Rick Dunn, P.E. Benton PUD Senior Director Engineering & Power - - PowerPoint PPT Presentation

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Energy Northwest Member Forum Navigating Utility Impacts from Solar Resources Rick Dunn, P.E. Benton PUD

Senior Director – Engineering & Power Management

October 23, 2014

WHY NOW AT BENTON PUD?

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Source: NREL Resource Assessment Program

 Benton PUD  80% renewable hydro  91% carbon free  Washington State  70% renewable hydro  77% carbon free

Source: State of Washington Department of Commerce

 Washington State  Lowest solar potential per square meter in the U.S.

On On th the surface ce, , number bers are not

• t

compelli elling ng for our sta tate but t busin iness ess and indus dustr try tr trend nds s are telling ing a different erent story.

LEGISLATORS – ACTING ON ENVIRONMENTAL BELIEFS

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ORGANIZATIONS & BUSINESSES RESPOND

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60 St Stores res

• Arizona

izona

• Califor
• rni

nia

• Hawa

waii

• New York

rk

• Oregon
• n

BUSINESS INFLUENCES “GOOGLE FACTOR”

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Google gle invest sted ed $280M in SolarCity City

SOLAR INSTALLATION COST CURVE

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≈$5.50/Watt

Source: Rocky Mountain Institute

LOCAL COMMUNITY INFLUENCES

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NEW TECHNOLOGY RESEARCH & DEVELOPMENT

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UBIQUIT ITOUS OUS SOLAR R PANELS LS? Colorful, see-through solar cells invented at the University of Michigan could one day be used to make stained-glass windows, decorations and even shades that turn the sun's energy into electricity. ENERGY STORAGE ADVANCEMENT NTS Harvard University researchers say they’ve developed a new type

• f battery that could make it economical to store a couple of

days of electricity from wind farms and other sources of power. Battery based on an organic molecule—called a quinone—that’s found in plants such as rhubarb and can be cheaply synthesized from crude oil. The molecules could reduce, by two-thirds, the cost of energy storage materials in a type of battery called a f flow battery, which is particularly well suited to storing large amounts of energy.

Source: MIT Technology Review

SOLAR + ENERGY STORAGE

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• Electri

ctric c Vehicle e Market et

• Lithium-Ion Technology
• Tesla & Solar City
• FERC

C Orders 755 & 784

• Increased pay for “fast” grid frequency

regulation (generation & load balance)

• Requires tariffs to include accuracy in

addition to capacity

• Calif

ifor

• rni

nia AB 2514

• 1,325 MW energy storage by 2020
• First solicitation by December 1, 2014
• Absolute installation by 2024

Source: Rocky Mountain Institute



Worldw dwide de and nation

• nal

al trends s toward small-sc scal ale e more dispersed sed generat ation

• n

resour urces ces make it apparent we need to begin considering adjustments to our current practices and policies



Susta taina nabilit ity and minimizing your carbon

• n footpri
• tprint

nt



Common objectives for many individuals, particularly the next generati tion

• n of

energy consumers



Solar energy emerging as the renewable resource with the stronges gest t susta tain inability ability label



Washi hingt ngton n state e renewable energy system cost-recovery incenti tive e payment nts s are some of the highest in the nation



Platform for customers to develop energy independen ndence ce and/or exercise envir ironme nment ntal al beliefs efs



Governor Inslee’s execut utiv ive e order 14-04 appears to support continued incentives

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WHY NOW AT BENTON PUD?



Facts ts surrounding technologies and costs of "clean energy“ difficu icult t to comp mpil ile and understa tand nd



Benton PUD is well positioned to connect our customers with the technical and financial resources they may need



Benton PUD believes it is prudent to begin now to develop the relationshi

• nships,

ps, processes esses and capabi bilit ities es to efficiently and cost effectively integrate customer generation



Need to increase se our credibility ility and influen ence ce in shaping state and national energy policies



Requires actions

• ns we can point to



Move from the “no side” of the renewable energy argument where possible



Maintain hallmarks of public utility business model; community munity ownershi ship p and local control

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WHY NOW AT BENTON PUD?

COMMUNITY OWNERSHIP & LOCAL CONTROL

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79 kW Clean Energy y Collecti ctive

Comm mmuni nity ty Solar Projec jects ts are gaining ng moment

• mentum

m aroun und d the e coun untr try

COMMU MMUNIT NITY Y SOLA LAR R - IN INCENTIVE ENTIVE PAYMEN ENTS

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COMMUNITY SOLAR - WASHINGTON STATE

Stan andar dard Utility ility Owned Compan pany

Max Projec ject t Size e 75 kW 75 kW 75 kW Owner ersh ship ip

• Local individuals
• Households
• Nonprofit organization
• Non-utility business
• Voluntarily funded by

utility ratepayers

• LLC
• Cooperative
• Mutual Corp
• NOT a “utility”

Proper

• perty

ty Local government entity not in the light & power business Own by Utility or lease from LGE Local government entity not in the light & power business Incen entiv tive Limits $5,000 individuals $5,000 individuals $5,000 individuals Tax Incen entiv tive Limits s 0.5% % Taxab able le Power er Sales es Balance of Funds up to $575k 25% of $575k $143,750 5% of $575k $28,750 Prac actic tical al Limit up to Max Incen entiv tive Allowed d by Law 94 kW to 341 kW CapX: $470k to $1.7M 19 kW to 68 kW Envir ironme mental tal Attrib ibutes es Belong to participants Belong to Utility Belong to participants

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COMMUNITY SOLAR - BALANCED INTERESTS



Bet etter econom nomics cs



Economies of scale vs. rooftop systems



Improved performance vs. rooftop systems



Warranties and performance guarantees



Improved financing options and opportunity to balance interests of developers, customers and utility



Reduced barriers to entry for lower income customers



Custome

• mer role & benefits



Only 27% of residential rooftop area suitable for solar (NREL)



Customers provide investment dollars on a voluntary basis



Scalable investment customized to customer wants and needs



Maintenance & operation not homeowners responsibility



Investment not tied to current residence; reduced risk and complexity



Reduced barriers to entry for non-technical customers; minimizes possible surprises



Utility y role and benefits



Simplified platform for customers who want to exercise their environmental beliefs



Responsive to renewable energy & DG trends while minimizing impacts on non-participants



Increases utility credibility and experience in developing long term power supply solutions



Utility buys the power and may be able to own the RECs



Strategic siting; possibly to the benefit of T&D system operations

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INDIVIDU VIDUAL AL CUSTOMER OMER SOLAR AR - INCENTIVE TIVE PAYMENT ENTS

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INDIVIDUAL CUSTOMER SOLAR - ECONOMICS

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• 10.0

20.0 30.0 40.0 50.0 60.0

w/ 30% FTC w/ 0% FTC

4.5 6.4 12.6 18 18.0 40.2 57.4

Years

5 kilowatt att System Pa Payback ck Comp mparison arison

Assumes es $5.5 per Watt Installed ed Cost

$0.54/ 4/kW kWh h WA $0.15/ 5/kW kWh h WA no WA incenti tive

NEXT STEPS – SOLAR PROGRAM DEVELOPMENT

• Get people and organizat

zationa nal structure ucture in place; who will do what?

• Review how other utilities have done it; better understanding of best practi

tices es



Benton PUD is a Solar Electric Power Association (SEPA) member



SEPA's mission is to support utility integration of solar to the benefit of the utility, its customers and the public good

• Develop written business

ness plan for the program



Staff f developme ment nt and training requirements



Outreach to solar insta staller ers and other pot

• tenti

ntial partner ners



Cust stome mer r outreach ch; near term and long term



Improve existing net et met eteri ring ng application and contracting process ess



Strong focus on communi nity ty solar

• Stay engaged in legislativ

lative process ss

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