February 24, 2015

NY Prize

Powering a New Generation of

Community Energy nyserda.ny.gov/nyprize

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Communities

• Energy Storage & Microgrids

• Energy Efficiency

• Smart Cities & Transportation

• Smart Grid

• Climate Change

• CSR & Sustainability

• Green Building

• Renewable Energy

• Data ESG & Reporting

• Finance

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• Developed & Manage GridMarket.com – online energy

storage & distributed energy resource platform

• Conduct feasibility studies & assist the application process

for programs like New York's DMP and now, the NY Prize

• Feel free to use us as a resource

• For more information on AGRION, visit agrion.org or contact

Brian Cabezas, brian.cabezas@agrion.org

@AGRION @gridmarket

Our Work with Distributed Energy Resources

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Agenda

• Introduction - Jim Gallagher, NYS Smart Grid Consortium

• NY Prize: Context and Outcomes - Micah Kotch, NYSERDA

• NY Prize: Application Process, Structure and Timing -

John Saintcross, NYSERDA

• NYS Critical Facility Resiliency Report: Key Findings and

Implications for NY Prize - Mike Razanousky, NYSERDA;

Tammy Mitchell, DPS; Chuck Phillips, DHS-ES

• Q&A - moderated by Jim Gallagher, NYS Smart Grid

Consortium

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NY State Smart Grid Consortium - Overview

James T. Gallagher, Executive Director

nyssmartgrid.com

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NYS Smart Grid Consortium - Mission

Ongoing advocacy of Smart Grid/grid modernization

• Maintain vision of future grid

• Advocate benefits for producers, suppliers, and consumers of power

• Support initiatives that demonstrate capabilities of the smart grid

• Educate public, regulators, and policy makers

• Emphasis on aggressive real world projects, including NY Prize and the

NY PSC's Reforming the Energy Vision Proceeding

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NY’s Reforming the Energy Vision (REV)

• Fundamental changes in ways utilities provide distribution service

• Aligning electric utility practices and regulation with technological

advances in information management, pricing, power generation and

distribution

• Improving system efficiency, empowering customer choice, and

encouraging greater penetration of clean generation and energy efficient

technologies and practices

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REV Market Design & Platform Technology

• January 2015 - DPS ruling to convene two working groups

• Address market design and platform technology

• Recommend market rules and technical standards

• Provide guidance to inform utility Distribution System Implementation

Plans

• Co-facilitated by DPS Staff, NYS Smart Grid Consortium and Rocky

Mountain Institute

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NY Prize

Community Grid Competition

Context and Outcomes

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Outreach Session Wednesday, February 25, 2015

10 a.m.

Dial in: 877.616.4349

Code: 89850133

For questions about your application

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Smart Grid is a Priority in CEF

Technology and applications that improve asset

utilization, improve efficiency, maintain strict

security, lower consumer costs and lower the

carbon intensity of the electric-power sector

nyserda.ny.gov/Cleantech-and-Innovation/Smart-Grid

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NY Prize

• Pipeline of ~25 feasibility

studies

• 10 designs selected

• At least 5 projects

constructed

• Replicable strategies

(“playbook”) for

communities in NY and

beyond

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REV

Emissions Reductions

Economic Development & Jobs

Reforming the Energy Vision (REV) Reforming the Energy Vision — New York’s comprehensive strategy to enable

self-sustaining clean energy markets supporting a cleaner, more reliable, and

affordable energy system.

What Do We Want and Need?

Affordability

Reliability

Choice and Control

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Community Engagement

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Your community is an important

component of this revolution...

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Empowering Customers

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Why

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Economic Burden on Customers

Over the past ten years, we spent $17 billion to maintain our

electric power grid. We predict that number to jump to $30 billion

over the next decade.

$17B $30B vs.

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Why

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54%

Economic Burden on Customers

The rate of capacity utilization of our electric power grid is:

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• Power outages

cost New Yorkers

$9 billion per year

• New Yorkers pay

among the highest

average rates for

electricity in the U.S.

Extreme Weather – The New Normal

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• Sense of urgency

• Extreme weather

events

• Aging infrastructure

• Increased energy

demand

What’s Different Now?

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No Standby Generators

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What is a Microgrid?

A group of interconnected

loads and distributed energy

resources that form a single

controllable entity capable of

operating continuously in

both grid-connected and

islanded mode.

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Not New . . . Not Backup Generation

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Future of Energy

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“This is exactly the type of project that allows us to

modernize the grid, while embracing innovation and

efficiency to provide customers with the service they

demand in the 21st century.“

Ken Daly – President, National Grid New York

GE researcher Sumit

Bose, part of DOE &

NYSERDA funded

microgrid development

February 24, 2015

NY Prize

Community Grid Competition

Quick Guide

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Key New York State Initiatives • Reforming the Energy Vision (REV)

• REV Pilots/Demonstrations

• Clean Energy Fund (proposed - 10 year; R&D and Mkt. Dev. programs)

• Smart Grid R&D (9 year)

• Microgrid Design Projects (4 underway)

• Comprehensive Microgrid Assessments completed

Microgrid Assessment (2010)

on.ny.gov/1ukZOa8

Microgrids for Critical Facilities (2014)(includes case studies)

nyserda.ny.gov/-/media/Files/Publications/Research/Electic-Power-Delivery/Microgrids-for-Critical-

Facility-NYS.pdf

• NY Prize Community Microgrid Competition

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NY Prize – Multi-Stage Competition

• The $40 million NY Prize community microgrid competition

(RFP 3044) is comprised of three stages:

• Stage 1: Feasibility Assessment (OPEN)

• Stage 2: Engineering Design and Financial /Business Plan

• Stage 3: Microgrid Build-out and Operation

• Open enrollment structure to accelerate pipeline of projects

• Can enter without having been awarded for previous stage

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Award Process

~25 awards for

studies

(up to $100K)

8-10 Awards

(up to $1M)

$2-3m

$8-10m

Allocations

$27-30m 5-7 Awards

($5-$7M)

Critical project partners:

Municipalities and Utilities

All communities enter/apply to competition and

are evaluated at each stage by external judges

Stage 1

Awards to Conduct

Feasibility Assessments

Stage 2

Feasibility Evaluated

Awards for Audit Grade

Design

Stage 3

Designs Evaluated

Awards for Build-out/

Operation

Threshold Audit

Grade Design Criteria

Threshold Qualitative

Criteria

Audit Grade Design

Review

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NY Prize – Competition Schedule1

Milestone Date

Stage 1 Proposals Accepted Through May 15, 2015

Stage 1 Proposals Evaluated Weekly through May 28, 2015

Stage 2 Open/Entries Accepted May 15, 2015 through February 2016

Stage 2 Proposals Evaluated Through March 2016

Stage 3 Open/Entries Accepted July 15, 2015 through December 2017

Stage 3 Proposals Evaluated Every 6 months through January 2018

Project Commissioning 24 months after contract execution

1 RFP 3044 governs/schedule subject to change

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NY Prize – Stage 1 of Competition Cultivating Community Prospects

• Community teaming arrangements

• Consider targeting utility “opportunity zones”

• Embedded utility/community-municipal partnership

• Energy efficiency, CHP, solar, other resources part of resource portfolio

(leverage portfolio of current incentive programs)

• Mix of customer types

• Critical public facilities in mix (minimum of one must be included)

• U.S. Housing and Urban Development objectives considered (impacted

population involved; weather, income)

• Consider REV demonstration/laboratory

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NY Prize – Stage 1 Feasibility Study • NY Prize is making up to $100,000 available, on competitive basis to

conduct assessment (no cost-share is required)

• Applicants expected to conduct preliminary microgrid planning to

submit viable proposal(high-level assessment included in proposal)

• Proposals will be evaluated, on an as-received basis, against

pre-scribed evaluation criteria

• Outreach session scheduled for February 25,10 a.m. EST

(Participant Dial-In Number: 877.616.4349; Conference ID 89850133)

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• The overall cost and benefits of the project

• The project’s contribution to public need (increasing

safety and quality of life for residents in an outage situation)

• The technical and operational performance of the project

• The demonstrated reliability of the proposed

microgrid configuration

• The use of clean and renewable generation resources

in the project

• Overall financial and managerial capabilities of the developer

Evaluation Criteria

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1. Refer to RFP at nyserda.ny.gov/nyprize

2. Assemble working group/core team

3. Identify local cluster of assets including critical infrastructure

4. Organize and educate core stakeholders

5. Identify FlexTech resources or other project consultants for feasibility

study and/or design

Find FlexTech contractors by emailing flextech@nyserda.ny.gov

Next Steps

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February 24, 2015

Critical Facility Resiliency

Study

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Facilities so vital to the state that the disruption, incapacitation or destruction of such

systems could jeopardize the health, safety, welfare or security of the state, its residents

or its economy.

Tier 1 Types:

• Hospitals/Critical Care

• Police/Fire

• Wastewater Treatment/Water

• Universities/Schools

• Facility of Refuge/Shelters

What is a Critical Facility?

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• Focused on geographic regions that experienced extended power failures due

to extreme weather events between April 2011 and April 2013 (NYC, Broome,

Rockland, Nassau, Suffolk)

• Potential regulatory structures under which microgrid systems would operate

• Operation of microgrid conform to or be compatible with current utility

requirements and plausible ownership models

• Type of microgrid configurations, incorporating various distributed generation

would optimally support mission critical services for extended grid outages

• Technical and regulatory issues needing to be addressed to connect the

microgrid to the utility distribution network

• Approaches that would be most appropriate for funding installation,

operation and maintenance of a microgrid

NYS Critical Infrastructure Microgrid Study

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New York City Microgrid Site

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• Metropolitan Hospital Center.

• Main hospital (18 floors): Level II trauma center, capable of initiating definitive care for

all patients (240 beds)

• Mental health building (16 floors): 120 beds

• Outpatient department (8 floors): provides ambulatory care during business hours

• Peak demand: 2.4 MW to 5.0 MW (varies seasonally)

• New York City Housing Authority (NYCHA) apartment complex.

• Lexington Houses - 4 buildings

• George Washington Houses – 15 buildings

• Total of approximately 2,000 units; 4,400 residents

• Peak demand: 3.1 MW to 6.0 MW (varies seasonally)

• Verizon

• Central telecommunication switching station

• Peak demand: approximately 700 kW (little seasonal variation)

New York City Case Study:

Facilities to be Served by the Microgrid

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• Incorporates the four generators currently available – 2,775 kW

capacity

• Adds six diesel generators to meet estimated demand during a

major power outage

- Total added capacity: 3,375 kW

- Capacity of individual units: 375 kW to 750 kW

• Total system capacity: 6,150 kW

• Sufficient to support the following loads:

- 40 percent of Metropolitan Hospital peak demand (i.e., critical

load)

- 50 percent of NYCHA peak demand

- 100 percent of Verizon peak demand

Summary – Site Microgrid Design

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Site Electrical Infrastructure

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Control & Communications Architecture

Building/Facility (Location is

approximate)

Metropolitan

Hospital

CB

CB

GEN1

600 kW

GEN2

675 kW

GEN3

750 kW

CB

CBCB

B4

B1

B15

CB

Verizon

GEN1

750 kW

B4

B3

B2

B1

B5

B6

B10

B7

B8

B14

B13

B12

B11

208V/13kV

CBCB

B2

B3

B9

New Gen

1x1000 kW

2x500 kW

CB

New Gen

750 kW

New Gen

750 kW

New Gen

375 kW

MG Master Control Station

• MG Utilities / HMI

• Hardened Computer

• MG Controller (U90+)

• Protocol Gateway (D400)

• Ethernet Switch

• Wireless Access Point (1)

Uti

lity

WA

N L

ink

MG

Backhaul

Network

• 4G/3G

• WiMAX

• 900 MHz

Metro Control Station

• Wireless Node (1)

• Hardened Computer

• DER Controller (D25)

• BEMS Interface

• Metering & Sensing

• Automation

• Device Controller

1

5 Control Node

MG Control

Station

Ge

ne

ratio

n

Op

tim

ize

r

Ma

ste

r

Con

tro

ller

NYCHA - Lexington

Control Station (4 Bldg)

• Wireless Node (4)

• Hardened Computer

• DER Controller (D25)

• Metering & Sensing

• Automation

• Device Controller

Verizon Control Station

• Wireless Node (1)

• Hardened Computer

• DER Controller (D25)

• BEMS Interface

• Metering & Sensing

• Automation

• Device Controller

NYCHA - Washington

Control Station (15 Bldg)

• Wireless Node (15)

• Hardened Computer

• DER Controller (D25)

• Metering & Sensing

• Automation

• Device Controller • IEC 61850

• Modbus TCP/IP

• Secure Wireless

CB

CBExisting Generator

CB Existing Circuit Breaker/Switch CB New Circuit Breaker/Switch

New Transformer

Low Voltage

High Voltage

New Distribution Line Existing Distribution Line

Padmount Transformer

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• Fully-installed capital costs (GE): $5.9 million

New generators - $2.9 million

Electrical infrastructure - $2.0 million

Control and communications infrastructure - $1.0 million

• Initial design and planning (GE): $5.7 million

$5.1 million in site-specific planning and administrative costs

$554,000 in engineering design costs (1/5th of a total of $2.76M in design costs, to

be spread across 5 sites)

• Fixed O&M costs (GE): $45,000/year

Includes software licenses and 24/7 technical support

Provides for routine software maintenance and upgrades

• Annualized costs: $914,000/year

Assumes 7 percent annual discount rate.

Upfront costs annualized over 30-year system life.

Fixed Costs for the New York City Site

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Benefit-Cost Analysis – Model Overview • Structure: linked worksheets

• Site overview and summary of results

• Site inputs

• Intermediate outputs

• Cost calculations

• Benefit calculations

• Calculation of benefits during extended power outages

(Fire Station, EMS, Hospital, Police, Electric Power,

Wastewater, Water, Other)

• Data (Power Outages/Standard Values, Crime Data)

• Analyzes project impacts over a 20-year operating period

• Results are reported in 2013 dollars

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• Valuation of benefits is based upon the underlying value of the public services

maintained during major outages

• FEMA’s Hazard Mitigation Grant Benefit-Cost Analysis methodology:

- Applies standard economic values and site-specific variables to characterize

the economic damages that may result if an outage interrupts fire, hospital,

police, or emergency medical services

- Can also be applied to value the impact of lost water, wastewater, and

electric power service

• The model includes worksheets designed to help the user apply FEMA’s

methodology to estimate the value of protecting each of these services during

extended outages

• The model can also accommodate the valuation of benefits for other services

using methods tailored to the characteristics of a particular site

Benefits of Maintaining Critical Services

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• Principal benefit categories:

• Energy/Economic benefits

• Reliability benefits

• Power quality benefits

• Environmental benefits

• Safety and security benefits

• Utility benefits

• Energy benefits include both energy cost savings and capacity

cost savings.

• Energy cost savings include costs avoided in generating

electricity, as well as efficiencies realized through installation of

CHP/CCHP systems.

Microgrid Benefits

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• Preliminary BCA examined potential impact of participating in

peak load support

• Two scenarios studied:

Use all Generators – including Metro. Hospital

Total Capacity – 6.15 MW

Exclude Metro Hospital Generators

Total Capacity - 4.125 MW

Peak Load Support Scenario

• Approximate annual overall benefit: $970,000

Assumes support for 20 hours per year

Capacity Cost Savings - $1.0 million

Operating Costs - $46,000

Reduction in Macrogrid Operating Costs - $14,000

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• Cost benefit was not economically feasible at the sites analyzed.

• Primarily due to the robust backup generation available at most of

the critical facilities and costs associated with the electrical wiring,

communication and controls

• Microgrid designs are highly unique.

• Difficult to extrapolate benefits and costs from one site to another.

• Cost-effectiveness improves if the system can operate regularly, rather

than solely as back-up generation.

NYS CI Microgrid Study Findings

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NYS CI Microgrid Study Recommendations

Support microgrid development at critical infrastructure sites with

favorable benefit-cost analysis

Further development on microgrid technology and appropriate

applications

Disseminate objective information, tools and other resources to

encourage development of microgrid projects

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Outreach Session Wednesday, February 25, 2015

10 a.m.

Dial in: 877.616.4349

Code: 89850133

For questions about your application

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Questions

Program Contacts:

Mike Razanousky @ michael.razanousky@nyserda.ny.gov

John Saintcross @ john.saintcross@nyserda.ny.gov

#NYPRIZE

nyserda.ny.gov/nyprize