Value of Distributed Energy Resources (VDER) Annalise Kukor - - PowerPoint PPT Presentation

Value of Distributed Energy Resources (VDER)

Annalise Kukor Cooperative Extension of Tompkins County

Outline

• What is VDER?
• Why VDER?
• What is affected and where?
• Net metering and Phase One NEM
• Value Stack
• Value Stack and Community Solar
• Moving Forward

What is VDER?

“The New York State Public Service Commission established a mechanism to transition to a new way to compensate distributed energy resources (DER), like solar power. This mechanism, called the Value of Distributed Energy Resource (VDER), replaces net energy metering.”

• NYSERDA

Why put VDER into place

• Net metering might overload certain areas

and under saturate others

• Incentivizes solar installed where it is

needed on the grid

• Mimics more accurately how kWh from

DER are valued on the grid

• Public Service Commission (PSC) released 2

VDER orders

Distributed Energy Resources Affected

Fuel cells up to 2MW AC Combined Heat and Power up to 10 kW AC

Distributed Energy Resources Affected

• Onsite residential

installations, large scale and commercial customers with demand billing, Remote Net Metering (RNM) projects, Community Distributed Generation (CDG)

Utility zones affected

• Covering National Grid, NYSEG, Central Hudson,

Orange and Rockland, ConEd, Rochester Gas & Electric

Volumetric vs. Monetary Crediting

Volumetric Crediting

Net metering and Phase One NEM

all excess kWh produced are credited to customer’s bills at a 1:1 ratio

1 kWh = 1kWh

Monetary Crediting

Value Stack all excess kWh produced are credited in terms of dollars

1 kWh = $

Two methods of crediting excess kWh

Net Metering (NEM)

Annual True up date in affect

Phase One Net Energy Metering (NEM)

NEM – True ups = Phase One NEM

20 year compensation term

• Effective 3/9/2017 through 1/1/2020 only for small scale onsite installations
• Available for commercial/ CDG projects who have paid 25% interconnect by July 2017
• Commercial projects under 750kW can remain under phase one NEM

Value Stack

Value Stack- What is the value of a kWh?

• In effect for commercial and CDG projects

 NEM customers can opt into this

• kWh produces where they are needed during peak

demand

• CDG projects receive additional item (MTC) to make

compensation more equivalent to NEM/ retail rates

• Value Stack on 25 year compensation term, then

whatever structure is in effect

• Excess dollar credits roll over to next billing periods

VDER and Community solar

Tranche allocation by Utility

Tranche update

Issues with VDER

• Some terms fluctuate– difficult for large installations and

CDG to predict

• Variability and step down of MTC makes it difficult to

give consistent discounts in CDG

• Some don’t believe that this values solar enough

 Some say that environment isn’t valued enough

• Concerns that it will kill solar in NY
• Worse deal for customers/ residents

 Disincentives some installations  Future of residential solar is unclear

VDER Updates

• Calculator made available on NYERDA site
• White papers filed by NYS Department of

Public Service

 Proposed increase in MTC rates – comments closed 10/15/18  Proposed stability of the DRV calculation & net metering for onsite projects under 750 kW AC – comments closed 8/27/18

• VDER Moratorium-

 NYS Assembly voted to reestablish Net Metering - Bill didn’t make it to the floor of NYS Senate before session ended  Many environmental groups have come out in favor of this bill

Moving Forward

• County can pass a resolution in favor of

VDER moratorium

• Comment on future whitepapers
• Phase 2 VDER to come
• Consider CDG tranches when negotiating

PILOTs

Thank you!

Annalise Kukor Energy Educator Cooperative Extension abk95@cornell.edu (607)272-2292

Terms Defined

• Energy (LBMP) – the current wholesale energy price, changes hourly
• Capacity (ICAP) – similar to the capacity credit currently provided under

NEM, changes monthly

• Environmental benefits (“E”) – project’s rate is locked in for 25 years.

Certain CDG projects can take a non-tradable REC instead

• Avoided demand (“D” or “DRV”) – based on amount system will reduce

distribution grid’s peak demand

• LSRV (locational system relief value) – locational adder for some projects
• MTC (market transition credit) – additional element for CDG or mass

market opt-in, given in place of “DRV”

• For a deeper examination of these elements, please see the Value Stack

Calculator Overview presentation at nyserda.ny.gov/vder