Regional Solar Dialog CLEER/NREL Workshop 2/21/2019 Glenwood - - PowerPoint PPT Presentation

Regional Solar Dialog


CLEER/NREL Workshop
 2/21/2019
 Glenwood Springs, CO


• Update on the 70/70/30 goals
• Looking to the 20s in the 20s
• Local Solution drivers

Outline

Update on Holy Cross Energy
 70/70/30 Program Goals

Update on 70/70/30

Resource planning assumptions

• Bulk Wind = ~100MW wind PPA, scheduled for 2021 delivery


(Reviewing RFP bids for contracting in mid-2019)


• Bulk Solar = ~25MW solar PPA, expected for 2022 delivery

• Distribution System = ~25MW solar through 2030 @ 5MW/3-

years


(includes Gypsum and Woody Creek 5MW projects, in permitting)


• Behind-the-Meter = ~24MW solar through 2030 @ 2MW/year

(HCE currently has about 33MW of active distributed generation capability installed at ~ 1300 member locations)

These assumptions are guiding our decisions with respect to resource selection and program development

CO2 Emissions Projection

RE % Projection

RE% forecast by 2030 ~ 75%

The 20s in the 20s

During the 2020s installed renewable resources will be serving above 70% of Holy Cross’ annual energy supply This causes many hours where available renewable energy production is greater than electric use by customers This “oversupply” creates lost opportunity

• It is a lost chance to generate electricity from renewable resources

and to supply our customers from renewable energy

Driving the final wedge…

HCE expects that getting the last available 20% of thermal/combustion resources out of the power supply will be less about generation than it will need to focus on load The oversupply opportunity of renewables creates economic incentives to meet energy demand through greater flexibility from the load side, rather than installing more and more renewable generating resources

• Storage is just one form of demand flexibility, among many

additional options

Changing the optimization question

Local Solution Drivers

In achieving the last 20% renewable supply, load becomes a key variable that can be matched to the supply opportunity

• New utility programs will give our members an incentive to help
• New products and rates will create avenues to achieve savings

Also – as electric supply becomes more renewable, the environmental benefits of electrification increase

• Electric Vehicles avoid combustion and can create flexible load for

the utility through time-of-use rates and dispatchable charging

• ptions
• Creates a win/win scenario in taking full advantage of available

renewable energy

Local Solution Drivers

Why Consumer Programs?

Consumer programs can provide multiple flexibility benefits to HCE

• Capacity management
• Energy management
• Energy effjciency
• Beneficial electrification

Programs must be designed in parallel with new rates and incentives to achieve desired outcomes in a cost-efgective (and equitable) way

Compensation for New Programs

Avoided costs form foundation for rebates/incentives

• Capacity – tie to resource capabilities, seek measurable

performance

• Effjciency benefits tied to installation are not “pay for

performance” but are based on one-time initial installation rebates, with validation

• Pay-for-performance is based on ongoing operational

participation and response in HCE programs

• Energy – tie to expected production or reduction

Example: Demand Response Program Payment Valuation

Demand Response Program Participation Options HCE Control Option Response Highest value/payment Member Control Option Response Behavioral, No member direct payment Measured/metered Response Next-highest value/payment Statistical, Lower value/payment

Our members are our owners, we are a non-profit business We do not generate earnings based on capital investment We expect incentives for our members’ demand/energy programs to be based on the avoided costs of alternatives Rates and program development to complement renewable integration will be an important focus in the coming years Regional partners like CLEER and research institutions like NREL will be key collaborators in our development of the capability to achieve the last 20%

Coop Ability and Incentives

END