The City of Lebanon s VISION for its ENERGY FUTURE & LEBANON COMMUNITY POWER

Transcription

1 The City of Lebanon s VISION for its ENERGY FUTURE & LEBANON COMMUNITY POWER Business Energy Innovation Conference September 27, 2018 by City Councilor Clifton Below, Chair, Lebanon Energy Advisory Committee & Lebanon Electric Aggregation Committee (LEAC) 1

2 Lebanon s VISION for its ENERGY FUTURE Expressed through the Energy Chapter of our Master Plan adopted by Planning Board and City Council as official City policy in The long term vision for Lebanon s energy future is to increase energy savings for residents, businesses, and municipal functions, to ensure a robust and stable energy economy, and to reduce the impacts of greenhouse gas emissions that result from a fossil fueldependent economy. The purpose of the Energy Plan is to develop near-term outcomes, strategies, and actions that lay a strong foundation for Lebanon s energy future, for the fiscal and environmental benefit and security of the City and its taxpayers. 2

3 Lebanon s VISION for its ENERGY FUTURE #2 Overall Long-Term Goal of Master Plan: Lebanon is a leader in energy efficiency, renewable energy reliance, and innovation across municipal, commercial, institutional, and residential sectors. A key outcome: The City relies upon as much local renewable energy as possible. Another key outcome: The City s residential, commercial, and institutional sectors privately invest in energy efficiency and renewable energy projects. 3

4 Background to LEAC & Lebanon Community Power 2013 Council adopted property tax exemptions for renewable energy systems per RSA Solarize Lebanon-Enfield resulted in 4X increase in PV net metering cap issue Inventory of renewable energy opportunities on City sites Landfill Gas to Energy (LFGTE) & solar potential could supply >2X City s own load Update of Zoning to allow community scale solar & renewables. EFM position created PUC proceedings: Net Metering & Grid Mod. 4

5 Lebanon Community Power: what is it? A proposed municipal electric aggregation authorized by RSA 53-E open to all customers. Purpose: to accelerate cost-effective adoption and integration of local renewables & other Distributed Energy Resources (DERs) for all. A proposed local Transactive Energy (TE) Platform to enable direct producer to consumer (P2P) retail sales of local renewable energy. Enable access to and use of Real Time Pricing (RTP) for electricity & serve as a PUC NM pilot. 5

6 Why Enable Access to RTP? RTP, based on the hourly Locational Marginal Price (LMP) for NH, has been and likely will continue to be, the lowest cost price for energy so greatest potential savings (~7% < DA price). Gets rid of fin. hedging cost or risk premium in forward fixed rates instead TE platform enables local renewables to be physical hedges. Helps unlock temporal value of solar, storage, and flexible demand (demand response or DR). 6

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13 T R A N S A C T I V E E N E R G Y S Y S T E M S EVOLVING APPROACHES FOR IMPLEMENTING TRANSACTIVE ENERGY New England s changing load shape Historic N.E. peak load shape: summer vs. winter Summer impact of solar as more is installed L: ISO-NE provided to C Below, R: MIT, Cambridge, MA 13

14 Vermont s Duck Curve Problem: a cloudy day followed by a sunny one: 14

15 Lebanon Community Power: Need for TVR Illustrative Winter Impact of Solar at Different Levels of Dev. (from ISO-NE) from: New England s Duck Curve Shift flexible loads off-peak (D.R.: Elec. Vehicles, HWH, TES for A.C. etc.) D.R. Discharge STORAGE CHARGE STORAGE + Flex. Load + Charge STORAGE 15

16 NH Capacity Factor or Asset Utilization Rate has declined from 67% for decade ending 2000 to 57% for decade ending

17 Community Solar/RE Enabled by LCP Direct Producer to Consumer Sales (e.g. PPAs). Direct consumer investment in off-site solar (on City or other sites) w/tax credit available. Fixed price PPAs can work with RTP on the margin to incent SOLAR + STORAGE + D.R. Example of Contract for Differences: Resiliency Value 17

18 LEBANON COMMUNITY POWER & Upper Valley Community Power? Additional Information & 18