buying electricity and natural gas for a big user
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Buying Electricity and Natural Gas for a BIG User. Joan Kowal Energy Manager, UMCP March 6, 2012 Sustainable Tuesdays Speaker Series. Retail Electric Competition. The Electric Utility Industry. - PowerPoint PPT PresentationTRANSCRIPT
Buying Electricity and Buying Electricity and Natural Gas for a BIG UserNatural Gas for a BIG User
Joan KowalJoan KowalEnergy Manager, Energy Manager, UMCPUMCPMarch 6, 2012March 6, 2012Sustainable Sustainable Tuesdays Speaker Tuesdays Speaker SeriesSeries
Retail Electric CompetitionRetail Electric Competition
The Electric Utility IndustryThe Electric Utility IndustryThe electric utility industry consists of three
functions needed to deliver power to customer loads:– Generation– Transmission– Distribution
It consists of many entities. Most notable are:– Generators (Fossil, Nuclear, and Renewable)– Regional Transmission Organizations (PJM)– Distribution Companies (PEPCO, BGE)– Load Serving Entities or Suppliers (Constellation,
Washington Gas Energy Services, Pepco Energy Services)
– Government Regulators (FERC, PSC)– End-users (UMD, homeowners, retail stores)
Typical Electrical SystemTypical Electrical System
Electric Supply at UMCPElectric Supply at UMCP
The electric needs on campus are met through:– On-site production from a natural gas,
combined heat and power plant– Purchased energy delivered at the
Mowatt substation (building located by Architecture.)
Campus Electric ConsumptionCampus Electric Consumption
UMD Combined Heat and Power PlantUMD Combined Heat and Power Plant
• 27.5 MW natural gas, CHP plant installed at the College Park Campus– Doubled steam efficiency from 35% to
nearly 70% – Energy Star award for 2005– Annual CO2 reductions of 53,000 tons– Also produces chilled water for air
conditioning using steam in summer
ChilledWater
How System Works:How System Works:
Heating Steam
BackPressureSteam
Turbine625 PSISteam
2 Heat Recovery
SteamGenerators
ExhaustHeat
6250 F
2 Combustion Turbinesand Generators
Electric Power22 MW
FuelGas or Oil
ElectricPower5MW
70% of Condensate Returns to CHP
125 PSISteam
AuxiliaryBoilers
Make UpWater
Steam DrivenChillers on
Campus
Energy ProcurementEnergy Procurement
Electricity– Supplier – WGES– Distribution Company – PEPCO– Contract Structure (main campus)
• Block and Index
• Fixed Supplier Fee
• All other costs are a pass-through
– Term is 3 years with two, 1 year options
Electric Contract (cont’d)Electric Contract (cont’d)
Block and Index Contract– Advantages
• Reduces risk premiums from supplier
• Allows UMD to reduce costs by reducing load in high priced hours
• Allows rate to more closely reflect market over term of contract in lieu of locking in fixed-price for entire term on one day
– Disadvantages• Reduced price certainty
Electricity ProcurementElectricity ProcurementBlock and IndexedBlock and Indexed
Natural Gas ProcurementNatural Gas ProcurementSupplier – Pepco Energy Services/WGESDistribution Company – Washington
Gas LightContract Structure
– Fixed Price for small accounts– Block and Index contract for CHP supply– Large account is interruptible; oil used as
back-up fuel
Natural Gas ProcurementNatural Gas ProcurementBlock and IndexedBlock and Indexed
53,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
61,000
62,000
63,000
64,000
06/01/11 06/06/11 06/11/11 06/16/11 06/21/11 06/26/11
Th
erm
s
June Natural Gas Use vs Block PurchaseUsage
BlockPurchase
Buying in the Daily Market at Index
Selling in the Daily Market
MD Renewable Energy MD Renewable Energy
State has a renewable portfolio standard (RPS) that requires electric suppliers to meet certain standards:– In 2012, 6.5% from Tier 1 renewable sources
(including at least .1% from solar); and 2.5% from Tier 2 resources
– In 2022, 20% from Tier 1 renewable sources (including at least 2% from solar); and 0% from Tier 2 resources
RPS Definitions – Tier IRPS Definitions – Tier I (1) solar energy including PV and solar hot water heating; (2) wind; (3) qualifying biomass; (4) methane from the anaerobic decomposition of organic
materials in a landfill or wastewater treatment plant; (5) geothermal; (6) ocean, including energy from waves, tides, currents, and
thermal differences; (7) a fuel cell that produces electricity from a Tier 1 renewable
source under item (3) or (4) of this subsection; (8) a small hydroelectric power plant of less than 30 megawatts (9) poultry litter-to-energy (10) waste-to-energy; and (11) refuse derived fuel.
RPS Definitions – Tier II RPS Definitions – Tier II
Hydroelectric power other than pump storage generation
On-site Renewable EnergyOn-site Renewable Energy
Solar hot water heating system installed at Ellicott Dining Hall and to be included at the University House
Solar photovoltaic at Cole Field House – 5.25 kW
Installation of geothermal heat pumps at the new Shuttle Facility; two renovated Sorority Houses; and new University House
Project SunburstProject Sunburst DOE American Recovery and Reinvestment
Act of 2009 funds allocated to Renewable Energy in MD
UMCP was awarded a grant of $1000/kW of installed solar capacity
Competitive solicitation awarded to WGES and Standard Solar for a 630kW installation at Severn
Commercial Operation June, 2011 Estimated output of 792 MWh annually
Aerial View of Severn with Aerial View of Severn with 2,300 Solar Panels2,300 Solar Panels
Off-Site Renewable EnergyOff-Site Renewable Energy Executed three long term
power purchase agreements (PPAs)– Two land based wind with total
capacity of 65 MW
– One solar project with capacity of 13MW
Aggregation of University System of Maryland Institutions with state and local agencies
Buying Off-Site RenewablesBuying Off-Site Renewables
• Bundled RECs through PPAs• Long term commitment to buy power and RECs• If buyer doesn’t buy RECs, power cannot be
counted as renewable energy
• Unbundled RECs• Green attributes associated with power
generation
Bundled RECs through PPAsBundled RECs through PPAs
1 MW
h
Elect.1 MW
h RECLoad Serving Entity
Electricity and RECs bundled together
Unbundled RECsUnbundled RECs
1 MWh Elect.
1 MWh REC
1 MWh Elect.
Electricity and RECs sold separately
Can’t claimrenewable energy
Can claimrenewable energy
Renewable PPA Contracts – Renewable PPA Contracts –
Project
Nameplate Capacity -(expected
annual MWh)
UMCP’s Share
% of Annual
Electricity Use
Technology Location On-line Date
Roth Rock Phase II
10 MW – (30,605) 10% 1.53% Land-based
wind MD – Garrett County 8/11
Pinnacle Project
55 MW – (174,542) 10% 9%
Land-based wind
WV - Mineral County 1/12
Constellation’s Mount St. Mary’s Solar Project
13MW – (22,291) 10% 1% Solar MD -
Emmitsburg 6/12
WGES’ Severn Solar Installation
630kW (792)
100% 0.40% Solar Severn 6/11
Total 11.77%
ReferencesReferences
eia.doe.gov/www.ferc.gov/www.eei.org/www.energy.state.md.us/