Review of SCEs LCR RFO March 28, 2016 1 Southern California Edison - - PowerPoint PPT Presentation

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Review of SCEs LCR RFO March 28, 2016 1 Southern California Edison - - PowerPoint PPT Presentation

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IDER Workshop Competitive Solicitations Review of SCEs LCR RFO March 28, 2016 1 Southern California Edison LCR Objectives & Procurement Authorization Primary Objective of LCR RFO Seek new resources in both West LA Basin and

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Southern California Edison 1

IDER Workshop – Competitive Solicitations

Review of SCE’s LCR RFO

March 28, 2016

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Southern California Edison 2

  • Primary Objective of LCR RFO
  • Seek new resources in both West LA Basin and Moorpark
  • LA Basin has CPUC‐defined targets for technology “buckets”
  • There are no CPUC‐defined technology “buckets” for Moorpark
  • Secondary Objective
  • Seek to procure MW to support Preferred Resources Pilot (PRP)
  • Johanna and Santiago sub‐areas
  • Improve reliability of Goleta sub‐area

LCR Objectives & Procurement Authorization

Target Description LA Basin MW** Moorpark MW Preferred and energy storage range 550 - 1,450

  • Energy storage minimum

50 (Separate Requirement)

  • Gas-fired generation range

1,000 - 1,500

  • All‐source* range

300 ‐ 500 215 ‐ 290 Total range 1,900 ‐ 2,500 215 ‐ 290

* All‐source means all technologies compete against each other with selection awarded consistent with the Loading Order and need assessments ** Procurement authority for both LTPP Track I and Track IV

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Southern California Edison 3

  • 2 step solicitation leveraged
  • Issued RFO documents to market
  • SCE hosted bidders conference
  • Indicative offers submitted to SCE
  • Shortlisting process completed and notifications made to counterparties
  • Negotiations completed
  • Final offers submitted to SCE
  • Agreements signed by all parties

RFO Process

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Southern California Edison 4

RESOURCE BUCKET COUNTERPARTY LCR MW DETAILS TOTAL LCR MW Gas‐fired Generation (GFG) AES 640 Combined Cycle, GE 7FA 2X1, ~ 6.8 HR @ Alamitos 640 AES 644 Combined Cycle, GE 7FA 2X1, ~ 6.8 HR @ Huntington Beach 644 Wellhead (DBE) 98 2LM 6000 Peakers @ Barre (RA‐only Contract) 98 TOTAL GFG 1,382 Renewables (RPS) Sun Power 10.32 Behind the Meter (BTM) Solar in J/S* 38 Sun Power 27.6 BTM* Solar in LA Basin Energy Storage (ES) Ice Bear 28.64 ES BTM Permanent Load Shift Thermal ES in J/S 264 AES 100 Front of Meter (IFOM) 4hr @ Alamitos Stem 85 BTM 4 hour like DR Hybrid Electric 50 BTM 4 hour like DR Energy Efficiency (EE) Onsite Energy, Sterling Analytics, & NRG 23.36 EE offers in J/S 124 100.68 EE offers in LA Basin Destributed Generation (DG) NRG 70 Distributed BTM generation that functions like DR 70 Demand Response (DR) NRG 5 Traditional DR in LA Basin, at least 4 hour dispatch 5 TOTAL PREFERRED RESOURCES & ENERGY STORAGE 431 TOTAL 1,813

LA Basin Final Selection

  • SCE procured approximately 170 MW less than the Track IV minimum authorization

and is working with the CAISO to determine whether additional resources are needed

* Behind the meter energy storage

Final list of contracts subject to change

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Southern California Edison 5

Moorpark Final Selection

  • Contract with the GFG resource is in the form of a fixed price RA‐
  • nly contract to avoid capital lease treatment

*This ES offer includes 54 MW of Ellwood GFG enhancement. The 54 MW does not count towards the LCR MW target

Final list of contracts subject to change

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Southern California Edison 6

  • Successfully executed a first‐of‐its‐kind, head‐to‐head

competition of all resource types

  • Market proposed wide range of innovative products
  • “Open for business” approach allowed for customized contracts

for new products

  • Developed methodology to determine savings through M&V

protocols

  • Methodologies distinct from DSM program EM&V approaches
  • Relationship management with bidders
  • Valuation approach that allowed SCE to compare costs and

benefits across resources

LCR RFO Process – What Worked Well

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Southern California Edison 7

  • Difficult task of creating pro forma contracts for new products like energy

storage and aggregated energy efficiency

  • RFO schedule – there was too little time between RFO launch and

indicative offer and the negotiations ultimately drug on too long

  • Requirements changed– LEFs, updated codes and standards, 20 minute

response time, 2 hour vs 4 hour

  • Accounting concerns caused delays and contracting complexity
  • Many cross‐cutting issues to address, particularly with energy storage but

also with PLS and renewable DG

  • Incrementality – how to prove a resource is incremental to something

that has not yet happened; how to ensure incrementality as legislation (e.g. AB 802), proceedings (EE OIR), and building code evolves over time (e.g. Title 24)

  • Valuation challenges ensuring all products were valued fairly, particularly

as it relates to energy storage

  • Implementation concern about overlapping preferred resource offerings

especially in focused local areas resulting in customer offer fatigue and competing objectives (i.e. CPUC EE goal and LCR goal)

LCR RFO Process – Challenges

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Southern California Edison 8

APPENDIX

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Southern California Edison 9

LCR Energy Efficiency & Peak Load Shed Contracts Overview

Contract Name Type Geographic Area(s) Delivery Term Total MW Commitment # of Agree‐ ments NRG Energy Efficiency‐P LLC EE Western LA Basin and Johanna‐Santiago May 2016 to Jan 2023 73 MW 4 NRG Energy Efficiency L‐LLC EE Western LA Basin and Johanna‐Santiago Jan 2017 to Feb 2025 30 MW 4 Onsite Energy Corporation EE Western LA Basin, Johanna‐Santiago, and Moorpark Jul 2017 to Mar 2025 17 MW 17 Sterling Analytics, LLC EE Western LA Basin Mar 2017 to Jun 2023 17 MW 7 NRG SPV #1 LLC

(Formerly Ice Bear)

PLS Johanna‐Santiago Oct 2016 to Dec 2037 26 MW 16

Final list of contracts subject to change

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Southern California Edison 10

Contract Name Type Geographic Area Delivery Term Monthly MW Commitment Hybrid Irvine 1 (AMS) BTM ES Johanna‐Santiago Jan 2017 to Dec 2027 Initial: 3 MW Peak: 5 MW Hybrid Irvine 2 (AMS) BTM ES Johanna‐Santiago Jan 2017 to Dec 2027 Initial: 3 MW Peak: 5 MW Hybrid WLA 1 (AMS) BTM ES Western Los Angeles Basin Jan 2018 to Dec 2027 Initial: 25 MW Peak: 25 MW Hybrid WLA 2 (AMS) BTM ES Western Los Angeles Basin Jan 2018 to Dec 2027 Initial: 15 MW Peak: 15 MW Stem 1 BTM ES Western Los Angeles Basin Jan 2018 to Sept 2026 Initial: 8 MW Peak: 78 MW Stem 2 BTM ES Johanna‐Santiago Oct 2016 to Sept 2026 Initial: 0.5 MW Peak: 7 MW NRG Curtailment Specialist DR Western Los Angeles Basin Jan 2018 to Dec 2021 Initial: 5 MW Peak: 5 MW

LCR Demand Response & Energy Storage Contracts Overview

Final list of contracts subject to change

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Southern California Edison 11

Contract Name Type Geographic Area Delivery Term Monthly MW Commitment Solar Star California XXXIV, LLC BTM Solar Goleta Oct 2016 to Sept 2031 1 MW Solar Star California XXXV, LLC BTM Solar Johanna‐Santiago Oct 2016 to Sept 2031 12 MW Solar Star California XXXVI, LLC BTM Solar Western Los Angeles Basin Jan 2018 to Dec 2033 13 MW Solar Star California XXXVII, LLC BTM Solar Western Los Angeles Basin Jan 2018 to Dec 2033 5 MW Solar Star California XXXVIII, LLC BTM Solar Western Los Angeles Basin Jan 2018 to Dec 2033 14 MW Solar Star California XXXIX, LLC BTM Solar Moorpark Jan 2016 to Sept 2031 5MW

LCR Demand Response & Energy Storage Contracts Overview

Final list of contracts subject to change