for Northern New Mexico Luis A. Reyes, Jr. CEO Kit Carson Electric - - PowerPoint PPT Presentation

An Integrated Renewable Energy Plan for Northern New Mexico

Luis A. Reyes, Jr. CEO Kit Carson Electric Cooperative, Inc. October 25 & 26, 2018

Kit Carson Electric Cooperative, Inc. 2018 1

Kit Carson Electric Cooperative, Inc. (KCEC) has 29,500 electric members, 6,700 Broadband members and 3,100 propane members serving Taos, Colfax and Rio Arriba counties, including 2 Pueblos in North Central New Mexico. KCEC has approximately 2900 miles of electric and high speed fiber optic lines. KCEC has recently began constructing a distributed solar fleet with storage integration to service 100%

• f KCEC’s daytime peak kW by 2022.

In 2016 Kit Carson exited from it long term All- Requirements Power Contract with its G & T, Tristate, and contracted with a Power Marketer, Guzman Energy, for KCEC power supply for the next 10 years.

Kit Carson Electric Cooperative, Inc. 2018 2

Baseline In Infrastructure is is a

High Speed Fib iber Network

Kit Carson Internet serves over 6,700 customers including members who reside in areas where broadband was not available or service was limited. Additionally, to date the project has created 405 jobs, 90% which have been local; which were tied to physical main line construction. It has also given our local contractors and their laborers the experience and the skill sets to bid, and obtain projects outside the KCI service

• territory. This endeavor has greatly added to the economic

viability of our surrounding communities. Broadband is the foundation for future economic development. KCEC has been deploying Fiber Services for electric operation since 2005.

Benefits of High Speed Fiber

• Real Time Pricing
• Enable Smart Grid
• Matching and Adjusting Solar Loads with Battery

Storage

• GB Commercial Service

Kit Carson Electric Cooperative, Inc. 2018 3

Benefits of f Broadband

• Economic development and load growth
• High speeds – 40 Mbps to 1GB
• Affordability - High Speed Access to all members
• Data reliability
• 82% of organizations now use Cloud services
• “Symmetric speed” - uploads and downloads simultaneously
• Better quality for VoIP users – Star to Star
• Improved collaborations – video conferencing
• Business security and productivity
• Home video streaming

• 2000 - Plains/Tri-State G & T’s merge, creates a 44 member G & T.
• 2002 - WESC term increases from 2020 to 2040.
• 2006 - WESC term increase to 2050. KCEC refuses to extend.
• 2013 -1st Rate Case for Tri-State in NM before NMPRC.
• 2014 - Begin Discussion with Tri-State on Exit of WESC.
• 2014 - 2016 – Due Diligence and Exit Work with Tri-State, Third Parties,

RUS & CoBank

• 2016 - Solicit a New Power Supplier
• July 2016 - Exit from TS complete, New PPA with Guzman Energy

Commences

• December 2016 - Begin 100 % Solar Daytime Peak Project
• 2018 - Release Storage RFP

Power Supply His istory ry

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The Landscape Is Is Changing

Kit Carson Electric Cooperative, Inc. 2018 6

Tristate Exit Facts

• Exited Tri-State July 1, 2016
• Expected to save $63m over 10 years
• 10 year contract
• KCEC will pay the buy out amount of $37M by 2022
• Signed NDAs

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Exp xpected Fin inancial Benefits of Solar Pla lan

• Over the next several years the cost of renewable energy (solar and storage) will

decrease by over 40%.

• believes renewables, and solar in particular, will be the main driver of the U.S.

energy growth in the next decade.

• Solar will contribute more than 1,400 GW of installed capacity nationwide,

accounting for 17% of electricity generation mix and nearly 38% of all investments in the energy sector through 2030.

• We also expect solar competitiveness to continue to improve as the cost of

installations decline further.

• Within 5 years we believe the cost of solar to decline by almost 25%.
• There will be addition cost savings as more advanced technology comes online

and with energy efficiencies

Kit Carson Electric Cooperative, Inc. 2018 8

Solar Plan Timeline

• Achieve 100% Daytime Renewables by 2023
• 2016 - 2017 – Announcement of the Solar Plan, 10 MW installed and activated.
• 2018 - 4-6 MW installed and activated, RFI / RFP for a storage partner, NREL

Solar Energy Innovation Network participation.

• 2019 - Integrating New Technologies: EV charging stations, additional 4-6 MW,

locate optimal place for battery storage.

• 2020 - 2021 - Add 4-6 MW, analyze first financial savings.
• 2022 - Greater System Reliability, Emergency Preparedness and approximately a

40% Cost Savings energy savings.

• Partnerships – Town of Taos, Village of Red River, Village of Angel Fire, Village of

Eagle Nest, Village of Questa, Picuris Pueblo, Taos Pueblo, UNM, NNMC, Chevron, RCCLA, School Districts, Private land owners, a truly community project

• Arrays are built by a local solar company, Sol Luna Solar

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Current Renewable Goals

• 35 - 40 MW Solar (1 MW Scale) and Battery Storage (100 % Daytime)
• 2018 - Release Battery Storage RFI
• 2019 – Implement Battery Storage
• NREL Solar Energy Innovation Network
• April 2018 Press Release
• Replication Symposium June 2019
• Continued Broadband Implementation for “Smart Grid” integration
• ARRA “Fiber to the Home” grant awarded 2010 and completed 2015
• Researching new technologies in the move toward 5G

National Renewable Energy Labs

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National Renewable Energy Laboratory (NREL), the U.S. Department of Energy (DOE) Solar Energy Technologies Office’s Solar Energy Innovation Network (SEIN) and Kit Carson Electric Cooperative,

• Inc. will be working together for the next 18 months to on a project called, the Resilient Renewable

Energy Roadmap for Rural Electric Cooperatives. The focus is to pilot KCEC’s 35MW solar project with battery storage and model how to address the nation’s rapidly changing electricity needs. Goals

• Develop solutions for improving reliability and affordability of solar energy through options

analysis and systems design.

• Focus on evaluating the grid impacts and costs anticipated for various penetration levels of solar

and other distributed energy resources (DER).

• Provide available data and work in coordination with program staff to model approaches to

minimize costs for combinations of solar and other DERs.

• Pilot and test approaches and document through case studies.

Kit Carson Electric Cooperative, Inc. 2018

National Renewable Energy Laboratory ry

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Project Outcomes

• Develop a KCEC service area energy roadmap to achieve goal of 35to 40

megawatts (MW) of renewable energy electricity supply by 2022.

• Complete one case study of a pilot solar PV technology system installation with

the intent of broader replication.

• Demonstrate an operations model for rural electric cooperatives (RECs) to

integrate DERs with storage into their portfolios including behind the meter application.

• Participate in regional resilient energy planning efforts.
• Develop a business model with best practices and build the internal capacity to

make the resilient and renewable energy transition.

• Advance an education program on options for integrating resilient, renewable

electricity supply for cooperatives.

Kit Carson Electric Cooperative, Inc. 2018

NATIONAL RENEWABLE ENERGY LABORATORY 14

TRI-STATE G&T service territory KCEC operation region (New Mexico) Solar arrays KCES owns and operates Solar arrays under development

Kit-Carson plans to install up to 35 to 40 megawatts of solar generation by 2022 this summer around Taos, with a goal of achieving 100% day time solar To achieve even higher PV penetration levels, NREL will develop a planning tool for KCEC that helps plan and achieve this goal.

NREL Modeling Project Summary

Ensure that any new PV installations complies with applicable interconnection standards The tool should be able to : Estimate reverse power flows at the substation level for a given load and PV forecast Identify potential bottlenecks in the network (both current and voltage constraint elements)

NATIONAL RENEWABLE ENERGY LABORATORY 15

Energy Storage market inthe United States continues to evolve. Both the technology mix and application mix have changed substantially over the last 5 years. We expect the evolution ofthe energy storage market to continue with commercially viable solutions to be available in the next 3 to 5years. Storage solutions in the current market environment make most sense where a combination of the following 3 factors are available:

• High electricity rates (CA,

MA,NJ)

• High renewables

penetration (TX,CA)

• Availability of storage

subsidies (CA, NY)

• AR

• IA

• DC

• 0.2

• NE

• RI

• 1.0 SC

• ND
• SD

• WI
• WY

1,501.1 US <5MW 5-55MW >55MW No storage CA:1.3GW storage mandateby 2020 HI: KIUC SolarCity 20-year PPA17MW solar + storage HECO plansat least90MW PJM:265MW+

• perational for

frequencyregulation NY: Storage subsidy in New York City; Con Edison announces 1.8MW ‘virtual power plant’ demonstrationproject IN: 20MWAES Indiana projectfirst project in MISO TX: Austin targeting 200MW by 2024; Duke Energy repowered 36MW, added 2.2MW for renewablesintegration; 1.7MW storage in microgrids VT:4.3MW installed in microgridprojects

Storage Initiative

for PGEand PacificCorp Ontario, Canada: Grid operator contracted 50MW of storage WA: $14.3m grant for storageprojects OR:5MWh procurement

AZ: Tucson Electric Power awards two 10MW projects

incentivefor projects

Recently Announced Energy Storage Projects(MW)

0% 25% 50% 75% 100% 2011 2012 2013

Technology mix of commissioned energy storage projects (MW)

Compressed air energy storage Lithium-ion batteries Flow batteries Supercapacitors

2014 2015 H12016

Sodium sulphur batteries Lead-based batteries Flywheels Sodium nickel chloridebatteries

Energy Storage Market Environment

Battery ry Storage

Currently Underway - Power storage and diversification of power sources are a key to future price stability. Solar is our members’ supply of source but intermittent, thus storage is key.

• RFI
• RFP
• Estimating 3-4 MW of Storage in 2019
• 4-6 MW in 2020

Potential Benefits

• Intelligent energy storage and

frequency regulation

• Increased grid resilience and Stability
• Enhanced efficiency of renewables
• Cost Savings
• Reduce KCEC peak energy demand by

at least 3MWs as metered for transmission purposes

• Self-supply Spinning Reserves Schedule

5 as defined in PNM OATT

• Peak Shaving
• Rate Design Enhancements
• Rates around an asset
• Dynamic pricing

Kit Carson Electric Cooperative, Inc. 2018 16

Electrify fy Every rything

Solar Panels

Electric Water Heater Electric Vehicle Electric Heater Battery Storage

Kit Carson Electric Cooperative, Inc. 2018 17

Electric Vehicles are the Future

Nationally The Fourth Industrial Revolution in energy and transportation systems is upon us and New Mexico must deploy critical charging infrastructure today while anticipating the mobility transformation. Locally Deploying the first charging stations in the KCEC Service Area in anticipation of the transportation transformation and as a tool to encourage tourism.

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A New Business Model Is Emerging

Rate Design Tariffs

Governance

Forecasting Decoupling Broadband Solar Energy and Battery Storage Electric Vehicles Resilient Two Electric Grid

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The New Energy Future

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Thank you

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