Roundtable I: Energy Markets: The Rise of Community and Institutional Scale Resources

Transcription

1

2 Roundtable I: Energy Markets: The Rise of Community and Institutional Scale Resources

3 The Descent of Competition & Ascent of Dynamic Resources Christopher B. Berendt Energy & Sustainability Team

4 Competition descending in the power sector value chain Residential Grid Operator / Wholesale Load Serving Entity / Retail Commercial Load as an Asset LSE DSM Program Industrial Onsite & Community Scale Generation Demand Response Efficiency Smart Grid P3 & Pooled Financing Structures

5 The Future is Community Scale > Values Driven: Independence, Control, Security, Lower Costs, Free Market Competition, Environmental Protection > Largest source of projects for financings, self supporting position in the lead > Its Gas, Renewable Energy (RE) and Energy Efficiency (EE). Steepening RPS demand drives RE supply, nat. gas prices, competition capex, increasing recognition of the Negawatt and environmental regulation helps ensure that most new non-re capacity is likely gas > In the changing power markets Dynamic Resources of all types grow in value: RE, EE, Storage, Gas, DR, CHP, AMI/SG/MG, hybrid systems > Equitable Merchantability / Access and better market values for Dynamic Resources is the key

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33 Energy Markets: The Rise of Community and Institutional Scale Resources Unlock Your Virtual Power Allen Freifeld Senior Vice President, Law & Public Policy Viridity Energy

34 Viridity Energy - Recognized Leader in Smart Grid Technology Key Company Facts Unparalleled Solutions Founded in 2008 by well known industry executives Experienced Team: Experienced utility and power market executives Technology innovators Regulatory policy and affairs experts Recipient of multiple industry awards and grants Integrated energy management from Demand Response to Dynamic Load Management and Microgrids Patent pending software platform optimizes and integrates energy assets such as controllable loads, cogeneration, renewables, and energy storage systems Network Operating Center supports customer participation in wholesale power markets 2011 Viridity Energy Inc. All Rights Reserved Types of Clients Industrial Institutional Data Centers Commercial Utilities Military 34

35 Clients and Partners Sample Individual Customers: Utilities: Partners: 2011 Viridity Energy Inc. All Rights Reserved 35

36 Electric Market Participation THE OPPORTUNITY

37 Keeping the Electric Grid in balance is a constant act of balance. One of the most important elements of a secure, integrated electric grid is ensuring that the consumption and production of electric energy is balanced every moment of every day. This means that supply of energy must equal instantaneous demand. Supply Demand Historically, an increase in power demand has been met by generators producing electricity to supply into the grid.

38 FERC 745 Ruling has Expanded Revenue Opportunities for Large Energy Users This ruling allows customer participation in capacity, energy and ancillary markets allowing large energy users to play an equal role to that of traditional generators. That can result in substantial value for all consumers. NegaWatt MegaWatt For example, for the year, the PJM clearing price would have been $391 per MegaWatt Day without demand response and energy efficiency in the capacity market. With demand response and energy efficiency, the clearing price was $245 per MegaWatt Day.

39 Reduction of Demand Can Play a Pivotal Role in Maintaining Grid Balance Emerging smart grid technologies; Energy Policy Changes Since reducing demand is equivalent to increasing supply, grid operators compensate large energy users who proactively manage their energy usage on the grid in response to wholesale power prices. By strategically managing energy usage, large energy users create negawatt hours that can be bid into the market as virtual supply. Demand Response and Demand Management Revenue from participation in energy markets Ongoing energy load management Energy usage optimization strategies

40 Energy Reduction is Worth Real Dollars Value of 1 MW of energy in the PJM Wholesale Electricity Markets PJM Program 1 MW Value (annual) Demand Response Reliability $49,501 Real Time Economic $38,018 Ancillary Program (Sync Reserve) $15,025 Supply Savings $32,000 Total Revenues & Savings, annual $134,544 Regulation* $93,402 *Note: Regulation is applicable only to certain types of assets with special metering 2011 Viridity Energy Inc. All Rights Reserved

41 Demand Response Multiple Markets = Customers Choice Peak Shaving Capacity Programs Low frequency, mandatory response A reactive way to earn additional revenue stream Load Shifting Pre cooling Economic Programs High frequency, voluntary response A proactive way to earn additional revenue Load Shifting + Sync Reserve Pre cooling Synchronize Reserve Higher frequency, voluntary response Requires automated response due to short notice times and duration Regulation Highest frequency & payments, voluntary response Injects into or pulls power from the grid in small increments Requires automated response, often attached to batteries, due to very short notice times and duration Viridity Energy Inc. All Rights Reserved 41

42 Electric Customers have Assets That Can be Monetized to Create Virtual Energy Mfg. Flexibility Renewables Building operators know better than anyone what flexibility they have in the operation of their equipment or buildings. Compressors Storage That flexibility can earn revenues for the customer in the wholesale power markets, without compromising performance. CoGen Viridity Energy works with large energy users to optimize their planning to take advantage of energy prices. Customers avoid high usage during high priced hours and also gain revenues from any energy reduction they achieve Viridity Energy Inc. All Rights Reserved

43 ENERGY SOLUTIONS FOR THE SMART ENERGY FUTURE

44 VPower - From Classic Demand Response to Real Time Demand Optimization Classic Demand Response Utility customers agree in advance to curtail defined level of load when required in emergency circumstances Customers cannot control when utilities exercise the option Utilities pay customers for this option (often in terms of a capacity payment ) or through a rate discount Real Time Demand Optimization VPower software integrates with energy assets and also enables customers to select participation in multiple electricity markets Real time power price information is used to optimize energy usage and participation in the power markets Load is flexed and managed to maximize economic value, comfort and environmental objectives In a micro grid environment, customer load functions seamlessly with the grid and can operate independently when circumstances dictate 2011 Viridity Energy Inc. All Rights Reserved 44

45 VPower Redefines Power Economics temperature and humidity LMP prices supply constraints supply costs transmission and congestion zones Multiple resources aggregated Load and price forecast Resource optimized schedule Virtual power dispatch Integration with Wholesale Energy Markets 2011 Viridity Energy Inc. All Rights Reserved 45

46 VPower Technology PowerVision PowerPredict PowerPredict offers our customers a view into their load and generation up to ten days in advance and down to the last real time interval. PowerPredict also generates a near accurate pricing forecast of your specific energy zone and integrates this with your dispatch schedule to create your customized opportunity. PowerVision offers customers the ability to have data insight, decision making and reporting features at their fingertips. PowerOptimize PowerOptimize uses existing and forecasted data points to support a predicted and dynamic optimization of customers distributed resources and curtailable load. PowerOptimze incorporates the unique constraints used to model your facility to ensure operational comfort and normal business activities are not compromised. PowerControl PowerControl allows you to take control of your energy strategy by giving you a packaged, automated solution that you can initiate within seconds.

47 VPower transforms customer operations into smart energy assets Business as Usual Temperatures Number of people in the building Operational Needs Available assets such as HVAC, Solar, Storage Viridity s technology puts our customer s operational needs at the heart of their customized solution Building or system constraints are modeled in our VPower software optimization tool. Customers can be sure that their customized energy strategy will not compromise comfort or business as usual.

48 Solutions Recap: a comprehensive energy tool Reaction to utility signal Reactive VPower uses predictive weather and load forecast to actively predict shed potential Increased load shed Pre-cooling Predictive Manual VPower works directly with building management systems and other control devices to automatically control load Automatic Disruptive VPower will use optimization to minimize disruption and inconvenience Efficient Individual Assets Comprehensive Portfolio Our multipurpose unit commit platform supports seamless integration of load, generation and storage on the grid as virtual power 4/26/ Viridity Energy Inc. All Rights Reserved 48

49 Customers Dramatically Reduce Energy Spend With Viridity Today Current Electricity Spend Tomorrow Revenue from participation in demand response markets Avoided Retail Cost Increase in annual net revenue coupled with savings to offset utility spend Future Energy Spend With Viridity s VPower platform and 24x7 dispatch services, customers can Integrate and manage their energy assets Significantly decrease energy operating expense Tap into new benefit streams from the wholesale electricity markets Achieve sustainability and environmental targets 2011 Viridity Energy Inc. All Rights Reserved 49

50 Roundtable II: Financing Strategies: Pooling Financing for Clean Energy Projects

51 Roundtable III: Credit Metrics: Rating and Underwriting with Energy Savings

52

53