Buying more Building more 6

7 Acquisitions Processes Active calls for power: Clean Power Call Fill anticipated electricity needs by purchasing power from larger projects that meet the clean definition Bioenergy Call Phase II Fill anticipated electricity needs by purchasing power from projects that use biomass as a fuel source Standing Offer Program Purchase power from small, clean energy generators (no more than 10 MW) Biomass Projects RFP Community-Based Biomass Projects RFQ Other acquisitions processes: Net Metering Interconnection of small generating units (< 50 kw) to BC Hydro s system Non-Integrated Areas Reduce or eliminate use of diesel for power in NIA; replace with clean or renewable energy 7

8 Why Bioenergy? Bioenergy is clean, capacity-rich electricity that can help BC Hydro close the supply gap Significant level of interest from a broad spectrum of potential providers Existing forest companies New and existing IPPs First Nations Local governments and communities Potential opportunities for new technologies 8

9 Bioenergy Calls - Chronology 9 BC Hydro Government Policy

10 Bioenergy Phase I Launched February 2008 Competitive RFP for Projects generating electricity using forest-based biomass Sawmill residues, logging debris, trees killed by the mountain pine beetle, and other residual wood In December 2008, BC Hydro selected 4 Projects for a total of 579 GWh/year In February 2009, Electricity Purchase Agreements were filed for acceptance with the BC Utilities Commission 10

11 Bioenergy Phase II Launched March 2009 Guided by the policy actions and direction in the 2007 BC Energy Plan and the 2008 BC Bioenergy Strategy Includes any form of biomass that meets BC Clean or Renewable Electricity Definitions Two streams Biomass Projects (BP): Competitive RFP for larger-scale biomass projects; target is 1,000 gigawatt hours/year. Community-Based Biomass Projects (CBB): RFQ focused on innovative, community-level electricity supply solutions using biomass. 11

12 Why Community-Based Biomass? Seeking innovative, community-level solutions Cost competitive electricity for the integrated electricity system + Quantifiable local or regional benefits such as improved reliability 12

13 Process at a Glance We are here Draft RFQ & Schedules Released Comments & Feedback Incorporate Feedback Issue Final RFQ Submission of Proposals Summer & Fall 2009 Evaluation of Proposals Proposals Qualified Negotiation Electricity Purchase Agreement BCUC Filing Winter Spring

14 How your input will be used Written submissions are compiled and considered by the Call team when revising the terms of the RFQ Two ways to submit comments: Comments on draft RFQ documents submitted to using the Draft RFQ Comments Form found at Comments and questions from today s session submitted using the Comment Cards provided BC Hydro determines final RFQ elements using: Comments from diverse perspectives, forums Policy framework Regulatory considerations 14

15 Bioenergy Call for Power: Phase II CBB Overview James Grant RFQ Project Manager 15

16 RFQ Overview 1. Goals 2. Eligibility 3. Process 4. Evaluation Criteria 16

17 RFQ Goals 1. Help B.C. reach goal of becoming electricity self-sufficient by 2016, while securing costeffective firm, clean or renewable, carbonneutral energy for ratepayers 2. Fulfill objectives in the BC Energy Plan and the BC Bioenergy Strategy 3. Qualify at least two Proposals to engage in negotiations, which may result in Electricity Purchase Agreements being awarded 4. Conduct a fair and effective process 5. Reduce Project attrition and ensure a Projects success 17

18 Eligibility Eligibility Requirements: Biomass (Clean or Renewable Electricity) Must be registered in RFQ Between 50 kw and 5 MW Located in B.C. Point of Interconnection: (D-connected, and at customers sites D- or T-connected) New or existing Projects First Nations consultation plan Must be metered according to RFQ guidelines 18

19 Eligibility Fuel Type Qualify as clean biomass fuel under the BC Clean or Renewable Electricity Definitions applicable to biomass projects 19

20 Eligibility Project Size Must have an installed capacity larger than 50 kw, no greater than 5 MW Size allows connections to Distribution System (Dconnected) Size reflects community-based focus of RFQ Smaller projects (< 50 kw) under Net Metering Program 20

21 Eligibility First Nations Consultation Submit a consultation plan that identifies First Nations affected by the Project, and the strategy to engage and consult Respondents are required to submit a First Nations Consultation Plan in order to be eligible to participate in the CBB RFQ Additional details are provided in the Proposal Guide BC Hydro has new obligations for First Nations consultation with respect to its electricity purchases February 28, 2009 BC Court of Appeal judgments: Carrier Sekani Tribal Council v. BCUC Kwikwetlem First Nation v. BCUC 21

22 Eligibility Interconnections: Point of Interconnection: Distribution System, or on an existing BC Hydro customer s site, which could be either D-connected or T- connected Interconnection Conformity: Consistency between technical parameters of Proposal and interconnection application and study BC Hydro integrated system only BC Hydro not required to transmit energy through another utility or out-of-province jurisdiction 22

23 Process and Schedule 23

24 Evaluation Evaluation criteria categories: Economic Viability Development Risk D-System Benefits Community Benefits First Nations Involvement Innovation 24

25 Evaluation: Economic Viability Analysis of financial and physical parameters that define a contract or commercial arrangement for both the buyer and seller Funding from alternative sources (e.g., Innovative Clean Energy (ICE) Fund, Sustainable Development Technology Canada) System impact (Transmission or Distribution) Economic Viability Development Risk D-System Benefits Community Benefits First Nations Involvement Innovation 25

26 Evaluation: Development Risk Project development and operating risks, including: permitting, technological, constructability and schedule risks supply reliability and other operating availability risks Fuel availability, with a desirability of minimizing adverse impacts on existing productive uses of biomass Status of community engagement and breadth of community support Environmental impacts Economic Viability Development Risk D-System Benefits Community Benefits First Nations Involvement Innovation 26

27 Evaluation: D-System Benefits Distribution System Benefits include: Reliability / Islanding Capacity constraints Power quality Economic Viability Development Risk D-System Benefits Community Benefits First Nations Involvement Innovation 27

28 Evaluation: Community Benefits Quantifiable economic near-term benefits to local community and potential for future long-term business and energy system growth Contribution to and coordination with a community s environmental programs Community or industrial use of waste heat (space and water heating, lumber drying, etc) and other byproducts of electricity generation from biomass Environmental benefits Economic Viability Development Risk D-System Benefits Community Benefits First Nations Involvement Innovation 28

29 Evaluation: First Nations Involvement Quantifiable economic near-term benefits to First Nations and the potential for future long-term business and energy system growth Ownership and commercial opportunities that have First Nations involvement Community benefits that are also First Nations benefits Economic Viability Development Risk D-System Benefits Community Benefits First Nations Involvement Innovation 29

30 Evaluation: Innovation Broader commercialization potential: consideration of innovative technologies, designs, consortia or business models that can productively inform and/or influence the near-term BC marketplace for bioenergy Economic Viability Development Risk D-System Benefits Community Benefits First Nations Involvement Innovation 30

31 Process and Schedule 31

32 Questions? 32

33 Agenda Time Activity Presenter 8:30-9:00 am Registration / Breakfast 9:00-9:30 am Welcome / Session Goals Overview of Power Acquisitions 9:30-10:30 am Overview of Bioenergy Phase II - CBB Goals, Eligibility, Process, Timeline Evaluation Criteria Q&A Kenna Hoskins James Grant 10:30-10:45 am Break 10:45-12:15 pm Walk through CBB elements Interconnection Proposal Guide Commercial & quantitative evaluation Next Steps Q&A Laila Bassim James Grant 12:15 pm End of Session 33

34 Bioenergy Call for Power: Phase II CBB Interconnections Laila Bassim Specialist Engineer Generator Interconnection & Transmission Services 34

35 Outline Role of GITS Process Timelines & Cost of Study Interconnection Process for D-connected Generators Key messages for interconnections Contacts 35

36 Role of GITS Generator Interconnection and Transmission Services (GITS): Looks after all Interconnection Applications for CBB Projects until RFQ is complete Facilitates interconnection of D-connected generators to the Distribution System (generators connected at 35 kv or less) Is the point of contact for D-connected generators Looks after Interconnection Agreements for D- connected generators 36

37 Overview of Process Respondents are required to submit a completed Interconnection application to BC Hydro The studies allow BC Hydro/BCTC to analyze and assess the impact of a Project on the Distribution or Transmission System This information is also used in proposal evaluation After the RFQ process is complete: BC Hydro looks after D-connections BCTC looks after T-connections 37

38 Process All Projects participating in this RFQ will be studied on a stand-alone basis, under the same system conditions All Respondents must file an Interconnection Application by the applicable deadline Includes proposals involving eligible incremental generation Proposals from Respondents with existing interconnection agreements for existing generation, will be required to file a new application for the incremental generation If a proposal is successful in the RFQ process (i.e. is a Qualified Proposal ), the cost of the interconnection study, and any subsequent studies necessary to complete the Project s interconnection until the COD is achieved, will be borne by the Respondent 38

39 Timeline & Cost of Studies Application form posted on BC Hydro website Application completed & signed by a professional engineer & submitted to GITS July 2009 Oct 2009 BC Hydro reviews completeness of Application; issues a deficiency list, if required Completed application signed by professional engineer + deposit Nov 2009 $15,000 deposit for each Project to BC Hydro (GITS) Selection of qualified proposals D-connected Projects: submit signed Preliminary Interconnection Study Agreement to BC Hydro + deposit T-connected Projects: submit signed Feasibility Interconnection Study Agreement to BCTC + deposit Early 2010 $15,000 deposit to BC Hydro or BCTC 39

40 Distribution Generator Interconnection (35 KV or Less) BC Hydro Interconnection Process for Generators without Transmission Impact: Customer Inquiry and/or Initial Meeting Conduct Preliminary Studies 4-10 weeks Interconnection Application Impact/Design Study Project Interconnection Requirements 4-16 weeks Sign Facilities Letter Construction of Interconnection Facilities Over $40k Interconnection Agreement Commissioning and Interconnection 40

41 Distribution Generator Interconnection (35 KV or Less) BC Hydro Interconnection Process for Generators with Transmission Impact: Customer Inquiry/Initial Meeting Preliminary Interconnection Study 8-14 weeks Interconnection Application Interconnection Design/Impact Study weeks Project Interconnection Requirements Sign Facilities Letter Construction of Interconnection Facilities Typical: >$200k Interconnection Agreement Commissioning and Interconnection 41

42 Typical Distribution Generator Interconnection IPP Private Facilities BC Hydro Facilities IPP s Interconnection Facilities BC Hydro s Interconnection Facilities One-Span Primary Extension Other Customers IPP Generator Tap Distribution Private Line Other Customers Station Service P&CC Equipment Point of Interconnection (POI) M 25 KV Substation 138 KV Substation Distribution Asset Transmission 42

43 D-Studies D-studies may include the following assessments: feeder thermal and voltage limits fault levels protection coordination recloser control location of capacitor bank and voltage regulator primary service After completion of D-studies an interconnection cost estimates will be provided 43

44 T-Studies BCTC will perform a study similar to the SGIP Feasibility Study (NRIS) T-Studies will: Consist of a short circuit analysis and a power flow analysis State the assumptions upon which it is based State the results of the analysis Provide requirements or potential impediments to providing the requested interconnection service, including a preliminary indication of the cost and length of time that would be necessary to correct any problems identified in that analysis and implement the interconnection and preparation of interconnection cost estimates 44

45 Process and Schedule 45

46 Key Messages for Interconnections Follow timelines! Submit application signed by a professional engineer by October 2009 Complete any deficiencies in the application by November 2009 Submit completed, signed by a professional engineer, application and $15,000 deposit to BC Hydro by November 2009 Ensure that the application is valid for the proposal GITS role is to help you with your application until the CBB RFQ is complete Call me or Charley if you have any inquiries re: interconnection 46

47 Contacts Generator Interconnection and Transmission Services 333 Dunsmuir Street, 10th Floor Vancouver, BC V6B 5R3 Laila Bassim Charley Ye For more information please visit: 47

48 Questions? 48

49 Bioenergy Call for Power: Phase II CBB Proposal Guide James Grant RFQ Project Manager 49

50 Introduction Highlight of unique items in the Proposal Guide Q&A Comment cards available to write down ideas, questions, and comments 50

51 Proposal Guide Four main sections: Section 1 - Commercial & Quantitative Evaluation Data Quantitative Evaluation Section 2 - The Respondent Respondent Information Section 3 - The Project Project Details Section 4 - Supplementary Information Catch-All 51

52 Section 3.4 Biomass Fuel Plan Should demonstrate that the Respondent has a plan to contract for, and has reasonable assurance of, the supply or availability, and if applicable the transport and storage, of biomass required for the operation of its Project Should address fuel availability and the potential impact on other users, with a desirability of minimizing adverse impacts on existing productive uses of biomass 52

53 Section 3.4 Biomass Fuel Plan (cont d) Identify the approximate volume (in tonnes) of biomass that is expected to be consumed in energy (steam/electricity) generation at the facility The fuel plan should be split up identifying the volumes for each of the following categories: Description Fuel Examples Category A Pulp Residuals Black Liquor Category B Sawmill & Manufacturing Hog Fuel, Sawdust, Residuals Chipping operation residues Category C Forest Sourced Fuel Roadside Debris, Logging Slash, Sort Yard Debris, Standing timber Category D Sorted Municipal Solid Waste Clean organic material (MSW) sorted from MSW Category E All other Clean Biomass Agricultural residues, energy crops 53

54 Section 3.12 First Nations Consultation & Benefits Respondent should explain how it will undertake consultation with First Nations Submission of First Nations consultation plan is also an eligibility requirement addressed by subsections 3.12 (a) through (f) of the Proposal Guide Details of commercial arrangements, ownership and future business opportunities that will have a beneficial impact on First Nations and demonstrate First Nations involvement 54

55 Section 3.3 Generation Technology Proven Technology: identify at least three other existing generation plants using the same generation technology Unproven or Near-Commercial Technology: approximate market potential in MW installed and GWh/year in B.C. for the proposed technology barriers that block the development of this technology to its market potential how the Project addresses those barriers and accelerates the deployment of the technology in B.C. the nature of any ownership/equity stake in the Project by a proposed technology equipment supplier 55

56 Section 1 Commercial & Quantitative Evaluation Data Attachment 1 to Proposal Guide Detailed information for BC Hydro to understand Project financial and technical inputs to assess and model the economic viability of the Project Indicative pricing to ensure that the expectations of the Respondent and BC Hydro are reasonable 56

57 Section 3.16 Financial Information Demonstrate Respondent s ability to finance the Project Provide up to date information on the financing of the Project Any letters of commitment All assumptions: Forecast of spending by year prior to commercial operation Description of tax assumptions (including applicable CCA classes and the corresponding % of capital cost) List and description of grants or subsidies available and their amounts (in $ millions) Detailed summary of financing assumptions (e.g., fees, reserves, debt coverage ratios) 57

58 Proposal Guide Key Messages A well laid out Proposal demonstrates the Respondent s current development status and understanding of the future development requirements Be as complete as possible in your Proposal If you have identified an issue: Disclose it fully - BE TRANSPARENT Provide a mitigation plan Provide all requested information available in your Proposal do not assume that you will be given a chance to discuss your Proposal 58

59 Next Steps Submit comments by July 31, 2009: Download draft documents at fill-in the Draft RFQ Comment Form and to Draft RFQ and Schedules Released Comments and Feedback Incorporate Feedback Issue Final RFQ Submission of Proposals Summer Fall

60 Questions? 60