tackling demand charges strategically with solar and ...€¦ · solar: 632 kw solar + utility rate...
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Tackling Demand Charges Strategically With Solar and Storage at Poway USD
November 29, 2017
Poway Unified School District OverviewChad Koster, Director of Facilities, Maintenance & Operations
Poway USD
◦ 3rd largest school district in San Diego county, 21st
in the state
◦ Serves 36,000 students across San Diego County
◦ 39 Campuses• 25 elementary schools
(K-5)
• One K-8
• Six middle schools (6-8)
• Six high schools
• One alternative education program
Poway USD Overview
◦ Direct Access Energy Contracts @ 29 Campuses
◦ Thermal Storage Rancho Bernardo High School (1991)
◦ Solar
◦ 2006: First solar installation
◦ 2008: 694 kW of solar through PPAs at 4 campuses
◦ 2017: 632 kW of solar through PPAs at 14 campuses
◦ Battery Storage
◦ 2016/17: 6.3 MWh of energy storage through PEA contract at 12 campuses
◦ Efficiency
◦ HVAC
◦ Lighting
◦ Pool Cover
◦ EMS
Poway has History of Energy and Sustainability Leadership
Poway USD Energy Project Map
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7
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1610 1
27
24
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3230
2934
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◦ Energy Bills Over 25% of Poway USD OPEX Budget
◦ Over $8 million per year spent on electricity and gas to power operations
◦ Demand charges account for more than half of overall energy budget
◦ Significant opportunity for cost reduction with strategic use of appropriate technologies
SDG&E Demand Charges Dominating Recent Energy Expenditures
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
PUSD Energy Expenses, 2014
SDG&E Gas Charges
Solar PPA Charges
SDG&E Other Charges
Direct Access EnergyCharges
SDG&E kWh Charges
SDG&E kW Charges
◦ Storage: 6.3 MWh energy storage for peak demand reduction at 12 campuses
◦ Solar: 632 kW solar + utility rate switch at 14 campuses ◦ Solar installed on relocatable classrooms for scalable & cost-
effective solution
◦ Benefits:◦ No out-of-pocket costs
◦ No O&M responsibility
◦ Combined savings of greater than $350,000 per year
◦ Real time campus energy profile
Today’s Focus: Two Recent Projects to Cut Demand Charges
812/1/2017
Cutting Demand with Energy StorageStephen Kelley, Senior Vice President at Green
Charge, an ENGIE company
Who We Are
greencharge.net 9
• Over 150 energy storage projects (65+ MWh)
• Extensive operating track record (6+ years)
• Ranked #1 Energy Storage provider by Navigant
• US Storage Division HQ in Silicon Valley
• In Business over 150 years
• $150 billion in energy assets
• Largest independent power producer
• Largest provider of energy services
DOE smart-grid demonstration grant
‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16
First energy storage install for demand charge reduction
First demonstration of grid services
Entered the California market
Brought industry’s first shared savings model to market
Participation in wholesale energy markets
Acquired by ENGIE (formerly GDF Suez)
Founded
About Us: Public Sector
Higher Education
San Diego CCD Peralta CCDVentura CollegeMoorpark CollegeOxnard CollegePacific Union CollegeCal State Fullerton
K-12 Schools
Poway USDGrossmont USDTulare USDOak Park USDMountain View Los Altos HSDVisalia USDHemet USDLakeside USDWilliam Hart USDDowney USDLearning AcademyMontebello USDLAUSD
Municipalities
City of Redwood CityCity of Santa ClaraCity of Monterey ParkCity of EscondidoCounty of Santa BarbaraCounty of Santa CruzSan Diego County Water Authority
“Aside from the initial site walks and providing access for SDG&E (utility) approvals and building inspections, I haven’t had to do much.”
Lindsey Danner, Energy Manager, Grossmont UHSD
UNPARALLELED EXPERIENCE SERVING THE PUBLIC SECTOR
A utility bill typically consists of three types of charges.
Typical Charges
11
Energy Charge ($/kWh)
• Costs of energy generation
• Monthly charge for each grid-supplied kWh
Demand Charge ($/kW)
• Costs of grid infrastructure
• Monthly charge for highest 15-min kW grid offtake
Fixed Charge ($)
• Administrative costs to serve customers
• Monthly fixed charge300
400
500
600
700
800
900
1000
Energy Charge ($/kWh)
Demand Charge ($/kW)
Fixed Charge ($)
greencharge.net
PEAK DEMAND
Creating Savings with Storage
Green Charge Networks Proprietary & Confidential
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Original Power Load Power Load with Energy Storage
STATE
OF
CHARGE SAVINGS
$0
6 am 12 pm 6 pm 12 am
SAVINGS
$980
SAVINGS
$3,375
SAVINGS
$7,875
Name: SCE USD
ESS Size750 kW / 1500
kWh
Meter No. 355150-000626
Recommended Tariff SCE TOU-8 B
Socal HS-Calculating Your Demand Savings
1312/1/2017
Assumptions for above figures: See slide above highlighting demand savings
Bill Month
Full Peak Partial-Peak Maximum Daily Peak
Monthly Demand Savings
Current Demand
(kW)
New Demand
(kW)
Demand Shaved
(kW)
Tariff ($/kW)
Current Demand
(kW)
New Demand
(kW)
Demand Shaved
(kW)
Tariff ($/kW)
Current Demand
(kW)
New Demand
(kW)
Demand Shaved
(kW)
Tariff ($/kW)
May-15 - - - - - - - - 720 425 295 $17.58 $5,184
Jun-15 816 462 354 $16.92 784 552 232 $4.79 816 552 264 $17.58 $11,738
Jul-15 496 128 368 $16.92 576 246 330 $4.79 576 246 330 $17.58 $13,605
Aug-15 832 388 444 $16.92 880 750 130 $4.79 880 750 130 $17.58 $10,417
Sep-15 1088 633 455 $16.92 1104 1002 102 $4.79 1104 1002 102 $17.58 $9,976
Oct-15 - - - - - - - - 1024 732 292 $17.58 $5,132
Nov-15 - - - - - - - - 656 287 369 $17.58 $6,485
Dec-15 - - - - - - - - 512 259 253 $17.58 $4,446
Jan-16 - - - - - - - - 496 260 236 $17.58 $4,147
Feb-16 - - - - - - - - 768 400 368 $17.58 $6,468
Mar-16 - - - - - - - - 624 330 294 $17.58 $5,167
Apr-16 - - - - - - - - 1512 762 750 $17.58 $13,183
Total 12-Month Savings: $95,948
Maximizing the Value of Energy Storage
1412/1/2017
Demand Savings
VALUE STREAMS
Tariff Optimization
Energy Arbitrage
Demand Response
The GridSynergy Software Platform Optimizes Across Multiple Revenue
Streams to Maximize Benefits
(2.7MW / 5.4MWh across 17 sites at a CA school district)
Demand Savings
Savings
Tariff
Optimization
Energy Arbitrage
Arbitrage
Demand
Response
Annual
Total Benefit
$207,908 $144,997 $81,355 $42,660 $476,920
44% 31% 17% 9% -
Market Revenues*
High School in SCE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
100
200
300
400
500
600
700
12:00 AM 6:00 AM 12:00 PM 6:00 PM 12:00 AM
*Future Upside
Solar + Storage
Green Charge Networks Proprietary & Confidential
1512/1/2017
Manage Volatility
Shave demand spikes in shoulder hours and firm peak reduction.
Hardware
16
• Hardware agnostic• Proven suppliers• Modular and expandable
• 30kW/60kWh block
• 250kW/500kWh block
• Perfect safety record
• Warranty
• Indoor/outdoor
• HVAC cooling
• Back up Ready
Flexible and proven hardware options designed to perform optimally in various environments.
greencharge.net
250KW/500KWh SMALL
FOOTPRINT 11’ 6” X 6’ X 8’ 4” (LxWxH)
Green Charge Networks Proprietary & Confidential 17
Installations
LARGE SCALE DEPLOYMENTS THROUGHOUT THE U.S.
Cutting Demand Charges with Solar on Relocatable Classrooms
Marc Roper, Alta Energy Inc.
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VER10302017
◦ California-based renewable energy analytics, strategy, and procurement services company with niche development capability.
◦ Acquired Sovereign Modular in 2016
◦ Analytics-based niche
◦ Wide-scale potential application
◦ Aligns with broader business approach
About Alta Energy, Inc.
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◦ Standardized designs for 24, 36, and 48x40 classrooms: 8-10 kW per 24x40 classroom
◦ Designed for low-impact installation
◦ Clip to standing seam metal roofs – no roof penetrations
◦ Integrated micro-inverter – no DC wiring
◦ Rely on electrical infrastructure already in place servicing relos– simplified interconnection
◦ High maintenance roof areas not covered
◦ DSA Pre-Check approved
◦ Over-the-counter permitting
◦ Abbreviated pull-test requirement
Solar for Relocatable Classrooms
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◦ Substantially lower cost than parking canopies
◦ Scale to very small projects
◦ Power Purchase Agreement
◦ No Out-of-Pocket Costs
◦ $0.14-0.18/kWh
◦ 0-3% Annual Escalator
◦ Direct Purchase
◦ $3.00 -4.00/W Installed
◦ 5-10 Year Payback with NO INCENTIVES
Solar for Relocatable Classrooms (Cont.)
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School Electric Bills Dominated by Demand Charges
◦ State law requires CA IOUs to offer “solar friendly” rates
◦ SDG&E – DGR
◦ SCE – Option R
◦ PG&E – Option R
◦ Relatively small amount of solar triggers eligibility
◦ SDG&E – Solar capacity >=10% of annual max demand
◦ SCE – Solar capacity >=15% of annual max demand
◦ PG&E - Solar generation >= 15% of annual consumption
◦ Value of rate switch means smaller systems can have big benefit
Rate Switching Strategy is a Winner for Schools
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◦ Selected 16 campuses, eliminated two due to roof concerns
◦ District owned, permanent “portables”
◦ Consistent with PC design
◦ 65 classrooms (of 98 available)
◦ 632 kW
◦ Financed (twice) with standardized PPA:
◦ 20 year term
◦ $0.175/kWh, 0% escalator
◦ DSA related costs (IOR, ITL, permitting) reimbursed to District
Poway Solar on Relocatable Classrooms Project Overview
School Name
Total Number of Eligible Modular
Buildings On Campus
Number of Modular Buildings
Utilized for this Account
Solar Capacity for
this Account (kW dc)
Ratio of Solar Nameplate Capacity to
Current Peak Demand (%)
Year 1 Solar Generation,
kWh
Percentage of Current Usage to be Met by Solar for this
Account
Abraxas Continuation High 4 2 22.680 13% 36,065 17%
Adobe Bluffs Elementary 9 4 40.545 18% 64,474 26%
Canyon View Elementary 5 3 32.595 14% 51,832 20%
Deer Canyon Elementary 11 4 42.135 16% 67,659 24%
Los Penasquitos Elementary 6 4 43.195 13% 68,688 19%
Mt. Carmel High 16 14 116.480 10% 190,671 8%
Painted Rock Elementary 4 4 45.360 12% 68,887 17%
Rolling Hills Elementary 3 2 22.260 36% 35,397 82%
Shoal Creek Elementary 12 5 55.650 18% 87,626 20%
Sundance Elementary 4 3 28.910 13% 45,972 14%
Tierra Bonita Elementary 3 3 33.390 12% 53,096 12%
Turtleback Elementary 6 3 33.390 15% 52,575 22%
Turtleback Elementary See Above 1 10.600 42% 14,888 60%
Twin Peaks Middle 8 8 49.560 11% 78,809 10%
Valley Elementary 7 5 55.620 20% 88,789 25%
All Accounts 98 65 632.370 13% 1,005,428 15%
30 | Confidential | December 1, 2017
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Poway Solar on Relocatable Classrooms Project - Typical Campus
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◦ Painted Rock Elementary
◦ SDG&E EECC
◦ 45.36.65 kW
◦ 68,900 kWh/yr
◦ 12% of demand, 17% of electricity
◦ $18k/yr in savings (net)
◦ Value of Solar = $0.43/kWh
Poway Solar on Relocatable Classrooms Project - Typical Campus
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Project Economics – Rollup
School Name
Number of Modular Buildings Utilized for this Account
Solar Capacity (kWdc)
Solar Generation, Year 1 (kWh)
Utility Bill Savings, Year 1
Solar PPA Charges, Year 1
Net Savings, Year 1
Abraxas Continuation High 2 22.680 36,000 $ 18,000 $ 6,000 $ 11,300
Adobe Bluffs Elementary 4 40.545 64,000 $ 27,000 $ 11,000 $ 15,500
Canyon View Elementary 3 32.595 52,000 $ 24,000 $ 9,000 $ 15,200
Deer Canyon Elementary 4 42.135 68,000 $ 29,000 $ 12,000 $ 17,600
Los Penasquitos Elementary 4 43.195 69,000 $ 30,000 $ 12,000 $ 18,400 Mt. Carmel High 14 116.480 191,000 $ 81,000 $ 33,000 $ 47,600
Painted Rock Elementary 4 45.360 69,000 $ 30,000 $ 12,000 $ 17,700
Rolling Hills Elementary 2 22.260 35,000 $ 10,000 $ 6,000 $ 3,400
Shoal Creek Elementary 5 55.650 88,000 $ 33,000 $ 15,000 $ 18,100
Sundance Elementary 3 28.910 46,000 $ 20,000 $ 8,000 $ 12,200
Tierra Bonita Elementary 3 33.390 53,000 $ 22,000 $ 9,000 $ 13,100
Turtleback Elementary 3 33.390 53,000 $ 25,000 $ 9,000 $ 15,600
Turtleback Elementary 1 10.600 15,000 $ 5,000 $ 3,000 $ 2,200
Twin Peaks Middle 8 49.560 79,000 $ 42,000 $ 14,000 $ 28,700
Valley Elementary 5 55.620 89,000 $ 33,000 $ 16,000 $ 17,600
All Accounts 65 632.370 1,007,000 $429,000 $175,000 $254,200
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Project Economics – Rollup (Cont.)
◦ Poway USD 14 Campuses
◦ Direct Access and SDG&E energy supply
◦ 632.37 kW
◦ 1 MWh/yr
◦ 13% of demand, 15% of electricity
◦ $254k/yr in savings (net)
◦ Value of Solar = $0.43/kWh
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System On-Line Production Monitoring
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