Behind-the-Meter Generation Project Rules

Transcription

1 Behind-the-Meter Generation Project Rules 1 Purpose of these Rules The purpose of these Rules is to set out the parameters for eligible behind-the-meter generation (BMG) projects that may be accepted into conservation programs. BMG projects are subject to these Rules and the Program Rules for the Program under which an application for a BMG project is being made. These Rules will prevail in the event of any inconsistency between these Rules and the applicable Program Rules. Please refer to the Eligible Behind-the-Meter Generation Projects Approval Guideline for information on the review and approval process for eligible BMG projects. The following types of BMG projects may be eligible under Programs pursuant to the Energy Conservation Agreement: (a) Waste Energy Recovery ( WER ) projects; and (b) Conservation Combined Heat and Power ( CCHP ) projects. 2 Program Offer / Participant Incentives 2.1 Standard (Provincially Consistent) Incentives The Participant Incentive for a BMG project is subject to the Participant Incentive under the applicable Program Rules. For CCHP projects, the Participant Incentive will be the lower of 40% of the eligible costs of the BMG project or the amount of the Participant Incentive as set out under the applicable Program Rules. 3 Eligibility Criteria 3.1 Participant Eligibility In addition to any criteria set out in the applicable Program Rules, the Participant must be a Distribution Consumer and not insolvent. Page 1 of 5

2 3.2 Facility Eligibility In addition to any criteria set out in the applicable Program Rules, the Participant s proposed BMG project must be connected to the LDC s Distribution System, unless otherwise approved by the LDC. Should the Participant elect to connect to the LDC s Distribution System at a later date, they must contact their LDC and adhere to all applicable procedures for connecting generators to the LDC s Distribution System. 3.3 Project Eligibility In addition to any criteria set out in the applicable Program Rules, a proposed Behind-the-Meter Facility must: (a) have a Gross Nameplate Capacity of less than 10MW; (b) not be used for the sole purpose of reducing electricity demand during the five critical system-peak hours; (c) in the case of a WER project, demonstrate that natural gas or propane purchased from or otherwise supplied by a third party to the Participant does not exceed 10% of the Fuel Energy Input; (d) in the case of a CCHP project, meet the following additional criteria: (i) use natural gas or propane as its sole fuel, unless otherwise approved in writing by the IESO; (ii) be designed and operated in a manner that the CCHP project achieves a minimum annual Total System Efficiency of 65%; and (iii)not use the thermal output from the CCHP project to generate electricity; (e) not be the subject of, or have been the subject of, a physical or financial power or capacity purchase contract relating to the generation of electricity by such proposed facility (in whole or in part), or other form of contract relating to electricity relating to such proposed facility with the IESO, the Ontario Electricity Financial Corporation or the Government of Ontario or any other agency of the Government of Ontario; and (f) not be split across multiple applications for the purpose of circumventing the 10 MW limit on Gross Nameplate Capacity. Page 2 of 5

3 4 Participant Agreement In addition to any criteria set out in the applicable Program Rules, the Participant Agreement for a BMG project will include the terms and conditions specified in the Energy Conservation Agreement and will include the following: (a) The Participant shall not directly or indirectly assign, transfer, sell or supply electricity it generates from a BMG project into the IESO-Controlled Grid; (b) The Participant shall not use a BMG project at any time during the term of the Participant Agreement for the primary purpose of reducing electricity demand during the five critical system-peak hours; (c) The Participant shall be a Distribution Consumer at all times during the term of the Participant Agreement; (d) The Participant s facility shall be connected to the Distribution System at all times during the term of the Participant Agreement; and (e) The Participant Agreement will include any other provision required to give effect to these Behind-the Meter Generation Project Rules. 5 QA/QC and Project M&V Minimum Requirements Minimum requirements for quality assurance/quality control and Project measurement and verification are subject to the Energy Conservation Agreement and the applicable Program Rules. 6 Minimum Record-Keeping Requirements Minimum record-keeping requirements are subject to the Energy Conservation Agreement and the applicable Program Rules. At a minimum, the LDC shall retain any the confirmation obtained in accordance with the Eligible Behind-the-Meter Generation Projects Approval Guideline that capacity is available for the proposed BMG project. 7 Other In addition to any other requirements under the Energy Conservation Agreement and the applicable Program Rules, the LDC will: Page 3 of 5

4 (a) confirm that the BMG project is able to connect to the Distribution System before accepting the proposed Participant s application; (b) provide any requested information to the IESO or the Technical Reviewer that is reasonably required for the IESO or the Technical Reviewer to conduct its review of the BMG project; and (c) not approve an application for a BMG project where the LDC determines that capacity for such BMG project is not available. In addition to any other requirements under the Energy Conservation Agreement and the applicable Program Rules, the IESO will review and confirm if capacity is available for CCHP projects. 8 Definitions In addition to terms that are defined in the Energy Conservation Agreement and the applicable Program Rules, the following terms have the meaning stated below when used in these Rules: Conservation Combined Heat and Power or CCHP means the simultaneous production of electrical and thermal energy where both forms of energy are productively and efficiently used within the Facility and/or its processes. Distribution System means a system connected to the IESO-Controlled Grid for distributing electricity at voltages of 50 kv or less and includes any structures, equipment or other thing used for that purpose. Electricity Output means the gross annual electricity generated from the WER or CCHP system in MWh. Eligible Fuel Source means natural gas or propane. Fuel Energy Input means the total thermal energy (expressed in MWh-thermal) required to produce the Thermal and Electricity Output as determined annually on an HHV basis. Gross Nameplate Capacity means the manufacturer s total installed rated capacity of the generating equipment to generate electricity. Higher Heating Value or HHV means the amount of heat produced by the complete combustion of a unit quantity of fuel. IESO-Controlled Grid has the meaning given to it in the IESO Market Rules. Page 4 of 5

5 IESO Market Rules means the rules made under Section 32 of the Electricity Act, 1998 (Ontario), together with all market manuals, policies, and guidelines issued by the IESO or its successor. Total System Efficiency shall be calculated on an annual basis as the sum of (the Electricity Output (MWh) plus the Useful Thermal Output (MWh-thermal) of the CCHP) divided by the Fuel Energy Input (MWh-thermal). Useful Thermal Output means thermal energy (expressed in MWh-thermal) produced by the BMG project and used for a gainful commercial or industrial purpose where such use avoids or reduces the use of fuel to produce thermal energy in an alternate process within the Facility. Waste Energy Recovery or WER means the generation of electricity primarily from heat or fuel that is a waste by-product of the Facility. Page 5 of 5