Tackling Demand Charges Strategically With Solar and ...€¦ · Solar: 632 kW solar + utility rate...

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

40

20

23

3

7

8

1610 1

27

24

22

28

3230

2934

35

37

38

36

11

6

5

19

1814

15

39

31

25

◦ 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

1212/1/2017

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.

25 | Confidential | December 1, 2017

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.


VER10302017

◦ 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


VER10302017

◦ 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.)


VER10302017

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%


VER10302017

Poway Solar on Relocatable Classrooms Project - Typical Campus


VER10302017

◦ 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


VER10302017

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


VER10302017

System On-Line Production Monitoring


VER10302017

Tackling Demand Charges Strategically With Solar and ...€¦ · Solar: 632 kW solar + utility rate...

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