>> GOOD MORNING AND WELCOME TO
THE 2022 DAY TWO OF THE ENERGY
AND WATER CONSERVATION TRACK.
MY NAME IS DIANA AND I'M A
CONTRACT SUSTAINABILITY ENGINEER
WITH THE DEPARTMENT OF HEALTH
AND HUMAN SERVICES AND I'LL
SERVE AS THE MODERATOR TODAY.
WE HAVE A COUPLE OF GREAT
WORKSHOPS COMING UP AND WE'VE
GOT GREAT EXPERTS TO GIVE US
INFORMATION AND FIRST ON
DECARBONIZATION PROCUREMENT IN
THE FEDERAL SECTOR AND LATER
STORAGE AT FEDERAL FACILITIES.
JUST A REMINDER AT THE BOTTOM OF
THE SCREEN, THERE'S A LENGTH TO
SEND A QUESTION AND WE'LL
RECEIVE TO MAKE SURE OUR
PRESENTERS SEE THOSE AND FEEL
FREE TO SEND IN THOSE QUESTIONS
AS THEY COME TO MIND AND THEY
WILL ANSWER WHEN THEY HAVE THE
OPPORTUNITIES.
SO I'D LIKE TO WE HAVE DOUGLAS
PROVIDING EARLY STAGE
PROCUREMENT SUPPORT FOR
RENEWABLE ENERGY AND RESILIENCE
PROJECTS.
WE HAVE Dr. NICOLE FROM
SCIENCE AND TECHNOLOGY POLO AT
THE US DEPARTMENT OF ENERGY
FEDERAL ENERGY MANAGEMENT
PROGRAM, JENNY HEATER IS A
SENIOR ENERGY ANNALIST AND
CURRENTLY SERVING ON A DETAIL
ASSIGNMENT WITH THE DEPARTMENT
OF ENERGY OFFICE OF ECONOMIC
IMPACT AND DIVERSITY TO SUPPORT
IMPLEMENTATION OF BIDEN JUSTICE
40.
WE HAVE CHANDRA SHAH A SENIOR
PROJECT LEADER AT NREL WHERE
SHE'S THE LABORATORY LEAD FOR
THE FEDERAL ENERGY MANAGEMENT
PROGRAMS UTILITIES DEPARTMENT
AND JOHN MYHRE A SENIOR PROJECT
MANAGER WHERE HE PROVIDES
TRAINING, TECHNICAL ANALYSIS AND
SUPPORT IN THE AREA OF
PERFORMANCE CONTRACTING AND
DISTRIBUTE ENERGY PROCUREMENT.
I'LL TURN IT OVER TO THEM.
>> THANK YOU SO MUCH.
>> GOOD MORNING, EVERYONE, THANK
YOU FOR JOINING US FOR THIS
PRESENTATION IN THE FEDERAL
SECTOR AND WE LIKE TO INTRODUCE
OURSELVES AND MY NAME IS NICOLE
LIEBOV WITH THE REGION MANAGER
AND INTRODUCE MY COLLEAGUES SO
WE'LL HAVE A QUICK SLIDE ON THAT
WITH OUR CONTACT INFORMATION
SHORTLY.
BEFORE WE GET STARTED I WOULD
LIKE TO GO AHEAD AND TAKE THE
OPPORTUNITY TO THANK THE
ORGANIZERS FOR OPPORTUNITIES TO
PRESENT THIS WORK AND ALL OF THE
EFFORTS TO HELP MAKE THIS
SYMPOSIUM RUN SMOOTHLY.
SO HERE WE HAVE OUR AGENDA.
FIRST WE'LL ARE AN INTRODUCTION
ON THE BASICS OF THE DECOR
BONNIZATION INCLUDING TERMOLOGY,
FEDERAL POLICIES AND OVERVIEW OF
PROCUREMENT PATHWAYS AND NEXT
WE'LL DISCUSS VARIOUS TYPES OF
ON-SITE FOR DIFFERENT OWNERSHIP
MODELS AND KEY CONSIDERATION
CHALLENGES AND SOLUTIONS.
IN THE FOLLOWING SECTION ON
OFF-SITE PURCHASING METHODS
WE'LL HAVE PATHWAYS AND THE
RELATIONSHIP TO A SITE UTILITY
MARKET STRUCTURE.
NEXT IN THE PROCUREMENT
CONSIDERATION SECTION WE'LL
DISCUSS STRATEGIES THAT APPLY TO
MULTIPLE PATHWAYS INCLUDING A
PURCHASE BETTER HOURLY DATA AND
EMISSIONS INFORMATION AND WE'LL
CONCLUDE WITH LESSONS LEARNS
BEFORE HIGHLIGHTING RESOURCES
FROM SOURCES AND HOLDING A Q&A
SESSION.
PLEASE BE SURE TO ENTER
QUESTIONS THROUGHOUT THE WEBINAR
SO WE CAN WORK TO ANSWER THOSE
WHEN WE GET TO THE Q&A SESSION
AT THE END.
OUR PRIMARY LEARNING OBJECTIVES
TODAY ARE FOCUSED ON IDENTIFYING
THOSE PROCUREMENT PATHWAYS AND
UNDERSTAND WHAT THE BEST FIT IS
FOR ON AND OFF-SITE AND THE
OPTIMIZATION OF ENERGY
PROCUREMENT OFF THE PORTFOLIO.
THE NAMES AND CONTACT
INFORMATION SO WE'RE ON THE
PRESENTATION THIS MORNING AND
AND LEVERAGING BEST PRACTICES
AND DISTRIBUTED ENERGY PROGRAMS
IS FOCUSED ON FACILITATING THE
PLANNING WITH COST EFFECTIVE
RESOURCES WHICH INCLUDES
RENEWABLE ENERGY, ENERGY POWER
TECHNOLOGIES FOR FEDERAL
AGENCIES AND WITH THE UP-TO-DATE
INFORMATION POSSIBLE AND SO I
ALSO HOPE BY MONTHLY INTERAGENCY
WORKING GROUP AND IF YOU ARE
INTERESTED IN PARTICIPATING IN
THAT FORUM, SEND ME AN E-MAIL
WHICH IS ALSO MEANT ON THE
EARLIER SLIDE TO BE ADDED WITH
THAT LIST AND I'LL TURN IT OVER
TO JOHN FORA JOHN FOR AN EASTERLY YEAR
DECARBONIZATION.
>> SO WE'LL GO OVER SOME
TERMOLOGY AND POLICY RELATED TO
DECARBONIZATION AND TAKE A REAL
QUICK OVERVIEW OF THE
PROTUREMENT PATHWAYS FOR IN THE
FEDERAL SECTOR AS NICOLE
MENTIONED AND I'LL START WITH
TERMINOLOGY.
WE'LL JUST GO THROUGH EACH OF
THESE TERMS.
A LOT OF THESE MAY BE PRETTY
NEW.
SO, DECARBONIZATION, WE'RE
DEFINING AS MOVING AWAY FROM
FOSSIL FUEL COMBUSTION AND
ASSOCIATED RELEASE OF CO2
EMISSIONS TOWARDS A MORE
EFFICIENT USE OF THE
EMISSION-FREE ENERGY SOURCES.
CARBON POLLUTION-FREE
ELECTRICITY, CFE IS ELECTRICAL
ENERGY PRODUCED FROM RESOURCES
THAT GENERATE NO CARBON EMISSION
AND THAT INCLUDES MARINE ENERGY,
SOLAR, WIND, HYDRO KINETIC,
GEOTHERMAL, RENEWLY SOURCES
HYDROGEN AND ELECTRICAL ENERGY
GENERATION FROM FOSSIL RESOURCES
TO THE EXTENT THERE'S ACTIVE
CAPTURE AND STORAGE OF CO2
EMISSIONS MEETING EPA
REQUIREMENTS.
AND THAT DEFINITION IS FROM
EXECUTIVE ORDER 14057, WHICH
WE'LL TALK ABOUT IN THE NEXT FEW
SLIDES.
ELECTRIFICATION IS SUBSTITUTING
ELECTRICAL TERNE TIVE FOR
TRADITIONALLY FOSSIL FUEL
APPLICATIONS AND SOME EXAMPLES
OF THAT WOULD INCLUDE ELECTRIC
VEHICLES FOR TRANSPORTATION, AND
HEAT PUMPS.
24/7 CARBON POLLUTION-FREE
ELECTRICITY.
WE DEFINE THAT AS CARBON
POLLUTION PROCURED TO MATCH THE
ELECTRICITY CONSUMPTION AT A
FACILITY ON AN HOURLY BASIS AND
PRODUCE WITHIN THE SAME REGIONAL
GRID WHERE THAT ENERGY IS
CONSUMED.
IT'S FROM EXECUTIVE ORDER 14057.
RENEWABLE ENERGY SER DIVOTS, ARE
A TRADE ABLE MARKET BASED
INDONESIA THAT REPRESENTS THE
LEGAL PROPERTY RIGHTS TO THE
RENEWABLE MESS AND ALL NON POWER
ATTRIBUTES AND RENEWABLE
ELECTRICITY AND USING THE
RENEWABLE ENERGY ASSOCIATED WITH
THAT REC.
A REC IS ISSUED FOR EVERY MEGA
WATT HOUR OF ELECTRICITY AND
THAT IS GENERATED AND DELIVERED
TO THE ELECTRIC GRID FROM A
RENEWABLE ENERGY RESOURCE.
>> WE'VE GOT EXECUTIVE ORDER
13990 RESTORING SCIENCE TO
TACKLE THE CLIMATE CRISIS AND
14008 TACKLING THE CLIMATE
CRISIS AT HOME AND ABROAD AND
THE NEW ONE YOU MAY HAVE HEARD
EXECUTIVE ORDER 14057,
CATALYZING AMERICA'S CLEAN
ENERGY ECONOMY THROUGH FEDERAL
SUSTAINABILITY AND SOME OF THE
GOALS FROM THAT EXECUTIVE ORDER
14057 INCLUDE 100% CARBON FREE
ELECTRICITY ON A NET ANNUAL
BASIS BY 2030 AND IT INCLUDES A
50% 24/7 CARBON FREE ELECTRICITY
GOAL.
WE'LL TALK ABOUT SCOPES ONE AND
TWO HERE IN A MOMENT.
WE'RE HOPING TO SEE THAT IN THE
NEXT FEW MONTHS AND I WANT TO BE
CLEAR THIS DOES NOT PROVIDE
GUIDANCE RELATE TODAY THAT
EXECUTIVE ORDER BUT IT
SUMMARIZES THE TOOLS THAT CAN BE
USED TO PROCURE CARBON FREE
ELECTRICITY.
SO, AS I SAID, HERE IS SOME OF
OUR SOURCES OF GREENHOUSE GAS
EMISSIONS INCLUDING THOSE
SCOPES.
YOU SEE AT TOP, WE HAVE OUR
COMMON SOURCES OF FEDERAL
GREENHOUSE GAS EMISSIONS AND CO2
AS WELL AS OTHER POLLUTANTS AND
A LOT OF TIMES YOU WILL SEE
SOMETHING CALLED CO2 EQUIVALENT.
AS A WAY OF MEASURING ALL OF
THESE.
WE WON'T GO INTO TOO MUCH DOUGH
TAIL BUT THAT'S THE WAY OF
MEASURING GREENHOUSE GASES TO CO
CO2 AND THOSE CALL INTO SCOPE
ONE EMISSIONS SCOPE TWO
EMISSIONS ARE EMISSIONS FROM
PURCHASE TO ELECTRICITY THAT IS
USED BY THE IF STYL FACILITY AND THAT'S
EMISSIONS GENERATED FROM THE
UTILITY PROVIDING ELECTRICITY TO
THE FACILITY AND THOSE ALL FALL
UNDER SCOPE 2 EMISSION AND SCOPE
3 EMISSIONS ARE GREENHOUSE GAS
EMISSIONS FROM SOURCES NOT OWNED
OR CONTROLLED BY A FEDERAL
AGENCY BUT ARE RELATED TO
ACTIVITIES SO THIS WOULD INCLUDE
AIR TRAVEL FOR BUSINESS AND
CARBON POLLUTION THERE AND SOLID
WASTE THAT'S GENERATED BY THE
AGENCY ALL FALLS UNDER SCOPE
THREE EMISSIONS AND SO I'M GOING
TO TALK BRIEFLY ABOUT
DECARBONIZATION PATHWAYS AND
THIS IS JUST A REAL BROAD
OVERVIEW OF HOW TO IDENTIFY A
PATHWAY TO DECARBONIZATION SO
THEY START BY DOCUMENTS YOUR
BASELINE SCOPE ONE AND TWO
EMISSIONS AND I MEAN DOCUMENTS
YOUR STOKE ONE AND TWO EMISSIONS
AS THEY ARE NOW AT YOUR FACILITY
INSTALLATION.
LOOKING AT SCOPE ONE AND TWO
EMISSIONS IDENTIFYING ROAD
REDUCTION AND EFFICIENCY
OPPORTUNITIES ASSOCIATE THE WITH
SOURCES AND WITH ALL SOURCES ON
THE FACILITY AND STEP 3 IS TO
ELECTRIFY THAT EQUIPMENT THAT IS
AVAILABLE TO BE ELECTRIFIED SO
AN EXAMPLE WOULD BE SWITCHING
YOUR VEHICLE FLEET OVER TO
ELECTRIC AND THE CARBON FREE
ELECTRIC PURCHASING WHICH
INCLUDES ON SITE CFE GENERATION
AND STORAGE AND OFF SITE CFE
PURCHASES AND WE'LL GO INTO THAT
A LITTLE MORE IN THE NEXT SLIDE,
PLEASE.
SO, HERE IS A BROAD FOUR GROUPS
OF CARBON FREE ELECTRICITY THAT
CAN BE USED AND PROCURED FOR
DECARBONIZATION.
STARTING FROM THE TOP-LEFT AND
GOING CLOCK WISE WE HAVE ON SIDE
CARBON FREE ELECTRICITY
GOVERNMENT OWNED AND ON SITE
ELECTRICITY THAT IS PRIVATELY
OWNED AND WE HAVE HOSTED ON SITE
CARBON FREE ELECTRICITY PROJECTS
PRIVATELY OWN AND OFF-SITE THAT
ARE PRIVATELY OWNED.
AND WITH THAT I'M GOING TO TURN
IT OVER TO CHANDRA.
THANK YOU.
>> THANK YOU, JOHN.
SO, I'M GOING TO COVER OPTIONS
TO PROCURE CFE FROM ON SITE
PROJECTS.
THIS IS A BROAD OVERVIEW OF
OPTIONS FOR IMPLEMENTATION AND
IT'S WHETHER THE SYSTEM IS
GOVERNMENT OWNED OR PRIVATELY
OPENED ANOWNED AND PRIVATELY OWNED AND
WE'LL GO THROUGH EACH OF THESE
OPTIONS.
IF YOU HAVE APPROPRIATIONS
THAT'S GREAT, GO AHEAD AND
IMPLEMENTATION A PROJECT.
MOST AGENCIES DON'T HAVE
SUFFICIENT APPROPRIATION TO
ACHIEVE THEIR GOALS SO THE OTHER
OPTIONS ARE WHAT I WILL FOCUS
ON.
NEXT SLIDE, UNDER THE
GOVERNMENT-OWNED CATEGORY, NEXT
SLIDE, PLEASE, PERFORMANCE
CONTRACTING IS A GREAT METHOD
FOR IMPLEMENTING PROJECTS SO TWO
OPTIONS HERE AND THE ENERGY
SAVINGS PERFORMANCE CONTRACT AND
IN BOTH CASES, THE ON SITE CFE
PROJECT COULD BE COMBINED AND
BUNDLED WITH OTHER ENERGY
CONSERVATION MEASURES OR ECMs
AND IN BOTH CASES THE CONTRACT
TERM MAXIMUM IS 25 YEARS THAT
APPLIES TO BOTH AND ESPC AND
THAT MEANS THAT IT INCLUDES
DESIGN AND CONSTRUCTION TO REACH
THAT 25 YEARS AND IN BOTH CASES,
THEY CAN BE COMBINED WITH
FINANCING AND THEY'RE
RESPONSIBLE FOR FINANCING FOR
THESE MECHANISMS.
THE CONTRACT ARE FIRM FIXED
PRICE AND YOU CAN BUNDLE SITES
NO ONE CONTRACT BUT IF YOU ARE
DOING A UESC THEY HAVE TO BE IN
THE DISTRIBUTION UTILITY SERVICE
TERRITORY AND O AND M AND REPAIR
AND REPLACEMENT FOR THAT PROJECT
COULD BE INCLUDED.
SO WITH AN ESPC JUST BACKING UP
A LITTLE BIT MORE TO GIVE AN
OVERVIEW, THE PRIME IS ESCO AND
THEY HAVE THE DEFINITE DELIVERY
AND ENABLE WHICH IS FOCUSED MORE
ON SMALL PROJECTS ALTHOUGH IT
DOESN'T HAVE TO BE A SMALL
PROJECT AND THE ARMY HAS THEIR
MULTIPLE AWARD TASK ORDER
CONTRACT.
FOR UESB IS THE DISTRIBUTION
UTILITY SO THAT THE UTILITY THAT
OWNS FOR ELECTRICITY THEY OWN
THE POLES AND WATERS FOR NATURAL
GAS AND WATER THEY OWN THE
PIPES.
THERE ARE DIFFERING AUTHORITIES
FOR EACH THESE CONTRACTS AND SO
THEY'RE DIFFERENT REQUIREMENTS,
A SAVINGS GUARANTEE IS A
REQUIREMENT AS IS MEASUREMENT
AND VERIFICATION AND SO THE
SAVINGS HAS TO EXCEED PAYMENT IN
EACH YEAR OF THE CONTRACT AND
ANOTHER IMPORTANT CONSIDERATION
IS THE ESCO IS RESPONSIBLE FOR
THE MAIN TONNANCE REGARDLESS
WHETHER THE AGENCY PERFORMED THE
O AND M SO THEY'RE STILL
RESPONSIBILITY ULTIMATELY FOR O
AND M BEING DONE PROPERLY.
A PERFORMANCE ASSURANCE PLANS IS
REQUIRED FOR ANNUAL SCORING PER
THE O AND B MEMO AND IT'S
INTENDED ALTHOUGH THERE'S NOT A
STRICT REQUIREMENT THAT SAVINGS
EXCEED PAYMENTS OVER THE LIFE OF
THE CONTRACT.
SO, HOW DO YOU PAY FOR
DECARBONIZATION AND PERFORMANCE
CONTRACTS?
THERE ARE TERNE ALLOWABLE
SAVINGS AND THERE'S THE GENERAL
ENERGY AND WATER SAVINGS AND SO
EFFICIENCY IMPROVEMENTS AND
PRODUCED USAGE AND PRODUCTIONS
AND THE BAND REDUCTION AND LOAD
SHIFTING ARE JUST SOME OF THE
WAYS TO ACHIEVE COST SAVINGS
FROM YOUR SERVING UTILITY AND
ALSO ALLOWED ARE ENERGY AND
WATER RELATED COST SAVINGS AND
SO PRIMARILY INCLUDES O AND M
CONTRACTS AND SO IN SOME CASES
WHEN YOU IMPLEMENT AN ENERGY
CONSERVATION MEASURE YOU MAY BE
ABLE TO ELIMINATE AN O AND M
CONTRACT OR REDUCE THE COST OF
AN O AND M CONTRACT SO AS LONG
AS THERE'S REAL COST SAVINGS
THAT YOU CAN ALLY TO MAKE
PAYMENTS, FOR THE CONTRACT OVER
TIME, THOSE COULD BE INCLUDED AS
SAVINGS FOR THE CONTRACT AND
THEY MIGHT BE SOME MATERIALS
CONTRACT SAVINGS AS WELL THAT
CAN AB PLIED AND THERE'S A
VOIDED COST.
IF YOU PLANNED TO REPLACE
EQUIPMENT AND YOU HAD
APPROPRIATIONS FOR THAT, THAT
COULD ALSO BE APPLIED TO THE
CONTRACT.
APPROPRIATIONS CAN BE APPLIED
AND THERE ARE GRANTS THAT HAS
THE EFFECT GRANT AND SO STAY
TUNED WE EXPECT AT LEAST ONE OR
NOWHERE GRANT COMING FROM OVER
THE NEXT FISCAL YEAR SO TAKE AND
KEEP AN EYE OUT FOR THAT THERE
MIGHT BE OTHER GRANTS SUCH AS
STATE GRANTS THAT YOU COULD
APPLY AS WELL AS OTHER ROW BAITS
AND INCENTIVES.
FOR CFE PROJECTS, CFE PROJECTS
MAY HAVE VALUABLE GRANTS
ESPECIALLY SOLAR PROJECTS AND
THERE ARE CERTAIN AREAS ON THE
EAST COAST ESPECIALLY WHERE
THOSE RECS ARE VALUABLE SO IN
SOME CASES IT MAKES SENSE FOR
THE RECS TO BE SOLD AND FOR
CREDIT TOWARDS THE CURRENT
POLICY ACT OF 2005 RENEWABLE
GOAL REPLACEMENT RECS NEED TO BE
PURCHASED IN ORDER TO GET THAT
CREDIT AND THAT IS UNDER THE
CURRENT GUIDANCE AND THAT'S FOR
THE ENERGY POLICY ACT OF 2005
RENEWABLE THAT IS NOT RELATED TO
THE CURRENT EXECUTIVE ORDER
14057 WHERE IMPLEMENTING VEXES
ARE PENDING.
SO NOW WE'LL JUMP INTO PRIVATELY
OWNED OPTIONS.
AND THE FIRST IS A POWER
PURCHASE AGREEMENT OR PPA AND
HERE THE FEDERAL AGENCY WILL
HOST A RENEWABLE PROJECT AND
THEY PURCHASE THE ELECTRICITY
FOR THE LIFE OF THE CONTRACT.
THE RENEWABLE DEVELOPER WILL
PURCHASE THE EQUIPMENT THEN THEY
INSTALL IT AND THEY OWN THE
PROJECT FOR THE LIFE OF THE
CONTRACT AND THEY DO ALL OF THE
O AND M FOR THE PROJECT AND THE
MAIN BENEFIT OF THE ROW KNEW
ABLE DEVELOPER OWNING THIS
EQUIPMENT IS THAT THEY MAY BE
ABLE TO TAKE ADVANTAGE OF
CERTAIN TAX INCENTIVES THAT HELP
REDUCE THE PPA PRICE FOR THE
FEDERAL SECTOR AND AS I
MENTIONED THE REC IN CERTAIN
AREAS OF THE COUNTRY AND FOR
CERTAIN TYPES OF PROJECTS,
PRIMARILY SOLAR IT'S BENEFICIAL
TO SELL THE S RECS AND THE
AGENCY CAN BUY REPLACEMENT OR
REQUIRE THE CONTRACTOR TO BUY
REPLACEMENT RECs AND GOING
BACK TO THE ESPC, AND WITH
GOVERNMENT OWNED, THE ENERGY
POLICY ACT OF 2020 INCLUDES A
PROVISION THAT EXPLICITLY STATES
THAT REC SALES CAN BE INCLUDED
IN AN ESPC AND THERE HAVE BEEN
PROBLEMS WITH GOVERNMENT-OWNED
SYSTEMS FOR AGENCIES TO ACTUALLY
SELL THE REC THAT'S BEEN
PROBLEMATIC BUT THE ENERGY ACT
OF 2020 TOOK CARE OF THAT
PROBLEM FOR ESPCs BUT THE FACT
THAT PPAs HAVE CHILDREN
CHALLENGES.
ONE IS CIVILIAN AGENCY HAVE
LIMITED THE LONG-TERM CONTRACT
OPTIONS AND FOR PPA YOU NEED A
10-YEAR CONTRACT AND MOST AREAS
OF THE COUNTRY YOU WILL PROBABLY
NEED A 20-YEAR CONTRACT AND SO
THAT IS A VARIANT AND I'LL TALK
ABOUT ANOTHER OPTION USED IN A
MINUTE.
ANOTHER CONSIDERRIZATION WHETHER
THIS TYPE OF ARRANGEMENT IS
REGAL AND THE STATE AND UTILITY
SERVICE TERRITORY AND IT'S
IMPORTANT TO LOOK INTO THIS UP
FRONT BEFORE YOU GET GOING ON A
PROJECT AND YOU CAN LOOK AT
DESIRED WEBSITE AND SEE THE
HYPER LINK HERE TOWARDS THE
BOTTOM OF THE SCREEN AND THAT
WILL PROVIDE BASIC INFORMATION
FROM MOST OF THE STATE AND YOU
CAN CONFIRM IT WITH YOUR UTILITY
AND REACH OUT TO THEM TO GET
HELP WITH EXPLORING WHETHER THIS
OPTION WILL WORK IN YOUR UTILITY
SERVICE TERRITORY.
PPAs ARE GENERALLY BETTER FOR
LARGE PROJECTS AT LEAST 50 500 KILL
A OWE WATTS OR MORE AND YOU CAN
AGO RATE IS A NUMBER OF
DIFFERENT SITES TOGETHER TO MAKE
A LARGER PROJECT.
SO, HERE PROSECUTE SOME OPTIONS
FOR IMPLEMENTING PP
ANTI-SEMITISM AND COMMERCIAL
ITEMS CAN BE USED AND THAT'S A
FAIRLY SHORT TERM CONTRACT AND
IT'S A 10-YEAR CONTRACT
AUTHORITY BUT THAT'S A GSA
AUTHORITY AND SO ANY AGENCY
BESIDES GSA THAT WANTS TO USE
THIS AUTHORITY MUST GET A
DELEGATION FROM GSA AND THEN
DEPARTMENT OF DEFENSE HAS A
30-YEAR CONTRACT UFC FOR
DEPARTMENT OF DEFENSE SITES
ONLY.
NEXT SLIDE.
SO, AS I MENTIONED, CIVILIAN
AGENCY HAVE LIMITED OPTION AND
DEPARTMENT OF DEFENSE HAS THE
LONG-TERM AUTHORITY BUT FOR
CIVILIAN AGENCIES IN PARTICULAR,
ONE GREAT OPTION TO CONSIDER IS
AN ESPC ENERGY SALES AGREEMENT
OR ESPC A AND THIS IS SIMILAR TO
A PP A AND IT USES THE AUTHORITY
TO IMPLEMENT A PROJECT ON
BUILDINGS OR LAND WERE THE
SYSTEM WOULD BE PRIVATELY OWNED
INITIALLY AND AGAIN THE AGENCY
PURCHASES THE ELECTRICITY.
THEY MIGHT WANT TO CONSIDER IF
THEY DON'T HAVE A CAPITAL THEY
THINK IT COULD BENEFIT FROM TAX
INCENTIVES AND THEY HAVE A
LIMITED LONG-TERM AUTHORITY AND
THEY WANT THE COST EFFECTIVE
PROJECT AND THE ESPC ESA HAVE
THE REQUIRE FOR A ESPC AND THAT
IT INCLUDES A NEW VIDEO THAT
EXPLAINS ESPC ESAs AND IT'S A
SHORT VIDEO SO CHECK IT OUT AS
WELL AS THE OTHER INFORMATION ON
OUR ESPC ESA PAGE.
SO SOME OF THE BASICS JUST TO
HIGHLIGHT THEM AGAIN, THERE ARE
KEY REQUIREMENTS TO CONSIDER AND
ONE IS THE OMB ISSUED A MEMO IN
2012 THAT STATES WITH A ON SITE
PROJECT MUST HAVE EQUIPMENT BIT
END OF THE CONTRACT FOR ANNUAL
SCORING SO THAT IS AN IMPORTANT
CONSIDERATION AND THEN THERE'S
ALSO THE TAX INCENTIVE
CONSIDERATION AND IRS DID
PROVIDE A SAFE HARBOR FOR ESPC
ESAs THAT HAS A COUPLE OF
REQUIREMENTS AND ONE OF THEM IS
THE TITLE TRANSFER, AT THE END
OF THE CONTRACT, MUST BE A FAIR
MARKET VALUE.
SO THAT IS AN IMPORTANT
CONSIDERATION.
IT'S NOT A FREE TITLE TRANSFER.
ONE OF THE REQUIREMENTS FROM THE
REVENUE PROCEDURES IS THAT THE
CONTRACT TERM MUST BE 20 YEARS
OR LESS AND SO THAT'S DIFFERENT
THAT LAWS FOR UP TO 25 YEARS SO
THEY'RE LIMITED TO 20 YEARS.
DIFFERENCES FROM A TYPICAL ESPC
IS ONE THE PRICES AND SENSE PER
KILOWATT HOUR.
PAYMENT IS BASED ON THE KILOWATT
HOUR GENERATED FROM THE PROJECT.
IT'S PRIVATELY OWNED INITIALLY
AND THE REMEMBER ESPC TYPICALLY
OWNERSHIP TRANSFER TO THE
GOVERNMENT UPON ACCEPTANCE OF
EACH OF THE ENERGY CONSERVATION
MEASURES.
HERE O AND M IS ALWAYS PROVIDED
BY DEHE IS CO AND IT'S THE
RESPONSIBILITY OF THE DESCO AS I
MENTIONED EARLIER.
BENEFITS, LONG-TERM CONTRACT
MECHANISMS AND THAT IS ONE OF
THE KEY BENEFITS.
THERE'S A STATUTORY ESPC
COST-SAVINGS REQUIREMENT SO THE
ESPC ESA PRICE MUST BE LOWER
THAN YOUR UTILITY COST.
IF YOUR UTILITY COST BLENDED
RATE IS 10 CENTS PER KILOWATT
HOUR THE RATE MUST BE LOWER SO
FOR EXAMPLE IT'S NINE CENTS A
KILOWATT HOUR THE SITE WOULD SAY
ONE CENT A KILOWATT HOUR FOR
EVERY KILOWATT HOUR GENERATED SO
THIS ALLOWS SOME SAVINGS TO THE
AGENCY UP FRONT AS SOON AS THE
PROJECT BECOMES OPERATIONAL SO
THAT IS A GREAT.
NO UP FRONT CAPITAL.
JUST LIKE ANY PERFORMANCE
CONTRACT THERE'S NO UP FRONT
CAPITAL REQUIRED IF YOU HAVE PRO
APPROPRIATION TO BUY DOWN THE
PROJECT AND IT'S ALLOWABLE ON
YOUR AGENCY POLICY AND COLOR OF
MONEY CONSIDERATIONS IT'S GREAT
BUT YOU DON'T HAVE TO PROVIDE
CAPITAL.
THE GOVERNMENT DOESN'T HAVE A
TAX APPETITE AND AS WE MENTIONED
THE RECS CAN BE SOLD TO REDUCE
THE ESBCA PRICE.
FOR ANY LAWYERS AND CONTRACTING
STAFF ON THE WEBINAR, THERE IS A
FAR PART 41 AUTHORITY THAT
AUTHORIZED THE USE FOR THE
ACQUISITION OF UTILITY SERVICES
SO THAT IS GOOD NEWS THAT
THERE'S AN ACTUAL AUTHORITY THAT
EXPLICITLY STATES THAT THIS IS
ALLOWED.
NEXT SLIDE.
AND THEN ANOTHER ARRANGEMENT
THAT IS POSSIBLE IS THE REAL
PROPERTY ARRANGEMENT SO HERE THE
AGENCY IS HOSTING A PROJECT
PRIVATELY OWNED AND THIS IS SOLD
EITHER ALL OR MOST AND TO
ANOTHER ENTITY AND THE
GOVERNMENT ISN'T NECESSARILY
USING ANY OF THE ELECTRICITY AND
THIS COULD BE DONE UNDER VARIETY
OF MECHANISM AND SOME HAVE
ANENNANCED USE AND SOME AGENCIES
MIGHT HAVE OR AN EASEMENT OR A
LICENSE.
AND NEXT SLIDE.
SO HERE ARE SOME OF THE
CONSIDERATIONS THAT YOU WANT
THINK ABOUT A YOU ARE
IMPLEMENTING A PROJECT AND THE
FIRST ONE WE MENTIONED IF YOU
ARE DOING A PPA OR ESPC ESA YOU
WANT TO MAKE SURE THE CONTRACT
MECHANISM IS LEGAL IN YOUR STATE
AND UTILITY SERVICE TERRITORY
AND THAT'S ONE OF THE FIRST
THINGS TO LOOK INTO IF IT'S
STARTING A PROJECT.
THE NATIONAL ENVIRONMENTAL
POLICY ACT IS IMPORTANT FOR ON
SITE PROJECT AND THERE'S GOING
TO BE SOME TIME OF NEPA ANALYSIS
THAT WILL BE REQUIRED WHETHER
IT'S AN VINAL ASSESSMENT FOR
LARGE PROJECTS AND ENVIRONMENTAL
IMPACT STATEMENT MIGHT BE
REQUIRED AND THERE ARE SOME
INSTANCES WHERE A CATEGORIC ALEX
CONCLUSION WOULD A PLY BUT YOU
NEED TO GO THROUGH THAT PROCESS
AND TAKE TO YOUR ENVIRONMENTAL
FOLKS AND FIND OUT WHAT THE
REQUIREMENTS ARE AND IT'S BEST
TO GET STARTED ON THIS EARLY IN
THE PROCESS BECAUSE THIS CAN
TAKE SOME TIME ESPECIALLY FOR
THE ENVIRONMENTAL ASSESSMENT OR
EIS ARE REQUIRED AND SOME AREAS
ESPECIALLY URBAN AREAS HAVE
IMPORTANT HISTORIC
CONSIDERATIONS WASHINGTON D.C.
HAS STRICT REQUIREMENTS ON ABOUT
WHAT CAN BE DONE TO A BUILDING
AND OTHER SITES MIGHT HAVE
CULTURAL RESOURCE CONSIDERATIONS
AND GLARE IS AN ISSUE IF YOU ARE
NEAR AN AIRPORT AND OTHER UNIQUE
PERMITTING RESTRICTIONS OR
REQUIREMENTS THAT APPLY DEPEND
ONG YOUR SITE SO THAT'S
IMPORTANT TO LOOK INTO.
INTERCONNECTION REQUIREMENTS ARE
VERY IMPORTANT TO CONSIDER THIS
IS ONE OF THE KEY CONSIDERATIONS
FOR A PROJECT SO YOU WANT TO
TALK TO YOUR SERVING UTILITY
EARLY AND OFTEN TO MAKE SURE YOU
FULLY UNDERSTAND WHAT THOSE
REQUIREMENTS WILL BE AND WHAT
THE ASSOCIATED COST MIGHT BE AND
HOW MUCH TIME THEY MIGHT ADD TO
YOUR PROJECT ANOTHER ASPECT
RELATED TO INTERCONNECTION IS
THE INTERCONNECTION AGREEMENT
WHICH WILL BE REQUIRED FOR
PRIVATELY OWNED SYSTEMS AND YOU
WANT TO ASK THE UTILITY WHO WILL
SIGN THAT AGREEMENT.
IN SOME CASES IT'S THE PRIVATE
OWNER AND OTHER CASES IT'S THE
GOVERNMENT AND I KNOW AT LEAST
ONE INSTANCE WHERE THEY DID A
TRI-PARTY AGREEMENT AND THAT
INTERCONNECTION AGREEMENT IS THE
FEDERAL GOVERNMENT NEEDS TO SIGN
IT THEY NEED A COP EVE THAT
INTERCONNECTION AGREEMENT FROM
THE UTILITY EARLY AND HAVE YOUR
LEGAL AND CONTRACTING STAFF
REVIEW IT AND MAKE SURE THERE
ARE NO ISSUES AND THERE ARE
PROVISIONS IN INTERCONNECTION
AGREEMENT THAT'S CAN BE
PROBLEMATIC FOR A FEDERAL SITE
AND THOSE NEED TO BE IDENTIFIED
EARLY ON AND NEGOTIATED ALSO THE
UTILITY IF THEY'VE NEGOTIATED AN
INTERCONNECTION AGREEMENT FROM
ANOTHER FEDERAL AGENCY AND IT'S
NOT ANOTHER FEDERAL AGENCY MAYBE
PERHAPS FOR A STATE OR LOCAL
GOVERNMENT ENTITY OR PERHAPS
SOME OTHER TYPE OF ENTITY THAT
HAS SOME RESTRICTIONS ON WHAT
TYPE OF PROVISION BE INCLUDED IN
THE AGREEMENTS THAT THEY SIGN.
WE WANT TO MAKE SURE THAW OWNED
THE LAND THAT YOU ARE PROPOSING
A PROJECT FOR THAT'S IMPORTANT
TO CONFIRM AND PRIVATELY OWNED
PROJECTS AND SITE ACCESS IS
REALLY KEY FOR THE LIFE OF THE
CONTRACT AND TYPICALLY THERE'S A
SEPARATE SITE ACCESS AGREEMENT
SO TALK TO YOUR REAL PROPERTY
ABOUT OPTIONS AVAILABLE SO SOME
OTHER CONSIDERATIONS INCLUDE
EROSION CONTROL AND THE OTHER
CONSTRUCTION CONSIDERATION AND
YOU WANT TO MAKE SURE THAT YOU
ARE TALK TO GO ALL THE
APPROPRIATE FOLKS ABOUT WHAT THE
APPROVAL REQUIREMENTS ARE AND
MAKE SURE THAT THEY'RE ON BOARD
EARLY IN THE PROCESS SO YOU
DON'T FIND OUT AS YOU ARE
GETTING READY TO ASSIGN A
CONTRACT THAT CERTAIN ENTITIES
THAT HAVE TO IMPROVE THE PROJECT
AREN'T ON BOARD.
SO YOU REALLY WANT TO GET THAT
DONE EARLY IN THE PROCESS AND
MAKE SURE YOU ARE ENGAGING ALL
THE FOLKS THAT NEED TO APPROVE
THE PROJECT.
BUY AMERICAN AND TRADE YOU WANT
TO INCLUDE THE CLAUSE FOR YOUR
PROJECT AND CYBER SECURITY IS
KEY SO YOU WANT TO BRING THEM IN
AND MAKE SURE THEY UNDERSTAND
THE PROJECT AND HOW IT MIGHT
IMPACT CYBER FOR YOUR SITE.
NEXT SLIDE.
SO, THERE ARE CHALLENGES TO
IMPLEMENTING THIS PROJECT AND
ALSO SOLUTIONS.
SO THE FIRST IS THEY CAN TAKE
TIME TO IMPLEMENT AND SO IT'S
IMPORTANT TO COME UP WITH A
TIMELINE SPECIFY A DEADLINE AND
STICK TO THEM AS MUCH AS
POSSIBLE AND HOPEFULLY THAT WILL
KEEP YOUR PROJECT MOVING SO YOU
CAN SHORTEN THE MANY NOTTATION
TIMEFRAME AND ALSO IMPORTANT FOR
KEEPING A PROJECT ON TRACK IS IT
TO MAKE SURE YOU GET THE BUY IN
FROM THE IMPORTANT ENTITIES
EARLY IN THE PROJECT.
YOU'VE GOT TO MAKE SURE THAT YOU
HAVE AVAILABLE STAFF TO
IMPLEMENT AND ESPECIALLY
CONTRACTING INFORMATION AND IT'S
ONE OF THE MOST IMPORTANT PEOPLE
AND UNDERSTAND THE PROJECT AND
DO THE REVIEW SO THEY CAN BE
SIGN AND FOR PRIVATE OWNERSHIP
PROJECTS THERE ARE LIMITED
LONG-TERM PRE CUREMENT
AUTHORITIES AND SO CONSIDER
OPTIONS SUCH AS AN ESPCSA AND IT
HAS A LOT OF GREAT INFORMATION
AND ON THE WEBSITE.
AND THEN IF THE PROJECT IS
PRIVATELY OWNED YOU WANT TO MAKE
SURE IT'S VERY CLEAR WHO WILL
OWN THE RECs THAT IS
EXPLICITLY STATED IN THE
CONTRACT AND DECIDE WHETHER IT
WILL BE THE RECS WILL BE
REGISTERED AND ROW TIRED IN A
TRACKING SYSTEM AND THERE ARE
REC INTERESTING SYSTEMS ACROSS
THE COUNTRY AND THEY CAN BE USED
TO REGISTER AND RETIRE REC AND
KEEP AN EYE ON THE EXECUTIVE
ORDER IMPLEMENTING INSTRUCTIONS
BECAUSE THEY MAY INCLUDE
DETAILED REQUIREMENTS AND
GUIDELINES ANYWAYS ON A WHAT
NEEDS TO BE DONE TO DOCUMENT
THAT YOU HAVE THE RECs FOR A
PROJECT.
WITH THAT, I'LL PASS IT OVER TO
JENNY.
>> THANK YOU, CHANDRA.
HI, EVERYBODY, I'M AT NATIONAL
RENEWABLE ENERGY LAB AND I'LL
SPEAK TODAY ON OFF SITE
PROCUREMENT OPTIONS AND NEXT
SLIDE.
SO WE'RE GOING TO TALK ABOUT A
SUITE OF OPTIONS THAT ARE
AVAILABLE IN VARYING DEGREES
ACROSS THE COUNTRY AND THIS IS
OUR HIGH-LEVEL MAPPING OF THE
TYPES OF PROCUREMENT OPTIONS
THAT ARE AVAILABLE BASED ON YOUR
UTILITY MARKET.
SO YOU SEE THAT ON THE LEFT AND
OUR TRADITIONALLY REGULATED
MARKETS.
THESE HAVE VERTICALLY UTILITIES
WHERE IT'S IN CHARGE OF
GENERATION, TRANSMISSION AND
DISTRIBUTION UNDER THAT
STRUCTURE WE HAVE A UTILITY
GREEN PRICING PROGRAM AND
UTILITY GREEN TARIFF PROGRAM.
AND ON THE FAR-RIGHT, WE HAVE
OUR COMPETITIVE MARKETS OR YOU
MAY HEAR OF THEM AS RETAIL
CHOICE MARKETS AND THESE ARE
ONCONES WHERE CUSTOMERS CAN CHOSE
THEIR SUPPLIER AND THEIR SUPPLY
OPTION.
SO WE HAVE COMPETITIVE SUPPLIERS
OPERATING IN THAT MARKET AND IT
CAN OFFER OFF SITE CLEAN ENERGY
AND WE'VE GOT A HANDFUL OPTIONS
ARE JUST SHORT OF A HANDFUL OF
OPTION AND BOTH MARKETS SO THESE
ARE AGGREGATION, COMMUNITY
SOLAR, OFF SITE PPAs AND
UNBUNDLED RECs.
IF THESE TERMS ARE ALL NEW TO
YOU, IT'S FINE AND WE'LL WALK
THROUGH EACH OF THESE OPTIONS.
OVER THE NEXT PART OF THIS
SESSION.
WHEN WE TALK ABOUT THE
ELECTRICITY MARKET STATUS, BY
STATE, THIS IS A GENERAL
FRAMEWORK FOR STATES SO YOU CAN
SAY, I'M IN COLORADO THIS IS A
TRADITIONALLY REGULATED MARKET
IT MEANS I DON'T GET TO GO OUT
AND CHOSE MY SUPPLIER I NEED TO
WORK WITH MY UTILITY TO FIND OUT
WHAT OPTIONS THEY HAVE
AVAILABLE.
IF YOU ARE IN A LIGHT BLUE STATE
LIKE ILLINOIS, IT'S A
COMPETITIVE MARKET STATE WHERE
YOU THWHEREYOU HAVE YOUR ABILITY TO WORK
WITH YOUR SUPPLY TORE FIGURE OUT
AN OPTION THAT PROVIDES CLEAN
ENERGY.
SOME OF THE STATES IN GRAY THERE
ARE SELECTIVELY DEREGULATED SO
SOME LARGE CUSTOMERS MAY HAVE
THE OPTION TO CHOSE THEIR
SUPPLIER BUT IN GENERAL, THERE'S
NOT A LOT OF SUPPLY HAPPENING.
JUST A NOTE HERE THAT EVEN IN
OUR COMPETITIVE MARKET STATES,
THOSE LIGHT BLUE STATES, THERE
ARE SOME UTILITIES WHO ARE STILL
TRADITIONALLY REGULATED IN
PARTICULAR MUNICIPAL UTILITIES,
CO-OPERATIVE UTILITIES STILL ARE
TRADITIONALLY REGULATED.
WE'RE GOING TO WALK THROUGH EACH
OPTION AVAILABLE ACROSS THE
COUNTRY AND VARYING DEGREES.
BEFORE I GO INTO THESE I WANT TO
NOTE THAT ALL OF THESE OPTIONS
ARE NOT GOING TO BE AVAILABLE IN
THE SAME PLACE SO IT'S IMPORTANT
FOR SITES TO THINK ABOUT WHAT IS
THE MARKET STRUCTURE THAT
THEY'RE OPERATEIN OPERATEING OPERATEING AN D DO
CREANING THEY'RE SELLING RECs
TO UTILITY AND THE CUSTOMER AND
THE CUSTOMER IS PAYING THE
UTILITY FOR THOSE RECs.
AND THAT PAYMENT IS DONE THROUGH
AN ADDITIONAL LINE ITEM ON THE
UTILITY BILL AND PRICING
GENERALLY IS AROUNDS ONE TO TWO
CENTS A KILOWATT HOUR EXTRA AND
IN ADDITION TO YOUR REGULAR
UTILITY CHARGES.
THESE OPTIONS ARE PRETTY
AVAILABLE THROUGH UTILITIES
ACROSS THE COUNTRY AND WE DO
MAINTAIN A LIST OF AVAILABLE
OPTIONS AND YOU CAN ALSO JUST
SEARCH YOUR UTILITY TO SEE IF
THEY OFFER A PRODUCT.
NEXT SLIDE.
THE SECOND ONE IS UTILITY
RENEWABLE CONTRACTS.
YOU MAY HEAR THE TERM GROWN GREEN
TARIFFS.
IT'S CONFUSING TO UNDERSTAND
BETWEEN A GROWN PRICING PRODUCT
AND TARIFF.
THE KEY DISTINCTION IS REALLY
THE UTILITY IN THIS CASE IS
SERVING AS A PASS THROUGH OF AN
AGREEMENT BETWEEN A GENERATOR
AND A CUSTOMER.
SO IN THIS CARRYING YOU SEE THE
GENERATOR ENTERING INTO A
CONTRACT WITH THE UTILITY FOR
BOTH THE ELECTRICITY AND THE
RECs.
AND THEN THE UTILITY IS
PROVIDING BOTH AN ELECTRICITY
AND A REC OPTION TO THE
CUSTOMER.
AND IN THIS CASE YOU ARE NOT
JUST PAGAN ADDER LIKE AN EXTRA
ONE TO TWO CENTS PER KILOWATT
HOUR FOR THE PRODUCT LIKE A
GREEN PRICING PROGRAM, YOU ARE
PAYING THE COST OF THE
GENERATION FROM THE RENEWABLE
SOURCE AND NOT PAYING COST OF MY
FOSSIL GENERATION THAT THE
UTILITY MAY BE SUPPLYING TO
OTHER CUSTOMERS.
SO COMMUNITY CHOICE AGGREGATION
IS A STRUCTURE AVAILABLE IN
ABOUT EIGHT OR NINE STATES WHERE
THE LOCAL GOVERNMENT IS IN
CHARGE OF THE SUPPLY OPTIONS FOR
RESIDENTIAL CUSTOMERS AND
USUALLY SMALL COMMERCIAL
CUSTOMERS IN THEIR JURISDICTION.
IT'S A WAY FOR THE LOCAL
GOVERNMENT TO PROVIDE DIFFERENT
TYPES OF OPTIONS THAN THE
INVESTOR-OWNED UTILITY SO IN
THIS CASE WE SEE AGGREGATION OF
THE CUSTOMERS AND THEN THERE IS
A LOCAL GOVERNMENT ENTITY WHO IS
SOURCING CLEAN ENERGY FOR THOSE
CUSTOMERS.
THESE OPTIONS ARE REALLY JUST
LIKE A COMPETITIVE SUPPLIER
OPTION THAT WE'LL TALK ABOUT
LATER AND IT'S SOMETHING YOU
WOULD TELL YOUR CCA THAT YOU
WANTED TO KITCHEN TO THIS OPTION
AND THEN YOU WILL RECEIVE A
DIFFERENT BILL BASED ON THAT NEW
OPTION.
NEXT SLIDE.
COMMUNITY SOLAR IS A STRUCTURE
THAT ALLOWS CUSTOMERS WHO CAN'T
PUT SOLAR ON THEIR ROF OR DON'T
HAVE ENOUGH SPACE FOR ALL THE
SOLAR THEY WANT ON THEIR ROOF,
TO SOURCE FROM AN OFF SITE SOLAR
PROJECT.
THE EASIEST WAY I THINK ABOUT
THIS IS THAT YOU HAVE A LARGE
PROJECT LOCATED USUALLY IN THE
SAME UTILITY SERVICE TERRITORY
AS THE CUSTOMER.
CUSTOMERS WILL BUY A SHARE OR
LEASE A SHARE OF THAT PROJECT
AND THEN THEY WILL GET A BILL
CREDIT ON THEIR BILL FOR THE
UTILITY FOR THE GENERATION THAT
THEIR SHARE PRODUCED.
SO VERY SIMILAR TO HOW ROOFTOP
PV CAN WORK IN TERMS OF BILLING
AND PAYMENT STRUCTURES BUT
INSTEAD OF HAVING IT ON YOUR
ROOF, YOU ARE PURCHASE
INTERESTING THIS OFF SITE
PROJECT.
IT'S IMPORTANT TO NOTE THAT IN
SOME STATES THE RECs ARE NOT
CONVEYED TO THE CUSTOMER OR
THERE MAY BE AN OPTION TO
INCLUDE THE RECs OR NOT.
WE'RE GOING TO TALK ABOUT OFF
SITE POWER PURCHASE AGREEMENTS.
SO CHANDRA TALKED ABOUT ON-SITE
POWER PURCHASE AGREEMENTS.
OFF-SITE HAVE THE SAME GENERAL
FRAMEWORK AND THAT YOU ARE
BUYING UNDER A LONG-TERM
CONTRACT AND YOU ARE AGREEING TO
PAY A NEGOTIATED RATE THROUGHOUT
THAT CONTRACT.
YOU ARE PAYING THOUGH FOR
GENERATION THAT IS LOCATED
OFF-SITE AND YOU ARE STILL
HAVING A UTILITY RESPONSIBLE FOR
THE TRANSMISSION AND
DISTRIBUTION OF THAT OFF SITE
RENEWABLE ENERGY OR CLEAN
ENERGY.
PPAs, YOU MAY SEE THE RECs
CONVEYED TO THE CUSTOMER OR YOU
MAY NOT.
IT DEPENDS ON THE MARKET AND THE
GOALS OF THE CUSTOMERS.
THAT IS SOMETHING TO CONSIDER.
THESE ARE TYPICALLY LARGER
PURCHASING QUANTITIES SO
UNDERSTANDING THE WEATHER AND
UNDERSTANDING THE RECs CAN BE
IMPORTANT.
WE HAVE UNBUNDLED RECs.
THEY'RE RECs PURCHASED
SEPARATELY FROM YOUR ELECTRICITY
SUPPLY THAT GIVES PURCHASERS A
LITTLE BIT MORE FLEXIBILITY AND
IN TERMS OF THE TYPES OF
RESOURCES THAT THEY'RE SOURCING
FROM AND THEY CAN BE LOCATED
OUTSIDE OF THE CUSTOMERS'
UTILITY SERVICE TERRITORY AND
IT'S LIKE THAT.
SO, UNDER THE STRUCTURE YOU ARE
JUST BUYING THE ATTRIBUTES NOT
BUYING ANYTHING REALLY TO POWER
OR ELECTRICITY.
THAT GENERATOR WILL SELL TO
UTILITY AND SELL SEPARATELY TO
THE CUSTOMER.
REC OPTIONS ARE ALWAYS A PRICE
SOUL ALWAYS BE PAYING MORE JUST
LIKE OUR GREEN PRICING PROGRAMS.
NEXT SLIDE.
THE LAST OPTION I WANTED TO TALK
ABOUT IS COMPETITIVE ELECTRIC
SUPPLY THIS IS AN OPTION VEIL
NATIONAL OUR RESTRUCTURED
ELECTRICITY MARKETS WHERE
CUSTOMERS CAN CHOSE THEIR
SUPPLIER AND MOST SUPPLIERS DO
HAVE SOME TYPE OF ROW KNEW ABLE
ENERGY OR CLEAN ENERGY OPTION
AND IN THAT CASE THE CUSTOMERS
IS SWITCHING OVER TO THE
DIFFERENT COMPETITIVE SUPPLIER
OPTION AND THESE OPTIONS VARY BY
THE COMPETITIVE SUPPLIER AND
THERE MAY BE DIFFERENT PRICING
STRUCTURES AND IT MAY BE MORE OR
LESS THAN THE DEFAULT SUPPLY
DEPENDING ON THE RESOURCES
AVAILABLE AND THAT REGION AND
OTHER FACTORS.
AND FOR FEDERAL ELECTRIC
COMPETITIVE ELECTRIC SUPPLIER
OPTIONS, WE WOULD ENCOURAGE YOU
TO CONTACT THE GENERAL SERVICES
ADMINISTRATION OR DLA ENERGY FOR
ASSISTANCE AND THEY HAVE A LONG
HISTORY OF FACILITATING THESE
TRANCATIONS AND DOING THAT
COMPETITIVE PROCUREMENT ON
BEHALF OF FEDERAL AGENCIES.
WE'LL CLOSE OUT WITH COMPARISON
OF THESE DIFFERENT OPTIONS.
THIS IS DATA THAT IS COLLECTED
TO UNDERSTAND ANNUALLY HOW THESE
PURCHASING OPTIONS GROWING AND
HOW DO SALES COMPARE TO
CUSTOMERS PURCHASING THESE
OPTIONS AND THINGS LIKE THAT SO,
ON THE LEFT-HAND SIDE, YOU SEE
SALES THROUGH OUR DIFFERENT
SUPPLY OPTIONS AND YOU WILL SEE
THAT THE DARK BLUE IS UNBUNDLED
RECS SO IT HAS ALWAYS BEEN A
LARGE CHUNK OF THE MARKET AND IT
IS DECLINING IN TERMS OF ITS
MARKET SHARE AS WE HAVE SEEN
OTHER OPTIONS LIKE POWER
PROCEDURE AGREEMENTS GROW AND IN
TERMS OF THE SALES THAT THEY ARE
PROVIDING TO CUSTOMERS.
WHEN WE LOOK AT CUSTOMER COUNTS,
WE SEE THAT OUR COMMUNITY CHOICE
AGGREGATION CUSTOMERS REALLY
DOMINATE HERE AND THAT IS
LARGELY BUZZ IT'S A VIABLE
OPTION FOR RESIDENTIAL AND WE
DON'T SEE THE GREAT AMOUNT OF
CHANGELESS THROUGH CHOICE
AGGREGATION BUT THE CUSTOMER
ACCOUNTS ARE HIGH AND IT'S
DOMINATED IN A FEW STATES LIKE
CALIFORNIA, ILLINOIS AND MASS
PASS GENERALLY AND WE'LL GO
AHEAD AND MOVE ONTO THE LAST
SLIDE.
SO, AS WE'VE BEEN THROUGH ALL
THE OF THE OPTIONS YOU MAY BE
THINKING HOW DO THEY KNOW TO USE
AND WHICH ONE IS BETTER AND
DIFFERENT CONSIDERATION AND KEY
CHARACTERISTICS AND I'M NOT
GOING TO WALK THROUGH THE WHOLE
CHART AND SOME OF THE THINGS
REALLY RELEVANT AND SO THAT'S
ONE THING TO THINK ABOUT.
RELATED TO THAT IS PRICE
STABILITY SO UNDER SOME
PRODUCTS, YOU ARE PAYING THE
SAME AMOUNT EVERY MONTH AND
OTHER PRODUCTS YOU MAY BE PAGAN
ESCALATED AMOUNT EVERY YEAR AND
OTHER PRODUCTS MIGHT BE TIED TO
MARGARET BASED RATES.
SOME OF OUR COMMUNITY CHOICE
OPTION AND THEY'RE USUALLY
SHORTER TERM PRODUCTS SO MONTH
TO MONTH AND EASY IN AND EASY
OUT AND GENERALLY SHORTER
CONTRACT LENGTHS AND OUR OPTIONS
LIKE GROWN TARIFFS, WHOLESALE
CONTRACT AND COMMUNITY SOLAR AND
LONGER TERM AGREEMENT ZOOS 10 TO
20 YEARS AND A FOURTH THING IS
JUST EASE OF PARTICIPATION.
OTHER PRODUCTS WILL TAKE A LONG
TIME TO DEVELOP AND MAY REQUIRE
ISSUING AN RFP OR YOU MAY NEED
TO WORK THROUGH GSA OR DLA
ENERGY AND THE LASTLY THESE
OPTIONS VARY IN TERMS OF THE
CHOICE OF RENEWABLE ENERGY
RESOURCES AND SO IF IT'S
IMPORTANT FOR THE AGENCY TO
SOURCE FROM A PARTICULAR
RESOURCE TYPE A REGION AND
THERE'S DIFFERENT FLEXIBILITY
AND THE DIFFERENT OPTION
AVAILABLE GENERALLY WE SEE THAT
FOR PRICEING AND CCAs AND
THERE'S THE SUPPLIERS AND CHARGE
OF DETERMINING THE RESOURCE AND
PEOPLE COULD SIGN UP OR NOT.
BUT WHEN YOU LOOK AT A GROWN GREEN
TARIFF, COMPETITOR SUPPLY ERROR
WHOLESALE LIKE A PPA THE AGENCY
MAY BE ABLE TO HAVE SOME
PREFERENCE THERE IN TERMS OF
WHAT RESOURCES ARE USED.
SO WITH THAT, I WILL TURN TO THE
NEXT SLIDE.
WE WILL MOVE ON TO DOUG GAGNE.
THANK YOU.
>> ARE YOU ABLE TO HEAR ME OK?
>> YES, WE CAN.
>> GREAT.
SO, THANK YOU, JENNY.
YEAH THAT, WILL INCLUDE WITH
SOME DISCUSSION OF
DECARBONIZATION PROCUREMENT
CONSIDERATION THAT'S COULD APPLY
ACROSS MANY OF THE OPTIONS THAT
WE'VE COVERED TODAY.
SO, I'M JUST GOING TO START OFF
WITH THESE BROAD CONSIDERATIONS.
FIRST, ENERGY EFFICIENCY IS
ALWAYS A GOOD INITIAL STEP FOR
MOST OF THESE DECARBONIZATION
STRATEGIES, IT'S MUCH EASIER TO
REDUCE YOUR ELECTRICITY
CONSUMPTION FIRST AND REDUCE THE
TOTAL NUMBER OF KILOWATT HOURS
OF CARBON POLLUTION FREE
ELECTRICITY THAT YOU WILL NEED
TO PROCURE LOWER THAT TOTAL
AMOUNT FIRST AND YOU DON'T HAVE
TO PROCURE AS MUCH IN THE
FUTURE.
ALSO, SOME CONSIDERATIONS ARE
COST SAVINGS AND PRICE
STABILITY, AND CONTRACT LENGTH
AND PROCURE PURSUE MORE
AGGRESSIVE AND IT MAY BE OBTAIN
COST SAVINGS STIPULATING A WHOLE
RATE IN YOUR OFF-SITE PPA FOR
EXAMPLE.
AS YOU ENTER INTO COMPETITIVE
SUPPLY AGREEMENT, CONSIDER THE
TERM LENGTH OF THOSE AGREEMENTS
AS WELL AS WITH THOSE EXISTING
AGREEMENTS THAT ARE EXPIRING AND
WHETHER THAT GENERATION MIX MAY
BE A LIABILITY IN THE FUTURE P
FOR EXAMPLE, IF YOU ARE LOCKED
INTO A THREE-YEAR SUPPLY
CONTRACT WITH GRID MIX
ELECTRICITY FOR A LARGE PORTION
OF YOUR DEEDS, WILL YOU BE ABLE
TO MEET YOUR INTERIM CARBON
POLLUTION FREE ELECTRICITY
TARGETS.
CONSIDER THE 14057 GOALS FOR 50%
OF THAT CONSUMPTION TO BE
MATCHED UP WITH YOUR SITE LOAD
OR 24/7.
THIS COULD BE CONSIDERED BY
TRYING TO PROCURE A DIVERSITY OF
DIFFERENT TYPES OF GENERATION
RESOURCES FOR EXAMPLE AND SO, IF
YOU ONLY PROCURED SOLAR, TO MAKE
INCREMENTAL PROGRESS TOWARDS
THAT 100% CFE GOAL, IT MAY NOT
MATCH UP WITH NIGHTTIME
CONSUMPTION AND BETTER OPTIONS
COULD BE PROCURING A MIX OF
RESOURCES LIKE SOLAR TO MATCH UP
WITH YOUR DAYTIME CONSUMPTION
AND WIND TO MATCH UP WITH YOUR
NIGHTTIME CONSUMPTION OR IF YOU
ARE A BROAD UTILITY MARKET,
MAYBE YOU ARE PROCURING
RESOURCES FROM DIFFERENT AREAS.
THIS IS A GOOD WAY TO
POTENTIALLY START THINKING ABOUT
SOME OF THOSE MATCHING GOALS.
IF YOU HAVE ELECTRICITY MARKETS
AND WE STRONGLY RECOMMEND THAT
YOU REACH TOUT GSA AND DLA
ENERGY AS JENNY MENTIONED.
WHICH IS APPROPRIATE FOR YOUR
AGENCY.
FOR ASSISTANCE WITH CFE
PURCHASES IN COMPETITIVE
MARKETS.
YOU CAN TAP INTO THEIR
CONSIDERABLE EXPERTISE AND
MANAGING THESE COMPETITIVE
SOLICITATION AND INCORPORATE
YOUR OBJECTIVES INTO THE
PROCUREMENT FOR CARBON
POLLUTION-FREE ELECTRICITY.
YOU MAY BE ABLE TO AGO AGREE
GATE NUR NEEDS TO ACHIEVE
GREATER ECONOMIES OF SCALE AND
HOPEFULLY A BETTER RESULTING AND
LOWER ENERGY PRICE FROM THAT
PROCUREMENT AS WELL.
FOURTH, FIRST SITES AND
REGULATED UTILITY MARKETS, YOUR
OPTIONS ARE REALLY GOING TO
DEPEND ON YOUR SERVING UTILITIES
OFFERINGS.
SOME UTILITIES MAY NOT OFFER CFE
OPTIONS IN WHICH CASE YOU CAN
POTENTIALLY DISCUSS NEW
OFFERINGS OR COORDINATE WITH
OTHER FEDERAL AGENCIES TO MAKE A
BIGGER ASKED TO THAT UTILITY AND
ASK FOR THESE OF SOME CARBON
POLLUTION FREE OPTIONS.
I NOTED THE FIFTH ONE AROUND 24/
24/7 GOALS AND LASTLY WHO OWNS
THE RECs FROM YOUR OFF SITE
PURCHASE.
THIS ISN'T ALWAYS CLEARLY
STATED, SO MAKING SURE THAT THE
OWNERSHIP OF THOSE RECs AND
HOW THOSE RECs WILL BE TRACKED
AND RETIRED ARE REALLY IMPORTANT
FOR MEETING FEDERAL REPORTING
REQUIREMENTS.
SO, ONE GOOD RESOURCE FOR
DECARBONIZATION PLANNING EFFORTS
IS THE EMISSIONS AND GENERATION
RESOURCE INTEGRATED DATABASE.
THIS INCLUDES EMISSION RATES AND
RESOURCE MIX BY REGION.
YOU CAN USE THIS TOOL TO
APPROXIMATE EIGHT THE CARBON
INTENSITY AND RESOURCE MIX OF
VARIOUS SITES IN YOUR AGENCIES'
PORTFOLIO.
THIS COULD BE HELPFUL TO KNOW
FOR EXAMPLE, IF YOU HAVE SITES
FOR EXAMPLE IN CALIFORNIA AND
WYOMING, YOU MAY FIND THAT THAT
CFE PROJECT WILL HAVE A GREATER
IMPACT IN WYOMING WHERE THERE'S
A HIGH CARBON INTENSITY COMPARED
TO CALIFORNIA WHERE YOUR PROJECT
MAY BE OFFSETTING THE GENERATING
FROM EXISTING LOW CARBON ASSETS
LIKE SOLAR PV DURING PEAK
MID-DAY HOURS.
TO ELABORATE ON THE 24/7 CARBON
POLLUTION FREE ELECTRICITY
CONSIDERATIONS, AS CONSIDER THIS
GRID MIX AND BEGIN FORMULATING
STRATEGIES FOR MATCHING YOUR AS
ALWAYS, AGAIN, I'LL CONSIDER YOU
TO SAY THAT MATCHING THE HOURS
IS A GREAT FIRST STEP AND WHERE
COST EFFECTIVE, ADDING ON SITE
GENERATION AND STORAGE IS
ANOTHER WAY TO ENSURE THESE LOW
CARBON RESOURCES ARE MATCHED UP
TO YOUR LOAD SINCE THESE ASSETS
ARE ON SITE YOU ACTUALLY SERVING
YOUR LOAD ON A ONE FOR ONE BASIS
AND THAT STORAGE TO BE USED TO
OVER SIZE THE PV ON YOUR SITE TO
ALLOW FOR ADDITIONAL MATCHING OF
THOSE KILOWATT HOURS TO LATER
TIMES OF THE DAY WHEN MAYBE THE
SUN ISN'T SHINING AS MUCH.
NEXT MAKING OPERATIONAL CHANGES
TO SHIFT YOUR DEMAND FROM
PERIODS OF HIGH GRID EMISSIONS
TO THOSE WITH LOWRY MISSIONS.
IF YOU CAN MOVE YOUR COOLING
LOADS EARLIER IN THE DAY TO
MATCH UP WITH SOLAR PENETRATION
AND HIGHER SOLAR AND THAT IS
ANOTHER WAY THAT YOU COULD KIND
OF GET FREE CFE MOVING YOUR
CONSUMPTION AROUND.
FINALLY, AS I NOTED BEFORE,
PROCURING THESE RESOURCE 0 A
DIVERSE SET OF GENERATION TYPES
CAN ALLOW FOR A BETTER
AROUND-THE-CLOCK MATCHING OF
YOUR LOAD AS WELL.
WE'RE SEEING THAT COMMONLY AMONG
DIFFERENT PRIVATE ENTITIES THAT
ARE TRYING TO MEET THESE 24/7
GOALS.
SOME SITES HAVE HOURLY INTERVAL
DATA BUT OTHER SITES MAY NOT.
ESPECIALLY SMALLER SITES.
GATHERING AND UNDERSTANDING YOUR
HOURLY LOAD IS GOING TO BE A KEY
FIRST STEP IN ADDRESSING THESE
24/7 GOALS.
ANOTHER RESOURCE IS LOOKING TO
YOUR COMPETITIVE CONTRACTS FOR
SITES IN THOSE REGIONS AS A GOOD
SOURCE OF INFORMATION.
EXISTING CONTRACTS MAY CONTAIN
HOURLY SUPPLY REQUIREMENTS AND
THIS COULD BE STIPULATED IN
FUTURE CONTRACTS AS WELL.
ANOTHER VALUABLE TOOL IS THE
DATA SET AND IT CONTAINS HOURLY
EMISSIONS, COSTS AND DATA FOR
THE ELECTRIC SECTOR.
THIS TOOL CAN BE USED TO BETTER
UNDERSTAND THE HOURLY EMISSION
REDUCTIONS FROM CFE PROJECTS
OVER TIME, AND IT WILL CALCULATE
A LONG-RUN MARGINAL EMISSIONS
RATE BASED ON THE INPUT HERE.
THIS COULD BE EXPLORED ANNUALLY
OR HOURLY AS SHOWN IN THOSE
COLORED BOXES THERE AND GIVES
MULTIPLE SCENARIOS ABOUT HOW THE
GRID WILL EVOLVE OVER TIME.
THIS IS A POWERFUL TOOL FOR
ANSWERING SOME OF THE QUESTIONS
LISTED HERE AND CAMBIUM HAS A
DATA VIEWER WEB TOOL THAT YOU
CAN USE TO LOOK AT DATA BEHIND
THESE SCENARIOS AND VISUALIZE
HOW THAT GRID MIX OF DIFFERENT
GENERATION TECHNOLOGIES WHITE MIGHT
CHANGE OVER TIME.
I WANT TO NOTE, ALTHOUGH THIS IS
A POWERFUL TOOL FOR MODELING
FUTURE SCENARIOS IT'S IMPORTANT
TO NOTE IT'S EMISSIONS ARE
MONTAGUMODELED FOR BACKWARDS-LOOKING,
ACTUALLY MISSIONS DATA USING
DATASETS SUCH AS E-GRID AND
AVERT ARE RECOMMENDED.
SO, TO SUMMARIZE, HERE ARE SOME
OF THE DIFFERENT OPTIONS WE'VE
CONSIDERED TODAY.
ON SITE CFE GOVERNMENT OWNED AND
PERFORMANCE CONTRACTING AND
APPROPRIATIONS.
YOU HAVE PRIVATELY-OWNED ON-SITE
OPTIONS LIKE PPAs AND ENERGY
SALES AGREEMENTS THAT CHANDRA
COVERED AND THE REAL PROPERTY
ARRANGEMENTS SUCH AS LEASES OR
EASEMENTS ON FEDERAL SITES AND
THEN JENNY COVERED THE WIDE
RANGE OF OFF SITE PROCUREMENT
OPTIONS LISTED THERE.
I'LL COVER JUST A FEW KEY
TAKEAWAYS FROM OUR PRESENTATION
AND WE CAN GO TO A BREAK AND
THEN WE'LL COME BACK FOR SOME
RESOURCES TOOLS AND Q&A.
SO, BIG PICTURE TAKEAWAYS FROM
THIS PRESENTATION -- DEFINITELY
CONSIDER PERFORMANCE CONTRACTING
AS AN IMPORTANT KEYSTONE TO MEET
YOUR CAR BON FREE POLLUTION
GOALS.
REDUCING YOUR LOAD IS A GOOD
START.
SAVINGS FROM THOSE DIFFERENT
ENERGY CONSERVATION MEASURES CAN
BE USED TO FURTHER DEEPEN YOUR
ENERGY SAVINGS OR PURSUE OTHER
STRATEGIES SUCH AS
ELECTRIFICATION.
IF YOU LOOK TO PROCURE ON-SITE
GENERATION, THINK ABOUT
ALTERNATIVES LIKENNER GEE SALES
AGREEMENTS, UNDER ESPCs OR
WORK WITH YOUR SERVING UTILITY
TO PROCURE THESE OPTIONS.
IF YOU HAVE SITES IN COMPETITIVE
MARKETS, REACH OUT TO GSA AND
DLA ENERGY RESPECTIVELY TO YOUR
ORGANIZATION FOR ASSISTANCE WITH
THESE PURCHASES AND THEY HAVE A
WEALTH OF EXPERIENCE AND
FINALLY, CONSIDER ALL OPTIONS
THAT MEET THESE GOALS.
THEY ARE AMBITIOUS AND THERE'S
NO SINGLE SILVER BULLET
APPROACH.
LOOK AT PERFORMANCE CONTRACTING,
PLUS OFF SITE PURCHASES.
IT'S GOING TO DEPEND ON SITE AND
UTILITY TERRITORY THAT YOU FIND
YOURSELF IN SO I THINK WE'LL
HAVE TO BE CREATIVE AND I'LL
NOTE SOME OF THE RESOURCES THAT
ARE AVAILABLE TO YOU ALL TO HELP
YOU ACCOMPLISH THESE GOALS.
SO, WITH THAT, WE'LL COME UP TO
THE RESOURCES SECTION AT THE TOP
AND I'LL DEFER TO DIANA TO TALK
ABOUT ANY BREAK LOGISTICS.
>> THANK YOU.
WE'LL TAKE A 15-MINUTE BREAK.
13 NOW.
WE'LL START BACK UP AGAIN AT
12:15 SHARP.
SO THAT IS IT.
WE'LL SEE EVERYONE SOON.
THANK YOU.
>> WELCOME BACK TO OUR
PRESENTATION ON DECARBONIZATION
PROCUREMENT OPTIONS IN THE
FEDERAL SECTOR.
WE'RE GOING TO PICK UP RIGHT
WHERE WE LEFT OFF ON RESOURCES
AND TOOLS.
>> THANK YOU.
SO, WE'LL GO OVER SOME FEMP
TOOLS AND RESOURCES AND GET INTO
THE Q AND A.
IF YOU HAVEN'T SUBMITTED A
QUESTION, WE'LL GET TO THOSE AT
END OF THE THIS BRIEF SECTION ON
THE POOLS AND RESOURCES.
THIS FIRST SLID SHOWS THE MAIN
PAGES FOR ESPC, UESC AND
DISTRIBUTED ENERGY PROGRAMS.
EACH HAS EDUCATIONAL
INFORMATION, SPECIFIC TOPICAL
RESOURCES AND INFORMATION ABOUT
THE SERVICES THAT AT THE OFFER.
HERE WE HAVE TOOLS AND DISCUSSED
THROUGHOUT THE PRESENTATION AND
AND THE GREENHOUSE GAS
ACCOUNTING AND AS WELL AS MORE
INFORMATION ABOUT THE REAPP WEB
TOOL AND RENEWABLE ENERGY
TECHNIQUE AND ECONOMIC ANALYSIS
AND THE RELATIVE TO EMISSIONS
DATA AND EPA EGRID INFORMATION.
YOU CAN SEE HERE ONE OF THE
CHARGE THAT JENNY WENT OVER IN
HER PRESENTATIONS AND THIS PAGE
HAS RESOURCES RELATED TO
VOLUNTARY PERSONAL AND WHERE
THEY CAME FROM AND SO THEY HAVE
FEDERAL PROJECT EXECUTIVES OR
SPE WHO ARE PRIMARILY RESOURCE
INFORM ASSISTANCE AND GUIDANCE
ON FEDERAL ENERGY PROJECTS.
IN THIS MAP SHOWS EACH FPE BY
THE REGION AND START A PROJECTOR
IF YOU HAVE ANY QUESTIONS WE
ENCOURAGE YOU TO REACH OUT TO
THE FPE IN YOUR REGION.
IN ADDITION TO THOSE OFFERED BY
THE FPE THEY PROVIDE TECHNICAL
ASSISTANCE AT NO COST AND
PROVIDING TRAINING FOR SPECIFIC
AUDIENCES WITH THE AGENCIES AND
PLEASE SUBMIT A REQUEST THROUGH
TECHNICAL ASSISTANCE AS WELL AS
DRO AND CONSIDERATIONS AND THE
PERFORMANCE CONTRACT AND
PERSONALLY HOSTED AND AS AN ON
DEMAND TRAINING IN THE NEAR
FUTURE AND WEBSITE AND WHERE
RESOURCES CAN BE FOUND.
THE SECOND TRAINING ON THIS
PAGE, IT'S NOT A TYPO, THEY'RE
GIVING IT A SIMILAR PRESENTATION
THAT PRESENTATION WILL BE MADE
AVAILABLE ON DEMAND.
THERE ARE MANY UPCOMING
ENTERTAINMENT THAT I WANEVENTS.THE FIRST I N MAY WE HAVE SOME
FEDERAL UTILITY PARTNERSHIP
WORKING GROUP SCHEDULED FOR MAY
THIRD AND FOURTH AND
REGISTRATION IS OPEN AND THE
LINK IS AVAILABLE ON THE SLIDE
AND THROUGH THE WEB PAGE AND IT
WILL BE VIRTUAL AND NO COST TO
PARTICIPATE.
IT WILL BRING SPOT FEDERAL AGE TOGETHER FE DERAL
AGES AND MAINTAIN PARTNERSHIPS
IN ORDER TO IN THE MID JUNE AND
AND STAY TUNED FOR MORE
INFORMATION ABOUT THAT WEBINAR.
WE ALSO WANTED HIGHLIGHT SOME
EXISTING RESOURCES THAT ARE
AVAILABLE ALSO ON THE WEBSITE WE
HAVE A SERIES ON ESPC ESAs AND
IF YOU ARE INTERESTED IN THOSE
NOT AVAILABLE ON DEMAND, LET US
KNOW AND WE WOULD BE HAPPY WITH
THE RESOURCES.
THIS IS THE FINAL TRAINING SLIDE
AND WE CAN GET TO THE Q&A BUT WE
DID WANT TO HIGHLIGHT THIS
WORKING WITH YOUR UTILITY
WEBINAR SERIES AND THE FIRST
THROW INSTALLMENTS WHICH ARE
AVAILABLE ON DEMAND AND THESE
FOCUS ON INTERCONNECTION POP
TICKS BASICS AND SOME MORE
ADVANCE TOPICS AS WELL AS
UTILITY COSTS IMPLICATIONS OF
DISTRIBUTED ENERGY PROJECTS.
WITH THAT, NEXT SLIDE, PLACE.
WE CAN MOVE TO THE Q&A SESSION.
SO THANK YOU TO EVERYONE WHO
HAVE ALREADY SUBMITTED YOUR
QUESTIONS THROUGH THE WINDOW IN
THE BROWSER AND I WANT TO
COMMENT BEFORE WE GET THINGS OFF
AND AND THE EXECUTIVE ORDER
WHERE THERE ARE OTHERS AND
REALLY THIS GOAL IS TO
DEMONSTRATE HOW EXISTING
TEMPERATURETOOLSCAN BE USED IN CLASSIFICAT ION OF
ELECTRICITY THAT YOUR AGENCY IS
SEEKING WHICH MAY INCLUDE ROW
KNEW ABLE AND SO, CAN YOU GO
AHEAD AND GET STARTED.
THE FIRST QUESTION THAT WE'RE
GOING THROUGH IS ESPC AND USEC
ARE THERE CONTRACT MODIFICATIONS
DURING THE 25-YEAR PERIOD OF THE
FIXED PRICE CONTRACT DO YOU TO
CHANGE IN MISSION OBJECTIVES
THAT REQUIRE POWER INCREASED?
>> I'M TAKE A SHOT AT THAT ONE.
I DON'T KNOW IF THERE ARE OFTEN
CONTRACT MODIFICATIONS AND
CONTRACT MODIFICATIONS ARE AN
OPTION AND DEPENDING ON HOW
SUBSTANTIAL THE CHANGES ARE AND
MIGHT BE POSSIBLE TO DO FOR
EXAMPLE A CHANGE ORDER OR IT
MIGHT NECESSARILY REQUIRE AN
OFFICIAL CONTRACT MAUD BUT
REALLY DEPENDS ON THE SITUATION
AND I ENCOURAGE ANY AGENCY
DEALING WITH THIS ISSUE TO REACH
OUT TO THE FEDERAL PROJECT
EXECUTIVE AS NICOLE MENTIONS A
GREAT RESOURCES AND OTHER
VARIOUS OTHER EXPERTS THAT CAN
HELP YOU.
SO IF YOU HAVE ANY QUESTIONS
RELATED TO POTENTIAL CONTRACT
PODS, REACH OUT TO THEM AND WE
CAN PROVIDE ASSISTANCE.
WE HAVE A RETIRED FORMER
CONTRACTING OFFICER ON CONTRACTS
AND THEY HAVE A FORMER NAVY C.O.
AND OTHER FORMER C.O.s AS WELL
THAT HELP WITH THESE TYPES OF
QUESTIONS.
LOOKS LIKE DOUG MIGHT HAVE
SOMETHING TO ADD THERE.
>> I THINK YOU COVERED IT.
YOU GOT IT ALL.
>> OK.
>> THE NEXT QUESTION IS RELATED
TO REC OWNERSHIP AND JENNY IN
YOUR PORTION OF THE
PRESENTATION, YOU MENTIONED THAT
THERE WERE OPTION THAT'S WOULD
NOT INCLUDE RECs BEING
PROVIDED TO THE CUSTOMER IN THAT
CASE.
COULD YOU COMMENT A LITTLE BIT
ABOUT WHY THEY MIGHT BE BETTER
OR BENEFICIAL FOR AN AGENCY?
>> YEAH, SO, YEAH, THAT'S
CORRECT.
NOT ALL OPTIONS CONVEY THE
RECs TO THE CUSTOMER.
AND THAT SOMETIMES HAS TO DO
WITH JUST THE FINANCIAL VALUES
THAT THE RECS CAN CARRY AND
CERTAIN MARKETS.
SO, AND SOME CASES, YOU MIGHT BE
ABLE TO SAVE MORE MONEY THROUGH
A CONTRACT IF YOU DON'T KEEP THE
REC ZOOS IF YOU LET THE UTILITY
KEEP THEM OR LET A THIRD PARTY
DEVELOPER KEEP THEM AND THAT IS
SOMETHING WE SEE A LOT AND THE
COMMUNITY SOLAR SPACE WHERE
STATES HAVE ESTABLISHED
COMMUNITY SOLAR MANDATES AND THE
UTILITIES YOU USING THE RECs TO
COMPLY WITH THOSE MANDATES.
YEAH, PRIMARILY THE TRADE OFF
IS, CLAIMING THE RENEWABLE
ENERGY USE VERSUS THE COST OF
THE PRODUCT THAT YOU AR YOU ARE BUYING.
>> GREAT, THANK YOU.
THERE'S A QUESTION HERE I THINK
WE CAN LIKELY GO TO YOU AS WELL
AND RELATED TO LISTS OF
AVAILABLE PRODUCTS OR OPTIONSES
FROM SUPPLIERS AND I WONDER IF
YOU CAN SPEAK MORE ABOUT THAT
VOLUNTARY PROCUREMENT PAGE.
WE ARE NOT PRODUCING IN
SUPPLIERS OR THEIR PRODUCTS IN
THIS FORM BUT, THAT IS A
(INAUDIBLE).
>> YEAH, ONE OF THE RESOURCES
THAT WAS LISTED IS A RESOURCE ON
AVAILABLE PRODUCTS.
WE COVER THINGS LIKE GROWN GROWN GREEN
PRICING, GREEN TARIFFs,
COMMUNITY SOLAR AS WELL.
I WOULD SAY THAT THESE PRODUCTS
CHANGE ALL THE TIME.
SO IT CAN BE DIFFICULT TO KEEP
UP WITH WHICH PRODUCTS ARE
AVAILABLE AND WHEN.
SO IT ENCOURAGES YOU TO WORK
WITH OTHERS TO FIND THE MOST
UP-TO-DATE INFORMATION BUT YEAH,
WE HAVE A LIST OF PRODUCTS ON
THAT PRICING PAGE.
AND YEAH, IT DOESN'T COVER
EVERYTHING.
WITH COMPETITIVE SUPPLIERS, WE
KNOW THOSE OFFERS CHANGE QUITE A
BIT AS WELL SO THAT WHY WORKING
WITH DLA ENERGY, OR ANOTHER GSA
CAN HELP YOU UNDERSTAND HOW TO
PROCURE THROUGH THAT PATHWAY.
>>
>> DOES ANYBODY HAVE ANYTHING
THEY WANT TO ADD ON THAT TOPIC?
WE COULD ALSO POINT FOLKS TO IT
COVERS A LOT OF GREEN TARIFF
OPTION THIS IS ADDITION TO THE
GREEN PRICING SUMMARY THAT JENNY
WAS JUST DESCRIBING.
IT'S ANOTHER RESOURCE FOR FOLKS.
>> THAT WAS INCLUDED ON THAT
LIST OF RESOURCES AS WELL.
FOR FOLKS TO CHECK OUT.
HE THINK THAT ADDRESSES THE
QUESTIONS THAT WE HAVE SO FAR
BUT THERE ARE ANY OTHER
QUESTIONS IN THE CHAT WE WOULD
REALLY (INAUDIBLE).
WOULD ANYONE ON THE TEAM LIKE TO
ADD ANYTHING ABOUT TODAY'S
PRESENTATION?
>> I HAVE ONE ADD.
WHEN IT COMES TO THE ON SITE
PROJECT I DID MENTION WHEN IT
COMES TO COORDINATING WITH
UTILITY IS TO ASK THE UTILITY IF
THERE'S A TARIFF CHANGE THAT
WOULD RESULT FROM ANY
PERFORMANCE CONTRACT AND ENERGY
EFFICIENCY AS WELL AS ON SITE
CFE CAN CHANGE THE USAGE
PATTERNS AND TAKE YOU INTO A
DIFFERENT TARIFF CATEGORY AND IF
YOU DO FOR EXAMPLE SOLAR AND OR
BATTERIES, THERE MIGHT BE A
SPECIFIC TARIFF THAT WOULD APPLY
THAT YOU WON'T BE ELIGIBLE FOR.
YOU MAY BE ELIGIBLE OR REQUIRED
TO SWITCH TO A CERTAIN TARIFF.
THEY'RE ALSO STAND BY TARIFFS
THAT MIGHT APPLY DEPENDING ON
THE TECHNOLOGY AND THE SIZE OF
THE PROJECT SO THAT'S VERY
IMPORTANT TO UNDERSTAND SO
TARIFF CHANGES AND STAND BY
CHARGES ARE VERY IMPORTANT WHEN
IT COMES TO DETERMINE FORECAST
THE PROJECT WILL BE COST
EFFECTIVE.
AND UNDERSTANDING THE
IMPLICATIONS ON THE COST SIDE EX
ANOTHER IMPORTANT REASON TO TALK
TO THE UTILITY IN ADDITION TO
WHAT I JUST MENTIONED AND ALSO
TO FIND OUT WHAT TYPE OF THEY
MIGHT HAVE.
>> AND ONE ADDITIONAL POINT
THERE IN THE RESOURCE THAT'S ARE
THINK IT WOULD BE TO
SPECIFICALLY DOING THIS
PRESENTATION OTHER REGION
CHECKLIST TO HELPING THROUGH
THAT PROCESS AND THE FEDERAL
SPECIFIC LANDSCAPE YOU WILL SEE
HIGHER SAVINGS.
IN TERMS OF HOW MUCH SAVINGS, IT
REALLY VARIES A CROSS THE
COUNTRY AND IN TERMS OF WHAT
COMPLIANCE MARKET YOU ARE IN AND
THERE'S A LOT OF RENEWABLE
ENERGY SUPPLY AND FOR EXAMPLE,
IN TEXAS RECs ARE NOT WORTH A
LOT SO YOU WOULDN'T SEE A LOT
MORE SAVINGS AND OTHER MARKETS
IN THE NORTHEAST AND ATLANTIC
YOU MAY SEE MORE COST SAVINGS BY
TELLING THE RECs.
SO, I HATE THAT ANSWER BUT IT'S
ALWAYS MARKET SPECIFIC AND
CONTACT-SPECIFIC BUT YES IN
GENERAL, YOU KNOW, YOU ARE
WATCHING SAVINGS FOR SAVINGS FOR
CLAIMS.
>> GREAT.
THANK YOU.
I THINK SO MUCH OF THIS CAN BE
LOCATION-DRIVEN, ESPECIALLY IF
YOU ARE GOING THROUGH THE RATE
STRUCTURE OR UTILITY MARKET
STRUCTURES AS WELL.
>> THERE'S A QUESTION.
BRING ON BOARD A REPRESENTATIVE
TO ASSIST WITH CONTRACT LANGUAGE
AS A BENEFICIAL INVESTMENT.
I WOULD ALSO LIKE TO POINT OUT
HERE THAT'S ASSISTANCE WITH THAT
TYPE OF CONTRACT LANGUAGE IS
SERVICES PROVIDED TO AGENCIES
AND TECHNICAL ASSISTANCE AND THE
ASSESSMENTS AND SO I WANT TO ADD
THAT POINT IN THERE AND ALSO
CHANDRA CAN YOU TAKE THAT ONE?
>> SURE.
IT CAN BE BENEFICIAL WHEN IT
COMES TO GENERAL PPA
CONSIDERATIONS AND FEDERAL
AGENCIES TYPICALLY NEED TO
COMPLY WITH THE FEDERAL
ACQUISITION REGULATIONS OR FAR
SO THEY'RE CONTRACTS LOOK A
LITTLE BIT DIFFERENT THAN THE
PRIVATE SECTOR CONTRACTS.
SO, IF YOU ARE BRINGING ON BOARD
A PRIVATE COMPANY TO HELP WITH
THE PROCUREMENT, THEY MAY NOT BE
ABLE WITH THE FAR CONSIDERATIONS
UNLESS THEY HAVE
FEDERAL-SPECIFIC EXPERTISE IN
THAT AREA SO YEAH, IT COULD BE
HELPFUL.
THEY MAY BE HELPFUL IF THAT AREA
AND IT MAY BE HELPFUL IN THE
GENERAL CONSIDERATION AREA AND
THINGS YOU WOULD WANT TO KIND OF
LOOK INTO IS SEEING IF THEY
COULD GET COMPS FROM OTHER
COMPARABLE TRANSACTION ZOOS YOU
HAVE A SENSE OF WHAT THE PPA
MARKET IS IN THAT AREA AND THOSE
ARE USUALLY PROPRIETARY AND
IDENTIFYING RISKY CLAUSES FOR
THE GOVERNMENT.
EVALUATING THE REASONABLENESS OF
ESCALATION RATES IS A REALLY
IMPORTANT ONE AND YOU KNOW, YOU
MIGHT GET MULTIPLE, IF YOU DON'T
SPECIFY, WHAT ESCALATION RATE TO
USE YOU MIGHT GET MULTIPLE BIDS
THAT MAKES IT HARD TO COMPARE.
WELL AS MY SIX CENT PPA WITH
THIS 4% ESCALATE EGG BETTER DEAL A BETTER DEAL,
SOMEONE WITH FINANCIAL MODELING
ABILITIES TO KIND OF LOOK AT
THOSE DIFFERENT PAYMENTS STREAMS
FOR YOU AND TELL YOU WHAT THE
BETTER DEAL MIGHT BE OR WHAT THE
BENEFITS OR RISKS MIGHT BE AND
AND THE CONTEXT OF CIVILIAN
AGENCIES, IT'S SHORT TERM AND SO
CAN THEY GET IT DONE IN A PAR
PART 41 TRANSACTION SO THERE'S A
BIGGER QUESTION WITH THE PPA
STUFF OF CAN YOU GET THE PROJECT
DONE IF YOU ARE NOT DoD?
>> RIGHT.
>> OR THE ASPECTS TOO.
HOW THEY'RE TREATED AND DOING
THE DUE DILIGENCE OF LIKE, YOU
KNOW, IF YOU THINK THAT THE PPA
DEVELOPERS ARE GOING TO GET THE
TAX INCENTIVES PLUS THESE, SAY
YOU ARE IN D.C. THEY'RE VALUABLE
AND UNDERSTANDING HOW MUCH OF
THAT VALUE IS GOING TO YOU IN
TERMS OF A LOWER PPA PRICE AND
IT WOULD BE ANOTHER THING TO
KIND OF EVALUATE CAREFULLY.
>> GOOD POINT.
THE ONE DOWNSIDE OF HAVING THE S
REC SOLD FROM A PROJECT IS THESE
MARKETS ARE HAVE TILE AN VOLATILE.
IT'S IMPORTANT TO UNDERSTAND
WHAT WILL HAPPEN IF PRICES
CHANGE WHILE YOU ARE NEGOTIATING
THE CONTRACT IF THERE'S A BIG
MARKET CHANGE WHILE YOU ARE IN
NEGOTIATION ALSO THEY SAY, WELL,
THERE'S BEEN A CHANGE IN THE REC
MARKET SO WE NEED TO CHANGE OUR
PRICE.
AND THE RECs GO UP AND THEY
SAY WE'RE ABLE TO LOW THE POLICE
THAT'S GREAT BUT IF THE THE
OTHER WAY AROUND FEDERAL
GOVERNMENT MIGHT REALIZE THE
PROJECT IS NOT VIABLE.
>> WHEN IT COMES TO THE FAR
CLAUSES AND SUCH AND SOME OF THE
FEDERAL-SPECIFIC CONTRACTS IF
THE CONTRACTING OFFICER NEEDS
HELP DECIDING THE APPROPRIATE
CAUSE AND IF THEY HAVE
CONTRACTING QUESTIONS WE CAN
CERTAINLY BRING IN ROSS TO HELP
WITH THAT.
>> GREAT.
THANK YOU.
THE ONE QUICK LAST POINT I'LL
MAKE ON THAT QUESTION IS THAT
FEMALE AND DOE IN THE PROGRAMS
OFFICE ARE COLLABORATING ON THE
DEVELOPMENT OF THE PERFORMANCE
CONTRACTING NATURAL RESOURCES
WHICH WILL HAVE A TRAINING
CERTIFICATE SERIES FOR OWNERS
REPRESENTING FOR ESPC SO IF YOU
ARE INTERESTED IN LEARNING MORE
ABOUT THE ROLE THAT THERE'S
(INAUDIBLE) PLEASE STAY TUNED IN
THERE AND WE'LL (INAUDIBLE) MORE
OF THAT INFORMATION OUT SHORTLY.
ANOTHER QUESTION RELATED TO
SERVICES BEING CHARGERS THERE'S
A FEW SO WE HAVE A LIMITED
BUDGET SO DEPENDING ON THE
SCOPE, WE MAY NEED TO HAVE A
FURTHER DISCUSSION AND
UNDERSTANDING ABOUT WHAT THE
NEEDS OF THE AGENCY AND REGION
ARE BUT IN GENERAL THERE'S THE
TYPE OF ASSISTANCE IS OFFERED
THROUGH THE CHARGE STATION.
WE HAVE HAD A COUPLE OTHER
COMMENTS RELATED TO (INAUDIBLE)
AND WE WANT TO CLARIFY THAT
WE'RE NOT ABLE TO SHARE
INFORMATION ABOUT HOW THE
ACCOUNTING MAY OR MAY NOT BE
AFFECTED BY THAT EXECUTIVE ORDER
INSTRUCTIONS AND I (INAUDIBLE)
AND JUST MENTION AGAIN THERE ARE
MANY INSTRUCTIONS ARE FOURTH
COMING.
ALL RIGHT.
>> THANK YOU SO MUCH TO THE TEAM
FROM NREL.
WHEN A WEALTH OF INFORMATION AND
I'M SURE AS WE GET OUR
IMPLEMENTING INSTRUCTIONS
EVERYONE WILL DIGEST ALL THESE
OPTIONS AND AND NAVIGATING
THROUGH ALL OF THIS SO WE'RE A
LITTLE BIT EARLY AND I'D LIKE TO
MAKE SURE OUR NEXT PRESENTERS
HAVE TIME SO WE WILL BREAK
BRIEFLY FOR A FEW MINUTES UNTIL
WE HAVE EVERYONE TOGETHER AND
WE'LL START UP AGAIN AT 12:45.
THANK YOU.
AN HOUR LONG WORKSHOP AT ENERGY
STORAGE AT FEDERAL FACILITIES
AND TODAY WE HAVE KEN SANDLER,
NICK, DAVE AND ALEX WHO WILL BE
PRESENTINPRESENTING ASK I'LL TURN IT OVER
TO YOU GUYS.
LET ME GET MY PRESENTATION TEED
UP HERE.
AND I HOPE EVERYONE IS DOING
WELL TODAY.
SO, LET'S SHARE.
CAN YOU SEE THAT.
>> YES.
>> EXCELLENT.
>> OK.
SO, I AM KEN SANDLER WITH THE
OFFICE OF FEDERAL HIGH
PERFORMANCE GREEN BUILDINGS.
I'VE BEEN WORKING TO MAKE THE
GOVERNMENT AND COUNTRY MORE
SUSTAINABLE FOR 30 PLUS YEARS
NOW AND MOST OF THAT LAST 20
YEARS FOCUSED ON GREEN BUILDING.
GETTING TO COVER A LOT OF
INTERESTING ISSUES.
ENERGY STORAGE IS THE LATEST ONE
THAT WE'LL TALK ABOUT TODAY.
SO, WHEN PEOPLE ABOUT THE CLEAN
ENERGY TRANSITION THEY LIKE TO
SHOW THESE BEAUTIFUL PICTURES OF
WINDMILLS AND CELLS AND WE LIKE
TO TALK ABOUT EFFICIENCY BUT
SORT OF THE THIRD LEG THAT IS
NOT AS GLAMOUR US BUT EXTREMELY
IMPORTANT IS SORT OF THE WHOLE
DELIVERY AND TRANSMISSION AND
STORAGE OF ENERGY.
THAT IS CRITICAL TO MAKE THIS
TRANSITION SUCCEED AND IT'S
MENTIONED IN THE MAY EXECUTIVE
ORDER 14057.
I'M NOT GOING TO READ ALL THIS
BUT WHEN IT TALKS ABOUT THIS
CONCEPT OF MAKING SURE THAT OUR
ELECTRICITY IS POLLUTION FREE,
24 HOURS A DAY SEVEN DAYS A
WEEK, YOU KNOW, THAT'S VERY
DIFFICULT TO FIGURE OUT BUT
STORAGE IS A ABSOLUTELY
ESSENTIAL PART OF THAT.
MAKING SURE THAT WE GENERATE
ENERGY WHEN THE SUN IS SHINING
AND THE WIND IS BLOWING, ET
CETERA AND WE STORE IT AND THE
INDUCE TREMENDOUS TRENDS AND IT
WAS CREATED BY THE SAME TIME
THAT OUR OFFICE, THE FEDERAL
HIGH PERFORMANCE OFFICE WAS
CREATED HAS 10 FEDERAL AGENCIES,
THE BEST SORT OF PRIVATE SECTOR
AND NGO PEOPLE I COULD FIND IN
TERMS OF GROWN BUILDIN GREEN BUILDING EXPE RTS.
THERE HAVE BEEN A NUMBER OF
SESSIONS AT THIS SYMPOSIUM AND
TALKING ABOUT A NUMBER OF THOSE
ISSUES AND WE HAD ONE ON FEDERAL
AND DECARBONIZATION TWO DAYS AGO
AND THERE'S ONE IN CARBON AND
MATERIALS # A COUPLE DAYS AGO
THAT WAS COVERED.
WE COULD FIND THOSE IN THE
PRESENTATIONS ON-LINE BUT THIS
ADVISORY COMMITTEE IS LIKE OUR
ENERGY POLICY OR RATHER ITCHING
YOU BAITER SO IT'S A STORAGE
THEY TACKLED AND DEVELOPED AND
WE CALL AN ADVICE LER AND THE
FINDINGS FROM THAT DAVID IS THE
CHAIRPERSON OF OUR WHOLE
ADVISORY COMMITTEE AND HE ALSO
WANTS TO SHARE THE TASK GROUP
THAT TACKLED THE ISSUE OF ENERGY
STORAGE AND DAVID IS ONE OF THE
LEADERS AS AN ENGINEER AND THE
DESIGN OF BEST GREEN BUILDINGS
ON THE NET-ZERO ENERGY BUILDINGS
SO WE'LL BE HEARING FROM HIM IN
A BIT ABOUT THE ADVISORY
COMMITTEE'S FINDINGS AND
RECOMMENDATIONS.
FIRST WE'RE HEAL FROM NICK
TUMILOWICZ AND HE IS THE
PRINCIPAL MANAGER LEADING THE
ENERGY UTILITY AND CUSTOMER
RESEARCH INITIATIVES THERE WITH
20 YEARS' EXPERIENCE ON THE
CLIMATE OF DISTRIBUTED ENERGY
RESOURCES IN ADVANCE TECHNOLOGY,
PRODUCTS AND SERVICES.
WE WILL ALSO HEAR FROM ALEX CATE
AN NOT GUINEARINAN ENGINEERING MANAGER THE RE.
AMERESCO IS IN RENEWABLE ENERGY
ASSET OWNER AND OPERATOR AND
WE'LL BE HEARING ABOUT A PROJECT
THAT ALEX AND AMERESCO WORKED ON
ENERGY STORAGE SYSTEMS AT THE
BUILDING IN COURTHOUSE IN
CALIFORNIA.
WE'LL START WITH NICK GIVING US
AN OVERVIEW OF THE FIELD AND
WHERE IT STANDS IN THE TRENDS
AND ALL THAT.
>> YEAH, THANK YOU, KEN.
APPRECIATE IT AND THANK YOU ALL
FOR BEING PRESENT TO HEAR US OUT
AS KEN MENTIONED, MY NAME IS
NICK TUMILOWICZ LEADING RESEARCH
RELATED TO INTERNATIONAL STORAGE
DEPLOYMENTS.
WE LOOK AT TECHNOLOGY AND THE
DIFFERENT PROJECTS THEMSELVES
AND THE ECONOMICS.
TODAY, WE WANT TO TAKE A COUPLE
MINUTES TO SHARE KIND OF A OVER
ARCHING PERSPECTIVE OF THE
POSSIBILITY AND ENERGY FOR
STORAGE ACROSS THE FLEET OF
HUNDREDS IF NOT A THOUSAND
DIFFERENT BUILDINGS ACROSS THE
FEDERAL PORTFOLIO.
A QUICK NOTE IS WE'RE
INTERNATIONAL MONDA NON-PROFIT
ORGANIZATION FOCUSED ON
ADVANCING ENERGY TECHNOLOGIES
THAT ARE SAFE, RELIABLE,
SUSTAINABLE AND AFFORDABLE.
SO THE NEXT SLIDE, PLEASE.
SO, I THOUGHT IT WAS GOOD TO
START AND IDENTIFY WHERE WE ARE
WITH THE DEPLOYMENT OF ENERGY
STORAGE IN THE CONTEXT OF
BUILDINGS TODAY AND ALSO I
IDENTIFY WITH OUR CRYSTAL BALL
WE HAVE, WHERE WE'RE GOING THIS
DECADE.
WE'RE ALREADY ACHIEVING AN
ANNUAL GLOBAL DEPLOYMENT RATE OF
ABOUT 20 GIGAWATTS A YEAR THERE
ARE A LOT OF ITERATIVE PRODUCT
GAMES TAKING PLACE AND WE'LL
HEAR ABOUT WHAT THE VALUE LOOKS
LIKE EVEN OVER TIME SOME ARE 10,
FIVE, AND TWO-YEARS-OLD.
SO A LOT OF EVIDENCE AND GROWTH
AND WE'RE LOOKING ON THE ORDER
OF 14 TIMES GROWTH JUST IN THE
DECADE ALONE.
NEXT SLIDE.
AS WE LIKE TO SAY, AS WE TALK TO
YOU UTILITIES AND THE CUSTOMERS
OF UTILITIES ON A DAILY BASIS
YOU CAN NO LONGER RUN AWAY FROM
ENERGY STORAGE ANYMORE IF YOU
LIVE IN ANY OF THE 50 STATES.
SO THIS IS A INDICATIVE OF WHERE
THE CAPACITY IS GOING OVER THE
NEXT FIVE YEARS AND IF WE LOOK
DOWN THE COAST AND ACROSS INTO
THE DEEP SOUTH AND TEXAS AND SO
THERE'S SIGNIFICANT CAPACITY
THAT ARE TODAY AND A SIGNIFICANT
FORECAST TO SEE THAT DEPLOYED
AND WE DON'T WANT TO DISCOUNT
WHAT IS HAPPENING ON THE OTHER
COAST AND NEW YORK STATE,
FLORIDA, VIRGINIA, AND WHAT IS
HAPPENING IN THE MIDWEST WITH
LMI SO, WHEN IT COMES TO HAVING
A FLEET OR A PORTFOLIO OF
BUILDING TO EVALUATE, THESE ARE
REALLY GOOD KIND OF GUIDE POSTS
AND MARKERS TO LOOK TO SEE
REGIONS, STATES THAT HAVE
REASONABLY ESTABLISHED AND GREG
PROCESSES TO MAKE IT MORE
EFFICIENT TO HAVE IT INSTALLED
AND SO SIGNIFICANT GROWTH GOOD
GUIDELINES FOR YOU TO LOOK AT
FROM A FEDERAL BUILDING ASK
INTEGRATION AND BATTERY
INTEGRATION PERSPECTIVE.
AND THEN, LAST SLIDE ON MARKET
ADDITION.
THIS IS ZOOMING IN REALLY
SPECIFICALLY TO COMMERCIAL
INDUSTRIAL MARKET SEGMENT.
THAT WAS THAT DARK BLUE-LINE
THAT WE SAW IN THE OPENING SLIDE
AND SO WE'RE APPROACHING ABOUT
400 MEGAWATTS DEPLOYED PER YEAR
JUST FOR COMMERCIAL ENERGY
STORAGE AND THE U.S.
WE'LL START OVER THE NEXT FIVE
YEARS TO SEE THAT MORE THAN
DOUBLE.
SO, THIS, I'D LIKE TO SAY, HAS
BEEN COMMERCIAL INDUSTRIAL WITH
VERY SAVVY FACILITY ENERGY
MANAGERS, IS ONE OF THE HARDEST
CUSTOMERS TO, I GUESS, DEVELOP
AND HAVE A PRO-FORMA AND A
REASONABLE BUSINESS CASE.
WE'RE STARTING TO SEE THIS
UPTICK BECAUSE THOSE SAVVY
CUSTOMERS ARE STARTING TO
RECOGNIZE THAT THERE'S NOT JUST
ONE OR TWO DRIVERS, WHEN IS THAT
BUSINESS CASE AND PRIMARY DRIVER
HAS BEEN SAVINGS.
THERE'S AN ENERGY COMPONENT AND
A DEMAND COMPONENT.
THE DEMAND COMPONENT CAN BE
ADDRESSED BY PUTTING IN A
FLEXIBLE RESOURCES THAT CAN ACT
AS A LOAD AND ACT AS A GENERATOR
AND IT CAN CHARGE AND IT CAN
DISCHARGE TO REALLY SHAVE THOSE
AND THE BILL.
IT'S HELPFUL OF A BILL
PERSPECTIVE AND IMAGINE DOING
THAT ON ONE BUILDING AND A
THOUSAND BUILDINGS AND YOU CAN
SEE SIGNIFICANT SAVINGS.
THE OTHER THING FROM A LOCAL
BUILDING PERSPECTIVE, IS BACK UP
POWER AND SO BACK UP POWER
TRADITIONALLY TODAY IS DONE WITH
GAS AND DIESEL GENERATOR AND THE
KIND OF COSTS AND THE DIFFERENT
METHODS THAT CAN BE EMPLOYED TO
PROVIDE CLEAN, QUIET BACK-UP
POWER TO THE FACILITY OR A
MARSHAL FACILITY GOOD WAYS TO
OPTIMIZE THIS ASSET TO PROVIDE
DEMAND CHARGE REDEMPTION AND
BACK UP POWER AND THAT IS
IMPORTANT TODAY BECAUSE THERE'S
A SIGNIFICANT NEED AS WE ARE
STARTING TO EXPERIENCE SOME PAY
BACKS AND RAGE AND IF WE LOOK AT
THAT ACROSS THE WHOLE FLEET AND
HUNDREDS OF DIFFERENT ASSETS AND
NOW WHAT LEVELS CA LEVELS CAN BE TERMED
AND THE MODELING AND ANALYSIS
PERSPECTIVE.
NEXT SLIDE?
SO JUST A QUICK NOTE.
THIS IS A BUSY SLIDE BUT THERE'S
FOUR LANES AND WHAT WE SAW IN
TERMS OF TECHNOLOGY, COMMERCIAL
VIABILITY IS REALLY HAPPENING AT
THE TRANSMISSION, GENERATION,
DISTRIBUTION AND SUB-STATION
AREA.
THAT'S WHERE I SEE THE BIG
CAPACITY NUMBERS TODAY AND THAT
TECHNOLOGY IS FUNDAMENTALLY THE
NAME AND THE VALUE THAT CAN BE
OPTIMIZED AND OBTAINED IS GOING
TO INCREASE AS YOU GET CLOSER
AND CLOSER TO THE LOAD SOURCE IN
OTHER WORDS YOU CAN NIP IT IN
THE BUD IF YOU DROP THE BATTERY
AND SOLVE FOR LOCAL RENEWABLES
AND YOU CAN SOLVE FOR ELECTRIC
VEHICLE ET CETERA AND TAP INTO A
LARGER SET OF VALUE STREAMS.
THIS IS NOT EXHAUSTING LIST BUT
A GOOD GUIDELINE.
SO, WE HAVE AN IMAGE WHERE I'M
LOCATED IN DENVER COLORADO
FEDERAL BUILDING AND
HISTORICALLY WE LOOK AT BUILDING
AND HOW WE CAN OPTIMIZE ENERGY
EFFICIENCY WITH LIGHTING AND
RETRO FITS AND HVAC IMPROVEMENTS
MOVING TO HEAT PUMPS THROUGH HOT
WATER HEATING AND ADDING
CONTROLLABLE LOADS AND ALL OF
THESE ARE FUNDAMENTAL WITH
SAVING THE COSTS WITH A BUILDING
AND ACROSS MANY.
ADDITIONALLY, WE HAVE
SIGNIFICANT MARKET
TRANSFORMATION HAPPENING AND
THERE'S A LOT OF WIND REELING IN
FROM SO SOLAR AS WE TALKED
ABOUT?
THE SOUTHWEST, ET CETERA AND
THAT NEEDS TO BE CONSIDERED WITH
OTHER ELECTRIFICATION ASPECTS
LIKE AT THIS FACILITY AND MAYBE
LARGER FLEETS THAT NEED TO BE
SUPPORTIVE AND AND WHAT YOU SEE
ON THE TOP RIGHT WITH THE
FLEXIBLE RESOURCE LIKE ENERGY
STORAGE IT'S A BUFFER AND WITH
THE GENERATION THROUGH MOBILE
AND THEY CAN SUPPORT AND NEW
LOAD GROWTH THROUGH ELECTRIC
VEHICLES, FLEETS, ET CETERA.
THERE ARE TOOLS THAT WILL BE
USED BY EVERYBODY ON THIS CALL
AND NOT ON THIS CALL TODAY,
AVAILABLE, FREE, TOOLS SO YOU
CAN START TO UNDERSTAND WHAT
BUILDINGS CAN PROVIDE VALUE AND
HOW ENERGY BE OPTIMIZED TO
SUPPORT YOUR PORTFOLIO
BUILDINGS.
>> KEEPING TO YOUR TIME.
VERY WELL DONE.
>> KEN, CAN I INTERRUPT ONE
SECOND, PLEASE.
I JUST REALIZED, I WANT TO SEND
A REMINDER TO EVERYONE THAT IF
YOU HAVE A QUESTION, THERE'S A
LINK AT BOTTOM OF YOUR SCREEN.
YOU MAY NEED TO SCROLL DOWN.
SEND YOUR QUESTIONS AS THEY COME
UP IN YOUR MIND AND WE'LL BE
GETTING TO THOSE AT END.
FEEL FREE TO SEND THOSE
QUESTIONS.
>> THANK YOU FOR THAT REMINDER.
AS NICK SAID, THERE'S A RANGE OF
STORED SOLUTIONS FROM THE GRID
TO THE BUILDING SIDE AND NEXT
WE'LL HEAR FROM DAVID WHO HELPED
LEAD THAT TEAM LOOKING AT THE
ISSUE OF STORAGE IN FEDERAL
FACILITIES FOR THE BUILDING
ADVISORY COMMITTEE.
ALL YOURS, DAVID.
>> THANK YOU, KEN.
I'M JUST GOING TO REDO THE MAIN
POINTS.
THIS IS OUR COMMITTEE THE
ADVISORY COMMITTEE.
NEXT SLIDE.
THESE ARE THE PARTICIPANTS THE
COST OF BATTERIES HAS BEEN
FALLING DRAMATICALLY AND WE
UNTIL THENOTICED THEY'RE STARTING TO BE
DEPLOYED AS ENERGY STORAGE MANY
OF SIMILAR TO PV15 YEARS AGO THE
COST FELL DRAMATICALLY AND YOU
ARE SEEING THEM USED ON
BUILDINGS SO, THE AFFECT GROUP
PUT TOGETHER OUR THOUGHTS ON
WHAT SHOULD WE DO SO WE DECIDED
TO STUDY THIS AND SEE WHAT THE
BENEFITS ARE AND IF IT LOOKS
GOOD THEN TO LOOK AT FINANCING
OPTIONS AND DEVELOP
RECOMMENDATIONS SO OUR FINDINGS
WERE, NEXT SLIDE, THE FIRST
THING IS NICK TALKED ABOUT
RENEWABLES ARE BECOMING MORE AND
MORE COMMON.
WE HAVE THIS DRIVE TO
DECARBONIZE THE GRID BUT
COMMERCIALLY WITH THE VERY KIND
OF TIME-SENSITIVE SO YOU GET
LOTS OF RENEWABLE IN THE SO YOU
NEED TO TAKE THE EXCESS ENERGY
THAT YOU ARE GENERATING AND
STORING IT AND USING IT LATER ON
IN THE DAY WHEN BUILDINGS NEED
IT BUT THERE'S NO RENEWABLES
AVAILABLE.
NEXT SLIDE.
WE FOUND THREE TECHNOLOGIES AND
I WANT TO COVER TWO OTHERS ONE
QUICKLY.
ONE IS BILLED WATER STORAGE AND
IT'S BEEN AROUND A LONG TIME AND
STILL IN USE TODAY.
SO, YOU KNOW, YOU MADE CHILD
WATER FROM CARBON ON THE GRID IS
SLOW AND STORE IT AND USE IT
LATER ON IN THE DAY WHEN CARBON
ON THE GRID IS HIGHER AND IT'S
ACTUALLY A VERY LOW COST
SOLUTION AND THE DOWNSIDE IS IT
TAKES UP LOTS OF SPACE AND ONE
OF THE ADVANTAGES IS WHEN YOU DO
THAT, THERE'S NO IMPACT ON
THERMAL COMFORT IN THE BUILDING
AND IN THE BUILDING AND ANYTHING
LIKE THAT AND THIS IS A PROJECT
IT'S MICROSOFT'S CAMPUS AND THE
THERE'S BLUE TANKS ON THE ONLY
HA CHILD WATER STORAGE TANKS SO
IT TAKES SPACE AND AND YOU HAVE
OR PUTTING LARGER TANKS INTO
OVER SIDE TANKS TO STORE EXCESS
ENERGY AND THIS IS BRAND NEW
TECHNOLOGY FOR DOMESTIC HOT
WATER.
THE DOWNSIDE, I HAVEN'T SEEN
LOTS OF REAL FIFTH LARGE STORAGE
TANKS AND THE INTERESTING THING
IS BTL IS PARTNERING WITH THE
ADVANCE WATER HEATERS
INITIATIVES TO TAKE SNAPS TO
SUPPORT UTILITIES BY MAKING HOT
WATER AT TIMES WHEN IT'S
ADVANTAGEOUS TO THE GRID.
SO BY FAR, THE LARGEST GROWING
AND MOST VERSATILE AND FOR US
MOST INTERESTING STORAGE
TECHNOLOGY THAT WE'RE LOOKING AT
WAS LITHYUM EYE O EYE ION BATTERIES AND
THE SCALE FROM A SOLAR
CALCULATOR TO A RESIDENTS ALL
THE WAY UP TO UTILITY SCALE AND
THEY CAN DIRECTLY REDUCE YOUR
ENERGY BILL THROUGH AS NICK WAS
SAYING, DEMAND AND TIME OF USE
CHARGES.
WHAT YOU SEE THERE IS YOU COULD
SEE A COUPLE DAYS IT WAS CLOUDY
AND YOU COULDN'T FULLY CHARGE
THE BATTERY AND IT STARTED
RUNNING DOWN BUT THEY MANAGED TO
GET THROUGH THE WHOLE MONTH
WITHOUT LOSING POWER SO, YOU
KNOW, THAT COULD ELIMINATE OR AT
LEAST REDUCE THE NEED FOR FOSSIL
FUEL GENERATOR IN A SITUATION
LIKE THAT.
SO, WE ALSO WANTED TO LOOK AT
KIND OF WHAT ARE THE BARRIERS OR
THINGS THAT ARE CONCERNS WITH
LITHIUM EYE O EYE IO BATTERY.
WE WANT TO TALK ABOUT FIRE
SAFETY.
IT COMES UP QUITE A BIT WHEN WE
LOOK AT THIS.
AND THE GOOD NEWS IS THERE'S NEW
CODES COMING OUT THAT ARE
ADDRESS NORTH ISSUE AND IT'S
SIMILAR TO PHOTOS WHEN THEY CAME
OUT WITH LOTS OF CONCERNS
RELATED TO FIRE ISSUES AND HOW
FIREMEN IT'S SIMILAR FOR LITHIUM LITHIUM
ION BATTERIES AND THEY HAVE A
CLEACHAIN REACTION THAT CAUSE A
RUN-AWAY FIRE THAT IS DIFFICULT
TO PUT OUT.
ANOTHER CONCERN IS WHAT DO YOU
DO AT END-OF-LIFE?
I GET ASKED THAT QUITE A BIT AND
THERE'S STARTING TO BE A
RECYCLING INDUSTRY BUT THAT'S
PRETTY NEW AND THERE'S A NEW
FACTORY THAT WAS PUT UP IN
CARSON CITY CLOSE TO THE TESLA
MEGA FACTORY IN NEVADA AND
ANOTHER ONE BEING PUT UP IN
UPSTATE NEW YORK SO THAT
INDUSTRY IS STARTING TO BE
ESTABLISHED BUT IT'S GRAND NEW
AND THE LAST CONCERN WAS WHERE
DOES THE LAW MATERIALS COME FROM
AND A LOT OF COMING FROM CHILE
AND THE GOOD NEWS IS THAT PEOPLE
ARE LOOKING FOR OTHER SOURCES SO
HOPEFULLY THEY'LL FIND OTHER
SOURCES.
I READ SOMEWHERE THAT THEY ARE
LOOKING AT A SOURCE IN
CALIFORNIA ACTUALLY FOR LITHIUM.
SO, YOU KNOW, WHAT CAN YOU DO
WITH THESE APPLICATIONS.
WHAT ARE THE USES.
UTILITY BILL IS A KEY ONE.
THEY PROVIDE STAND-BY POWER.
THE MILITARY IS USING THEM FOR
ENERGY SECURITY.
ALEX IS TALKING ABOUT HIS
PROJECT BUT HIS FIRM HAS DONE
PROJECTS AT MILITARY BASES THAT
ALLOW SYSTEMS TO ISLAND AND RUN
OFF GRID AND OUTAGES AND NATURAL
DISASTER SO, THAT IMAGE IN THE
MIDDLE IS A COMMUNITY CENTER IN
CALIFORNIA THAT IS UNDER
CONSTRUCTION RIGHT NOW AND IT'S
BEEN DESIGNED TO BE A DISASTER
RECOVERY CENTER SO YOU CAN HAVE
A MAJOR EVENT AND BE ABLE TOLL
RUN THIS BUILDING INDEPENDENTLY
AND PROVIDE FOOD, SHOWERS,
HOUSING FOR DISPLACED RESIDENTS
ET CETERA, ET CETERA.
IT'S A COMMAND CENTER FOR THE
POLICE AND FOR EMERGENCY
MEDICAL, ET CETERA, ET CETERA.
AND THE LAST ONE, THIS IS QUITE
INTERESTING IS AVOIDING
INFRASTRUCTURE UPGRADES AND
WE'RE USE PARTICULAR IN A COUPLE
OF APPLICATIONS BUT THIS IMAGE
OPT BOTTOM IS A PROJECT THAT WAS
DONE IN HAWAII THAT I WORKED ON
THAT WAS FOR THE SCHOOL
DISTRICTS IN HAWAII AND THEY
NEEDED TO PUT AIR CONDITIONING
IN AND THE BUILDINGS WERE HAVING
IMPACTS FROM CLIMATE CHANGE AND
HAVE HEAT WAVES AND THEIR GRIDS
JUST COULDN'T TAKE THAT EXTRA
DEMAND FOR ENERGY AND SO A
CHEAPER SOLUTION ENDED UP BEING
PUTTING BATTERIES CLOSE TO THE
CLASSROOM SO IT'S EXACTLY WHAT
NICK WAS TALKING ABOUT AND YOU
KNOW, THE SO ENERGY BILL
REDUCTION AND GRID SUPPORT AND
THE ABILITY TO IMPACT AND REDUCE
CARBON EMISSION AND RESILIENCE
AND OF COURSE, ONE THING I THINK
THAT IS IMPORTANT IS FOR THE
FEDERAL GOVERNMENT TO SHOW
LEADERSHIP IN SHOWING US WHERE
WE SHOULD WE BE GOING IN THE
FUTURE AND SOME OF THE
CHALLENGES OF THESE SYMPTOMS IS
BOY YOU CAN RUN DELAYS IN THE
PLANNING PROCESS AND LOCAL
PLANNERS, ET CETERA AND THEY'RE
NOT USED TO SEE BATTERIES AND
BUILDINGS AND I'VE HAD PERSONAL
EXPERIENCE WITH FIRE MARSHALS
AND PEOPLE THAT ARE LIKE WHOA,
WAIT, WAIT, WAIT, LET'S TALK
ABOUT THIS AND AS FAR AS
INCENTIVES AND POLICIES IT'S
VERY INCONSISTENT AND CITY TO
CITY AND STATE TO STATE AND OF
COURSE, ANY CONTROL SYSTEMS THAT
HAS CONCERNS ABOUT CYBER
SECURITY AND THESE SYSTEMS HAVE
SOPHISTICATED CONTROLS.
NEXT SLIDE.
ONE ISSUE THAT WE TALKED ABOUT
IS PROCUREMENT.
THIS IS NOT MY AREA OF EXPERTISE
SO THIS IS A LIST THAT THE TEAM
CAME UP WITH OF DIFFERENT WEIGHS
THEY CAN PROCURE THESE SYSTEMS
AND THAT'S ALL I CAN SAY ABOUT
THEM.
NEXT SLIDE.
WHAT WERE OUR RECOMMENDATIONS.
ONE IS TO CONSIDER ENERGY
STORAGE ON THE PROJECTS GOING
FORWARD AND ANOTHER WAS A
ROADMAP TO HELP GSA STAFF
DEVELOP A STEP-BY-STEP PROCESS
OF HOW YOU ANALYZE AND MAKE
THOSE DECISIONS OF WHETHER OR
NOT IT MAKES SENSE TO ENERGY
STORE ON A PROJECT.
THE THIRD RECOMMENDATION WAS TO
LOOK FURTHER INTO THE NON
FINANCIAL BENEFITS SUCH AS
DISASTER RECOVERY OR TO GET A
BETTER HANDLE ON THAT AND
ANOTHER RECOMMENDATION WAS FOR
CASE STUDIES AS SUCCESSFUL
PROJECTS TO WHAT WERE THE
LESSONS LEARNED AND ANOTHER
SUPPORT THE RECYCLING INDUSTRY
TO TRACK BATTERY EVOLUTION
YESTERDAY I GOT AN E-MAIL FROM
SOMEONE I KNOW THAT SAID TESLA
SOMEONE HAD COME OUT RETROFITTED
A TESLA CAR THAT DOUBLED THE RANGE
OF THE CAR SO THERE'S BATTERY
TECHNOLOGY COMING OUT ALL THE
TIME.
THIS LAST SLIDE IS JUST CASE
STUDIES THAT ARE IN THE ADVICE
LETTER SO YOU CAN LOOK AT ADVICE
LETTER AND IF YOU WANTED YOU
CAN LEARN MORE ABOUT SOME OF
THESE MICRO GRIDS THAT HAVE
ALREADY BEEN DONE.
THAT'S IT.
THANK YOU.
>> THAT'S THE PERFECT SEGWAY
BECAUSE WE DID NOT FIND A LOT OF
CASES OF BATTERY STORAGE IN
FEDERAL GOVERNMENT.
MORE IN DoD.
VERY FEW ON THE CIVILIAN SIDE SO
WE HAD A NICE CASE STUDY ON ONE
OF THEM AND THAT'S WHAT YOU ARE
ABOUT TO HEAR FROM ALEX.
ANY TIME YOU ARE READY, ALEX.
>> ALL RIGHT.
SO I'M GOING TO TALK ABOUT THE
BATTERY SYSTEM WE PUT IN THE
SHORT THOROUGH BUILDING AND
COURTHOUSE IN SAN DIEGO,
CALIFORNIA.
THIS WAS DONE AS PART OF AN ESPC
PROJECT AND IT WAS DEVELOPED IN
2015 AND 2016 AND THIS BATTERY
WAS OPERATIONAL IN JANUARY OF
2018.
SO WE'RE GOING TO GIVE A
OVERVIEW CASE STUDY AND
PERFORMANCE UPDATE ON THE
BATTERY AND HOW IT SUPPORTS GSA
NOW AND POSSIBLY IN THE FUTURE.
SO THIS IS A 750-KILOWATT
BATTERY, 1425KWT AND LITHIUM ION
THIS WAS THE FIRST GENERATION
POWER PACK.
WE BEGAN COMMERCIAL OPERATION IN
JANUARY OF 2018 AFTER A COUPLE
OF YEARS OF DEVELOPMENT AND
CONSTRUCTION.
IT'S PART OF THE REGION WIDE
ESPC PROJECT AND THIS IS JUST
ONE OF ALMOST 50ECMs AS PART
OF THIS PROJECT OBJECT ON THE
FEDERAL BUILDINGS THROUGH OUT
THE SOUTHWEST.
THIS BEST IS BATTERY RESTORE AGE
SYSTEM IS RIGHT NOW IT'S JUST
FOR DEMAND REDUCTION SO COST
SAVINGS ON THE DEMAND THAT CUTS
THE BUILDING'S PEAK CUTS IT AT
NIGHT WHEN THE POWER IS CHEAPER.
WE CHARGED THE BATTERY WHEN IT'S
CHEAPER AND DISCHARGED THE
BATTERY WHEN THE POWER IS
EXPENSIVE.
TRYING TO EVEN OUT THE PEAK.
THIS PARTICULAR PHOTO REALLY
DIDN'T HAVE A VERY PEAKY LOAD TO
ACTUALLY HAD TO UP SIZSIZE THE
BATTERY KILOWATT HOUR TO GET THE
SAME DEMAND REDUCTION AND I'LL
SHOW ON THE GRAPH.
IT CONSISTS OF DC BATTERY PACKS,
THE INVERTER POWER CONDITIONING
SYSTEM AND A SITE MASTER
CONTROLLER AND THIS CONTROL SER
WHAT IS HART AND READS THE
ENERGY OF THE BUILDING AND
TRACKS THE BUILDING AND READS
THE WEATHER AND AND ALL THAT HAD
TO BE VETTED THROUGH GSA TO
VALIDATE CYBER SECURITY BECAUSE
IT'S GETTING INFORMATION FROM
THE BUILDING AND THE BUILDING'S
ELECTRICAL USAGE AND THAT IS
BEING SENT OUT TO THE THIRD
PARTY TO DO THE TROLLS ON THE
BATTERY AND ALL OF THIS, THE
BATTERY PACKAGE HAVE A
INTEGRATED LIQUID THERMAL
MANAGEMENT KEEP THEM COOL AND
RUNNING.
SO, ONE OF THE CHALLENGES HERE,
THIS WAS BEING DEVELOPED IN 2015
AND 2016 WHICH IS FAIRLY EARLY
AS FAR AS BUILDING FIRST STEP
WAS INTEGRATION WITH SDG&E WITH
UTILITY AND THIS IS INSTALLED
BEHIND THE METER AND ALL ON GSA
SIDE OF THE METER AND WE INSTALL
NEW UTILITY GRADE METERING TO
MONITOR THE DAILY BATTERY STATUS
BECAUSE THIS BEING PART OF AN
ESPC THE SAVINGS ARE GUARANTEED
AND WE HAVE TO READ THIS AND
PRESENT QUARTERLY REPORTS.
I TALKED ABOUT THE PROGRAM
CONTROL SYSTEM ON THE BATTERY SO
WE HAVE TO WORK CLOSELY WITH THE
SDG&E TO MAKE SURE IF RATE
STRUCTURE CHANGES IN THE PROGRAM
TO KNOW THE CURRENT RATE
STRUCTURE AND RIGHT NOW WE HAVE
A EXISTING TIME OF USE RATE AND
WORKING CLOSELY WITH UTILITY WAS
KEY HERE.
THE SDG&E WAS GOOD TO WORK WITH
IN SOUTHERN CALIFORNIA.
ONE THING TO NOTE IS THE
COMMUNICATIONS SYSTEM IS NOT ON
THE GSA'S NETWORK AND IT WOULD
HAVE COMPLICATED THE CYBER
SECURITY PORTION OF THE THIS
EVENING FURTHER AND IT JUST
WASN'T NEEDED SO COMMUNICATE
USING A 4G CELLULAR MODEM READS
THE ELECTRIC DATA FROM THE
BUILDING AND SENDS THAT OUT
USING A 4G MODEM AND THAT WAS
STILL VETTED THROUGH IT SECURITY
AND TESLA SIGNED A REMEDIATION
AGREEMENT ON THEIR SOFTWARE ON
THIS BATTERY PACKAGE SO IT'S
SOMETHING THAT HAS BEEN DONE FOR
TESLA AND ESPECIALLY MILITARY
THE CYBER SECURITY CAN BE
CRITICAL AND IT'S A CRITICAL
COMPONENT.
NEXT SLIDE.
THIS IS INSTALLED AND WE HAD TO
CUSTOM CONFIGURE THIS TO FIT IN
THE COURT YARD SPACE AVAILABLE
THIS BEING IN DOWNTOWN SAN DIEGO
SPACES AT A PREMIUM AND MANY OF
THE BATTERY SYSTEMS ARE
CONFIGURE ABLE IN DIFFERENT
CUSTOM SHAPES AND SOME DO COME
IN BOXES AND IT'S IMPROVING
WHERE WE CAN CUSTOM FIT
BATTERIES WHERE THEY CAN FIT.
NEXT SLIDE.
AS FAR AS THE SAVINGS FOR THIS
BATTERY, THIS WAS OUR FIRST
BUILDING BATTERY BESIDES A FEW
TEST PROJECTS SO WE CAME UP WITH
A TOOL TO QUANTIFY THE SAVINGS.
AND FIX THE 15-MINUTE HISTORICAL
INTERVAL DATA LOOKING AT WHAT
THE BATTERY CAN DO AND WE HAVE A
PROGRAM THAT CALCULATES THE
MONTHLY SAVINGS TO BE EXPECTED
AND SO FOR WE'VE BEEN RIGHT ON
AND THESE GRAPHS BELOW US SHOW
USING THIS PROGRAM TO HELP SIZE
THE BATTERY, CAN SEE ON THE LEFT
THAT WOULD BE IT WAS
PARTICULARLY PEAKY AND THEY HAD
SOME PEAKS COOLING LOADS IN THE
AFTERNOON AND IF THAT WAS A TO
GET SAVINGS WE NEEDED
1400-KILOWATT HOURS SO AGE
BECAUSE THE LOAD WAS NOT PEAKY,
APPROXIMATE PEAKED IN THE
MORNING AND REAL SEE HUNG IN
THERE NEAR THE PEAK ALL
AFTERNOON FOR COOLING AND SO
IT'S A CRITICAL ANALYSIS OF THIS
OVER MULTIPLE YEARS OF INTERVAL
DATA IS IDEAL AS FAR AS SIZING
THE CORRECT BATTERY.
OPERATION OF MAINTENANCE IS
ANOTHER CRITICAL PART OF
BATTERY.
THEY'RE NOT HIGH MAINTENANCE
SYSTEMS BUT WE'RE PROVIDING THE
O AND M PAIN TINNANCE FOR 25
YEARS AND INCLUDES ANNUAL WE'RE
GOING TO REFILL AND REPLACE THE
REFRIGERANTS AND THE COOLING AND
WE PLAN TO REPLACE THE BATTERY
CELL START NORTH YEAR 11 TO
MAINTAIN CAPACITY FORT LIFE OF
CONTRACT AND IT'S IMPORTANT FOR
A GUARANTEED CONTRACT LIKE AN
ESPC WE LOOK AND MAINTAIN THE
CAPACITY FOR THE LIFE OF IT AND
ALSO WE HAVE A FULL M AND V,
EVERYONE HERE IS FAMILIAR WITH
THE PROJECTS AND THE SAVINGS ARE
GUARANTEED SO WE HAVE TO DO A
MEASUREMENT AND VERIFICATION AND
THIS WAS OPTION B AND WE ARE
DIRECTLY MONITORING THE KWH
OUTPUT OF THIS BATTERY AND
PRESENT NORTPRESENTING FOR THE FEW YEARS.
EVERYTHING IS TRENDED AND SHARED
WITH THE GSA AND THE DATA SHOWS
HOW MUCH CAPACITY IS DEPLOYED
AND HOW LONG AND THE NUMBER OF
TIMES THE BATTERY WAS DEPLOYED.
NEXT SLIDE.
ANOTHER IMPORTANT COMPONENT THAT
WAS AVAILABLE IN CALIFORNIA AND
IN SOME OTHER PARTS ARE UTILITY
INCENTIVES THAT HELP PAY FOR THE
BATTERY AND IN CALIFORNIA
THERE'S THE SELF-GENERATION
INCENTIVE PROGRAM SGIP AND THIS
PROJECT RECEIVED $570,000 IN
INCENTIVE FUNDING FROM THE STATE
AND WE HAVE 50% OF THAT UP FRONT
AND 50% OF THAT IS BEING PAID
OUT STILL IS OVER THE FIVE YEARS
AND MONTHLY PAYMENT BASED ON
PERFORMANCE.
IT'S PART OF ESPC AND WE MANAGED
THAT APPLICATION FOR GSA AND
THAT WAS SIGNIFICANT ECONOMIC
DRIVER OF ENERGY STORAGE IN
CALIFORNIA.
THE STATUS OF INSTALLATION.
IT'S BEEN GOING SINCE
JANUARY 2018.
OVER THROW YEARS AND WE HAVE
99.8% UP TIME AND WE'RE
AVERAGING ON THE ON PEAK
REDUCTION WE'RE AVERAGING A
DAILY PEAK PRODUCTION OF 1886KW
WITH ONE REALLY GOOD DAY WE
SAVED 582KW OF PEAK.
ON THE NON COINCIDENCE DEMAND
REDUCTION, THE UTILITY STRUCTURE
THERE SAY LITTLE DIFFERENT AND
IT'S TWO PEAK CHARGES.
WE'RE AVERAGING 214 KW
PRODUCTION WITH A MAX OF 400KW
SO THE BATTERY IS PERFORMING
VERY WELL AND IT REALLY EXCEEDED
EXPECTATIONS.
THIS WAS THE JANUARY 24th,
THIS SHOWS THE DATA.
THE BLUE-LINE IS THE ACTUAL
DEMAND DATA THAT WE WERE CHARGED
FROM SDG&E EX THE BATTERY KEPT
IT FROM SEEKING AND AT NIGHT THE
BATTERY IS CHARGEING AND IT'S
SMART SAVING A TON OF MONEY ON
THE DEMAND CHARGES.
TODAY'S BENEFITS AND THE COST OF
THE SAVING THE MONEY AND THE
FUTURE BATTERY AND THIS WAS A
FAIRLY EARLY ADOPTION ONE ARE
ADJUSTING TO CHANGING RATE
TARIFFS SO BEYOND JUST DEMAND,
IF WE GET INTO USING IT FULL
TIME OF USE CONSUMPTION RATE THE
BATTERY CAN HELP WITH THAT AS
WELL.
AND THE BATTERY IS ADAPTABLE
OVER TIME AND ALSO DEMAND
RESPONSE PROGRAMS.
THIS BATTERY IS NOT CURRENTLY
SET UP TO DO DEMAND RESPONSE BUT
IF THEY START OFFERING SAY GOOD
VALUE DEMAND RESPONSE PROGRAM,
WE CAN USE THE BATTERY TO TAKE
SOME OF THE LOAD ON A CALL FROM
THE UTILITY TO REDUCE DEMAND
IMMEDIATELY.
NOW ALSO IN THE FUTURE THIS
BATTERY COULD BE ADAPTED TO
INCLUDE A MICROGRID AND THE
BUILDING HAS PV ON THE ROOF
ALREADY THAT WE INSTALLED AS
PART OF THE ESPC AND WE DO NOT
HAVE MICROGRID ON THIS PROJECT
AND THE ECONOMICS DIDN'T SUPPORT
IT AT THE TIME YEARS AGO BUT IF
THE FUTURE ANOTHER PHASE OR
SEPARATELY IF GSA WANTS TO
INCLUDE A MICROGRID TO HELP WITH
RESILIENCY AND HELP THE BUILDING
ISLAND IN A BLACKOUT SCENARIO,
THIS BATTERY CAN BE ADAPTED TO
SUPPORT THAT.
NEXT SLIDE.
AND I THINK DAVID REALLY COVERED
THIS SLIDE, HOW ENERGY STORAGE
CAN SUPPORT GSA AND REALLY TALK
TO COST SAVINGS, RESILIENCY AND
IT'S A KEY COG IN THE
OBJECTIVES.
WE CAN USE BATTERIES TO INSTALL
MORE PV AND IT'S NOT THIS SHORT
CASE IN THIS ONE BUT IN THE
FUTURE THAT'S HOW THESE REALLY
ARE GOING TO BE USED IT LOOKS
LIKE.
AND THERE ARE FACTORS TO
CONSIDER ON THIS CASE STUDY IT'S
NOT OVER STORAGE PROJECT IS THE
SAME.
IT TOOK A LOT OF PLANNING
ANALYSIS TO GET THIS BATTERY TO
WORK AND TO IDENTIFY THE
ECONOMICS TO FULL EY FULLY QUANTIFY THE
SAVINGS.
WE HAVE TO LOOK AT THE SYSTEM
LIFE.
IT'S IMPORTANT LOOKING AT FULL
ECONOMICS AND THE COMMUNICATIONS
AND CONTROL IN CONJUNCTION WITH
CYBER SECURITY WAS A BIG PART OF
THIS AND SLOWED DEVELOPMENT DOWN
SIGNIFICANTLY AND THAT WILL GET
STREAMLINED AS WE GO FORWARD AND
AS CODES AND THINGS GET
UNDERSTOOD BETTER ON BATTERIES
LIKE THAT LIKE THEY HAVE ON PV
LIKE DAVID MENTIONED SAME WITH
THE SAFETY AND SAFETY ASPECTS
AND MAKING SURE FIRE PROTECTION
AND SPRINKLERS AND EVERYTHING IS
NEEDED AND CODES ARE BEING STILL
FORMED ON BATTERIES FOR THIS.
LOOKING AT INCENTIVES.
IT'S A BIG PART OF GETTING THESE
TO PAY BACK AND UTILITIES OFFER
RATE AND INCENTIVES AND SOME
DON'T IN OTHER PARTS OF THE
COUNTRY AND AS THINGS MOVE IN
THE RIGHT DIRECTION WITH
DECARBONIZATION UTILITIES WILL
GET ON BOARD MORE AND MORE AND
MAKE BATTERIES A BETTER SCENARIO
FOR BA PAY BACK AS WELL.
I THINK THAT'S IT.
THANK YOU, VERY MUCH.
THANK YOU TO ALEX AND ALL THE
PRESENTERS YOU STAYED ON TIME
AND STAYING CONCISE AND GETTING
THE INFORMATION OUT.
SO, I'LL STOP SHARING HERE AND
AS DIANA SAID, IF PEOPLE HAVE
QUESTIONS, YOU CAN PRESS THE
LIVE FEEDBACK BUTTON AND THAT
WILL SEND T LET ME SEE IF I CAN
PULL SOME OF THESE QUESTIONS OUT
AND HOW KENNER GEE MANAGERS WORK
WITH FACILITY STAKEHOLDERS ON
INTEGRATING ENERGY STORAGE
EFFORTS WITH EXITING OR PLANNED
EPS BACK UP SYSTEMS?
REFERRING TO THE CARBON PAY BACK
MORE THAN THE DOLLARS.
ANYONE WANT TO TACKLE THAT?
>> NICK ACTUALLY POSTED A
COMMENT ON THAT.
I'LL FOLLOW WITH WHAT I SAID.
>> YEAH, WE BOTH RESPONDED TO
THIS COMMENT HERE BUT I -- SO I
THINK IT'S AN IMPORTANT TO NOTE
THAT UPS IS A POWER QUALITY-TYPE
OF OFFERING AND SO THERE ARE
MORE COST EFFECTIVE WAYS TO
ADDRESS POWER QUALITY ISSUES AND
BUILDINGS.
IF YOU ARE GOING TO ALREADY DO
THE MODELING AND THE ANALYSIS AS
ALEX DID IN SAN DIEGO, ON THE
SHORTS BUILDING AND YOU
DETERMINE THATTEN ARE GOOD
EVENINTHAT ENERGY STORAGE ISGOING TO WORK YOU CAN ADD THAT
TO THE EQUATION AND NOW IT LOOKS
A LITTLE BIT BETTER.
UPS IS VERY SMALL AND VERY QUICK
REACTING, BIG BATTERIES CAN ALSO
DO SOMETHING SIMILAR BUT THEY'RE
NOT SPECIFICALLY DESIGNED FOR
THAT.
YOU CAN VALUE AND ADD TO THAT
AND I REALLY LIKE DAVID, YOUR
POINT, YOU NEED TO BE CAREFUL
WHEN A CARBON IMPACT PERSPECTIVE
ARE YOU CHARGING FROM THE
GENERATING COAL FACILITY DOWN
THE ROAD AND IF IT IS, THEN THAT
COULD BE AN ISSUE.
BUT IF IT'S, YOU KNOW, WITH ROW
KNEW ABLRENEWABLE INTEGRATION AND SOLAR
AT THE FEDERAL FACILITY THEN
THINGS LOOK A LITTLE BIT BETTER
FROM A CARBON IMPACT
PERSPECTIVE.
>> LET ME ADD TO THAT.
SO, IF ASSUMING YOU ARE CHARGING
FROM THE GRID, IF YOU ARE
CHARGING FROM NO CARBON AND YOU
KNOW, THAT'S IT.
I THINK IF YOU ARE CHARGE
INTERESTING THE GRID, YOU NEED
TCHARGING FROMTHE GRID WHERE DID THE ENERG Y
COME FROM AND WHAT'S THE CARBON
CONTENT TO THE ENERGY?
THERE ARE DATA SOURCES OUT
THERE.
THE ONE I'M FAMILIAR WITH IS
NON-PROFIT CALLED WATTTIMA AND
THEY PUBLISH DATA ON CARBON
CONTENT ON THE GRID FOR LOCAL,
YOUR LOCAL GRID AND I THINK I'VE
GOT MOST OF THE NATION COVERED
BY NOW AND SO YOU CAN LOOK AT
YOU KNOW, IT'S LIKE NICK SAID,
IF YOU ARE IN A CARBON-INTENSIVE
LOCATION, HOW MUCH CARBON THAT
REPRESENTS.
AND THEY PUBLISH DATA ON AN
HOURLY BASIS SO, YOU CAN LOOK AT
WHEN YOU ARE CHARGING YOUR
BATTERY, HOW MUCH CARBON THAT
REPRESENTS, AND VERSUS WHEN YOU
WOULD HAVE CHARGED OR WHEN YOU
WOULD HAVE USED THE ENERGY
ALTERNATIVE WAY AND HOW MUCH
CARBON WAS IN THAT AND COMPARE
THE TWO.
AND THAT IS KIND OF HOW
TYPICALLY HOW WE DO IT WHEN
WE'RE LOOKING AT TRYING TO
ACTUALLY CALCULATE CARBON.
>> OK.
THANK YOU.
WE HAVE A QUESTION AND I THINK
THIS CAME UP IN THE DISCUSSION,
ALEX, BUT REFRIGERANTS ARE USED
IN THE TESLA SYSTEM?
>> THIS WAS 134A.
I TOTALLY AM NOT SURE IF THEY'RE
USING IT CURRENTLY.
THIS IS KEY SIGNED IN 2016 BUT
YEAH IT WAS R134A.
>> OK.
>> AND IF IT'S A LARGE VOLUME?
>> LET ME SEE.
I'M NOT SURE.
I CAN FIND IT.
>> OK, WE CAN CHECK.
>> I'M NOT SURE.
>> I DON'T THINK IT'S THAT HUGE.
I TOOK A TOUR, I WAS IN TESLA'S
HEADQUARTERS A COUPLE YEARS AGO
AND THEY WERE SHOWING ME THIS
SYSTEM AND YOU KNOW, I THINK
LIKE THEIR CARS, THEY DON'T HAVE
HUGE RADIATORS AND STUFF LIKE
THAT AND SYSTEMS.
THE LIQUID COOLING SYSTEM WAS
LIKE BIG PIPES AND LOTS OF THEM
AND THEIR FAMILY SYSTEM SO I
HAVE TO THINK IT'S NOT A HUGE
AMOUNT.
>> IT REALLY CAN'T BE FROM
HAVING LOOKED AT IT I DON'T KNOW
THE NUMBER BUT IT'S NOT THAT
LARGE OF A SYSTEM AND THIS
PARTICULAR ONE, WE NO INSTALLED IS
A RE FRIDGE RANT AND IT HAS A
COOLANT, LIQUID COOLED.
IT RUNS THROUGH THE BATTERY TO
KEEP IT COOL.
WE HAVE QUESTIONS ABOUT
END-OF-LIFE ISSUES AND WE TALKED
ABOUT RECYCLING AND CARBON
FOOTPRINT AND I KNOW DAVID IF
YOU WANT TO TACKLE SOME OF THAT
OR ANYONE ELSE.
>> SAY THAT AGAIN?
>> THE LIFE CYCLE ANALYSIS OF
BATTERIES SORT OF WHAT IS THEIR
CARBON FOOTPRINT AND HOW DO YOU
DEAL WITH END-OF-LIFE CONCERNS
AND THAT TYPE OF ISSUES.
>> I'M NOT HUGELY VERSED ON
THAT.
THAT QUESTION HAS COME UP BEFORE
ON THE CARBON FOOTPRINT OF THE
ACTUAL BATTERY.
I DON'T KNOW OFF THE TOP OF MY
HEAD.
>> I CAN JUMP IN AT A HIGH LEVEL
TO SAY THAT YOU KNOW, AT THE
RISK OF SOUNDING MONOTONOUS IT'S
LIKE SOLAR WAS 20 YEARS AGO AND
WE HAVE THIS SAME STRUGGLE AND
ARGUMENT SAYING HOW GREEN IS
THIS SOLAR PROBLEM AND ALL OF
THE THOSE MODELS DEVELOPED AND
NOW I THINK THEY'RE BEING
APPLIED SO BATTERIES AND IF FOR
FOR EXAMPLE THE BATTERY IS GOING
TO BE DRIVEN A CERTAIN WAY AND
IT DEPENDS ON YOUR ELECTRIC
VEHICLE AS A METAPHOR RIGHT SO
IF YOU ARE DRIVING HARD AND FAST
IT WILL LAST FIVE YEARS IF IT'S
FREQUENT SEE REGULATION AND IF
YOU DO ENERGY ARBITRAGE IT MIGHT
LAST 10 PLUS YEARS WHICH ANSWERS
ONE OF THE OTHER QUESTIONS AND
THEN YOU BAKE THAT IN AND IF YOU
CAN PUT THAT IN YOUR PROFORMA
AND THEN START TAPPING INTO AS
DAVID SAID, THE CARSON CITY, THE
UPSTATE NEW YORK, THE LITHIUM
BATTERY RECYCLING FACILITIES
THAT HAVE BEEN AVAILABLE IN
GERMANY FOR MANY YEARS NOW AND
WHAT I ALWAYS LIKE TO SAY ABOUT
RECYCLING IS THAT WHAT IS IT 95%
OF THE LEAD ACID BATTERY CAN BE
RECYCLED TODAY, IT MIGHT BE MORE
THAN THAT TODAY.
BECAUSE IT TOOK US 100 YEARS TO
DEVELOP A REALLY STREAMLINE
PROCESS AND NOW WE'RE STARTING
TO DO A VERY SIMILAR THING WITH
LITHIUM BATTERIES.
SO, HOPEFULLY --
>> ACTUALLY, THERE WAS ACTUALLY
A PRESENTATION ON RECYCLING
BATTERIES EARLIER AND IN THIS
THERMAL ENVIRONMENTAL SYMPOSIUM
THAT MAY BE ON-LINE IT'S
RECYCLABLE AND WE'RE NOT THERE
YET WITH LITHIUM EYE ON BUT
HOPEFULLY IT WILL EVOLVE TO THAT
POINT.
THEY'RE STILL IN USE SO MAYBE IN
FIVE OR 10 YEARS AS THESE CARS
USE REACHING END-OF-LIFE THEN
YOU WILL START SEEING MORE OF A
DEMIND FOR RECYCLING BUT I THINK
THE LIVES ARE PRETTY LONG AND
WE'RE NOT AND IT'S A NEW PRODUCT
AND DID PEOPLE ARE STARTING TO
TAKE LIKE NISSAN LEAF BATTERIES
OUT OF THE CARS EXCUSE THE AND USE THEM IN
BUILDINGS.
SAY I BOUGHT LIKE A EXPENSIVE
NEW TESLA AND I'VE BEEN DRIVING
IT FOR FIVE YEARS OR 10 YEARS I
DON'T KNOW, I DON'T KNOW WHAT
THE DEROGATION RATE IS BUT SAY I
DRIVE IT FAST AND HARD AND IT
DEGRADES FASTER AND NOW INSTEAD
OF GETTING 400 MILES ON
300 MILES AND CHARGE AND IF YOU
GIVE ME 75% OF THE CHARGE, FOR A
BUILDING, I'LL TAKE THAT,
ESPECIALLY IF I HAVE SPACE
OUTSIDE THE BUILDING JUST TO
DROP IT IN A YARD SOMEWHERE,
RIGHT.
THAT'S A GREAT DEAL.
AND SO YOU KNOW, I AM VERY
CURIOUS TO SEE IF THERE'S THIS
LIKE SECOND LIFE MARKET FOR CAR
BATTERIES IN BUILDINGS.
>> RIGHT.
THERE'S GOING TO BE A LOT OF
EVOLUTION AND WE'RE ONLY AT
BEGINNING.
>> WE'RE AT BEGINNING, YEAH.
>> COUPLE QUESTIONS FOR ALEX IN
TERMS OF THE SAN DIEGO PROJECT
ABOUT THE SIZE OF THE BATTERY
AND THE LIFESPAN OF THE BATTERY
AND SPACE IT TAKES UP AND THE
PRACTICAL QUESTIONS.
>> OK, YEAH.
SO SIZE OF THE BATTERY,
750-KILOWATT, 1425-KILOWATT HOUR
IF THEY MEAN PHYSICIA PHYSICAL SIZE IT
WAS A TRIANGLE.
SHORT SIDE 33 FEET AND LONG SIDE
48 FEET.
AND WE'VE MANAGED TO FIT IN THE
SPACE THERE SO THAT THESE SLIDES
ARE GOING TO BE AVAILABLE.
ONE OF MY SLIDES HAS THE
DIMENSION IT TOOK UP A 48 BY 33
SPOT AND BATTERIES ARE GETTING
SMALLER BUT BY MUCH SO THEY DO
TAKE UP A SIGNIFICANT AMOUNT OF
SPACE TO GET A LARGE BATTERY AND
AS FAR AS LIFE THAT IS STILL AND
THEY'RE USING IT DEPENDS ON AND
HOW YOU DRIVE A CAR AND ELECTRIC
CAR AND IN THIS CASE THE BATTERY
IS SO WE HAVE IT BUILT INTO THE
COST TO DO CELL REPLACEMENT IN
YEAR 11 TO BRING THE CAPACITY
BACK UP TO WHERE IT WAS SINCE WE
HAVE GUARANTEED SAVINGS.
WE DON'T YET HAVE THE FULL DATA
ON THIS USAGE CASE OF HOW LONG
IT REALLY IS GOING TO NEED.
IT'S SOMETHING I'M REALLY
INTERESTED IN.
WHEN YOU GET TO YOUR DATA WE'LL
LOOK AT IT EVERY YEAR.
WE HAVEN'T SEEN ANY SIGNIFICANT
REDUCTION IN PERFORMANCE YET AT
YEAR FOUR.
WHEN WE GET TO YEAR 10, IT'S
SOMETHING WEEK STILL LEARNING ON
THESE AND RIGHT NOW WE DID PLAY
IT CONSERVATIVE BUILDING THE
COST OF CELL MAINTENANCE AND WAS
THERE ANOTHER COST?
SO THIS BATTERY IS 750KW BATTERY
WAS ROUGHLY COUNTING THE
DEVELOPMENT COST INSTALLED FOR
AROUND $2 MILLION.
>> OK.
GREAT.
AND ANOTHER QUESTION WAS ABOUT
DESCRIBING THE RETURN ON
INVESTMENTS OF BAT ROW STORAGE
SYSTEM VERSUS A NATIONAL GAS
GENERATOR.
>> IT DEPENDS WHERE YOU ARE IN
THE COUNTRY.
THE THE DEMAND CHARGE IN
SOUTHERN CALIFORNIA, NOW THAT
NATURAL GAS IS GOING UP IN COST
THE BATTERY IS LOOKING PRETTY
GOOD.
PRETTY
GOOD.
THE BATTERY IS NOT MAKING
ENERGY.
NATURAL GAS GENERATOR IS MAKING
ENERGY.
SO YOU COULD USE A NATURAL GAS
GENERATOR TO REDUCE DEMAND AND
THAT'S NOT A VERY GREEN WAY TO
REDUCE DEMAND THOUGH AND
HOPEFULLY WE'RE ALL MOVING IN
THE DIRECTION OF DECARBONIZATION
AND IT'S NOT SOMETHING WE'RE
PROPOSING ANYMORE AND THE
BATTERY IS MUCH BETTER.
AS FAR AS THE PAY BACK ONE
VERSUS THE OTHER, IT REALLY
VARIES AROUND THE COUNTRY.
>> I'LL ADD QUICKLY TO THAT.
RECENTLY THEY ARE EVALUATING
BRIDGE TECHNOLOGIES SO TODAY, IN
POLLUTANT CRITERIA REGIONS LIKE
THE LAIZATION BASIN AS AN
EXAMPLE THEY WOULD LIKE TO GO TO
MOBILE BATTERIES AND REPLACE THE
DIESEL FLEET WHICH ARE TIER 2
AND TIER 3 OR TIER 4 AND SO THE
BATTERY COST CAP X IS
COMPETITIVE USING THIS VERY
LARGE FLEET AND MECHANISM OF
DIESEL AGAIN SETS I AND I REAL
IT APPLIES AND THE POINT I WANT
TO MAKE THAT I THINK WITH RECENT
STUDIES THAT WE'VE DONE IS THAT
ALTHOUGH THE CAP X MIGHT BE
HIGHER WITH BATTERY ENERGY
STORAGE THE ON X IS LOWER SO
WHEN YOU LOOK AT IT HOLISTICALLY
OVER 10 YEARS AND DEPENDING ON
HOW YOU DRIVE IT AGAIN BATTERIES
ARE STARTING TO APPROACH SOME
COST EFFECTIVENESS THERE.
>> AND WE ACTUALLY DID RECENTLY
WE'RE WORKING WITH A SCHOOL
DISTRICT IN CALIFORNIA LOOKING
AT THEY HAVE A LOT OF -- THEY'RE
IN THE HILLS AND THEY HAVE POWER
OUTAGES FROM STORM FROM STORMS AND THEY'RE
GETTING INCREASED ABOUT THESE
PUBLIC SAFETY POWER SHUTDOWNS
THAT ARE HAPPENING IN CALIFORNIA
WHERE THE UTILITY CAN TURN POWER
OFF FOR DAYS ON END.
THE SCHOOLS GET FUNDED BY
SOMETHING CALLED AVERAGE DAILY
ATTENDANCE WHICH MEANS IF
STUDENTS AREN'T IN SCHOOL THEY
LOSE MONEY AND WE LOOKED AT
GENERATORS VERSUS BATTERIES AND
ACTUALLY OBVIOUSLY THE BATTERIES
COST MORE UP FRONT AND THE PAY
BACK S WITH IN THE FIVE YEAR
RANGE SOMETHING LIKE THAT AND IT
WAS SHORTER THAN I EXPECTED AND
AND A LOT OF IT WAS EXACTLY WHAT
WE'RE TALKING ABOUT THIS CAP X
VERSUS ON X SO YOU KNOW, WHEN
YOU PUT THAT PV BATTERY SYSTEM
IN THERE'S NO MAINTENANCE AND 9
GENERATORS YOU HAVE TO EXERCISE
REGULARLY AND YOU HAVE TO
MAINTAIN THEM AND YOU HAVE TO
CHANGE THE OIL AND IT'S LIKE A
CAR, RIGHT AND SO, OVER TIME I.
THAT EXPENSE STARTS ADDING UP.
>> GREAT.
THANK YOU, ALL.
I THINK IT'S ANNIE INVOLVING
ISSUE AND EXCITING TIME AND
THINGS ARE REALLY OPENING UP AND
OPPORTUNITIES.
THANK YOU ALL VERY MUCH AND
THANK YOU FOR OUR SPEAKERS AND
THANK YOU TO OUR VIEWERS AND
THIS IS AN ISSUE I THINK WE'LL
ALL BE FOLLOWING FOR A WHILE.
>> THANK YOU, ALL.
THERE'S DEFINITELY A LOT OF
INTEREST THERE AND BATTERIES AND
I THINK THAT IS WHAT EVERYONE IS
LOOKING TO FOR THE NEAR FUTURE.
I REALLY APPRECIATE YOUR TIME
AND THE WEALTH OF KNOWLEDGE THAT
YOU SHARED WITH ALL OF US AND
THANK YOU TO ALL THE VIEWERS
THAT YOU WILL BE RECEIVING A
POST SYMPOSIUM SURVEY IN THE
NEAR FUTURE, PLEASE, RESPOND TO
THAT SO WE CAN MAKE SURE THAT WE
CONTINUE TO MAKE THIS IMPOSE YUM
AS USEFUL AS POSSIBLE FOR THE
FEDERAL GOVERNMENT.
THANK YOU, EVERYONE.
AND HAVE A GREAT DAY.
>> THANK YOU, BYE-BYE.